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Organising Agency Workers: recent approaches in Germany

TURI network conference Brussels, 14 October 2008. Organising Agency Workers: recent approaches in Germany. Dr. Heiner Dribbusch Institute of Economic and Social Research (WSI) Düsseldorf, Germany. 2002 – Deregulation of agency work. Red- green coalition passed deregulation

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Organising Agency Workers: recent approaches in Germany

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  1. TURI network conferenceBrussels, 14 October 2008 Organising Agency Workers: recent approaches in Germany Dr. Heiner Dribbusch Institute of Economic and Social Research (WSI)Düsseldorf, Germany

  2. 2002 – Deregulation of agency work Red- green coalition passed deregulation No more time limits Removal of all contractual restrictions TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  3. 2002 deregulation: equal treatment ... Same pay and conditions as regular workforce in the establishments doing the hiring but: deviations allowed by way of collective agreements TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  4. In other words: Law is an incentive for temp work agencies (TWA) to conclude collective agreements because this is the way to avoid equal treatment The government passed the buck to the unions TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  5. Bargaining development 2003: DGB sets up joint bargaining commission for agency work 20 February: DGB and two employers‘ associations agree on ‘corner stones’ 24 February: CGB presents package of agreements undercutting the DGB May: DGB concludes collective agreements with provisions above CGB-agreements but below ‘cornerstones’ TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  6. Collective bargaining - features • Collective bargaining without the involvement of agency workers • Weak union density • Undercutting competition by Confederation of Christian Trade Unions (CGB) puts pressure on DGB and strengthens employers TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  7. Development of agency work Quelle: Bundesagentur für Arbeit TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  8. Length of employment (in %) Source: Bundesagentur für Arbeit TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  9. Data on agency workers: • 2.4% of all employees liable to social security contributions • 75% of agency workers are men • Agency work is in particular found in large establishments (> 500 employees) • Predominantly there were collectively agreed pay is high (e.g. car manufacturing; suppliers for auto industry • widespread in metal working (e.g. car manufacturing, production of parts) • in some cases between 30% and 50% of total workforce TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  10. Agency workers and works councils 2006 works council elections (metal working): • Agency workers registered as voters in 31% of establishments • In 22% of establishments they constituted more than 10% of electorate, • in 7% more than 20% of electorate, • and in 3,5% more than 30% of electorate • Problem: agency workers are not included when calculating thresholds (number of seats; release from work) TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  11. Lowest pay scales: euro/hour Agency work and selected industries Source: WSI-Tarifarchiv - as of August 2008

  12. Differences in pay Metal industry • About 25% to 45% less pay for same work • Less days of paid leave • Considerably lower benefits TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  13. Major reasons for differentials Metal industry: • in 75% of establishments hiring agency workers these are paid according to the collective agreement of the temporary work agency • Also: agency workers are frequently found to be in inappropriate pay scales • Short terms of contract exclude promotion TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  14. Challenges: • Agency work replaces permanent employment • Agency workers are employed as strike breakers • Divided workplaces • Agency work leads to two-tier workforce TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  15. Organising agency workers Temporary work agencies are the organisational domain of ver.di A few major TWAs have works councils (mainly admin staff) but this does not result in substantial organising of agency workers The new collective agreements did not work in terms of organising the workers TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  16. The challenge is at the workplace • Equal treatment is primarily not a collective bargaining issue but a challenge for workplace unionism and works councils TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  17. The challenge for IG Metall IG Metall was part of the 2003 bargaining approach The union has become aware that agency workers have to be organised where they work and not where they are employed IG Metall set up a special website for agency workers IG Metall started in 2007 a campaign“Equal pay for equal work” TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  18. The approach of IG Metall I The focus is on companies with large shares of agency work (>10% agency workers) The union seeks the support of the works councils The target is the management of the hiring company Aim: equal or at least better pay and conditions TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  19. The approach of IG Metall II Works councils are motivated to: - INVOLVE agency workers - meet with agency workers - get to know their problems and address them TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  20. The approach of IG Metall III Agency workers are motivated: - to report about their situation (questionnaire) - to address the works council - to organise in the union and to be prepared to take action TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  21. First results Up to now: more than 350 company-level agreements on improved pay and conditions Target of 10,000 new members amongst agency workers will be met in 2008 • Organising results are not directly linked to the quality of the agreement but to the degree of agency workers’ involvement • Success requires works council and agency workers to be prepared for a conflict with management TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

  22. Thanks for listening! Links in German: http://www.dgb.de/themen/tarifpolitik/zeitarbeit/index.htm http://zeitarbeit.verdi.de/ http://www.igmetall-zoom.de/ http://www.gleichearbeit-gleichesgeld.de/ TURI conference, Brussels 14 Oct 2008, Heiner Dribbusch

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