Industrial Relations in Europe andEuropean works council

Catherine Voynnet

Sources :

UK: Howard Gospel King’s College

D: Walther Müller Jentsch

Jackie Morin european

http://ec.europa.eu/socialdialogue

Industrial Relations in Europe andEuropean works council

Voynnet Fourboul

Sources :

UK: Howard Gospel King’s College

Jentsch prof. Émerite

european commission

http://ec.europa.eu/socialdialogue

Reference

Bamber G.J., Lansbury R.D., International and Comparative Industrial Relations1998

Devin G., syndicalisme : dimensions internationales1990

Dufour C., Syndicalismes, dynamique des relations

Dunlop J.T., Industrial Relations Systems, NY : Holt, 1958

Ferner A., Hyman R., Changing Industrial Relations in Europe

Harzing AW, Van Ruysseveldt J., International Human1995

Heenan D.A., Perlmutter H.W., Multinational Organization DevelopmentWeysley Publishing, 1979

Sparrow P., Hiltrop J.M., European HumanPrentice Hall, 1994

Young S., Hamill J., Europe and the multinationals

http://www.fr.eurofound.eu.int/emire/emire.html

International and Comparative Industrial Relations, Sage

internationales, éditions européennes ERASME,

des relations professionnelles, IRES, Dunod, 1992

, NY : Holt, 1958

Industrial Relations in Europe, Basil Blackwell, 1998

International Human Ressource Management, Sage,

Multinational Organization Development, Addison

European Human Ressource Management in Transition,

Europe and the multinationals, Edward Elgar, 1992

http://www.fr.eurofound.eu.int/emire/emire.html

2

Industrial relations in Europe(Part-1): A comparison

1. Definition

2. Collective Bargaining

3. Divergence convergence crosssvergence

4. Some national IR systems

5. Compared IR systems

Industrial relations in Europe1): A comparison

crosssvergence ?

3

1. IR definitionIR definition

A definition of Industrial

« The study of strategicof labour, business andrelationships of conflict,affecting the content andrelations and the use andhuman resources »

Joris Van Ruysseveldt et Jelle VisserSage 1996

Industrial relations

choice and collective actionand governments, their mutual

conflict, cooperation and power,and regulation of employmentand distribution of physical and

Visser, Industrial Relations in Europe,

Social Relations andIndustrial Relations

State

Directors

Management

Social Relations andIndustrial Relations

State

Representatives

Labour

Origins of IndustrialRelations

Adam Smith

division of labour, fixing ofwages, role which institutionsmight legitimately play in thelabour market.

Marx

stages of production,

the distinction between labourand labour power,

the alienation of labour andinevitability of conflict.

Origins of IndustrialRelations

neoclassical economists,

notion of marginalism in wagefixing

negative view of interventionsin the workings of the labourmarket.

Webbs in the UK

The History of Trade Unions(1894)

Commons in the US

Industrial Democracy (1897),

Legal Foundations ofCapitalism (1924)

Institutional "Economics (1934).

HR IR evolution

1945 - 1960

IR

HRH R I R

The "golden age" of AmericanIndustrial Relations

Institutional LabourEconomics becamepredominant

The decline of IR in USthe rise of IR in the UK

The rise of Human ResourceManagement (HRM) andOrganisational Behaviour (OB)

1960 -2005

H R I R IR

HR

The decline of IR in USthe rise of IR in the UK

The rise of Human ResourceManagement (HRM) andOrganisational Behaviour (OB)

HRM brings management more to centre stage

IR HR Commonalities

Common focus on the world of work

Attention to employer, workers and community

Basic psychological processes

A tension exists in satisfying the human goals and theeconomic/organizational goals of effectiveness

Multidisciplinary fields of practice

Normative "blind spots" in research agendas andproblem-solving recommendations

IR HR Commonalities

Attention to employer, workers and community

A tension exists in satisfying the human goals and theeconomic/organizational goals of effectiveness

Normative "blind spots" in research agendas and

Bruce E. Kaufman 2001

IR HR Differences

IR

The employee side Focus of research

External Perspective

The interests of employees should beprotected

seeks to optimize a weighted averageof effective organizational

performance and employee well-being

End goal

To be controlled through collectivebargaining and government

legislation

Power of management

workplace conflict is inevitable –government and unions have animportant role to play in dispute

resolution

conflict

collective bargaining andgovernment regulation

Key players

IR HR Differences

HR

Focus of research The employers' solution

Perspective Internal

End goal Achievement of maximumorganizational effectiveness/efficiency

Power of management Meeting employee interests andhuman values is accomplished

indirectly through good managementconflict HR needs to mediate conflict

"business partner" to strategically align

employee behaviors with the

organization's business goalsKey players 1st: management.

unions and government: secondaryplayers

Bruce E. Kaufman 2001

A new definition of IR

New supranational industrial relations

Diversity between existing national models

Cooperative and conflictual

Legal and institutional framework and public policies

Different actors (employees and rep. / employers and rep.), arenas and levels of industrial relations

Collective relations

Web of institutionalised relationships between actors,

Processes of control over work relations and regulations of interests

A new definition of IR

New supranational industrial relations

Diversity between existing national models

conflictual relationships

Legal and institutional framework and public policies

Different actors (employees and rep. / employers and rep.), arenas and levels of industrial relations

Collective relations

relationships between actors, organisations and institutions

Processes of control over work relations and regulations of interests

2. Collective bargainingdialogue

Collective bargaining and socialdialogue

Collective Bargaining

after 1945: became theregulation tool of employmentrelations

is a joint decision-makingprocess based on conflictualcooperation

may concern minimum hourlywages, min. or max workinghours

procedural rules concernadditional bargaining, rules forinterpreting the agreement

Collective Bargaining

after 1945: became theregulation tool of employmentrelations

is a joint decision-makingprocess based on conflictualcooperation

may concern minimum hourlywages, min. or max workinghours

procedural rules concernadditional bargaining, rules forinterpreting the agreement

Diminution of the traditionalrole played by employers(associaitons in favour of amore restricted advisory role

Tendency to decentralizecollective bargaining(preference for company orplant level bargaining) ;because :

Growing number and infuence ofMNC

Increased internationalcompetition and requirement forflexibility

13

Collective agreements, within the legal systems of theEuropean countries, differ considerably.

In Nordiccountries, UK

and Italy

Individual contractsDk UK : collectivebargaining has no

statutory definition

Germany

Is a mix of

Collective Bargaining in differentcountries

Collective agreements, within the legal systems of theEuropean countries, differ considerably.

Germany

Is a mix of bothextrema

France, SpainBelgium,

Law and collectivebargaining are

connected

Collective Bargaining in differentcountries

Collective bargainingcoverage

Source: EIRO

http://www.eurofound.europa.eu/eiro/2002/12/study/tn0212102s.html

2001

Hungary 34

Great Britain 36

Slovakia 48

Luxembourg 58

Germany 67

Norway 74

Spain 81

bargaining

http://www.eurofound.europa.eu/eiro/2002/12/study/tn0212102s.html

2001

Denmark 83

Portugal 87

Netherlands 88

Sweden 90

Belgium 91

France 93

Austria 98

BargainingBargainingCoverageCoverage

More80%

Around60%Less40%

Less25%

European Commission

What forms does the European Social Dialoguetake?

