Meat workers approve new agreement at third attempt

In April 2001, workers in Denmark's meat-processing factories approved a new collective agreement in a third ballot, following the rejection of two earlier proposals. The NNF trade union and the industry's employers had expressed their surprise at the earlier rejection, given that the second proposal contained major improvements on the initial draft. The final agreement provides for a total pay increase of 9.5% over a two-year period.

Following swift and trouble-free settlements in the agri-industry, horticulture and forestry sectors (DK0101112F), the 2001 collective bargaining round in the wider agricultural sector, which includes the large-scale food processing sector, was concluded on 23 April with the approval by workers in meat-processing factories of a compromise deal concluded between the Food and Allied Workers' Union (Nærings- og Nyddelsesmiddelarbejder Forbundet, NNF) and the employers' organisation for the meat industry (Slagteriernes Arbejdsgiverforening, SA). On the same day, a new agreement was concluded for 800 laboratory workers and office workers in the dairy sector between the Union of Commercial and Clerical Employees (Handels- og Kontorfunktionærernes Forbund/Industri, HK/industri) and the Dairy Employers' Association (Mejeribrugets Arbejdsgiverorganisation), after a short bargaining period and without major problems.

There had been major problems in the meat industry negotiations, which began in early February 2001. Workers twice rejected compromises reached between NNF and the employers. The first compromise was over a four-year deal providing for increases in wages and pension contributions which were slightly higher than achieved in other sectors. A ballot of union members took place and the compromise was rejected by about 82% of those voting The negotiations continued within the framework of the Public Conciliation Service (Forligsinstitutionen) and NNF gave notice of industrial action.

Shock over second rejection

The second compromise proposal contained significant improvements. First, it reverted to the traditional two-year duration of agreements in sectors covered by the "normal wage" system, whereby sectoral agreements set actual pay and conditions, with no room for improvement by local bargaining - the agriculture sector employers' organisations affiliated to the Confederation of Employers' Associations in Agriculture (Sammenslutningen af Landbrugets Arbejdsgiverorganisationer, SALA) operate this system. The second proposal also contained more favourable provisions concerning new technology, and a total wage increase worth 50% more than that in the first compromise. However, the meat factory workers again rejected the deal in a ballot.

The second rejection brought confusion on the part of the NNF negotiators and anger on the part of the employers. Both sides believed that they had negotiated terms which were better than other agreements in the agriculture area. In spite of the fact that the parties could at this stage have chosen to take industrial action, they resumed negotiations for a third time. After a total of more than 375 hours of negotiations, a new compromise was reached which contained improvements on nearly all points.

Best result in union's history

There was no doubt among the NNF negotiators that the third compromise was the best deal in the history of the union, but they had fears about the response of the members. However, at the third time of asking, about 61% of the 16,000 meat factory workers voted in favour of the agreement, with a high turnout of around 82%. The settlement means significant improvements in the pay and working conditions of the workers in this sector. The agreement covers a two-year period and provides for a total increase in wages of 9.5%. Occupational pension contributions will increase to 8.7% of pay. Moreover, the agreements brings more favourable arrangements concerning holidays, wages during sickness and severance pay, and contains a new agreement on job security in connection with company closures and a more extensive new technology agreement which is better adapted to planned structural adjustments.

Commentary

A majority of 61% combined with a high turnout among union members was sufficient to secure the adoption of the meat-processing compromise - but it was not a comfortable majority. Until the last minute, there was concern within NNF as to the results of the vote at meat factories in Jutland and Fuen (in Odense, 76% voted against), but a majority finally shifted to a "yes" vote. This was surprising, considering that the net result was significantly better than had been obtained in other sectors - although actual wages could increase by just over 4% a year under the terms of agreements in other sectors, a 9.5% rise over two years is still significantly higher. Furthermore, the meat-processing industry is now one of the few sectors which still has an agreement running for two years (DK0002167F).

The fact that the meat workers held out for an improved deal was linked to an apparent wish by the employers to avoid a dispute at nearly any cost. This sector - one the most turbulent in the Danish labour market (DK0009198F) - is currently facing a number of structural adjustments, in connection with, for instance, the construction of huge new meat factories and the introduction of new technology. It was as compensation for these changes and for higher flexibility that the employers were eventually willing to accept higher wage increases than those agreed upon in the first compromise. It should also be noted that all meat-cutting operations are performed on a piece-rate basis: the employers can now rest assured that there will be a high work speed.

Seen in a broader perspective, the two-year agreement period means that new negotiations will take place in meat-processing in 2003, while negotiations in the trend-setting bargaining area covered by the Danish Employers' Confederation (Dansk Arbejdsgiverforening, DA) and the Danish Confederation of Trade Unions (Landsorganisationen i Danmark, LO) will not take place until 2004. This means a further bargaining round in the meat industry before the other sectors next renegotiate their four-year agreements. This may mean that the meat industry will be the sector setting the agenda - especially if the union achieves a good result. (Carsten Jørgensen, FAOS)