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DEPARTMENT OF HUMAN RESOURCE MANAGEMENT UNI-EUROPA GRAPHICAL ANNUAL COLLECTIVE BARGAINING SURVEY 2003 An analysis by: Professor John Gennard Strathclyde Business School University of Strathclyde GLASGOW United Kingdom February 2004

ANNUAL COLLECTIVE BARGAINING SURVEY 2003 · ANNUAL COLLECTIVE BARGAINING SURVEY 2003 ... This report analyses the outcome of the 2003 collective bargaining round with national

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DEPARTMENT OF HUMAN RESOURCE MANAGEMENT

UNI-EUROPA GRAPHICAL

ANNUAL

COLLECTIVE BARGAINING

SURVEY

2003

An analysis by:

Professor John Gennard

Strathclyde Business School

University of Strathclyde

GLASGOW

United Kingdom

February 2004

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Contents

PAGE

Executive Summary

Introduction

The Purpose of the Survey

2003 Guidelines on Co-ordination of Collective Bargaining

The Questionnaire/Interviews

Economic and Political Environment Surrounding the 2003 Collective

Bargaining Round

Dates and Duration of Agreements

Bargained Changes in 2003 : Quantitative Aspects

Meeting the Quantitative Aspects of the 2003 Guidelines

Bargained Changes in 2003: Qualitative Aspects

Progress to Meeting the Guidelines for Bargaining Claims (2000-2003

inclusive)

Conclusions

2

5

5

7

7

10

11

13

18

19

26

29

Figures:

Tables:

1.

2.

3.

1. 2.

3.

4.

5.

6.

Guidelines on Common Collective Bargaining Objectives Agreed at

2003 Collective Bargaining Conference

Qualitative Aspects Changes to Agreements : 2003

Further Vocational Training Arrangements

Elements in the Questionnaire/Interviews Dates of Agreements

Quantitative Aspects of the 2003 Guidelines: Bargained Wage Rises

Progress on Achieving Guidelines (2000-2003 inclusive)

Achieving the Guideline Target: Number of Countries

Meeting the Guidelines (2000-2003 inclusive)

6

21

25

9 12

13

27

28

28

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Executive Summary

In the 2003 collective bargaining round with national graphical employers’ organisations:

The economic and political environment was difficult. In almost all the countries,

prices for graphical work fell, plants closed, unemployment increased and union

membership fell.

Six affiliates achieved improvements to employment conditions under collective

agreements negotiated before the start of 2003.

Fourteen affiliates negotiated revisions to their existing collective agreements. Five

affiliates were party to one year agreements, seven to two year agreements and two to

three year agreements.

The majority of revised agreements became effective in either January of April.

The average annual bargained wage increase for graphical workers was +2.9%

compared with +3.1% in 2002, +3.3% in 2001 and +4.1% in 2000.

In six countries (Belgium, Denmark, Finland, Iceland, Norway and Sweden) graphical

workers received bargained pay increases in excess of the annual rate of inflation.

This compares with nine in 2002, 11 in 2001 and eight in 2000.

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In three countries (Belgium, Norway and Sweden) graphical workers obtained

bargained wage rises in excess of the Guideline of the sum of inflation plus national

productivity increases. This compares with two in 2002 and one in both 2001 and

2000.

One affiliate was within one percentage point of the Guideline whilst a further three

were within 1 to 1.5 percentage points.

The largest gaps between bargained pay increases and the sum of inflation plus

national productivity increases were in the Netherlands, Italy, Cyprus and the UK.

The average shortfall was minus (-) 1.6 percentage points.

Nine affiliates succeeded in negotiating improvements to the qualitative components

of their collective agreements compared to nine in 2002 and 11 in 2001.

In Sweden, important reductions in working time were negotiated in the Swedish

newspaper sector whilst Belgium and Denmark saw improvements in paid holiday

entitlement. Improvements in vocational training arrangements were implemented.

In Ireland, amongst other things, the national minimum wage and redundancy

compensation payments were increased.

Taking the four collective bargaining rounds (2000-2003) together, the average

increase in the bargained wage is +3.4 compared with an average inflation plus

productivity increase of +4.8% giving a shortfall from the Guideline of minus (-)

1.4%.

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The four year averaged bargained wage increase for graphical workers in general,

exceeds the four year average annual rate of increase in inflation. The real purchasing

power of graphical workers has thus, over the four year period, improved.

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Introduction

This report analyses the outcome of the 2003 collective bargaining round with national

graphical employers’ organisations against the common bargaining agenda agreed at the

Annual Conference on Collective Bargaining held in Elsinor, Denmark on 29 and 30 march

2003. It also evaluates, over the period 2000-2003 inclusive, the progress made by affiliates

in meeting the Guidelines for Common Collective Bargaining Objectives.

The Purpose of the Survey

The main aims of the Annual Collective Bargaining Survey are fourfold. First, it provides an

overview of collective bargaining developments in the year. Second, it monitors progress on

meeting the collective bargaining agenda objectives for the year as established by the Annual

Conference on Collective Bargaining. Third, it helps the Conference to identify, and to

establish, the key priorities for the next collective bargaining round with national graphical

employers’ organisations. Finally, it improves the exchange of information on national

bargaining rounds amongst affiliates and assists UNI-Europa Graphical (UNI-EG) to

influence discussions at the ETUC level about defining and co-ordinating a common

bargaining agenda.

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FIGURE 1:

Guidelines on Common Collective Bargaining Objectives

Agreed at the 2003 Collective Bargaining Conference

1.

Provision of Information a.

b. c. d. e.

