National variation in the role, structure and function of the public sector

Differences in industrial relations between the public sector and the private sector, such as higher unionisation rates, greater collective bargaining coverage, and a more fragmented union system, have been well-documented (see e.g. Bach, Bordogna, Della Rocca, and Winchester, 1999; Ferner, 1995; Olsen, 1996; Traxler, 1999; Visser, 2008; 2010).

In the private sector the main industrial relations actors are the representatives of employees (i.e. trade unions), the representatives of employers, and the state. While the first two actors represent the collective interests of their members, the role of the state is to regulate the interaction between them under consideration of state’s interests, i.e. the state defines the

36 rules. However, in the public sector the state plays a double role in the relationship between the employee and employer sides in the sense that in general the state is the authority that defines the rules in regulating the relationship and is also a party in the relationship (Adams, 1992). Basically, the power of the state in its role as an employer is higher compared to a private sector employer, as the state has the option of enforcing its interests as a legal authority. Further, the role of the state as an employer, compared to private sector employers, consists of many stakeholders and a multiplicity of interests (public and private) have to be considered. In addition, state interests are exposed to various pressures from competing political parties, public opinions and various interest groups.

Even though this double role of the state is a general feature of public sector industrial relations, country differences exist as there is significant variation in terms of which bodies represent the state as employer in the relationship (e.g. at federal, regional or departmental level).

Levels of public sector industrial relations

From a comparative perspective, the degree of centralisation of public sector industrial relations activity of actors and institutions shows significant variation across the EU-27 as it is organised differently between the central, regional, local and even departmental level. In addition, the relevance of these levels is also mixed in a multi-level framework – in some countries there are separate industrial relations regulations for different occupational and/or sub-sectoral groups (e.g. public administration, health, education, police, defence, and postal services). Furthermore, in a number of countries differentiations between employees with special status (i.e. civil servants) and private employees in the public sector are made.

All these differences across countries can be explained by the different role of the state for the economy and society in different countries which lead to different institutional arrangements on different levels of public sector industrial relations. For many countries no exclusive level or arena of social partners’ interaction exists. Nevertheless predominant levels of public sector industrial relations, defined by the share of employees that are affected by social partners’ interaction at this level, can be identified. These predominant levels of industrial relations for all EU Member States are shown in Table 1.1 in which a classification of national public sector industrial relations along the degree of centralisation and along a differentiation between different groups of public sector employees is made.

Table 1.1: Employment regulation in the public sector – classification of countries Predominant level of

regulation

All employees Group specific differentiations

Central AT, CZ, FR, MT, PT BG, EL, IE, LU, PL, SI

Mixed BE, CY, DE*, DK FI,HU,IT, ES, RO, SK

Decentralised EE, LV, LT, NL, SE, UK

Notes: Central = regulation of employment relationship predominantly at national level; Decentralised = regulation of employment relationship predominantly at (either or) regional, local, departmental level; Mixed = regulation at central and decentralised level;

All employees = No separation in the regulation of the employment relationship between groups of employees (in Germany there is a distinction between statutory civil servants and other public employees);

Group specific differentiations = different regulations for different groups (between sub-sectors and/or public/private servants; * In Germany a formal separation at regional level exists but the regional level mirrors the central level which implies a de facto predominance of the central level. Data source: see box 1.4.

37 Table 1.1 shows that in 11 countries the governance of the employment relationship in the public sector is predominantly organised on a centralised level in the sense that the scope of industrial relations has a national perimeter and encompassment. Various differences in the industrial relations institutions still exist among these countries, notably whether or not labour relations are fixed for all groups of employees jointly or whether a differentiation is made between different groups of employees (e.g. between sub-sectors and/or public/private servants). Table 1.2 gives an overview of the main characteristics of countries’ public sector regulations. For a full discussion of the different types of employment relationship in the public sector, see chapter 3 of this report.

Table 1.2: Characteristics of the level and differentiation of employment regulation in the EU-27

Country Main characteristics

AT Highly centralised, wages are bargained jointly for three levels: state, federal state and local state level.

BE

Central framework agreement. Negotiations take place in different committees: Committee A negotiates for the entire public sector. Committee B covers federal services and community and regional services. Committee C represents

provincial and local administrations.

BG Centralised social dialogue is carried out by the National Council for tripartite partnership. Negotiations for contractual employees are conducted at local level. CY Central bargaining for all employees in the public sector. Results affect all public

sector employees.

CZ

Wages are regulated centrally by law but trade unions are consulted by government officials. There is some scope for minor issues to be regulated at local level through negotiations.

DE

National level pattern bargaining. Highly centralised, industry-wide bargaining. Bargaining committees consist of representatives from: central, regional (Länder) and local administration.

DK

Collective bargaining and central and de-centralised levels. National framework agreement. Negotiations also at local level, within strong coordination

mechanisms.

EE No collective bargaining at the central level. Bargaining at the local level (where unions are strong enough) with individual local authorities.

EL Social dialogue is centralised. Conditions for employees with no special status are negotiated at the central level.