“Val Duchesse”Social Dialogue

Sectoral socialdialogue

committees

TRIP

AR

TITE

BIP

AR

TITE

Tripartite SocialSummit

Macroeconomic dialogueDialogue on education

Dialogue on employment

Cross industry

Au

ton

om

ou

s

What forms does the European Social Dialoguetake?

Sectoral socialdialogue

committees

EWC ?Transnationalagreements

Sectoral Company

European Commission

High levelgroups

34 (+ 3) Sectoral socialdialogue committees

Extractive Ind.Sea fishingAgriculture

Automobile (*)Non ferrous metal (*)

GasSteel

ChemicalWoodworking

Textile/clothingTanning/leather

SugarShipbuilding

FurnitureFootwearElectricity

Construction

1 Cross industry social dialogue committee

Non ferrous metal (*)

Catering (*)Hospitals

Life performanceInsurance

Inland NavigationIndustrial cleaning

HorecaCommerce

Civil aviationBanking

AudiovisualTemporary agency work

TelecomSea transport

Road transportRailways

Private securityPostal services

Personal servicesLocal / Reg. governement

1 Cross industry social dialogue committee

Aircrew

Groundhandling

Civilaviation

Inlandnavigation

Railtransport

SeaFishing

TRANSPORT

Maritimetransport

Air trafficmanagement

ILOConvention

Roadtransport

PublicUrban Tr

Logistic

Justculture

aviation

TRANSPORT

Automobile

Metal

Training

METAL…

Steel

Shipyards

Non-Ferrousmetal

Health &safety

Image

Qualifications

Restructur.

METAL…

Social dialogue texts

Agreementsestablishing standards

Article 139.2 of theTreaty

Recommendationsconcerning standards

and principles

Exchange ofinformation

Framework agreements

Autonomous agreements

Frameworks of action

Joint opinions

Guidelines and Codes of conduct

Policy orientations

Declarations

Tools

Social dialogue texts

Framework agreements

Autonomous agreements

Frameworks of action

Joint opinions

Guidelines and Codes of conduct

Policy orientations

Declarations

Implementation

Follow-up atNational level

InformationDiffusion

European Commission

6 Agreements establishing minimumstandards implemented by

Council decision

• Framework agreement onparental leave, 1995

• Framework agreement on part-time work, 1997

• European agreement on theorganisation of working time ofseafarers, 1998

• Framework agreement on fixed-term work, 1999

• European agreement on theorganisation of working time ofmobile workers in civil aviation,2000

• Agreement on certain aspects ofthe working conditions of mobileworkers assigned to interoperablecross-border services, 2005

European Commission

Sectoral social dialogue:action

Joint texts (opinions,declarations, codes ofconduct etc) on arange of issues

training,

employment,

fundamental rights

health and safety

Not real bargainingrole over pay andconditions,

Except the conclusionof an agreement on theorganisation of workingtime in March 2000 incivil aviation

Sectoral social dialogue:action

Not real bargainingrole over pay andconditions,

Except the conclusionof an agreement on theorganisation of workingtime in March 2000 incivil aviation

Social Policy

EuropeanSocialFunds

Legislation

MobilityGender equality

Working conditionsHealth and Safety

SocialAgenda

Social Policy

Open Methodof Coordination

EmploymentSocial protection

EuropeanSocial

Dialogue

SocialAgenda

European Commission

3. Divergence convergencecrossvergence ?3. Divergence convergence

More similar in terms of macro-levelvariables - structure and technology-

Crossvergence

Convergence

Processes of acculturation, a blending of 2cultures may result in cross bred forms of value

that are in-between the two parent cultures.

Divergence

More dissimilar in terms of micro-variables- attitude, behaviour

Crossvergence

Processes of acculturation, a blending of 2cultures may result in cross bred forms of value

between the two parent cultures.

From nationalspecific systemsto crossnationalinfluence

Country of origin effect andCountry of origin effect andfragmentationfragmentation

SP

UK

D

F

Crossvergence: a dynamiccombination

Micro

EWC

The process ofcrossvergence

Convergence

Divergence

Interaction

: a dynamic

Meso Macro

Europeanregulation,social Europe

NationalIndustrialRelations

Corporateculture

Impact on I.R. ?

Context

Degree ofinternationalization

Depth

Foreign sales/ total sales,

Foreign assets/total assets,

Scope

number of functional activities pursued abroad: sales, production, R&D

Overseas subsidiaries/total subsidiaries

Dispersion

number of foreign countries with research labs, manufacturing facilities, sales offices& sales subsidiaries, respectively).

psychic dispersion of international operations (dispersion of subsidiaries aroundthe 10 psychic cultural zones as identified in Ronen & Shenkar (1985), whoclustered countries into 10 cultural zones based on Hofstede and others

Top management's international experience

(as a percentage of total top management experience).

Concentration dispersionof employees of employeesat headquarters country around headquarters country

BRITISH LVMH ERICSSON HENKEL ABB UNILEVERAIRWAYS

86% 56% 49% 36% 6% 2%

Depth

Foreign sales/ total sales,

Foreign assets/total assets,

Scope

number of functional activities pursued abroad: sales, production, R&D

Overseas subsidiaries/total subsidiaries

Dispersion

number of foreign countries with research labs, manufacturing facilities, sales offices& sales subsidiaries, respectively).

psychic dispersion of international operations (dispersion of subsidiaries aroundthe 10 psychic cultural zones as identified in Ronen & Shenkar (1985), whoclustered countries into 10 cultural zones based on Hofstede and others

Top management's international experience

(as a percentage of total top management experience).

James J Kennelly, Eric E Lewis. Degree of internationalization andcorporate environmental performance: Is there a link?International Journal of Management. Poole: Sep 2002. Vol. 19, Iss. 3; pg.478, 12 pgs

29

Concentration dispersionof employees of employeesat headquarters country around headquarters country

BRITISH LVMH ERICSSON HENKEL ABB UNILEVERAIRWAYS

86% 56% 49% 36% 6% 2%

Globalintegration

Local responsiveness

High

Low

Global strategy/environment

Internationalstrategy/environment

Cameras

Electronics Aircraft Drugspharmaceuticals

Computers

Metals

Paper

Textiles

Machinery

Beverages

Food

MNCs environment and fittheory

responsiveness

Transnationalstrategy/environment

Multinationalstrategy/environment

Telecommunications

Drugs-pharmaceuticals

Aerospace

Beverages

Food Tobacco

Clothing

and fit[GHOSHAL & NOHRIA 1993][BARTLETT & GHOSHAL 1998]

30

The IHR manager role

Explicitly recognize how home-country ways of managing humanresources are a function of culturalvalues and assumptions

Recognize that these ways areneither better nor worse thanothers around the world

More creative and effective waysof managing human resources canbe learned from other cultures

Comparative awareness,comparison of the various systems

The IHR manager role

Push at the local orsubsidiary level to preserveuniqueness.

