Presentation Amman September 2012

Frank Hoffer, ILO Bureau for Workers Activities (ACTRAV)

Decent Work

Collective Bargaining

A market is not a market

A contract is not a contract

Labour is not a commodity

2

Agreeing between unequals

From feudal dependency to market freedom

…. ‘nothing to loose, but their chains’

From proletarians to citizens

the right to assembly

the right to vote

the right to strike

Labour law, welfare state,

collective bargaining

3

The two great transformations

Risk

Employer

State

Worker

4

The labour market

Temporary contracts

Discrimination

Bonded labour

Low pay

Non-unionised

Lack of Social Security

Informal employment

Unprotected Work

Part-time

Hazardous

6

IMPACTS

Individual – Health and

safety

– Constant insecurity

– Lack of career opportunities

– Poverty

Societies – Inequality

– Inefficiency

– Lack of cohesion and participation

– Social exclusion

– Social unrest

Decent Work

Minimum

Wage

Permanent

contract

Adequate

Pay

Social

Protection

Collective

agreement

Equal Pay

for work of

equal value

Full time

employment

Freedom of

Association

8

• Minimum wage C. 131

• Universal social protection (C102, R 202)

• Strengthening and extension of collective

bargaining (C. 87, C. 98)

International Labour Standards to limit the downward pressure on

wages

9

Setting Decent Wage Levels

Collective bargaining

Statutory Minimum Wage for all workers

Individual arangements

10

Providing Social Protection

Mandatory social insurance/social security

benefits of guaranteed levels for

contributors

THE FLOOR: Four essential guarantees

1. Access to essential health care for all

2. Income security

Children

3. Assistance to Unemployed,

underemployed &

poor

4. Income security Elderly & disabled

Level of

pro

tection

Individual/household income

Voluntary insurance

11

• Market ?

• State ?

– directly ?

– through surrogate institutions ?

• People ?

Wage setting above the minimum

12

• Freely chosen employment

• Freedom of expression and

association

• Right to strike

Collective Bargaining

13

• Rational Wage Setting

• Macro- and microeconomic

efficiency

• Greater equity

• Dignity at the workplace ?

• Controlled antagonism?

The benefits of collective bargaining

14

On average wage responsiveness to GDP per capita growth is higher in

countries with higher collective bargaining coverage (1995-2007)

0.87

0.65

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Countries with high coverage of collective

bargaining (above 30%)

Countries with low coverage of collective

bargaining (equal or below 30%)

15

The average incidence of low pay by trade union density in 33

countries, 2009 or latest year

24.6

21.6

12.3

0

5

10

15

20

25

30

Less than 15% 15-50% Higher than 50%

Union membership (%)

un

ion

den

sit

y (

%)