New collective agreements for transport workers

Transport workers in Estonia have signed collective agreements for 2011. These restore the 10% cuts in wage levels and working time which the workers agreed last year, because of the financial crisis. The agreements cover about 1,000 workers, including tram, trolley and bus drivers, in Tallinn. However, there has been no real increase in wages, and the sectoral 2009 transport agreement, expected to run until December 2009, is still valid although it has not been renewed.

Impact of the crisis

The wages of tram and trolley drivers in Tallinn were cut by 10% in September 2009, to mirror the cut in the city’s transport order. The Tallinn Tram and Trolleybus Organisation (TTTK) initially signed an agreement to this effect with the Estonian Transport and Road Workers’ Trade Union (ETTA), lasting until the end of 2009. However, because of the difficult economic situation, the agreement was extended until the end of 2010.

In January 2010, the Tallinn Bus Company (TAK) announced a cut of 10% in pay for all leading workers and specialists, with effect from 1 February 2010, due to difficult economic circumstances. They then proposed a 10% cut in bus drivers’ pay until the end of the year, which ETTA accepted, and which took effect from 1 March.

Both TTTK and TAK said they preferred to cut employees’ pay and workload, rather than having to lay off employees. ETTA said that although it was not a favourable situation, it understood the circumstances and agreed with the cuts. In autumn 2010, city officials said they would restore Tallinn’s transport arrangements to how they were before the crisis.

New collective agreements

On 1 February 2011, ETTA and TTTK concluded a collective agreement, valid from 1 February 2011 until 31 December 2011. This restores the workload and wages of all tram and trolley drivers, and covers around 300 employees working at TTTK.

On 2 February 2011, ETTA and TAK concluded a collective agreement for 2011, coming into effect retrospectively from 1 January 2011, and valid until the end of the year. It covers around 700 TAK employees and restores the wages of bus drivers as they were before the cuts. This makes the drivers’ hourly wage rate higher than the minimum stipulated in the sectoral collective agreement between ETTA and the Union of Estonian Automobile Enterprises (EAL).

It was pointed out in both cases, that the collective agreements will ensure stability in employer and employee relations for the year, and should obviate any need for strikes or lock-outs.

Sectoral collective agreement not renewed

In 1992, EAL was the first employers’ group to promote collective negotiations at sectoral level. Today, EAL and ETTA have concluded collective agreements that regulate pay, work and rest periods, social guarantees and relations between the employer and the trade union. In addition, pay, work, and resting time regulations are extended to the whole transport sector. The last collective agreement between EAL and ETTA was concluded on 1 February 2008, valid until 31 December 2009. However this agreement has so far not been renewed. Until this happens, Estonian legislation means that the 2008 collective agreement will be valid and legally enforceable.

Commentary

The two new collective agreements mark the end of last year’s standstill for collective bargaining. Furthermore, a new collective agreement for rescue workers was also concluded in December 2010 (EE1102019I).

Liina Osila, Kirsti Nurmela, PRAXIS Centre for Policy Studies