Trade Union Cooperation in Europe, 1st ed. 2020 Patterns, Conditions, Issues

This open access book discusses transnational trade union cooperation in Europe ? its forms, focuses, conditions, and obstacles. It provides an overview of existing trade union cooperation and includes detailed analyses of two specific questions: the debates on statutory minimum wages and the Posting of Workers Directive. Drawing on empirical research, the authors take a comparative approach, considering national industrial relations regimes as well as individual sectors. With the ongoing processes of integration in Europe, it has become increasingly important for unions to cooperate with regard to employers and EU institutions. The authors illustrate the interconnections between national and European industrial relations, and explore the process of European integration in labour markets. Illustrating the potential for and difficulties involved in deepening trade union cooperation across Europe, this work is a vital read for trade unionists, researchers and students interested in European trade unionism and labour markets.

The aim of this open access book is to present and discuss some of the results from two research projects on transnational trade union cooperation in Europe. With the ongoing processes of integration in Europe−and globalization more generally−it becomes increasingly important for unions to cooperate vis-a-vis transnational employers and their organizations as well as vis-a-vis EU institutions. The ongoing developments put pressure upon them to find common positions on crucial issues. However, trade unions are nationally based and, accordingly, they operate under very different socioeconomic and institutional conditions, implying that many obstacles need to be overcome for cooperation to work.

The book includes three main chapters. The first deals with the general patterns of transnational trade union cooperation in Europe. It summarizes what we know about the existing forms of cooperation and its conditions and obstacles.  In the second and third chapters two specific issues are discussed: statutory minimum wages and the posting of workers directive. They represent two rather different cases. The first, on minimum wages, is an issue on which European trade unions do not agree. Most of them are positive to this kind of arrangement, but in the Nordic countries we find substantial resistance. Actually, the European Trade Union Confederation (ETUC) has not been able to achieve consensus, but has formulated a compromise possible for the member organizations to live with. The other issue is about the European Commission’s proposal to revise the posting of workers’ directive, focusing on equal pay for equal work in the same country. In that case, it was easier for the union movement to reach agreement, even though several parliaments in Eastern Europe were very critical of the Commission’s proposal.

As the empirical basis for the book, we have different kinds of data at our disposal. We have conducted two surveys to trade unions: the first was conducted in 14 countries in 2010-2011 and the second was carried out in basically all European countries in 2015-2016. The first was limited to unions just below the confederate level and the second to unions ̶ also just below the confederate level ̶ in five selected industries: metal, construction, transport, banking and finance and health care. Moreover, we have collected information through interviews with a large number of union representatives. In addition, we make use of various other kinds of data, including other surveys, documents and official statistics.

1. General patterns of transnational trade union cooperation

Trade unions are secondary organizations, that is, they exist only because there are employing organizations. One important aspect is to what extent employees are unionized. In that respect there are huge differences across Europe with high figures on union density in countries such as Denmark, Finland and Sweden and low levels in many other parts of Europe. What is more, we find declining figures almost everywhere, even in the Nordic region. A second significant aspect is that trade unions are organized in hierarchical structures and they form confederations, so-called meta-organizations (with other organizations as members). Both these features entail that the issue of representativeness is complicated.

Several questions are dealt with in this chapter. On which issues and in which forms of action is it most common that unions work together? To what extent are unions focused on joint lobbying towards EU institutions, coordination of collective bargaining or actions such as demonstrations and strikes? And to what degree do they cooperate on different issues such as wages, working time, health and safety, training and education? On which issues is it least common with cooperation? Which are the main obstacles to overcome? Do they have to do with institutional arrangements, financial or human resources or perhaps cultural differences? Which are the general conditions making cooperation possible, and which factors seem to be facilitating cooperation? A fundamental question is the role of industrial relations regimes and sectors respectively. Countries differ regarding labour market and industrial relations regimes, that is, the combination of institutions determining the preconditions for the labour market and the relations between the social partners – and the state – and this may impact on the possibilities for cooperation. Regimes roughly correspond to geographical regions in Europe: north and south, west and east, with the UK and some other “liberal” countries often being defined as a specific regime. On the other hand, sectoral differences may be even more decisive than national regime differences. Some sectors are basically nationally confined, whereas others are dominated by transnational companies making it necessary for trade unions to cross borders as well. Cooperation between trade unions thus develops at different pace and degree in different sectors. All these issues will be treated in this chapter.

2. The issue of statutory minimum wages

Most European countries have statutory minimum wages. After Germany introduced legislation in the beginning of 2015, there are only six exceptions in the EU: Austria, Denmark, Cyprus, Finland, Italy and Sweden. In our analysis the focus is placed on the differences between Nordic trade unions and the majority of European unions. Finland, Iceland and Norway (the latter two are not EU member states) admit extension of collective agreements by law, but this option is not often used in Norway. Denmark and Sweden have no statutory minimum wages and no legislation regarding extension. The absence of legislation in the Nordic countries does not entail that minimum wages do not exist; it is just that they are the result of negotiations between trade unions and employers’ associations.

An argument in favour of statutory minimum wages is that it is the best method for unorganized workers to obtain decent wages. Legislation is assumed to counteract wage dumping and to prevent poverty. For weak trade unions, it frequently appears as a crucial instrument for the defense of workers. A few years ago, German trade unions accepted the implementation of statutory minimum wages, because they found that they were too weak−or even non-existent−in many sectors to uphold decent wage levels.

