European Unions: Labor's Quest for a Transnational Democracy 9780801461576

Table of contents :
Contents
Acknowledgments
Abbreviations
CHAPTER ONE. Introduction
PART ONE. Analytical Framework
CHAPTER TWO. Approaching Euro-Democracy and Its Alternatives
CHAPTER THREE. Do Unions Have an Interest in Euro-Democratization?
PART TWO. European Labor Wage-Bargaining Strategies
CHAPTER FOUR. Wage Policy and the European Monetary Union
CHAPTER FIVE. The Rise of National Competitive Corporatism
CHAPTER SIX. European Wage-Bargaining Coordination Networks: Insights from the Manufacturing and the Construction Industry
CHAPTER SEVEN. Beyond Competitive Corporatism?: Insights from Germany, France, and Italy
PART THREE. Responses by Labor to Transnational Company Mergers
CHAPTER EIGHT. The European Regulation of Transnational Company Mergers
CHAPTER NINE. A Euro-Democratization Union Strategy: The ABB Alstom Power Case
CHAPTER TEN. A Euro-Technocratization Union Strategy: The Alcan-Pechiney-Algroup Case
CHAPTER ELEVEN. Conclusion
Notes
References
Index

Citation preview

EUROPEAN

UNIONS

European Unions Labor's Quest for a Transnational Democracy

RoLAND ERNE

ILR

PRESS

an imprint of

CORNELL UNIVERSITY PRESS

Ithaca and London

Copyright© 2008 by Cornell University All rights reserved. Except for brief quotations in a review, this book, or parts thereof, must not be reproduced in any form without permission in writing from the publisher. For information, address Cornell University Press, Sage House, 512 East State Street, Ithaca, New York 14850. First published :wo8 by Cornell University Press First printing, Cornell Paperbacks, 2010 Printed in the United States of America Library of Congress Cataloging-in-Publication Data Erne, Roland. European unions : labor's quest for a transnational democracy I Roland Erne. p.cm. Includes bibliographical references and index. ISBN 978-o-8014-4648-1 (cloth : alk. paper) ISBN 978-o-8014-7666-2 (pbk. : alk. paper) 1. Labor unions-European Union countries-Political activity. 2. Labor movement-European Union countries. 3· International labor activitiesEuropean Union countries. 4· Democratization-European Union countries. 5· Industrial relations-European Union countries. I. Title. HD6658.5.E76 2oo8 322' .2094-dc22

Cornell University Press strives to use environmentally responsible suppliers and materials to the fullest extent possible in the publishing of its books. Such materials include vegetable-based, low-VOC inks and acid-free papers that are recycled, totally chlorine-free, or partly composed of non wood fibers. For further information, visit our website at www.cornellpress.cornell.edu. Cloth printing Paperback printing

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Contents

1.

Acknowledgments Abbreviations Introduction PART

2.

3·

7·

1

ANALYTICAL FRAMEWORK

Approaching Euro-Democracy and Its Alternatives Do Unions Have an Interest in Euro-Democratization? PART

4· 5· 6.

I.

ix xi

II.

29

EuROPEAN LABOR WAGE-BARGAINING STRATEGIES

Wage Policy and the European Monetary Union The Rise of National Competitive Corporatism European Wage-Bargaining Coordination Networks: Insights from the Manufacturing and the Construction Industry Beyond Competitive Corporatism?: Insights from Germany, France, and Italy PART

11

III.

49 57 So g6

REsPoNsEs BY LABoR TO TRANSNATIONAL

COMPANY MERGERS

8.

g. 10.

11.

The European Regulation of Transnational Company Mergers A Euro-Democratization Union Strategy: The ABB Alstom Power Case A Euro-Technocratization Union Strategy: The Alcan-Pechiney-Algroup Case Conclusion Nores References Index

119

128

157 1 86

203

[vii]

