Collective Bargaining and Solving Collective Labor Conflicts in the European Union: Several Models of Representing the Interests of Workers.
Radu, Roxana Cristina ; Belu, Marina Loredana
Collective Bargaining and Solving Collective Labor Conflicts in the European Union: Several Models of Representing the Interests of Workers.
The role of collective bargaining and collective agreements in the
development of working relationships
Protection and exercise of employees' rights to collective
action has both theoretical and practical importance because only by
doing so they can promote their professional, economic, social interests
through collective bargaining (and express their points of view
regarding the legislative measures) or may obtain greater rights in
addition to those covered by labour laws (by conclusion of collective
agreement) and can defend their rights violated (by the onset and
resolution of labour disputes).
Priority enjoyed by the national law on collective bargaining in
labour legislation is fully consistent with international rules. Both
the International Labor Organization and the European Union norms confer
an important position to collective bargaining. Representation and
collective defence of the interests of workers and employers being
included, as a result of the Treaty of Lisbon, between the powers of
support, complementarity or coordination between the European
institutions and the Member States (Avram and Radu, 2008a: 44-51), a
Member State may entrust the social partners, at their joint request,
the implementation of European directives adopted in areas where the EU
supports and supplements Member States to achieve social objectives
(art. 153 par. 3 of the Treaty of Lisbon). There are specific issues of
employment excluded from Union competence - wages payments, right of
association, right to strike, the right to impose lock-outs (art. 153
par. 5 of the Treaty of Lisbon) that can be governed by means specific
to national social dialogue, particularly by collective bargaining
agreements concluded by social partners (Avram, Radu, 2012: 104). As
regards the relationship between EU norms and national law, the
principle of the primacy of EU law does not apply to those relations
which do not fall within the scope of the EU competence and in respect
of which the sovereign attributes of the State will continue to manifest
(Avram, Barbieru, 2009: 63).
Collective bargaining is one of the foundations of labor relations,
which is common across most of the European Union's Member States,
with the aim of establishing working and employment conditions,
regulating relationships between employers and workers, and developing
relationships between employers or their organizations and employees,
represented by workers' organizations (trade unions) or otherwise
provided for by national law. Depending on its scope, collective
bargaining can take place at several levels: at the national level, at
branch or sector level, at the level of profession, interprofessional
negotiation, local or regional negotiation, bargaining at enterprise
level.
Due to the formation of trade union federations at branch level,
collective bargaining has become, in Europe, the main form of trade
union-patronage relations. Patrons responded to this type of syndicalism
by creating their own sectoral organizations. Branch-level negotiation
has the advantage that it puts the company in the shelter of union
activism. Of course, conflicts that arise around branch negotiations
disrupt business activity, but they are not directed against a
particular business or employer, for the employers' association is
the one targeted. Consequently, "collective bargaining at the
branch level moves the workshop or enterprise conflict to the branch
level and does not affect the employer's decision-making power - at
least in terms of salary levels" (Fratila, 2001: 51-52).
Branch-level negotiation is advantageous not only because it diminishes
the reasons for conflict at the workshop or enterprise level, but also
because it facilitates the conduct of inter-branch national
negotiations. In support of interprofessional negotiation came large
companies that span different areas of activity and who continued to
face multiple local claims and union activism, even after branch
negotiation became a natural act in professional relationships. In an
interprofessional negotiation, the most dynamic sectors have to accept
some moderation in wages, while the less developed sectors benefit from
an increase in pay levels (Fratila, 2001: 51-52).
Italy has the strongest tradition in branch negotiation, but most
often the agreement reached at this level serves only as a starting
point for local and business negotiations, without too much influence
(D'Agostino, Loiacono, 2009: 267-269). Unlike other European
countries, collective bargaining at the branch level is less developed
in the United Kingdom. In the British system, each trade union
negotiates on behalf of its members with the employer or a group of
employers (enterprise level negotiation) so that the results of the
negotiation do not apply to all employees in a sector. Consequently, the
variety of modalities and results of collective bargaining is much
higher than on the continent (Avram, Radu, 2008b: 60-61).
