Brussels, 01 December 2004
1. The Resolution approved by the Executive Committee on 18-19 March 2004 underlined the importance of bolstering the coordination of collective bargaining, as indicated in the Prague Congress' Action Programme. This decision now appears even more important in the light of recent action taken in many European countries which could worsen existing contractual and working conditions for workers.
2. In fact, a clear strategy is currently being adopted aimed at: prolonging the working week, setting conditions on bargaining on flexible working hours and reducing the hourly wage, especially in those cases where companies require equal work for equal pay (and thus an increase in hours if wage increases are to be granted). At the same time, there has been an increase in the subcontracting and outsourcing of work by companies and in the precariousness of the labour market. This strategy is also designed to induce the decentralisation of collective bargaining, so as to weaken and/or replace the cover and guarantees offered by sectoral collective agreements. Similarly a growing part of the workforce, in particular professional and managerial staff or persons with so-called autonomous decision-taking powers are excluded from the scope of collective agreements on national, sectoral and company level. The fundamental aim of this attack is to reduce the cost of goods and services by reducing labour costs.
3. To this end, employers often threaten to relocate companies to countries with lower labour costs, something which would have serious consequences for jobs and for the survival of the production sites themselves. In truth, this attack is designed to get the workforce to pay for the consequences of mismanagement involving marketing strategy, delays in introducing technological innovation and/or investment policies, and uncompetitive processes and products.
4. This technique of blackmailing the workforce with the threat of relocation to new EU member states and, in particular, to future member states, is totally unacceptable for the very reason that the process of European unification has created the ideal conditions for a larger economic and social area in which the
European productive base should be allowed to expand and develop rather than narrow. Moreover, it is the new member states which are currently experiencing significant economic growth, wage increases and increased contractual cover for their workers - albeit to different degrees.
5. For this reason, we believe it is the duty of the European institutions to reject any strategy aimed at reducing the purchasing power and rights of workers. Accordingly, we cannot agree with the positions adopted by the ECB and ECOFIN whereby they simply ask workers and the unions to moderate wage claims, while asking new member states to adopt stringent Maastricht criteria, thus jeopardising the process of economic and social growth which is essential to Europe as a whole.
6. Moreover, the ETUC Executive Committee is of the opinion that any industrial strategy based on reducing labour costs and workers' rights is fundamentally mistaken since it would plunge Europe into a downward spiral characterised by the impossible pursuit of the lowest possible labour costs. This, in turn, would undermine both the quality of competition and social unity, and have a disastrous impact on the economic foundation of Europe. In fact, slowing wage rises would lead to a drop in consumption and domestic demand in the present phase of economic slowdown. Increasing working hours would lead to unbearable conflict within the labour market and run counter to an increase in the employment rate, which is contrary to the very same Lisbon objectives. Relocations designed to reduce costs and rights would risk dividing the workforce and the population as a whole, thus negating the value of both European unification and the constitutional Treaty itself.
7. For this reason, the ETUC Executive Committee supports a different line on both the economic plan for a form of competition that confirms the Lisbon strategy - and thus the quality of growth - and on individual contractual terms. From this point of view, our main points may be summarised as follows:
8. Wages - As confirmed by the 2003 Collective Bargaining Report, real wages, and not just nominal wages, have reached the limits of their purchasing power - with very few exceptions - and in some countries they have in fact gone down. Moreover, for several months now the cost of many raw materials - and of oil in particular - has been rising, and this has had a significant impact on the cost of living. However, there has been a degree of economic growth, albeit at an unsatisfactorily slow rate, which, according to all indicators, should continue next year. The ETUC Executive Committee demands that part of this growth be earmarked for Europe's workers, not only in the form of tax measures, but also in the form of a wage policy designed to defend and bolster the purchasing power of wages in 2005. The ETUC Executive Committee stresses that real wage increases in line with productivity will not have a negative impact on the dynamics of inflation, but will, on the contrary, encourage consumption and domestic demand.
9. Working hours - The Executive Committee is fully aware that an increasingly open economy leads to company reorganisation, restructuring, mergers etc., and that market fluctuations sometimes require flexible working hours. For this reason, collective bargaining on working hours represents a consolidated practice for unions at all levels. The fundamental objective has always been to strike the right balance between company demands and workers' needs and safety. However, the problem today, especially in certain countries, is not in dealing with individual company cases, but in dealing with a generalised process designed to bring about a widespread increase in working hours. The ETUC Executive Committee reaffirms that it is totally opposed to any general increase in working hours; historically the trade union movement has always aimed to reduce working timing with the objective of improving working conditions and the employment situation. It also believes that, with few exceptions, wage policy cannot be separated from policy on working hours: in other words, any increase in working hours must be accompanied by an increase in the wages of workers. The Executive Committee once again stresses its firm opposition to any unilateral use of flexibility by companies, as would occur in the case of the extending of the periods in question. For this reason, the Executive Committee confirms the position adopted by the ETUC with regard to the proposed change in the European directive on working hours.