Acknowledgments

This book calls on my two decades of experiences as a unionist, political science student, and labor relations lecturer in Zurich, Berlin, Paris, Brussels, Florence, and Dublin. I cannot list here the names of the unionists, works councilors, colleagues, and friends who supported my research with their experiences and ideas, not to mention practical assistance. Nevertheless, they should all know that I am very grateful for their help. I also thank those who commented on my work when I presented parts of it at seminars and conferences. I am particularly grateful to Colin Crouch and Philippe Schmitter for the encouragement and advice that they provided from the very beginning of this study and to Stefano Bartolini, Hans Baumann, John Benson, John Geary, Corinne Gobin, Andi Gross, Richard Hyman, Maarten Keune, Heinz Kleger, Evelyne Leonard, Paul Marginson, Guglielmo Meardi, Oscar Molina, Udo Rehfeldt, Bill Roche, Stijn Smismans, Sabina Stan, Franz Traxler, Ulrich K. Preuss, and Valeria Pulignano for many valuable suggestions. I also thank John Kelly, Nathan Lillie, and Andrew Martin for their very helpful feedback on a preliminary draft of this book and Catherine O'Dea and Julie F. Nemer for helping me prepare the manuscript for publication. Finally, I acknowledge the institutions that provided financial support throughout the course of my research, namely, the European University Institute in Florence, the Irish Research Council for the Humanities and the Social Sciences, the Swiss National Science Foundation, and University College Dublin.

[ix]

Abbreviations

ABB APA BBC

ccoo

CDU CEEP CFDT CFE-CGC CFTC CGE CGIL CGT CGTP CISL CO BAS esc metal

esc

DAG DG DGB EADS ECB

A.sea Brown Boveri Alcan-Pechiney-Algroup Brown Boveri Corporation Confederaci6n Sindical de Comisiones Obreras (Spain) Christlieb Demokratische Union (Germany) European Centre of Enterprises with Public Participation and of Enterprises of General Economic Interest Confederation Franpise Democratique du Travail (France) Confederation Fraw;:aise de l'Encadrement-CGC Confederation Franc;:aise des Travailleurs Chretiens (France) Compagnie Generale d'Electricite Confederazione Generale Italiana del Lavoro Confederation General du Travail (France) Confederac;:ao geral dos Trabalhadores Portugueses Confederazione ltaliana Sindacati Lavoratori Comitati di Base (Italy) Christian Metalworkers' Union (Belgium) Confederation des Syndicats Chretiens (Belgium) Deutsche Angestellten Gewerkschaft (European Commission) Directorate-General Deutscher Gewerkschaftsbund European Aeronautic Defence and Space Company European Central Bank [xi]

xii

Abbreviations EEC EFBWW EITA EMCEF EMF EMU EMWU ERT ETUC ETUF-TCL ETUI EWC FGTB FIOM

FNV

FO GATT GE GEC GM GMB GPMU GWC HICP ICF IG IGBAU liRA ILO IMF INFO-Institut IN SEE IRES

European Economic Community European Federation of Building and Woodworkers European Free Trade Association European Mine, Chemical, and Energy Workers' Federation European Metalworkers' Federation European Monetary Union European Migrant Workers' Union (Germany) European Round Table of Industrialists European Trade Union Confederation European Trade Union Federation-Textiles Clothing Leather European Trade Union Institute European works council Federation Generale du Travail de Belgique Federazione lmpiegati Operai Metallurgici (Italy) Federatie Nederlandse Vakbeweging (The Netherlands) Force Ouvriere (France) General Agreement on Tariffs and Trade General Electric (U.S.) General Electric Company (U.K.) General Motors General, Municipal, Boilermakers and Allied Trade Union (U.K.) Graphical, Paper and Media Union (U.K.) Group works council Harmonized Index of Consumer Prices International Federation of Chemical and General Workers' Unions Industriegewerkschaft IG Bauen-Agrar-Umwelt International Industrial Relations Association International Labour Organisation International Metalworkers' Federation Institute for Organizational Development and Corporate Politics (Germany) Institut National de la Statistique et des Etudes Economiques (France) Institut de Recherches Economiques et Sociales (France)

Abbreviations

LO MEDEF MEP MP NEAT NRW OECD OSE PCF PRC RSU SMIC SMUV SNB SNCF SPD TCE TEC TEU TUC UAEPME UGT[P] UGT[S] UIL

UMP UN UN ICE USWA VAW

wee wwc WSI

Landsorganisationen i Sverige Mouvement des Entreprises de France Member of the European Parliament Member of [national] parliament Neue Eisenbahn Alpentransversalen North Rhine-Westphalia Organisation for Economic Cooperation and Development Observatoire Social Europeen (Belgium) Parti Communiste Franr political, 30-32, 36-38, 44 workplace, 29-30, 34-36 mobilization theory, 195 modernity, 22 Montesquieu, 122 Monti, Mario, 142, 152-53, 177

