ACTRAV Symposium on Collective Bargaining Geneva, October 2009 Gabriele Sterkel Modalities of collective bargaining … experiences with decentraliation in Germany ACTRAV Symposium on Collective Bargaining Geneva, October 2009 Gabriele Sterkel

overview Decentralization and the crisis of CB in Germany Economic effects … changing impact on wages Background and causes Trade union practices and strategies Towards re-stabilization of cb system? Gabriele Sterkel

3 dimensions of the crisis of CB Erosion Coverage and effectiveness decreasing Decentralization Movemet from sector/national to plant level Diversity of Standards ... according to plant productivity Differenciation (Segment-/ Fragmentation) Gabriele Sterkel

Coverage of CA in Germany in % of workers Quelle: IAB/ WSI in der HBS

Coverage of CA 2005/2006 in Europe in % of workers Quelle: WSI in der HBS Gabriele Sterkel

Forms and extend of Decentralization 2 types: same standards/ worse standards Process: "controlled" / "wild" Enterprise level agreements (same/controlled) Increase - 1990: 2.500 – now: 10.000 Opening clauses (worse/ controlled) Nearly every sector, 75% used (different surveys & figures) Different modalities in metal-, chemical-, service sector "alliances for jobs" on plant level (worse/ wild? controlled?) In ¼ of all enterprises; nearly all big enterprises Concessions, deal: worse standards for job security Gabriele Sterkel

Use of opening clauses: What standards? Gabriele Sterkel

Forms of Differenciation (Segment-/ Fragmentation) Different standards for business lines ... For certain workers groups of workers Growing problems with small competing "trade unions" (upward + downward competition) Trend to cheapen services Gabriele Sterkel

overview Decentralization and the crisis of CB in Germany Economic effects … changing impact on wages Loss of trade unions' role of wealth distribuion Decrease of real wages Growing low wage sector Background … reasons Offensive defensive? Gabriele Sterkel

Collectively bargained and real wages in Germany Quelle: Statistisches Bundesamt/ WSI in der HBS Gabriele Sterkel

Collectively bargained and real wages in EMU (development every year and in %) Quelle: EZB/ WSI in der HBS Gabriele Sterkel

Development of real wages 2000-2008 Gabriele Sterkel

Capital income and gross wages Berechnungen Norbert Reuter, Bereich Wirtschaftspolitik

Bilance of distribution old EU members 2000-2007 (development of wages in comparison with productivity + inflation) Quelle: WSI in der HBS Gabriele Sterkel

Growing wage gap between high and low earnings Gabriele Sterkel

Low wage share (2005 in % of all employees) Quelle: Russel Foundation/ WSI in der HBS Gabriele Sterkel

Background and causes Economy National labour market policy Export orientation Reorganization, cost cutting, shareholder value, outsourcing, privatization ... National labour market policy Social legislation (Hartz IV) EU service directive Ideological neoliberal offensive No national minimum wage Employers leave their organizations no cb membership Gabriele Sterkel

Trade union strategies + practice with decentralization Different opinions + ways in german trade unions, but all want to ... limit and controll decentralization Transparency, influence on conditions "offensive defensive" + to use the chances Trade union comes closer to plant level Activation, integration of members + organisation of new ones Gabriele Sterkel

Towards re-stabilization of the CB system? Plant level power + organising helpful, but … CB is not sufficient for stabilisation, other factors: state: Better legal possibilities for extention of CA and make them generally binding More social security Statutory minimum wage campaign for wage floor + living wages At least 60% of national average wage Gabriele Sterkel

Thank you for listening! Statutory minimum wages Thank you for listening! Gabriele Sterkel