1. Trade Unions Without Borders
ETUC seminar on cross border collective bargaining,
Montepulciano, 5-6 July
Natalja Preisa, LBAS

2. Context Challenges to collective bargaining:
reduction of coverage and number of collective agreements
shifting from sectorial to company level collective bargaining
Challenges caused by digitalisation and globalisation
shrinking trade union membership rates
difficulties to organise members (small and micro enterprises, virtual workplaces, online platforms, bogus self employment)

3. Context
In particular, challenges to bargain collectively are «felt» in the new Member States of the EU
Companies are moving their operational centres and production from old to new Member States.
Goods and services are produced at lower labour expenses but sold in «rich» countries
International companies often refuse to enter into collective bargaining in new Member States and pay minimum wages to local workers

4. At the heart of discussion: Solutions
Concluding cross border collective agreements?

5. Cross - border collective agreement
Collective agreement (CA) with a company that is binding on all enterprises in all countries where this company operates. For instance, Volkswagen agreement that sets minimum wages that have to be paid in Volkswagen factories in all the countries where it operates.

6. Solutions Different view points on cross border CA and solutions
UNIEiropa un IndustryAll:
are against cross border collective bargaining
consider that collective bargaining is a national matter
propose activities to help to strengthen capacity of national trade unions in the new Member States
consider member organising as the main element of capacity of trade unions and the first priority
support and will continue to support organising activities in the new Member States
will support national trade unions in contacting and bargaining with international companies

7. Solutions The New Member States of the EU (e.g. Poland, Bulgaria)
are strongly advocating for concluding cross border CA
point that only sectorial CA are reducing inequality
point at low employers unionisation rate = no parties to conclude sectoral collective agreements
international companies refuse to enter sectorial CA
operational command comes from the «mother» company, therefore, negotiations should be done and CA should be concluded with «mother» and not «daughter» company
E.g. CA with VW Germany and not with VW Czech Republic

8. Lastly…
Advice from Scandinavian trade unions to change financing model of trade unions in the new Member States:
more money from membership fees should come to national confederation and sectorial confederations from local trade unions to ensure capacity of confederations to coordinate collective bargaining and facilitate organising

9. Conclusions Trade Unions of the Baltic States
could make use of participating in this discussion and formulate their position
evaluate the share and impact of Scandinavian and Western Europe companies in the local markets
consider, whether cross border collective bargaining with international companies will improve labour standards and strengthen collective bargaining in the Baltics
ETUC can not support any side and start activities unless it is given a mandate by trade unions
Providing opinion during the ETUC Executive Committees gives the ETUC mandate

10. Thank you!