Jørgensen, Carsten

Like most other EU 15 countries, but in contrast to the neighbouring country Sweden, Denmark introduced a set of transitional rules as of 1 May 2004 concerning the immigration from the new Eastern member countries of EU. A majority in the Danish Parliament and the social partners supported the rules, which was aimed at protecting the balance at the Danish labour market as well as protecting the social welfare system against 'social tourism' from the East. As Denmark has no national minimum wage defined by law or by collective bargaining, the initiative also aimed at supporting the existing collective agreement system, in broad terms called the Danish Model, where wages are agreed at sectoral level and company level. The worst scenario was that otherwise the country would experience an invasion by Eastern European workers, shopping around, working at wages well below the collectively agreed levels and sooner or later to be counted among the unemployed (DK0312103F [1]). [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/transitional-scheme-agreed-for-workers-from-central-and-eastern-europe

In recent years, labour market developments have altered the demand for labour. Increasingly, employers are looking for adaptable workers, with more 'transversal' and 'relational' competences. The nature of skills required to be considered efficient in a job has thus evolved. In this situation, there is a growing risk of exclusion among unemployed workers whose profiles do not match the job characteristics needed, while the low-skilled or unskilled workforce is more at risk of unemployment.

On 28 February 2005, a new collective agreement for some 71,000 nurses, physiotherapists, midwives, catering officers and dental hygienists was signed by the Health Cartel (Sundhedskartellet) of trade unions and the employers, represented by Local Government Denmark (Kommunernes Landsforening, KL), Danish Regions (Amtrådsforeningen, ARF) and the Copenhagen Hospital Corporation, (Hovedstadens Sygehusfællesskab, H:S). The members of the unions affiliated to the Health Cartel were the last group in the public sector to be covered by a new three-year agreement in the 2005 bargaining round (DK0503101N [1] and DK0502103F [2]). [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/new-agreement-concluded-for-employees-in-the-state-sector [2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/new-agreement-concluded-in-local-public-sector

In early March 2005, a new three-year collective agreement for 50,000 employees in banks and mortgage credit institutions was signed by the Danish Employers' Association for the Financial Sector (Finanssektorens Arbejdsgiverforening, FA) and the Financial Services' Union (Finansforbundet, FF). The deal provides for a wage increase of 9.61% over the next three years, and for more flexible working hours.

The EU’s European employment strategy [1] was revised in 2003 (EU0308205F [2]), following demands for a more results-oriented strategy contributing successfully to the targets for more and better jobs and an inclusive labour market set at the Lisbon European Council in 2000 (EU0004241F [3]). To support the three objectives of full employment, quality and productivity at work and cohesion and an inclusive labour market, the current employment guidelines [4] identify 10 priorities ('commandments'), including one on 'promoting adaptability of workers and firms to change'. This identifies work organisation (alongside skills, lifelong learning and career development, gender equality, health and safety at work, flexibility and security, inclusion and access to the labour market, work-life balance, social dialogue and worker involvement, diversity and non-discrimination, and overall work performance) as an element in improved quality at work, which should be pursued through a concerted effort between all actors and particularly through social dialogue. [1] http://europa.eu.int/comm/employment_social/employment_strategy/index_en.htm [2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/2003-employment-guidelines-and-recommendations-adopted [3] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined-social-policies/lisbon-council-agrees-employment-targets [4] http://europa.eu.int/comm/employment_social/employment_strategy/guidelines_en.htm

With the dairy sector as the last hurdle all agreements in the so-called green sector were landed on the last day of March 2005. That was at the very last moment as the existing agreement expired on 1 April.

By end of February 2005, the negotiating parties in the state sector, the The State Employers' Authority, (Personalestyrelsen) an agency within the Ministry of Finance, and the employees’ organisations’ bargaining unit, the Danish Central Federation of State Employees (Centralorganisationernes Fællesudvalg, CFU) concluded a new three-year agreement. The 160,000 employees obtained an agreement which is very similar to the agreement concluded in the municipal/county sector a few days earlier.

On 19 February 2005, a new three-year collective agreement for approximately 560,000 employees in municipalities and counties was signed by the joint trade union negotiating body, the Association of Local Government Employees’ Organisations (Kommunale Tjenestemænd og Overenskomstansatte, KTO), and the two employers' organisations, the National Association of Local Authorities in Denmark (Kommunernes Landsforening, KL) and the Danish Confederation of County Councils (Amtsrådsforeningen, ARF). KTO's demand for a general wage increase was met and over the next three years pay will rise in step with the inflation. For their part, the employers are satisfied that the decentralised wage-setting system known as 'New wage' (Ny Løn) (DK0409104F [1]), will be continued. The municipal/county bargaining process took place in parallel with collective bargaining in the central state sector, but a result was obtained first in the municipal/county sector. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/new-wage-system-will-be-difficult-issue-in-regionalmunicipal-bargaining

In the middle of an intense general election campaign during January 2005, the Confederation of Danish Trade Unions (Landsorganisationen i Danmark, LO) took up one of the most debated themes: globalisation and its consequences for the Danish labour market. On 18 January 2005, Prime Minister Anders Fogh Rasmussen - who leads the current coalition government of the the Liberal Party (Venstre) and the Conservative Party (Det Konservative Folkeparti) - called a parliamentary election for 8 February.

In spite of overwhelming support for the 'Danish model' of industrial relations and general recognition of its historical role, many employers have fundamental doubts when it comes to the importance and role of the trade unions today and in the future. A substantial proportion see trade unions as reactionary, narrow-minded and out of step with their members. Furthermore, a little over half of employers believe that it would be a good thing for Danish society if the unions lost some of their influence. These are among the key findings of a major study on 'how business managers see the trade unions' conducted towards the end of 2004 by Rambøll Management for the newsletter A4 [1], which is published by the Danish Confederation of Trade Unions (Landsorganisationen i Danmark, LO). The results of the study were published in January 2005 (/Erhvervslivets syn på fagbevægelsen/, in /A4/, 17 January 2005). [1] http://www.ugebreveta4.dk/smcms/Ugebrevet/7422/7474/7500/7515/Index.htm?ID=7515