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					                            FB Tarifpolitik, Ressort Europa   Vorstand




              Instruments for
            secure employment
                 in the crisis


Cyprus, September 2009
             Effects of the crisis on the                                                             Vorstand

             metall industry in Germany
                   Stärkster Einbruch Gross Domestic Product
                Strongest decrease of der Wirtschaftsleistung
                                 seit 80 years
                                since80 Jahren
                             Veränderung des Bruttoinlandsprodukts in Prozent
                                       Rate of change in percent

                                                                                       Prognosen
                                                                                       Forecast
                             3,2                                     3,0
                                                                           2,5
              2,0     2,0                                                                      +0,5
                                    1,2                  1,1                     1,3
                                                               0,8
                                            0,0
                                                  -0,2
                                                                                              bis
                                                                                         -5,4 -0,5
                                                                                         bis
                                                                                         -6,5




               98     99      00     01     02    03     04    05    06    07    08       09    10
          Quelle: Statistisches Bundesamt, Prognosen der Institute im Frühjahr/Sommer 2009
        Source: Federal Bureau of Statistics, Spring/Summer 2009 Forecast of Economic Institutes

FB Tarifpolitik, Ressort Europa, Uwe Fink                                                                        2
             Effects of the crisis on the                                                                    Vorstand

             metall industry in Germany
                 Auftragseingang in the Metall- und Elektroindustrie
                Incomming orders in der metall and electrical industry
                                                   Index: 2005 = 100


            130
                                                                   kalender- und
                                                                 saisonbereinigt
            120


            110


            100


             90
                                                       Originalw erte

             80
                                                                                      Mai/April 09: + 4,6%
                                                                                     Mai 09/Mai 08: -31,3%
             70
               2000        2001      2002   2003      2004     2005     2006       2007    2008     2009
                    Quelle: Statistisches Bundesamt
                  Source: Federal Bureau of Statistics

FB Tarifpolitik, Ressort Europa, Uwe Fink                                                                               3
             Effects of the crisis on the                                                                  Vorstand

             metall industry in Germany
                                     Industrielle Produktion
                      Industrial Produktion in the sectors of IG Metall
                                            im Organisationsbereich der IG Metall
                                    rate of change May 2009/08 in %
                                  Veränderung Mai 2009/08 in Prozent (arbeitsstündlich bereinigt)

         Metallerzeugung und -bearbeitung                          -34,6

                      Elektrische Ausrüstungen                              -27,7

                               Metallerzeugnisse                              -26,4
         Luft-, Wasser-, Schienenfahrzeuge                                    -26,2
                                    Maschinenbau                              -26,1

                  Metall- und Elektroindustrie                             -23,6
                                    Textilindustrie                                 -22,8
                            DV, Elektronik, Optik                                     -21,3
                              Automobilindustrie                                       -20,5
                                    Möbelindustrie                                             -13,7
                                      Holzgewerbe                                                -11,5
                           Bekleidungsindustrie                                                     -9,8
        Quelle: Federal Bureau of Statistics
        Source:Statistisches Bundesamt

FB Tarifpolitik, Ressort Europa, Uwe Fink                                                                             4
             Effects of the crisis on the                                                   Vorstand

             metall industry in Germany
          Scenarios: Threat of job losses in the German Metall and
          Electrical Industry

                                            Depression    Stagnation    Slow Increase Fast Recover



                       2009                   - 549.434     - 366.289       - 366.289     -366.289

                       2010                    - 96.517      - 75.822        - 32.966     - 16.483
                       2011                     - 45254      - 16.104        - 16.318                  0
                       2012                    - 44.575      - 16.023        -16.237        16.401
                       2013                    - 29.271      - 15.943        - 16.155       16.483
                 total Effects                - 765.052     - 490.182       - 447.966    - 349.889
                       on
                 employment
   Source: Economic Department of IGM

FB Tarifpolitik, Ressort Europa, Uwe Fink                                                                  5
             Effects of the crisis upon             Vorstand

             collective bargaining
     Steel collective bargaining round Spring 2009.
     Employers idea: wage freeze! But Effective defence by IG
     Metall!
     But next CB campaing in M+E sector will happen in
     worse conditions (Beginning 2010).
     Possible demands: secure income and employment.




