Vorstand FB Tarif 22nd/23rd October 2012 industriAll Sectoral Steel Committee EUCOBAN Survey Steel Industry Collective Agreements in the European Steel Industry

Vorstand FB Tarif 2 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink EUCOBAN Survey Steel Industry General trends in european collective bargaining policy Current collective agreements in European steel industry Summary and Outlook

Vorstand FB Tarif 3 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink EUCOBAN Survey Steel Industry General trends in european collective bargaining policy Current collective agreements in European steel industry Summary and Outlook

Vorstand FB Tarif 4 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink General trends in European Collective Bargaining Policy (1) 2010 Economic recovery in most of the European countries after the deep crisis 2008/09. Cooling down of economic growth in 2011, and expectation of a recession 2012/13. Increase of unemployment rate (EU-27average 2011%: 9.7; 2012: 10.3%) Decrease of real wages in Europe: EU-27 average 2011: -0.9%; 2012: -0,5 %) Deep negative impact of the Austerity Package on wages and economic growth.

Vorstand FB Tarif 5 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink General trends Development of the real wages in Europe in 2012 (in % compared to the prior year).

Vorstand FB Tarif 6 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink EUCOBAN Survey Steel Industry General trends in european collective bargaining policy Current collective agreements in European steel industry Summary and Outlook

Vorstand FB Tarif 7 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Crude Steel Production in Europe in Mio. tons (datas rounded) Source: EUROFER*) Trend: Exchange rate Jan-Aug 2012/2011

Vorstand FB Tarif 8 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Summary: Agreements 2010/beginning 2011 Look back to the main results of last years questionnaire Most of the agreements only with slight increase of wages. Long duration of agreements. More qualitative elements (e.g. job security, TWA, qualification). Difficult bargaining position for trade unions.

Vorstand FB Tarif 9 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink EUCOBAN Survey Steel Industry The results of the 2012 questionnare

Vorstand FB Tarif 10 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Steel agreement in Germany Collective bargaining at sectoral level. Agreement signed end of November 2011 for North-West and East Germany and End of January 2012 for the Saarland. Approx. 90,000 steel (blue and white collar) workers are covered. North-West and East Germany: 3.8 % wage increase from 01. December 2011 till 28. February 2013, November 2011 is a zero- month (16 months duration). Saarland: 3.8 % wage increase from 01. March 2012 till 31. May Lump sum of 160 for February (16 months duration). Guarantee of unlimited employment of apprentices after completion of their apprenticeships. (Duration till 31. January 2016). Agreement on partial retirement is prolonged till 28. February 2013 (NW, E-Ger.), till 31. May 2013 (Saarland).

Vorstand FB Tarif 11 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Steel agreement in France Agreements at sectoral and company level. Agreement signed at 01. March 2012 about the minimum wage table and modifications in the statutes of the collective agreement. Unlimited collective agreement. Wage increase: 2.3%.

Vorstand FB Tarif 12 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Steel Agreement in the UK CB at company level in TATA Steel, Port Talbot Texturing Technology Ldt with approx. 20,000 (blue and white collar) workers. Duration till (TATA), till 2013 (Port Talbot) (12 months). Demands: Wage increase 3.5% Minimum earning levels increased form 1, to 1,275 Pounds per calendar month. Ongoing negotiations in 2012 for wages, lump sums, pension schemes.

Vorstand FB Tarif 13 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Steel agreement in Poland CB at company level in ArcelorMittal, Huta Labedy, BGH, Huta Pokój, Sievierstallat, CMC, ISD Huta Czestochowa, Celsa Huta Ostrowioec including approx. 15,000 workers. No new agreement in 2012.

Vorstand FB Tarif 14 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Agreement in Austria covering several industrial sectors Agreement for the metal and mining industry covering in total 165,000 (blue and white collar) workers. Among them 13,000 workers of the steel industry. The agreement was signed 18. Oktober Duration: till (12 months). Wage increase: 4.4 % till 4.0%. The current collective bagaining round still continues. Employers want to split up the joint collective agreement into several sector agreements. The new agreement on the metal industry was signed , the negotiations for the mining and steel industry still continue.

