Concluding the collective bargaining 2013 -Danish social partners’ readiness to find joint

solutions to joint challenges

EUPAN DG + TUNED, Dublin Castle, 14 June 2013Director General Niels Gotfredsen

The Danish collective bargaining model

Some characteristics:• Dates back to 1899 (following a dispute in private sector)• Mutual recognition of employers’ organisations and trade unions• Regulation of labour market mainly by collective agreements subject to

negotiations. Government intervenes as little as possible• Agreements apply also to non-unionised employees within same sector• The parties decide the length of the agreement period• Peace obligation when agreement is in force• In connection with CB, the parties may issue a strike notice or initiate

lockout in order to put pressure to bear on the negotiations

The parties: Ministry of Finance (state sector employer)

The parties: Central organisations in the state area

CFU(Central Federation

of state sector Emplyees)

OAO LC/CO10 AC (civil servants)

AC (contractual)

Collective bargaining 2013 - in retrospect

• The crisis and financial constraints as an overall frame and challenge

• Acute need for changes in the public sector

• Is it possible to bring about these changes within a CB-model ?

• Constructive dialogue and agreement reached, including on difficult issues

• Lockout used on remaining areas - a rare means of exerting pressure

• Intervention by law – solution determining a basis for changes

• CB2013: An unusual course putting the CB model to the test – and it passed

Overview – the course of CB 2013 (renewal 1.4.2013)

May June JulyApril Sept. Oct. Dec.August

Preparation of demands, process, internal organisation of work etc.

January February March April

NegotiationsConcili-ationBoard

Indus-trialaction(lockout)

Inter-ventionby law

Exchange of

demands

NoticeIndustrial

ActionLC

Breakdown

20132012

Nov.

AgreementCFU+AC

The Ministry of Finance’s main demands

• Narrow financial frame and repeal of the pay adjustment scheme

• Repeal of central rules that regulate how teachers’ working time is organised

• Repeal of teachers’ special 60-years rule

• Adjustment of civil servants’ pensions schemes

Vast majority of state sector personnel groups:

Average 37 hours/week

The collective agreement provides a frame for the manager to prioritise and organise tasks and working time for staff

Issue: Teachers’ working time rules

Teachers:

Average 37 hours/week

The collective agreement dictates how much time to be spent on specific tasks, e.g. preparation of classes, and that teachers at the age of 60 obtain reduced working time (corresponding to extra 4 weeks holidays)

The state sector trade unions’ main demands

• Maintaining the pay adjustment scheme • General pay raise • Rights at local level to negotiate pay development (certain groups)• Supportive measures aimed at enhancing security in job and trust

between social partners, e.g.

• Competence development

• Enhancing employment opportunities

• Agreement on joint work on trust, quality, work environment etc.

Negotiations go on

• Joint working groups established with mandate to negotiate and make draft agreement packages on general issues

• Trust and cooperation

• Competence development

• Civil servants issues (pensions etc.)

• Parallel negotiations on collective agreements for individual personnel groups

An agreement was reached on 8 February 2013

The agreement

• Agreement period of two years (end 31 March 2015)

• Narrow economic frame (0,0 per cent in 2013 and 1,1 per cent in 2014)

• Pay adjustment scheme maintained

• Civil servants issues remained unchanged

• Package with focus on trust and cooperation

• Package on competence development

• Framework agreement on contracts and salaries for managers

• Aligning the working time rules for high school teachers with other state

sector personnel, and the special 60 years rule was repealed

Financial frame CB 2013

Per cent April 2013 April 2014 CB 2013

General adjustment of salaries 0,82 0,80 1,62

Negotiated frame exclusive pay adjust-ment scheme

0,82 0,80 1,62

Pay adjustment scheme (estimate)1 -0,82 0,30 -0,52

Agreed frame inclusive pay adjustment scheme

0,00 1,10 1,10

1) As estimated by social partners. Local pay adjustment estimated to 0,5 pct. annually.

Joint solutions to joint challenges

Package on trust and cooperation

• A renewed, modernised and flexible agreement on joint

cooperation committees

• Joint project on trust and cooperation

Joint solutions to joint challenges

Competence development

• Social partners’ joint work and focus on competence development

in the state sector is strengthened

• Large funds to support organisational changes and employability

• Money moved from administration to the development of work

places and employees

The remaining issue

• It was not possible to reach an agreement on working time

within other fields of education (non-academic teachers)

• Thus, the agreement of 8 February could not enter into force

• Negotiations continued on teachers’ working time rules

during February

Central organisations in the state areaCFU

(Central Federationof state sector

Emplyees)

OAO LC/CO10 AC (civil servants)

AC (contractual)

Conciliation Board and Lockout

• On 28 February, teachers’ trade union was given notice of industrial action (lockout) by public sector employers (Ministry of Finance, Local Government Denmark, Danish Regions)

• Negotiations in the State Conciliation Board on Labour Disputes

• Breakdown in negotiations announced by the conciliator on 25 March

• Lockout of more than 50,000 teachers entered into force on 1 April

Empty schools…

Crowded streets…

Industrial action going on…

• Conflict running for 4 weeks

• Fear of missed exams and other consequences

• Parents demand for political action

• …

Intervention by law - contents

• The industrial action brought to an end on 26 April 2013 (rapid legislative process)• Renewal of teachers’ collective agreements

• Working time rules aligned with those of other non-academic staff in state sector

• Safeguarding rules

• Repeal of 60 years rule (including financial compensation)

• Competence development for staff in education sector

• Projects on cooperation, trust, work environment

• Collective agreements etc. covered by the agreement of 8 February (CFU and AC) are prolonged with the agreed changes

Conclusion and what’s next?

• The collective bargaining model was put under pressure and tested• An unusual course – but the raison d’être of the CB model still exists • A basis for implementing changes in the public sector was established

Next steps for social partners:• Implementation of CB 2013 – e.g. joint projects on trust and

cooperation, purposeful competence development activities• Continue to work towards a resilient, efficient and adaptable public

sector• Preparation of CB 2015

Thank you for your attention !Questions ?