Managing Change: Trade Union Movement in Central and Eastern Europe

1. Managing Change: Trade Union Movement in Central and Eastern Europe Evelin Toth Mucciacciaro, ACTRAV Europe, ITC-ILO, 12 February 2007, Turin Literature: Trade Union Strategies in Central and Eastern Europe, Dimitrova, Vilrokx, ILO, 2005

2. General Info about Europe • World’s second smallest continent in terms of area (2% of the Earth’s surface) • Population: 727 mil. (world’s third largest continent) • Includes 48 countries (27 are members of the European Union – the largest political and economic entity by area and population/492.8 million inhabitants) • the world’s largest economy with an estimated nominal GDP of 13.4 trillion USD • Global Competitiveness Report (2006-2007) 7 out of 10 most competitive economies in the world are from Europe (CH,FI, SE, DK, DE, NL, UK)

3. Communist nations in Eastern Europe Soviet Union’s expansion in EE Warsaw Pact Socialist economies Capitalist countries in Western Europe Partnership with United States European Union (ESCS, 1951; EEC, 1957; 1992 EU) NATO Free trade, open market Historical backgroundDivision in two major political and economic blocksConflict, tension and competition between East and West

4. Beginning of Transition to Democratic Society and Market Economy • The fall of the Berlin Wall – Turning point in CEE history towards democracy (1989) • Transition from one-party rule of the communist party to democratic pluralism (first freeelections) • Freedom of speech • Freedom to profess religious belief • Independent judiciary • Transition to market economy • Transition from TU controlled by the state to independent trade union movement • 1991 – dissolution of the Soviet Union

5. Solidarnosc • 1980 - birth of ,,Solidarnosc’’, the independent self-governing labour union ,,Solidarity’’ – leading actor of change • Strike of shipyard dockers on the Baltic Sea – political dimension (against poverty, for pay rises, for freedom of the press and speech, right to strike, right to organise free and independent trade unions) • Solidarity’s influence throughout the countries of the Central and Eastern Europe • www.solidarnosc.org.pl

6. Changing Role of Trade Unions • Trade union activity shaped by economic, political and social context • DILEMMA: Oppose or support modernisation of economy knowing that there will be negative social consequences • Opposition = exclusion from participation in strategic decision-making in national reform, risk of long-term marginalisation • Support = participation and responsibility for success/failure • Immediate interests of members sometimes had to be sacrificed in the name of a long-term goal

8. Central and Eastern Europe Before Transition • Centrally-planned economy • Enterprises protected against the impacts of the world markets • Centrally organised production and distribution • Administrative decisions determine resource allocation and prices • Strongly regulated labour markets • High employment and income security and job stability for the workers • Full employment • High union density due to compulsory membership

9. 1990s in CEE – Decent Work Deficit • Privatization of state-owned enterprises • Opening up of national economies to global competition • Focus on competitiveness • Domestic enterprises must adjust their workforce in numbers, structure and quality to market demand • Significant job losses & persistently high unemployment rate • Low salaries • Labour market flexibility • Changes in labour legislation • Poor-quality jobs in informal economy • Poor law enforcement • Job insecurity • Violations of trade union rights

10. Government ESC Trade Unions Employers’ Associations TripartismSocial partnership – mechanism for achieving the goal of economic growth and social progress

11. Economic and Social Reforms • Focus on competitiveness of economy and creation of business-friendly environment at the expense of labour and social rights • Social reforms: health, pension … • Major impact of neo-liberal approach of World Bank and International Monetary Fund • Influence of European Union • European social model – vision of society that combines sustainable economic growth with high-level living and working conditions

12. International co-operation • International recognition of CEE unions by ICFTU and WCL • Merger of ICFTU and WCL into ITUC • Pan-European Region Council – to be established in March 2007 – structure for ITUC affiliates in Europe • From 1995: integration of CEE unions to ETUC/European Trade Union Confederation; it currently comprises 81 member organisations, from a total of 36 countries in Europe, and 12 industry federations. ETUC represents the interests of 60 million organized workers at European level www.etuc.org • ILO played a major role in promoting social partnership in CEE (research, expertise, policy advise)

13. Trade Union Density

14. LOSS OF MEMBERSHIP • Pluralism and fragmentation of TU movements – weakened TU position, TUs fighting each other • InCEE, 75% of workers are not unionised and are left outside the scope of present social dialogue • Objective reasons: bankruptcy and liquidation of enterprises, reduction of number of workers, a spilling over of labour into the private and shadow sectors of the economy • Restructuring of enterprises, their fragmentation into small enterprises • Anti-trade union activity of employers • Formation through mass media of a negative opinion of trade unions

15. ORGANISING IN CEE • LACK OF EXPERIENCE IN THIS FIELD • LACK OF PROFESSIONAL ORGANISERS • EXISTING TRADE UNION STRUCTURES ARE NOT FIT FOR ORGANISING • LITTLE OR NO BUDGET FOR ORGANISING • NO STRATEGIC PLANNING OF RECRUITMENT CAMPAIGNS • DIFFICULTIES IN ORGANISING IN NEW SECTORS OF THE ECONOMY, ESPECIALLY IN INFORMAL ECONOMY • SMEs, MNEs …

16. CONSOLIDATION OF TRADE UNION MOVEMENTS • Vision of trade union in the future (2010, 2020…) • Reflexive capacity of trade unions – internal debates, self-analysis and analysis of environment • Need for constant and rapid adjustment to change • Need for capacity-building and expertise to address the content of economic and social policies and offer alternative solutions • Not rely on ,,borrowed experience’’ – find one’s own way adapted to the national context • Build capacity at all levels for continuous negotiations on salaries and working conditions • Need for more ambitious collective bargaining on a wider spectrum of topics • Potential of ,,social pacts’’

17. 2005 Eurodemonstrations inBrussels, the capital of Europe

18. EURODEMONSTRATIONS