Vorstand FB Tarif 15 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Steel agreement in the Netherlands Agreement for TATA Steel is still valid till 31. March Duration 01. April 2011 till 31. March 2013 (24 months). 9,500 (blue and white collar) workers are covered. Wage increase 3.75 %, 300 lump sum. No redundancies till 01. October But approx. 1,000 workplaces will be eliminated in a period of 4 years. Commitment of investments.

Vorstand FB Tarif 16 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Steel agreement in Czech Republic Agreements at sectoral level for: Arcelor Mittal Ostrava, Trinecke zelezárny, EVRAZ Vítkovice Steel, Zelezárny Veselí, ZDB GROUP, Hute POLDI, TSR, Moravské zelezárny. 19,350 (white and blue collar) workers are covered Agreements signed between December 2011 and March Majority of agreements are valid 1 till 3 years. Average of wage increase: 3% (88% of agreements stipulate wage increase. 50% of the agreements introduce a 13. wage; 13% a 14. wage. 88% of agreements: 37,5 hours/week. Improvement of training and qualification. Principles of precarious employment reduction control.

Vorstand FB Tarif 17 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Agreement of several industrial sectors including steel in Sweden Cross sectoral agreement covering Steel, Mining, Paper, technical and metal, chemical. Duration for the steel sector till (14 months). Wage increase for steel: 3 %. Sepearate negotiations on the issues of training and precarious work in September 2012.

Vorstand FB Tarif 18 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Steel Agreement in Slovakia Agreement at company level covering US Steel Kosice, US Steel Labortest Kosice and US Steel SBS Kosice with totally 11,467 (blue and white collar) workers. Duration: till (32 months). Wage increase 3.9 %. Guaranteed average lump sum 990. Commitment of employer to not apply collective redundancies (except when employee refuses 3 adequate job offers). Working time reduction in steps for workers in non stop operations till 33,5 hours per week in ,5 hours per week for the rest of the workers. Improvment of regulations on training and qualification.

Vorstand FB Tarif 19 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Steel Agreement in Hungary Wage and social agreements for Duration – ; 12,000 (blue and white collar) workers are covered. Wage increase: 2.1% Qualitative regulations about full-time employment, training and qualification, reduction of temporary workers.

Vorstand FB Tarif 20 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Steel agreement in Bulgaria Negotiations at sectoral and company level. New company agreement, signed at for Stomana Industry S.A., 771 (blue and white collar) workers covered. Duration: till – 21 months. Increase of the minimum wage in the company from 150 to 200. Increase of night shift allowance about 10%. Increase of the value of free protective food about 25%. Lump sum about 150 for summer holidays. Improved additional regulations on: dismissal protection for trade union members, qualification and training, restriction on temporary employment contracts (after one temporary contract the next contract must be permanent), anti-discrimination.

Vorstand FB Tarif 21 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink EUCOBAN Survey Steel Industry General trends in european collective bargaining policy Current collective agreements in European steel industry Summary and Outlook

Vorstand FB Tarif 22 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Summary: Tendency of the current agreements Statistics 12 replies – 57% Bargaining level: 7 company, 1 sectoral, 2 embedded in cross- sectoral.

Vorstand FB Tarif 23 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Summary: Tendency of the current agreements Only in few cases higher increases of wages than in the prior questionnaire period (Germany, Austria, Sweden). Most of the agreements have a duration longer than 15 months. That relativates wage increase. Qualitative elements (e.g. job security, TWA, qualification). Working time reduction in Czech Republic and Slovakia. Still difficult bargaining position for trade unions due to the ongoing economic and financial market crisis.

Vorstand FB Tarif 24 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Next CB campaings in steel Czech Republic: September 2012 till March Germany: Negotiations March Netherlands: Beginning Sweden: Beginning France: Beginning of Austria: Autumn of Bulgaria: 01. November 2013 (company level).

Vorstand FB Tarif 25 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Demands in the next CB campaings in steel Main demands mentioned in the replies Wage increase (Tariffs, bonuses, premiums, shift allowances, etc.) Job security, employment, decent work Demographic situation Special demands mentioned in the replies Recent amendments of Hungarian Labour Code

Vorstand FB Tarif 26 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink Apparent Steel Consumption in EU-27 Rates of change of steel in % Forecasts Source: EUROFER, Report July 2012

FB TP, Ressort Europa Vorstand VB 04/FB Tarifpolitik/Ressort Europa Uwe Fink, Tel.: 069/ , Thanks for your attention!