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Social Dialogue - Summary
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Social DialogueTable of Contents
What do you see? Frames of Reference ................................................................................................. 9
Introduction......................................................................................................................................... 9
Frames of Reference ........................................................................................................................... 9
One team, the unitarist view on employment and SD ...................................................................... 10
Two teams, the pluralist view on employment and SD .................................................................... 11
An unfair game, the radical/critical perspective on SD ..................................................................... 12
No team, the egoist/individualist perspective on employment and SD ........................................... 13
Conclusion ......................................................................................................................................... 14
Summary ........................................................................................................................................... 14
Exercises ............................................................................................................................................ 14
Theories about SD and employment relations...................................................................................... 16
Introduction....................................................................................................................................... 16
The three methods of trade unions: the Webbs ............................................................................... 16
The two faces of unionism? Freeman & Medoff............................................................................... 17
Insider-Outsider................................................................................................................................. 18
System Theory ................................................................................................................................... 19
A balancing act: efficiency, equity and voice .................................................................................... 20
Human rights ..................................................................................................................................... 20
Democracy at work ........................................................................................................................... 21
The logic of collective action – rational choice theory ...................................................................... 22
The management prerogative ........................................................................................................... 23
HR view on SD: high performance workplaces ................................................................................. 23
Classic economic thinking on trade unions ....................................................................................... 25
Neoliberal thinking on trade unions.................................................................................................. 25
Labour process theory ....................................................................................................................... 26
Is labour a commodity? ..................................................................................................................... 27
Summary ........................................................................................................................................... 28
Exercise .............................................................................................................................................. 28
Actors in SD: who’s playing? ................................................................................................................. 29
Introduction....................................................................................................................................... 29
The employer .................................................................................................................................... 29
Managerial styles towards SD ....................................................................................................... 30
1
, Management attitudes and beliefs ............................................................................................... 32
Management whipsawing ............................................................................................................. 33
Employer organizations ..................................................................................................................... 33
The employee .................................................................................................................................... 34
Trade unions ...................................................................................................................................... 35
Typology of unions ........................................................................................................................ 35
Power Resources approach (PRA) ................................................................................................. 36
1. Associational power .......................................................................................................... 36
2. Structural power................................................................................................................ 37
3. Institutional power ............................................................................................................ 37
4. Societal power ................................................................................................................... 37
The servicing vs. the organizing model ......................................................................................... 38
State .................................................................................................................................................. 39
The state as an employer .............................................................................................................. 39
The state as setting the rules of the game .................................................................................... 40
The state putting regulating the individual employment relations .............................................. 41
The state shaping the labour market through economic policy ................................................... 41
The state organizing social security............................................................................................... 41
The state promoting a certain discourse....................................................................................... 41
Conclusion ......................................................................................................................................... 42
Summary ........................................................................................................................................... 42
Exercises ............................................................................................................................................ 43
SD in Belgium......................................................................................................................................... 43
Introduction....................................................................................................................................... 43
History ............................................................................................................................................... 43
Before WW1 .................................................................................................................................. 43
Interwar period ............................................................................................................................. 44
WW2 .............................................................................................................................................. 45
Post war dialogue: social & productivity pact ............................................................................... 46
60s: heydays of SD ......................................................................................................................... 47
After the rise, continuing crisis...................................................................................................... 48
Current trends ............................................................................................................................... 49
Actors ................................................................................................................................................ 51
Trade unions .................................................................................................................................. 51
Selected characteristics ............................................................................................................. 51
Strong unions......................................................................................................................... 51
2
, Controlled pluralism & union monopoly ............................................................................... 52
Ghent system......................................................................................................................... 53
ACV-CSC (Algemeen Christelijk Vakverbond – Confédération des syndicats chétiens) ............ 54
ABVV-FGTB (Algemeen Belgisch Vakverbond – Fédération Générale du Travail de Belgique) 55
ACLVB-CGSLB (Algemene Centrale der Liverale Vakbonden van België – Centrale Générale des
Syndicats Libéraux de Belgique) ................................................................................................ 55
Other unions .............................................................................................................................. 56
Legal personality question ........................................................................................................ 57
Why do people join union? ....................................................................................................... 58
Blue vs. white collar employees ................................................................................................ 59
Young workers ........................................................................................................................... 59
Employers ...................................................................................................................................... 60
Short history .............................................................................................................................. 60
Main characteristics .................................................................................................................. 60
