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					                                                                    Vorstand

EMF – EMCEF – ETUF/TCL Joint Collective Bargaining Summer College
Istanbul 13th – 15th of September




National experiences of dealing with precarious employment in the
framework of the EMF Second Common Demand
The case of Germany: IG Metall‘s activities
   Dealing with precarious work in Germany
                                                                    Vorstand




        Current development of precarious work in Germany.
        Legal framework
        Collective agreements
        Political campaigns http://www.gleichearbeit-gleichesgeld.de/




IG Metall Collective Bargaining Department                                     2
   Dealing with precarious work in Germany
                                                                    Vorstand




        Current development of precarious work in Germany.
        Legal framework
        Collective agreements
        Political campaigns http://www.gleichearbeit-gleichesgeld.de/




IG Metall Collective Bargaining Department                                     3
        Labour market 2010
        No increase of unemployment                                                                                Vorstand




                         Unemployment slightly decreasing
                       Arbeitslosigkeit leicht rückläufig
                                    Arbeitslose in Millionen
                                 Number of unemployed in million                                               Unemployment
                                             4,9                                                               rate
                                                    4,5                                                        2008: 7,8%
                              4,4     4,4
                       4,1                                                                                     2009: 8,2%
        3,9    3,9                                          3,8
                                                                                             Forecast
                                                                                              Prognose
                                                                                                               2010: 7,7%
                                                                           3,4
                                                                   3,3           3,2                           2011: 7,0 – 7,2%
                                                                                                  2,9
                                                                                                  bis
                                                                                                  3,1




       2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010                                    2011

    Source: Federal Labour Office, Forecasts: Institutes
    Quelle: Bundesagentur für Arbeit, Prognose: Wirtschaftsforschungsinstitute         Figure: IG Metall
                                                                                           Grafik: IG Metall


IG Metall Collective Bargaining Department                                                                                    4
Increase of Temporary Agency Work (TAW)
                                                                                                    Vorstand



                        December 2010: Strong increase of TAW
                    Dezember 2010: Leiharbeit legt kräftig zu
              Agency workers in Germany in all sectors together (in 1000)
                       Leiharbeitende in der Gesamtwirtschaft (in 1.000)                             BZA-Zeit-
                                                                                                     arbeits-
                                                                                    + 38,7 %          index
                                                                                       gg.
           Vollständige Deregulierung
          Total deregulation of TAW by                                             December
                                                                                   Dezember              877
                  der Leiharbeit
          SPD and Greenund Grüne
              durch SPD Party                                                         2009
                                                                                761 (632)
                                                                         715
                                                                                       625
                                                                  580

                                                           444
                                                    386
             329        341       318        330




             2000      2001      2002        2003   2004   2005   2006   2007   2008   2009            Dez 10
         Source: Federal Labour Office, IGM, BZA Berechnungen IG Metall, BZA
          Quelle: Bundesagentur für Arbeit, eigene                                            Figure: IG Metall
                                                                                              Grafik: IG Metall
IG Metall Collective Bargaining Department                                                                        5
    Current development of precarious work in
    Germany (in 1000, annual average)                                                                                         Vorstand




                   +1.5 %  7.835



+45.9%
                   7.720




                                                                             +0.6%

                                                          +38.4%




                                                                                   4.929
                                                                           4.900
           5.290




                                                                                                                 -2,4%
                                                                   3.540                   +72,0%
                                                   +21.6%




                                                                                                                  2.517
                                                                                                         2.580
                                   +86.0%
                                                    742
                                             610




                                                                                                 1.500
                                     328




         Total number of                   TAW                in part-time till 20h           marginally occupied
          employees in
         precarious work

                                                             1998          2008        2010              Source: Federal Labour Office

IG Metall Collective Bargaining Department                                                                                               6
   Aspects of precarious work
                                                                                               Vorstand




        Metal and Electrical Industries:
           • June 2000: 109,905 temporary agency workers (32 % of all taw)
           • June 2010: 155,620 taw (19.3 % of all taw)
           • These numbers are related only to industrial workers. Together with technicians and engineers
             there is a higher share: 2000 35.8%; 2010 23.9%. (Even higher when industrial services and
             administrative employees are included).

        Increase of precarious job offers after the crisis.

        Fixed-term contracts increased in 2010 about 4,6 % (121,000 employes).
        That means that 38 % of new labour contracts are fixed-term contracts .

        Precarious work means precarious wages:
           • more than 10% of all temporary agency workers in a full time job earn less than 1,000 Euro gross
             per month, and approx. 22% of all temporary agency workers in full time jobs earn less than 1,001
             till 1,200 Euro gross per month. Temporary agency workers earn approx. half of the wage as
             a normal worker.
           • 13.1% of all temporary agency workers need a top-up benefit (ALG II, better known as Hartz IV).


