Major conflict in state sector bargaining in Denmark

EPSU affiliate OAO (the Central Federation of State Employees Organisations) reports on the negotiations and conflict in the Danish state sector.

This collective bargaining round has been most unusual with employers resorting to industrial action and Government interference in collective bargaining.

The social partners were not able to reach an agreement for the whole of the state sector, as the Ministry of Finance and relevant unions did not come to terms on a working time agreement for a very large part of the education sector.

Following a four week general lock-out in the affected parts of the education sector Parliament has passed two laws. Firstly, the agreement that was reached by the social partners has been transposed into law, and this implies that there will be no ballot this time. Secondly, a law has been passed on working time in the education sector.

The so-called regulatory mechanism that ensures a parallel wage development between the public and the private sectors combined with a larger than expected wage moderation in the private sector due to continuous low growth meant that the unions effectively owed the employers money when negotiations started beginning of this year.

The agreed economic framework implies that the debt is paid off in 2013 and there will be a 1.1% wage increase in 2014.

Many of OAO’s demands were about promoting trust between the social partners, a so-called trust agenda. The social partners have agreed a new cooperation package with increased focus on trust and cooperation. The social partners have also agreed a new competence package with increased focus on security and competence development, also in processes of change.

The OAO also managed to ward off a number of important employer demands:
- elimination of the regulatory mechanism,
- worsening of conditions for statutory civil servants (relating to compulsory retirement age and early retirement contributions), and
- working time, most importantly the introduction of a quarterly norm period for all state employees.