Update regularly the Collective Bargaining Survey Reporting of national agreements concluded to UNI-EG Assessment of the bargaining results Continuous monitoring All affiliates are required to participate in the Annual Collective Bargaining Conference

2. On-Line Network a.

b. All affiliates should participate in the on-line information network established in the dialog-on project The network will aim to further improve co-ordination and co-operation between affiliates

3. Social Dialogue All affiliates are required to exert pressure on national employer organisations to engage in European Social

Dialogue/Collective bargaining.

4. Regional Collective Bargaining Support for regional/sub regional collective bargaining committees

5. Guidelines for Bargaining Claim Wages plus qualitative aspects (+) should be at least equal to inflation plus national productivity

(+) Cost Effective Qualitative Aspects

a. Working Hours

Standard working time should not exceed 1,750 hour per year for a full-time worker. The maximum amount of paid overtime should not exceed 100 hours per year after which compensatory time off (at bonus rates) arrangements should be encouraged as an alternative to paid overtime and maximise employment opportunities.

b. Further Vocational Training (FVT)

- - - - - - -

-

Link between FVT, improvement of qualifications and wage increases Establishment of an annual plan for FVT Obligation on employers to inform each employee of the FVT plan Individual right of each employee to FVT Full union involvement in FVT Cost free for employees (except with union consent or by collective agreement) All time spent on FVT is working time – normally it should take place during normal working hours (specifications could be made by collective agreement)

Establishment of monitoring committees in companies

c. Equality -

- - -

Preparation of negotiating aims/guidelines with equality officers Equal pay audits to establish existing situations regarding pay Concrete steps to achieve equality of wages between men and women as stipulated in the European Union Treaty Family friendly policies for good work/life balance

(+) Non Cost Effective Qualitative Aspects

a.

b. c.

Vocational training Equality – including race, disability and gender Health, safety and working environment

6. Transnational Companies

CBC will be asked to look at transnational company level co-ordination

7. Transnational Solidarity

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2003 Guidelines on Co-ordination of Collective Bargaining

These were agreed at the Annual Conference on Collective Bargaining held in March 2003.

The Guidelines are shown in Figure 1. This conference made, relative to the 2002 bargaining

round, two major changes to the Guidelines. First, it was agreed to add a new clause on on-

line network to read:

a. All affiliates should participate in the on-line information network established in

the dialog-on project.

b. The network will aim to further improve co-ordination and co-operation between

affiliates.

Second, the Conference agreed minimum standards to be established with respect to equality

issues. In the establishment of bargaining aims/guidelines, affiliates are to involve equality

officers. Before entering into bargaining, affiliates are to undertake equal pay audits to

establish that existing differences between the pay of men and women are based on objective

factors. Affiliates are also to take concrete steps to achieve equality of wages between men

and women as stipulated in European Union Treaties. It was also agreed that affiliates should

seek to changes existing agreements so that they contain family friendly policies which

provide for good work/life balance.

The Questionnaire/Interviews

The data upon which this report is based was collected by a questionnaire sent in May 2003

to UNI-EG affiliates. The 2003 Survey contained four new questions relative to that used for

the 2002 Survey. A question was included on the number of workers covered by the

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agreement. The three other new questions related to the involvement of equality officers in

the determination of bargaining aims, the use of equal pay audits to establish the objectivity

of existing differences between the pay of men and women and the steps taken by affiliates to

achieve equal pay between men and women.

Useable returns were received from 18 affiliates. Of these, 14 related to new agreements

bargained in 2003 and four to changes becoming effective under agreements signed prior to

2003. Useable information was collected from one further affiliate by face-to-face interviews

with the appropriate unions’ key negotiators. The face-to-face interview was conducted at

the UNI-EG Annual Meeting held in Madrid, Spain in November 2003. Interviews were also

conducted at the same venue with five affiliates to obtain clarification of information

provided in the returned questionnaires.

Table 1 shows the different bargaining issues covered in the questionnaire, and raised in the

face-to-face interview. A tick () denotes useable information showing a change in 2003 in

that bargaining issue. An (X) denotes there were, in 2003, no changes bargained to the

existing collective agreement on that issue. In 2003, for 7 affiliates there were no changes to

the qualitative elements of existing collective agreements.

TABLE 1

Elements in the Questionnaire/Interviews

Country

Start and

Finish Date

of

Agreement

Number of

Workers

Covered

(000s)

Quantitative

Elements

Qualitative Elements

Bargained

Wage Increase

Working

Time

Holidays Vocational

Training

Equality

Issues

Health

&

Safety

Others

Austria X X X X X X

Belgium X X X X

Bulgaria No national agreement negotiated in 2003

Croatia X X X X X X

Cyprus X X X X X X

Czech Republic No national agreement negotiated in 2003

Denmark X X X X X

Finland X X

France X X X X X

Germany X X X X X

Iceland X X X X X X

Ireland X X X X X

Italy X X X X

Netherlands X X X X X

Norway X X X X X X

Portugal X X X X X X

Spain X X X X X X

Sweden X X X X X

United Kingdom X X

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Economic and Political Environment to the 2003

Bargaining Round

The economic and political environment surrounding the 2003 bargaining rounds was, from a

trade union perspective, difficult. In Austria, the graphical industry witnessed rising

unemployment, falling prices, plant closures and redundancies and over capacity. In France,

the economic situation in the industry was no better with many plant closures and/or re-

structuring giving rise to redundancies. In addition, a right wing government was attempting

to undermine worker rights.

In Germany, the graphical employers reported a 5% reduction in turnover relative to 2002

and a 6% fall in staffing levels. They also demonstrated an increasing tendency of complying

less and less with collective agreements and adopting anti-union positions. In addition, the

German government introduced legislation making it easier for employers to declare

employees redundant.

The Italian graphical sector also went through a difficult period whilst in the Netherlands

some 40% of graphical employers claimed to be operating with financial losses. The Dutch

employers organisation also complained that 2003 saw of the loss of significant amounts of

work to the lower cost areas in Europe.

