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Trade Unions and Labor Migration Issues
in European Union.
Comparative analysis of Germany, Spain
and Italy
HRISTO PANCHUGOV
BASIC ASSUMPTIONS
• One of the basic freedoms provided by EU
membership is the opportunity for free movement
of people and labor
• The question of free movement of workers has
been one of the main debates throughout the
negotiation process with the applicant countries
from Central and Eastern Europe
• As a result transitional periods for free labor
movement were imposed to the applicant
countries
BASIC ASSUMPTIONS
• The key veto players are the trade unions - free
labor movement will lead to lower and flexible
wages, high unemployment
THE PUZZLE
• European Commission in its report in 2001
concluded that there will be no significant effect
of the expected low migration on the labor market.
• The experience of previous enlargements does not
prove these assumptions previously made.
• European Commission initially opposed the
opportunity of transitional periods for free
movement to be imposed on accession countries.
THE PUZZLE
• Contrary to Commission’s position and the
evaluations that have been made a proposition for
such measures has been initiated by some of the
countries (Germany and Austria).
• Some of the countries did not support that
proposition.
• The question is why?
The Research Question
• What is the role of trade union
organizations in determining governmental
decisions on free movement of labor issues
in the process of EU enlargement?
Hypothesis
• The main hypothesis will state that the difference
in the countries’ position on imposing transitional
periods of the applicant states will be based on the
ability of the trade union organizations to
influence the government.
– H1: The potential for successful lobbing efforts will be
determined by the organizational structure of the labor
unions and the institutional framework of the corporate
system as well as by the political configuration.
Hypothesis
– H2: It will depend on the lobbing potential and the
strength of the business organizations as the third
participant in the corporate system.
Alternative Hypothesis
• There is no link between trade unions’
ability to influence government and its
position on the issue of imposing
transitional periods of the applicant states .
Variables
• The main hypothesis will be assessed
through the public debate between
government and trade unions over the labor
migration issue.
• As dependent variable will be considered
the governmental position toward the
imposition of transitional period on
applicant countries.
Variables
• Independent variables:
– trade unions’ position on the issue
– National trade unions’ organizational structure
– Institutional framework
• Intervening Variables:
– Ideological relations with the government (the
currant governmental composition)
– National business organizations
– The degree of expected labor migration
Case Selection
Germany, Spain and Italy
• GERMANY
• The country that initiated
the transitional period
• around 500 000
immigrants in the time
when negotiations were
open
• the expected migration
was about 2/3 of all
migration flaw from new
member states after
accession
• Centralized labor
• Spain
• It opposed the transitional
period
• the immigrants were
around 15 000
• the intensity of the
migration flaw was not
expected to be high
• detailed regulatory
framework for collective
bargaining but not
centralized labor
Case Selection
Germany, Spain and Italy
• Italy
• It did not accept the measure as necessary at the beginning
• The immigrants were around 50 000
• There were estimations for a relatively high migration flow
in Northern Italy.
• Really complex framework of corporate relations. Divided
national labor organizations
Critique
• The Hypothesis
• The variables
– introducing new variable -: constraints imposed by the
EU on member states to adopt certain policies or even
to propose them.
• Operationalization
– how the level of centralization of national labor
organizations might be measured
– influence of trade unions should be operationalized
Critique
• Sample Justification
– I hope I justified it, if not please let me know
• Data Needed
– TRUE
• Alternative Explanation
– not the pressure from trade unions, but fear of losing
next elections
THE END
THANK YOU
Research Proposal
Trade Unions and Labor Migration Issues in European Union.
Comparative analysis between Germany, Spain and Italy.
Comparative European Politics
Lecturer – Zsolt Enyedi
Student – Hristo Panchugov
Introduction
Corporatism and the strategies of collective bargaining are one of the main characteristics
of the Western-European national political and economical structures. They involve into the
social dialog trade unions, employers and national governments. This system is based on mutual
trust and consensus. It gives opportunity to those interest groups to influence the government,
and in return guarantees political legitimacy and effectiveness for governmental policies. It
contributes to the political stability of the system. (Slomp, H., 2000).
European Union’s common policy and single market regulations impose a number of
difficulties on the system of collective bargaining. The possibility for market dumping and labor
migration will cause “decrease in real wages and an increase in the rate of return to capital”
(Hansen, B.) and is generally seen as one of the reasons for decline of the national trade unions’
positions.
The right of free movement and work is guaranteed for the citizens of any member state
country in any member state by articles 48 and 49 of the Treaty of Rome. Nevertheless every
stage of EU enlargement has been complemented by the fears of massive labor migration from
the new member states, because of the wage differences, that will lead to drastic decrease in the
wages and increase in the unemployment rates in the old member states. Thus the trade unions
are seen as the main actors opposing future enlargement. They engage in various lobbying
activities to convince national governments to restrict the access of citizens of the new member
states to the labor market.
