EZA MAGAZINE
EZA PODCAST

Industrial relations and co-determination

From December 16 to 19, 2021, a seminar on "Industrial relations and co-determination" was held in Prague, organised by the CFTC (French Confederation of Christian Workers), with the support of EZA and the European Union.

30 representatives of workers' organisations participated in the seminar. The following countries were represented: Germany, Austria, Bulgaria, France, Lithuania, Portugal, Romania, and Slovakia.

The seminar was led by Joseph THOUVENEL, CFTC Confederal Secretary.

The following topics were discussed:

          -“Social relations in Austria” by Norbert SCHNEDL, Vice-President of the Austrian Confederation of Trade Unions – OGB.

          -"Social relations and hierarchy within a multinational group" by Christian Sanchez, Social Advisor within the LVMH group (Louis Vuitton Moët Hennessy).

           "Joint management, the conditions for efficiency" by Pierre-Marie Hebert, Vice-president of the regional joint body Pôle Emploi Normandie.

          -“The German practice of co-management” by Raynald THANNISCH, Head of Policy Unit DGB Germany.

          -"How the implementation and monitoring of social protection can promote joint action" by Michel Samsonoff, Vice-President of ADIMECO (Association of mutual insurance companies).

          -“Social relations in Bulgaria”, by Veselin Mitov, International Secretary PODKREPA, Bulgaria.

          -“Hierarchical relations in companies in Portugal, by Maria Reina Martin, Vice-president of FIDESTRA – Portugal.

          -“Social relations in Romania” by Silviu ISPAS, Director of IFES (Institute for Economic and Social Training).

          -“In France, what joint system? Fr. Bernard Vivier, Director of the IST (Higher Institute of Labour).

          -“Relations (employers, unions, associations) within Economic and Social Councils, by René Bertail President of the European and International Affairs Committee CESER (Economic and Social Council of île-de-France).

Seminar results

While Germany is the cradle of co-determination with its institutions such as the works council (small companies) and the supervisory board (companies with more than 500 employees having a great influence on the economic decisions of companies) and Austria has a special status with regard to labour relations and social partnership, the other countries, participants in the seminar note a weakening of social dialogue in their countries and in particular, in France, where there appears a will of the government to interfere or even control the institutions managed by the social partners.

In Romania, Law 62/2011 on social dialogue (modified in January 2016), the spirit of which should be to make social dialogue more flexible, real and modern, established strict conditions for the constitution of trade unions, reduced the protection of employee representatives and abolished the possibility of concluding a collective agreement at national level. Furthermore, this law has reduced the employer's obligation to inform, insofar as the latter is no longer obliged to invite union representatives to the Board of Directors, but only to inform them in writing of the decisions of the said Council concerning the professional, economic and social interests of employees.

Yet history and many studies have demonstrated the political, economic and social effectiveness of co-management and joint action.

Co-management is the best way to ensure the future of companies, since it allows citizen equity and remains the best way to face economic crises.

Joint action, meanwhile, remains the guarantor of the protection of good social relations, which are essential to the functioning and sustainability of social systems.

Associations, through joint work and taking shared responsibility, shareholder representatives, company management and employees appear to be a guarantee of efficiency and good balance in social relations.

Decisions

Fight against the weakening of trade unions, by encouraging public policies to preserve joint action, its existence and its place in our societies, whether, as in France, joint management, administration, or negotiation, or by developing similar systems in Europe. Let the social partners, natural stakeholders, regulate a social system for which they are best placed to make the appropriate decisions in this area.

It is necessary to restore the confidence of workers in their representation institutions and companies through the search for the association between capital and work.

This association should not be limited to the redistribution of profits but reasonably involve workers and their representatives in decisions affecting the operation and future of companies.

Trust must be established or re-established between economic actors. The legal means must be given to the social partners to unite their ambitions, namely the success of the company and the sustainability of social protection.

It may be appropriate to mix incentive and binding legislation, as in Germany, by leaving on the one hand the possibility for workers to organise themselves freely in companies with more than 5 employees and on the other hand by imposing co-determination parity between employers, workers, and trade unions in companies with more than 2000 employees.

It is a question of acting in the direction of a real: "economic and social democracy" that all the political actors claim in our countries.

Consequences

The possible redefinition of the place of social actors within our countries and the revaluation of human capital in the decision-making process.

A political efficiency in which the States and the European rules remain guarantors of the proper functioning of the institutions but do not interfere in their management, leaving the social body free to organise itself.

Economic efficiency (fight against social dumping) and collective benefits for all workers, and social efficiency (actors whose interests are a priori divergent and will join forces for the same cause by seeking lasting compromises).

The search for the motivation of the workers by their empowerment and their active participation in the realisation and the success of the company.

The creation of wealth benefiting the whole of society in a logic of legitimate and fair redistribution.

Refocus on the humanisation of the company and the sine qua non of its success, based on the existence of privileged social relations.

Fully restore to employers' organisations and trade unions their natural prerogatives of subsidiarity so that our societies continue to build themselves, in a strong and dynamic spirit.

Restore meaning to the value of work, and preserve that of capital by replacing solidarity, sharing, participation in taking responsibility in the company.

Finally, working together, joining forces for fairer societies in which everyone is a real actor in their social life, will allow the harmonious development of a balanced economic and social Europe.