Strike threat results in pay rise for bus drivers

The Estonian Transport and Road Workers’ Trade Union and a public transportation company GoBus reached a wage agreement the day before a planned strike of bus drivers on 30 March 2006. The negotiations resulted in an increase of up to 30% in salaries for the bus drivers and the harmonisation of pay levels in different regions, with effect from August 2006. Both parties agreed to cooperate in order to achieve an increase in state subsidies for public transport.

Background

Since the beginning of 2006, the Estonian Transport and Road Workers’ Trade Union (Eesti Transpordi- ja Teetöötajate Ametiühing, ETTA) (EE0408102F) had been trying to reach a wage agreement with GoBus. The public transportation company GoBus was established in 2005 as a result of the merger of AS Tarbus and seven other bus companies. With approximately 1,100 employees and 500 buses operating in eight counties, it is the largest bus company in Estonia. Half of the employees are members of ETTA.

GoBus is obliged to comply with a collective agreement that was concluded between AS Tarbus and ETTA before the establishment of GoBus. According to the agreement, GoBus should pay equal salary scales to its employees in all of the counties. Nevertheless, large differences in payment existed between the regions. Chief Executive of GoBus, Aivo Pärn, explained that the salary differences were caused by different amounts of subsidies received in different counties.

ETTA demanded that GoBus should either follow the existing agreement or conclude a new one that would be financially feasible for the company.

Planned strike action

As agreement was not achieved after several months, ETTA planned a one-hour strike of bus drivers in the second largest Estonian town, Tartu, in the southeast, and in Pärnu in the southwest. However, the strike was called off on 29 March, the day before the planned action, since the parties had reached agreement.

The Estonian Nurses Union (Eesti Õdede Liit, EÕL) and the Federation of Estonian Healthcare Professionals Union (Eesti Tervishoiutöötajate Ametiühingute Liit, ETTAL) expressed their support for the demands of ETTA. ETTAL and ETTA are members of a ‘strike pact’ together with six other strong trade unions whereby, if necessary, they can organise strikes of 2,000 employees among the most strategic economic sectors in Estonia.

Wage agreement

Before the agreement, monthly salaries of GoBus drivers varied from EEK 5,500 (€352) on the Estonian island Hiiumaa up to EEK 8,000 (€511) in Tartu. ETTA demanded a pay increase of 10% in Tartu and of 16% in other regions.

According to the daily newspaper Eesti Päevaleht, all of the GoBus drivers will be paid equally EEK 49 (€3.10) per hour from August 2006, which corresponds to a monthly salary of EEK 7,840 (€501). The average monthly salary in 2005 was EEK 8,073 (€516), according to Statistics Estonia (Statistikaamet).

Public transport subsidies

GoBus has claimed that, without an increase in subsidies for public transport or in ticket fares, the company will face budgetary problems due to the increase in wage costs. Chair of ETTA’s supervisory board, Peep Peterson, also emphasised the need for an increase in subsidies and for a coherent development plan for public transport in order to guarantee a high level of service.

According to Mr Peterson, there is a shortage of bus drivers in Tartu and working overtime is common among bus drivers throughout Estonia. Some drivers work 230–240 hours per month instead of the agreed 160 hours. In his opinion, the shortage of bus drivers is because of higher salaries in similar occupations like that of truck drivers, which are attracting bus drivers who then leave their jobs in public transport.

Mr Peterson believes that it is necessary for the trade union and the company to continue to cooperate in improving public transport funding. Moreover, Deputy Mayor of Tartu, Georg Aher, has promised to contribute to the joint statement to the Ministry of Economic Affairs and Communications (Majandus- ja Kommunikatsiooniministeerium) about increasing state subsidies for public transport.

Commentary

According to the Wages Act, an employee has the right to demand equal payment for the same or equal work. Nevertheless, it is common practice for large companies with branches all over Estonia to pay different salaries in different counties. The daily newspaper Postimees wrote at the beginning of July that the salaries of postal workers in Estonian Post, for example, differ by as much as 45% depending on the county.

Analysts suggest that a salary difference of up to 15% could be caused by regional variations in living expenses. The average monthly pay in counties varies from EEK 6,057 (€387) in the most northeastern county, Ida-Virumaa, to EEK 9,307 (€595) in the northern county Harjumaa, which includes the capital, Tallinn.

Marre Karu and Liis Roosaar, Praxis Centre for Policy Studies