Representativeness of the European social partner organisations: Metal sector – Slovakia

The aim of this representativeness study is to identify the respective national and supranational actors (i.e. trade unions and employer organisations) in the field of industrial relations in the metal sector in Slovakia. In order to determine their relative importance in the sector’s industrial relations, this study will, in particular, focus on their representational quality as well as on their role in collective bargaining.

1. Sectoral properties

The m sector plays a significant role in the Slovakian economy. Social partners are well organised and social dialogue is developed. Trade unions are associated to the Metal Trade Union Association (OZ Kovo), which covers around 30% of employees and two employer associations operate in the sector. Their total density in terms of employees is about 25%, according to statistics. Social partners conclude two multi-employer collective agreements in the sector. The average collective bargaining coverage in terms of employees in the sector is about 15-20%. Extensions are applied, however, in limited extent. The Confederation of Trade Unions (KOZ SR) is involved in consultations on sector-related public policy but employer associations are not.

*Employees plus self-employed persons and agency workers.

**According to the "old" NACE.

2. The sector’s trade unions and employer associations

This section includes the following trade unions and employer associations:

1. trade unions which are party to sector-related collective bargaining; (In line with the conceptual remarks outlined in the accompanying briefing note, we understand sector-related collective bargaining as any kind of collective bargaining within the sector, i.e. single-employer bargaining as well as multi-employer bargaining. For the definition of single- and multi-employer bargaining, see 4.2)

2. trade unions which are a member of the sector-related European federation, namely the European Metalworkers’ Federation (EMF);

3. employer associations that are party to sector-related collective bargaining;

4. employer associations (business associations) that are members of the sector-related European business federation, namely the Council of European Employers of the Metal, Engineering and Technology-based Industries (CEEMET).

2a Data on the trade unionsMetal Trade Union Association (OZ Kovo)

2a.1 Type of membership (voluntary vs. compulsory)

Membership of OZ Kovo is voluntary.

2a.2 Formal demarcation of membership domain (e.g. white-collar workers, private-sector workers, employees in the metal industry, etc.)

At present, OZ Kovo is the biggest trade union association in the private sector. Its members are from the metal, metallurgy and electric industries and from municipal services. Oz Kovo’s domain overlaps the sector and its members include white- and blue-collar workers from the sector.

2a.3 Number of trade union members (i.e. the total number of members of the trade union as a whole)

Total number of Oz Kovo members was about 70,000 in 2008 (E).

2a.4 Number of trade union members in the sector

About 62,000 members were from the sector (E).

2a.5 Female trade union members as a percentage of total union membership

The share of female union membership was 32% (A).

2a.6 Domain density: total number of members of the trade union in relation to the number of potential members as demarcated by the trade union domain (see 2a.2)

Oz Kovo density was about 28% (E).

2a.7 Sectoral density: total number of members of the trade union in the sector in relation to the number of employees in the sector, as demarcated by the NACE definition

Sectoral density of Oz Kovo was about 30% (E).

2a.8 Sectoral domain density: total number of members of the trade union in the sector in relation to the number of employees which work in that part of the sector as covered by the trade union domain

Sectoral density of Oz Kovo was about 30% (E).

2a.9 Does the trade union conclude sector-related collective agreements?

Yes; Oz Kovo concludes multi-employer collective agreements.

2a.10 For each association, list their affiliation to higher-level national, European and international interest associations (including cross-sectoral associations)

Oz Kovo is member of the national Confederation of Trade Unions (KOZ SR) and the EMF.

2b Data on the employer associationsThe Association of Mechanical Engineering Industry (ZSP SR)

2b.1 Type of membership (voluntary vs. compulsory)

Membership of ZSP SR is voluntary.

2b.2 Formal demarcation of membership domain (e.g. SMEs, small-scale crafts/industry, metalworking enterprises, etc.)

ZSP SR associates mainly employers in the mechanical engineering industry, with a few members from commerce. Its domain overlaps the sector.

