Session 3: Unions, Freedom and Democracy WHAT SHOULD BE THE FUTURE OF THE ETUC

1. Session 3: Unions, Freedom and DemocracyWHAT SHOULD BE THE FUTURE OF THE ETUC Plamen Dimitrov, President of CITUB Summer school Manchester 9-14 July 2012

2. MAIN THEMES FOR DISCUSSION • Is the ETUC out of touch with the political mood of European workers? • Has ‘social partnership’ run out of steam? • What should be the role and policies of the ETUC?

3. CHANGING CONTEXT REQUIRES ADEQUATE RESPONSES ETUC is acting in changing context: • crisis, austerity measures, massive downwards pressures on wages and working conditions • deregulatory measures - greater flexibility • attacks on social rights, trade unions and achievements from the past, including social dialogue and collective bargaining • new governance - increased tension between EU institutions and social partners, powershift to the disadvantage of unions In this context there is a need to change/adapt the trade union priorities, strategies and tools at national and European level.

4. Is the ETUC out of touch with the political mood of European workers? • mounting political tensions • growing distance between European policymakers and the labour movement and European citizens provoke • conflictual responses, protests and strikes in EU level and in member-states. The ETUC mobilised its members throughout Europe (‘enough is enough’) • people are expressing their anger as the prevailingsettlements prioritise business andcapitalneeds over those of labour • TU members want alternative to neo-liberalism (though differently viewed) - radicalisation and boom of extreme right and left movements, populist nationalism, - socialmovements are emerging to protest againstinjustice and insecurity - some indicators of growing anti-capitalist mood (radical proposals for a change of policy regime).

5. Is the ETUC out of touch with the political mood of European workers? (continued) Establishing cross boarder solidarity and coordination of political initiatives relevant to the political mood and attitudes of the heterogeneous European wide trade union movement is difficult task The pending questions are: • How ETUC could be in touch with the political mood of the diverse European trade union membership? and • Is there a need for radical political solutions and a new sense of political direction for the international trade union movement?

6. Has ‘social partnership’ run out of steam? • What future of social partnership (rumors of the death of social dialogue are greatly exaggerated) • Based in Treaty of Maastrichtand Lisbon Treaty - aims to strengthen the social dimension of European integration - essential component of the European social model - part of democratic governanceof Europe

7. Has ‘social partnership’ run out of steam? (continued) Why Social Dialogue matters in times of crisis? • Significant factor in containing negative consequences of crisis • In most of the EU member states - tripartite institutions, ad-hoc bodies, informal meetings, collective bargaining • European social dialogue is also developing at EU cross-sector and sector level but no tangible results. • Supporting and hindering factors (to be discussed) The European social partnership should be developed and strengthened(process and outcome) Important are commitment and political will of the international institutions that are entitled to take decisions. The challenge: Rethink existing measures and tools (bodies); preparing for the exit from crisis – new TU agenda for the social partnership?

8. What should be the role and policies of the ETUC? The European Trade Union Confederation is facing major challenges and great expectations of the members • ETUC response to EU policy-making - alternative program of policies - set of regulative instruments: hard law (Council Directives), soft law instruments and sectoral agreements.  - actions respecting the international norms (ILO Conventions) and - use of the classical instrument of conflict – and activism. • Athens congress and Manifesto – 2011 - demanded a change of course - for a “New Social and Green Deal • Social compact for Europe – June 2012- calls on the EU to focus on policies improving living and working conditions, quality employment, fair wages, equal treatment, effective social dialogue, trade union and other human rights, quality public services, social protection, industrial policy favouring a just transition towards a sustainable development model.

9. What should be the role and policies of the ETUC?(continued) Specific trade union priorities of ETUC should be: • Reinforced bargaining policy coordination • offensive for a European MW policy and against the precarization of jobs • Strengthening strike capacities in support of European demands • Improvement of the European framework for transnational collective bargaining • Support for development of the information and consultation rights, including the EWC • Improved linkage between EU and national levels (ETUC and its sector and national affiliates) • Coalition-building (alliances) with NGOs and social movements

10. What should be the role and policies of the ETUC?(continued) Improvement of linkage between ETUC and its national affiliates ESD relies on national social partners for the mandate to engage in European-level negotiations and, in the case of autonomous agreements, in its follow up implementation • In this respect there is a need for: • Better Integration of trade unions affiliated to ETUC and support for their capacity building • Improved Information and communication with national affiliates • New scope of the dialogue, focus on new sectors and agreements on key issues, notably social security systems, precarious employment, etc.

11. Improvement of linkage between ETUC and its national affiliates continued • Unions must be fully involved in the processes related to the new economic governance and Europe 2020 implementation • The national dialogue must include also the European dimension – trade unions must be informed about positions of the national governments in the EU institutions • Support to affiliates for the transposition and effective implementation at national level of the European social partners agreements • Debates on the European trade union strategy aiming at - trade union renewal and mobilisation Further steps What can be improved on European level and what on national level?