In Portugal, 2003 was a difficult year for the graphical industry. The government introduced

a New Labour Code in which it refused to address trade union concerns over a clause which

permits small companies the right to refuse to re-instate or re-engage workers found to be

wrongfully dismissed.

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In the UK, the economic situation of the graphical industry was also problematic. Many

companies closed down or declared significant numbers of redundancies. This situation, in

part, was attributable to a loss of confidence due to instability in the world economy which,

amongst other things, caused spending on advertising to collapse.

The economic slowdown in the graphical sectors of the different countries of Europe has

meant a decline in jobs and a further decline in the level of trade union membership.

Dates and Duration of Agreements

1. Longer Term Agreements Signed Before 2003

In 2003, in seven countries, affiliates were working under collective agreements negotiated

before the start of the year and which were over one year in duration (see Table 2). In

Denmark and Iceland, four year agreements, both due to terminate at the end of February

2004, were in operation. In Cyprus, a three year agreement, terminating on 31 December

2003 was in operation. This was also the case with the general print sector of Spain. The

paper carton sector of Spain and the general print and the packaging sectors of Sweden

continued to operate under agreements signed in 2002.

2. Agreements Made in 2002

In 2003 collective bargaining round, affiliates in five countries (Austria, Croatia, France

[newspaper sector], Sweden [newspaper sector] and the UK) concluded one year agreements.

Agreements to operate for three years were concluded in the Republic of Ireland and in the

newspaper and press agencies sector of Italy. Two year agreements were concluded in

Belgium, Finland, Germany, Italy (one agreement in the graphical sector and one agreement

in paper and packaging sector), the Netherlands and Norway. In the Czech Republic,

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however in 2003, no national agreement for pay in the graphical industry was concluded (see

below).

TABLE 2

Dates of Agreements

Country Dates and Duration of Agreements No. of Workers

Covered (000s)

Austria Five year agreement. General overall agreement (2001-2006)

One year agreement (1/4/03-31/3/04)

16

Belgium Two year agreement (1/1/03-31/12/04) – General Print

Two year agreement (1/1/03-31/12/04) - Newspapers

15

2

Croatia One year agreement (1/11/02-1/12/03) 1.5

Cyprus Three year agreement (01/1/01-31/12/03) na

Czech Republic No national agreement reached na

Denmark Four year overall agreement (01/3/00-29/2/04) na

Finland Two year agreement (1/2/03-15/2/05) 14

France One year agreement (1/1/03-31/12/03) – Regional Newspapers na

Germany Two year agreement (1/4/03-31/3/05) 100

Iceland Four year agreement (1/3/00-28/2/04) 1

Ireland Three year agreement (1/1/03-31/12/05) na

Italy Two year agreement (1/1/03-31/12/04) – General Print

Two year agreement (1/7/03-30/6/05) – Paper/Packaging

Four year agreement (1/1/03-31/12/06) – Newspapers

35

85

8

Netherlands Two year agreement (1/2/03-31/1/05) 40

Norway Two year agreement (1/4/03-31/3/04) 6

Portugal No national agreement in General Print and Daily Newspapers na

Russia Two year 6 months agreement (19/3/01-31/12/03) na

Spain Two year agreement (1/1/01-31/12/03) – Paper/Carton

Three year agreement (4/5/01-3/5/04) – General Print

140

20

Sweden One year agreement (1/4/03-31/5/04) – Newspapers

Two year agreement (1/4/02-30/4/04) – General Print

Two year agreement (1/4/02-30/4/04) - Packaging

3

8

5

Switzerland No national agreement – trying for new agreement since 2000 na

United Kingdom One year agreement (24/4/03-23/4/04) – General Print 60

Of the 23 collective bargaining agreements listed in Table 2, in eight a wage increase became

effective in January, in two in February, in three in March, in seven in April, and one in May,

in July and in November. As in previous surveys, this indicates the co-ordination of the

anniversary dates of agreements is a feasible option as for most agreements this occurs

in the first five months of the calendar year with peaks in January and April.

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Bargained Changes in 2003 : Quantitative Aspects

Column four of Table 3 shows the percentage bargained increase in pay achieved at the

national level for graphical workers in 15 European countries. The range of percentage

increases in wages varies from a low of +1.5% in France to a high of +5.1% in Norway. The

average annual bargained wage increase for graphical workers in 2003 was +2.9% compared

with +3.1% in 2002, +3.3% in 2001 and +4.1% in 2000. In six countries – Belgium,

Denmark, Finland, Iceland, Norway and Sweden – graphical workers received bargained pay

increases in excess of the annual rate of inflation. This compares with eight countries in

2002.

TABLE 3

Quantitative Aspects of the 2003 Guidelines : Bargained Wage Rises

Country

1 2 3 4

Difference

Column 4

Minus

Column 3

Qualitative

Aspect

Improvement

Guideline Determinants

Increase

in

Inflation

(%)

Increase in

National

Productivity

(%)

Inflation

+

Productivity

(%)

Bargained

Wage

Increase

(%)