In the Nordic countries, trade unions commonly argue that wages should be determined by the social partners and that legislation could hurt a well-functioning bargaining system. In contrast to these views, trade unions in most other parts of Europe find legislation necessary to prevent low wages and poverty. The ETUC tries to balance these differences of opinion, which may be negative to the possibilities for cooperation.  It has arrived at a settlement on minimum wages according to which it is recognized that different solutions are relevant due to national traditions and circumstances. The organization has even emphasized that collective agreements represent the best way to obtain good wages and appropriate working conditions, but that legislation can be necessary elsewhere. Most Nordic trade unions are probably satisfied with the current ETUC compromise, as its main content is that wage setting should be adjusted to the national context. It appears that that they have achieved what they could achieve. Furthermore, as long as the compromise is valid, trade union cooperation in Europe does not have to be negatively affected, although it means that the struggle for legislated minimum wages is not a joint effort of European unions.

The key question is however what will happen in the long run. It seems likely that the Nordic countries’ collective bargaining model will be put under pressure when most other European countries have statutory minimum wages. For example, the Laval verdict by the European Court of Justice some years ago implies certain drawbacks of not having legislated minima. Without such a regulation, unions’ possibilities of industrial action are circumscribed. We cannot expect that the Nordic collective bargaining model will be extended to other European countries, because their trade unions are too weak and show a tendency to become even weaker. The same negative development also takes place in the Nordic countries and this does not facilitate the spread of their system with negotiations between strong social partners. Another aspect is that employers do not seem to be that interested in negotiating with trade unions if it can be avoided; they tend to believe that they do better on their own. In a European perspective the Nordic trade unions are not sitting in the driver’s seat; what they can do is essentially to fight for the preservation of a collective bargaining model that so far has served them fairly well.

3. Social dumping and the posting of workers directive

A couple of years ago, the European Commission proposed a revision of the posting of workers directive (PWD) and it led to a great deal of debate, with a clear East-West division in the reactions. The proposal aimed at avoiding social dumping and therefore it was considered necessary that the same work in the same place would get the same pay. The third substantial chapter in this book deals with the reactions from various stakeholders and, in particular, how trade unions have handled the issue. Ministers in nine CEE countries and the parliaments in ten CEE countries raised their voice against the revision. Contrary to this, some Western parliaments responded in favour of it. In the European Parliament, we found positive responses in the Group of Socialists and Democrats and negative responses among the European Conservatives and Reformists. Regarding the social partners, employers’ organizations were generally negative ̶ although with some exceptions ̶ while the trade union confederations at European level were positive but not uncritical; they argued that the reform would not go far enough. Interestingly, there seemed to be no manifest East-West cleavage in the trade union movement. In spite of strong negative reactions in many CEE parliaments, the main labour organizations in these countries supported the dominant trade union responses. Basically, they were all on the same side in welcoming the revision, which is in line with the overall employer-trade union pattern.

The European Commission has emphasized that social dumping has to be dealt with. In consequence, it is essential that the same work in the same place is paid the same. This can be considered an objective of the revision of the PWD, but it does not mean that the implementation of the Commission’s proposal will really lead to equal pay for equal work. At best, as the ETUC has pointed out, there will be equal pay for some posted workers. One thing to note is that not even all local employees get the same remuneration for the same job. How can it then be possible for posted workers to get the same pay as local workers? Anyhow, it should not be denied that the PWD revision can be a step in reducing differences between posted and local employees. This implies that the competitive advantages that companies from CEE countries have in the provision of services in high-wage countries will shrink. The opportunities of competing with labour costs and social dumping will no longer be as obvious as before. It is the restrictions of these opportunities that politicians in many CEE countries have protested against. The trade unions in the same nations do not appear to agree, but instead consent to the anti-social dumping opinions expressed by the significant European trade union confederations or just remain silent. Some of them have made a choice which sets them apart from the rather strong sentiments at home. Is this due to self-interest or to their support of wider union solidarity norms?

There is hardly any definite answer to that question. One aspect is that the statements on the revision of the PWD are made by central-level unionists who may more easily reach consensus, as they do not directly experience the effects of the reform. It may be simpler for them to adhere to common trade union ideology with its values and norms. The same can be said about the international organizations like the ETUC. Solidarity ideology can be ascribed some impact and a neo-institutionalist perspective may help us to see this. However, we must also take the role of tangible advantages into account. Cooperation with other European unions is in many ways important for the often weak CEE organizations. The latter are likely to have much to gain from taking part of the experiences of others and many of them receive handy assistance in building up their activities. This is something they probably find worth keeping. Also, in the long run more equal remuneration of posted and local workers may be beneficial for all. There can be advantages in the short run, but they may become insignificant in a longer perspective. One aspect is the social dumping in CEE nations due to inflow of workers from countries such as Belarus, Moldova and Ukraine. How should the trade unions in CEEs countries respond to such developments? There are thus several good reasons to safeguard the principle equal pay for equal work in the same place.

The fact that labour organizations across Europe share the same or similar views on the revision of the PWD has consequences for transnational trade union cooperation. Being in agreement on this issue will certainly facilitate such cooperation within the European trade union movement. At the same time, the low and declining unionization rates indicate a problem as to who the organizations represent−and these rates are generally low in CEE countries.

4. Conclusion

Bengt Furåker is Professor of Sociology at the University of Gothenburg, Sweden. He has published extensively on issues in the labour market and working life.

Bengt Larsson is Professor of Sociology at the University of Gothenburg, Sweden. His research focuses on industrial relations in Europe and wage determination in Sweden.

Presents theoretical perspectives that are in the front line of the discussion of industrial relations in Europe

Based on comprehensive empirical data and provides accessible illustrations of important cases

Suitable as a secondary resource for courses in industrial relations and European studies