IG Metall Collective Bargaining Department                                                                     7
   Dealing with precarious work in Germany
                                                                    Vorstand




        Current development of precarious work in Germany.
        Legal framework
        Collective agreements
        Political campaigns http://www.gleichearbeit-gleichesgeld.de/




IG Metall Collective Bargaining Department                                     8
   Legal Framework: AÜG
                                                               Vorstand



        1972: first regulation on TAW.
        Changes of the law since introducion.
        Examples: The permission to hire TAW in a company was extended
        from 3 to 24 months. Currently there is no maximum limit.
        Last deregulation was made by the Socialdemocratic-Green Coalition
        in December 2002 (Hartz-Reforms).
        TAW is used as a labour market tool.
        Equal treatment and pay with the exceptions: Collective Agreement
        New regulation March 2011: Minimum Wage for TAW and restriction
        of revolving door effect.
        The new regulation is far behind trade union demands and the EU
        directive on TAW.

IG Metall Collective Bargaining Department                                9
   Dealing with precarious work in Germany
                                                                    Vorstand




        Current development of precarious work in Germany.
        Legal framework
        Collective agreements
        Political campaigns http://www.gleichearbeit-gleichesgeld.de/




IG Metall Collective Bargaining Department                                     10
   Collective Agreement of the joint negotiation
   group of the trade unions of DGB                                                      Vorstand




        Pressure by Yellow Trade Unions in combination with legal framework.

        Weak position of DGB and its member organisations: low rate of
        membership among temporary agency workers.  collective
        agreement is at a low level.

        In March 2010 the agreements between DGB joint negotiation group for
        TAW and the employers associations BZA and iGZ were signed.
           • The current minimum wage in TAW is 7,79 € (West-Germany) and 6,89 € (East Germany)

        Sectoral agreement for M+E industries was rejected so far by the
        employers association of this sector.

        Despite this, it was possible to negotiate sucessfully for equal pay
        agreements at company level (e.g. automobil OEMs)

        A Campaign of IG Metall was started to improve working and wage
        conditions of TAW at company level. Approx. 500 agreements reached.

IG Metall Collective Bargaining Department                                                          11
   Federal Law Court cancels Collective
   Agreement of CGZP                                                  Vorstand




        14th of December 2010 the Federal Labour Court (Bundesarbeitsgericht
        BAG) has ascertained that the so called „Collective Bargaining
        Fellowship of Christian Trade Unions for Temporary Agency Work“
        (Tarifgemeinschaft Christlicher Gewerkschaften für Zeitarbeit CGZP)
        have no competence to sign collective agreements.

        The CGZP is a fellowship of different organisations (CGB, DHV, GÖD).
        Only the CGB is recognized as a trade union. The agreement was
        signed only by CGZP and not by the member organisations.

        The consequence: The agreement between CGZP and AMP (another
        employers association of TAW) is not valid any more and the affected
        agency workers can claim retroactively back pay of wages.




IG Metall Collective Bargaining Department                                       12
   Sectoral Agreement on Equal Pay of TAW in
   the Steel Industry                                                    Vorstand




        Collective agreement for the Steel Industry (NRW, North, Salzgitter,
        East) signed 30th of September 2010.

        All Temporary Agancy Workers in the steel industry will receive equal
        pay beginning on the 1st of January 2011.

         With this collective agreement agency workers have the right to equal
        pay, it is a contractual relationship under the law of obligations. If an
        agency does not pay equal wages, the steel company is then liable for
        the shortfall in the agency worker’s pay. The equal pay agreement for
        the steel industry is valid till the end of the year 2012.

        Collective agreement for the Steel Industry in the Saarland signed 09th
        of December 2010.

        Temporary agency work is strictly conditioned, other flex-instruments
        are not applicable and the personal period of a temporary agency
        worker is generally limited to 3 months, the maximum extension ends
        after 6 months.
IG Metall Collective Bargaining Department                                          13
   Sectoral Agreement on Equal Pay of TAW in
   the Metal and Electrical Industries                                Vorstand




        Exploratory talks in the end of 2009/beginning of 2010 showed that M+E
        employers organisations did not want to negotiate a sectoral
        agreement on TAW/Equal Pay.

        Situation has changed: Steel Industry as an icebreaker, CGZP judement
        and the change in the public opinion.

        Equal Pay for temporary agency workers in the metal and electrical
        industry will be on the agenda in the next collective bargaining
        campaign in Spring 2012.




IG Metall Collective Bargaining Department                                       14
   Dealing with precarious work in Germany
                                                                    Vorstand




        Current development of precarious work in Germany.
        Legal framework
        Collective agreements
        Political campaigns http://www.gleichearbeit-gleichesgeld.de/




IG Metall Collective Bargaining Department                                     15
   Dealing with precarious work in Germany
                                                                               Vorstand




    Political Campaign of IG Metall „Equal Work? – Equal Pay!“

        Pressure on government to improve legal framework (at least full
        adoption of EU directive on TAW).

        Improve collective and company agreements.

        IG Metall demands:
           • normal contracts instead of TAW.
           • unlimited contracts instead of fixed-term contracts.
           • no dumping wages by contracts for work and services
           • unlimited contracts for apprentices after their apprenticeship.

        Unionize temporary agency workers.

        210,000 people have participated in the nationwide action day against
        precarious work on 24th of February.


IG Metall Collective Bargaining Department                                                16
                                                          Vorstand




                                             Thank you
                                                 for
                                              attention




    Contact: uwe.fink@igmetall.de

IG Metall Collective Bargaining Department                           17

				
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