Context

The Purpose of Labour Laws

Professor Peter Turnbull

Cardiff University, UK

Key Features of European Industrial Relations

High degree of interest representation

Legal intervention on behalf of the weaker party to the employment relationship

Coordinated collective bargaining

Density Rate of Employers’ Organisations, EU-25

Trade Union Density, EU-25

Trade Union Membership and Collective Bargaining Coverage (selected EU States)

0102030405060708090

100

AT BE FR PT NL ES IT DE SE DK FI UK

Coverage ofcollectiveagreements

Uniondensity

Aggregate Labour Regulation (40 variables)

Source: http://www.cbr.cam.ac.uk/research/programme2/project2Source: http://www.cbr.cam.ac.uk/research/programme2/project2--20.htm20.htm

Dominant Level of Collective Bargaining in Wage Setting, EU-25

Inter-sectoral – Ireland, Finland

Sector – Belgium, Denmark, Germany, Greece, Spain, Italy, Netherlands, Austria, Portugal, Slovenia, Slovakia, Sweden, France*, Luxembourg*

Enterprise – Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, UK

Does Liberalisation Have a Positive(or Negative) Impact on Employees?

% ECA ITFPrivatisation 75 (8) 11 (50)Commercialisation 33 (25) 16 (47)Low-cost carriers 0 (54) 3 (74)Global alliances 15 (39) 23 (43)

n = 13 n = 52Source: Cardiff University (1998)

Positive (and Negative) Effects of Liberalisation

% ECA ITFHours of work 9 (91) 7 (54)Work intensity 9 (82) 2 (78)Job security 10 (30) 9 (70)Job satisfaction 9 (64) 5 (69)Health & safety 0 (70) 20 (37)Earnings 27 (55) 13 (56)

n = 13 n = 52Source: Cardiff University (1998)

Low Cost Carriers in Europe“the worst forms of management practice exist in this segment of our industry”

The absence of an EU framework for the negotiation of a Europe-wide CLA “is a problem throughout the industry, [but] it is currently most prevalent in the growing LCC sector, with its many new start-ups and flight crew employed and switched between many different bases across Europe”Source: ECA (2006) Upheaval in the European Skies

Liberalisation and Collective Bargaining“liberalisation has increased the pressure on cost cutting. Some airlines have adapted in a determined and aggressive way, seeking continuously to reduce costs with a ruthless attitude for all actions that serve their business interests. In these airlines, collective bargaining is the only mechanism to avoid a downward spiral of pilots’ terms and conditions and indeed their basic employment rights”Source: ECA (2007) Trans-national Representation and Collective Bargaining in Europe

European Flight Crew and Collective Bargaining

% Airlines* Associations**

CLA in force 81 -Legally binding CLA 75 -Outside arbitration 54 -Industrial action*** - 65

* Company with more than three aircraft (97 airlines in total)** Seventeen ECA affiliates in total*** Previous 5 years

Source: ECA survey (2007)

Trans-National Representation and Collective Bargaining in Europe: The Pilots’ Approach

“Pilot Associations are great believers in the utility of collective bargaining, even in a trans-national context … all the benefits from national collective bargaining apply to the trans-national mode, to a greater or lesser extent, and there should be no barriers to collective bargaining at any level”

Source: ECA (2007: 5)

The Social Agenda for 2005-2010

“Providing an optional framework for trans-national collective bargaining at either enterprise or sectoral level:

• could support companies and sectors to handle challenges dealing with issues such as work organisation, employment, working conditions, training,

• it will give the social partners a basis for increasing their capacity to act at trans-national level. It will provide an innovative tool to adapt to changing circumstances, and provide cost-effective trans-national responses.”

Source: COM (2005)33 final

An Effective Framework for Trans-National Collective Bargaining

Voluntary then compulsory

Representative organisations

Scope of CLAs

Legal enforcement at the European level

Complementary to national collective bargaining

Occupational bargaining

Source: ECA (2007: 15-16)

Effectiveness of Conventional Action

“conventional forms of national action can still be effective (e.g. collective bargaining, strikes, lobbying national politicians, etc) even, on occasion, in relation to trans-national airlines”

Source: ECA (2007: 14)

British Airways-BALPA Dispute

OpenSkies to the USA

Extending the geographical scope of “Schedule K”

A mandate for strike action

Legal action – Viking and Laval

Regulation of International Secondary Action

The action in the “secondary” country must be lawful on its own terms under national rules and/or

There must be at least some community of interest in the outcome of the action between the participants in the “primary” and “secondary” action

If the primary action is unlawful, the “secondary” action may also be unlawful

Ryanair – A Trans-National LCC

Twenty-three bases in eight EU Member States

Irish and UK contracts

Training costs and “indentured labour”

Agency workers and contract hours

“Unburdened by integrity”

Ryanair Management

“all the hallmarks of action in terrorem”

(Mr Justice Smyth)

“Oh, it is excellent to have a giant’s strength; but it is tyrannous to use it like a giant.”

Measure for Measure, Act II.2

The Benefits of an EU-US Open Aviation Area

25 million additional EU-US passengers

€15bn benefits for consumers

80,000 new jobs in the EU and US combined

Productivity and Labour Market Regulation in European Countries

France

Denmark

FinlandAustria

ItalyGreece

Sweden

Portugal

UK

Spain

Ireland

Netherlands

Germany

Belgium

0

0.5

1

1.5

2

2.5

3

3.5

4

50 60 70 80 90 100 110 120 130

Productivity (GDP per hour worked, 2002) relative to EU average

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