EUCOBAN Survey Steel Industry

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22nd/23rd October 2012

industriAll Sectoral Steel Committee

EUCOBAN Survey Steel Industry

Collective Agreements in the European Steel Industry

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2VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink

EUCOBAN SurveySteel Industry

General trends in european collective bargaining policy

Current collective agreements in European steel industry

Summary and Outlook

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Summary and Outlook

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General trends in European Collective Bargaining Policy (1)

2010 Economic recovery in most of the European countries after the deep crisis 2008/09.

Cooling down of economic growth in 2011, and expectation of a recession 2012/13.

Increase of unemployment rate (EU-27average 2011%: 9.7; 2012: 10.3%)

Decrease of real wages in Europe: EU-27 average 2011: -0.9%; 2012: -0,5 %)

Deep negative impact of the Austerity Package on wages and economic growth.

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General trends

Development of the real wages in Europe in 2012

(in % compared to the prior year).

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Summary and Outlook

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Crude Steel Production in Europein Mio. tons (datas rounded)

Source: EUROFER*) Trend: Exchange rate Jan-Aug 2012/2011

2007 2008 2009 2010 2011 % share of EU 2011 trend 2012/2011* in %EU-27 210,0 198,1 139,3 172,5 176,9 100 -5,0

1 Germany 48,5 45,8 32,7 43,8 44,3 25,0 -5,32 Italy 31,6 30,6 19,8 25,8 28,7 16,2 -1,93 France 19,3 17,9 12,8 15,4 15,8 8,9 1,64 Spain 19,0 18,6 14,3 16,3 15,5 8,8 -12,35 United Kingdom 14,3 13,5 10,1 9,7 9,5 5,4 -2,46 Poland 10,6 9,7 7,1 8,0 8,8 5,0 2,47 Belgium 10,7 10,7 5,6 8,0 8,0 4,5 -14,98 Austria 7,6 7,6 5,7 7,2 7,5 4,2 -3,69 Netherlands 7,4 6,9 5,2 6,7 6,9 3,9 -0,5

10 Czech Republic 7,1 6,4 4,6 5,2 5,6 3,2 -8,311 Sweden 5,6 5,2 2,8 4,8 4,8 2,7 -12,612 Slovakia 5,1 4,5 3,7 4,6 4,2 2,4 5,713 Finland 4,4 4,4 3,1 4,0 4,0 2,3 -3,814 Romania 6,1 4,9 2,7 3,6 3,6 2,1 -7,515 Luxembourg 2,9 2,6 2,1 2,5 2,5 1,4 -20,716 Greece 2,6 2,5 2,0 1,8 1,9 1,1 -33,117 Hungary 2,2 2,1 1,4 1,7 1,7 1,0 -5,818 Portugal 1,8 1,6 1,6 1,4 1,4 0,8 2,419 Bulgaria 1,9 1,3 0,7 0,7 0,8 0,5 -21,420 Slovenia 0,6 0,6 0,4 0,6 0,7 0,4 4,421 Latvia 0,7 0,6 0,7 0,7 0,6 0,3 38,4

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Summary: Agreements 2010/beginning 2011

Look back to the main results of last year‘s questionnaire

Most of the agreements only with slight increase of wages.

Long duration of agreements.

More qualitative elements (e.g. job security, TWA, qualification).

Difficult bargaining position for trade unions.

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EUCOBAN Survey Steel Industry

The results of the 2012 questionnare

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Steel agreement in Germany

Collective bargaining at sectoral level.

Agreement signed end of November 2011 for North-West and East Germany and End of January 2012 for the Saarland. Approx. 90,000 steel (blue and white collar) workers are covered.

North-West and East Germany: 3.8 % wage increase from 01. December 2011 till 28. February 2013, November 2011 is a „zero-month“ (16 months duration).

Saarland: 3.8 % wage increase from 01. March 2012 till 31. May 2013. Lump sum of 160€ for February 2012. (16 months duration).

Guarantee of unlimited employment of apprentices after completion of their apprenticeships. (Duration till 31. January 2016).

Agreement on partial retirement is prolonged till 28. February 2013 (NW, E-Ger.), till 31. May 2013 (Saarland).

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Steel agreement in France

Agreements at sectoral and company level.

Agreement signed at 01. March 2012 about the minimum wage table and modifications in the statutes of the collective agreement.

Unlimited collective agreement.

Wage increase: 2.3%.

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Steel Agreement in the UK

CB at company level in TATA Steel, Port Talbot Texturing Technology Ldt with approx. 20,000 (blue and white collar) workers.

Duration 01.04.2011 till 01.04.2012 (TATA), 01.04.2012 till 2013 (Port Talbot) (12 months).

Demands:

Wage increase 3.5%

Minimum earning levels increased form 1,225.10 to 1,275 Pounds per calendar month.

Ongoing negotiations in 2012 for wages, lump sums, pension schemes.

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Steel agreement in Poland

CB at company level in ArcelorMittal , Huta Labedy, BGH, Huta Pokój, Sievierstallat, CMC, ISD Huta Czestochowa, Celsa Huta Ostrowioec including approx. 15,000 workers.

