FB Tarif Vorstand EUCOBAN Survey Steel Industry Collective Agreements in the European Steel Industry 22nd/23rd October 2012 industriAll Sectoral Steel Committee EUCOBAN Survey Steel Industry FB Tarif Vorstand General trends in european collective bargaining policy Current collective agreements in European steel industry Summary and Outlook VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 2 EUCOBAN Survey Steel Industry FB Tarif Vorstand General trends in european collective bargaining policy Current collective agreements in European steel industry Summary and Outlook VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 3 General trends in European Collective Bargaining Policy (1) FB Tarif Vorstand 2010 Economic recovery in most of the European countries after the deep crisis 2008/09. Cooling down of economic growth in 2011, and expectation of a recession 2012/13. Increase of unemployment rate (EU-27average 2011%: 9.7; 2012: 10.3%) Decrease of real wages in Europe: EU-27 average 2011: -0.9%; 2012: -0,5 %) Deep negative impact of the Austerity Package on wages and economic growth. VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 4 General trends FB Tarif Vorstand Development of the real wages in Europe in 2012 (in % compared to the prior year). VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 5 EUCOBAN Survey Steel Industry FB Tarif Vorstand General trends in european collective bargaining policy Current collective agreements in European steel industry Summary and Outlook VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 6 Crude Steel Production in Europe FB Tarif in Mio. tons (datas rounded) EU-27 1 Germany 2 Italy 3 France 4 Spain 5 United Kingdom 6 Poland 7 Belgium 8 Austria 9 Netherlands 10 Czech Republic 11 Sweden 12 Slovakia 13 Finland 14 Romania 15 Luxembourg 16 Greece 17 Hungary 18 Portugal 19 Bulgaria 20 Slovenia 21 Latvia 2007 210,0 48,5 31,6 19,3 19,0 14,3 10,6 10,7 7,6 7,4 7,1 5,6 5,1 4,4 6,1 2,9 2,6 2,2 1,8 1,9 0,6 0,7 2008 198,1 45,8 30,6 17,9 18,6 13,5 9,7 10,7 7,6 6,9 6,4 5,2 4,5 4,4 4,9 2,6 2,5 2,1 1,6 1,3 0,6 0,6 2009 139,3 32,7 19,8 12,8 14,3 10,1 7,1 5,6 5,7 5,2 4,6 2,8 3,7 3,1 2,7 2,1 2,0 1,4 1,6 0,7 0,4 0,7 *) Trend: Exchange rate Jan-Aug 2012/2011 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 2010 172,5 43,8 25,8 15,4 16,3 9,7 8,0 8,0 7,2 6,7 5,2 4,8 4,6 4,0 3,6 2,5 1,8 1,7 1,4 0,7 0,6 0,7 Vorstand 2011 % share of EU 2011 trend 2012/2011* in % 176,9 100 -5,0 44,3 25,0 -5,3 28,7 16,2 -1,9 15,8 8,9 1,6 15,5 8,8 -12,3 9,5 5,4 -2,4 8,8 5,0 2,4 8,0 4,5 -14,9 7,5 4,2 -3,6 6,9 3,9 -0,5 5,6 3,2 -8,3 4,8 2,7 -12,6 4,2 2,4 5,7 4,0 2,3 -3,8 3,6 2,1 -7,5 2,5 1,4 -20,7 1,9 1,1 -33,1 1,7 1,0 -5,8 1,4 0,8 2,4 0,8 0,5 -21,4 0,7 0,4 4,4 0,6 0,3 38,4 Source: EUROFER 7 Summary: Agreements 2010/beginning 2011 FB Tarif Vorstand Look back to the main results of last year‘s questionnaire Most of the agreements only with slight increase of wages. Long duration of agreements. More qualitative elements (e.g. job security, TWA, qualification). Difficult bargaining position for trade unions. VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 8 EUCOBAN Survey Steel Industry FB Tarif Vorstand The results of the 2012 questionnare VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 9 Steel agreement in Germany FB Tarif Vorstand Collective bargaining at sectoral level. Agreement signed end of November 2011 for North-West and East Germany and End of January 2012 for the Saarland. Approx. 90,000 steel (blue and white collar) workers are covered. North-West and East Germany: 3.8 % wage increase from 01. December 2011 till 28. February 2013, November 2011 is a „zeromonth“ (16 months duration). Saarland: 3.8 % wage increase from 01. March 2012 till 31. May 2013. Lump sum of 160€ for February 2012. (16 months duration). Guarantee of unlimited employment of apprentices after completion of their apprenticeships. (Duration till 31. January 2016). Agreement on partial retirement is prolonged till 28. February 2013 (NW, E-Ger.), till 31. May 2013 (Saarland). VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 10 Steel agreement in France FB Tarif Vorstand Agreements at sectoral and company level. Agreement signed at 01. March 2012 about the minimum wage table and modifications in the statutes of the collective agreement. Unlimited collective agreement. Wage increase: 2.3%. VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 11 Steel Agreement in the UK FB Tarif Vorstand CB at company level in TATA Steel, Port Talbot Texturing Technology Ldt with approx. 20,000 (blue and white collar) workers. Duration 01.04.2011 till 01.04.2012 (TATA), 01.04.2012 till 2013 (Port Talbot) (12 months). Demands: Wage increase 3.5% Minimum earning levels increased form 1,225.10 to 1,275 Pounds per calendar month. Ongoing negotiations in 2012 for wages, lump sums, pension schemes. VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 12 Steel agreement in Poland FB Tarif Vorstand CB at company level in ArcelorMittal , Huta Labedy, BGH, Huta Pokój, Sievierstallat, CMC, ISD Huta Czestochowa, Celsa Huta Ostrowioec including approx. 15,000 workers. No new agreement in 2012. VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 13 Agreement in Austria covering several industrial sectors FB Tarif Vorstand Agreement for the metal and mining industry covering in total 165,000 (blue and white collar) workers. Among them 13,000 workers of the steel industry. The agreement was signed 18. Oktober 2011. Duration: 01.11.2011 till 31.10.2012 (12 months). Wage increase: 4.4 % till 4.0%. The current collective bagaining round still continues. Employers want to split up the joint collective agreement into several sector agreements. The new agreement on the metal industry was signed 19.10.2012, the negotiations for the mining and steel industry still continue. VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 14 Steel agreement in the Netherlands FB Tarif Vorstand Agreement for TATA Steel is still valid till 31. March 2013. Duration 01. April 2011 till 31. March 2013 (24 months). 