12. Discussion What scenarios are there for European trade unionism in the future? • to adhere to the existing situation and to forgo protest (loyalty) - that is, a strategy pursued when no other solutions can be envisaged at the time; • to express dissatisfaction, to protest and to demand improvements (voice); • or to surrender (exit), when one knows which alternatives to pursue. (Report ‘European Social Dialogue: State of Play and Prospects’, prepared by the European Social Observatory in 2011)

14. Alternative policy mix as a key response for recovery

15. Impact of crisis on social dialogue • dismissals, increase of the retirement age, restrictive wage policies • trend of asymmetry between the economic and social dimension of the policy • limitation of the role and scope of social dialogue • growth of social tension and dissatisfaction

16. Uneven and conflicting tripartite social dialogue • Negotiations and exchanges between the social partners and government – difficult, focused more on the process of social dialogue, than on its outcomes - government breaches already approved agreements • strikes and protests • Two anti-crisis programmes agreed by the initiative and under the pressure of social partners, namely trade unions

17. Uneven and conflicting tripartite social dialogue (continued) • Renewal of social dialogue by the new government (mid 2009) • Lack of consistent policy, onlyfew examples of successful dialogue • Agreement on pension reform - 2010 (compromise and strike) Violated by the government in 2011 and an increase of the retirement age was unilaterally imposed The message sent to the trade unions is clear: You may strike, if you like, but it won’t really matter. Protest demonstration, trade unions withdrew the National Council for Tripartite Cooperation

18. Uneven and conflicting tripartite social dialogue (continued) • the minimum wage, the salaries in the budget sector, social benefits and the pensions remained ‘frozen’ in 2010 and in 2011 • New public administration pay system • partial success - the minimum wage was increased in 2011 and in mid 2012 • the overall assessment of SD is negative, there is a real danger of further undermining of the social dialogue • tripartite social dialogue in Bulgaria is “at stake”

19. Bipartite social dialogue – more successful • Joint anti-crisis packages agreed • autonomous national agreements for teleworking and homeworking + amendments to the Labour code - providing both more flexibility and more security in employment relations – 2010 • joint proposals on pension reform, development of social dialogue and access to affordable credit -2012 • social dialogue at sector/ branch level continues to develop and in some branches even better provisions are agreed. • for the first time ever extended 4 branch collective agreements

20. Alternative policy mix for recovery Global Jobs Pact Country Scan’ aims to help the government and social partners to formulate mutually accepted national recovery policies • more balanced growth, driven by supply and the demand • More funds allocated for labour market policies (VET, young, Roma) • Improvement of social protection system • Wage policy – to link wages and productivity, enhanced role of collective bargaining • application of labour standards • Further development of social dialogue for policy setting and monitoring

21. ITUC/KNSB/Podkrepa Conference ‘Jobs and Incomes – A better deal for Bulgaria’ – March 2012 The participants propose a policy mix for transition from recovery to strong, sustainable and balanced growth in four main areas: • macroeconomic policy; • industrial policy; • labour market, wages and collective bargaining; • pensions, social protection and social dialogue.

22. Macroeconomic policy • austerity must be shared equitably, with the twin goals of equity and fairness and burden sharing. • fiscal expansion and investment to boost the economyand human potential • long-term policies supporting education, innovation and infrastructure • Increased access to credit • Reduction of the high interest rates • Tax policy must be reconsidered - to move away from a flat tax system and to introduce a tax-free threshold for lower paid workers.

23. Industrial policy • to modernise infrastructure • support for skills and mobility of the labour force • to diversity the drivers of growth • to develop industries with higher added value and higher productivity, requiring more skills • promotion of export – strategy, incentives • development of public private partnership • increasing investments in research and innovation • development of business friendly environment • Investments in transport, especially railways, tourism, pharmaceuticals, food and the green economy, electronics, ICT

24. Labour market and wage policy Labour market and wage policy is a key • Bulgaria needs a high skill, high productivity economy • The main driver of economic growth is new and quality employment • improvement of qualification and vocational training, increasing labour force adaptability to the changing labour market • Unemployment must be tackled by extending training and apprenticeships, part-time working, workplace rotation, job sharing and job centres • The restrictive wage policy has not helped preserve jobs • The compensation of Bulgarian employees, is low (at 36.5% of GDP compared to a 49.3% EU average) • To establish a strong wage/productivity link • In short term, higher wages will have the immediate benefit of stimulating higher consumption and income-led growth.

25. Pensions, Social Protection and Social Dialogue • Bulgaria needs a strong social protection floor • The level of poverty in Bulgaria is 40% • increased social assistance, bringing all people above the poverty line • health care for all citizens • attention to old age pensions • renewal of the 2010 agreement on pension reform • financing of the pension system has to be revitalised.

26. Pensions, Social Protection and Social Dialogue (continued) • need for a clear social dimension to government policy • enhanced and improved social dialogue • all agreements must be respected by all partners if they are to be effective • Trust between government and social partners should be re-established • National Sustainable Development Council to be established