Mouvement des Entreprises de France (MEDEF), 105 multinational corporations. See firms national identity, 1-4, 196-sJ7 citizenship and, 16-19 company structures and, 161, 190-91 democracy and, 14 labor history and, 26-27 See also European identity neocorporatism. See corporatism neofunctionalism, 20 neoliberalism, 50, 51, 99 European governance structures and, 123-24, 199-200 Gill on, 124 Pinochet and, 206 n 1 Schulten on, 114 Netherlands, 18, 39 adjusted wage share of, 59t German wage coordination and, 96 real-wage growth in, 97t, 98t union density in, 52t wage moderation in, 61t, 69-72, 7of, 7Fj-76, 78 See also Doorn Group Neue Eisenbahn Alpentransversalen (NEAT), 93 Nicolin, Curt, 21 1 n 1 Noe, Claus, 99-100, 113-14 Norway, 521, 143t Observatoire Social Europeen (OSE), ll3,209nll Papon, Maurice, 213 n2 3 Parti Communiste Fran~ais (PCF), 10,Ij, 140 Partito della Rifondazione Comunista (PRC), 108

Pasture, P., 3, 39 path dependence, 21 Pechiney Corporation, 116, 159-61, 168, 190-91 Cebal factory of, 180-82, 197 Rhenalu factory of, d16, 180, 183, 216 n2I transnational labor relations and, !62-63 See also Alcan-Pechiney-Algroup merger

Index pension reforms, 32, 101 Pernot,Jean-Marie, 37, 194 Pinochet, Augusto, :w6 n 1 Pirelli-Dunlop merger, 134 Poland, 92 ABB Alstom Power job cuts in, 143t adjusted wage share of, 59t construction workers from, 90-92 real-wage growth in, 98t union density in, 52t wage moderation in, 61 t, 64-66, 65C 76-77 Portugal ABB Alstom Power job cuts in, 143t adjusted wage share of, 59t construction workers from, 90-92 real-wage growth in, 9St union density in, 52t wage moderation in, 61t, 64-66, 65f, 76-77 posted workers, 90-95, 197 postfordism, 36, 205n 1 press freedom, 14 Prodi, Romano, 110, 138, 141 productivity European benchmarks and, 97-112, 97t, 98t, 115 inflation and, 87, 93 wage moderation and, 57-61, 58f, 59 t, 110 public sphere, 16-19,23, 25t Rappresentanze Sindacali Unitarie (RSU), 73, 110 Ravenswood Aluminum Corporation, 161 referenda, citizens' initiatives and, 12, 201, 204n2, 204n3 Reinbold, Patrick, 1 So, 181 renationalization, 20 definition of, 203n3 See also democratic renationalization; technocratic renationalization Renault Corporation, 34, 35, 38, 105, 142 Rio Tinto-Alcan takeover, 214 n 7 Risse, Thomas, 23 Royal Dutch/ Shell, 131 Royle, Tony, 35 Ruigrok, Winfried, 129

Salaire minimum interprofessionnelle de croissance (SMIC), 68 Sarkozy, Nicolas, 144, 151-53 Sasson, D., 205n9 Scharpf, Fritz, 15-16 Schartau, Harald, 102 Schmidt, Helmut, 83 Schmidt, Vivien, 121 Schmitt, Adolf, 135-36 Schmitter, Philippe, 53-55, 83-84, 204 n2 Schneider f},ectric SA v Commission, 125 Schneider-Legrand merger, 12 5 Schroder, Gerhard, 32, 100-102, 152 Schulten, Thorsten, 1 14 Schuman plan, 39-40, 205n7 Schumpeter,Joseph, 15, 210n5 Siebert, H., 50 Siemens Corporation, 129, 131, 152, 1 53 skepticism. See Euro-skepticism Slovakia, 98 t Slovenia, 97t, 981 social dialog. See European Social Dialog social protocol, of Maastricht Treaty, 36, s5 -86 Societe Nationale des Chemins de Fer Fran~ais (SNCF), 105 Solidarnosc union, 139, 204n8 Soskice, David, 1 1 1 Soviet Union, 39 Sozialdemokratische Partei Deutschlands (SPD),32,3g,gg-1oo Spain ABB Alstom Power job cuts in, 143t adjusted wage share of, sgt German wage coordination and, 96 labor strikes in, 34 real-wage growth in, 97t, g8t union density in, 52t wage moderation in, 61 t, 66, 67f, 686g,76 Special Negotiation Body (SNB), 14143, 145· q8 Stalin, Josef, 39 Standort Deutschland, 1 o 1

