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The financial and economic crisis that has garbled the global and European economy since 2008 resulted in intense and profound changes to industrial relations and working conditions.

A new report from Eurofound sketches out the impact of the crisis between 2008 and 2012. The Report finds an accelerated trend in collective bargaining decentralisation in many European countries. Collective Agreements are increasingly at risk with the ongoing crisis placing multiemployer and sector bargaining under threat. The Report identifies dangerous trends in collective bargaining such as fewer extension mechanisms, more opt-out and derogation clauses, less favourability, and more non-continuation of collective agreements upon expiry. Collective bargaining mechanisms have come under attack in several Member States with Troika supervised countries witnessing the most severe brunt. Some countries, particularly those in most difficult financial situations, have seen the emergence of new solidary social movements (the Indignados movement in Spain, ‘associations of persons’ in Greece and others in Portugal and Slovenia).

In terms of working conditions, the Report states that the crisis has resulted in less work, with significant numbers of jobs being cut. The crisis was characterised by reductions in working time and the increased incidence of part-time arrangements. The Report identifies an overall reduction in training opportunities with training opportunities focusing on technical on-the-job requirements rather than transversal competencies. Importantly, although situations vary according to countries, the Report identifies a reduction in paid overtime and an increase of unpaid overtime. On average, there was a reduction in working hours with ever-increasing flexibility in working arrangements. The crisis increased job insecurity with the negative consequences on the well-being and health of workers. These changes are scientifically acknowledged.

Atypical employment (part-time and/or temporary work) has largely increased with reported reduced worker’s choice. Atypical employment is chosen involuntarily as there are fewer opportunities on the labour market. Forced migration or engaging in the informal economy, through undeclared work, are some of the reported trends given the limited choices available to workers.

The crisis has not affected workers in the same way and sector and national differences remained. The Report provides policy recommendations for social partners and governments in mitigating the effects of the crisis on industrial relations and working conditions.

The Report is annexed.