Austria

Belgium

Cyprus

Denmark

Finland

France

Germany

Iceland

Ireland

Italy

Netherlands

Norway

Spain

Sweden

United Kingdom

+1.8

+2.0

+4.5

+2.8

+2.1

+1.9

+1.6

+1.8

+4.9

+3.7

+3.2

+3.0

+4.0

+1.5

+2.9

+0.6

+1.0

+1.5

+2.6

+2.0

+1.1

+1.7

+3.3

n/a

+2.0

+2.0

+1.8

+1.2

+0.5

+2.3

+2.4

+3.0

+6.0

+5.4

+4.1

+3.0

+3.3

+5.1

n/a

+5.7

+5.2

+4.8

+5.2

+2.0

+5.2

+1.8

+4.0

+3.2

+3.2

+2.9

+1.5

+1.5

+3.4

+3.1

+2.8

+2.0

+5.1

+3.9

+2.5

+2.8

-0.6

+1.0

-2.8

-2.2

-1.2

-1.5

-1.8

-1.7

n/a

-2.9

-3.2

+0.3

-1.3

+0.5

-2.4

No

Yes

No

Yes

Yes

No

Yes

No

Yes

Yes

Yes

No

No

Yes

Yes

Average +2.8 +1.7 +4.5 +2.9 -1.6

In Austria, a 1.8% increase in wages for graphical workers was negotiated. There is also an

overall agreement dealing with issues other than pay. This was initially concluded in 1979

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and was last revised in 2000 and is due for review again in 2004. In Belgium, under two year

deals, both to terminate at the end of 2004, general print and newspaper workers both

received wage increases. The former received 4% plus a bonus of 100 euros whilst the latter

received 4% plus a bonus of 1%.

In Cyprus, graphical workers receive each January and July an automatic increase in pay

equal to the annual rate of increase in inflation at those times. It is paid as a bonus and is not

consolidated into the basic rate. In addition, a further annual increase arises from collective

bargaining. In 2003, the annual increase in pay from these two sources for graphical workers

was 3.2%.

In Finland, graphical workers received a pay increase of 2.9%. This was granted under a

new national incomes policy Accord signed in December 2002 by the central Finnish social

partner organisations. This agreement, concluded after some weeks of negotiations, runs

from 1 February 2003 to 15 February 2005. In order to facilitate the new national incomes

policy Accord, the Finnish government announced, across the board, income tax cuts of 0.2%

and some reduction in employee unemployment insurance contributions.

In France, a revised wage agreement for regional daily newspaper workers which provided

for a 1.5% annual increase payable in three instalments – 1% from April, 0.3% from August

and 0.2% from October – was implemented. In the general print sector, as in 2002, increases

in pay were negotiated at company level and the average pay increase achieved was 1.9%.

In Germany, a revised pay agreement was agreed after a series of very difficult negotiations

and the imposition by Verdi (Medien), of industrial sanctions. Under the agreement, there

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was a pay pause for three months followed by an increase of 1.5% from 1 July 2003. Eleven

months later, on 1 June 2004, graphical workers will receive a further increase of 1.7%. The

agreement, which will expire on 31 March 2005, also extends, until 31 July 2007, the partial

early retirement agreement concluded in 2000.

In Ireland, following government intervention, a new National Pay Accord was agreed.

Talks had broken down in December 2002 over the issue of pay and the right to union

representation. Government intervention led, in January 2003, to agreement between the

Irish Congress of Trade Unions and the Irish Business and Employers’ Confederation. The

new agreement entitled Sustaining Progress runs for three years from 1 March 2003. It

provides for an increase in pay in the private sector of 7% over 18 months payable in three

phases. 3% is payable for the first nine months, a further 2% for the next six months and a

further 2% for the final three months. In addition, the agreement provides for improvements

in statutory redundancy pay, an increase in the statutory minimum wage from 1 January 2004

to 7 euros per hour (previously 6.35 euros) and for improvements in the procedures by which

trade unions can seek to represent their members. While the overall agreement is to last for

three years, the proposed pay improvements only cover an interim period of 18 months.

Negotiations on the pay increases to apply in the second 18 month period are to begin in

March 2004.

In Italy, the successful negotiation of wage increases was achieved in three sectors. In

January, in the graphical sector, a two year agreement providing for an increase of 5.7% over

the period came into effect. In the same month, the same terms also became operative in the

paper and packaging industry. In April 2003, a new collective agreement for the newspaper

and press agencies sector was signed. As well as a 4.6% wage increase over two years the

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deal provides for an increase in employers’ occupation and social security contributions,

examination of a new job classification system and the creation of various new joint

committees. The 4.6% increase in wages is payable in three instalments – 1 May 2003, 1

January 2004 and 1 July 2004. In May 2003, the employees received a lump-sum payment of

60 euros to compensate for the delay between the expiry of the previous collective agreement

and the commencement of the new agreement.

In the Netherlands, graphical workers received a 2% pay increase payable in two stages.

One percent became available on 1 February 2003 and a further 1% increase payable on 1

November 2003. In January 2004, the parties will review whether additional increases

should become payable in 2004. The agreement is to operate for two years from 1 February

2003 to 31 January 2005.

In Norway, the Norsk Grafisk Forbund negotiated a 5% wage increase with effect from 1

April. The agreement is to run for one year.

In Spain, under a three year agreement signed in January 2001, employees in the paper and

carton sector received a pay increase of 3.9%. This was roughly in line with the agreement,

made at the end of January 2003, between the four central social partner organisations to

accept for one year a commitment to moderate pay increases. Although an exact figure for

pay growth was not laid down, the agreement stated pay growth should be in line with the

2003 forecast for inflation plus productivity giving a target of 3%.

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In Sweden the newspaper sector saw a revised collective agreement providing for a 3.2%

increase over a 14 month period beginning on 1 April 2003. On an annual basis, the increase

is estimated to be 2.5%.

In the United Kingdom, changes to the national agreement in the English and Welsh

graphical industry saw a wage increase of 2.8%. The agreement also committed the GPMU

and the employers organisation to establish a joint review body under an independent

chairperson, to address the key employment relations issues facing the graphical industry in

the medium to long term. Such issues are to include existing and proposed employment

legislation and the scope, context and format of the national agreement.

Central and Eastern Europe Group

Returns were received from three affiliates assigned to this group. In the Czech Republic

negotiations to replace the three years agreement that terminated on 31 December 2002 broke

down without agreement. The negotiators had agreed that the country’s national minimum

wage should be introduced into the agreement as the basic minimum monthly rate of pay.

