Publications

Since the beginning of the 1990s, the German system of centralised sectoral
collective bargaining (Flächentarifvertrag), which guarantees all employees
in a certain sector more or less the same basic income and working
conditions, has been under increasing pressure. With growing
internationalisation of capital and markets and an increasing pressure of
international competition, more and more employers and economic experts have
been demanding a more decentralised and company-related collective bargaining
system. German unification in 1990 brought a further dynamism to the debate.
Originally, all the relevant social partners agreed to transfer the western
collective bargaining system to eastern Germany, but because of the
continuing immense economic problems. more and more eastern employers became
dissatisfied with that decision. For instance, in the eastern metal industry
the proportion of employers who are members of an employers' association
decreased from 60% in 1991 to 36% in 1994 - though still covering between 55%
and 65% of the employees ("Ostdeutsche Tariflandschaften", Ingrid Artus and
Rudi Schmidt, in Die Mitbestimmung No. 11, p. 34-36 (1996)).

At the end of February 1997, the social partners in Luxembourg's hospital
sector concluded a new collective agreement in a "cooperative" atmosphere.
The deal provides for pay increases and a reduction and reorganisation of
working hours for 5,000 employees.

On 5 March 1997, the Italian Prime Minister, Romano Prodi, informed the
political parties and social partners about the report drawn up by the
"Commission for macroeconomic compatibility of social expenditure", a
committee of experts established by the Government and chaired by Professor
Paolo Onofri. The proposals for reform deal with all the key elements of
public spending: healthcare, public assistance, and, of particular interest
for the industrial relations system, pensions and labour market policies.
This document drew critical reactions from the trade union confederations,
while the evaluation from the Confindustria employers' confederation was
fairly positive.

On 18 March 1997, eight trade unions and 12 employers' organisations in
industry concluded an agreement on cooperation and the regulation of pay. Its
aim is to promote growth, profitability and competitiveness in industry. As
such, claim the parties, it will provide the necessary prerequisite for a
reduction of unemployment and form the basis for improvements in pay and good
working conditions.

Stockauto, a vehicle storage and distribution firm, has signed a collective
agreement on some of the most controversial issues in the current debate on
reform of the Spanish labour market: the creation of secure employment, the
definition of the objective reasons for dismissal and the search for
procedures to make working time more flexible

The Institute of Management's recent survey of their male and female members
(A question of balance? A survey of managers' changing professional and
personal values", K Charlesworth, Institute of Management, London, (1997))
reports 52% of men as saying that their style is participative (compared with
60% of women respondents) with the same proportion of men and women (30%)
claiming to have a consensual approach. Their employing organisations seem to
have taken less notice of the Institute: only 15% of respondents described
their company culture as participative.

On 18 March, the Government submitted a reform package to Parliament
addressing five civil service issues, among them the implementation of EC
Directive on working time (93/104/EC) in the civil service and more flexible
working time rules. Here we focus on the latter point. The new regulations
are expected to be voted on by Parliament in time to take effect on 1 June
1997.

On 3 March 1997 the UK's second largest general trade union, GMB, and the
German chemical workers' union IG Chemie-Papier-Keramik signed a unique
agreement on joint union membership. The agreement offers members of both
organisations, when working in each other's countries, the same support and
advice enjoyed by their own members.

At the beginning of 1997, the total privatisation of Telefónica, the largest
Spanish telecommunications firm, was completed. The trade unions in the
company, led by CCOO and UGT, have applied for a judicial review of this
measure, demanding its suspension until the new regulatory framework for the
sector is defined, and a public, universal and quality service is guaranteed
in the area of telecommunications. The Supreme Court has agreed to consider
the appeal but has not suspended the privatisation.

At the end of February 1997 the education and employment minister, James
Paice, was warning that "people ignore at their peril the value of investing
in learning", arguing that too many employers still do not realise the value
of investing in their employees. He went on to say that action should be
taken immediately to drive up skill levels and standards to keep up with
growing international competition. Employers were said to be a crucial part
of this process but, it is "not how much you invest in training, its how you
invest it". The Government thus backs the Investors in People (IIP) standard,
as it shows that spending money on people is an investment and not a cost.