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BackA report of the Commission, published on 3rd February emphasises the importance of social partners in Europe. The structured dialogue between employers’ and labour representatives does not only reduce social inequalities in society, but can also make a major contribution in helping to cushion the effects of the financial crisis.
Social partners are more important than ever - is the central message of the “Industrial Relations in Europe Report“, which was presented this week in Brussels. The influence of social partners on labour market and social policy had a cost-reducing effect, would promote trust and confidence and would thereby facilitate structural adjustments in the economy. In the current recession, where employees fear for their jobs and loss of income and where expert knowledge is lost through redundancies, social partners are playing a key role. “The economic support programme of the EU and our strategy for growth and employment depends on the involvement of social partners”, emphasizes Vladimír Špidla, the Czech Commissioner for Employment, Social Affairs and Equal Opportunities.
The 'Industrial Relations in Europe Report' shows that collective agreement negotiations have an impact both on the wage differentials between men and women and on in-work poverty. Europe-comparison provides empirical evidence that in countries with a 10 % increased trade union density ratio, wage differences are about 2 % lower. Also reduced is the rate of the working poor, i.e. those persons, who in spite of being in employment are earning less than 60 % of the median income; in case of a 10 % higher coverage by collective agreements the rate is reduced by 0.5 percent. A clear reference to the importance of trade unions with high density ratio. The comparison between countries shows that the membership of employers' organisations is highest in Austria (100 %) and that Austria also has Europe's highest rates of collective bargaining coverage (99 %). However, the trade union density shows a decline from 37 % (in 2000) to 33 % (in 2005).
Based on the empirical figures one can prove that strong social partners significantly contribute to reducing fairness deficiencies in Europe. Apart from that, they are essential in combating the effects of the financial crisis. The EU intents to strengthen its support for a further development of the social dialogue all over Europe. For that purpose it has increased the European Social Fund by 1.2 billion for the period 2007-2013. What, however, is still missing and which is emphatically requested by AK, is a more social orientation of EU policies. Because the figures of the Commission Report make one thing very clear: well developed systems of social market economy are not a cost factor, but an important locational advantage.
For further information:
Press release about industrial relations in Europe
Summary of the Industrial Relations in Europe Report
The complete Industrial Relations in Europe Report
The 'Industrial Relations in Europe Report' shows that collective agreement negotiations have an impact both on the wage differentials between men and women and on in-work poverty. Europe-comparison provides empirical evidence that in countries with a 10 % increased trade union density ratio, wage differences are about 2 % lower. Also reduced is the rate of the working poor, i.e. those persons, who in spite of being in employment are earning less than 60 % of the median income; in case of a 10 % higher coverage by collective agreements the rate is reduced by 0.5 percent. A clear reference to the importance of trade unions with high density ratio. The comparison between countries shows that the membership of employers' organisations is highest in Austria (100 %) and that Austria also has Europe's highest rates of collective bargaining coverage (99 %). However, the trade union density shows a decline from 37 % (in 2000) to 33 % (in 2005).
Based on the empirical figures one can prove that strong social partners significantly contribute to reducing fairness deficiencies in Europe. Apart from that, they are essential in combating the effects of the financial crisis. The EU intents to strengthen its support for a further development of the social dialogue all over Europe. For that purpose it has increased the European Social Fund by 1.2 billion for the period 2007-2013. What, however, is still missing and which is emphatically requested by AK, is a more social orientation of EU policies. Because the figures of the Commission Report make one thing very clear: well developed systems of social market economy are not a cost factor, but an important locational advantage.
For further information:
Press release about industrial relations in Europe
Summary of the Industrial Relations in Europe Report
The complete Industrial Relations in Europe Report