Unions negotiating pay cuts

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#1
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akai
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Joined: 29-09-06
Jan 6 2009 08:42
Unions negotiating pay cuts

In Poland a lot of unions are negotiating pay cuts and other austerity measures as a reaction to crisis hysteria. In the US I heard of some similar moves.

However, sometimes when financial information is analised in any detail, it turns out that these cuts may not even be inspired by a real decrease in turnover. It seems the bosses are reaping the benefits of mass fear in order to downsize and increase the workload in places relatively untouched by the crisis.

Regardless of whether there is a slowdown or not, unions negotiating such pay cuts is sleazy business. Does anybody know of any unions which have refused to go this route and have made a public statement on it?

#2
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kc
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Joined: 27-11-06
Jan 6 2009 11:26

In Germany the services union ver.di (Vereinigte Dienstleistungsgewerkschaft) and the "union" of state employees (DBB Beamtenbund) claim in the annual wage round for 8% more money or minimal 200 Euro/month for the 2 million state employees.
The old contract ended at the 31rd of December and the bargaining for the new contract will start at the 10./11. January.
In Germany the claim of 8% often means that the results will be 3-4%...
The public sector had real wage losses since years, so ver.di is under pressure.

#3
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akai
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Jan 7 2009 05:51

So are employers using the word "crisis" to claim they can't afford things in Germany or to lay off people? Just out of curiosity: I really don't know.

#4
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jack white
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Jan 7 2009 10:21

Unions and workers here have voted for pay cuts of up to 15% in some cases to prevent closures or job cuts.

I'm working in the public sector and we had a national agreement with the government for a 3.5% pay rise. At the time it was agreed it would have amounted to a pay cut in real terms because of inflation. But getting it at all might be dubious now.

laureakai wrote:
So are employers using the word "crisis" to claim they can't afford things ... or to lay off people? Just out of curiosity: I really don't know.

You'd have to at least suspect this is happening or will happen. So far I haven't heard of much here - though most people I know losing their jobs or in danger of losing their jobs are working in different trades and since the whole construction sector is fucked here anyway...

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kc
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Jan 8 2009 13:09
laureakai wrote:
So are employers using the word "crisis" to claim they can't afford things in Germany or to lay off people? Just out of curiosity: I really don't know.

Yes they do so, it's easier to say the "crisis" is the background to fire workers or try to cut wages than the own management results (automobile industry) wink

But one addition for the situation in Germany. Even if there are officially no negotiatings for pay cuts in the moment, the socialdemocratic unions agreed in a lot of contracts that there are "options" for workingplace agreements (betriebliche Bündnisse) between employers and the work councils (!). This opens the door for longer (unpaid) working time and a lot of other trash and via this backdoor it's possible to cut the wages etc without public agreements since a long time.

(Reply to #3)
#6
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akai
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Jan 8 2009 14:58

The work councils can agree without a workplace vote, right?

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kc
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Jan 9 2009 16:02
laureakai wrote:
The work councils can agree without a workplace vote, right?

Yes they can, elected for four years... The parliament of the workingplace wink

(Reply to #6)