Regulating of Employment Relations in Europe

1. Regulating of Employment Relations in Europe Grigor Gradev ETUI ITC Course – 17 March 2010, Torino

2. What is at the centre of problem that needs to be regulated?

3. Theoretical perspectives - Unitary • Harmony of interests – company to prosper – basis for cooperation • Conflict – externally introduced • TUs – agents of conflict – compete for loyalty of employees • Management knows best – HRM techniques turns into normal practice Probably most common situation in Eastern Europe

4. Pluralist perspective • Conflict is natural – e.g. inevitable - competing interests of employers and employees – need to be regulated • Trade unions – “managers of discontent” - legitimate representative of employee interests and have the right to challenge management prerogative • State is an impartial protector of the public interest • Dominant approach in Western Europe after WWII weakened with advent of globalisation

5. Radical/Marxist Perspective • Conflict – product of systemic collision - aspect of class conflict in wider society • Unions – an outcome of the power imbalance inherent in the employment relationship • The State actively seeks to protect the interests of capital

6. Employment relations • Focus: • Predominantly individual, fixing employer/employee exchange at workplace level – wages, working time, leave, social benefits, other • Primary domain of HRM in current times • Key institutions: managerial prerogative/ corporate governance/ HRM, collective bargaining, employee information and consultation, employee involvement in management/ownership, industrial action, dispute setlement • Major actors and factors: managers, employees, trade unions, I&C structures, participatory/consultative bodies, shareholders, financial institutions, production technologies, work organisation, labour inspection, local authorities and society, markets, (labour) courts.

7. Industrial Relations • Initially conceptualised as a sub-system, anchored in the political, legal, economic, social, cultural, …, systems of a country: • Collective nature • Key institutions: law/s, state policy, social dialogue/collective bargaining, industrial action, dispute settlement • Major actors: government/parliament, trade unions, employer associations, labour inspection, courts, A&C services. • Industrial and Employee relations in constant interaction and shaping each other

8. Policies and strategies • Fordism • Post-fordism • Lean management • EU policies: • Employability - Flexicurity • Social dialogue • Information and consultation/EWCs • OSH • Non-discrimination

12. EU policies • Employability • Flexicurity can be defined, more precisely, as a policy strategy to enhance, at the same time and in a deliberate way, the flexibility of labour markets, work organisations and labour relations on the one hand, and security – employment security and income security – on the other. • The flexicurity concept takes us from a job security mentality to an employment or employability security mentality. It is a policy approach geared less towards the protection of jobs, and more towards the protection of people. • Flexicurity involves the deliberate combination of flexible and reliable contractual arrangements, comprehensive lifelong learning strategies, effective active labour market policies, and modern, adequate and sustainable social protection systems. • Both shift the risk from company/society to the individual/household.

13. Social Dialogue • “A continuous interaction between the social partners with the aim of reaching agreement on the control of certain economic and social variables” (EC Industrial Relations Report 2000) • Features: • Process, based on consensual approach, constant adjustment • Balance between economic and social interests • The state normally is not a direct participant in the process ILO definition – differences and complimentarity

14. The Social Dialogue at EU level under Art. 138 Commission consultation on possible direction Social Partners proposal in the social policy field opinion if Community actionis desirable consultation on the content of the envisaged proposal where appropriate, Commission follow-up opinion or recommendation negotiation nine months, unless extended where appropriate, Commission follow-up Article 138 agreement

15. Social Dialogue at EU level: structures EMPLOYERS TRADE UNIONS Interprofessionnal Social Dialogue Committee Thematic working groups 36Sectoral Social Dialogue Committees

16. Social Dialogue – national level • 27 national systems in EU • 4 (5) main types: • UK • Western Continental (+Nordic) • State capitalist (southern) • Eastern European (EU + Candidates) • Eastern European - Other

17. Information and consultation • Community legal framework to establish more binding rules • Defines the terms "undertakings", "employer", "employees’ representatives", "information" and "consultation". • States may authorise the social partners to define freely, through agreement, the procedures for implementing the employee information and consultation requirements • Areas: • economic, financial and strategic developments; • structure and foreseeable development of employment and related measures; • decisions likely to lead to substantial changes in work organisation or contractual relations.