Push from headquarters toconform to a global culture

What needs to be done differently in thecontext of requirements for integration ?

SENSITIVITY

LOYALTY

31

HQ Subsidiary attitudes

Perlmutter (1979):

proposed certain orientations which help to develop a company and theestablishment of its international subsidiaries

Four different dispositions:

Ethnocentric: values & interests of parent company guide strategicdecisions

Polycentric: strategic decisions are tailored to suit cultures ofsubsidiaries

Regiocentric: company blends its own interests with those of regionalsubsidiaries

Geocentric: integration of global approach to include a little bit ofeverything

HQ Subsidiary attitudes

Perlmutter (1979):

proposed certain orientations which help to develop a company and theestablishment of its international subsidiaries

Four different dispositions:

Ethnocentric: values & interests of parent company guide strategicdecisions

Polycentric: strategic decisions are tailored to suit cultures ofsubsidiaries

Regiocentric: company blends its own interests with those of regionalsubsidiaries

Geocentric: integration of global approach to include a little bit ofeverything

Graphical OverviewApproaches

Source: C. Voynnet Fourboul & F. Bournois, Strategic Communication withEmployees in Large European Companies: A Typology in EuropeanManagement Journal, 03-04/ 1999, pp. 204-217

Overview of

& F. Bournois, Strategic Communication withEmployees in Large European Companies: A Typology in European

Ethnocentric Polycentric

DominatingCulture

Home country Host country

Strategy Global integration NationalResponsiveness

Governance Top down Bottom up (eachsubsidiary decides onlocal objectives)

PersonnelDevelopment

People of homecountry aredeveloped tooccupy keypositions anywherein the world

People of localnationality aredeveloped for keypositions in their owncountry

Distribution ofprofits

Repatriation ofprofits to homecountry

Retention of profits inhost country

Different actions depending on orientation of company

Polycentric Regiocentric Geocentric

Regional Global culture

ResponsivenessRegional integrationand nationalresponsiveness

Global integrationand nationalresponsiveness

Bottom up (eachsubsidiary decides onlocal objectives)

Mutually negotiatedbetween region andits subsidiaries

Mutually negotiatedat all levels of thecorperation

People of localnationality aredeveloped for keypositions in their own

Regional people aredeveloped for keypositions anywherein the region

Best people aroundthe world aredeveloped for anyposition around theworld

Retention of profits in Redistribution withinregion

Redistributionglobally

Different actions depending on orientation of company

EthnocentricBRITISH AIRWAYS

RegiocentricLVMH

Attitudes HQ / Subsidiaries

Heenan Perlmutter 1979

PolycentricBRITISH AIRWAYS ERICSON ABB

GeocentricUNILEVER HENKEL

Subsidiaries

35

Communication models

Mediaoriented

Managerial line

Culturaltolerance

Being and doing

BRITISH AIRWAYS

INSTRUMENTAL

ENTREPRENEURIAL

LVMH

BRITISH AIRWAYS: in “countries with Union representation” the communication

Communication models

36

Employeeoriented

Technology and faceto face

AIRWAYS

HUMANISTIC

HENKEL UNILEVER

ERICSSON

PLURALISTIC

communication process is quicker.

Communication advicesCompany DO

LVMHEntrepreneurialcommunicationRegiocentric attitude

Internal communication is effective if there is a philosophy behind it.It is more efficient if the communication manager reports to thehuman resources managerLetting people know about the strategies increases their motivation

UNILEVERHumanisticcommunicationGeocentric attitude

1. For the company:Keep checking and informing while realising that the process isdynamic2. For the business group:Make sure you bring added value to the businessBe open and honest with all employees, not only with managersBe flexible

ABBPluralisticcommunicationRegiocentric andpolycentric attitude

Inform employees before the press doesBe honest and open

BRITISH AIRWAYSInstrumentalcommunicationEthnocentric attitude

Try to use local languagesAssess human resources methodologies according to theirrelevance to local culture

ERICSSONPluralisticcommunicationPolycentric attitude

Be quick, clear, comprehensible, true, consistent, explain complexproblems

HENKELHumanisticcommunicationGeocentric attitude

Practice openness in teamworkUse every chance to do things in unisonPromote and encourage initiatives from all parts of the business andsubsidiaries

advices[BOURNOIS VOYNNET 2000]

37

DON’TInternal communication is effective if there is a philosophy behind it.It is more efficient if the communication manager reports to the

Letting people know about the strategies increases their motivation

Keep checking and informing while realising that the process is

Be open and honest with all employees, not only with managers

1. For the company:Do not think too centrally or paternalistically2. For the business group HRDo not withdraw on some vague “island of professionalethics”

Assess human resources methodologies according to theirDo not make assumptionsDo not use jargonBe careful of humour.

Be quick, clear, comprehensible, true, consistent, explain complex There is hardly anything so negative or secret that itcannot be explainedDo not hide bad news, do not communicate successesonlyDo not use too many channels

Promote and encourage initiatives from all parts of the business and

No headquarters dominationNo control but trustHeadquarters must not direct the subsidiaries butpromote self-directionHeadquarters must not interfere in local issues nor use itsown example to solve these issues

Forms of transnational negotiationat company level become a reality

At company level, growing number of transnational textsconcluded, about 110 recorded (70 European)

More than 90 companies (50 European) involved such as:

Axa, Ford, GM on restructuring

Dexia, Deutsche Bank on employment, training, mobility

Club Mediterrannée on subcontracting

Vivendi on H&S, GE plastics on data protection

Areva on equal opportunities

Generali, SKF, SCA on CSR-fundamental rights

European Social Dialogue

Forms of transnational negotiationat company level become a reality

At company level, growing number of transnational textsconcluded, about 110 recorded (70 European)

More than 90 companies (50 European) involved such as:

Axa, Ford, GM on restructuring

Dexia, Deutsche Bank on employment, training, mobility

Club Mediterrannée on subcontracting

Vivendi on H&S, GE plastics on data protection

Areva on equal opportunities

Generali, SKF, SCA on CSR-fundamental rights

4. Some national IR systemsSome national IR systems

Industrial relations regimesarrangements

North Centre-west

Industrial relations regimeOrganised corporatism Social partnership

Power balance Labour-oriented BalancedPrincipal level of

bargainingSector

Bargaining style IntegratingRole of TU in public policy Institutionalised

Role of the state in IRLimited (mediator)

‘Shadow of

hierarchy”Employee representation Union based/high

coverage

dual system/high

coverage

Countries

Denmark

Finland

Norway

Sweden

Belgium

Germany (Ireland)

Luxembourg

Netherlands

Austria

Slovenia (Finland)

Source: J. Visser, extended on the basis of Ebbinghaus and Visser (1997);

Platzer and Kohl (2007).

regimes or

South West Centre-east

Polarised/state-centred Liberal pluralism Fragmented/state­centrd

Alternating Employer-oriented

Variable/unstable Company

Conflict oriented Acquiescent

Irregular/politicised Rare/event-driven Irregular/politicised

Frequent intervention Non-intervention Organiser of transition

dual system/low

coverage

Union based/small

coverage

Union based/small coverage

Greece

Spain

France

Italy

(Hungary)

Portugal

Ireland

Malta

Cyprus

UK

Bulgaria

Czech Republic

Estonia Latvia

Lithuania

Hungary Poland

Romania Slovakia

on the basis of Ebbinghaus and Visser (1997); Crouch 1993; 1996; Esping-Andersen (1990); Schmidt (2002; 2006); and

HR in perspective acrossEurope Austria joined the EU in 1995. It has benefited greatly

from being both physically and linguistically close toGermany and it holds a key position on transalpinetransport routes. This small, but highly efficient, centralEuropean state has a well-developed system of labourrelations, a high level of employee involvement and awelfare system that, although generous, neverthelessincorporates a sufficient incentive to remain in work.