However, interprofessional negotiation can not be considered a
constant of professional relations in all European countries. Only in
the Scandinavian Peninsula persisted for a longer period; in the
countries of Latin Europe (France, Italy, Portugal, Romania, Spain) was
very rare. Employers' associations have become increasingly hostile
to national wage interprofessional agreements because they have found
that they do not lead to wage moderation and do not allow for special
private situations of companies to be taken into account. Unions, on the
other hand, began to complain about the weakening of their position in
front of their members because, in exchange for accepted wage
moderation, they did not get any other compensatory advantages.
In Latin European countries, local or regional bargaining prevails
for two reasons : firstly, employers' associations have lean
structures and leave a lot of freedom to the individual employer;
secondly, local negotiation offers employers the opportunity to be
directly involved in the preparation and conduct of negotiations.
Enterprise-level negotiation is also relatively developed in
Europe, but it is conducted within the framework of branch policies. In
the UK, enterprise negotiation is permanent and often takes place in an
informal, unregulated manner, but widely spread are the negociations
between employee and employers, which have a wide range of autonomy and
the legal possibility to deny wage payments or other benefits to workers
who refuse to sign personal contracts - "a clear blow at collective
bargaining" (Eaton, 2000: 76).
In France, collective bargaining can take place at branch,
professional or interprofessional level, and the territorial scope can
be national, regional or local (Lyon-Caen, Pellisier, Supiot, 1994:
880-886). Enterprise-level negotiation may have as its object the
creation of a conventional rule supplementing legal provisions or
adapting and completing a convention or agreement concluded at a higher
level (Fratila, 2001: 51-52).
In all Germanic countries (Austria, Belgium, Denmark, Germany, the
Netherlands), collective bargaining is doubled synchronized. First, the
confederations unify the claims of federal organizations; then, the
branches considered to be the most important lead the
"benchmark" negotiations. The fundamental principle of this
bargaining system is that the results of the negotiations are imposed on
both employers and employees, members of the negotiating organizations.
Thus a set of branch agreements emerged, to which no enterprise can
escape. At the same time, enterprises are not obliged to negotiate, as
they are covered by branch agreements, unlike in Romania, where
collective bargaining (not the conclusion of the collective labor
contract) is compulsory at the level of all units with a minimum of 21
of employees. Therefore, collective bargaining in Germanic Europe is
characterized by the fact that it protects the enterprise (the
department, the workshop, etc.) from conflicts, the application of
branch agreements being mandatory and also by the fact that the state
favors the negotiation, although it is involved little in the
development of professional relationships, and his role is rarely
subject to contestation (Fratila, 2001: 51-52). In the Germanic model,
the tradition of collective bargaining has led to the building of a
trustworthy relationship between the social partners over the years,
which is also reflected by the terms by which they are appointed:
Tarifspartners in Germany, social partners in Belgium and the
Netherlands (Avram, Radu, 2008b: 61).
The collective bargaining agreement underpins relations established
between employers and employees covered by this contract are both rights
and obligations of both parties. Also in the collective agreement are
provided possible solutions to resolve any misunderstandings between
employees and employers. For example, pursuant to the stipulations of
article 39 par. 1 of Law no. 202/2002 concerning the equality of chances
for men and women, when the employees consider themselves sexually
discriminated, they have the right to submit petitions to the employer
or against him, if he is directly involved, and ask for the support of
the trade union or the employees' representatives for solving the
work situation. Unlike other state laws providing in detail the
mediation procedure at the employer/unit level, Romanian Labour Code
does not regulate the procedure of solving employees' individual
petitions at employer's level. Because of the fact that this aspect
is not regulated by law, it should be included as a distinctive issue in
the content of collective labour contracts concluded at the unity level
or internal regulations. Thus, in order to create and mantain a working
environment meant to encourage the respect of each persons's
dignity, through the agency of collective labour contract concluded at
unity level, there shall be established procedures of amiably solving
the individual complaints of the employees, inclusively the ones
concerning cases of moral or sexual harassment (Radu, 2015: 95-99).
The collective bargaining agreement is leading to harmonize the
interests of employers, employees and the general interest of society.