National organisations............................................................................................................... 60
VBO – FEB (Verbond van Belgische Ondernemingen)........................................................... 60
UNIZO (Unie van Zelfstandige Ondernemers) ....................................................................... 61
UCM (Union des Classes moyennes) ..................................................................................... 61
Boerenbond ........................................................................................................................... 61
FWA-Fédération Wallonne de l’Agriculture .......................................................................... 61
UNISOC (Unie van Scoail Profit Ondernemingen) ................................................................. 61
VOKA...................................................................................................................................... 61
Sectoral employer organizations ............................................................................................... 62
AGORIA .................................................................................................................................. 62
Essencia ................................................................................................................................. 62
FEBELFIN ................................................................................................................................ 62
FEDUSTRIA ............................................................................................................................. 62
Comeos .................................................................................................................................. 62
FEVIA...................................................................................................................................... 62
Confederatie bouw ................................................................................................................ 62
Federgon................................................................................................................................ 62
Assuralia ................................................................................................................................ 62
The state ........................................................................................................................................ 63
State as an employer ................................................................................................................. 63
Regulating and facilitating SD and economy ............................................................................. 63
Enforcing rules and intervening in conflicts .............................................................................. 64
3
, through general economic and political policies ...................................................................... 64
Institutions......................................................................................................................................... 64
National level................................................................................................................................. 64
Group of 10................................................................................................................................ 64
Central Economic Council (CRB-CCE)......................................................................................... 65
National labour council (CNT/NAR) ........................................................................................... 65
High council on Health and safety at work................................................................................ 67
Conclusion ................................................................................................................................. 67
Sectoral level ................................................................................................................................. 68
Special advisory commissions ................................................................................................... 68
Joint committees – paritaire comités ........................................................................................ 68
Competences ......................................................................................................................... 69
Jurisdiction............................................................................................................................. 70
Sectoral training funds .......................................................................................................... 70
Sectoral social security funds ................................................................................................ 71
Importance of joint committees ........................................................................................... 71
Regional level ................................................................................................................................ 72
Company level ............................................................................................................................... 72
Health and safety committee (H&SC) ....................................................................................... 73
Composition .......................................................................................................................... 73
Meetings ................................................................................................................................ 74
Competences ......................................................................................................................... 75
Informing the staff................................................................................................................. 75
Relevance of H&SC ................................................................................................................ 75
Works council ............................................................................................................................ 76
Composition .......................................................................................................................... 77
Establishment ........................................................................................................................ 77
Meetings ................................................................................................................................ 77
Competences ......................................................................................................................... 78
Economic and financial information...................................................................................... 79
Union delegation ....................................................................................................................... 79
Establishment ........................................................................................................................ 80
Composition .......................................................................................................................... 80
Competences ......................................................................................................................... 80
Facilities for employee representatives .................................................................................... 81
European works council (EWC) ................................................................................................. 82
4
, Conclusion ................................................................................................................................. 82
Beyond institutions: company level SD ............................................................................................. 83
Employee representatives ............................................................................................................. 83
Profile, role and position of workers representative ................................................................ 83
Daily life of employee representatives in a company ............................................................... 84
Protection against dismissal ...................................................................................................... 85
Union on company level ................................................................................................................ 86
Union officer .............................................................................................................................. 86
Union bonus (vakbondspremie – prime syndical) ..................................................................... 87
Other company level actors/institutions....................................................................................... 87
Company auditor ....................................................................................................................... 87
Work rules (arbeidsreglement – règlement de travail)............................................................. 88
Other company level actors ...................................................................................................... 88
Social elections .............................................................................................................................. 89
Who can be a candidate? .......................................................................................................... 89
Who can vote?........................................................................................................................... 89
Different categories of workers ................................................................................................ 89
Election procedure .................................................................................................................... 90
Studies on social elections......................................................................................................... 90
Public sector SD ................................................................................................................................. 91
Collective (wage) bargaining & collective labour agreements .......................................................... 92
Collective agreement..................................................................................................................... 92
Levels of collective bargaining....................................................................................................... 93
National level............................................................................................................................. 93
Sectoral level ............................................................................................................................. 93
Company level ........................................................................................................................... 94
Different types of collective agreements – generally applicable or not ....................................... 95
