The 2006 Industrial relations in Europe (1.44Mb PDF) [1] report offers a timely overview of recent industrial relations developments within the EU. In addition to offering an informative review of European social dialogue [2] – some twenty years after the former Commission President Jacques Delors convened the Val Duchesse [3] talks between the Union of Industrial and Employer’s Confederations of Europe [4] (UNICE [5]), the European Centre of Enterprises with Public Participation and of Enterprises of General Economic Interest (CEEP [6]) and the European Trade Union Confederation (ETUC [7]) – the report highlights the changing role of trade unions within Europe.[1] http://ec.europa.eu/employment_social/social_dialogue/docs/ir_report2006_en.pdf[2] www.eurofound.europa.eu/ef/observatories/eurwork/industrial-relations-dictionary/social-dialogue[3] www.eurofound.europa.eu/ef/observatories/eurwork/industrial-relations-dictionary/val-duchesse[4] http://www.unice.org/Content/Default.asp?PageID=298[5] http://www.unice.org/Content/Default.asp?PageID=298[6] http://www.ceep.org/[7] http://www.etuc.org/
The ‘2006 Industrial relations in Europe’ report highlights that the decentralisation of collective bargaining, together with a decline in trade union density levels, is forcing trade unions to become more actively involved in the European workplace. The report suggests, however, that the growth of decentralisation does not mean an abandonment of sector and branch level collective negotiations.
The 2006 Industrial relations in Europe (1.44Mb PDF) report offers a timely overview of recent industrial relations developments within the EU. In addition to offering an informative review of European social dialogue – some twenty years after the former Commission President Jacques Delors convened the Val Duchesse talks between the Union of Industrial and Employer’s Confederations of Europe (UNICE), the European Centre of Enterprises with Public Participation and of Enterprises of General Economic Interest (CEEP) and the European Trade Union Confederation (ETUC) – the report highlights the changing role of trade unions within Europe.
In particular, the report shows how the decline in trade union density levels, together with a trend towards decentralisation, implies that trade unions are increasingly required to develop new employee representative strategies. This can usually involve, either directly or through their association with workplace bodies such as works councils, playing an active role in company restructuring and supporting the development of plant and company-level negotiations.
Trade union density rates
The Industrial relations in Europe 2006 report outlines how trade unions across Europe have had to contend with a major decline in density rates. The results in the table below indicate only two exceptions to this development, with both Malta and Luxembourg experiencing an increase in density levels between 1995 and 2004.
| 1995 % | 2004 % | |
|---|---|---|
| DK | 84 | 80 |
| SE | 83 | 77 |
| FI | 80 | 74 |
| MT | 54 | 55 |
| CY | 57 | 53 |
| BE | 53 | 49 |
| LU | 39 | 46 |
| SI | 63 | 44 |
| IE | 46 | 36 |
| IT | 38 | 34 |
| AT | 41 | 32 |
| SK | 57 | 31 |
| UK | 33 | 29 |
| NL | 26 | 25 |
| EU25 | 32 | 25 |
| CZ | 41 | 22 |
| DE | 29 | 20 |
| EL | 30 | 20 |
| HU | 63 | 17 |
| PL | 33 | 17 |
| PT | 25 | 17 |
| LV | 25 | 16 |
| ES | 18 | 16 |
| LT | 15 | 13 |
| EE | 21 | 12 |
| FR | 9 | 8 |
Note: Trade union density is calculated on the basis of the total figure of gainfully employed members (excluding unemployed people, students or retired people) divided by the population of total wage earners in the country.
Source: European Commission, Industrial relations report 2006, 2006, p.25
Quite clearly, the figures show that the transition to a free-market economy in the new EU Member States has had far-reaching consequences for organised labour. For instance, Hungarian trade unions have had to contend with a huge decline in membership, as have the Polish and the Czech trade unions (see Table). Compared with the mid 1990s, when Hungarian trade unions could claim to represent approximately 63% of the country’s workforce, today’s figure stands at a mere 17%. Although the decline in union density rates has been less severe in the former EU15, countries such as Austria, Germany, Greece, Ireland and Portugal have had to contend with a fall ranging from anywhere between 20% and 30%.
Growth in decentralisation
Alongside the decline in trade union density rates, a growing tendency towards decentralised collective bargaining is emerging. The report notes that this involves the growing importance of regulating employment either at plant or company level. However, such a move, according to the report, does not mean the total rejection of sector or branch collective bargaining. Moreover, the increasing importance of negotiations closer to the workplace is viewed as complementing rather than replacing traditional forms of centralised collective bargaining. The Commission’s report implies that a dismantling of industrial relations would in fact produce negative effects for the EU. It is suggested that ‘a high degree of coordinated collective bargaining… displays more favourable outcomes’ for economic performance.
In terms of what can be best referred to as the ‘complementary approach’, this decentralised trend can involve open clauses akin to those widely practised in Austria and Germany. Open clauses are designed to offer plant or company-level actors the opportunity to adjust or deviate from the conditions laid down in centrally negotiated agreements. According to the report, changes in collective bargaining are closely linked to the growing requirement to accommodate restructuring pressures, a development which is forcing trade unions to become more involved in workplace decision making.
Commentary
The Industrial relations in Europe 2006 report confirms the long-held belief that collective bargaining is going through a period of transition. It is shown, however, that the emerging growth of decentralisation does not necessarily represent the end of either branch or sector collective bargaining. Instead a picture emerges in which collective bargaining appears to constitute a complex jigsaw of options open to industrial relations actors, with trade unions increasingly willing to play a stronger role in the workplace.
The decline in membership throughout the EU is undermining the trade unions’ ability to oppose the employers’ growing interest in decentralised levels of collective bargaining. Although this transition is symbolic of workers’ current poor negotiation position, trade unions could use this development to advance the top issue on all of their agendas – namely, to increase trade union density levels. With trade unions increasingly being required to oversee changes in employment processes, this represents an opportunity for employee representatives to demonstrate the important role they can play in alleviating some of the problems associated with restructuring.
Michael Whittall, Technical University Munich
Eurofound recommends citing this publication in the following way.
Eurofound (2007), Trade unions more involved in European workplaces, article.