Analyzing Law no. 53/2003 - Labour Code and labour law as a whole,
unquestionably stands out that, in all respects, including in terms of
content regulation, collective bargaining plays a preeminent role in
Romania. After the emergence of Law no. 62/2011 on social dialogue the
interests of employees have been severely affected by eliminating the
possibility of negotiating and concluding a collective agreement at
national level. As for contracts negotiated at the level of sectors, the
collective labour contract will be registered at that level only if the
number of employees in establishments-members of the signatory employers
organizations is greater than half of the total number of employees in
the business sector. If this condition is met, the application of
collective labour contract registered at the level of a sector will be
extended to all establishments in that sector by the order of the
Minister of Labour, Family and Social Protection, with the approval of
the National Tripartite Council, based on the request of the signatories
of collective labour agreement at sectorial level (Article 143 para. 5
of the Romanian Law no. 62/2011 on social dialogue). Otherwise, the
contract will be registered as a contract of group of units. A similar
situation is registered in Hungary, where the revised Labour Code
stipulates that the ministry of labour can extend branch agreements to
the entire industry or sector in response to a joint request by the
contracting parties but only if the parties are representative in the
industry concerned" (Kollonay-Lehoczky, Lado, 1996: 136; Pollert,
2000: 192). These conditions lead to a continuous deterioration of
industry agreements which are fewer and week, providing only minimum
standards for pay, leaves and work conditions, usually just above those
provided for by law.
Collective bargaining and the conclusion of collective labor
agreements/conventions are equally important for unitary and federal
states. In all federal countries, collective bargaining is subject to
two-pronged coordination. First, the confederations unified the federal
claims, then the trade union confederations in the branches of activity
that are considered the most important conduct the basic
negotiations.The fundamental principle of this system is that the
results of the negotiations are imposed on both employers and workers,
members of the organizations involved in the negotiation. The
consequence is a set of industrial agreements that no company can avoid
(Radu, Avram, Nacu, 2011: 304).
In Germany, collective agreements (Tarifvertrage), usually
concluded at the branch level by the appropriate trade union and
employers' association, are legally binding as long as they keep in
line with the statutory minimum standards (Halbach, Poland and Schwedes,
1991: 303-304). A particularity of German law system is that there is no
trade union law. Even though trade unions are generally defined as
associations with no legal capacity, they are legally entitled to
participate in collective bargaining as well as to take legal action or
to be taken to court (Section 2 par. 1 of the Act on Collective
Agreements and section 10 of the Labour Court Act). The duties and
rights of trade union members are laid down in the relevant trade
union's status (the constitution act). Even though the statuses may
vary between different trade unions, they traditionally establish
similar essential duties and rights. There are also written agreements
concluded between the employer and the works council (a body
representing the employees of the establishment) because ,,the
relationship between the industrial unions and work councils in Germany
seems to have been highly significant. Pressures for the
decentralization of collective bargaining have been deflected onto the
works councils. The works council system and its linkage with
industry-wide bargaining has endowed the German economy with a unique
capacity for what Thelen called "negociated adjustment"
(Thelen, 1993: 75). One factor that should not be neglected is
co-determination, which contributes to the elaboration of various trade
union policies that play an important role in the organization and
functioning of the national economy (Eaton, 2000: 53-54).
Collective bargaining takes place over a written text (usually
based on the previous collective agreement and legislation) on which the
parties reach an agreement and which includes a social peace clause,
that limits the possibility of triggering collective labor disputes to
the (re)negotiation period. New employees' claims and other
collective labor conflicts with the same object and between the same
parties are forbidden throughout the duration of the collective
agreement. In this way, peace between the social partners is ensured
both at the level of the enterprise and at the level of the branch of
activity for the entire period of the collective convention's
validity (Radu, Avram, Nacu, 2011: 305).
Collective bargaining can also take place at the enterprise level
but companies are not obliged to negotiate, because they are covered by
branch agreements (this does not mean that enterprise-level bargaining
is prohibited).
German government has a discrete role in employment relations. Its
contribution is notable in two aspects: first, sets the legal framework
of negotiation and conflict; second, government can intervene when there
is an extension of a collective agreement, its role being to convince
companies that are not members of employers' organizations to meet
agreement's conditions. A collective agreement may be declared as
generally applicable to all employment relationships within its
geographical scope, whether or not the employer or the employee are
members of the parties to the agreement. This declaration is done by the
Ministry of Labour, if at least 50% of the employees who come under the
agreement's geographical area are hired by employers already bound
by the agreement; the accordance of both industrial partners is required
(Radu, Avram, Nacu, 2011: 305).
