Context The Purpose of Labour Laws. Professor Peter Turnbull Cardiff University, UK

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1 Context The Purpose of Labour Laws Professor Peter Turnbull Cardiff University, UK

2 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

3 Density Rate of Employers Organisations, EU-25

4 Trade Union Density, EU-25

5 Trade Union Membership and Collective Bargaining Coverage (selected EU States) AT BE FR PT NL ES IT DE SE DK FI UK Coverage of collective agreements Union density

6 Aggregate Labour Regulation (40 variables) Source: 20.htm

7 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

8 Does Liberalisation Have a Positive (or Negative) Impact on Employees? % ECA ITF Privatisation 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 = 52 Source: Cardiff University (1998)

9 Positive (and Negative) Effects of Liberalisation % ECA ITF Hours 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 = 52 Source: Cardiff University (1998)

10 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

11 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

12 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)

13 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)

14 The Social Agenda for 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

15 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)

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 transnational airlines Source: ECA (2007: 14)

17 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

18 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

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21 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

22 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

23 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

24 Productivity and Labour Market Regulation in European Countries Strength of Employment Legislation (late 1990s, OECD ranking) Portugal Greece Spain UK Sweden Germ any Finland Austria Italy Denmark France Belgium Netherlands Ireland Productivity (GDP per hour worked, 2002) relative to EU average