Upload
sheena-campbell
View
216
Download
0
Tags:
Embed Size (px)
Citation preview
Funded under the European Commission’s FP6 (CIT5-2006-028478)
PRIVATISATION OF PUBLIC SERVICESAND CONSEQUENCES FOR LABOUR European Experiences
19 November 2009Toronto, Centre for Social JusticeChristoph Hermann, Working Life Research Centre, Vienna
Funded under the European Commission’s FP6 (CIT5-2006-028478)
2
Presentation of the PIQUE project
Forms of liberalisation, privatisation and marketisation
State of liberalisation, privatisation and marketisation
Company reactions
Employment, working conditions, HRM, industrial relations
Trade unions strategies
Conclusions
CONTENT OF THE PRESENTATION
Funded under the European Commission’s FP6 (CIT5-2006-028478)
3
Three-year project funded by the European Commission in the 6th framework programme
6 countries: Austria, Beligum, Germany, Poland, Sweden, United Kingdom
4 sectors: Electricity, postal services, local public transport, health services/hospitals
Literature and data analysis
Company case studies
Survey on users‘ perspective
Privatisation of Public Services and the Imapct on Quality, Employment and
Productivity (PIQUE)
Funded under the European Commission’s FP6 (CIT5-2006-028478)
4
THE PIQUE CONSORTIUM
4
Forschungs- und Beratungsstelle Arbeitswelt,Vienna, Austria
Instituut voor de Overheid, K.U.Leuven, Belgium
Wirtschaft- und Sozial-wissenschaftliches Institut (WSI) der Hans-Boeckler-Stiftung, Duesseldorf, Germany
Working Lives Research Institute, London Metropolitan University, UK
Instytut Socjologii, Universytet Warszawski, Poland
Hoger Instituut voor de Arbeid (HIVA), K.U. Leuven), Belgium
Institutionen för Arbetsvetenskap, Göteborgs Universitet, Sweden
Funded under the European Commission’s FP6 (CIT5-2006-028478)
5
Abolishment of monopolies
Competitive tendering
Changes in funding
Conversion into private law companies
Part and full divestment
Outsourcing, PPPs and PFI
FORMS OF LIBERALISATION, PRIVATISATION AND MARKETISATION
Funded under the European Commission’s FP6 (CIT5-2006-028478)
6
Electricity: fully liberalised since 2007, oligopolistic markets, strong increase in private ownership
Postal services: full liberalisation in 2011/13, market dominance of incumbents; substantial increase in private ownership
Local public tranport: largely liberalised in Sweden and UK; concentration; international providers
Hospitals: Conversion into private law companies; changes in funding; privatisation in Germany, PFI in the UK
More privatisation than liberalisation
STATE OF LIBERALISATION, PRIVATISATION AND MARKETISATION
Funded under the European Commission’s FP6 (CIT5-2006-028478)
7
OWNERSHIP, MARKETS, REGULATION
Austria Belgium Germany
Poland Sweden UK
Postal services
Liberal. Limited Limited Rather limited
Very limited
Moderate Rather limited
Privat. Substantial increase
Substantial increase
Strong increase
Marginal increase
Limited increase
Limited increase
Electricity
Liberal. Limited Very limited Limited Strong Moderate Strong
Privat. Substantial increase
Moderate increase
Substantial increase
Substantial increase
Substantial increase
Very strong increase
Local public transport
Liberal. Limited Very limited Rather limited
Limited Strong Strong
Privat. Limited increase
Very limited increase
Moderate increase
Limited increase
Strong increase
Very strong increase
Hospitals
Liberal. Limited Limited Moderate Limited Very limited
Very limited
Privat. Limited increase
Moderate increase
Strong increase
Limited increase
Very limited increase
Limited increase
Funded under the European Commission’s FP6 (CIT5-2006-028478)
8
Mergers and acquisitions
Private and foreign ownership
Internationalisation
Diversification
Focus on lucrative market segments
Profit-oriented price policy
Cost-cutting
COMPANY REACTIONS – Major strategies
Funded under the European Commission’s FP6 (CIT5-2006-028478)
9
Reorganisation and introduction of new technology
Streamlining of supply
Reduction in employment
Payment of lower wages
Casualisation and dequalification
Intensification of work
COMPANY REACTIONS – Cost cutting
Funded under the European Commission’s FP6 (CIT5-2006-028478)
10
SUBCONTRACTING AND OUTSOURCING: German municipal transport provider
Municipality
City Utilities Holding
City Bus
Urban Bus Regional Bus
Neighbour city
Another city
Another city
Another company
Other interests
City Mobil Disposal company Energy and water company
Subcontractor
Funded under the European Commission’s FP6 (CIT5-2006-028478)
11
Substantial reductions in electricity and postal services
Increase in atypical and precarious employment
