epsucob@NEWS June 2005

The three main union federations, CGIL, CISL and UIL have agreed to consult their members over a long-awaited pay increase offered by the government. The unions had been planning a renewed campaign of strike action in June before the government finally came up with an offer.

Agreement of the dispute between unions and the national administration was signed on Friday May 27th. “The settlement is of extraordinary importance because, other than allowing the start of negotiations for contract renewals - stated Carlo Podda, General Secretary of the FP CGIL - it represents overcoming all those, who like the Government and the Confindustria have, in all these months worked for generally blocking negotiations in our country.”

One of the key themes of pay negotiations in the public sector in France is the salary grid, “la grille indiciaire”. Unions want increases on the lowest rates to ensure that they are above the national minimum wage - the SMIC - but also argue that these increases should lead to a complete overhaul of the structure. While public service minister Renaud Dutreil has conceded the need for increases on the lowest rates he has tried to implement the changes unilaterally without further discussion of the need for a complete review of the pay structure.

The LO union confederation has highlighted the importance of a European Court case for the right to strike to defend collective agreements in Sweden. The Labour Court referred the issue to the European Court of Justice following a case in involving the boycott of a Latvian company by the Swedish construction union. The company failed to sign up to the industry collective agreement and eventually pulled out of its contract following successful boycott action by the union.

Public service unions have welcomed a new collective bargaining structure in the public sector which brings together employers and unions across national, regional and local government and ensures proper representation of both workers and civil servants.

Public service unions in Portugal are planning a demonstration on 17 June in protest against government plans to cut back its budget deficit by attacking the pay and conditions of public sector workers. The government has announced plans to increase the retirement age from 60 to 65 and cut sick pay by 35%.

The industrial relations observatory EIRO reports that civil service unions in Romania have formed a new federation and have put in significant demands to the government in terms of civil servant status, working time and pay. The federation wants a review of working time arrangements following the introduction of some evening and Saturday working. It is also looking for a 50% pay increase and is rejecting government proposals for 4,000 job cuts arguing instead that the civil service needs 19,000 more workers.

The GOED public services union has managed to negotiate a reduction in the proportion of agency staff working in hospitals, nursing homes and other health service organisations. A new law would have allowed up to 33% of staff to be agency workers but GOED has negotiated a new limit of 15%.

The unions, AbvaKabo and CNV Publieke Zaak have agreed a 0.8% pay increase for workers in nursing and rest homes (employer is Arcares). The agreement is backdated to 1 January 2005 and runs until 31 December 2005. Employers continue to pay 100% sick pay in first year and 70% in second year. As of 1 January 2006 employers will pay 1/6th of cost of childcare Works councils will be involved in planning of capacity as currently there is a shortage and lack of training.

The Impact union in Ireland is warning the government over the consequences of its plans to decentralise the civil service and relocate civil servants around the country. The union believes this will have a particular impact on specialist civil servants and says it will ballot for industrial action if civil servants are denied promotion or moved to inappropriate jobs as a result of decentralisation. The union is also concerned about the effect on the services delivered by government departments.

The European Industrial Relations Review (EIRR) magazine reports that the VPOD public service union has concluded a new agreement with the Solothurn canton (regional government) which allows for an extra three days’ annual leave. The agreement also includes an extra 20% supplement for nightwork and improvements to sick pay. EIRR also says that central government workers in Switzerland received a 1.4% pay increase in 2004 while there were mixed results across the cantons with 10 out of 17 awarding cost-of-living increases.

A new report from the industrial relations observatory EIRO highlights some of the key changes in collective bargaining across Europe since the 1990s. The study highlights the fact that the national and sectoral bargaining arrangements that are common among most of the EU15 contrast to the decentralised bargaining in most of the new member states. However, there is also evidence of increased decentralisation in the EU15 where local bargaining is in addition to the main negotiations at sectoral and local level.