ES

Framework agreement at the central level. Lower level bodies (regions and municipalities) can agree higher pay increases than agreed at the national level. National level agreements cover non-pay and pay issues.

FI

Collective bargaining at two levels, for the state sector and the municipal sector. Collective agreements for civil servants are concluded at the national level. Specifying agreements concluded between agencies or administrations and trade unions can alter central agreements.

38 FR

Central negotiations cover the whole public sector. Social dialogue at inter- ministerial level (national negotiations) and at intra-ministerial level (within central and local committees). The right of collective bargaining introduced in 1983 has been very weak on wage issues, and the government holds the ultimate power of decision. The situation has only partially changed after the 2010

collective bargaining reforms: the right of collective bargaining has stronger legal recognition, but the agreements are not binding for the government.

HU

Current rules regulating the conclusion of collective agreements stipulate that only public service employees can conclude workplace-level collective agreements.

IE Centralised wage bargaining under tripartite social partnership arrangements. The extent of decentralised dialogue depends on the nature of issue.

IT

National bargaining involves two types of negotiation: framework bargaining and divisional or area bargaining. The divisions are homogeneous sectors of the administration, (such as public schools of all grade; public universities; national health service; ministries; regions and territorial authorities; and compulsory social security) while the areas relate mainly to managers in the various divisions. Salary increases are defined at the national level for all the divisions (including the employees of regions and territorial authorities), and are

integrated, within limits, by collective agreements at decentralized, single employer level.

LV

Collective bargaining is very limited at central administrative level.

Decentralised bargaining where unions are strong enough, negotiations with individual local authorities.

LT Collective bargaining in public administration only at sectoral level for some professions (e.g. public sector teachers).

LU Centralised social dialogue at the government level, local public sector employees are represented in central committees.

MT Central agreements for public sector employees (central and local government).

NL

Central level de facto negotiation. Pension issues are subject to discussions at sectoral level. Collective bargaining predominately takes place at the sectoral level.

PL

Central decision for civil servants. With the exception of civil servants with special status, public sector employees can be covered by single employer agreements or multi-employer agreements, covering several local authorities. PT Two level of negotiations: public administration in general and the sectoral level.

RO

Joint consultation at national level takes place within the Tripartite Economic and Social Council. The council examines the economic situation of the country and makes recommendations to the government. Such committees exist at ministerial and territorial level with a consultation role.

SE

Two bargaining levels: Central government encompasses all government

agencies and public enterprises that are regulated by public law. The second level comprises local government, including municipalities and county councils

responsible for education, health care and elderly care. Central agreements leave room for substantial further negotiations.

39 SI

Central level agreements. General collective agreement for the public sector, collective agreements for individual sectors within the public sector, and a special collective agreement for the public radio and television organisations.

SK

National agreement sets minimum conditions. Collective bargaining with local and regional authorities follows.

Separate agreements for employees working for municipal and local governments.

UK

In the case of the senior civil service, pay is determined centrally by the

government on the recommendation of the Senior Salary Review Body; the pay review bodies system covers about 35% of all public employees, including teachers, nurses and all employees of the National Health Service. Civil

servants’ pay determination and HRM have been delegated to lower levels. The majority of civil service conditions of service, including pay, are the

responsibility of the individual government departments and agencies. Sources: Mormont (2004), Hessel, (2008), Bossaert and Kaeding (2009), Adam (2011), Vaughan- Whitehead (2012)

Restrictions on industrial action in the public sector

Another peculiarity of the public sector is that in many EU Member States public sector employees are often excluded from exercising the right to strike. Table 1.3 provides an overview of different regulations regarding the right to take industrial action in the EU-27. The rationale behind limiting industrial action is that public sector employees are expected to have a special relationship with their employer and/or provide essential services for society. As can be seen in Table 1.3, restrictions among the EU Member States vary in terms of the type of ban on industrial action and the employees groups affected. On the one hand there are countries where some groups of public sector employees (such as career civil servants (‘Beamte’) in Germany) have no formal right to strike, such as Austria, Estonia, Germany and Lithuania (for more details, see Chapter 3 of this report). On the other hand, as in Portugal, the right to strike is recognised for all workers, including public employees. However, in most other countries certain sectors and employee groups face some restrictions. Usually the right to take industrial action is often applied in conjunction with the principle of the uninterrupted operation of the public service and with the protection of the health and safety of persons and the protection of property. For example, in Italy, no particular restrictions on the right to strike for public servants exist but services at minimum level must be guaranteed. In Romania, certain services such as health services, social assistance and public transport must be maintained during the strike at a defined level of normal activity. Others restrictions on the right to strike include a high vote threshold in strike ballots (e.g. 50% in Romania). In the UK collective industrial action is limited to disputes between workers and their employer. In some countries civil servants and municipal officials cannot call strikes in pursuance of objectives that are not covered by collective agreements (Hessel, 2008; Warneck and Clauwaert, 2009). Apart from these differences, one main trend can be identified: in most EU Member States members of armed forces and the police are faced with the strictest limitations. There are only a few exceptions, among them Belgium, where police officers are entitled to strike, and the Netherlands, where both military personnel and police officers have the right to strike (see Warneck and Clauwaert 2009). For a fuller discussion of restrictions on industrial action in the public sector, see chapter 3 of this report.