9,500 (blue and white collar) workers are covered. Wage increase 3.75 %, 300€ lump sum. No redundancies till 01. October 2013. But approx. 1,000 workplaces will be eliminated in a period of 4 years. Commitment of investments. VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 15 Steel agreement in Czech Republic FB Tarif Vorstand Agreements at sectoral level for: Arcelor Mittal Ostrava, Trinecke zelezárny, EVRAZ Vítkovice Steel, Zelezárny Veselí, ZDB GROUP, Hute POLDI, TSR, Moravské zelezárny. 19,350 (white and blue collar) workers are covered Agreements signed between December 2011 and March 2012. Majority of agreements are valid 1 till 3 years. Average of wage increase: 3% (88% of agreements stipulate wage increase. 50% of the agreements introduce a 13. wage; 13% a 14. wage. 88% of agreements: 37,5 hours/week. Improvement of training and qualification. Principles of precarious employment reduction control. VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 16 Agreement of several industrial sectors including steel in Sweden FB Tarif Vorstand Cross sectoral agreement covering Steel, Mining, Paper, technical and metal, chemical. Duration for the steel sector 01.02.2012 till 31.03.2013 (14 months). Wage increase for steel: 3 %. Sepearate negotiations on the issues of training and precarious work in September 2012. VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 17 Steel Agreement in Slovakia FB Tarif Vorstand Agreement at company level covering US Steel Kosice, US Steel Labortest Kosice and US Steel SBS Kosice with totally 11,467 (blue and white collar) workers. Duration: 01.05.2012 till 31.12.2014 (32 months). Wage increase 3.9 %. Guaranteed average lump sum 990€. Commitment of employer to not apply collective redundancies (except when employee refuses 3 adequate job offers). Working time reduction in steps for workers in non stop operations till 33,5 hours per week in 2014 . 35,5 hours per week for the rest of the workers. Improvment of regulations on training and qualification. VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 18 Steel Agreement in Hungary FB Tarif Vorstand Wage and social agreements for 2012. Duration 01.01.2012 – 31.02.2013; 12,000 (blue and white collar) workers are covered. Wage increase: 2.1% Qualitative regulations about full-time employment, training and qualification, reduction of temporary workers. VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 19 Steel agreement in Bulgaria FB Tarif Vorstand Negotiations at sectoral and company level. New company agreement, signed at 01.04.2012 for Stomana Industry S.A., 771 (blue and white collar) workers covered. Duration: 01.04.2012 till 31.12.2013 – 21 months. Increase of the minimum wage in the company from 150 € to 200 €. Increase of night shift allowance about 10%. Increase of the value of free protective food about 25%. Lump sum about 150 € for summer holidays. Improved additional regulations on: dismissal protection for trade union members, qualification and training, restriction on temporary employment contracts (after one temporary contract the next contract must be permanent), anti-discrimination. VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 20 EUCOBAN Survey Steel Industry FB Tarif Vorstand General trends in european collective bargaining policy Current collective agreements in European steel industry Summary and Outlook VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 21 Summary: Tendency of the current agreements FB Tarif Vorstand Statistics 12 replies – 57% Bargaining level: 7 company, 1 sectoral, 2 embedded in crosssectoral. VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 22 Summary: Tendency of the current agreements FB Tarif Vorstand Only in few cases higher increases of wages than in the prior questionnaire period (Germany, Austria, Sweden). Most of the agreements have a duration longer than 15 months. That relativates wage increase. Qualitative elements (e.g. job security, TWA, qualification). Working time reduction in Czech Republic and Slovakia. Still difficult bargaining position for trade unions due to the ongoing economic and financial market crisis. VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 23 Next CB campaings in steel FB Tarif Vorstand Czech Republic: September 2012 till March 2013. Germany: Negotiations March 2013. Netherlands: Beginning 2013. Sweden: Beginning 2013. France: Beginning of 2013. Austria: Autumn of 2013. Bulgaria: 01. November 2013 (company level). VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 24 Demands in the next CB campaings in steel FB Tarif Vorstand Main demands mentioned in the replies Wage increase (Tariffs, bonuses, premiums, shift allowances, etc.) Job security, employment , decent work Demographic situation Special demands mentioned in the replies Recent amendments of Hungarian Labour Code VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 25 Apparent Steel Consumption in EU-27 Rates of change of steel in % FB Tarif Vorstand Forecasts Source: EUROFER, Report July 2012 VB 04/FB Tarifpolitik Ressort Europäische Tarifpolitik, Uwe Fink 26 FB TP, Ressort Europa Vorstand Thanks for your attention! VB 04/FB Tarifpolitik/Ressort Europa Uwe Fink, Tel.: 069/6693-2151, uwe.fink@igmetall.de