2b.3 Number of member companies (i.e. the total number of members of the association as a whole)

Total number of companies associated in ZSP SR was 69 in 2008 (A).

2b.4 Number of member companies in the sector

Total number of companies associated in ZSP SR from the sector was about 60 (E).

2b.5 Number of employees working in member companies (i.e. the total number of the association as a whole)

23,742 in 2006 (A)

2b.6 Number of employees working in member companies in the sector

Total number of employees working in member companies was about 23,000 (E).

2b.7 Domain density in terms of companies: total number of member companies of the association in relation to the number of potential member companies as demarcated by the association’s domain (see 2b.2)

No data are available by statistics. According to ZSP SR, its domain density in terms of companies can be about 10% (E).

2b.8 Sectoral density in terms of companies: total number of member companies of the association in the sector in relation to the number of companies in the sector, as demarcated by the NACE definition

According to statistics, it is about 1% (A) – (statistical data, however, include a huge number of micro enterprises, where membership of an employer association is unlikely to be worthwhile.) According to ZSP SR, its sectoral density in terms of relevant companies operating in the mechanical engineering sector is about 7-8% (E).

2b.9 Sectoral domain density in terms of companies: total number of member companies of the association in the sector in relation to the number of companies which operate in that part of the sector as covered by the association’s domain

No data are available by statistics. According to ZSP SR, its sectoral density in terms of relevant companies is about 8-9% (E).

2b.10 Domain density in terms of employees represented: total number of employees working in the association’s member companies in relation to the number of employees working in potential member companies, as demarcated by the association’s domain (see 2b.2)

No information available

2b.11 Sectoral density in terms of employees represented: total number of employees working in the association’s member companies in the sector in relation to the number of employees in the sector, as demarcated by the NACE definition

Sectoral density of ZSP SR is about 11% (A).

2b.12 Sectoral domain density in terms of employees represented: total number of employees working in the association’s member companies in the sector in relation to the number of employees working in companies which operate in that part of the sector as covered by the association’s domain

No data are available by statistics. According to the ZSP SR, its sectoral density is about 18-20% (E).

2b.13 Does the employer association conclude sector-related collective agreements?

Yes; ZSP SR concludes sector-related multi-employer collective agreements with Oz Kovo.

2b.14 For each association, list their affiliation to higher-level national, European and international interest associations (including the cross-sectoral associations).

Since 2008, ZSP SR is not a member of any peak employer association in Slovakia. Nor is it a member of CEEMET.

The Association of Electric Industry (ZEP SR)

2b.1 Type of membership (voluntary vs. compulsory)

Membership of ZEP SR is voluntary.

2b.2 Formal demarcation of membership domain (e.g. SMEs, small-scale crafts/industry, metalworking enterprises, etc.)

ZEP SR associates employers in the electric industry and its domain matches the sector.

2b.3 Number of member companies (i.e. the total number of members of the association as a whole)

Total number of companies associated in ZEP SR is 82 (A).

2b.4 Number of member companies in the sector

Total number of companies from the sector is 82 (A).

2b.5 Number of employees working in member companies (i.e. the total number of the association as a whole)

About 30,000 (E)

2b.6 Number of employees working in member companies in the sector

Total number of employees working in member companies from the sector is about 30,000 (E).

2b.7 Domain density in terms of companies: total number of member companies of the association in relation to the number of potential member companies as demarcated by the association’s domain (see 2b.2)

No data are available by statistics. According to ZEP SR, its domain density in terms of companies is about 35% (E).

2b.8 Sectoral density in terms of companies: total number of member companies of the association in the sector in relation to the number of companies in the sector, as demarcated by the NACE definition

According to the statistical data, sectoral density in terms of companies is about 1.5% (A). Statistical data, however, include a huge number of micro enterprises for which membership of an employer association is unlikely to be worthwhile. ZEP SR density in terms of relevant companies can be estimated at about 8% (E).