FB Tarifpolitik, Ressort Europa, Uwe Fink                      6
             Instruments in the crisis                               Vorstand




     Collective bargaining policy alone can not stop the
     economic crisis!
     It‘s necessary to fight the crisis with the with instruments
     of economic policy.
     Instruments of collective bargaining can in the first step
     only moderate the situation of the affected workers (first
     a defensive instrument).
     Prospect: Collective bargaining policy as element of
     stabilizing the economic situation:
        • Strengthen the domestic market by securing income especially during
          the crisis.
        • Fair distribution of existing labour volume.




FB Tarifpolitik, Ressort Europa, Uwe Fink                                       7
       Company Policy Instruments                   Vorstand




 First measures when first indicators of the crisis appeared
   in the industrial sectors (late summer 2008):


     Reduction of overtime.
     Reduction of flexitime account.
     Reduction of agency work (minefield for trade unions:
     agency workers were the first victims of the crisis,
     decreasing number of agency workers from July 2008 till
     April 2009 aprox. 300.000!)


 All these measures in autumn 2008 were not enough!


FB Tarifpolitik, Ressort Europa, Uwe Fink                      8
        Short time (1)                                   Vorstand




     Instrument with a time limit to avoid job losses.
        • Maintain the skilled labour force.
        • Maintain the performance of the company.
        • Have high flexibility in the company.
        • Secure jobs.
        • Part compensation of reduction in wage.

     Conditions: short time allowance (STA) can be
     introduced when the reduction of labour volume due to:
        • temporary situations,
        • inevitable situations,
        • situations for economic reasons,
        • the appearance of a reduction in wages.

     All workers with a labour contract which includes a social
     security contribution and who are not layed off have the
     right to STA.

FB Tarifpolitik, Ressort Europa, Uwe Fink                           9
        Short time (2)                               Vorstand




     The employer alone has to pay the social security
     contribution for the short time allowance (unlike the
     normal wage: employers and employees share together).
     From 01.02.2009 the employer receives a 50%
     reimbursement for the social security contribution on
     short time allowance.
     From 01.07.2009 the employer receives 100%
     reimbursement for the social security contribution on
     short time allowance.




FB Tarifpolitik, Ressort Europa, Uwe Fink                       10
       Short time (3)                                  Vorstand




     Maximum period of short time allowance: 24 months,
     condition short time must start latest in December 2009.
     IG Metall has supported the demand to prolong the period
     of short time allowance from 18 to 24 months. Change of
     legislation in 29th of May 2009.
     Volume of short time allowance in relation to the lost net
     wage:
        • 60% for employees without children
        • 67% for employees with children

     To secure the income in a better way IG Metall demands
     additional payment at company level on the net wage
     plus short time allowance (general collective agreement
     BaWü or company agreements).


FB Tarifpolitik, Ressort Europa, Uwe Fink                         11
               Short time (4a)                                                         Vorstand




  Example: gross wage: 3000 €, employee
  tax class III, ; reduction 10 %
                                                                       total netto:
                                                                       2.055,31

                                                                          short time
                                                                          allowance
                                                                             98,97

                                   former net
                                      wage
                                                                          actual
                                    2.104,05                             net wage
                                                                        1.956,34


                                            net wage   short time allowance




FB Tarifpolitik, Ressort Europa, Uwe Fink                                                         12
               Short time (4b)                                              Vorstand




                  Calculation of short time allowance with part reduction
                  and complete reduction




FB Tarifpolitik, Ressort Europa, Uwe Fink                                              13
               Short time (5)                                                                         Vorstand




            Number of employees in                                                                 1.247
            short time (in 1000)                                                     1.076



                                                                                             726
                                                                               649
                                                                       572


                                                         270     288

                                            130    121
                          71           68
                    27

                     Oct 08            Nov 08      Dec 08        Jan 01        Feb 09        Mrz 09

                                                  M+E Industry   all sectors




FB Tarifpolitik, Ressort Europa, Uwe Fink                                                                        14
       Use qualification offensivly
                                                                           Vorstand



 Use the „quiet period“: qualification in times of short work:
 Secure the future of employees and companies.
 Possibilities for sponsored qualification during short time
 created by stimulus package II:
    • Reimbursement of complete social security contribution, if the employee partcipates
      in a qualification.
    • Costs of qualification are covered partly or completely by the Bundesagentur für
      Arbeit (Federal Labour Office).

