Protest over wage discrimination in public transport sector

In August 2006, tram and trolleybus drivers held a picket in Estonia’s capital city Tallinn, as a result of wage discrimination in the public transport sector. The drivers demanded a wage increase of 20% in order to reach the same wage level as bus drivers in Tallinn. The wage negotiations have not yet been concluded.

Wage discrimination

At the beginning of August 2006, the wages of bus drivers in the Tallinn Bus Company Ltd (Tallinna Autobussikoondis, TAK) were increased by 20%, with the aim of addressing the shortage of employees in the company. The salaries of bus drivers had already increased twice this year, by 10% in January and 5% in May 2006. Currently, the average monthly wage of bus drivers amounts to EEK 10,000 (€637). In comparison, the average monthly wage of tram and trolleybus drivers is only about EEK 7,000 (€446). Data from Statistics Estonia (Statistikaamet) show that the average monthly gross salary of bus drivers has been increasing steadily since 2005, when it stood at EEK 8,073 (€516), and it now stands at EEK 9,531 (€611) in the second quarter of 2006; these figures take into account regional variations of bus drivers’ wages.

The collective agreement of the Tallinn Tram and Trolleybus Company (Tallinna Trammi- ja Trollibussi Koondis, TTTK) included a salary increase of 7.5% in October 2006 for tram and trolleybus drivers. The previous increase of 7.5% was introduced in April 2006. Meanwhile, TAK has concluded an agreement for 2007–2008, which will increase the average salary of bus drivers up to EEK 12,200 (€769) in 2007.

According to TTTK employees, the income received from ticketing is also unequal: bus drivers receive 5% of the income acquired from ticketing, while tram and trolleybus drivers receive only 3% of this income. Lower wages have provoked trolleybus drivers to change employer and to sign up for bus driver training.

Both TAK and TTTK are owned by the city council and are similar in their functions and services provided.

Protest action

In response to the perceived wage discrimination, TTTK employees held a picket on 31 August 2006 in front of the company’s main building in Tallinn. The tram and trolleybus drivers demanded a 20% rise in wages to match those received by bus drivers. The TTTK employee representative stated that while they support the wage rises received by bus drivers, they insist that TTTK employees should also be treated equally.

In addition to TTTK employees, both bus drivers and metalworkers at TAK also attended the picket to support the demands of tram and trolleybus drivers.

Widespread support for workers

The chair of the TTTK council has stated that the management board of the company has to find the resources to increase employees’ wages. However, he is not optimistic about the possibility of a wage rise. He considers that a complementary wage rise for the company’s 900 employees would require additional resources at a cost of EEK 20 million (about €1.27 million) per year.

The Estonian Transport and Road Workers’ Trade Union (Eesti Transpordi- ja Teetöötajate Ametiühing, ETTA) supported the efforts of TTTK to reach the same wage level as bus drivers. Moreover, the Deputy Mayor of Tallinn, Jaanus Mutli, finds the demands of tram and trolleybus drivers justifiable. He stated that the city council is guided by an equal treatment principle when communicating with municipal enterprises.

TAK employees also support the demands of TTTK. They consider that there should be no competition between the employees of public transport companies in Tallinn; such competition will only influence the quality of services provided in the entire public transport sector. In addition, they point to the fact that employers only increase wages when they are forced to do so, due to staff shortages but not as a result of regular social dialogue.

Despite the widespread support for TTTK’s actions, no decision on the wage negotiations for tram and trolleybus drivers has yet been taken.

Commentary

Low unemployment levels in Estonia have resulted in a lack of employees in various sectors (EE0605029I, EE0608019I), amounting to a labour shortage of 7.9% in 2005 and 6.2% in the second quarter of 2006. This strengthens the position of employees in collective bargaining and wage negotiations. Transport sector employees are one of the most active groups in terms of collective bargaining in Estonia (EE0408102F). In recent times, another bus company, GoBus, which provides regional services, achieved a large increase in wages after its workers threatened to go on strike (EE0607019I). Moreover, the company argued for a wage increase on the grounds of discrimination and inequality. Nevertheless, the objective to harmonise pay levels in different regions was achieved.

Marre Karu, Kirsti Nurmela, Praxis Centre for Policy Studies