Hierarchy of norms ........................................................................................................................ 95
Some rules around company level collective labour agreements ................................................ 96
Wage bargaining in Belgium .......................................................................................................... 97
Conclusion ..................................................................................................................................... 98
Summary ........................................................................................................................................... 99
SD in Europe ........................................................................................................................................ 100
Introduction..................................................................................................................................... 100
SD in Europa .................................................................................................................................... 100
Basic characteristics .................................................................................................................... 100
5
, Centre-West: Germany................................................................................................................ 103
German unions ........................................................................................................................ 103
Workplace representation ...................................................................................................... 103
Collective bargaining ............................................................................................................... 104
Co-determination (board-level employee representation) .................................................... 105
Southern system: France ............................................................................................................. 105
French unions .......................................................................................................................... 105
Collective bargaining ............................................................................................................... 106
Workplace representation ...................................................................................................... 106
Co-determination (board-level employee representation) .................................................... 106
Western system: UK .................................................................................................................... 107
UK unions................................................................................................................................. 107
Collective bargaining ............................................................................................................... 108
Workplace representation ...................................................................................................... 108
Co-determination (board-level employee representation...................................................... 109
Centre-East system: Poland......................................................................................................... 109
Polish unions............................................................................................................................ 110
Collective bargaining and SD ................................................................................................... 110
Workplace representation ...................................................................................................... 110
Co-determination (board-level employee representation) .................................................... 111
Nordic system: Sweden ............................................................................................................... 111
Swedish unions ........................................................................................................................ 111
Collective bargaining ............................................................................................................... 112
Workplace representation ...................................................................................................... 112
Co-determination (board-level representation) ..................................................................... 112
Conclusion ................................................................................................................................... 113
SD in multinationals......................................................................................................................... 114
European works councils (EWC) .................................................................................................. 114
What rules apply to European Works Councils ....................................................................... 115
How does the negotiation develop? ....................................................................................... 116
Subsidiary requirements ......................................................................................................... 116
A closer look at two agreements............................................................................................. 117
The debate about EWCs .......................................................................................................... 118
Transnational company agreements (TCA) ................................................................................. 119
Summary ......................................................................................................................................... 121
Exercises .......................................................................................................................................... 121
6
,Topics in SD: conflict and restructuring............................................................................................... 122
Industrial conflict, dispute resolution and strikes ........................................................................... 122
Definition and typology ............................................................................................................... 123
Right to strike .............................................................................................................................. 125
General strikes............................................................................................................................. 126
Sectoral & company strikes ......................................................................................................... 126
Dispute resolution mechanisms in Belgium ................................................................................ 127
Employer actions: lock-out .......................................................................................................... 128
Strike effectiveness ..................................................................................................................... 130
Mobilization theory ......................................................................................................................... 130
SD in restructuring & collective redundancies ................................................................................ 132
Exercise ............................................................................................................................................ 134
Gastles De Wulf: a company in restructuring: different scenarios for multiple dismissals, collective
dismissals and company closure ..................................................................................................... 135
Different types of multiple dismissals ......................................................................................... 135
Thresholds ................................................................................................................................... 135
Different thresholds of collective dismissal ............................................................................ 135
Examples of application of different thresholds ..................................................................... 136
Employer’s obligations ............................................................................................................ 136
Steps of Law Renault: .............................................................................................................. 136
Closure: steps .............................................................................................................................. 137
When? ..................................................................................................................................... 137
Employer’s obligations ............................................................................................................ 137
Prior information procedure ................................................................................................... 137
Specific information towards closing fund .............................................................................. 137
Closure premium ..................................................................................................................... 137
Social plan.................................................................................................................................... 137
What? ...................................................................................................................................... 137
Alternatives ................................................................................................................................. 138
Waves of multiple dismissals .................................................................................................. 138
Practical approach ....................................................................................................................... 138
Overview.................................................................................................................................. 138
General tips & tricks ................................................................................................................ 138
Preparation of announcement: checklist ................................................................................ 138
Announcement meeting.......................................................................................................... 139
I&C (information & consultation) meetings ............................................................................ 139
7
,Social plan (together with I&C) ............................................................................................... 140
I&C and social plan .................................................................................................................. 141
Conclusion ............................................................................................................................... 141
8
,What do you see? Frames of Reference
Introduction
Are you explaining it from your perspective or from the others’? Is it your right or their right?