2b.9 Sectoral domain density in terms of companies: total number of member companies of the association in the sector in relation to the number of companies which operate in that part of the sector as covered by the association’s domain

No data are available. According to ZEP SR, its sectoral density in terms of companies is about 35% (E).

2b.10 Domain density in terms of employees represented: total number of employees working in the association’s member companies in relation to the number of employees working in potential member companies, as demarcated by the association’s domain (see 2b.2)

ZEP SR domain density is about 42% (E).

2b.11 Sectoral density in terms of employees represented: total number of employees working in the association’s member companies in the sector in relation to the number of employees in the sector, as demarcated by the NACE definition

ZEP SR sectoral density is about 14% (A).

2b.12 Sectoral domain density in terms of employees represented: total number of employees working in the association’s member companies in the sector in relation to the number of employees working in companies which operate in that part of the sector as covered by the association’s domain

ZSP SR sectoral density is about 42% (E).

2b.13 Does the employer association conclude sector-related collective agreements?

Yes; ZEP SR concludes sector-related multi-employer collective agreements with Oz Kovo.

2b.14 For each association, list their affiliation to higher-level national, European and international interest associations (including the cross-sectoral associations).

Since 2008, ZEP SR is not a member of any peak employer association in Slovakia, or CEEMET.

3. Inter-associational relationships

3.1. Please list all trade unions covered by this study whose domains overlap.

Oz Kovo

3.2. Do rivalries and competition exist among the trade unions, concerning the right to conclude collective agreements and to be consulted in public policy formulation and implementation?

Not applicable

3.3. If yes, are certain trade unions excluded from these rights? For what reason?

Not applicable

3.4. Same question for employer associations as 3.1.

ZSP SR and the ZEP SR.

3.5. Same question for employer associations as 3.2.

There is no competition or rivalry between these two employer associations. ZSP SR and ZEP SR conclude separate multi-employer collective agreements with Oz Kovo. Similarly, no rivalries exist regarding consultations about sector-related public policy as neither of these associations is directly involved in consultations.

3.6. Same question for employer associations as 3.3.

Not applicable

3.7. Are there companies and/ or employer associations which refuse to recognise the trade unions and refuse to enter collective bargaining?

No information available

4. The system of collective bargaining

4.1. Estimate the sector’s rate of collective bargaining coverage (i.e. the ratio of the number of employees covered by any kind of collective agreement to the total number of employees in the sector).

The collective bargaining coverage in the sector is about 15-20%.

4.2. Estimate the relative importance of multi-employer agreements and of single-employer agreements as a percentage of the total number of employees covered. (Multi-employer bargaining is defined as being conducted by an employer association on behalf of the employer side. In the case of single-employer bargaining, it is the company or its subunit(s) which is the party to the agreement. This includes the cases where two or more companies jointly negotiate an agreement.)

In 2008, Oz Kovo concluded two multi-employer collective agreements that applied to the sector, covering companies in mechanical engineering and the electric industries. Multi-employer collective agreements play a significant role because they create a framework for single- employer collective agreements concluded in individual companies in the sector. Both agreements are considered to be important.

4.2.1. Is there a practice of extending multi-employer agreements to employers who are not affiliated to the signatory employer associations?

Yes; the extension of multi-employer collective agreements is applied.

4.2.2. If there is a practice of extending collective agreements, is this practice pervasive or rather limited and exceptional?

Due to the resistance of some employers and the existence of ambiguous rules/procedures, which are applied to the extension of collective agreements, the number of extensions was rather low.

4.3. List all sector-related multi-employer wage agreements* valid in 2007 (or most recent data), including for each agreement information on the signatory parties and the purview of the agreement in terms of branches, types of employees and territory covered.

* Only wage agreements which are (re)negotiated on a reiterated basis.

There are no separate multi-employer wage agreements concluded in the sector. Wage agreements used to be included in multi-employer agreements.

