1. ACTRAV Symposium on Collective Bargaining Geneva, October 2009
Gabriele Sterkel
Modalities of collective bargaining … experiences with decentraliation in Germany
ACTRAV Symposium on Collective Bargaining
Geneva, October 2009
Gabriele Sterkel

2. overview Decentralization and the crisis of CB in Germany
Economic effects … changing impact on wages
Background and causes
Trade union practices and strategies
Towards re-stabilization of cb system?
Gabriele Sterkel

3. 3 dimensions of the crisis of CB
Erosion
Coverage and effectiveness decreasing
Decentralization
Movemet from sector/national to plant level
Diversity of Standards ... according to plant productivity
Differenciation
(Segment-/ Fragmentation)
Gabriele Sterkel

4. Coverage of CA in Germany in % of workers
Quelle: IAB/ WSI in der HBS

5. Coverage of CA 2005/2006 in Europe in % of workers
Quelle: WSI in der HBS
Gabriele Sterkel

6. Forms and extend of Decentralization
2 types: same standards/ worse standards
Process: "controlled" / "wild"
Enterprise level agreements (same/controlled)
Increase : – now:
Opening clauses (worse/ controlled)
Nearly every sector, 75% used (different surveys & figures)
Different modalities in metal-, chemical-, service sector
"alliances for jobs" on plant level (worse/ wild? controlled?)
In ¼ of all enterprises; nearly all big enterprises
Concessions, deal: worse standards for job security
Gabriele Sterkel

7. Use of opening clauses: What standards?
Gabriele Sterkel

8. Forms of Differenciation (Segment-/ Fragmentation)
Different standards for business lines
... For certain workers groups of workers
Growing problems with small competing "trade unions" (upward + downward competition)
Trend to cheapen services
Gabriele Sterkel

9. overview Decentralization and the crisis of CB in Germany
Economic effects … changing impact on wages
Loss of trade unions' role of wealth distribuion
Decrease of real wages
Growing low wage sector
Background … reasons
Offensive defensive?
Gabriele Sterkel

10. Collectively bargained and real wages in Germany
Quelle: Statistisches Bundesamt/ WSI in der HBS
Gabriele Sterkel

11. Collectively bargained and real wages in EMU (development every year and in %)
Quelle: EZB/ WSI in der HBS
Gabriele Sterkel

12. Development of real wages 2000-2008
Gabriele Sterkel

13. Capital income and gross wages
Berechnungen Norbert Reuter, Bereich Wirtschaftspolitik

14. Bilance of distribution old EU members (development of wages in comparison with productivity + inflation)
Quelle: WSI in der HBS
Gabriele Sterkel

15. Growing wage gap between high and low earnings
Gabriele Sterkel

16. Low wage share (2005 in % of all employees)
Quelle: Russel Foundation/ WSI in der HBS
Gabriele Sterkel

17. Background and causes Economy National labour market policy
Export orientation
Reorganization, cost cutting, shareholder value, outsourcing, privatization ...
National labour market policy
Social legislation (Hartz IV)
EU service directive
Ideological neoliberal offensive
No national minimum wage
Employers leave their organizations
no cb membership
Gabriele Sterkel

18. Trade union strategies + practice with decentralization
Different opinions + ways in german trade unions, but all want to ...
limit and controll decentralization
Transparency, influence on conditions
"offensive defensive" + to use the chances
Trade union comes closer to plant level
Activation, integration of members + organisation of new ones
Gabriele Sterkel

19. Towards re-stabilization of the CB system?
Plant level power + organising helpful, but …
CB is not sufficient for stabilisation, other factors:
state:
Better legal possibilities for extention of CA and make them generally binding
More social security
Statutory minimum wage
campaign for wage floor + living wages
At least 60% of national average wage
Gabriele Sterkel

20. Thank you for listening!
Statutory minimum
wages
Thank you for listening!
Gabriele Sterkel