Title: Latest developments in wage bargaining in Europe: A comparative overview on wage indicators in the E
1Latest developments in wage bargaining in Europe
A comparative overview on wage indicators in the
European metal sector and total industries
- Vera Glassner, ETUI (Research)
- EMF Summer College 2008
- 14 17 September 2008, Lovran/Croatia
2Economic Background European metal sector
(EU25)Developments 1995-2005
- -Changes 1995-2005 (KLEMS 2008)
- GROSS OUTPUT
- Automotive 81,5 , Total industries 45 ,
basic metals 41 , total manufacturing 37
, machinery 37 - EMPLOYMENT Total industries 11.5 , automotive
5 , basic metals 1,4 , machinery 7,7 ,
total manufacturing -8,4 - LABOUR PRODUCTIVITY (gross value added./hrs.
worked) automotive 47 , machinery 44 ,
total manufacturing 37,5 , basic metals 31 ,
total industries 28,6 - LABOUR COMPENSATION (compensation of empl./hrs.
worked) - Automotive 42 , machinery 40 , total
manufacturing 34,7 , - basic metals 28 , total industries 29
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4Economic Background European metal sector
(EU25)Output Employment
- Changes in - 1995-2005
- GROSS OUTPUT Outstanding position of sectors
such as automotive investment goods ? ABOVE
TOTAL INDUSTRIES! - -Change higher in TOTAL INDUSTRIES than in
MANUFACTURING due to very dynamic sectors such as
transport ( 81,5 ), finance business services
( 83 ), telecommunications ( 98 ) and energy
( 138 ) - EMPLOYMENT MANUFACTURING negative trend METAL
sector branches ABOVE level of MANUFACTURING but
positive trend only in automotive! - Employment growth in SERVICE secotors (market
non-market services, personal financial
services
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6Economic Background European metal sector
(EU25)Labour Productivity (LP) Labour
Compensation (LC)
- Changes in - 1995-2005
- Inter-sectoral comparison
- LP in line with LC, exception basic metal
production Although LP growth higher than in
total industries, compensation increase laggs
behind that in total industries. - Comparison of growth levels of LP LC
- General trend LC growth laggs behind growth of
LP in total MANUFACTURING and in METAL sector
branches in particular! - Reverse trend in TOTAL INDUSTRIES! Compensation
growth above prod.-growth in particular in
service sectors such as personal, market
financial services!
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8Economic Background European metal sector
(EU25)Unit Labour Costs (ULC)
- Development ULC 1995-2005
- TOTAL INDUSTRIES 0,27
- TOTAL MANUFACTURING - 0,74
- METAL sector branches Automotive 2,22 ,
Investment goods 9,1 , basic metals 12,5 ,
machinery 14,4 - Total industries, total manufacturing, machinery
automotive started from a relatively SIMILAR
LEVEL in 1995 strongest DECLINE of ULC in
machinery, basic meteals and investment goods! - More stable (but slightly NEGATIVE) development
in AUTOMOTIVE and TOTAL MANUFACTURING, slightly
POSITIVE in TOTAL INDUSTRIES!
9Fig. 6 The macro-economic level Changes in
real unit labour costs (index 1995100, AMECO)
10Ad. Fig. 6 - Real unit labour costs (index
1995100, AMECO
11Fig. 7 The macro-economic level Changes in
Wages and Salaries (nominal), Eurostat
12Ad. Fig. 7 Wages and Salaries (nominal)
1995-2006
13Trends in wage developments Real Unit Labour
Costs (RULC) and nominal Compensation
- General trends changes 1995-2000 and 2001-06/7
- RULC
- Decreases predominate over increases in EU
countries in both periods considered. - Negative development in both periods BG, PL, LU,
ES, HU, SI, AT, DE - Positive developments in particular in RO, LV
also SW - ? mirrors trend towards DECREASE OF WAGE SHARE in
EU and EUROZONE in particular! - Nom. Wages Salaries
- Stagnation DE (3 2001-06!), AT, BE, NL BELOW
EA13 and EU27 average ? also reflected in CB
results! - Higher Dynamism Baltics, HU, SK, IE, BG ? high
nom. Wage increase NOT reflected in RULC growth
due to soaring inflation!
14Fig. 8 Development Gender Pay Gap (Eurostat
2008)
15CB-Coverage No gender-gap?
