Decentralisation of collective barganing and TU revitalisation in Germany Thomas Haipeter & Steffen Lehndorff Institut Arbeit und Qualifikation Universität.

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Decentralisation of collective barganing and TU revitalisation in Germany

Thomas Haipeter & Steffen LehndorffInstitut Arbeit und QualifikationUniversität Duisburg-Essen

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Net TU density Germany 1980-2011*

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Collective bargaining coverage: Sector level agreements and total coverage incl. firm level, W and E Germany (in % of employees)

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C.b. coverage by income quintiles (in %)

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Real wages and actual wages (per capita, 2000=100)

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Real net wages * by income deciles, 2000 - 2009

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Upheaval of IR in Germany

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Employment and pay before and after „Hartz reforms“

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Real wages per capita (1999-2013)

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99

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

-5

0

5

10

15

20

25

30

35

France

Germany

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Metalworking Industry and Hospitals

Two Case Studies

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Metalworking Industry

Context: Globalisation, Relocation, Outsourcing, financial restructuring…

Organised Decentralisation via Opening Clauses:1993: Hardship clauses (Eastern Germany)1995: Recapitalisation clauses (Western Germany)2004: Agreement of Pforzheim

Coordination rules by union: Obligation to report negotiations to headquarters

and acceptance of agreements by headquarters Negotiations controlled by the regional

administration level Organisation of membership participation obligatory

(collective bargaining commissions, ballots, continuous information)

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Metalworking IndustryConcessions by Enterprises (in % of all derogations, M&E)

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Metalworking Industry

Plant level orientied collective bargaining: Relocation/Outsourcing/Competition – Threads

by Management Problem of legitimacy for union/works councils Membership Strategy:

Priviliged information Priviliged participation in decision making Membership campaign (sometimes)

Positive membership effects Concessions by management (safeguarding of

employment; investments)

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Hospitals

Context: Marketisation of hospitals by Financing:

Retreat of federal government from investments in favour of regional governments – Decline of public investments

Profit and loss statements From original/real costs to case-based lump sum

financing (paid by the public health insurance funds) Privatisation:

Material: Sale of hospitals to private enterprises Organisational: Conversion of public hospitals in

private legal forms Tasks/Activities: Outsourcing of services (laundry,

canteen, car pools…)

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HospitalsOwnership Structure

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1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

0

200

400

600

800

1 000

1 200

Public HospitalsNon-Profitable HospitalsPrivate Hospitals

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HospitalsCollective Bargaining Strategies of Hospitals

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Private Hospitals

Non-Profit Hospitals

Public Hospitals

Opting out of collective bargaining (TVÖD)

Plant or company level agreements

Outsourcing of services

Decoupling of wage standards from TVÖD

Outsourcing of services

Decoupling of wage standards from TVÖD

Derogations from collective bargaining norms

Outsourcing of services

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Hospitals

Decentralisation of Collective Bargaining / Fragmentation of Labour Standards

Three strategies union: Collective bargaining agreements for transitions plus

derogations (restrictive) Public campaigns against privatisation ’Conditional‘ collective bargaining strategy

Conditional bargaining: Condition: membership and organisational density Survey among members: CBA? Topics and demands? Membership meetings, election of cb committee Survey among members Acceptance of agreement by union headquarter

Union‘s role: Professional monitoring and support (driving force members) - No service without members IAQ/IAT 2014

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Conclusions

Different Forms of Decentralisation: Organised decentralisation by opening clauses Fragmentation by privatisation and opting out

Common challenges for unions: Preservation of collective bargaining norms Increase of power and organisational density on

plant level Solutions:

Control of derogations by formal rules and centralised coordination

Membership participation and orientiation in local collective bargaining

Opportunities for SME: Pro-active approach of works councils and unions to

strengthen competitiveness Orientation on high road strategies (innovation and

quality)IAQ/IAT 2014