The agreement, however, could not be signed, and implemented, because one member firm of

the employers organisation objected. The constitution of the employers’ organisation permits

any member firm the right to veto any decisions. Majority rule does not prevail and decisions

can only be implemented if they have the unanimous support of all members. At the time of

writing, however, the union and the employers organisation are trying to persuade the

employer concerned to end their objection.

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In Croatia, employees in the graphical industry received no increase in wage. They are

operating under a long term agreement that began on 14 June 1997 and which is due to expire

on 1 December 2003.

In Slovakia, graphical workers received a bargained wage increase of 7% but the annual rate

of increase in inflation was 9%.

Meeting the Quantitative Aspects of the 2003 Guidelines

Table 3 shows the 2003 pay bargaining outcomes against the agreed guidelines of achieving

bargained wage improvements at least equal to the sum of increases in the annual rate of

inflation plus the annual rate of increase in national productivity. In three countries

(Belgium, Norway and Sweden) the guideline target was exceeded. For Norway, this was for

the second successive year. Austria was within one percentage point of achieving the

guideline target whilst three other countries (Finland, Spain and France) were within 1.5

percentage points of the target. In seven other countries (Denmark, Germany, Iceland, Italy,

the Netherlands, UK and Cyprus) the bargained wage increases achieved in 2003 were over

1.5 percentage points below the guideline. As already mentioned above, in six countries the

bargained pay increase exceed that of the annual increase in the rate of inflation. Real wages

(ie the purchasing power) of graphical workers in these countries thus improved in 2003.

Table 3 shows an average shortfall of minus (-) 1.6 percentage points between bargained pay

increases and the sum of inflation plus productivity increases. The largest shortfalls were

found in the Netherlands (-3.2), Italy (-2.9), Cyprus (-2.8), the UK (-2.4) and Denmark (-2.2).

However, of the 15 countries in Table 3 below, the 2003 Guidelines, six negotiated

improvements to the qualitative aspects of their collective agreements. The costs to

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employers of these improvements are not easy to calculate but if an estimate is made then in

the case of Finland, the value of the qualitative changes probably more than offsets the gap

between the achieved bargained wage increase and the sum of inflation plus productivity

increases.

Bargained Changes in 2003 : Qualitative Aspects

Figure 2 shows the qualitative changes to collective agreements coming into effect in 2003.

The number of countries in which such changes were negotiated was nine compared with the

same number in 2002 and 11 in 2001.

Reduced Working Time

France saw the implementation of a new law making it, amongst other things, easier for

companies to implement the legislation governing the 35 hour week. This legislation does

not abandon the principle of a 35 hour week but creates more flexibility for the social

partners to negotiate the conditions under which working time reductions are implemented at

individual company level. The flexibility is to be achieved in that henceforth overtime

worked will attract financial payment, unless a sectoral or company agreement, allows for

compensation in the form of time off. This replaces the former system, under which the first

four hours of weekly overtime were compensated by time off and the following four hours

attracted a payment.

A new agreement signed in the newspaper industry of Sweden provided, from 1 April 2003,

for a reduction in weekly working time of 12 minutes. This figure, when annualised, is the

equivalent to one day less work per year. It also brings the newspaper sector into line with

the general printing and packaging sectors (see Collective Bargaining Survey, 2002).

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In Germany the provision negotiated in 2000 whereby employees aged 55 and over are

entitled to work part-time on the basis of a voluntary contract was extended for a further three

years to 31 July 2007.

Increase in holiday Entitlement

In Belgium, agreements in the newspaper and general printing sectors provided for increased

paid holiday entitlement based on length of service with the company,

In Denmark, from 1 May 2003, graphical workers became entitled to one additional day of

paid holiday. This now gives an annual figure of six weeks paid holiday entitlement plus

bank holidays.

Improvements in Vocational Training Arrangements

In Italy, the new collective agreement for graphical workers established a specific joint

training agency responsible for workers’ vocational training and re-qualification within the

sector’s existing national vocational training arrangements to deal with the continuous

technological change in the sector. Job classifications will also be adjusted to technological

development.

In Finland, the social partners agreed to measures to safeguard the career development and

professional knowledge of shop stewards and of health and safety representatives. In

addition, they will have access to computers, internet and e-mail connections to assist them in

their role as trade union representatives.

FIGURE 2

QUALITIATIVE ASPECT CHANGES TO AGREEMENTS : 2003

Reduction in

Working Time

Increases in

Holiday Entitlement

Improvements in

Vocational Training

Equality

Provisions

Health and Safety

Provision

Other Significant

Changes

France

Legislation introduced to create

more flexibility for the social

partners to implement the 35-

hour week.

Belgium Increased holidays based on

length of service

Italy A joint training agency

established to deal with the

continuous technological

evolution of the graphical sector.

An evaluation of the current job

classification system to be

undertaken

Finland

Partial care leave scheme

extended to cover a child’s first

years’ at school

Denmark

Law changed so that

establishment of a Safety

Committee is only required if

there are 10 employees in a

workplace

Belgium

Improved sick pay

Sweden

Weekly working hours in the

newspaper sector reduced by 12

minutes per week.

Denmark

One additional day of paid

holiday entitlement from 1 May

2003 to give 6 weeks paid

holidays per year

United Kingdom

Employers recognised the

entitlement of union learner reps

to reasonable paid time off and

facilities to carry out their

statutory duties

United Kingdom

Employers acceptance of their

duties under the government’s

new flexible working

regulations, allowing eligible

employees to request changes in

their working time

arrangements for child care

reasons

Finland

The time Health and Safety Reps

spend carrying out their duties is

now subject to a minimum limit

Finland

Minimum compensation of trade

union reps (in addition to salary)

increased to 48 euros per month

Germany

Extension of three years (to 31

July 2007) to provision whereby

employees aged 55 and over are

entitled to work on a part-time

basis.