40 Table 1.3: Constraints on collective industrial action in the public sector

Country Limitations on the right to take action

AT There is no specific legislation concerning the right to strike for public employees. In practice strike action is considered to be part of the

constitutionally guaranteed right to association and assembly. But a restriction in practice derives from their duty of loyalty to the employer.

BE The right to strike is not explicitly recognised by law. Apart from in the case of armed forces, there are certain restrictions on the right to strike in the case of civil servants in general, including police officers.

BG Right to strike is laid down in law. Military personnel do not have the right to strike. Public officials may only take symbolic strike action.

CY Existence of right to strike is stated in the constitution, but judges and

members of armed forces the police and fire brigades do not have the right to strike.

CZ The right to strike exists for civil servants with exception of: judges,

prosecutors, armed forces, security corps, employees in nuclear power stations and oil and gas pipelines, air traffic controllers and fire fighters. Public sector workers with restricted rights to strike are: health care, social care,

telecommunication operators.

DK Statutory civil servants do not have the right to strike. Strike bans exist for groups of civil servants: members of army, navy, police, the judiciary and high-ranking civil servants, and also for employees in railway and postal services.

EE Estonian law denies the right to strike to almost all civil servants.

EL Restrictions on strike action relate to essential services: members of police, the judiciary, and security corps.

ES The right to strike does not apply to members of the armed forces, civil guards, judges, magistrates and district attorneys.

FI Civil servants and municipal officials cannot call strikes in pursuance of objectives which are not covered by collective agreements.

FR Restrictions for some specific civil servants: Strike bans exist for state

security, police, and other police bodies. The right to strike in public service is applied in conjunction with the principle of the uninterrupted operation of the public service and with the protection of the health and safety of persons and the protection of property.

DE The right to strike is limited to issues which can be settled by collective agreement. Blue and white collar workers have the right to strike, but civil servants do not, based on their “loyalty and service status”.

HU According to the labour code, the right to strike is curtailed by requiring prior agreement between employer and employees on “adequate services”. Strike action is forbidden for employees in the judiciary, armed forces, armed corps, organs of law enforcement and the national civil service.

41 armed forces.

IT There are no particular restrictions on the right to strike for public servants but services at minimum level must be guaranteed in ‘essential’ public services. A ban on strike action exists for military personnel and state police.

LV A ban on strike action exists for: judges, prosecutors, police, fire-fighters with public service status, border guards, state security, prison warders, and armed forces.

LT Strikes are forbidden in public electricity, district heating and gas supply enterprises, as well as in the case of heads of department and senior civil servants, employees in internal affairs, national defence and state security organisations.

LU Prohibited from striking are: diplomats, members of the judiciary, senior civil servants and managers, armed forces, police, medical and security personnel. MT Restrictions to strike action are in place for: doctors, surgeons, armed forces,

police, fire-fighters, prison officers, and air traffic controllers.

NL The vast majority of the contracting parties grant the right to strike to civil servants. Military personnel and police officers also have the right to strike. A Dutch judge may determine whether recourse to a strike is premature.

PL Civil servants may not participate in strikes. The right to strike is restricted when a work stoppage entails a danger to human life, public health and to state security. Members of the armed forces, the police, border guards and prison services are, as area all categories of civil servants, denied the right to strike. PT The right to strike is recognised for all workers including public employees.

Exceptions are: Members of armed forces and police are prohibited from striking.

RO Public servants in the ministry of defence and interior do not have the right to strike. Further, the vote threshold in strike ballots is very high - 50%. Certain services such as health services, social assistance and public transport must be maintained during the strike at the level of at least 1/3 of normal activity. SE Virtually unlimited right to strike, but in the private and public sector the

parties to a collective agreement may not initiate labour disputes on the issues covered by collective agreements during the period of validity (statutory peace obligation). The only restriction is that industrial action must not be directed at influencing Sweden’s’ political situation. Restrictions exist for public

employees engaged in work involving decision making, workers involved in the exercise of public authority (for example, the courts).

SI Strikes are not permitted when they are not related to the negotiation or amendment of a collective agreement. Only national or local branches of unions are allowed to call strikes. The following groups are prohibited from taking strike action: judges, prosecutors, armed forces, fire-fighters and air traffic controllers.

SK Strikes must be linked to collective agreements. Strikes are prohibited for: judges, prosecutors, armed forces and armed corps, fire-fighters, air-traffic controllers. The right to collective action is also restricted in social services, health care, telecommunications, gas and oil production and the nuclear sector.

42 UK Collective action is limited to disputes between workers and their employer.

Since 1981 a number of laws have restricted the right to strike.

In document Industrial Relations in Europe 2012 (Page 36-48)