C Collective Bargaining Systems 1 Gerald Musger Collective Bargaining Systems in Europe are very different in concern of historical and cultural backgrounds legal frameworks and conditions procedures and participation levels of bargaining coverage of employees and p&ms legal and practical relevance of agreements trends and developments of the systems aims of the bargaining social partners possibilities and limitations of European initiatives

C Collective Bargaining Systems 2 Gerald Musger Historical and cultural backgrounds depend to a high degree on the political conditions of development of the trade union movement: Peaceful tradition of social partnership in some countries (e.g. Sweden) Prohibition or opression by dictatory regimes Strict separation of capital and labour and refusal of pressure on economic activities of free citizens (French revolution of 1789) Strict autonomy of bargaining in any aspect (British) Government involvement, regulation, mediation Mixed systems: a European development

C Collective Bargaining Systems 3 Gerald Musger Legal frameworks and conditions In most of the EU countries exist formal negotiation bodies, either by law or by voluntary agreement of the partners (exception: Great Britain) Governmental involvement only in the public sector (exception: Irelands tripartite system) Formal negotiation procedures in half of the countries Strike, lockout and mediation regulations totally different: strict law, individual rights, autonomy... In most countries collective agreements are valid only for members of the signing organizations, but governments might extend their validity

C Collective Bargaining Systems 4 Gerald Musger Levels and trends of collective bargaining in the European Union The national level of bargaining exists in all EU countries without UK and Netherlands The dominant level of collective bargaining is the sectoral level (for nationwide or regional branch sectors); exception: in UK, Greece and Italy the company level is dominant There is one common trend: shift of relevance from the sectoral to the company level And there is new governmental involvement in Belgium and France and withdrawal in Portugal

C Collective Bargaining Systems 5 Gerald Musger Collective agreements: coverage of professional and managerial staff In Belgium and Luxembourg (private sectors) p&ms are generally excluded from c. agreements; there might be codes of conduct for individual bargaining In the majority of EU countries collective agreements cover p&ms, with special exclusions of more or less big groups of top qualified or top managment staff (no exact definitions of p&ms) In Italy and France there are exact legal definitions and usually specific collective agreements Overall there are specific clauses for p&ms (e.g. concerning working time, bonuses, pensions)

C Collective Bargaining Systems 6 Gerald Musger Legal and practical relevance of collective agreements Collective agreements usually cover minimal wages for specific categories of employees Conflicts resulting from interpretation of rights may be brought to labour court Wages of experts and of managerial staff are normally far beyond the agreement minimal wages For professional and managerial staff there is an overall trend to individual contracts replacing or making collective agreements irrelevant; especially when they include socalled all-inclusive clauses

C Collective Bargaining Systems 7 Gerald Musger Developments and trends Aims of the bargaining social partners Employers‘ organizations want to reduce sectorwide agreements to minimum safety networks shifting more and more items to the company level Trade unions want to keep their sectoral bargaining competence in solidarity and macroeconomy aspects Usual change deals are more income = more flexible income Well organized system restructuring allowing flexibility may avoid its erosion by individualization of contracts The systems‘ future remains uncertain...

C Collective Bargaining Systems 8 Gerald Musger Initiatives of collective bargaining at European level... There is a bundle of good reasons for European initiatives in collective bargaining: Mutlinational companies operate similiar europewide The Euro makes the wage systems more transparent The open labour market favours standards for CVs, job descriptions or contracts Some European directives already made the beginning: working time, temporary work, health and safety subjects First crossborder initiatives to coordinate and monitor wage bargaining according to economy criteria

C Collective Bargaining Systems 9 Gerald Musger... and their European, national, cultural and mental limitations The subsidiarity principle of regulating social and labour affairs at national level The hesitating or even refusing behaviour of the European employers‘ organisations visavis the European trade unions The national thinking and prejudices against shifting bargaining competences from the national to the European level The practical difficulties of coordinating so different cultural and political backgrounds to launch bargaining campains

C Collective Bargaining Systems 10 Gerald Musger The Austrian collective bargaining system: the base elements A long tradition of social partnership between the Chamber of Commerce (employers‘ obligatory organisation), voluntary employers‘ organisations and the monolithic Trade Union Confederation A highly regulated labour legislation including a framework for rights to collective bargaining and the impacts of agreements at general, sectoral or company level (step-by-step principle) Agreements have a high degree of coverage Social partners are free in the procedures, decisions and ways to carry out conflicts (no strike law)

C Collective Bargaining Systems 11 Gerald Musger The Austrian collective bargaining system: efficient procedures Previous dialogue with experts on economic data Works councils‘ members from mighty companies nominated as negotiation delegates Round table negotiation with public information without any menacing Step-by-step campains if necessary: information meetings are often held, sometimes protest meetings, very seldom strikes Bargaining success depends on potential power In % of trade union members voted in a nationwide ballot for using trade union measures

C Collective Bargaining Systems 12 Gerald Musger The Austrian collective bargaining system: problematic elements Agreements signed by trade unions also cover those who are not members: this avoids splitting up but makes it more difficult to recruite members. As Austrian workers and employees are not used to strike campains, it would be difficult to realize stronger trade union measures in case of conflict. Average-oriented wage policy preserves structures. In some sectors with very few trade union members the agreed minimum wages are low, but experts and professionals have much higher effective wages; this making the collective agreement even less attractive.

C Collective Bargaining Systems 13 Gerald Musger Collective bargaining in Austria‘s bank sectors: the structure Long tradition of good collective agreements, based on the price of loyality of the staff in responsible and sensitive positions Negotiation partners are GPA and the voluntary employers‘ organisations Collective agreements cover the whole bank sector, with slight differences between banks, saving banks and cooperative banks At company or concern level there are many additional collective agreements with specific benefits for the employees

C Collective Bargaining Systems 14 Gerald Musger Collective bargaining in Austria‘s bank sectors: the actual challenges Maintaining the effective-wage-clause (an Austrian speciality) Reconstructing the wage pattern (redefining experience, age and qualification factors) Integrating additional pension systems Integrating gender mainstreaming principles Maintaining economic participation rights of works councils especially in the new multinational banks Getting influence to fair banking operations in the applicant countries

C Collective Bargaining Systems 15 Gerald Musger Questions to debate the Cypriote situation Where would you insert the Cypriote collective bargaining system in the background matrix? And for what reasons? Which are the most important developments and trends in the bargaining system in Cyprus? Which are the specific characteristics of the system concerning the bank sector? At which levels are there negotiations in the bank sector and how are they balanced? Could you identify the influence of foreign banks to the Cypiote system?