Berlin September 27th 2013

1. Decentralization and derogationsfromcollectiveagreements: how ver.di isfacing the challanges Gabriele Sterkel Berlin September 27th 2013 Gabriele Sterkel

2. Preface: • Derogationsfromcollectiveagreementsarewithroundabout 30 cases 2012 not a veryimportantway of decentralization in ver.di. • The peak time was between 2003 and 2007 – butnevermorethan 100 new cases in oneyear. • We will come back to this... • Otherforms of decentralization and fragmentationaremuchmoreimportant Gabriele Sterkel

3. outline • The challenges ... • decline of real wages, growth of low wage sector, splittedlabourcost (cheepservices), distribution, growinggaps ... • crisis of cbsystem, decline of coverage, low legal support • privatization, outsourcing, growth in precarious and temp.a.work • derogations? ... and how ver.di isfacingthem: • Minimum wage policy • Campaign for a statutoryminimum wage, branchlevelmwafter the postedworkerslaw, mw in public procurement • Stepstowardsmore and better agreements • towards a continued positive development of members (best results in collectivebargainingactions) • Basic rules/guidelines (Grundsätze) in cbcoordination on hardshipclauses and a minimumcb wage

4. Entwicklung vor der Krise… Development of real wages ... Before the crisis

5. Entwicklung nach der Krise… ... After the crisis

6. Low wage shares in Europe Gabriele Sterkel

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9. Wage drift Gabriele Sterkel

10. No statutoryminimumwage in Germany WSI Oktober 2013

11. Lowsupport of germancb by extension(Verbreitung der Allgemeinverbindlicherklärung) Dr. Thorsten Schulten

12. Gabriele Sterkel

13. Privatisation in Germany Gabriele Sterkel

14. The German jobmiracle Gabriele Sterkel

15. Liberalization, privatization, outsourcing, decentralization of enterprisestructures ... • ... Haveentirelychanged the preconditions of collective Bargaining • New economicstructures, newsectors • New structures in collectiveagreements: new regional and thousands of enterprise- and plant-levelagreements • Wideareaswithout ca and wideareaswith (very) low ca • Growingimportance of collectiveaction and strikes • New actingsubjects: collectiveactionbecamemorefemale (firstexperiences) Gabriele Sterkel

16. outline • The challenges ... • decline of real wages, growth of low wage sector, splittedlabourcost (cheepservices), distribution, growinggaps ... • crisis of cbsystem, decline of coverage, low legal support • privatization, outsourcing, growth in precarious and temp.a.work • derogations? ... and how ver.di isfacingthem: • Minimum wage policy • Campaign for a statutoryminimum wage, branchlevelmwafter the postedworkerslaw, mw in public procurement • Stepstowardsmore and better agreements • towards a continued positive development of members (best results in collectivebargainingactions) • Basic rules/guidelines (Grundsätze) in cbcoordination on hardshipclauses and a minimumcb wage

17. Campaign for a statutoryminimum wage Gabriele Sterkel

18. Branchlevelmwafter the postedworkerslaw Gabriele Sterkel

19. Minimum wages in public procurement Gabriele Sterkel

20. outline • The challenges ... • decline of real wages, growth of low wage sector, splittedlabourcost (cheepservices), distribution, growinggaps ... • crisis of cbsystem, decline of coverage, low legal support • privatization, outsourcing, growth in precarious and temp.a.work • derogations? ... and how ver.di isfacingthem: • Minimum wage policy • Campaign for a statutoryminimum wage, branchlevelmwafter the postedworkerslaw, mw in public procurement • Stepstowardsmore and better agreements • towards a continued positive development of members (best results in collectivebargainingactions) • Basic rules/guidelines (Grundsätze) in cbcoordination on hardshipclauses and a minimumcb wage

21. Aimingcontinuousgrowth of membership • Organizationalchangesince 2007: raising the number of membersis of highestimportance ... • Cbapproach: „Bedingungsgebundene Tarifarbeit „(Health sector) verysuccessfull in both: moremembers and better agreements • Organizingapproach in otherbranches: security, aviation, retail trade, (public private) transport • Not only organizationbut also participation and activation Gabriele Sterkel

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23. Collectivebargainingcoordination in ver.di: with basic rules/guidelines • background • 13 sectordepartments/ 60branchorganisations • nearlycomletecbautonomy of the cbcommittees • roundabout 2000 collectiveagreementseveryyear • institutions of coordination • cbdepartment and „Clearingstelle“ • cb „principles“ (guidelines) + „clearing procedure“ • (no guidelineabout pay raise) • openingclausses • working time • Equaltreatment/pay • minimum wage guideline: No ca wage below 8,50 € • minimum wage monitoring Gabriele Sterkel

24. Clearingfälle 2002-2013(hardship ca 50-60%)

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28. Basic rule: no collectivelyagreed wage per hourbelow 8,50 € • Bindingminimum wage for collectiveagreements • Rule, procedure and practice ... • The result: verysuccessfull • Minimum wage monitoring • Controll of all agreedwagessince 2011 • Newlycreateddatabase Gabriele Sterkel

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31. Balkendiagramm: Verteilung aller Entgeltgruppen Gabriele Sterkel

32. Development of wage-groups in ver.di-agreements 2011 - 2012 Gabriele Sterkel

33. Perspectives? the questionis: how to restabilise + revitalise the German collectivebargainingsystemwith the aim of better pay raise + betterworkingconditions. firststeps: • Politically • different economicpolicy, statutoryminimum wage • Legally • Reform of the extensionlaw (for moregenerallybindingagreements) • Socially • To make trade unionsmorerecognisedmoreattractive for new members ... Organizing ... moresocial and cb power ... • Morerecognition in society for the peopleworking in the servicesector