Stedmanjones, G., 27, 28 Strauss-Kahn, Dominique, 100 Streeck, Wolfgang, 42-45, 55, 83-84, 100-101, 206n4

259

Index strike(s), 28, 29, 32 right to, 35, 205n5 See also European collective action supranational, definition of, 204n1 Sweden,2R ABB Alstom Power job cuts in, 143t adjusted wage share of, .rJ9t real-wage growth in, 97t, 98t union density in, 52t wage moderation in, 61 t, 62f~ 64, 7677 Swiss Metal and Watchmaker's Union (SMUV), 163, 164, 166 Switzerland, 18, 55, 92 ABB Alstom Powerjob cuts in, 143t union density in, !j2t TEC. See Treaty establishing the European Community technocratic renationalization strategy, 3-4, 20, 21f, 24, 2!)t, 26 collective bargaining coordination and,81,96, 112-16,187 feasibility of, 42-43 wage bargaining and, 56-57· 63, 90-94 See aLm Euro-technocratization Teulings, Coen, 63 Thatcher, Margaret, 63-64, 83 Thibault, Bernard, 104-5 Thier ron, Bert, 207 n 7 Thorn, Gaston, 83 Tomasi di Lampedusa, Giuseppe, 204n6 Total-Fina-Elf merger, 179 Trades Union Congress (TUC), 83 trade unions Euro-democratization and, 3-4, 2633,91,195-200 exchange power of, 32-33, 38-40 mobilization power of, 29-32, 34-36, 44 transnational cooperation among, 27, 34-38,96, 169-70 wage-bargaining dilemmas of, 55-56, 113 transfer pricing, 159, 213n3, 214n4 transnational collective action. See European collective action transnational democracy, 2, 16-19, 129 Treaty establishing a Constitution for Europe (TCE), 12-q, 156, 200, 2 d1 n4

Treaty establishing the European Community (TEC), 3.rJ. 54, 84, 122, 155, 1 99 Treaty of Rome, 121 Turnbull, P., 199, 216n2 Turner, Lowell, 3 7-38, 94, 137 Unilever Corporation, 131 union density, 51, 52t See also trade unions Unione ltaliana del Lavoratori (UlL), 32, 73· 108, 110 Union Europeenne de I' Artisanat et des Petites et Moyennes Entreprises (UEAPME), 2o6n2 Union for a Popular Movement (UMP), 1 44 Union oflndustrial and Employers' Confederations of Europe (UNICE), 36, 84 See also Business Europe Union of Soviet Socialist Republics (USSR), 39 United Kingdom ABB Alstom Power job cuts in, 143t, 1!)0 adjusted wage share of, 59t union density in, 52t wage moderation in, 61-64, 6It, 62f, 76-77 United Steelworkers of America (USWA), 161, 16g Uyterhoeven, Hugo, 130, 132 Van Tulder, Rob, 129 Verberckmoes,J., 3 Verdier, Claude, 170, 173-74, 177 Vereinigte Aluminium-Werke (VAW), 181,182 VIAG group, 160, 164 Vodafone, 120 Waddington, Jeremy, 37 wage-bargaining coordination networks, 8o-82, 112-16, 187-89 Sr'P alm collective bargaining wage moderation absence of, 61-64, 61t, 62f bargained, 69-76, 7of-75f productivity and, ::,7-61, 58f, 59t, 110

Index wage moderation (continued) technocratic renationalization strategy and, 57, 63, go-94 types of, 61t wage ratio, s8-sg, 59t Wagner, Anne-Catherine, 114 Wassenaar Agreement, 6g Weiler,Joseph, 15

Wirtschafts- und Sozialwissenschaftliches Institute (WSI), So, 86 workplace mobilization, 29-30, 34-36 world company councils (WCCs), 13336 World Works Councils (WWC), 168 Zurcher Kantonalbank, 214n6