The question of free movement of workers has been one of the main debates throughout
the negotiation process with the applicant countries from Central and Eastern Europe (CEECs).
This paper will try to analyze the influence that trade unions have over the governmental
migration policies. Migration policy will be operationalised as governmental position towards
transitional periods for free labor movement in the negotiation process for EU enlargement.
Recent study has analyzed the successful lobbying efforts of the German labor in that direction
(Bohle/Husz, Forthcoming). This research will focus on comparative analysis of three countries
– Germany, Spain and Italy in an effort to discover what were the reasons behind this success?
The research will try to discover whether there is general link between the governmental
position for transitional periods and the trade union’s strength to influence the decision making
process in the new realities of EU. Furthermore based on these findings it will make some
generalizations about the role of the trade unions as political actors. Thus the project will focus
on the main factors that will have an impact over the trade unions’ political capital seen as
“significant union intervention at a political level” (Rigby, Smith and Lawlor, 1999, p. 24).
Two factors that are going to be considered in this research are the structure of the
national trade union organization and the institutional framework in which they operate. This
research will assume that each country have certain informal political demands that have to be
fulfilled for an actor to be able to exercise influence over governmental policies. The project
will try to prove that the “significant intervention” will depend on the structure of the national
trade union organization in a way that more centralized it is, more easy it will overcome the
barriers for political involvement. In this case the barrier will be the rational cost and benefit
analysis of the labor migration impact on the national labor market. More centralized national
labor organization will be more suitable for governmental lobbying activities, and thus will be in
better position to influence the outcome of the negotiations over the transitional periods within
EU.
Second factor of importance for the aim of this proposal the structure and the role of
business organizations, as the third actor in the collective bargaining, in the three cases selected
for the research. Business is usually seen as the main factor that drives the EU enlargement, and
the actor that benefits most of the process. It is considerate to be in favor of “a liberal migration
regime” that will lead to the “flexibilization of labor market and social security systems”
(Bohle/Husz, Forthcoming).
At last but not least we should consider the fact that there is possibility for the different
member states to be exposed to different intensity of migration which will affect the overall
outcome of the lobbying activities. Here issues like geographical proximity of the country,
peoples’ expectations about future migration flows and the salience of the issue should be
addressed as well.
THE BASIC ASSUMPTIONS
Just to summarize what has been said before in the introduction, the following basic
assumptions will be made:
•
One of the basic freedoms provided by EU membership is the opportunity for free
movement of people and labor - articles 48 and 49 of the Treaty of Rome.
•
The question of free movement of workers has been one of the main debates
throughout the negotiation process with the applicant countries from Central and Eastern
Europe. The concerns about an increase in labor migration flow and hence an increase of the
unemployment rates was based on the higher wages and the difference in GDP between
member states and applicant countries.
•
As a result transitional periods for free labor movement were imposed to the
applicant countries.
•
The key veto players are the trade unions - free labor movement will lead to lower
and flexible wages, high unemployment
The Context of the Enlargement Negotiations
(THE PUZZLE)
The result of the enlargement negotiations consists of the following elements (European
Commission, 2002):
•
A two year period during which national measures will be applied by current Member States
to new Member States. Depending on how liberal these national measures are, they may
result in full labor market access.
•
Following this period, reviews will be held; one automatic review before the end of the
second year and a further review at the request of the new Member State. The procedure
includes a report by the Commission, but essentially leaves the decision on whether to apply
the acquis up to the Member States.
•
The transition period should come to an end after five years, but it may be prolonged for a
further two years in those Member States where there are serious disturbances of the labor
market or a threat of such disruption.
•
Safeguards may be applied by Member States up to the end of the seventh year.
•
Austria and Germany have the right to apply flanking national measures to address serious
disturbances or the threat thereof, in specific sensitive service sectors on their labor markets,
which could arise in certain regions from cross-border provision of services.
The transitional periods were introduced, as part of the conditions, by the European
Commission only after they have been requested by Germany and Austria. The initial position of
the Commission based on the migration forecast made by a “consortium of EU research institutes
(Brücker and Boeri 2000), seems to confirm the results from other research that the overall
impact on the EU labor market should be limited, both on the negative and positive side”
(European Commission, 2001). The report estimates the annual worker’s migration flow of be
around 70 000 people – 200 000 if the non-worker migration is included. The enlargement
towards Bulgaria and Romania will produce another 50 000 workers annually (135 000 persons).
The study estimates the long-term migration potential (in 2030) to be around 1\% of the
population of EU 15.” This report “The free movement of workers in the context of
enlargement” concludes that there will be no significant effect of the expected low migration on
the labor market.
Other studies that address the benefits of the migration.
Based on these assumptions European Commission initially opposed the German and
Austrian position for transitional periods for free movement. But after one month, without
introducing “any economical justification for the measure” (Bohle/Husz, Forthcoming), the
Commission proposed flexible transitional arrangements, due to the strong pressures from those
two countries.
