Organizing & CB Coverage (2004, in percent) Sweden Finland Denmark Belgium Norway Austria Italy Spain Source: SAK, quoting OECD Employment Outlook, July 2004, 30/11/2006

Organizing & CB Coverage in OECD Countries (2004, in percent) UK Germany Portugal Netherlands Japan Switzerland18-43 US France Source: SAK, quoting OECD Employment Outlook, July 2004, 30/11/2006

Sweden - the country with lowest days lost due to industrial conflict. FoA & Right to collective bargaining - 8 out 10 workers in unions, 6 out 10 employers in the employers’ organizations Right to blockade, sympathy strikes (can cut electricity to the workplace, can refuse to supply services, material to an employer who refuses to negotiate in good faith – to prevent social dumping & unfair competition – principle: basic rules must be same for all occupations & work places) Union strike fund (sufficient to fund 3-4 months strike for every worker in Sweden) - last strike was in 1980

Finland – IR system 3 national unions (SAK, STTK, AKAVA) & 4 national employer organizations Organizing & CB Coverage high: 76 – 93 National Incomes Policy Agreement & industry wide agreements – legally binding Jointly administer pension funds Labour legislation jointly drafted Ex. wage tax reduction & wealth tax abolishment agreed to at the same time as new wage agreement

Finland – IR system Applicability of CBAs – CBA signed with industrial employers organization applies also to non-member employers in the same industry CBAs terms & conditions apply also to temporary workers, agency & contract workers working in the industry where CBA exists Failure to implement the CBA entails penalties both on the violating party and its organization – both unions and employers organizations have the responsibility to ensure CBA is respected

Germany Social market economy – have as much ‘market’ as possible & have as much ‘govt intervention’ as necessary – different from Anglo-Saxon model (US, UK) Any one employed for over €400, will have an employment contract & has to be covered for social security (otherwise it is an illegal employment) Social security system set up under law but financed by W & E (not by tax payer) – State guarantees the system (makes up the short fall) – contributions work out to about 40% of the wage bill

Germany FoA (Art 9, German Constitution) & Right to collective bargaining exists – but no trade union law in Germany Employers & employees regulate their business between themselves without interference from the govt either in union formation or in CB process – the system functions because – strong unions-strong employers – both parties ensure implementation of what is agreed Germans tend to go for consensus rather than conflict & therefore CB plays a major role - agreement applicable to all, even non-members

Germany Unified trade union movement – one DGB on top and (now) 6 industry-wide unions with about 8 million members - membership fee: 1% of the gross income p.m. of the employee, out of which 12.5% goes to DGB CB – industry-wide – between union & industry association – can be nationwide or area wise – 2 types of agreements: wage & agreement on social aspects of work (working conditions, time, etc) - strike only for one reason – failure of wage negotiations No minimum wage law in Germany; CB on wages defines minimum wages in that industry FoA & CB are not only rights but also obligation of German labour & employer organizations.