Solving collective labor conflicts in EU member states
Collective conflicts are the traditional weapon of trade unions.
Its use is based on strengths and union capacity. In states where
syndicalism is influential, the strike is essentially used as a threat.
In countries with weak syndication, the strike often "escapes"
the control of organizations.
The kind and the level of a dispute often have important legal and
strategic consequences for determining the method for resolving it. The
"classical" classification of labor conflicts divides them
into conflicts of interest and conflicts of rights. While conflicts of
interest are work conflicts which have as their object the establishment
of working conditions when negotiating the collective labor agreements
and which refer to the interests of a professional, social or economic
nature of employees, conflicts of rights concern the exercise of certain
rights or the fulfillment of obligations under laws or other normative
acts, as well as collective or individual labor agreements. Such
conflicts therefore concern the rights of employees already born. The
current Romanian regulations on labor conflicts - Law no. 62/2011 -
divides labor conflicts into: a) collective labor conflict - the labor
conflict between employees and employers that breaks out as to the
commencement, conduct or conclusion of negotiations on contracts or
collective agreements; b) individual labor conflict - the work conflict
which has as its object the exercise of certain rights or the
fulfillment of obligations arising from individual and collective labor
contracts or from collective agreements and civil service relationships,
as well as from laws or from other normative acts.
In the case of a conflict of rights its settlement can be done
under the conditions and according to the procedure provided by the law
- as a rule, by introducing an action at the court - or, if there is a
valid collective contract in force, this same agreement might include
dispositions setting out the mechanism the parties must follow in the
event of a individual dispute. Depending on the national legislation,
there may be legal provisions requiring that certain collective disputes
must follow certain compulsory steps or must be solved in a specified
manner for reasons of public or private interest protection; e.g. a
collective dispute involving an essential public service may be subject
to compulsory arbitration under the law (ILO Office, 2007: 19).
In European countries, collective labor disputes are settled either
in amicable ways (alternative dispute resolution) or through strike. All
methods of alternative dispute resolution (conciliation, mediation,
arbitration) involve the participation of a neutral third party and the
degree of its intervention makes the difference between one procedure or
another (ILO Office, 2007: 3).
In some EU member states, there is no distinction between
conciliation and mediation or these terms tend to overlap (Malta and
Slovenia). In other states, there is a definite difference, yet subtle,
between the two amiable forms of solving the conflicts. While the
conciliator has the task of facilitating communication between the
parties of the dispute, without being able to make any concrete proposal
to resolve the conflict, the role of the mediator also involves the
presentation of some variants of settlement that the parties can accept
or reject (ILO Office, 2007: 3).
Conciliation procedure may be compulsory or conventional -
depending on the legal frame specific to each country. In France,
conciliation is, as a rule, conventional. Normally, any collective
agreement must include a clause concerning the conciliation procedure if
a conflict arises between the two parties. Often, conciliation is
direct; it takes place between the two parties without the participation
of a third party. If there is no conventional procedure or if it has not
been able to function, the parties may resort to the formal procedure,
which has a subsidiary character. It involves the conciliatory
intervention of public authority. Thus, at first the informed prefect
can take the initiative to bring together the parties and try to
reconcile them. In addition, a conciliation attempt will be carried out
within regional or national tripartite commissions (employers'
representatives, employees and public authorities). Conciliation only
leads to a voluntary agreement. If it succeeds, the minute has the value
of a agreement, with the same authority and effect as a collective
agreement. In the event of failure, the minute shall record the points
of disagreement in order to facilitate a possible mediation.
In Romania, conciliation is compulsory. The representative trade
union or employees' representatives shall notify in writing the
territorial labor inspectorate or the Ministry of Labor about the
triggering of the collective labor conflict. The Delegate of the
Ministry of Labor/ the Territorial Labor Inspectorate plays the role of
conciliator.
In some EU countries, labor inspection services play a prominent
part in the prevention and resolution of collective conflicts.