Finland

Safeguard of career development

and professional knowledge of

shop stewards and health and

safety reps

Ireland

Improved procedures whereby

unions can seek to represent their

members. Improved statutory

redundancy pay

Italy

Various new joint committees set

up. Increased employers’

occupational social security

provision.

The Netherlands

Joint Task Force set up to

evaluate labour costs in the

sector and to analyse pension

costs

United Kingdom Workplace reps to have access to

e-mail and internet facilities

where resources permit to assist

them in carrying out their duties

and for communication with

members and full-time officers

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In the United Kingdom, the graphical employers have agreed that workplace Union Learner

Representatives be given reasonable time off and access to facilities to carry out their

statutory duties.

Equality Provision

Finland, witnessed a reform of the existing system of partial care leave, under which the

parents of young children may reduce their working hours on an unpaid basis during the year

in which the child first starts school. This right applied to only one parent. From 1 January

2003, the leave was extended upto a child’s second year at school. Furthermore, both parents

are now eligible for partial care leave and are entitled to an allowance of 50% of the current

parental allowance.

In the United Kingdom, the graphical employers recognised their obligations under the

Government’s Flexible Working Regulations, which permit eligible workers to request

changes in childcare reasons in their working time arrangements.

Health and Safety Provision

In Denmark, with effect from 1 January 2003, the law (not the collective agreement)

changed so that establishing a Safety Committee only becoming an obligation on an

employer if they employ 10 employees or more. Previously, the limit was the employment of

five or more workers.

In Finland, the National Incomes Policy Accord agreement provided that the full-time health

and safety representatives spend carrying out their duties would be subject to a minimum

limit.

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Other Significant Changes

Graphical and newspaper workers in Belgium, received improved sick pay provisions whilst

in Finland the minimum compensation paid (in addition to normal salary) by employers to

trade union representatives was increased to 48 euros per month.

In the graphical industry of the Netherlands, the social partners established a joint Task

Force to evaluate the sector’s labour costs and to analyse the cost of employers providing

pensions.

In the United Kingdom, the employers agreed that trade union workplace representatives

should have access to e-mail and internet facilities in companies, where resources permit, to

assist them in carrying out their duties and for effective communications with their members

and full-time officers.

In Italy, the revised graphical industry collective agreement provided for a 1.4% increase in

employers’ occupational social security contributions which are allocated to the

supplementary national pension funds. The supplementary pension contribution rate is now

equal to 18.55% of total taxable income (18.05% is paid by the employer and 0.5% by the

worker). In addition, under the agreement, new issues are added to the list of subjects that the

print industry social partners discuss at an annual meeting. These new issues are the

production and employment situation, information on new activities, such as the ‘free press’

and the re-organisation and new technology implementation plans of companies that have

different corporate names but a single owner.

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In Ireland, the national tripartite agreement entitled Sustaining Progress also contains a

provision to amend the Redundancy Payments Acts to improve statutory redundancy

payments. The former rates of half week’s pay for each year served under the age of 41 and

one week’s pay for each year served over 41 are to be increased to two weeks’ pay per year

of service regardless of age and with the bonus week retained in the calculation of payments.

The agreement also commits the Irish government to introduce legislation to support the right

to organise and be represented. Unions are able to obtain a binding Labour Court

determination on pay and conditions against employers who refuse to recognise workers’

right to be represented by a union.

Vocational Training Arrangement

The 2002 Collective Bargaining Conference in Rome established minimum standards to be

achieved by affiliates in the area of vocational training arrangements. The 2003 Collective

Bargaining Questionnaire collected information on the extent to which these minimum

standards already exist. The results are shown in Figure 3.

In the majority of the countries, employers are under no obligation to inform each employee

of the further vocational training plan envisaged for them. It is also the majority situation

that there is no full union involvement in vocational training arrangement decisions. There is

also an absence of committees to monitor the quality and quantity of vocational training

provided. Most graphical workers in Europe, however, do receive vocational training free of

charge and in normal working hours.

FIGURE 3

Further Vocational Training Arrangements

Country

1 2 3 4 5 6 7 8

Link between

FVT

Improvement

of Qual and

Wage Increases

Annual Plan

For

FVT

Employer to

Inform each

Employee of

FVT Plan

Right of

Employee to

FVT

Union

Involvement in

FVT

FVT

Provided Free of

Charge

FVT

Takes Place in

Working Hours

Existence of

Monitoring

Committees

Austria Yes No No No No Yes Yes No

Belgium No Yes No Yes No No Yes No

Croatia No No No Yes Yes Yes No Yes

Czech No No No No No Yes Yes No

Denmark No response

Finland No Yes Yes No Yes No No No

France Yes Yes Yes Yes Yes Yes Yes No

Germany No No No No No No No No

Iceland No response

Ireland No response

Italy No No No No No No No No

Latvia No No No Yes No Yes Yes No

Netherlands Yes Yes Yes Yes Yes Yes Yes Yes

Norway No Yes Yes Yes Yes Yes No Yes

Portugal No response

Spain No response

Sweden No response

Switzerland No Yes Yes No No Yes Yes Yes

UK No No No No Yes Yes Yes No

Total Responses Yes = 3 No = 11

Yes = 6 No = 7

Yes = 5 No = 8

Yes = 6 No = 7

Yes = 5 No = 8

Yes = 9 No = 4

Yes = 8 No = 5

Yes = 4 No = 9

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Progress to Meeting the Guidelines for Bargaining Claims : 2000-

2003 Inclusive

Over the past four years, graphical unions across Europe have experienced difficulties in

achieving bargained wage settlements that equal the sum of increases in the annual average

rate of inflation plus average annual increases in national productivity. Table 4 provides data

for 14 European countries for the bargaining rounds of 2000-2003 inclusive. Taking the four

year period as a whole, only in Sweden in 2000, in the Netherlands in 2001, in Germany and

Norway in 2002 and in Belgium, Norway and Sweden (newspaper sector) in 2003 did

graphical unions negotiate bargained wage increases which exceeded this Guidelines target.

