Labor Unions an essential change agent in creating a more competitive company

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Labor Unions - an essential change agent in
creating a more competitive company

• A case study from the finance sector in Iceland
• Sigurdur Albert Armannsson

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Sigurdur Albert Ármannsson

• Background
• Trained teacher B.Ed.
• 13 years as a teacher at Bifrost Business School
• Present position Training and Information
  Officer of the Union for finance Employees in
  Iceland
• Chairman of the Ministry appointed Council for
  Vocational Training in Finance and Commerce
  (since 2004)
• Working on my thesis for MA in Human Resource
  Management

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Content

• Background info on situation in Iceland
• Summary from data
• Opportunities and union activity

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Development in brief

• 1998 Privatization of state banks in Iceland
• Tremendous growth of financial services
• Expansion from domestic to international
  operations
• A complete shift in the education level of new
  recruits in the finance sector
• A shift of focus from service to selling

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Finance sector - Iceland 2005
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Age of employees Nordic
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Data analyzed, on education level and content of
education

• Survey of member attitudes toward the work of the
  Union, autumn 2005
• Applications for grants from the union education
  fund 2003 2006.
• Survey of the wage level in the finance sector
  2004

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Education level of Finance employees Oct 2005
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of applicants for grants from education fund /
time on the job
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Years on the job vs content of studies 2005
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Present trend in employment in the finance sector
in Iceland

• 90 of new recruits for the last 2 3 years have
  university education as entrance qualification
• Increased number of male recruits

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Present channels of education

• In house training, in house trainers
• No study points
• In house training, outside vendors
• Study points / or not ?
• Formal education system, formal education
• Always formal acknowledgement of study

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Opportunities for the Union?

• How can the union actively contribute to
  increased education opportunities of those having
  the lower formal qualifications
• - while still being attractive to members already
  holding a university degree
• - and at the same time ... ??

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Opportunities in the environment

• Increased supply of business education
• Positive attitudes towards studying along with
  job
• Public awareness of the need to increase
  knowledge and skills
• Union funds for education

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Union initiatives to meet educational needs of
members

• Shop stewards as change agents
• Creation of bridge programs
• Picking of existing opportunities providing a
  menu fit for studies
• Initiating development of programs provided by
  university faculties
• Press for in-house training to provide valid
  study points where applicable

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How to increase education level

• Union repeatedly signalling - increased education
  increased opportunities
• Bridge programs for members with less than 4
  years .......
• Education grants from unions and banks
• Validation of competencies Leonardo project
  http//vow.siae.si/index.php?nid10

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Project on validation

• LEONARDO The Value of Work
• Iceland, England, Denmark, Sweden, Slovenia,
  Cyprus
• To devise a system to validate competencies
  aquired at work
• Target group older workers / having worked in the
  sector for a certain time. (age35, 10 years on
  job, little formal education

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Motives why study?

• When conditions in a sector are changing rapidly
  it creates more drive to aqquire education (Mike
  Rigby 2002 Spanish trade unions and the provision
  of continuous training Partnership at a distance
  
• Education as a means to improve the bargaining
  position. Three main options?
• Through collective agreements
• Through personal salary increases/personal
  promotion
• By having more valuable skills to sell/be able to
  master more complex and better paid jobs e.g.
  through increased education and training

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Results of Union activity

• Increased awareness among all members
• 13 of members with lowest formal education have
  finished a bridge program starting them
• New channels for finance employees to enter
  university
• New specialized study lines at Master level

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Conclusion

• When it comes to education ...
• Unions have obligations towards members
• And numerous opportunities to take active part in
  shaping a brighter future for their members and
  the community
• Members with little formal education are less
  defensive to signals from the unions
• So why shouldnt the unions meet expectations and
  get on with it?