Multi-track approach to public-sector restructuring in Europe: impact on employment relations;role of the trade unions

Abstract

The article discusses a) restructuring trends in Europe's public sector (in an employment relations perspective), b) the response of the trade unions to this process, and c) the overall impact of these developments on employment relations in the sector.

We present an analysis emphasising the differences in the regulatory systems applied to public-sector restructuring processes in the EU Member States, arguing that there are significant variations in the development dynamics in employment relations, and, further, that these dynamics can be traced to at least three different regulatory regimes.

The first regime of the three posited regimes emerged from the unique pattern of development observed in the UK's public sector, featuring large-scale privatisation schemes, the introduction of elements of competition and new forms of management. The second type of regime is evident in the Nordic countries, in the Netherlands and - albeit in modified form - in Italy, characterised by a certain measure of restructuring of the public-sector labour market, and based largely on co-operation between public-sector employers and the trade unions. The third type of regime is represented by Germany and France, with their independent regulatory systems in which centralism and sets of rules are paramount, with very few changes in the general pattern of employment relations.

While identifying the significant variations listed above, we also argue that a common trend is evident in the EU Member States: a trend towards centralised decentralisation of relations on the public-sector labour market. Our study suggests that, viewed in a broad West European perspective, decentralisation - despite the many attempts to achieve it and despite its adoption, in principle at least, by politicians and the social partners - has been on a modest scale. This is clearly evident if decentralisation is considered in relation to wage-development.

The tight budgetary constraints felt by West European governments may well be the single determining factor in what can be regarded as rather rigid control, at centralised level, of the framework for wage development in Western Europe. Admittedly, collective agreements can be negotiated and concluded at decentralised level - but preferably within the framework determined at centralised level.

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