The Benelux countries (Belgium, Luxembourg and theNetherlands) provide a well-ordered and generallystable environment for enterprises. Belgium'semployment laws are still based on a needless divisionbetween blue and white-collar workers, and there arecomplex thresholds determining the operation of certainlegal rights. The Dutch welfare system has tended toencourage absenteeism, but it is currently beingmodified to improve the incentive to work. The bestexample provided by the Netherlands for accessionstates is in its highly diverse cultural mix and tolerantattitudes towards minority ethnic groups, which arereinforced in the workplace by highly effective equalopportunity laws.

Denmark has driven up its wage levels to be thehighest in the world by heavily taxing employees andrelying heavily on collective bargaining to regulate payand employment conditions. However, it has one of themost skilled workforces in Europe and has been apioneer in flexible working methods. This has helpedDenmark to achieve high, sustained productivity levelsin recent years.

HR in perspective across

Finland joined the EU in 1995. It has few naturalresources and a complex language that could easilyhave become a barrier to international trade. However,it has been able to take full advantage of EU andeurozone membership to achieve a low level of priceinflation and invest in its human capital to produce ahighly skilled workforce. The Finnish economy has alsobenefitted by employers being able to tap into a readysupply of labour from the Baltic states.

France has low level of unionisation, but highly militanttrade unions. The official stance towards foreign-ownedmultinational enterprises has often been hostile andthere has been a tendency to overreact to corporaterestructuring by the application of penal sanctions. The35-hour week has not been a success and the Frenchgovernment is now trying to unpick itself from many ofits past policies.

Germany is the biggest and by far the most successfulof the older EU states. During the last two decades ithas achieved a difficult transition in its eastern statesfrom a system of state-run monopolies to a modernmarket economy. Complete integration has not,however, been fully achieved and a 20% wage gap stillexists between eastern and western states. Neither hasGermany been able to significantly narrow the equalpay gap between male and female employees.

http://www.fedee.com/accession1.shtml

HR in perspective acrossEurope

Greece joined the EU in 1981. It continues to be a country with many smallemployers, generally poor labour relations and governments that have fritteredaway much of the economic gain from EU accession through unproductivepublic spending and early retirement schemes. Statutory work obligations arecommonly flouted, particularly in leading sectors such as construction.Government employment data is generally weak, out of date and unreliable.Greece relies very heavily upon its tourism and agricultural industries and hasnot been successful at attracting a sustained volume of major inwardinvestment projects. Moreover, it has never fully exploited its physical locationclose to major external markets in the Middle East.

Ireland provides the best example within the EU of a small country overcomingits lack of natural resources and peripheral geographical position to become atrue 'tiger economy'. This has largely been achieved through a low rate ofcorporation tax, a sustained inward investment strategy and an open-doorpolicy towards immigrants from central and eastern Europe. Ireland has notfocused on being a low-wage location, but has concentrated on minimisingbureaucratic burdens and keeping overheads such as social security costs to aminimum.

Italy has overcome many of its past economic and political instability problems,and its most recent reforms have helped to encourage flexibility and open upthe labour market. However, it has still not overcome its major north-southeconomic divide, reduced the bureaucratic burdens that it continues to placeon employers, or resolved the inconsistent application of its complexemployment laws.

Portugal joined the EU in 1986. Although it has revised its labour laws andintroduced a unified labour code, such reforms were far too little and too late tohalt an exodus of foreign-owned companies. Negative work attitudes,absenteeism, a highly unequal distribution of incomes, bureaucratic statemachinery and an undue emphasis by the government on low-cost labour haveall contributed to a poorly functioning industrial base.

HR in perspective across

Spain joined the European Union in 1986 and was at first acountry burdened by poor labour productivity, tight employmentprotection laws and wage indexation. Although these problemshave not entirely disappeared Spain is now western Europe'ssecond tiger economy, with rapid economic expansion driven by aproperty boom and a plentiful supply of low cost labour from northAfrica.

Sweden joined the EU in 1995. During the 70s and early 80s,Sweden had to undertake a major economic restructuring exerciseto deal with a decline in its forestry and iron ore mining sectors. Itshighly sophisticated and extensive welfare system helped to makethis exercise a success. Since accession, however, the Swedisheconomy has underperformed. This is primarily due to the high taxburden imposed on ordinary workers to sustain the generouswelfare provisions, the creation of a dependency culture, and thenarrowness of pay differentials.

The United Kingdom operates a very different corporate andwork culture from the European continent. It has virtuallyabandoned sectoral collective bargaining and has been reluctantto embrace formalised systems of employee participation. It hastended to take a minimalist approach to all EU social andemployment Directives and has refused to join the eurozone.Although this has helped to encourage the growth of newenterprises, much of the UK's advantage in attracting inwardinvestment has been gained through its cultural and linguistic linkswith the USA. Labour costs, however, remain high by EUstandards and productivity is well below the level that this degreeof economic freedom should have achieved.

http://www.fedee.com/accession1.shtml

The British ‘voluntaristtradition

Limited state intervention in employee relations

State concerns at present: training, public sector trade unions

State indifference: private sector trade union

Preference for collective bargaining over state regulation

non-legalistic collective bargaining

Non-legalistic collective agreements: limited role for courts

Limited right to strike

Subscribed to by Conservative and Labour governments 1945

voluntarist’

Limited state intervention in employee relations – only ‘gap filling’

State concerns at present: training, public sector trade unions

State indifference: private sector trade union

Preference for collective bargaining over state regulation

legalistic collective bargaining

legalistic collective agreements: limited role for courts

Subscribed to by Conservative and Labour governments 1945-

Industrial Relations inGermany

TU’s density : 30%

Structure : industry TU

Ideology: participation, cooperation ofpowerful and well organized TU

Representation systemcompany level and at the board

DGB : 6 M (VERDI : 2.2 M ; IG METALL :2.3M)

BDA : 75 % employers

Industrial Relations inGermany

industry TU

participation, cooperation ofpowerful and well organized TU

Representation system : both at thecompany level and at the board

DGB : 6 M (VERDI : 2.2 M ; IG METALL :

