Autumn’s union protests put pressure on government and employers

September 2010 was marked by major union demonstrations in Warsaw. Public sector unions protested on 22 September against government plans to freeze wages in 2011. Rail unions protested on 28 September against privatisation projects and lack of investment. And union confederations nationally decided to support the European Day of Action on 29 September, called by the European Trade Union Confederation. More protests are expected in the mining and retail sectors.

Economic and social context

Poland was the only country in the EU where gross domestic product (GDP) grew (by 1.7%) during the 2008–2009 global financial crisis. However, this has been overshadowed by budgetary problems facing the right-wing liberal government of the Civic Platform (PO). In order to keep the public debt at 55% of GDP, the government proposed several austerity measures in its budget for 2011:

• increasing value-added tax (VAT) from 22% to 23% for most goods and services (except on some food items) and leaving the way open for further increases in the next two years;

• freezing wages in the public sector;

• keeping the growth in public expenditure at a maximum of 1% above inflation.

Teachers’ trade unions negotiated a wage increase of 7% (starting from 1 September 2011) and signed an agreement with the Ministry of National Education (MEN) on 3 September 2010. However, tension arose when it was announced that the salaries of other workers in the public sector would not be increased.

Conflict also escalated in the mining and railway sectors. The largest state-controlled mining holding, Kompania Węglowa, announced its intention to freeze wages for the next five years, reduce employment from 62,300 to 45,400 in five years and close two unprofitable coal mines in 2011–2012. In the railway sector, a government decree enabling unprofitable railway companies to be declared bankrupt has sparked fears that one of two main national carriers, the Regional Railway Transport Company (Przewozy Regionalne), will be liquidated. The company made a loss of €25.6 million (PLN 102 million as at 10 October 2010) in 2009. Railway employees are also anxious about the privatisation of PKP Intercity and PKP Cargo, two companies belonging to Poland’s second largest national carrier, PKP Group (Grupa PKP).

The economic crisis and the deregulation of employment conditions has also exacerbated the problems of low wages and more intensive work in hypermarkets, with the reduction of permanent staff numbers in favour of workers on freelance contracts.

Public sector unions protest against austerity measures

On 10 September 2010, 13 trade union federations formed the Coordination Committee of Trade Unions in the Public Sector (ZKZZPSB). The unions represent a variety of groups, including police officers, firefighters, tax collectors, border guards, those working in state administration and prison employees. Most of the federations are affiliated to three nationally representative trade union confederations, the Independent Self-Governing Trade Union ‘Solidarity’ (NSZZ Solidarność), the All-Poland Alliance of Trade Unions (OPZZ) and the Forum of Trade Unions (FZZ).

Due to the failure of negotiations in the Tripartite Commission for Social and Economic Affairs (Komisja Trójstronna ds. Społeczno-Gospodarczych), the committee decided to organise a joint demonstration in Warsaw on 22 September 2010. Trade unions demanded:

• a 5.3% wage rise in the public sector in 2011;

• immediate negotiations over a wage increase for civil servants, state administration and state officials.

The protest also reflected the specific problems of several occupational groups in the sector. For instance, the National Section of Tax Office Employees of NSZZ Solidarność demands the reforms and simplification of tax rules, apolitical supervision of tax officers, and the establishment of a framework for career advancement.

Railway workers’ national demonstration

On 18 August 2010, the Protest and Strike Committee of Railway Employees’ Trade Unions was created by three national trade unions: the Federation of Trade Unions of the Employees of Polish State Railways (FZZP PKP) affiliated to FZZ, the National Section of Railway Employees of NSZZ Solidarność and the Confederation of Railway Trade Unions affiliated to OPZZ. The committee criticised the lack of negotiations between employers, government and unions over the restructuring and privatisation of Polish railways. It decided to stage a joint protest outside the Ministry of Infrastructure (Ministerstwo Infrastruktury) in Warsaw on 28 September 2010. Trade unions made 14 demands, including:

• cancelling the privatisation of the PKP companies, as the majority of shares would not go to the State Treasury and there is no guarantee that revenue from the privatisation would be invested in railway companies;

• changing the restructuring strategy of PKP Cargo and PKP Polish Rail Lines to stop the job cuts;

• writing off PKP Group debts and increasing state investment in railway infrastructure and rolling stock.

Negotiations and strike alert in mining sector

Negotiations were held by 13 trade unions with Kompania Węglowa, after it announced plans for job cuts. When talks failed, a strike ballot was held with 58.6% of the staff voting, and 92.5% agreeing on strike action. It was decided that the strike would take a gradual form.

The first phase of the strike was scheduled to start on 20 September. However, on 17 September an agreement was reached between trade unions and company executives, who withdrew their original restructuring plans. The new agreement guarantees jobs for all workers in Kompania Węglowa until 2015 except for those in administration, where jobs might go after consultations with trade unions. The parties also negotiated new pay rise indicators.

European Action Day and protests in retail sector

NSZZ Solidarność and OPZZ decided to join the European Action Day organised for 29 September in Brussels by the European Trade Union Confederation (ETUC). In addition to this, both confederations announced a joint protest in Warsaw on the same day. The most important demands include:

• increasing the minimum wage to 50% of the national average;

• increasing the tax threshold for the lowest income groups;

• protecting employment contracts;

• equal access to high-quality public services, including education and health care.

The unions also oppose the rise in VAT and excise duties, freezing wages in the public sector and inequalities in the labour market affecting young people, women and disabled persons.

In the retail sector, the National Section of Commerce of NSZZ Solidarność (Sekcja Krajowa Handlu NSZZ Solidarność) called on 8 September 2010 for immediate negotiations with employers associated in the Polish Organisation of Commerce and Distribution (POHiD). The section is protesting about increased work pressures and the replacement of permanent staff by contract workers. It also announced preparations for a demonstration in Warsaw. An additional reason for protests was the failure of pay negotiations in 53 Real hypermarkets belonging to the AG Metro Group. The group agreed to raise its monthly minimum wage from PLN 1,326 to PLN 1,370 (about €332 to €343) but refused the trade unions’ request for a 6% wage increase and seniority bonus.

Commentary

Although autumn protests are nothing new for Polish trade unions, this year’s protests share several notable features.

• Most of them are organised by coalitions of trade unions that belong to three national representative trade union confederations, which is exceptional given that Polish industrial relations are characterised by competitive pluralism.

• There is a direct link between the protests and the European Action Day organised by ETUC, which makes it possible to internationalise the protests and detach them from local political struggles.

• The protests are dominated by public sector trade unions and industrial trade unions in branches controlled by the state. This confirms the split between a strong core of the trade union movement in the public sector and the weakly organised periphery in the private sector.

The next weeks will show to what extent demonstrations can really influence government policy. However, trade union action has already made it clear that Poland should no longer be considered a country unaffected by the global recession.

Adam Mrozowicki, Institute of Public Affairs and University of Wroclaw