10. Contractual decentralisation - As stated in the Executive Committee's resolution in March of this year, the Executive Committee confirms that, in view of an upturn in the processes leading to the lengthening and breaking-up of the productive cycle and the labour market, and given the substantial increase in SMEs, the most suitable cover in terms of worker protection is that provided by sectoral collective agreements. Of course, the Executive Committee also confirms the importance of contractual protection in the workplace, so as to be in a better position to intervene with regard to working conditions, work organisation and productivity. Under no circumstances categories of workers can be excluded from the scope of collective agreements for reasons linked with their specific function, position or role inside the company, in particular professionals and managerial functions. Consequently, the Executive Committee underscores its pledge to create and reinforce collective agreements in all countries where such agreements are few and far between. It also reiterates its pledge to extend union action to all workplaces. To this end, the Executive Committee pledges its firm opposition to any legislation regarding the collective bargaining system that could jeopardise the independence of the unions and employers' organisations. Accordingly, the Executive Committee underscores the fact that only the unions and employers' organisations may decide on any possible modifications to the collective bargaining structure in the framework of sectoral collective agreements.
11. Workers' rights - The Executive Committee reaffirms the principle of equal rights and duties for all workers. The basis of this principle is equal pay for equal work. For this reason, there is a need to promote a stronger, more consistent campaign in order to prevent the different forms of employment contracts from generating wage differentials. The wage differential between men and women continues to be substantial (on average about 15-16%) and the gap is being closed too slowly, apart from one or two exceptional cases. The Executive Committee demands, once again, that significant measures be taken in national and sectoral collective bargaining, and with regard to reviewing the systems of classification and evaluation. It is equally important that the results of the Action Framework for gender equality be utilised within the context of the European social dialogue, in which wage parity is a fundamental issue. The same commitment is required with respect to young workers. On continuing training, it is necessary to combat the continuous underestimation of, and underinvestment in, training by companies. The important experiences of certain countries, where a portion of financial resources is earmarked for establishing special sectoral or inter-sectoral funds for continuing training, are the best direction for us, and one that we should be capable of extending and implementing across the board. These experiences are an essential element in confirming the quality of work and professional skills of workers as a prerequisite for European competition in the global framework. The same European framework agreement signed by the trade unions and employers' organisations in 2002 requires consistent action at national level for it to be implemented and for the development of workers' qualifications and professional skills.
12. Promotion of social unity - The Executive Committee confirms that European unification is an invaluable opportunity for social and economic growth for everyone. Accordingly, the key objective must be the gradual, continuous harmonisation of the rights and contents of the European social model. Where collective bargaining is concerned, the Executive Committee would like to underscore in particular the importance of reinforcing the forms and bilateral structures of unions and employers' organisations. To this end, current joint action within the framework of the European social dialogue could constitute an important benchmark in creating a stronger degree of representation of unions and employers' organisations, and thus give trade unions a greater say in collective bargaining and organisational matters. Furthermore, the Executive Committee reaffirms that we must see an increasingly consistent and coordinated European policy - involving the Federations themselves - aimed at guaranteeing the quantitative and qualitative growth of the present rate of contractual cover, and at extending contractual safeguards and guarantees to the sectoral and inter-sectoral levels. Another fundamentally important commitment is developing workers' rights and democracy at the workplace. To this end, the extension of union representation within companies, starting with the large multinational groups, is a key objective, and one that is also designed to defeat all efforts by companies to block and/or influence our presence in the workplace. There is also a need to strengthen union coordination and monitoring, especially in cross-border areas, using the experience of the ITUCs, so as to counter all social dumping policies in an increasingly effective manner.
13. Reinforcement of, and improvements to, our action - The current attack requires an increasingly effective defensive capacity, but it also requires union action at all levels. The basis of a true union 'campaign' capable of dealing with all the daily problems we have to face, especially in certain countries, requires a stronger, more effective system of exchanging knowledge and information at all levels. From this point of view, the experience of the Doorn Group is of vital importance, as confirmed by recent action in Berlin this past October. The ETUC is fully committed to pursuing this objective, as evidenced by: the ongoing work of the Collective Bargaining Coordination Committee; the creation of special websites providing real-time access to specific issues, beginning with the one on working hours; improvements to the newsletters; the improvements in questionnaires and national reports on collective bargaining; and the commitment to a more closely coordinated form of working at both national - as for instance in the case of the countries of the Euro-zone - and sectoral levels. All of this confirms the fact that the strengthening of collective bargaining at all levels constitutes one of the fundamentally important strategic priorities for a fairer, more cooperative Europe.
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