BDA : 75 % employers

GERMANY: Sociodates * GB (first industrial nation): 1780

1835-1870

First IndustrialRevolution*

Free labour markets + Factory systemMechanisation of workLight industry, Railways

1880-1920

SecondIndustrialRevolution

Heavy industry (metallurgy and mining)New industries: chemicals, electricityFormation of gigantic corporations (e.g.Krupp)Mass production

1920s-1970s

Age of‘Fordism’

Leading sector: Automobile industryFordism combined with TaylorismConveyor belt + flow production

since1970

ThirdIndustrialRevolution

MicroelectronicsLeading sectors: ITGlobal production chains‘Flexible specialisation’

GERMANY: Socio-economic key* GB (first industrial nation): 1780-1830

Free labour markets + Factory systemMechanisation of workLight industry, Railways

Heavy industry (metallurgy and mining)New industries: chemicals, electricityFormation of gigantic corporations (e.g.Krupp)Mass production

Leading sector: Automobile industryFordism combined with TaylorismConveyor belt + flow production

MicroelectronicsLeading sectors: IT-industries, logisticsGlobal production chains‘Flexible specialisation’

1945 –(Federal Republic of Germany

1945-1949

Allied Forces

1949 FederalRepublic(WestGermany)1949

1951

1952

1969-1978

1972

1976

1990 UnitedGermany

– today(Federal Republic of Germany – West Germany)

Germany divided into 4 zones

Constitution Act (Grundgesetz)with the right to associate

Collective Agreement Act(Tarifvertragsgesetz)

Co-determination Act for Coal, Ironand Steel Industries(Montanmitbestimmungsgesetz)

Works Constitution Act

Tripartism: ‘Konzertierte Aktion’

Amendment of the WorksConstitution Act with considerableimprovementsCo-determination Act(Mitbestimmungsgesetz)

Transfer of IR institutions to EastGermany

Trade Unions: Historical Periodsof Organizing

1st periodsince 1848/1860s

Craft Unionsorganize skilled blue-collar worker

2nd periodsince 1890

Industrial Unionsorganize all grades of blueworkers

3rd periodsince 1900

White-collar Unionsorganize employees and civil servants

Nazi Reich1933-1945

Trade Unions banned

4th periodRebuilding 1949

16 Industrial Unionsaffiliated with the DGB

5th periodMergers afterunification 1990

Multi-Industry Unions+ New Craft Unions

Trade Unions: Historical Periodsof Organizing

collar worker

organize all grades of blue-collarpolitically dividedunionism

organize employees and civil servantspolitically dividedunionism

Trade Unions banned

Industrial Unionsaffiliated with the DGB

unitary unionism

Industry Unions unitary unionismweakened

Work contract / Contract ofEmployment

• constitute an employmentrelationship between employerand employee

• which implies the formal consentof employee

• to accept his/her subordination tothe employer’s command

• as to the place and manner inwhich the work is to be done

• bound to• General Law (national &

international frameworklegislation, e.g. Holiday Act,Minimum Wage)

• Collective Agreements

• Works Agreements

Work contract / Contract ofEmployment

• Recruitment (also transfer,replacement, regrading):

– Employer must consult workscouncil and obtain its consent

• Termination– Employer must consult works

council and obtain its consent– Protection against dismissal

(Kündigungsschutz)

• Consultation of works councilin establishments with morethan 20 employees

• Works council can refuse itsconsent only in specified cases

Trade Unions

• Confederations:

– DeutscherGewerkschaftsbund (DGB)

• with 8 affiliated industrialunions

• 85 % of all organizedemployees

– Deutscher Beamtenbund(civil servants)

• Single Craft Unions:

– Marburger Bund (doctors)

– Cockpit (pilots)

– Gewerkschaft derLokomotivführer (enginedrivers)

Trade Unions

• Legal Framework of German IR– Freedom of Association

• laid down in the ConstitutionLaw (§ 9,3)

– Right to strike• in general: complementary right

to FoA• in detail: judgements by the

Federal Labour Court

– Collective Agreement Act• (Tarifvertragsgesetz)

– Works Constitution Act• (Betriebsverfassungsgesetz)

– Co-determination Laws• (Mitbestimmungsgesetze)

DGB: Affiliated trade unions and their

members, 2006 and Union densityTrade union Members

‘000sShare

%

IG Metall 2.333 35,4

Vereinigte Dienstleistungs-gewerkschaft (ver.di)

2.275 34,5

IG Bergbau, Chemie, Energie 729 11,1

IG Bauen-Agrar-Umwelt 369 5,6

Gew. Erziehung und Wis­senschaft 249 3,8

TRANSNET 249 3,8

Gew. Nahrung-Genuß-Gaststätten 212 3,2

Gew. der Polizei (GdP) 171 2,6

DGB-Gesamt 6.586 100,0

DGB: Affiliated trade unions and their

members, 2006 and Union densityGerman Confederation

of Trade Unions(DGB)

Other Confederations(White-Collar Union /Civil Servants Union)

AllConfederations

000s % 000s. % %

1980 7.883 31,9 1316 5,3 37,2

1985 7.719 29,1 1297 4,9 34,0

1990 7.938 27,8 1308 4,6 32,4

1991 11.800 33,0 1638 4,5 38,4

1995 9.355 25,5 1583 4.3 29,8

2000 8,223 21,6 1656 4,4 26,0

2005 6.778 17,7 1275 3,3 21,0

Dual system of interestrepresentation

Two actors:

• Trade unionvoluntary organization

• Works councillegal institution in establishments

with 5 and more employees

Dual system of interestrepresentation

• 1.) trade union & employers’association or single employer

– bargain collective agreements

– mostly at regional or nationalsectoral level; also at enterpriselevel

• 2.) works council &management (of a singleestablishment or a multi-establishment company)

– negotiate works agreements

Collective Agreements (CA) &Works Agreements (WA)

• Priority of CA over WA

– Wages and other conditions ofemployment (e.g. working hours)which are normally fixed bycollective agreements shall not beregulated by works agreements.

• Relative & absolute peaceobligation

– Trade unions can strike andemployers can lock-out to reach aCA. But during the period of validitythe parties to a collective agreementare bounded to peace obligation.

– Works councillors are bound toabsolute peace obligation. Acts thatimperil the peace of theestablishment are forbidden.Conflicts are solved by specialconciliation committees.

Collective Agreements (CA) &Works Agreements (WA)

Works Council

• legal representation of allemployees in establishmentswith 5 and more employees

• elected by all employees

• information, consultation, co-determination rights in– social

– personal

– economic matters

• no right to strike

Works Council

Coverage% ofestablishments

Coverage% of employees

in establishmentswith 5-50employees

712

51-100 43 45

101-199 65 66

200-500 79 80

501 and more 89 92

All 11 46

New Roles of Works Council

• Positive features– New bargaining agent:

• Concession bargainingat company level(Bündnis für Arbeit)

– Co-manager

– Mediator• between different

interest groups

New Roles of Works Council

Negative features

• Blackmailing /threatening– with downsizing,

outsourcing, production

• Undercuttingcollective agreement

• Estrangementbetween WC andtrade union

Mc donald• The German system of co-determination

• co-determination at board level and at theworkplace more difficult in practice.