In two (2000 and 2003) of the four years, however, a number of affiliates achieved bargained

pay increases which came within 0.5 of a percentage point of the target (see Table 5). In

2003, no affiliates came this close although one (Austria) was only one percentage point

below achieving the Guideline target. In 2003, a greater number of affiliates were between

one and 1.5 percentage points below the guideline target than in the previous three collective

bargaining rounds.

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TABLE 4

Progress on Achieving Guidelines : 2000 – 2003 Inclusive

Country

Guideline Determinants 3 4 5

Qualitative

Aspects

Inflation

+

Productivity

Bargained

Wage

Increase

%

Difference

Col 4

Minus

Col 3

Increase

in

Inflation

%

Increase

in

National

Productivity

%

AUSTRIA

2000

2001

2002 2003

Av

+3.0

+2.9

+1.6 +1.8

+2.3

+2.4

+2.2

+1.2 +0.6

+1.6

+5.5

+5.1

+2.8 +2.4

+3.9

+2.0

+2.3

+2.7 +1.8

+2.2

-3.4

-2.8

-0.1 -0.6

-1.7

NO

NO

NO NO

BELGIUM

2000 2001

2002

2003

Av

+3.2 +3.8

+2.6

+2.0

+2.9

+1.2 +1.3

+1.0

+1.0

+1.1

+4.6 +5.1

+3.6

+3.0

+4.0

+1.0 +2.2

+3.2

+4.0

+2.6

-3.6 -2.9

-0.4

-1.0

-1.4

NO YES

YES

YES

CYPRUS 2000

2001

2002

2003 Av

+4.1

+2.0

+3.5

+4.5 +3.5

+2.7

+2.1

+3.5

+1.5 +2.5

+6.8

+4.1

+7.0

+6.0 +6.0

+4.6

+3.2

+6.7

+3.2 +4.4

-2.2

-0.9

-0.3

-2.8 -1.6

NO

NO

YES

NO

DENMARK

2000

2001 2002

2003

Av

+2.9

+3.1 +2.5

+2.8

+2.8

+1.8

+1.9 +1.9

+2.6

+2.1

+4.7

+5.0 +4.4

+5.4

+4.9

+3.7

+3.8 +3.5

+3.2

+3.6

-1.0

-1.2 -0.9

-2.2

-1.3

YES

YES YES

YES

FINLAND 2000

2001

2002

2003 Av

+4.2

+3.2

+2.5

+2.1 +3.0

+1.6

+3.4

+2.4

+2.0 +2.4

+5.8

+6.6

+4.9

+4.1 +5.4

+3.1

+2.3

+2.3

+2.9 +2.7

-2.7

-4.3

-2.6

-1.2 -2.7

YES

YES

NO

YES

GERMANY

2000

2001

2002 2003

Av

+2.5

+3.6

+1.6 +1.6

+2.3

+1.1

+3.0

+0.5 +1.7

+1.6

+3.6

+6.6

+2.1 +3.3

+3.9

+3.0

+2,5

+3.4 +1.5

+2.9

-0.6

-4.1

+1.3 -1.8

-1.3

YES

YES

NO YES

IRELAND

2000 2001

2002

2003

Av

+6.2 +4.1

+5.0

+4.9

+5.1

+3.9 +4.7

+1.9

na

na

+10.1 +8.8

+6.9

na

na

+5.0 +7.5

+4.0

+3.1

+4.9

-5.1 -1.3

-2.9

na

n/a

YES YES

NO

YES

ITALY

2000

2001

2002 2003

Av

+2.7

+2.9

+2.4 +3.7

+2.9

+0.3

+1.8

+1.0 +2.0

+1.3

+3.0

+4.7

+3.4 +5.7

+4.2

+2.5

+2.5

+1.4 +2.8

+2.3

-0.5

-2.2

-2.0 -2.9

-1.9

YES

YES

YES YES

LUXEMBOURG

2000 2001

2002

2003

Av

+3.2 +2.1

+1.7

na

na

+1.6 +1.9

+0.9

na

na

+4.8 +4.0

+2.6

na

na

+1.5 +1.5

+1.5

na

na

-3.3 -2.5

-1.1

na

na

NO NO

NO

NO

NETHERLANDS 2000

2001

2002

2003 Av

+2.9

+2.1

+4.5

+3.2 +3.2

+1.5

+1.4

-0.8

+2.0 +1.4

+4.4

+3.5

+3.7

+5.2 +4.2

+4.0

+4.0

+3.0

+2.0 +3.3

-0.4

+0.5

-0.7

-3.2 -2.5

YES

YES

YES

YES

NORWAY

2000

2001 2002

2003

Av

+3.5

+4.0 +1.3

+3.0

+3.0

+0.6

+1.8 +1.1

+1.8

+1.3

+4.1

+5.8 +2.4

+4.8

+4.3

+3.8

+4.2 +3.5

+5.1

+4.2

-0.3

-1.6 +1.1

+0.3

-0.5

YES

YES YES

YES

SPAIN 2000

2001

2002

2003 Av

+3.0

+4.2

+3.1

+4.1 +3.6

+2.2

+2.5

+1.1

+1.2 +1.8

+5.2

+6.7

+4.2

+5.2 +5.3

+3.1

+3.0

+2.9

+3.9 +3.2

-2.1

-3.7

-1.3

-1.3 -2.1

NO

YES

YES

NO

SWEDEN

2000

2001 2002

2003

Av

+1.0

+3.1 +2.2

+1.5

+2.0

+2.5

+2.3 +1.5

+0.5

+1.6

+3.5

+5.4 +3.7

+2.0

+3.7

+3.8

+4.5 +3.0

+2.5

+3.5

+0.3

-0.9 -0.7

+0.5

-0.2

NO

YES YES

YES

UNITED KINGDOM

2000 2001

2002

2003

Av

+3.3 +2.6

+1.5

+2.9

+2.6

+2.3 +2.2

+0.9

+2.3

+1.9

+5.6 +4.8

+2.4

+5.2

+2.8

+2.9 +3.1

+2.2

+2.8

+2.8

-2.7 -1.7

-0.2

-2.4

-1.8

YES YES

YES

YES

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TABLE 5

Achieving the Guideline Target : Number of Countries

Bargaining

Round

Guideline

Achieved

Wage Increase Within:

Total 0.5 Percentage

Point of

Target

One

Percentage

Point of

Target

1.5

Percentage

Points of

Target

In Excess

Of 1.5

Percentage

Points of Target

2000

2001

2002

2003

1

1

2

3

3

0

4

0

0

2

4

1

0

1

2

3

10

10

2

7

14

14

14

14

Table 6 shows for each of the four bargaining rounds separately and for the four as a whole

the average increase in inflation, the average increase in national productivity, the average

increase in the bargained wage and the average shortfall from the inflation plus productivity

increases Guideline. Relative to 2002, 2003 saw a significant deterioration in the shortfall

from the Guideline target. This undoubtedly reflects the difficult economic and political

environment in which the 2003 bargaining round took place. Taking the four collective