Part-time and marginal part-time
Temporary jobs
Fixed-term contracts
Self-employment
EMPLOYMENT
Funded under the European Commission’s FP6 (CIT5-2006-028478)
12
EMPLOYMENT IN GERMAN LETTER MARKET
0
10
20
30
40
50
60
70
German Post AG Competitors Total
Full-time Part-time Marginal part-time
%
Funded under the European Commission’s FP6 (CIT5-2006-028478)
13
WAGE DIFFERENTIALS IN POSTAL SERVICES
Average basic wages rates (in Euros)
Incumbent old Incumbent new Competitors
Austria 11 9.35 4-6
Germany 17 11,5 5-6
Netherlands 14 9 6-8
Funded under the European Commission’s FP6 (CIT5-2006-028478)
14
WAGE DIFFERENTIALS WITHIN FORMER MONPOLISTS
Electricity Postal services
AT
Lower wages for employees hired after 2001 (minus 13 %)
Lower wages for workers hired after 1. August 2009 (up to minus 25 per cent
BE Lower wages for employees hired after 2002 (between 22 and 34% less
GE
About 30% lower wages for employees employed after 2006 in the largest electricity company
Lower wages for blue-collar workers hired after 2001 and white-collar workers hired after 2003 (up to minus 30 per cent)
PO
Higher wages for new employees
Funded under the European Commission’s FP6 (CIT5-2006-028478)
15
Increase in work intensity and work pressures
Increase in weekly working hours
Increase in part-time hours
Increase in overtime
Increase in split work-days
WORKING CONDITIONS
Funded under the European Commission’s FP6 (CIT5-2006-028478)
16
Temporary job instead of life-long employment career
Introduction of performance-related wage components
Weakening of seniority and performance-based promotion
Differential access to training
Dequalification
HUMAN RESOURCE MANAGEMENT
Funded under the European Commission’s FP6 (CIT5-2006-028478)
17
Growing fragmentation and emergence of two- and multiple-tier labour relations systems
Differences between ‘old’ and ‘new’ employees
Differences between incumbents and new competitors
Differences between parent companies, subsidiaries and outsourced services
INDUSTRIAL RELATIONS
Funded under the European Commission’s FP6 (CIT5-2006-028478)
18
Public sector labour relations
before liberalisation
Labour relations after liberalisation
Former MonopolistsNew
Competitors
Union density High High Low
Collective bargaining
Centralised bargaining
Company bargainingCompany
bargaining, no bargaining
Bargaining coverage High High Low
Employment statusCivil servants and public employees
Decrease in civil servants, in crease in ‚private‘ employees
Private employees
WorkforceRelatively
homogenous workforce
Segmented workforce (Core- versus peripheral staff)
Employment security HighRelatively high for core
workers, increase in fixed-term contracts
Low
Competition on wages and working conditions
Low High
THE DISMANTLING OF THE PUBLIC SECTOR LABOUR RELATIONS REGIME
Funded under the European Commission’s FP6 (CIT5-2006-028478)
19
Initial phase of rejection and opposition
Second phase: concession bargaining (early retirement, golden handshakes); protection of rights for established workers, concessions for new entrants
Third phase: building broader anti-privatisation alliances with social movements; anti-privatisation referenda
At the same time: resisting further restructuring; bargaining and lobbying for social regulation (e.g. minimum wages)
Fourth phase: promoting alternatives (re-municipalisation); public service directive; rebuilding the public sector
TRADE UNION RESPONSES
Funded under the European Commission’s FP6 (CIT5-2006-028478)
20
The commodification of public services demands for the commodification of public sector employment (use value is subordinated to exchange value)
Commodification of public sector employment = wage cuts, casualization, intensification
Growing inequality among workers as well as service users: Privatisation as class project!
Deteriorating service quality especially where quality depends on labour inputs and working conditions
CONCLUSIONS I
Funded under the European Commission’s FP6 (CIT5-2006-028478)
21
Commodification of public services is an ongoing process with no end in sight
The financial crisis will cause additional budget cuts and likely result in more outsourcing, PPPs and PFI
Pressure on public sector trade unions and workers will further increase
Services will further deteriorate
Coalitions between trade unions and social movements must be intensified and expanded
New competitors and contractors must be organised
CONCLUSIONS II
Funded under the European Commission’s FP6 (CIT5-2006-028478)
22
FOR DETAILED REPORTS, ARTICELS AND OTHER PUBLICATIONS
please visit
www.pique.at
or contact