4.4. List the sector’s four most important collective agreements (single-employer or multi-employer agreements) valid in 2007 (or most recent data), including for each agreement information on the signatory parties and the purview of the agreement in terms of branches, types of employees and territory covered. Importance is measured in terms of employees covered.

5. Formulation and implementation of sector-specific public policies

5.1. Are the sector’s employer associations and trade unions usually consulted by the authorities in sector-specific matters? If yes, which associations?

Oz Kovo is consulted in sector-specific matters via its membership of KOZ SR, which participates in the tripartite Economic and Social Council (HSR). ZSP SR and ZEP SR are, however, consulted indirectly through their informal cooperation with the peak employer organisation AZZZ SR, which participates in consultations at the HSR.

5.2. Do tripartite bodies dealing with sector-specific issues exist? If yes, please indicate their domain of activity (for instance, health and safety, equal opportunities, labour market, social security and pensions etc.), their origin (agreement/statutory) and the interest organisations having representatives in them:

*Sector-specific policies specifically target and affect the sector under consideration.

Presently, no special tripartite body exists to deal with sector-specific issues.

6. Statutory regulations of representativeness

6.1. In the case of the trade unions, do statutory regulations exist which establish criteria of representativeness which a trade union must meet, so as to be entitled to conclude collective agreements? If yes, please briefly illustrate these rules and list the organisations which meet them.

The principal statutory condition applicable to any trade union association to be entitled to conclude collective agreements is to be registered at the Ministry of Interior as a social partner. No special additional regulation exists for the representativeness of trade unions to bargain collectively in the metal sector (or in other sectors).

6.2. In the case of the trade unions, do statutory regulations exist which establish criteria of representativeness which a trade union must meet, so as to be entitled to be consulted in matters of public policy and to participate in tripartite bodies? If yes, please briefly illustrate these rules and list the organisations which meet them.

The statutory condition applicable to trade union association in the metal sector to be consulted in matters of public policy, is to be legally registered as a social partner. Any trade union association should represent at least 100,000 employees in the country to be involved in tripartite consultations. However, Oz Kovo does not meet this criterion. Nonetheless, it is involved in consultations on sector-related issues at the HSR through its affiliation to KOZ SR.

6.3. Are elections for a certain representational body (e.g. works councils) established as criteria for trade union representativeness? If yes, please report the most recent electoral outcome for the sector.

Elections are not established as criteria for trade union representativeness in the sector. Trade union members usually elect a trade union chair and committees.

6.4. Same question for employer associations as 6.1.

The principal statutory condition applicable for any employer association to be entitled to conclude collective agreements is to be registered at the MV SR as a social partner. No additional special regulations exist to determing the representativeness of employer organisations so they can bargain collectively in the metal sector.

6.5. Same question for employer associations as 6.2.

The statutory condition applicable for any employer organisation in the metal sector to be consulted in matters of public policy is to be legally registered as a social partner. Any employer association should represent enterprises with at least 100,000 employees, in order to be involved in tripartite consultations. Neither ZSP SR nor ZEP SR meet this criterion and they are not directly involved in these consultations. However, both employer organisations concluded informal agreements with the AZZZ SR which represents them at the HSR.

6.6. Are elections for a certain representational body established as criteria for the representativeness of employer associations? If yes, please report the most recent outcome for the sector.

Elections for a representative body of employers are not established as a criterion for employers' representativeness in the metal sector.

7. Commentary

There are no particular problems with the representativeness in this sector. Maybe the only problem worth mentioning in the sector is that presently neither ZSP SR nor ZEP SR is affiliated to any peak employer organisation in the country. Presently, it reduces their active involvement and impact on consultations on sector-specific public policy.

8. List of consulted organisations and individuals

Mr. Anton Mifka, Vice-President of Oz Kovo

Mr. Juraj Borgula, Principal negotiator of ZSP SR

Mr. Vlado Kalina, Secretary General of ZEP SR

Ludovit Cziria, Institute for Labour and Family Research