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Transcript of Newcastle michael
Technische Universität München
Transnational Company Agreements: the emergence of international corporate regulation within the Volkswagen Group.
ESRC Seminar Series: Regulation and the Firm. Newcastle University Business School, Friday 5th June 2015.
Prof. Dr. Michael Whittall Technische Universität München/Erlangen- Nürnberg University.In co-operation with:Prof. Dr. Miguel Martinez LucioDr. Stephen MustchinDr. Volker Telljohann Dr. Fernando Rocha Sanchez
Technische Universität München
Presentation plan
Research focus and findings
Volkswagen and industrial relations – powerhouse of German co-
determination
Emergence of Transnational company agreements
Volkswagen Transnational company agreements Industrial relations charter Temporary agency charter
Implementation of Volkswagen Transnational company agreements Spain, UK, Italy, Germany
Lessons for the development of European works council relations
Questions
2
Technische Universität München
Volkswagen and industrial relations – powerhouse of German co-determination
Technische Universität München
Volkswagen and industrial relations – powerhouse of German co-determination
Technische Universität München
Volkswagen and industrial relations – powerhouse of German co-determination
Model of historical and political importance
Important role of the State
“Volkswagen Act” of 1960
Relocation processes: two thirds majority
Company-level collective agreement
Unionisation rate over 90 %
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Technische Universität München
Volkswagen and industrial relations – powerhouse of German co-determination
European works council
1992 signing of agreement on Volkswagen European Group Works Council
Global works council
1999 signing of agreement on VW Group Global Works Council
Michael Whittall, 20. Januar 2010 7
Technische Universität München
Emergence of Transnational company agreementsThe TCAs represent an highly welcomed innovation, as:
a new “social praxis” which goes hand in hand with the emergence of TNCs operating in more than one member state,
a new “bargaining fora” for industrial relations at the global
and local levels, a paradigmatic example of “soft law”, based on voluntary
and autonomous European negotiation, independent from the Commission’s intervention (self-initiated and self-implemented; non-statutory agreements)
Technische Universität München
Emergence of Transnational Company Agreements
TCAs IFAs IFAs
by
Europea
n
TNCs
Signed
by
EWC
WWC
SE WC
EFAs Signed
by
EWC
Signe
d
by
EWC
alone
Signe
d
by
EWC+
ETUF
1988-
2011
226 115 95 13 111 81 54 17
2012-
1013
41 25 23 4 16 11 8 2
1988-
2013
267 140 118 17 127 92 62 19
9
Source: da Costa and Rehfeldt 2011, updated for 2012-2013.
IFAs and EFAs 1988-2013
Technische Universität München
Volkswagen TCAs: Temporary agency charter
Right of information over the level of temporary external personnel
Temporary external personnel has to be limited to 5% of the workforce per plant
Equal pay and equal treatment - Reference basis for Equal Pay is the respective base salary (after 9 months)
Limiting the length of an individual’s assignment (a total of 3 contract extensions or a period of 36 months collectively)
Opportunity for permanent employment and training
Selection of temporary employment agencies
10
Technische Universität München
Volkswagen TCAs: Industrial relations charter
Covers all enterprises and production sites belonging to the group globally
Implementation through company-level “participation agreements”, signed by democratically elected councils
Beyond ILO minimum labour standards Recognition, information, consultation and co-
determination rights Training for workers' representatives External experts
11
Technische Universität MünchenVolkswagen TCAs: Industrial relations charter
12
Rights of:
Information
Consultation
Co-determination
Technische Universität München
Implementation of Volkswagen TCAs in Spain, UK, Italy, Germany
• Spain – VW Navarra (Fernando Rocha Sanchez)
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Labour relations charter:
conflict over co-determinationparts of charter included in collective agreementsnumerous plant agreements on shift work, working hours, redundancyadjustment issues (cultural) conclusion: voluntarist approach
“We are developing in practical terms a dynamic of industrial relations very similar to the co-determination, although without this label, based on two principles: firstly, give detailed information of all labour issues to the works council; and secondly, promoting the consensus and the agreements with the most representative trade unions.” (Trade union officer)
Technische Universität München
Implementation of Volkswagen TCAs in Spain, UK, Italy, Germany
• UK – Bentley (Miguel Martinez Lucio & Stephen Mustchin)
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Labour relations charter:
general cultural change in management style
strong social dialogue
resource issues
conclusion: conundrum
around the notion of co-
determination?
Temporary agency charter:
involved in transnational negotiations
1st agreement VW group
moving towards the 5% threshold
Technische Universität München
Implementation of Volkswagen TCAs in Spain, UK, Italy, Germany• Italy – Lamborghini (Volker Telljohann)
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Temporary agency charter:
10 % by end of 2014
open-ended contract after 18 months
equal working and wage conditions
represented by Lamborghini joint trade union interest representation
Labour relations charter:
institutionalization of IR rights vs. high informality
co-determination vs.
central role of collective
bargaining
4 Joint committees on: performance-related pay, work organization, job classification, health and safety
conclusion: far reaching change
Technische Universität München
Implementation of Volkswagen TCAs in Spain, UK, Italy, Germany• Germany VW & Audi (Michael Whittall)
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Labour relations charter:
recommitment to co-determination
spreading co-determination throughout Germany
conclusion: complementing German co-determination
Temporary agency charter:
elongated negotiation process
flexibility differences between VW & Audi