• where there are two or more works councils inthe same business, employees can establish a'central' works council at company level, called aGesamtbetriebsrat (GBR).

• labour directors on the management board(Vorstand); and worker representatives onsupervisory boards (Aufsichtsrat).

• What follows is a brief analysis of theseinstitutions.'

• The 1976 Act, allows for equal numbers ofemployee and shareholder representatives onthe supervisory board.

• Although the 1976 Act has provoked the mostopposition from employers, it does not really givethe employee side parity, because one of theirmembers must be of managerial status andhe/she can usually be relied upon to vote withthe shareholder representatives.

donald Case• The 1952/72 Acts allow for co-determination at

the workplace through a works council.

• Theoretically, all businesses with five or moreemployees are affected by this legislation.

• All employees of 18 or over can take part in theelection of a council, but separately for blue-collar and white-collar workers.

• The works council cannot call a strike but it cansue management for any alleged breach ofcontractual or legal rights.

• The council must meet with management everyfour weeks and the law grants the councils abroad range of rights to information consultationand determination (

• these rights give employees considerable scopefor influence over the management of thebusiness, surpassing by far the rights ofequivalent bodies in other countries.

McDonald's in GermanyCase

• McDonald's first came to Europe in1970,

• In 1995 McDonald's had over 600stores in Germany with a workforce ofjust under 40,000, currently it hasover 800 stores.

• during the early 1980s the corporationfaced mounting criticism in theGerman media.

• The company later distanced itselffrom this statement, stating that itssource had been one over-zealousmanager and in no way representedcompany policy.

• the corporation had becomeincreasingly concerned about itspublic image as an employer

McDonald's in GermanyCase

• 1986: the executive board wasradically changed

– No real change in the overall employee relationspolicy

• The typical McDonald's store hasbetween 50 and 100 employees

• There is no supervisory board, nocompany-level works council (GBR)no concern-level works council(KBR).

• In 1982: 2 works councils from 160stores In1995: 27 from nearly 600stores

• How can we account for this?

• How does a company take advantageof weaknesses in the legislation?

McDonald's in Germany CaseInformation which must be provided

1. Economic and financial situationof the company

2. Production and marketingsituation

3. Production and investmentprogrammes

4. Rationalization plans

5. Production techniques andmethods, especially theintroduction of new workmethods

McDonald's in Germany Caseprovided to the finance committee

6. Closure or reduction or output inany establishment or part ofestablishment

7. Transfer of any establishmentsor parts of establishments

8. Amalgamation of establishments

9. Changes in organization orobjectives

10. Any other circumstances andprojects that may materiallyaffect the interests of theemployees of the company.

Industrial relations in FranceIndustrial relations in France

My 12 key1. French TUs display a high level of diversity

2. Their presence varies considerably

3. A burning representativeness debate

4. TU are organised in a dual structure (local and

5. Ideology is questioned by European

6. The Law system is a burden for management

7. France has a record of 97 % Coverage

8. There are many opportunity windows

9. The Government stimulates social dialogue

• To settle a true social dialogue takes

10. Difficulty for management to communicateworkforce planning system )

11. Common issue with other European

12. Prospect for a new ideology of mature

• common interest for the company vs

• learning confidentiality,

• from local focus to wider scope

• Differenciation between interest and position of

• From legal focus to social dialogue

key messagesdiversity (pluralism)

in large or small companies

debate takes place

in a dual structure (local and branch)

European influence

for management

Coverage bargaining & 8% membership rate

windows to innovate in the IR

social dialogue

takes time and steps

communicate strategic information (HR

TU: distance & negotiation

of mature stakeholders:

vs diverging interest,

and position of employees

A. Industrial Relations inContext

A. Industrial Relations inContext

TU are fragmented

• 5 main organisations– CGT,CFDT, FO,CFTC, CFE

– UNSA, groupe des 10 -

– And numerous TU in different sectors

• Workers origin (CGT,FO)

• social catholicism origin (CFTC,CFDT)

• Representing a category («cadres »: managers) (CFE

TU are fragmented

5 main organisationsCGT,CFDT, FO,CFTC, CFE-CGC,

- SUD

And numerous TU in different sectors

Workers origin (CGT,FO)

origin (CFTC,CFDT)

Representing a category (« les»: managers) (CFE-CGC)

Genealogy of TUGenealogy of TU

1980

1969

1964

1947

1944

1943

1939

1937

1936

1921

1919

1895 CGT

CGT CGTU

CGT

CFDT

CGT

CGT

CGT FEN CGT-FO

Exclusion desCommunistes

1988SUDUNSA

Genealogy of TUGenealogy of TU

CFTC

CFDT CFTC

CGC

CGC UCT

CGC

Premiersregroupements decadres au niveau

confédéral

SUD

TU density in FranceDARES – report HADAS LEBEL 11/5/2006

TU density in Francereport HADAS LEBEL 11/5/2006

DARES 2004

TU density: 8%

5% in private sector

Trade Unions délégué syndicalTrade Union delegate

Election

Workforce

(syndical) représentantau comité d’entrepriseTU member ofcouncil

(non syndicalau comité d’entrepriseNon TU membercouncil

Délégués du personnelsWorkforce delegates

Election

Trade Union delegate

Negotiation

IRP: InstitutionsReprésentatives du Personnel- Comité d’entreprise

) représentantd’entreprise

of work

syndical) représentantd’entreprise

member of works

Président du comité d’entreprise

Head of the works council

personnelsWorkforce delegates

Coverage rate of “DS” trade uniondelegate

1999

Coverage rate of “DS” trade uniondelegate

1999

Illustration of TU organisation :CFDT

Illustration of TU organisation :CFDT

ConflictsConflicts

Different managerial types

The functionalist

The opponent

Different managerial types

The cooperative

The legalist

Some French specificities

• The part played at the company level in theindustrial relations system is low– The level of the company is not the relevant level of

regulation

• Cultural and ideological attitudes– class struggle

– TU value independance

– Company is considered from an external perspective

Some French specificities

The part played at the company level in theindustrial relations system is low

The level of the company is not the relevant level of

Cultural and ideological attitudes

independance from State

Company is considered from an external perspective

The State plays the strongestrole, but for how long?

• Regulation by the State (on workers politicalassociation influence) concerns:– macro-economics : wage setting,

insurance « sécurité sociale– expression rights, duty to negotiate, training:

integrated in the law– Imposition of structural reforms (redundancy

compensation, nationalisation, privatisation)

• Decentralisation, rights given to companies toderogation (work hours)

The State plays the strongestrole, but for how long?