Basically, there can be distinguished two models (systems). Under the
French system, labor inspectors often function as conciliators in cases
of collective disputes (Greece, Spain, Turkey, Romania). Under the
British tradition, labor inspectors are strictly forbidden from
interfering in industrial disputes (Cyprus, Germany, the Nordic
countries). The Polish system is an intermediary model in which the law
compels employers to bring a dispute to the attention of the regional
labor inspector who then typically requires that a workplace inspection
be carried out. Although the labor inspector does not behave as a
conciliator or as a mediator, the recording of the results of the
inspection, the finding of contraventions and the possible sanctioning
of the employer with the fine contributes to the solving of the
collective labor conflicts at the enterprise level (ILO Office, 2007:
13).
Mediation is a procedure that follows, in principle, conciliation
in case of failure. Unlike the Romanian system, in France, if the
parties wish, they can resort directly to mediation without using the
conciliation procedure. Also, in the event of a failure of conciliation,
parties may prefer mediation to arbitration, and finally, after the
failure of conciliation, it is common for neither the parties to the
conflict nor the chairman of the National Commission of Collective
Negociation nor the Minister of Labor to trigger the mediation
procedure. Mediation, initially optional (requires the parties'
agreement), may be binding if the chairman of the National Commission of
Collective Negociation or the Minister of Labor asks the parties to
resort to it after the failure of the conciliation, even if none of the
parties wants it (Roy, 2009: 150). In France, the mediator is either
elected by the parties or, in the absence of the agreement, elected by
the minister from the list of impartial and competent persons
established by him after consultation with the most representative trade
union organizations. In the first instance, the mediator plays the role
of a qualified investigator. Like a training judge, he collects
documentation on the dispute (economic situation of the enterprise,
worker's condition). For this purpose, he has investigative powers:
he can use expertise (e.g. accountancy expertise), witness audition, and
gather information from all interested parties. After receiving the
memoirs of the parties, he summoned them and tried to reconcile them.
The mediator's mission must be completed within one month (which
may be extended with the agreement of the parties to the dispute). It
shall be expressed in reasoned proposals bearing the title of
recommendation. This recommendation, proposed to the parties, is not
binding. The parties may reject the mediator's proposals. This
rejection must be motivated. Otherwise, the mediator records the
parties' agreement, which has the same value as a collective
agreement (Lyon-Caen, Pellisier and Supiot, 1994: 880-886).
Arbitration is another stage in solving a collective labor
conflict, which may be mandatory or voluntary, binding or advisory -
depending on the legal circumstances or the choice of the parties. As a
general rule, arbitration should be freely chosen and the parties should
be bound by the final decision. Compulsory arbitration, which is imposed
by law, is generally contrary to the principle of voluntary negotiation
of collective agreements (Gernigon, Ordero and Guido, 2000: 40-41).
There is an exception, however, in cases involving essential services,
the interruption of which would endanger human life, personal safety or
health of the whole or a part of the population.
Usually, arbitration typically follows after attempts at
conciliation and/or mediation between the parties have proven
unsuccessful (the case of Romania). In Bulgaria, when a collective
dispute is not solved through mediation, the parties may voluntarily
agree to submit the conflict to an individual arbitrator or an
arbitration commission (voluntary arbitration). Whichever option is
chosen, the arbitration process involves the hearings of both parties
after which the arbitrator(s) deliver(s) a binding decision in the
matter. Alternatively, during the course of the hearings, the parties
may be persuaded to sign an arbitration agreement, which has the same
legal value as an arbitration decision but the way of resolving the
dispute is freely chosen by the parties instead of being imposed by the
arbitrator(s). Mandatory arbitration is provided only in one hypothesis:
if no agreement is reached between the parties to the conflict on the
performance of minimum activities during the strike (Alexandrov Sashov,
2018: 195).
The usual way of solving collective labor disputes in Germany is
arbitration. This procedure aims at reconciling conflicting interests
and preventing the outbreak of collective actions (collective cessation
of work, for example). Even when a collective dispute broke out,
arbitration trials can also be made to reach an agreement and thus end
this action. In any case, arbitration always has the purpose of
contributing to the conclusion of a new collective agreement and thus to
maintain social peace. There are two kinds of arbitration: conventional
and state arbitration. Conventional arbitration intervenes if the
parties to a collective agreement have agreed in a separate agreement
that they will go to arbitration before a conflict begins. The state
arbitration procedure is triggered only if the direct conciliation
between the parties has been discontinued or the conventional
arbitration procedure has failed (Halbach, Poland, Schwedes, 1991:
303-304).