18. Information and consultation • option of limiting the information and consultation obligations of undertakings with fewer than 50 or 20 employees • Confidentiality arrangements: • States responsible for ensuring compliance • Serious breaches of the obligations: • total absence of information and/or consultation of the employees' representatives prior to a decision being taken or the public announcement of such decision; • withholding of important information or provision of inaccurate information rendering ineffective the exercise of the right In the event of a serious breach with direct and immediate consequences in terms of substantial change or termination of employment contracts or relationships, the decisions taken have no legal effect

19. EWCs • 1000 + 150 employees in two countries • Special Negotiating Body – agreement • 833 EWC operating

20. Collective redundancies - Council Directive 98/59/EC • Requires employers to consult staff representatives in the case of collective redundancies with a view to reaching an agreement. • Information to be provided by the employer: • the reasons; • the period during which redundancies are to be effected; • the number and category of workers normally employed; • the number to be made redundant; • the criteria used to select those workers to be made redundant; • the method used to calculate compensation (where applicable).

21. Collective redundancies • Procedure for collective redundancies • The employer notifies the competent public authority in • notification - all the relevant information concerning the projected redundancies and consultations held • employer forwards a copy of the notification to the workers' representatives - send comments to the competent public authority • redundancies take effect at the earliest 30 days after the notification; • the competent public authority uses this period to seek solutions. Member States may grant the public authority the power to reduce this period or to extend it to 60 days. • not compulsory for collective redundancies following a cessation of activity resulting from a judicial decision.

22. employees' rights in the event of transfers of undertakings -Council Directive 2001/23/EC To protect employees in the event of a change of employer, and in particular to safeguard their rights. The transfer does not in itself constitute valid grounds for dismissal but dismissals may occur, however, for economic, technical or organisational reasons, or for certain categories of workers Any collective agreement shall continue to be observed until the date of termination or expiry, or a new collective agreement The above provisions shall not apply where the transferor is the subject of bankruptcy or analogous insolvency proceedings.

23. Transfer of undertaking Rights of employees' representatives: • required to inform the representatives of their respective employees, in good time about • the date or proposed date of the transfer, • the reasons for the transfer, • the legal, economic and social implications, and • any measures envisaged in relation to the employees. The above requirements apply irrespective of whether the transfer is decided by the employer or by an undertaking controlling the employer. A breach of the information and consultation requirements because the information was not provided by the undertaking in question is not a valid excuse.

24. Framework - health and safety at work, Council Directive 89/391/EEC • To ensure a higher degree of protection of workers at work • Through implementation of preventive measures against accidents at work, occupational diseases; • Through information, consultation, balanced participation and training of workers and their representatives • Employers are obliged: • to ensure the safety and health of workers in every aspect related to the work, primarily on the basis of the specified general principles of prevention, without involving the workers in any financial cost; • to evaluate the occupational risks, inter alia in the choice of work equipment and the fitting-out of workplaces, and to make provision for adequate protective and preventive services; • to keep a list of, and draw up reports on, occupational accidents; • to take the necessary measures for first aid, fire-fighting, evacuation of workers and action required in the event of serious and imminent danger; • to inform and consult workers and allow them to take part in discussions on all questions relating to safety and health at work; • to ensure that each worker receives adequate safety and health training throughout the period of employment.

25. Health and safety • Workers are obliged: • to make correct use of machinery, personal protective equipment and safety devices; • to give warning of any work situation presenting a serious and immediate; • to cooperate in fulfilling any requirements for the protection of health and safety or efforts of employer to eliminate risk factors Particularly sensitive risk groups must be protected against the dangers which specifically affect them.

26. A framework strategy for non-discrimination and equal opportunities for all -Directives (Directive 2000/43/EC and 2000/78/EC) • Commission has set out a strategy for the positive and active promotion of non-discrimination and equal opportunities for all. One of the main objectives - effective legal protection against discrimination across the EU • EU directives prohibit direct or indirect discrimination on grounds of racial or ethnic origin, religion or belief, disability, age or sexual orientation • precise definitions of direct and indirect discrimination and of harassment. Within EC legal framework, racial discrimination is prohibited in the areas of employment, training, education, social protection, social benefits and access to goods and services (Directive 2000/43/EC)

27. Thank you for the attention