Regulation by the State (on workers politicalassociation influence) concerns:

economics : wage setting, illnesssociale » pension

expression rights, duty to negotiate, training:

Imposition of structural reforms (redundancycompensation, nationalisation, privatisation)

Decentralisation, rights given to companies toderogation (work hours)

B. Key elements of Labour law(individual relations)

Work Contract : from recruitment to termination

Key elements of Labour law(individual relations)

Work Contract : from recruitment to termination

From recruitment

• Work contract is connected directly to law application

• 2 status: “salarial” and “non(but the border is in fact no so obvious)

• Apprenticeship Contract between the ages of 16 and 25(under work law)

• Employment policy : lots of types of contracts

• Trainees (excluded from work law)

From recruitment

Work contract is connected directly to law application

non salarial” (independent workers)(but the border is in fact no so obvious)

Apprenticeship Contract between the ages of 16 and 25

Employment policy : lots of types of contracts

Trainees (excluded from work law)

Flexibility: Different contracts

• Fixed term contract– used in companies (6.2 % in March 2006) as a trial

period (delayed recruitment)

• Part time contract– 15% of workers, female most, less qualified

– In progression: young people and seniors

– Work « on call » is not permitted (necessaryprovision)

• External employment contract– coactivity is still not taken into consideration by the

law

Flexibility: Different contracts

used in companies (6.2 % in March 2006) as a trialperiod (delayed recruitment)

15% of workers, female most, less qualified

In progression: young people and seniors

» is not permitted (necessary

External employment contractcoactivity is still not taken into consideration by the

Concluding a work contract• Free choice for the employer,

• Information concerning the employee is limited to the skill for thejob (are excluded: health, religion, TU or political belonging, pregnancy,)

• Law against discrimination (ethnic background, sex, family situation)anonymous CV,

• Recruitment process: transparency of methodstesting)

• CNIL: right to access to information

• Registration to social security office URSSAFemployment)

Concluding a work contract

Information concerning the employee is limited to the skill for the(are excluded: health, religion, TU or political belonging, pregnancy,)

(ethnic background, sex, family situation) ;

Recruitment process: transparency of methods (use of psychological

CNIL: right to access to information

Registration to social security office URSSAF (against clandestine

Termination : INDEMNITÉ DE LICENCIEMENTCOMPENSATION FOR DISMISSAL

• Regulated by law and collective agreement and,sometimes, the individual contract of employment.

• Legal compensation:– payable after two years of continuous service

– 1/10 month per each year of work

– Doubled in case of « dismissal for economic reasons17/1/2002)

• Conventional compensation

INDEMNITÉ DE LICENCIEMENTCOMPENSATION FOR DISMISSAL

Regulated by law and collective agreement and,sometimes, the individual contract of employment.

payable after two years of continuous service

1/10 month per each year of work

dismissal for economic reasons » (law

Conventional compensation

3 modes to control

Employer power

Administrative control

Social dialogue control

3 modes to control layoffs

Law and regulation control

Administrative control

Social dialogue control

From 1974 to 1986

From 1986…?

2008 : bargaining empowerment?

C. Social DialogueC. Social Dialogue

Evolution of the stakeholderspractices

• Employer associations:– Recognition of the TU principle in the company

Auroux Law 1982

– But difficulty to accept the dialogue, the beneficialconfrontation or the equality of relation

– There is the idea that workplace should be neutral

Evolution of the stakeholderspractices

Employer associations:Recognition of the TU principle in the company–

But difficulty to accept the dialogue, the beneficialconfrontation or the equality of relation

There is the idea that workplace should be neutral

Consultation• French law interpretation about consultation is

limited: to express an opinion– Satisfy managers who don’t want to look for a

compromise,

– Dissenting TU don’t want to be involved in theemployer choice

• European law about consultation is moredemanding: a negotiated– Includes « the aim of reaching an agreement on

decisions ». Discussion, debate, compromise aboutemployment issues.

ConsultationFrench law interpretation about consultation is

to express an opinion,Satisfy managers who don’t want to look for a

don’t want to be involved in the

European law about consultation is morenegotiated process

Includes « the aim of reaching an agreement ondecisions ». Discussion, debate, compromise about

COMITÉ D'ENTREPRISEWORKS COUNCIL

• Institution of employee representation, compulsory since 1945

• With a legal personality

• Composed of :– employee members elected– the head of the enterprise (who chairs)– representatives appointed by the trade unions

• Scope :– welfare and cultural facilities ;– consultative powers– no formal bargaining power.

COMITÉ D'ENTREPRISEWORKS COUNCIL

Institution of employee representation, compulsory since 1945

the head of the enterprise (who chairs)representatives appointed by the trade unions

D. RestructuringD. Restructuring

Forms of Corporaterestructuring

• openings and closures oflocations;

• increases or reductionsof operations atlocations;

• transfers ofproduction/serviceprovision from onelocation to another withinthe same company (inthe same country oranother);

Forms of Corporaterestructuring

• transfers ofproduction/serviceprovision outside acompany to an externalparty (‘outsourcing’);

• mergers;

• takeovers;

• joint ventures;

• divestments;

• bankruptcies.

IR in the face of restructuring

• Employment: ambiguity(employee and termination

• Secret clauses. Due to prior

• Assumptions: TU in Francemanagement, only social is

• Possible merger of thesethem

IR in the face of restructuring

for TU representativestermination advantages)

prior information from Chairmen

France feels not legitimate inis his deserved territory

2 philosophies is difficult for

Managing multiple layers ofinformation and consultation

• A complexity for management and worker representatives– organising meaningful information and/or consultation

– without creating undue delays and uncertainties.

• Respect of obligations

• Confidentiality requirements

• Management of social consequences remains local andgoverned by national rules.

Managing multiple layers ofinformation and consultation

A complexity for management and worker representativesorganising meaningful information and/or consultation

without creating undue delays and uncertainties.

Confidentiality requirements

Management of social consequences remains local andgoverned by national rules.

A new 2005

• In 300+ companies

• An obligation of a 3yr negotiation– information & consultation of WC

– An HR workforce planning systemRegarding training and mobility

A new 2005 law

In 300+ companies

An obligation of a 3yr negotiationinformation & consultation of WC

HR workforce planning system esp.Regarding training and mobility

The employees’perspectives

• One year afterwards in thede bilan),– 2% of the employees are reclassified in

– 5% in anticipated retirement,

– among the others 62% of the employees remain without solutions and

– 18% are in long term contract.