At the beginning of these negotiations most of the other countries did not introduce such
measures, and Spain, Portugal and Greece even opposed. The question that naturally arises is
what are the reasons that can explain the difference. I think that it is easy to be understood that
one of the most important factors with relation to this problem is the composition and the
strength of the domestic “veto” players.
These assumptions naturally highlight the research question that will be addressed in this
research proposal and in the future research, namely - What is the role of trade union
organizations in determining governmental decisions on free movement of labor issues in the
process of EU enlargement? Since, after the transitional periods were requested from Germany
and Austria, the outcome is influenced by the inter-state bargaining on EU level, this research
will restrain itself to the beginning of these negotiations. What will be considered is the position
that governments initially took when the measure was requested, as well as why it was those
countries that requested it.
THE HYPOTHESES
The main hypothesis will state that the difference in the countries position on imposing
transitional periods of the applicant states will depend on the ability of the trade union
organizations to influence the government. Stated this way the hypothesis expresses the believe
that this study will be able to locate labor unions’ lobbying efforts on the issue of labor migration
in any of the countries within the timeframe defined before. Furthermore it implies that the
outcome will be determined by the capabilities of the union organizations to “intervene” as
political actor in the decision making process.
A distinction should be made between the role of the trade unions as political actors and
their participation in the collective bargaining process. The literature looks at the corporate
system as bargaining process between social actors (unions and business) in which government
has meditative role. “The government main function is to facilitate compromise by offering tax
facilities, training funds, and active employment policies, as well as to integrate the conference
results in a new legislation if the partners so wish” (Slomp, H., 2000). Slomp (2000) identifies
three levels of collective bargaining, namely branches, economic sectors and nation wide. There
is of course different degree to which the state interferes in the bargaining process but the
literature seems to agree on the fact that the involvements in political activities and in collective
bargaining are two different types of activity.
“Participation in social and political activity often involves a different, campaigning,
style from that associated with integrative, enterprise-based bargaining” (Rigby, et. al, 1999,
p.37). Boreham and Hall (1994)1 bring the concept of political unionism, which incorporates in
one strategy the efforts of the unions, both on political level and that of the enterprise. They
argue that the political unionism will be “most effectively be implemented by a relatively
centralized and unified union movement, pushing beyond the economistic aspirations…” (Rigby,
et. al, 1999, p.25).
However this research will try to identify the factors that shape the ability of the trade
union organizations to influence the government. Having in mind what has been said before
two hypotheses can be developed as part of and to complement the main one:
•
H1: The potential for successful lobbing efforts will be determined by the organizational
structure of the labor unions and the institutional framework of the political and corporate
system they operate in.
•
H2: It will depend on the lobbing potential and the strength of the business organizations.
An alternative hypothesis of course should be kept in mind while conducting the research
and it will state that there is no link between trade unions’ ability to influence government and
its position on the issue of imposing transitional periods of the applicant states. This means
that the outcome will be attributed to the difference in estimations of the intensity of migration
flow in each country and the salience of the issue. The alternative hypothesis implies that in
cases where almost no migration is expected, it will not be considered as a threat by the trade
unions and they will not get involved in activities to influence their government on the matter.
THE VARIABLES
The main hypothesis will be assessed through the public debate between government,
trade unions and business organizations over the labor migration issue. The positions of the
different actors will be compared and analyzed. The research will try to determine whether the
issue is considered to be of primer importance; whether different alternatives (except transitional
periods) for dealing with the problem have been discussed and who brought them into the
Mike Rigby, Roger Smith and Teresa Lawlor, 1999, “European trade unions. Change and Response”, London,
Routledge p.25
1
debate; and whether the rational cost and benefit analysis and the initial position of the European
Commission have been addressed and in what way.
As dependent variable will be considered the governmental position toward the
imposition of transitional period on applicant countries in each of the cases chosen for this
research. Since a difference in the dependent variable among the sample is observed this project
will focus on determining which factors shape these differences.
As independent variables will be considered:
•
Trade unions position on the issue
•
National trade unions’ organizational structure
•
The legal and institutional framework that they operate in.
The first independent variable will be addressed in relation with what is trade unions’
response to different alternative solutions for limiting migration, like double taxation and early
cross-boarder cooperation, and how justified it is in economic or political terms.
The second independent variable has already been addressed on several occasions. The
literature seems to agree that “the type of response which unions develop is constrained by the
structure and organization of the unions themselves” (Rigby, et. al, 1999, p. 20). Rigby, et. al
(1999) quote Crouch (1986) who “argues that a union movement which becomes completely
decentralized loses the capacity for strategic action… the unions will need to renew and
strengthen their political involvement” (Rigby, et. al, 1999, p. 24).
As was stated before this research will try to prove that centralized national union
organization will be more able to develop response of the pressure exerted by the transnational
factors as EU enlargement, and to influence government decision. This variable will be measured
through the type of nationa ...
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