bargaining rounds together, the shortfall from the Guideline is minus (-) 1.4 percentage

points.

TABLE 6

Meeting the Guidelines : 2000-2003 Inclusive (n = 14)

Year

(1)

Annual

Increase in

Inflation

(%)

(2)

Annual

Increase in

National

Productivity

(%)

(3)

Annual

Increase in

Inflation

Plus

Productivity

(%)

(4)

Bargained

Wage

Increase

(%)

(5)

Difference

Col (4)

Minus

Col (3)

2000

2001

2002

2003

+3.3

+3.1

+2.7

+2.8

+1.8

+2.3

+1.3

+1.7

+5.1

+5.4

+4.0

+4.5

+4.1

+3.3

+3.1

+2.9

-1.0

-2.1

-0.9

-1.6

Average +3.0 +1.8 +4.8 +3.4 -1.4

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Table 4 shows that for six countries (Cyprus, Austria, Denmark, Germany, Italy and the UK)

2003 saw a trend in the reduction, in successive years, in the gap between the bargained wage

increases and Guideline target reversed. Over the last three wage bargaining rounds in Spain

and Finland, wage settlements have moved, in each successive year, closer towards achieving

the Guideline target. In the Netherlands, the trend has been the reverse, namely the size of

the gap has been increasing. In Norway, Sweden and Belgium, over the four year period, the

gap in successive years between bargained wage increases achieved and the Guideline target

has not only been narrowed but in 2003 was exceeded.

Table 6 shows that taking the period 2000-2003 inclusive, the average bargained wage

increase (+3.4%) achieved for graphical workers in Europe through national level bargaining,

exceeded the average annual increase in inflation by +0.4%. The real purchasing power of

graphical workers has, on average, been maintained. In the 2003 bargaining round in six

countries graphical workers received annual pay increases greater than the rate of increases in

inflation. In the four year period, this is the lowest number of affiliates to achieve this. The

corresponding figures for 2002 were nine, for 2001 11 and 2000 eight.

Conclusions

The 2003 collective bargaining round took place in a difficult economic and political

environment. This has been reflected in the bargaining outcomes for the year in that:

The average level of bargained wage increase was the lowest achieved in any of the

last four years.

Relative to previous years the lowest number of affiliates achieved a bargained wage

increase in excess of the annual average increase in inflation

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Relative to previous bargaining rounds, the number of affiliates obtaining changes to

the qualitative aspects of their collective agreements was lower than 2001 but the

same number as for 2002.

The number of affiliates, relative to previous years, negotiating qualitative changes to

their agreements such that when a financial estimate is made of the costs of these to

employers they at least equal, if not exceed, the gap between the bargained wage

increase and the sum of inflation plus national productivity increases, was the lowest.

The gap between the bargained wage achieved and the Guideline was almost double

that for 2002.

In six countries the trend in three successive years, towards narrowing the gap

between the bargained wage increase and the Guideline target was reversed.

The year, however, also witnessed some important achievement. The highest number ever of

affiliates succeeded in negotiating bargained wage increases in excess of the sum of inflation

increases plus productivity increases. Taking the last four collective bargaining rounds in

total the average bargained wage increase exceeds the average annual increase in inflation by

0.4 per cent. The real purchasing power of graphical worker over the last four years has thus

been maintained. Wage increases that equal inflation rises can be seen as an absolute ‘floor’

under which wage advancements should not fall.

The assessment of progress towards meeting the Guideline of pay increases, at least equal, to

the sum of average annual increases in inflation plus national productivity should not be seen

as a test where there are winners and losers/those above or below the Guideline. It has

always to be borne in mind that the co-ordinated collective bargaining policy is based around

a Guideline, not a mathematical formula. The Guideline must be seen as a step in a process

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in which affiliates discuss with each other the issues relevant to collective bargaining.

Affiliates should use the Guideline as a framework in which to explain to each other why

their wage demands/settlements deviate from the sum of inflation and productivity.