• In the case of the creditworthyare still better but very unsatisfactory:– 14% are reclassified in-house,

– 12% in anticipated retirements,

– among the others 47% remain without solutions and 22% are in longterm contract

employees’perspectives

One year afterwards in the event of liquidation (dépôt

2% of the employees are reclassified in-house and

among the others 62% of the employees remain without solutions and

creditworthy companies, the resultsare still better but very unsatisfactory:

among the others 47% remain without solutions and 22% are in long

The future of IndustrialRelations

• Towards expertise of TU: elites of IR incompanies– Difficulty to mobilize troops

– Gap between TU in companies and official TU at thenational level

– Trend for the new TU (SUD UNSA) toward moreautonomy left to TU at the company level

• Management influenced by internationalisation,crossvergence as well as TU

• Opportunity to develop IR more at workplace

The future of IndustrialRelations

Towards expertise of TU: elites of IR in

Difficulty to mobilize troops

Gap between TU in companies and official TU at the

Trend for the new TU (SUD UNSA) toward moreautonomy left to TU at the company level

Management influenced by internationalisation,as well as TU

Opportunity to develop IR more at workplace

5. TU systems: a comparison5. TU systems: a comparison

Divergence factors:the national systems diversityof the workers representation

• Degree of formalism

• Trade Union density

• Structure of the Trade Unions

• Ideology

• Flexibility at work in Europe

• TU strategy

• National representation systems

Divergence factors:the national systems diversityof the workers representation

Structure of the Trade Unions

Flexibility at work in Europe

National representation systems

Trade Union Density

0

10

20

30

40

50

60

70

80

90

Perc

en

t

DK

SE FI M

TCY

BE LU S

IIE IT A

TSK

UK

Trade Union Density

UK N

L

EU25 C

ZDE E

LHU P

LPT

LV ES LT E

E FR

1995

2004

European Commission

Multivariate analysis

European Commission

Trade Unions structure

Trade Unions

craft,

industrial,

general or conglomerate

historic origin and variation explained bythe state of technology

no matching system

Trade Unions structure

Trade Unions

craft,

industrial,

general or conglomerate

historic origin and variation explained bythe state of technology

no matching system

Trade Unions Structure inEurope

Country Type Representation and level

Germany Industrial a single trade union : DGB Deutscher GewerkschaftsbundMetall) separate TU for civil servants and white collar workersTarifunion

Belgium Industrial sectorial, no company-based union3 trade unions (Christian Confédération des Syndicats ChrétiensGénérale du Travail de Belgique FGTB/ABVVBelgique CGSLB/ACLVB)

Denmark Craft close relations with the Social Democratic Partytrade unions

Spain General political and ideological organizations(Comisiones Obreras, CC.OO) (marxist ideology)Trabajadores, UGT) (socialist)

France General independent but strong links with political parties5 multi-professional unionsMINEFI assessed the trade union centres’ actual memberships at 525,000 members for CGT, 450,000for CFDT, 310,000 for CGT-FO, 135,000 for UNSA, 120,000 for FSU, 105,000 for CFTC, 80,000 forCFE-CGC and 80,000 for Solidaires

Italy Industrial 3 trade unions : General Confederation of Italian Workers (Lavoro, Cgil) Italian Confederation of Workers’ Unions (Lavoratori, Cisl) Union of Italian Workers (rather than craft or occupations

Netherlands General unions of all occupations are joined in 3 federations. TU not militant, do not use strikes as the majorway to achieve their goals ; financed solely through membership contributions

UK Craft national confederation of trade unionsmore occupational groupings within the same

source : Sparrow P., Hiltrop J.M.,Transition, Prentice Hall, 1994

Trade Unions Structure in

Deutscher Gewerkschaftsbund; 16 unified sectorial trade unions (IGMetall) separate TU for civil servants and white collar workers Deutscher Beamtenbund und

Confédération des Syndicats Chrétiens CSC/ACV, socialist FédérationFGTB/ABVV, liberal Centrale Générale des Syndicaux Libéraux de

close relations with the Social Democratic Party ; LO central organization :2/3 of the workforce ; 70

olitical and ideological organizations Trade Union Confederation of Workers’ Commissions(marxist ideology) General Workers’ Confederation (Unión General de

independent but strong links with political parties

assessed the trade union centres’ actual memberships at 525,000 members for CGT, 450,000FO, 135,000 for UNSA, 120,000 for FSU, 105,000 for CFTC, 80,000 for

General Confederation of Italian Workers (Confederazione Generale Italiana del) Italian Confederation of Workers’ Unions (Confederazione Italiana Sindacato

) Union of Italian Workers (Unione Italiana del Lavoro, Uil) cover industrial sectors

unions of all occupations are joined in 3 federations. TU not militant, do not use strikes as the major; financed solely through membership contributions

ns : TUC ; 73 individual unions ; several unions represent one ormore occupational groupings within the same company.

source : Sparrow P., Hiltrop J.M., European Human Ressource Management in, Prentice Hall, 1994

Representative modelSingle channel

Based on negotiation

Representatives institutions are developed on acontractual basis through sectorial agreement:the trade unionist is the privileged interlocutor

UKIreland

ItalyNorwayDenmark

TU largest part of therepresentation mixed withother organisations

SwedenFinland

TU constitue the wholerepresentation

I: RSU1/3 désignés2/3 élus

N Dk :instanceparitaired’informationconsultation

Emergence of informationcommittee - the Fall ofvoluntarism system

Representative modelDual channel

Based on information

Representatives institutions are developed on acontractual basis through sectorial agreement:the trade unionist is the privileged interlocutor

the workforce representation inside thecompany is done by an institution different

from the trade union

the council is mixand directed bythe President

the councilconsists of solelyemployeerepresentatives

FranceBelgiumLuxembourg

GermanyAustriaSpainNL

TU largest part of themixed with

TU constitue the whole

Emergence of information

Some representativePays Representation Threshold

F Comitéd’entreprise

50

Workforcedelegate :DÉLÉGUÉ DU

PERSONNEL

D Betriebsrat 5 by law

200 practically

SP Comite de empresa 50

DP6

I RSU représentationsyndicale unitaire

15

UK Shop stewards none

representative regulationThreshold Members Means

Workforcedelegate :DÉLÉGUÉ DU

PERSONNEL 11

election Expert training budget

paid time off

by law

ctically

election Expert training paid time

off

election No budget no expert – no

paid time off during

training

2/3 election No training no budget

Designation No law – bargainedarrangement

Level ofPays Établissement Inter-établissements

F Comité d’établissement Comité centrald’entreprise

(de droit)

D Betriebsrat Gesamtbetriebsrat

(de droit)

SP Comite de empresa Comité intercentres

(selon conventioncollective)

I RSU représentationsyndicale unitaire

Coordinamento

(habituel)

UK Shop stewards Single employer combinecommittee (peu fréquent)

of representativenessétablissements Groupe

Comité centrald’entreprise

(de droit)

Comité de groupe (dedroit)

Gesamtbetriebsrat

(de droit)

Konzernbetriebsrat(de + en + étendu)

Comité intercentres

(selon conventioncollective)

Coordinamento

(habituel)

Coordinamento

(dans la plupart desgroupes)

Single employer combinecommittee (peu fréquent)

Comité de délégué(quelques cas)

Threats posed to unions byMNCs

Financial resources : capacityto absorb losses in aparticular foreign subsidiarythat is in dispute with anational union

Alternative sources of supply« dual sourcing » outsourcing

Abitility to move productionfacilities to other cheap labourcountries

Threats posed to unions by

Superior knowledge andexpertise in labour relations -Remote locus of authority

Production facilities in manyindustries

Capacity to stage aninvestment strike in which theorganization refuses to investin a plant that will becomeobsolete and non-competitive

Kennedy T 1978European Labour Relations , London

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