16CB-Coverage contd No gender-gap?
17Further wage trends GENDER PAY GAP (GPG) and CB
- Gender Pay Gap (measured as difference between
male and female wages in ) proves to be
persistent, only minor changes towards a
redection of the GPG between 2000-07! - DECREASES larger decreases in IRE, EE, HU, RO
and GR - INCREASES IT, DK, FI, DE!
- REVERSE NORTH-SOUTH divide Low GPG in Southern
countries compared to Scandinavian countries!
Possible reason low employment rates of women in
the Southern European countries. - GPG and CB coverage
- CB coverage rates do NOT largely differ between
men and women, CB rate of women tends to be
HIGHER than that of men (exc. LUX). - Possible reasons
- Top executives sometimes excluded from coll.
Agreements, women underrepresented in this group
of employees - CB coverage in the PUBLIC sector tends to be
higher than in private sector, higher share of
female employees in public sector!
18Fig. 9 Statutory minimum wages 2008, EU27
19Fig. 5 Changes in statutory minimum wages, EU27
20Fig. 10 Increase of statutory minimum wages
2007-08, EU27
21Statutory minimum wages Latest trends
developments in the EU27
- Highest nominal levels (1.200 1.600 EUR) LU,
IR, NL, BE, FR, UK (Eurostat 2008) - Statutory min. wage in of national average wage
(EC 2005) FR (62), IR (56), GR, HU (51 ), BE,
LU (49 ) lowest CZ, ES (32 ), PL (33 ), EE
(34) - Changes 2002-08 STAGNATION in GR, UK (approx. 2
), highest increases SK, BG, PL (approx. 40-50
), LT, EE ( 60), RO and LV (approx. gt 95 ).
BUT rather a catch-up process in LT, RO LV
since prior increases (2002-05) low or even
negative (PL)!
22Tab. 3 Statutory Min. Wages Adjustment
Mechanisms
23Tab. 4 Institutional setting of CB in Countries
with Provisions for Statutory Minimum Wages
24Institutional features of the CB systems in the
EU27
- Factors which strenghten CB and CB coverage rate
in addition to statutory min. wage provisions - Pervasive PRACTICE to EXTEND collective
agreements in BE, ES, FR, PT - Functional equivalents to extension rules
compulsatory membership in employers
association until June 2006 in SI, since then no
obligatory membership in Chambers of Commerce and
Industry BUT important role of formerly
obligatory membership organisations in CB! - Result in all of these countries CB coverage
rate gt 80 !
25Tab. 5 Institutional setting of CB in Countries
WITHOUT Provisions for Statutory Minimum Wages
26Institutional features of the CB systems in the
EU27
- Factors which strenghten CB and CB coverage rate
in countries WITHOUT provisions for statutory
min. wage - PRACTICE to EXTEND coll. agreem. pervasive FI,
functional equivalent in IT (fair pay
constitutional right) - COMPULSORY MEMBERSHIP in employer associations
AT - High UNION DENSITY (gt 70 ) CY, DK, SW, FI ?
countries without extension rules indirect
functional equivalent! - Result CB coverage high (gt 80 ) AT, DK, SW, FI
- Exception In DE NONE of these POSITIVE
institutional requirements are existing
PROBLEM erosion of coll. agreements and danger
of dis-organisation of CB!
27Tab. 6 Wage indicators 2007 (annual changes in
)
28Tab. 6 (contd) Wage indicators 2007 (annual
changes in )
29CONCLUSIONS
- Protracted trend towards wage moderation in terms
of widely negative development of RULC in
EU27/Eurozone in particular COORDINATED
CROSS-BORDER APPROACH ON WAGE BARGAINING!! - STATUTORY MIN. WAGES as instrument to set a floor
to down-ward spiral on wage formation and prevent
poverty FUNCTIONAL EQUIVALENTS (Ghent system,
high union densities, extension rules, compulsory
membership in employer associations) in countries
without rules for statutory min. wages - EUROPEAN INTEGRATED APPROACH ON WAGE POLICY
either statutory min. wage or collectively
negotiated wages ? minimum criteria, e.g. giving
a minimum threshold for minimum wages in of
national average wages! - OMC approach Goals set on the European level
implemented according to national traditions by
national social partners OR - Min. wage policies integrated in a broader
framework of trade union policies on the
transnationalization of CB!