1. Protection of labour rights in times of crisis
Protection of labour rights in times of crisis. The position of trade unions in the EU
Beryl ter Haar
22 December 2016

2. Crisis and trade unions
EU legal position of social partners
Economic and financial measures and trade unions
New developments
Transnational company agreements
OECD NCP

3. 1. EU legal position of social partners
Article 27 and 28 EU Charter Fundamental Rights
Article 9 TFEU horizontal social clause
Article 152 TFEU recognition of role social partners at EU Level
Article 154/55 TFEU social dialogue  contractual agreements
But Article 153(5) TFEU exclusion EU competence to regulate right to associate (including collective bargaining) and right to strike
However indirectly through directives on:
Collective redundancies - Occupational health and safety
Information and consultation etc.

4. 1. EU legal position of social partners
EU soft law
European employment strategy
Wage development - Involvement NAPs
Wider context Europe 2020 Strategy
= political strategy for the EU
to become a smart, sustainable and inclusive economy
Economic approach
Internal market <– economic growth <– employment <– social policy
Economic & financial monitoring  European Semester
Country specific recommendations

5. 2. Economic and financial measures and trade unions
Context crisis within the Eurozone
Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. 
Regular mechanism of monetary policy no option
IMF-approach = export-led growth sustained by currency depreciation
Different levels of impact of the crisis
Different reasons for the crisis

6. 2. Economic and financial measures and trade unions
Example 1. Greece
Problem
Systemic flaws of the economy including its weak productive capacity, the vast informal economy, tax eva- sion and inadequate technological transformation and lack of innovation in industry
Reform measures imposed by ECB & IMF
internal devaluation/deflation policy is imposed, with spearhead the depreciation of labour by suppressing labour costs and deregulation/ flexibilisation of the labour market, involving direct wage cuts and restructuring of labour market institutions
Source: Friedrich Ebert Stiftung – Policy analysis on Greece, 2012

7. 2. Economic and financial measures and trade unions
Example 2. Spain
Problem
Various and structural which grew over a period of time and resulted in a particularly vulnerable and structurally weak economy and which caused the real estate buble to burst
Reform measures imposed by ECB & IMF
Wage cuts in the public sector, frozen pensions, the raising of the pensionable age from 65 to 67, cuts in public investment and development aid and prolongations of working time were supposed to halt the indebtedness of the state budget and restore the trust of the international financial markets in the Spanish economy.
a labour market reform that made dismissal easier and cheaper and promoted private job placement and temporary work agencies.
Downward spiral
Source Friedrich Ebert Stiftung – Study August 2013

8. 2. Economic and financial measures and trade unions
More general conclusion:
! ETUI Report Collective Social Rights under the strain of monetary union
Monetary measures are an infringement
of the fundamental right to collective bargaining!

9. 2. Economic and financial measures and trade unions
Social Policy
Respects differences in member states
Respects right to associate, including collective bargaining and right to strike
Respects autonomy of social partners
 no debates on f.i. wage developments
 Wage too excluded from EU competence! (Art. 153(5) TFEU)
Ecofin policy
Political strategy Europe 2020 – no competence limitations
Monetary policies – extensive application
Soft recommendations with hard fines
Monetary reasons for wage developments
No account of social rights!

10. 2. Economic and financial measures and trade unions
More general trends in most EU Member States
Ageing of trade unions (for old, white man)
<->
Harsh contrast with labour market problems: youth and women in precarious jobs
Decrease of sectoral collective labour agreements – increase of company-level agreements

11. 3. New developments a. Transnational company agreements
Management European scale company
European-level trade union (often also EWC)
Subjects include:
ILO core labour standards;
restructuring company;
OH&S;
Decent/living wage

12. 3. New developments b. OECD National Contact Points
OECD Guidelines for NMEs
Include ILO core labour standards
Addresses MNEs
Endorsment by member state
NCP
=mediator
= outcome resolution
= goal reach agreement to solve infringing conduct
= effect: naming and shaming

13. Thank you for your attention!
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