Jørgensen, Carsten
Complicated negotiations start in public sector
10 január 2005
Public sector collective bargaining started in earnest in December 2004, but
is not expected to culminate until the first months of 2005, when the current
three-year agreements signed in 2002 for municipal/county authority workers
(DK0205102F [1]) and central government workers (DK0204103F [2]) expire. The
negotiations are the first since several structural changes that took place
in late 2003. The Health Cartel (Sundhedskartellet) of trade unions- in which
the Danish Nurses’ Organisation (Dansk Sygeplejeråd, DSR) is the largest
union - withdrew from the joint negotiation body in the county/municipal
sector, the Association of Local Government Employees’ Organisations
(Kommunale Tjenestemænd og Overenskomstansatte, KTO) (DK0312101N [3]). At
the same time, KTO decided to conduct future negotiations in 'reverse order'
compared with earlier practice, so that a number of themes are first
negotiated between the individual trade unions and the employer side. It is
only afterwards that the general negotiations will start between KTO and the
four employers' organisations - the National Association of Local Government
Employees’ Organisations (Kommunernes Landsforening, KL), the Danish
Federation of County Councils (Amtsrådsforeningen, ARF) and the
municipalities of Copenhagen and Frederiksberg. It was especially the
withdrawal of the nurses' union that has given rise to concern. The fact that
DSR has chosen to go its own way involves a risk of a breakdown, with the
Health Cartel seeking a pay rise which is above that for other
county/municipal staff, and also a more or less radical break with the public
sector's 'New wage' (Ny Løn) decentralised pay scheme (DK0409104F [4]). The
new model of starting the negotiations at individual union level was
developed to take into account the wishes of the Health Cartel and DSR.
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/municipalcounty-sector-deal-narrowly-approved
[2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/three-year-agreement-concluded-in-central-government-sector
[3] www.eurofound.europa.eu/ef/observatories/eurwork/articles/health-unions-to-leave-municipal-bargaining-unit
[4] www.eurofound.europa.eu/ef/observatories/eurwork/articles/new-wage-system-will-be-difficult-issue-in-regionalmunicipal-bargaining
Pilot projects on more flexible working time assessed
06 december 2004
In recent years, a number of municipalities have initiated experiments with
flexible forms of working time organisation. An experiment with employees
alternating three days of work and three days off - the so-called '3-3
model'- was completed in November 2004 in the municipality of Præstø, to
the south of Copenhagen. The project was reportedly not a success. Only one
third of the employees involved now wish to continue to work on the basis of
the new model, and when the pilot project was launched about a year
previously, about one third of the employees chose to change to another job
because they did not want to work under the new working time schedule. The
model of alternating periods of three days work and three days off was copied
from a scheme in Sweden, where the results are good, with lower sickness
absence and greater job satisfaction. However, the outcomes have not been the
same in Denmark.
Social partners welcome Danish political agreement on EU Constitutional Treaty
01 december 2004
On 2 November 2004, the coalition government of the Liberal Party (Venstre)
and the Conservative Party (Det Konservative Folkeparti) and three opposition
parties - the Social Democratic Party (Socialdemokratiet), the Social Liberal
Party (Radikale Venstre) and the Socialist People’s Party (Socialistisk
Folkeparti) - agreed in parliament (the Folketing) a 'national compromise'
concerning the Danish referendum on the EU Constitutional Treaty (EU0406204F
[1]). This is a repetition of a first national compromise reached on a
similar theme in 1993, when the last party to accept the deal was - as also
this occasion - the Socialist People’s Party. Under the new agreement,
referenda on Denmark's current 'opt-outs' from various aspects of EU
cooperation (eg including non-participation in the third stage of Economic
and Monetary Union - DK0004175F [2]) have been postponed for several years.
The five parties agreed that no vote can take place concerning one or more of
the Danish opt-outs at the same time as the referendum on acceptance of the
EU Constitutional Treaty. According to the agreement, all parties have a
right of veto and the accord may be changed or abolished only unanimously.
The parties have agreed that the agreement shall run for the same period as
the new Treaty.
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/agreement-reached-on-constitutional-treaty
[2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined-industrial-relations/unions-and-employers-organisations-both-recommend-a-danish-yes-to-emu
Nordic trade union formed at Nordea
09 november 2004
In October 2004, the European Company Statute came into force (EU0206202F
[1]), allowing for the creation of a new type of company incorporated at
European level. These European Companies may be set up in various ways,
including the transformation of an existing EU-based company with
subsidiaries in another Member State. Nordea, the leading financial services
group in the Nordic and Baltic Sea region - currently listed on the
Stockholm, Helsinki and Copenhagen stock exchanges - has announced its
intention to be one of the first companies to take on the new European
Company form, though no date has been fixed yet.