No new agreement in 2012.

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Agreement in Austria covering several industrial sectors

Agreement for the metal and mining industry covering in total 165,000 (blue and white collar) workers. Among them 13,000 workers of the steel industry.

The agreement was signed 18. Oktober 2011.

Duration: 01.11.2011 till 31.10.2012 (12 months).

Wage increase: 4.4 % till 4.0%.

The current collective bagaining round still continues. Employers want to split up the joint collective agreement into several sector agreements.

The new agreement on the metal industry was signed 19.10.2012, the negotiations for the mining and steel industry still continue.

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Steel agreement in the Netherlands

Agreement for TATA Steel is still valid till 31. March 2013.

Duration 01. April 2011 till 31. March 2013 (24 months). 9,500 (blue and white collar) workers are covered.

Wage increase 3.75 %, 300€ lump sum.

No redundancies till 01. October 2013.

But approx. 1,000 workplaces will be eliminated in a period of 4 years. Commitment of investments.

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Steel agreement in Czech Republic

Agreements at sectoral level for: Arcelor Mittal Ostrava, Trinecke zelezárny, EVRAZ Vítkovice Steel, Zelezárny Veselí, ZDB GROUP, Hute POLDI, TSR, Moravské zelezárny.

19,350 (white and blue collar) workers are covered

Agreements signed between December 2011 and March 2012.

Majority of agreements are valid 1 till 3 years.

Average of wage increase: 3% (88% of agreements stipulate wage increase.

50% of the agreements introduce a 13. wage; 13% a 14. wage.

88% of agreements: 37,5 hours/week.

Improvement of training and qualification.

Principles of precarious employment reduction control.

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Agreement of several industrial sectors

including steel in Sweden

Cross sectoral agreement covering Steel, Mining, Paper, technical and metal, chemical.

Duration for the steel sector 01.02.2012 till 31.03.2013 (14 months).

Wage increase for steel: 3 %.

Sepearate negotiations on the issues of training and precarious work in September 2012.

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Steel Agreement in Slovakia

Agreement at company level covering US Steel Kosice, US Steel Labortest Kosice and US Steel SBS Kosice with totally 11,467 (blue and white collar) workers.

Duration: 01.05.2012 till 31.12.2014 (32 months).

Wage increase 3.9 %.

Guaranteed average lump sum 990€.

Commitment of employer to not apply collective redundancies (except when employee refuses 3 adequate job offers).

Working time reduction in steps for workers in non stop operations till 33,5 hours per week in 2014 . 35,5 hours per week for the rest of the workers.

Improvment of regulations on training and qualification.

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Steel Agreement in Hungary

Wage and social agreements for 2012.

Duration 01.01.2012 – 31.02.2013; 12,000 (blue and white collar) workers are covered.

Wage increase: 2.1%

Qualitative regulations about full-time employment, training and qualification, reduction of temporary workers.

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Steel agreement in Bulgaria

Negotiations at sectoral and company level.

New company agreement, signed at 01.04.2012 for Stomana Industry S.A., 771 (blue and white collar) workers covered.

Duration: 01.04.2012 till 31.12.2013 – 21 months.

Increase of the minimum wage in the company from 150 € to 200 €.

Increase of night shift allowance about 10%.

Increase of the value of free protective food about 25%.

Lump sum about 150 € for summer holidays.

Improved additional regulations on: dismissal protection for trade union members, qualification and training, restriction on temporary employment contracts (after one temporary contract the next contract must be permanent), anti-discrimination.

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Summary and Outlook

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Summary: Tendency of the current agreements

Statistics

12 replies – 57%

Bargaining level: 7 company, 1 sectoral, 2 embedded in cross-sectoral.

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Summary: Tendency of the current agreements

Only in few cases higher increases of wages than in the prior questionnaire period (Germany, Austria, Sweden).

Most of the agreements have a duration longer than 15 months. That relativates wage increase.

Qualitative elements (e.g. job security, TWA, qualification).

Working time reduction in Czech Republic and Slovakia.

Still difficult bargaining position for trade unions due to the ongoing economic and financial market crisis.

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Next CB campaings in steel

Czech Republic: September 2012 till March 2013.

Germany: Negotiations March 2013.

Netherlands: Beginning 2013.

Sweden: Beginning 2013.

France: Beginning of 2013.

Austria: Autumn of 2013.

Bulgaria: 01. November 2013 (company level).

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Demands in the next CB campaings in steel

Main demands mentioned in the replies

Wage increase (Tariffs, bonuses, premiums, shift allowances, etc.)

Job security, employment , decent work

Demographic situation

Special demands mentioned in the replies

Recent amendments of Hungarian Labour Code

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Apparent Steel Consumption in EU-27

Rates of change of steel in %

Forecasts

Source: EUROFER, Report July 2012

FB TP, Ressort Europa Vorstand

VB 04/FB Tarifpolitik/Ressort Europa

Uwe Fink, Tel.: 069/6693-2151, [email protected]

Thanks for your attention!

EUCOBAN Survey Steel Industry

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