Trade Unions Without Borders ETUC seminar on cross border collective bargaining, Montepulciano, 5-6 July Natalja Preisa, LBAS

Context Challenges to collective bargaining: reduction of coverage and number of collective agreements shifting from sectorial to company level collective bargaining Challenges caused by digitalisation and globalisation shrinking trade union membership rates difficulties to organise members (small and micro enterprises, virtual workplaces, online platforms, bogus self employment)

Context In particular, challenges to bargain collectively are «felt» in the new Member States of the EU Companies are moving their operational centres and production from old to new Member States. Goods and services are produced at lower labour expenses but sold in «rich» countries International companies often refuse to enter into collective bargaining in new Member States and pay minimum wages to local workers

At the heart of discussion: Solutions Concluding cross border collective agreements?

Cross - border collective agreement Collective agreement (CA) with a company that is binding on all enterprises in all countries where this company operates. For instance, Volkswagen agreement that sets minimum wages that have to be paid in Volkswagen factories in all the countries where it operates.

Solutions Different view points on cross border CA and solutions UNIEiropa un IndustryAll: are against cross border collective bargaining consider that collective bargaining is a national matter propose activities to help to strengthen capacity of national trade unions in the new Member States consider member organising as the main element of capacity of trade unions and the first priority support and will continue to support organising activities in the new Member States will support national trade unions in contacting and bargaining with international companies

Solutions The New Member States of the EU (e.g. Poland, Bulgaria) are strongly advocating for concluding cross border CA point that only sectorial CA are reducing inequality point at low employers unionisation rate = no parties to conclude sectoral collective agreements international companies refuse to enter sectorial CA operational command comes from the «mother» company, therefore, negotiations should be done and CA should be concluded with «mother» and not «daughter» company E.g. CA with VW Germany and not with VW Czech Republic

Lastly… Advice from Scandinavian trade unions to change financing model of trade unions in the new Member States: more money from membership fees should come to national confederation and sectorial confederations from local trade unions to ensure capacity of confederations to coordinate collective bargaining and facilitate organising

Conclusions Trade Unions of the Baltic States could make use of participating in this discussion and formulate their position evaluate the share and impact of Scandinavian and Western Europe companies in the local markets consider, whether cross border collective bargaining with international companies will improve labour standards and strengthen collective bargaining in the Baltics ETUC can not support any side and start activities unless it is given a mandate by trade unions Providing opinion during the ETUC Executive Committees gives the ETUC mandate

Thank you!