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The assault on workers’ rights, wages and collective bargaining systems in Europe continues unabated. The latest report examining labour market developments in Europe is rife with anti-labour connotations, an appalling deregulation agenda, and open attacks on the wage-setting power of trade unions. In the latest report, commissioned by DG ECFIN, the reduction of the coverage of collective bargaining is assessed as a positive and ‘employment friendly’ measure. Reforms aimed at the decrease of worker and social rights are positively rated: “reforms potentially leading to better employment outcomes (henceforth employment-friendly reforms)” are reforms that “decrease the bargaining coverage or (automatic) extension of collective agreements”, and “result in an overall reduction in the wage-setting power of trade unions (Labour Market Developments in Europe 2012, European Commission, 2012).”



DG ECFIN expectedly included a statement clarifying that the report does not necessarily express the views of the European Commission. DG ECFIN avoided taking responsibility for such an unsocial categorisation of labour market reforms. The European trade union movement hopes this report is considered for what it is: a technical note. Under no circumstance should this unsocial report be taken in account when issuing recommendations or assessing the National Reform Programmes in the European Semester process. Blindly pushing for labour market flexibility and deregulation, including the undermining of collective agreements and employment protection legislation, must stop. It is with regret that UNI Europa sees the covert promotion of this deregulatory agenda, imposing unsocial measures to Member States in addition to the untenable pressure from financial markets. This agenda and imposition of deregulatory measures has had dramatic consequences in the so-called assistance programmes countries.



The recently adopted financial adjustment measures to be implemented in Greece, Portugal, Romania, and Spain among others were imposed by the Troika (ECB, European Commission, and IMF). Effectively, in Greece, the Troika succeeded in forcing the reduction of statutory minimum wages, the annulment of the extension of collective bargaining agreements, and the intolerable decline in the power and capacity of trade unions to set wages at national or sector levels. The Troika has even successfully secured the implementation of an increase of working hours through the introduction of a six day week and an 11 hour resting period. Article 151, 152 and 153 TFEU, referring to the European Social Charter and the Community Charter of the Fundamental Social Rights of Workers, specify that EU objectives include improvements regarding living and working conditions, social protection, and health and safety of workers. The Troika and its untenable proposals go against the key objectives of the EU and even challenges European legislation (Working Time Directive).



The described agenda undermines the role of social dialogue partners, limits their autonomy and questions their ‘raison d’être’. The single-minded pursuit of competitiveness and quest for economic growth is beset by flawed assumptions. It is believed that drastic deregulation of labour markets would bring about the conditions that could enable employment growth. Studies demonstrated that union affiliation actually stabilises labour markets, a pre-requisite for growth. Strong collective bargaining structures actually strengthen social cohesion and are not incompatible with an amelioration of national competitiveness. Is the Troika aware that it demands the dismantling of the European Social Acquis? The European trade union movement and UNI Europa in particular, condemn this study and call upon the European Commission to disregard its conclusions: it is based on flawed assumptions. UNI Europa stands in solidarity with European workers against austerity measures that limit their purchasing capacity and undermine their fundamental rights.