Depending on how you look at social dialogue, with which assumptions and beliefs, you’ll see very
different things and act accordingly.
In this section of the course, we’ll look at the different ‘frames of reference’ that exist related to social
dialogue and provide examples. The main aim is for you to know and recognize implicit assumptions
people (and yourself) are making on social dialogue which hopefully will contribute to a better
understanding of each other positions and less conflicts at work.
Frames of Reference
Idea was proposed by Alan Fox (1966): ‘perceives and interprets events by means of a conceptual
structure of generalizations or contexts, postulates about what is essential, assumptions as to what is
valuable, attitudes about what is possible, and ideas about what will work effectively”
- He identified for first time unitarist and pluralist (issues industrial relations)
- Later he identified radical perspective
Budd & Bhave (2008): ‘how one sees the world’
- Added individualist/egoist frame
Heery (2016) added hard vs. soft unitarism & Cradden (2011) identified nine different frames
Frame is built on series of assumptions: how world functions and what is valuable
Guides: number of ideas of how one can and should react to events and issues
o Colours perception of reality + shapes behaviour and reactions to that reality
We’ll use the Budd and Bhave (2008) frame (in real life own personal mix of all 4)
Most important difference between 4: perception regarding degree of divergence of interests between
employers/owner/management and the employees/workers.
- Unitarist: actors’ belief both parties
are the same, unitary interest
- Pluralist: different groups can have
different interest, sometimes aligned,
sometimes opposed
- Radical: interests are fundamentally
opposed and conflicting
- Egoist/individual: possible
divergence is managed through market
relations (in LT they are aligned)
Best is all together
9
, Difference between frame of reference and ideology:
- Frame: relates to how one sees world (based on assumptions: defines interpretation of issues
and guides your future behaviour)
- Ideology: how one wants others to see the world (based on beliefs and values)
One team, the unitarist view on employment and SD
Idea: all share largely same (hence unitary) interests
- Common goal = win-win for everybody
- Everybody has different role and position, to make more effective in reaching goal
o Employee interest:
quite ambitious (fulfilment, well-being and actualization)
work should develop competences of employee + uses talent and ability
o Employer interest:
Profit maximization
Best way is through ability use employees, creative and innovative and high-
quality services
Management through consent
- Consequences:
o Conflict is seen abnormal: can and should be avoided
o Conflict? Attributed to individual misunderstandings and problems in communication
Increase collaboration and understanding, try to increase fulfilment and
commitment
o No need for representation as there is no need for conflict: trade union = unnecessary
Good management: dissatisfaction low
o Preferred type of voice: direct, individual communication
Through direct consultations or open group formats (circles)
- Power differences: unimportant
o Existing power is necessary for efficient work problems are due to interpersonal
relations or deficient leadership qualities
Solved by management training, better HRM and organizational design
- Role of the state: limited to protection property and freedom enterprise
- Mostly found in discourse of HR departments and HR literature
o Focus: creating environment that stresses alignment by creating job where they feel
satisfied and fulfilled, creating efficient, fair and equitable recruitment processes and
communication
- Scholars: adhered to by industrial psychology, HR or organizational behavior scholars
o Key words unitarist view: employee commitment, employee engagement and
organizational trust
10
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