Berlin September 27th 2013 Decentralization and derogations from collective agreements: how ver.di is facing the challanges Gabriele Sterkel 1

Preface: Derogations from collective agreements are with roundabout 30 cases 2012 not a very important way of decentralization in ver.di. The peak time was between 2003 and 2007 – but never more than 100 new cases in one year. We will come back to this... Other forms of decentralization and fragmentation are much more important Gabriele Sterkel2

outline The challenges... decline of real wages, growth of low wage sector, splitted labour cost (cheep services), distribution, growing gaps... crisis of cb system, decline of coverage, low legal support privatization, outsourcing, growth in precarious and temp.a.work derogations?... and how ver.di is facing them: Minimum wage policy Campaign for a statutory minimum wage, branch level mw after the posted workers law, mw in public procurement Steps towards more and better agreements towards a continued positive development of members (best results in collective bargaining actions) Basic rules/guidelines (Grundsätze) in cb coordination on hardship clauses and a minimum cb wage

Entwicklung vor der Krise… Development of real wages... Before the crisis

Entwicklung nach der Krise…... After the crisis

Low wage shares in Europe Gabriele Sterkel6

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Wage drift Gabriele Sterkel9

No statutory minimum wage in Germany 10 WSI Oktober 2013

Low support of german cb by extension (Verbreitung der Allgemeinverbindlicherklärung) Dr. Thorsten Schulten11 … möglich und in der Praxis sehr verbreitet Belgien, Finnland, Frankreich, Griechenland, Niederlande, Luxemburg, Portugal, Rumänien, Spanien … möglich, aber in der Praxis kaum genutzt Deutschland, Norwegen, Bulgarien, Estland, Lettland, Litauen, Polen, Slowakei, Tschechische Republik, Ungarn … nicht möglich Dänemark, Großbritannien, Malta, Schweden, Zypern … funktionale Äquivalente zur AVEIrland, Italien, Österreich, Slowenien

Gabriele Sterkel12

Privatisation in Germany Gabriele Sterkel13

The German job miracle Gabriele Sterkel14

Liberalization, privatization, outsourcing, decentralization of enterprise structures Have entirely changed the preconditions of collective Bargaining New economic structures, new sectors New structures in collective agreements: new regional and thousands of enterprise- and plant-level agreements Wide areas without ca and wide areas with (very) low ca Growing importance of collective action and strikes New acting subjects: collective action became more female (first experiences) Gabriele Sterkel15

outline The challenges... decline of real wages, growth of low wage sector, splitted labour cost (cheep services), distribution, growing gaps... crisis of cb system, decline of coverage, low legal support privatization, outsourcing, growth in precarious and temp.a.work derogations?... and how ver.di is facing them: Minimum wage policy Campaign for a statutory minimum wage, branch level mw after the posted workers law, mw in public procurement Steps towards more and better agreements towards a continued positive development of members (best results in collective bargaining actions) Basic rules/guidelines (Grundsätze) in cb coordination on hardship clauses and a minimum cb wage

Campaign for a statutory minimum wage Gabriele Sterkel17

Branch level mw after the posted workers law Gabriele Sterkel18

Minimum wages in public procurement Gabriele Sterkel19

outline The challenges... decline of real wages, growth of low wage sector, splitted labour cost (cheep services), distribution, growing gaps... crisis of cb system, decline of coverage, low legal support privatization, outsourcing, growth in precarious and temp.a.work derogations?... and how ver.di is facing them: Minimum wage policy Campaign for a statutory minimum wage, branch level mw after the posted workers law, mw in public procurement Steps towards more and better agreements towards a continued positive development of members (best results in collective bargaining actions) Basic rules/guidelines (Grundsätze) in cb coordination on hardship clauses and a minimum cb wage

Aiming continuous growth of membership Organizational change since 2007: raising the number of members is of highest importance... Cb approach: Bedingungsgebundene Tarifarbeit (Health sector) very successfull in both: more members and better agreements Organizing approach in other branches: security, aviation, retail trade, (public private) transport Not only organization but also participation and activation Gabriele Sterkel21

Gabriele Sterkel22

Collective bargaining coordination in ver.di: with basic rules/guidelines background 13 sector departments/ 60 branch organisations nearly comlete cb autonomy of the cb committees roundabout 2000 collective agreements every year institutions of coordination cb department and Clearingstelle cb principles (guidelines) + clearing procedure (no guideline about pay raise) opening clausses working time Equal treatment/pay minimum wage guideline: No ca wage below 8,50 minimum wage monitoring Gabriele Sterkel

Clearingfälle (hardship ca 50-60%)

Gabriele Sterkel25

Gabriele Sterkel26

Gabriele Sterkel27

Basic rule: no collectively agreed wage per hour below 8,50 Binding minimum wage for collective agreements Rule, procedure and practice... The result: very successfull Minimum wage monitoring Controll of all agreed wages since 2011 Newly created database Gabriele Sterkel28

Gabriele Sterkel29

Gabriele Sterkel30

Balkendiagramm: Verteilung aller Entgeltgruppen Gabriele Sterkel31

Development of wage-groups in ver.di- agreements Gabriele Sterkel32

Perspectives? the question is: how to restabilise + revitalise the German collective bargaining system with the aim of better pay raise + better working conditions. first steps: Politically different economic policy, statutory minimum wage Legally Reform of the extension law (for more generally binding agreements) Socially To make trade unions more recognised more attractive for new members... Organizing... more social and cb power... More recognition in society for the people working in the service sector