European Social dialogue Catherine Barnard Trinity College

Diversity of industrial relations in Europe Romano-Germanic Anglo-Irish Nordic

Diversity of industrial relations in Europe Romano-Germanic –state has central and active role industrial relations; extension of collective agreements –Low level of TU density –(extensive) workers rights provided by legislation and constitution –EU dominated by this model in early days

Diversity of industrial relations in Europe Anglo-Irish –Traditionally limited role played by state in industrial relations –Collective bargaining applies to parties involved and no further –Traditional absence of state involvement in legislation (although that has changed ) –Central role of the contract of employment

Diversity of industrial relations in Europe Nordic model –Extensive involvement of trade union, high union density –Functional equivalent of legislation is collective agreements –High public spending and high tax rates, knowledge economy –Flexicurity

Trade union density  Over 90% in Romania;  80%-89% in Belgium, Denmark, Finland and Sweden;  70%-79% in Italy and Norway;  60%-69% in Cyprus and Malta;  50%-59% in Luxembourg;  40%-49% in Austria and Slovenia;  30%-39% in Hungary, Ireland and Portugal;  20%-29% in Bulgaria, Germany, Greece, the Netherlands, Slovakia, UK;  10%-19% in Estonia, Latvia, Poland and Spain  0-10% in France. Source: European Industrial Relations Observatory, Trade Union Membership (2004)

Consequences of diversity Greater flexibility in legislation Use of Directives (not Regulations) in the social field –Can be implemented by social partners –Directives themselves contain ‘internal flexibility’ eg I&C Directive 2002/14 –Art. 5 of Dir. 2002/14 allows PEAs to stand Negotiated flexibility: interprofessional/sectoral social partners negotiate Europe-wide collective agreements; may have legal force Subsidiarity: vertical and horizontal Reflexive law

Development of EC Social Policy 1957 Treaty of Rome 1972 change of approach: vigorous action in the social sphere SEA 1986: Art 118a (new 137) minimum standards Directives by qmv Community Social Charter 1989 Maastricht Social Chapter 1992 Amsterdam Treaty Employment Title Treaty of Nice 2000

Maastricht Treaty SPA/SPP and the effect on the UK More measures adopted under qmv Expansion of competence Greater role for social partners, including legislative role

The Legislative Process First consultation Second consultation If fails Source: COM(93) 600, 43 with updates Collective route Traditional legislative route

Process Consultation –Prior to submitting proposals (1 st stage) –On the content of those proposals (2 nd stage) Social partners submit an opinion, measure follws usual legislative route OR Social partners inform Commission under Art. 138(4) of their desire to negotiate themselves under Art. 139 Consultation with whom? –Commission Communication of 1993

Criteria for those entitled to be consulted the associations must be cross-industry or relate to specific sectors or categories and be organized at European level; the associations must consist of organizations which are themselves ‘an integral and recognised part of Member State social partner structures’, have the capacity to negotiate agreements and be representative of all Member States ‘as far as possible’; and the associations must have adequate structures to ensure their effective participation in the consultation process

Who complies? general cross industry organizations (the trade union body ETUC, the employers’ organization Business for Europe and the public sector employers’ association CEEP); cross-industry organizations representing certain categories of workers or undertakings (UEAPME, CEC and Eurocadres); specific organizations (the association of European Chambers of Commerce and Industry, EUROCHAMBRES); sectoral organizations representing employers such as the Community of European Railways (CCFE), and the Association of European Airlines (AEA); European trade union organizations such as European Transport Workers’ Federation (ETF).

Negotiation ‘up to the social partners to decide who sits at the negotiating table’ (COM(98) 322) Commission will examine representativeness on case by case basis (COM(96)600)

Legislation adopted under Social Title Legislation - the Burden of Proof Directive - EWC Directive European wide collective bargaining - intersectoral - Parental Leave Directive 96/34 - Part-time Work Directive 97/81 - Fixed Term Work Directive 99/70 - sectoral - Seafarers Working Time Dir. 99/63 - Civil Aviation W.T Dir. 2000/79

Implementation ‘Decision’; in reality a Directive (Art. 139(2)) –3 Article Directive –Collective agreement is in the Annex Autonomy of social partners What if terms of agreement invalid? Comm. checks Role of the European Parliament; democratic deficit –Implementation by national legislation or collective agreements By national or regional collective agreements –Called autonomous agreements –Eg Telework Agreement 2002, work-related stress 2004 –Agreement on lifelong development of competences and qualifications implemented via OMC –What effect do they have in the national system?

Parental Leave Directive? Negotiated by intersectoral social partners –ETUC –CEEP –Business for Europe (ex UNICE) Implemented by Directive –3 Articles –Framework agreement in annex Birth of Euro-corporatism? Representativity question; monopoly of established social partners

Case T-135/96 UEAPME where there is no official involvement by the European Parliament ‘the principle of democracy on which the Union is founded requires... that the participation of the people be otherwise ensured, in this instance through the parties representative of management and labour who concluded the agreement which is endowed by the Council... with a legislative foundation at Community level.

UEAPME (cont’d) Two routes to democracy –Traditional route: Parliament’s involvement –Functional route: involvement of the social partners Legitimacy questions –Involvement of the social partners in areas other than those directly linked to employment rights –Unequal bargaining power; lack of traditional sanctions Response: increase sectoral social dialogue

Sectoral social dialogue COM(98)332; Dec. on the establishment of new sectoral dialogue committees Committees set up in all sectors submitting a a joint request and are sufficiently well organised with a meaningful European presence in line with established criteria of representativeness 30 sectors

Social dialogue in policy making Tool to achieve Luxembourg and Lisbon objectives; ‘Partnership for Change COM(2002)341 Role in modernising work organisation and equal opportunities Consultation by EMCO and the Social protection committee Tripartite social summit for growth and employment But possible tension: role in suppressing wage growth which sits unhappily with the traditional role of trade unions