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/european-company-statute-in-focus
Employees 'support free choice' in collective agreements
27 október 2004
Nearly three out four Danish employees believe that in future there should be
more room in collective agreements for individual prioritisation between more
time off, higher pension contributions or higher wages. This is a key finding
of a recent study carried out by Professor Steen Scheuer of Roskilde
University Centre (Roskilde Universitetscenter, RUC) in connection with a
major research project entitled 'Working life and politics 2', conducted by
researchers from the Universities of Aalborg and Roskilde. The study has not
yet been published. Its key findings on free choice within collective
agreements and a number of other issues are summarised below.
Tripartite committee to examine training and lifelong learning
27 október 2004
If Denmark is to continue to be one of the wealthiest countries in the world
and at the same time secure a relatively even distribution of incomes, an
important prerequisite will be a high level of knowledge and competences
throughout the entire labour force and a flexible labour market. This was the
message of a speech by Prime Minister Anders Fogh Rasmussen to parliament
(the Folketing) on 1 October 2004.
New union holds first congress
04 október 2004
In a ballot held in May/June 2004, the members of the General Workers’
Union (Specialarbejderforbundet i Danmark, SiD) and the National Union of
Female Workers (Kvindeligt Arbejderforbund, KAD) overwhelmingly approved a
merger proposed by the leaderships of the two trade unions (DK0406103F [1]).
The two unions, both mainly organising unskilled workers, are affiliated to
the Confederation of Danish Trade Unions (Landsorganisationen i Danmark, LO).
Before the merger ballot, there had been a long and well-prepared campaign
aimed at ensuring that the members of the two unions (both skilled and
unskilled) were well informed about the process (DK0211105F [2]). The unions'
leaderships were keen to avoid a 'no' vote, not least in the light of several
recent failed union mergers (DK0111102N [3] and DK0110101N [4]).
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/two-major-unskilled-workers-unions-agree-merger
[2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/three-unions-plan-merger
[3] www.eurofound.europa.eu/ef/observatories/eurwork/articles/merger-between-childcare-workers-unions-abandoned
[4] www.eurofound.europa.eu/ef/observatories/eurwork/articles/merger-of-electricians-and-metalworkers-unions-rejected-by-members
Finance employers propose making pension contributions optional for under-35s
04 október 2004
On 29 September 2004, the main employers' organisation in finance, the Danish
Employers’ Association for the Financial Sector (Finansektorens
Arbejdsgiverforening, FA) announced to the media its proposals for the
industry's forthcoming collective bargaining round in early 2005 (to replace
a two-year agreement concluded in 2003 - DK0302102F [1]). FA argues that
younger workers should be given a choice as whether or not to pay the
employee's contribution to their supplementary ('labour market') pension
scheme, which is regulated by collective agreements. Employees under the age
of 35 have enough expenses at this time of their life and their pension
contribution can wait, FA argues. This proposal is controversial in that it
breaks with the principle behind Denmark's collectively agreed labour market
pensions, according to which the employer and employee must each set aside a
fixed percentage of the wage for an occupational pension (TN0404101S [2]).
Generally, the employers’ share is two-thirds and the employees' one-third.
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/new-agreements-introduce-individual-options-for-employees
[2] www.eurofound.europa.eu/ef/observatories/eurwork/erm/comparative-information/occupational-pensions-and-industrial-relations
'New wage' system will be difficult issue in regional/municipal bargaining
26 szeptember 2004
Late 2004 and early 2005 will see collective bargaining in the public sector,
when the current three-year agreements signed in 2002 for municipal and
regional authority workers (DK0205102F [1]) and central government workers
(DK0204103F [2]) expire. Bargaining must be completed by 1 April 2005,
covering about 650,000 employees in the regional and municipal sectors and
about 160,000 employees in the central government sector. The specific
demands for the negotiations are due to be exchanged on 5 October 2004.
However, the municipal and regional authorities have already indicated that
they want the 'new wage' (Ny Løn) system introduced in April 1998
(DK9705110F [3]) to be expanded. They also want the new agreement to run for
a period of three years.
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/municipalcounty-sector-deal-narrowly-approved
[2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/three-year-agreement-concluded-in-central-government-sector
[3] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined-working-conditions/the-1997-danish-collective-bargaining-round-completed
Arbitration settles dispute over 'missed time'
23 szeptember 2004
Extra hours worked by employees after an unlawful strike in order to make up
for production lost due to the strike count as overtime work and not as
ordinary working time. Except for premium rates of overtime pay, all other
provisions connected with overtime laid down in the relevant collective
agreement still apply. This was the decision made in September 2004 by an
arbitrator (a Supreme Court judge) at an industrial arbitration tribunal in a
dispute over the interpretation of a much debated rule set out in private
sector collective agreements. The decision ends a dispute concerning the
interpretation of this 'missed time' rule between the Central Organisation of
Industrial Employees in Denmark (Centralorganisationen af industriansatte,
CO-industri) and the Confederation of Danish Industries (Dansk Industri, DI).
This dispute broke out in summer 2004, only a few months after the relevant
rule was agreed.