LO calls for European collective bargaining rules

At its congress in October 2003, the Danish Confederation of Trade Unions (LO) adopted a new policy on EU-level industrial relations, calling for general rules for European collective agreements and a European dispute-settlement system. The policy was the subject of considerable debate and was not agreed by all member unions.

At its 35th congress held on 26-31 October 2003, the Danish Confederation of Trade Unions ( Landsorganisationen i Danmark, LO) adopted - after a long debate on objectives and wording - a more active or 'offensive' policy in the field of European-level industrial relations, with a view to introducing an EU collective bargaining system. The policy was agreed following after delegates - representing LO's 19 member unions - toned down some of the more 'EU-friendly' formulations in the text proposed by the LO executive and changed some of the wording. The LO leadership expressed satisfaction with the decision in spite of the amendments to the original proposal.

The resolution 'on the future of European labour law' adopted at the congress states that there is a need to establish a 'supplementary European system of industrial relations' which contains certain basic rules for collective agreements at European level. This must take place in a way that 'ensures that workers’ rights are not undermined while at the same time ensuring that the national collective agreements are preserved'. A framework agreement on general rules for European collective agreements should be concluded by the EU-level central social partner organisations, in order to 'promote the agreement approach at social partner level and ensure the implementation of workers’ rights in pursuance of social partners’ agreements in the individual countries' and secure an 'agreement framework' for both agreements within multinational companies and agreements between the social partners. A basic framework agreement should contain rules on the mutual recognition of the social partners as well as an obligation to 'take the agreement approach', in so far as possible, in connection with social partners’ agreements. Furthermore, the agreement should contain rules on the conclusion, legal effects and termination of cross-border agreements. The basic framework agreement between the European central organisations should be supplemented with provisions on how to implement European social partners’ agreements at national level.

The resolution states that there is a need to ensure that such European-level agreements are respected, and thus for an independent body with the jurisdiction to interpret such agreements. A 'European dispute-settlement system' should be established 'with a view to ensuring a secure and joint interpretation of the agreements that are concluded at the European level and that will later be implemented at the national level'.

The LO member union most favourable to the new 'EU offensive' was the Union of Commercial and Clerical Employees in Denmark ( Handels- og Kontorfunktionærernes Forbund, HK) - Denmark' largest union - while the General Workers’ Union ( Specialarbejderforbundet i Danmark, SiD) - the second-largest union - represented the sceptics. As a concession to SiD, a formulation in the draft resolution referring to an 'EU industrial court' was dropped and replaced by the broader and less concrete concept of a 'European dispute-settlement system'. However, the LO leadership still believes that work can now continue towards an increased use of agreements rather than legislation at EU level, and the resolution also opens the possibility of supporting a more concrete European collective bargaining system in future.

Despite these concessions, the third-largest LO member union, the Danish Trade Union of Public Employees ( Forbundet af Offentligt Ansatte, FOA), together with the the National Union of Nursery and Childcare Assistants ( Pædagogisk Medhjælper Forbund, PMF) and a few SiD delegates who continued to be sceptical, voted against the proposal of the LO leadership. FOA was in favour of a European system for settlement of industrial disputes, but could not support the need for European basic rules for collective agreements in the public sector. FOA fears that 'common rules of the game' could develop into full-scale European agreements covering public employees.

HK and the Danish Food and Allied Workers’ Union ( Nydelses- og Næringsmiddel Forbundet, NNF) saw a need for common agreements at EU level and stated, in this connection, that its representatives in multinational companies have a need for a trade union movement which extends beyond the borders of Denmark.