Collective bargaining and wages Challenges for trade unions

Collective bargaining and wages: Challenges for trade unions in the crisis and beyond ACTRAV Symposium on Collective Bargaining Geneva, 13 October 2009 Steffen Lehndorff Institut Arbeit und Qualifikation / University of Duisburg-Essen

Before the crisis: inequality on the rise

* Wages person employed as % of GDP, 1960 -2006; Source: ECFIN (2008: 97) ** Net TU density (BE, NL, FR, DE, IT, UK, IE, DK); Source: ICTWSS database, European Commission (2009)

Where has all the money gone? – The US case Source: Foster/Magdoff

Where has all the money gone? – The German case

2010/2011: Upcoming conflicts “In particular, appropriate wage-setting, sufficient labour market flexibility and effective incentives to work are required. … We will always do whatever is necessary to deliver price stability, whatever the situation. ” “As regards fiscal policies, the need for ambitious and realistic fiscal exit and consolidation strategies is becoming increasingly pressing. … Countries’ structural measures should focus on the expenditure side. ” Jean-Claude Trichet, President of the ECB, 8 October 2009

Work sharing in the crisis : Tackling the wage problem Example: The German short-time working scheme net pay hrs not worked 67 % net pay employer * Ku. G = Short-time work allowance Source: German Ministry of Labour Ku. G* net pay labour agency total pay

Public social expenditure as % of GNP Source: OECD Social Expenditure Database

Labour input into social services* and female employment (FTE) * Education, health and other social services (NACE 80 + 85) - Source: ELFS; own calculation IAQ

Bargaining on wages: The wider agenda 1. Insisting on the demand-side impact of wages: Towards a wage-led recovery 2. Urging for state support: minimum wages, short-time working etc. 3. Preventing „consolidation“ at the expense of social benefits … 4. … and beyond: Public social services as growth and employment engine