1. Belgian social partners and the crisis
Training seminar ACFTU-delegation
Turino, th September
Belgian social partners and the crisis

2. Outline
Belgium
Social dialogue in Belgium
The crisis and Belgium
Social dialogue and the crisis in Belgium

3. BELGIUM
Small country: 11 million people on a small surface
Part of the European Union (esp. Euro zone)
Federal structure:
federal government (competent for labor law, collective bargaining and social security);
Flanders
Wallonia
Brussels
Three regions with different social-economic structures and problems.

4. SOCIAL DIALOGUE IN BELGIUM
Separate structures and negotiations for private and public sector
Private sector:
Interprofessional (central) negotiations
Branches
Companies

5. Characteristics:
principle of free negotiations without political/state involvement
but: law on competitivity and employment (1996): evolution labor cost per hour in line with Germany, Netherlands and France; otherwise state intervention (wage norm)
biannual rhythm: , …
right to strike
but: periodical intervention of the civil courts
central and branch negotiations on a federal level
but: some pressure for regionalization
separate branch negotiations for blue and white collar workers

6. trade union pluralism: (only) ACV-CSC, FGTB-ABVV, CGSLB-ACLVB
but: for middle management: NCK/CNC or company unions
very high unionization: 65 % (53 % of the workers and 87 % of unemployed)
but: weaker for youngsters and in new branches/professions;
institutionalization:
interprofessional level: National Labor Council
branch level: “comités paritaires”
company level: trade union delegation + work councils + committees for security and safety (“protection and prevention”)
but: informal G10 (also for tripartite dialogue)

7. central and branch agreements can become generally binding for all employers (even the non-affiliated employers)
agreements cover all workers (not only trade union members)
but: some specific advantages for trade union members in most branches (trade union fee);
implication of social partners in political decision making
economic matters: Central Economic Council
social matters: National Labor Council (
involvement of social partners in social security
management of social security institutions
outsourcing to trade unions (unemployment benefits) and employers organizations (contributions, holiday pay, children allowance)

8. CRISIS Growth perspectives for 2009, compared with 2008
Realisations
Projections
World
3,1
-1,4
Advanced economies
0,8
-3,8
United States
1,1
-2,6
Eurozone
-4,8
Japan
-0,7
-6,0
United Kingdom
0,7
-4,2
Canada
0,4
-2,3

9. CRISIS Growth perspectives for 2009, compared with 2008
Realisations
Projections
Other economies
6,0
1,5
Africa
5,2
1,8
Central- and East-Europe
3,0
-5,0
Russia
5,6
-6,5
New growth countries
7,6
5,5
Of which China
9,0
7,5
Middle-East
2,0
Latin-America
4,2
-2,6

10. Belgium, compared with his neighbours
Industrial production Belgium – Flanders – Wallonia
2008
2009
Realisations
Projections
Belgium
1,2
-3,8
Flanders
1,1
-3,9
Wallonia
1,3
Brussels
Germany
-5,4
France
0,7
-3,0
Netherlands
2,1
-3,5

11. Utilization of production capacity Belgium – Flanders – Wallonia

13. Temporary unemployment

14. Unemployment

15. Total fiscal impulse for economic activity (% of GNP)

16. Evolutions in labour demand and offer
2006
2007
2008r
2009e
2010e
Offer (x 1000)
+53
+23
+44
+32
Demand (x 1000)
+61
+78
+72
-36
-80
p.m. Evolution (%)
in persons
1,4
1,8
1,6
-0,8
-1,8
in hours
1,5
2,0
1,2
-3,0
Unemployment -8
-55
-28
+68
+111
p.m. Unemployment rate
8,3
7,5
7,0
7,7
9,2
p.m. Employment rate
61,0
62,0
62,4
61,2
59,8

17. Youth unemployment Brussels – Flanders – Wallonia

18. Fiscal deficit 2006 2007 2008 2009e 2010e Belgium All authorities 0,3
-0,2
-1,2
-5,5
-6,0
Federal state
0,0
-1,1
-1,7
-3,7
-3,5
Social security
0,4
0,5
-1,0
Regions/
communities
0,2
-0,5
Lokale over- heid
-0,3
-0,1
Eurozone
-1,3
-0,6
-1,9
-5,3
-6,5

19. SOCIAL PARTNERS AND THE CRISIS
Medium 2008 – Oktober 2008
strong demand from our members for wage increases and government
high inflation = pressure on our system of automatic “indexation” of wages and social benefits
political instability (pressure from Flanders for more regional autonomy)
“wage handicap” with neighbor countries
fiscal constraints

20. Risks:
no central agreement
new political tensions (and instability)
worsening social climate: conflicts in branches and companies

21. But:
more moderate aspirations of workers (employment versus wage increases)
European recovery plan accepts high fiscal deficits for anticyclical policies
changing political priorities
awareness that a new central agreement is crucial:
for branch negociations
to avoid further erosion of confidence
recognition that supporting purchasing power (of employees and non-active people) is crucial to avoid further decline of growth perspectives

22. Central agreement in December 2008
preservation of our system of indexation
framework for (very) moderate wage increases (125 euro in euro in 2010)
reduction of total wage cost by a new government stimulus
improvement of social benefits, esp. unemployment benefits for the new unemployed = strengthening “automatic stabilizators”
more company intervention in the cost of transport from home to work (with public transport): from 60 % tot 75 %

23. Government response: Belgian recovery plan in December 2008
execution of central agreement
temporary extra for blue collar workers in temporary employment: + 10 % of former wage (75 % of former wage for heads of family; 70 % for the others)
intervention in energy costs
a set of measures for companies in difficulties with payment problems
more support (outplacement and training) for workers who lose their job in companies in difficulties (including temporary contracts and workers in temporary labor agencies

24. Branch negotiations January-July 2009
branch agreements in nearly all important branches
without a lot of social conflicts (except building industry)

25. Company level: looking for alternatives for collective dismissals.
Companies want to avoid:
recruitment problems after recovery
the cost of dismissals.
Limited options:
temporary unemployment for blue collar workers
disabuse of “career break” systems
Pressure of employers for temporary unemployment for white collar workers (from February 2009 on)
Trade unions: OK, but not isolated from the global discussion of unification

26. Results no central agreement new law, with three new schemes:
no central agreement
new law, with three new schemes:
temporary reduction of working time
new type of career break (part time)
temporary unemployment for white collar workers
until the end of 2009: only prolongation (until medium 2009 if there is a substantial progress in harmonization of blue and white collar workers)
unknown factor: strategic or crisis policies of (foreign) headquarters (and the risk that other countries try to export their problems)

27. New discussion : exit strategy
Who will pay the price for returning to fiscal equilibriums?
How do we restore economic growth?
Which model of economic growth?
How will we prepare for a ageing society? (after all those years lost)
Until know: lack of consensus!

28. Final comments
A crisis can disturb negotiations, but can also facilitate them
Negotiated solutions are better solutions
Coping wit the tension between short term demands and long term needs
Necessity to build international solidarity between workers
From crisis management to proactive negotiations