In Greece, a collective labor dispute is subject to arbitration
either directly, with the agreement of both parties or after a failed
mediation. In the latter case, the party who requested failed mediation
and the party that accepted the mediator's proposal unilaterally
may request arbitration. Employees retain the right to strike during
negotiations and during mediation or arbitration. However, this right is
temporarily banned if trade unions or employee representatives have
resorted to arbitration after accepting the mediator's proposal
(Kerameus, Kozyris, 1993: 254-255).
In any event, arbitration involves the participation of a neutral
third party who has the duty to examine all the case documents and the
evidence provided by both parties and to issue a decision that
definitively ends the conflict (ILO Office, 2007: 17-18).
The decision rendered in arbitration is binding on the parties,
being equivalent to a collective agreement. Thus, triggering a strike
with the same object and between the same parties after the end of the
arbitration procedure becomes illegal.
One feature existing in nearly all EU member states - excepting
France - is the peace obligation deriving from the collective
agreements, the clause on which the collective action/strike is
forbidden during the lifetime of the collective agreement.
The right to strike is, in most EU countries, guaranteed in the
Constitution, with the exception of Austria, Belgium, Ireland,
Luxembourg, Malta, the Netherlands, and the UK (Warneck, 2007: 7). In
some countries (Germany and Finland) the right to strike derives from
the constitutional freedom of association. There are also some states in
which this right has been mainly developed through the jurisprudence of
the courts: Belgium, Denmark, France, Ireland, Italy, Luxembourg and the
Netherlands (Warneck, 2007: 7).
Prohibitions and limitations on the exercise of the right to strike
may result from certain legal dispositions concerning collective
disputes resolution. In some countries, strike among public employees in
the military, police and emergency services is restricted or even
prohibited by law. Wild cat strikes are illegal; also strikes with a
clear political character.
Procedural conditions for declaring, conducting, suspending and
terminating the strike are governed by either law or collective
agreements and relate most often to conciliation and mediation
procedures, notice periods, the minimum number of votes to be scored
before a strike is taken. Only trade union organizations (representative
or not, as the case may be) and elected representatives of the employees
have the right to declare strike in order to support and defend the
social, professional and economic interests of the employees as well as
their statutory rights. The obligation of the strike's organizers
to hold a ballot before adopting the strike decision may be laid down
either in legislation (Romania) or in the collective agreement (Denmark)
or in the trade union statutes (Germany and the Netherlands).
Requiring the parties to pursue conciliation or mediation before
strike is legitimate as long as these two amiable procedures are not so
complex or slow that a legal declaration of strike becomes impossible in
practice or loses its effectiveness (ILO, 2006: 132).
Exercise of the right to strike must not be done abusively by
employees. Abuses make strike illegal. In most EU countries the fact of
stopping work by the employee in order to take part in a legal strike
can not constitute a reasoned justification for termination of the
employment contract; neither the contract can be abolished, nor can the
employer dismiss the strikers. During a legal strike, the employment
contract is suspended and wage entitlements are not paid during this
period. Nevertheless there are still some European states in which
participating in collective action/ strike is still considered a breach
of the main obligation of employees - that of performing the work:
Austria, Denmark, Ireland and the UK. An illegal strike is considered a
termination of the contract with serious consequences. The employer may
claim damages (either to the union, or the individuals or both) and
dismiss the strikers, provided that such dismissal is done in a manner
that does not constitute an abuse of rights.
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Roxana Cristina Radu (*)
Marina Loredana Belu (**)
(*) Assoc. Prof. PhD., University of Craiova, Faculty of Law,
Phone: 0040721400359, Email: roxanacristina.radu@yahoo.com.
(**) Lecturer PhD., University of Craiova, Faculty of Law, Phone:
0040740300355, Email: loribelu@yahoo.com.
Article Info
Received: March 31 2018
Accepted: April 10 2018
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