 Qualifications obliged by law are not covered (e.g. accident
 prevention). Qualifications, which would have been done by
 the company also without public subsidies (e.g. qualification
 needed because of new products and new machines).
 Collective agreement „Short work, qualification and
 employment“

FB Tarifpolitik, Ressort Europa, Uwe Fink                                             15
       Collective agreement: Secure                   Vorstand

       employment
     Use when the period of short time allowance is due to
     expire.
     TVBesch permits the reduction of working time to 30
     hours per week in West Germany and to 33 hours per
     week in East Germany.
     Employees maintain their status as full time workers and
     receive during the contract protection against job losses
     at company level .
     Reduction of wages in relation to reduced working time.
     Reduction of 5 hours means wage reduction of 14,3
     percent.



FB Tarifpolitik, Ressort Europa, Uwe Fink                        16
Collective agreements during the crisis: Metall
+ Electrical Agreement 2008                                                                                      Vorstand



     After twentythree hours of negotiations, a pilot agreement about pay increase
     was concluded on the 12th of November 2008 in Sindelfingen (region of
     Baden-Württemberg).

     Pay increase
        • One-off payment of 510 €(which does not enter into the pay scale)
              510 € one-off payment (170 € each month) for the period 1st of November 2008 until 31st of January 2009
              that is about 5.5 % increase for the reference pay (pay of a skilled worker, “Ecklohn”).
        • Pay Increase of 4,2 % which enters into the pay scale:
              2.1 % for the period: 1st of February 2009 until 30th of April 2009:
              An additional increase of 2.1 % for the period: 1st of May 2009 until 30th of April 2010 (both periods together
               amount to 4.2 % calculated against the reference period of October 2008)
              Option: At company level, the beginning of the second period of pay rise (May until April 2010) can be put off until the
               30th of November 2009. It depends on the respective economic situation of a company. Management and works
               council have to negotiate and to conclude a works agreement.
        • Additonal lump-sum payment (which does not enter into the pay scale):
              122 € lump-sum payment in September 2009

     The period of validity of the whole agreement lasts 18 months. The agreement
     ends on 30th of April 2010 and was adopted in all the other regions.

FB Tarifpolitik, Ressort Europa, Uwe Fink                                                                                      17
Collective agreements during the crisis: Steel Agreement
2009 – Secure wages and employment                                   Vorstand




     Secure and increase wages stabilize the internal market
     in the crisis!
        • One-off payment 350 € for 2009.
        • Apprentices recive 50 € for 2009.
        • 2,0 % Wage increase beginning 1st of January 2010.

     Improvment of TV Besch (part compensation of wage
     reduction)
        • From 1st of April all employees receive compensation as shown below:
        • 33 hours + ¼ hour
        • 32 hours + ½ hour
        • 31 hours + ¾ hour
        • 30 hours + 1 hour
        • 29 hours + 1 ¼ hour
        • 28 hours + 1 ¾ hour


FB Tarifpolitik, Ressort Europa, Uwe Fink                                       18
          Threat: Job losses after
          Summer break 2009                                                                       Vorstand




                              Number of uneployed will increase
                               Arbeitslosigkeit steigt wieder an
                                               Arbeitslose in MillionenM.
                                                  Unemployed in
                                                                                     Forecast
                                                                                     Prognose
                                                       4,9
                                                                                            4,7
                                                             4,5
                                             4,4 4,4
                                       4,1
                        3,9 3,9
                                                                   3,8
                                                                                      3,7
                                                                         3,3




                        2000 2001 2002 2003 2004 2005 2006 2007 2008                 2009 2010

                     Quelle: Bundesagentur für Arbeit, Prognose: Frühjahrsgutachten 2009
FB Tarifpolitik, Ressort Europa, Uwe Fink                                                                    19
                                  FB Tarifpolitik, Ressort Europa   Vorstand




          Thanks for your
             attention!

Collective Bargaining Department/European Wage Policy
Uwe Fink, Tel.: +49/69/6693-2151, uwe.fink@igmetall.de

				
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