German and Swedish ER Flashcards
German employers can form interest organizations called associations responsible for collective bargaining. This includes: (3)
- General Business/Trade Associations - Associations representing general economic and product market interests with the government
- Special Employer’s Association - social policy, labor market, interest, employment relations, and CB
- Chambers of Industry and Commerce - are public entities that perform semi-governmental tasks
Why has there been a decrease in German associations
Difficult to manage competing interests –> decrease in membership since 1980 –> minimizing power of associations
German bargaining autonomy
Freedom of associations - union and employer associations can engage in CB without any interference from the state
Most important German Acts (3)
- Work constitution Act
- Collective Agreement Act
- Social Security Law
Work constitution act (4)
- Legal basis for co-determination at the workplace level
- Work councils set of rights
- Does not apply to small enterprises
- Co-determination
German Dual system
- Co-determination - workplace level
2. Collective bargaining - industry level
Co-determination
Cooperation between management and workers in decision making, especially by the representation of workers on management boards
Multi-Employer Wage Bargaining
The wage negotiation takes place between employers’ unions
and employees unions, usually for an entire industry, at either state or national level.
German Work councils (4)
- Are mandatory, employee formed initiative
- Cannot strike or CB
- Work with management
- Do not engage with issues as in pay and income distribution
German Unions (2)
- Provide work councils with information and training
2. Many members of work council are in unions
Unions depend on work councils for:(3)
- New members
- Monitor the implementation of collective agreements
- Assist in industrial action
Trends of decentralized bargaining = ___ # of work agreements
Increase
Collective Agreement Act (3)
- Pay Agreement - fixed the levels of pay and periodic increases
- Frameworks agreement - specify payment systems
- Umbrella agreements - regulate all other conditions of employment
Due to Europeanization and globalization, how has ER in Germany become much more European? (3)
- CB is becoming more decentralized
- ER losing power due to growing inequality - levels of inequality in Germany mirrors the UK
- European social model - Right to work, social protection, civilized standards in the workplace
Characteristics of Swedish model (5)
- Tripartite Corporatist system
- 71% of employees are represented in a union
- Decentralized CB
- Employees represented on board of company
- Generous welfare state
Key Actors in Swedish Models: (3)
- Trade unions
- Employers
- Government
Swedish Trade unions face issues: (4)
- Decline in union density
- Less public support
- Weaker link in social democratic party
- European labor market
Swedish employers (2)
- Confederation of Swedish Enterprise - negotiating organizations to lobby organizations
- Export-oriented
Swedish government
- Not involved in industrial relations between unions and employers
- Extremely generous welfare state - social democratic party
- Trends towards liberalization
Influence of Europeanization and globalization on Swedish Model
- European legislation are threats to the Swedish Model of CB - minimum wages & individual rights
- Trends towards liberalization - movement away from national level wage coordination
- Cross-class realignment - closer coordination between white and blue collars bargaining within the export sector - Social Corporatism adopted and Sweden still has coordinated market economy
What is the Laval Case?
- In 2004, Laval hires Latvian workers to rebuild a school in Stockholm
- Pays Latvian workers less than Swedish minimum wage –> social dumping
- Laval refuses, therefore, trade union blockages the construction site
Court decision of Laval Case: Swedish Labor Courts Vs. European Court of Justice
Swedish Labor Court - TU is right; Laval must respect Swedish collective agreements
European Court of Justice - Laval is right
- Swedish cannot make a company comply with its collective agreements
Laval conclusion
- The ECJ: very neo-liberal stance
- Priority - free markets within the union
- puts countries workers and social systems in competition
- Can lead to law shopping, social dumping, race to the bottom
Hope for the future: The Lisbon treaty
Gives more power to EU court for human rights on social issues over ECJ
