newcastle michael

Technische Universität München

Transnational Company Agreements: the emergence of international corporate regulation within the Volkswagen Group.

ESRC Seminar Series: Regulation and the Firm. Newcastle University Business School, Friday 5th June 2015.

Prof. Dr. Michael Whittall Technische Universität München/Erlangen- Nürnberg University.In co-operation with:Prof. Dr. Miguel Martinez LucioDr. Stephen MustchinDr. Volker Telljohann Dr. Fernando Rocha Sanchez


Presentation plan

Research focus and findings

Volkswagen and industrial relations – powerhouse of German co-

determination

Emergence of Transnational company agreements

Volkswagen Transnational company agreements Industrial relations charter Temporary agency charter

Implementation of Volkswagen Transnational company agreements Spain, UK, Italy, Germany

Lessons for the development of European works council relations

Questions

2


Research focus and findings

3


Volkswagen and industrial relations – powerhouse of German co-determination



Model of historical and political importance

Important role of the State

“Volkswagen Act” of 1960

Relocation processes: two thirds majority

Company-level collective agreement

Unionisation rate over 90 %

6



European works council

1992 signing of agreement on Volkswagen European Group Works Council

Global works council

1999 signing of agreement on VW Group Global Works Council

Michael Whittall, 20. Januar 2010 7


Emergence of Transnational company agreementsThe TCAs represent an highly welcomed innovation, as:

a new “social praxis” which goes hand in hand with the emergence of TNCs operating in more than one member state,

a new “bargaining fora” for industrial relations at the global

and local levels, a paradigmatic example of “soft law”, based on voluntary

and autonomous European negotiation, independent from the Commission’s intervention (self-initiated and self-implemented; non-statutory agreements)


Emergence of Transnational Company Agreements

TCAs IFAs IFAs

by

Europea

n

TNCs

Signed

by

EWC

WWC

SE WC

EFAs Signed

by

EWC

Signe

d

by

EWC

alone

Signe

d

by

EWC+

ETUF

1988-

2011

226 115 95 13 111 81 54 17

2012-

1013

41 25 23 4 16 11 8 2

1988-

2013

267 140 118 17 127 92 62 19

9

Source: da Costa and Rehfeldt 2011, updated for 2012-2013.

IFAs and EFAs 1988-2013


Volkswagen TCAs: Temporary agency charter

Right of information over the level of temporary external personnel

Temporary external personnel has to be limited to 5% of the workforce per plant

Equal pay and equal treatment - Reference basis for Equal Pay is the respective base salary (after 9 months)

Limiting the length of an individual’s assignment (a total of 3 contract extensions or a period of 36 months collectively)

Opportunity for permanent employment and training

Selection of temporary employment agencies

10


Volkswagen TCAs: Industrial relations charter

Covers all enterprises and production sites belonging to the group globally

Implementation through company-level “participation agreements”, signed by democratically elected councils

Beyond ILO minimum labour standards Recognition, information, consultation and co-

determination rights Training for workers' representatives External experts

11

Technische Universität MünchenVolkswagen TCAs: Industrial relations charter

12

Rights of:

Information

Consultation

Co-determination


Implementation of Volkswagen TCAs in Spain, UK, Italy, Germany

• Spain – VW Navarra (Fernando Rocha Sanchez)

13

Labour relations charter:

conflict over co-determinationparts of charter included in collective agreementsnumerous plant agreements on shift work, working hours, redundancyadjustment issues (cultural) conclusion: voluntarist approach

“We are developing in practical terms a dynamic of industrial relations very similar to the co-determination, although without this label, based on two principles: firstly, give detailed information of all labour issues to the works council; and secondly, promoting the consensus and the agreements with the most representative trade unions.” (Trade union officer)


Implementation of Volkswagen TCAs in Spain, UK, Italy, Germany

• UK – Bentley (Miguel Martinez Lucio & Stephen Mustchin)

14


general cultural change in management style

strong social dialogue

resource issues

conclusion: conundrum

around the notion of co-

determination?

Temporary agency charter:

involved in transnational negotiations

1st agreement VW group

moving towards the 5% threshold


Implementation of Volkswagen TCAs in Spain, UK, Italy, Germany• Italy – Lamborghini (Volker Telljohann)

15


10 % by end of 2014

open-ended contract after 18 months

equal working and wage conditions

represented by Lamborghini joint trade union interest representation


institutionalization of IR rights vs. high informality

co-determination vs.

central role of collective

bargaining

4 Joint committees on: performance-related pay, work organization, job classification, health and safety

conclusion: far reaching change


Implementation of Volkswagen TCAs in Spain, UK, Italy, Germany• Germany VW & Audi (Michael Whittall)

16


recommitment to co-determination

spreading co-determination throughout Germany

conclusion: complementing German co-determination


elongated negotiation process

flexibility differences between VW & Audi


Lessons for the development of European works council relations

17


Dankeschön

18

newcastle michael

Education

volkswagen group

findings volkswagen

state volkswagen act

european tncs

emergence of tncs

european negotiation

signing of agreement

ewc etuf