Determination of Social Minimums at European Level Reflections to the IndustriAll Eastern European Regional Conference

Transcription

1 Determination of Social Minimums at European Level Reflections to the IndustriAll Eastern European Regional Conference Ferenc Rabi (BDSZ) Budapest, 6-7. October, 2014

2 Social Security Conventions of the European Council AT the field of the social security the EC has developed the following so called normative conventions achieving the minimal compliance level: European Social Charta, (Hungary ratified the Charta in 1999, however did not joined the Article 12 guaranteeing the right for the social security); European Social Security Codex, and the corresponding Additional Protocol (however Hungary has not joined yet the Codex, the consideration to sign it is in progress); Restructured Social Security Codex. The EC created a Restructured Codex that puts general basic principles and high supply minimum levels, but gives lots of opportunities for deviations from the general rule. The Restructured Codex is not effective currently. The Codex prescribes supply minimums for the different branches of the social security.

3 The Central Eastern European Effects of the Economical Crisis The EU totally entrusted the IMF with the initiation of the crisis solution(!) The crisis effects in the Central Eastern European region questioning the sustainability of the economic and social convergence process. There is a lack of dispute on social standards in Europe. Now it is rather on economic growth and increase of employment, the problems of living standards are displayed less.

4 The Central Eastern European Effects of the Economical Crisis The European integration can remain lopsided: The large economic and trade integration increasingly concentrating the Western European (former fifteens) effects on one side The lack of the political and social integration characteristic for the fifteens on the other side Creation of jobs was quite weak in Central Eastern Europe even during the largest economic prosperity. More jobs were created in the USA and the EU 15 however their economic boom was only a fracture of the one in the Central Eastern European countries.

5 Németország Franciaország Egyesült Királyság Olaszország Spanyolország Hollandia Svédország Lengyelország Belgium Ausztria Dánia Finnország Görögország Portugália Írország Csehország Románia Magyarország Szlovákia Luxemburg Horvátország Bulgária Szlovénia Litvánia Lettország Észtország Ciprus Málta 602,7 420,8 389,7 382,7 313, ,4 182,1 165, ,5 142,2 97,9 72,1 45,5 43,1 39,9 35,3 34,6 23,4 18,4 16,5 7, , , ,10 Reference data 2 059,90 EU 28 GDP at current prices (billion EUR) in ,

6 Luxemburg Ausztria Svédország Hollandia Írország Dánia Németország Belgium Finnország Franciaország Nagy-Britannia Olaszország Spanyolország Málta Ciprus Szlovénia Csehország Szlovákia Portugália Greece Litvánia Észtország Lengyelország Magyarország Lettország Horvátország Románia Bulgária GDP per capita in purchasing power standards PPS (2013) Please take into consideration that the indicator has been recalculated and the data has been given on EU-27 = 100 basis. So they are not comparable to earlier data on EU-25 = 100 basis. The gross domestic product (GDP) is the indicator of the economic activity results. GDP is the value of all the produced commodities and services reduced by the value of the goods and services used. The GDP volume index per capita calculated in PPS is given in comparison to the European Union (EU-27) average, that is considered 100. Should a country index be over 100, the GDP per capita is higher the EU average in that country, and also vice versa. Data used for the calculation is given in PPS, in a common currency to eliminate the differences of the countries price level and thus making possible the statistically sensible GDP comparisons among the countries. That is important to notice that index calculated on PPS data whereas the EU-27 = 100 is suitable rather for comparison among countries than for comparison in time

7 Minimum wages EU 28 (EUR) Luxemburg 1 874,19 Belgium Hollandia Írország Franciaország 1 501, , , ,22 Nagy-Britannia 1 249,85 Szlovénia Spanyolország Málta Greece Portugália Lengyelország Horvátország Szlovákia Magyarország Észtország Csehország Litvánia Lettország Bulgária Románia 392,73 372,35 337,70 335,27 320,00 318,08 289,62 286,66 158,50 157,50 565,83 697,42 683,76 783,66 752,85 In Germany from the 1 st January, 2015 the minimum wage is 8,50 Euro per hour The minimum wage is not applicable for those under 18 years and for a 6-month period for those restarting work after a durable unemployment. In fields with a sectorial wage agreement the wage may fall short of the legal minimum wage by (that means monthly 1496 Euro, that is over gross 460 thousands forint on the current rate) From 2015: already in 22 countries 0,00 200,00 400,00 600,00 800, , , , , , ,00

8 Minimum wage - region Amount of minimum wage and the changes in the region Source: Eurostat. mfor.hu

9 The amount of the Minimum Wage in Hungary, , valid on the 1 st January (Ft per month)

10 Can there be a European minimum wage? The feasibility of minimum standards is based on the lowest common denominator. (The minimum social standards are common regulations that are the basis the state authorities provide the adequate level of resources and services for everyone on.) Do the socially more developed countries step back in their national system? At those with lower social level the economic performance restricts! A bottom-to-up momentum is necessary. The dispute should be started at member state and national level. The trade unions should be the initiators.

11 Issues of Negotiation on Minimum Income Standards What is the target? (meeting the basic needs, providing the living subsistence or fair income) Whom? (for all the citizens of the society or only for specified groups) can be included into the European Sectorial Collective Agreement? How long? (Is there a time limitation or specification from policy point of view?) Who? (Who is to define the rules and the conditions of the standards, by what kind of criteria?) (The underlying content of the national disputes and ideas on the social standards must be learned.) Can we have a harmonised Central Eastern European trade union position?

12 Possible Ways of Harmonisation Minimal harmonisation: the specification of a basic protection level that the member states can exceed if they want to provide a better protection for their citizens; Standard harmonisation: when the protection level is final and the member states cannot exceed it; Absolute harmonisation: when the protection level is fixed for the EU as a whole irrespectively the differences of the member states; Relative harmonisation: when the differences of the member states are taken into consideration by the determination of the protection level, certain formulas are necessary; Conservative (is not a regression) harmonisation: when the purpose of the measurement to prevent the member states to lower their social protection level. A similar process regulation can be find in the common Agricultural Policy.

13 Minimum Income Standards (MSI) The income level equal to the living subsistence for the given period defined for the whole or part of the population. A policy instrument that is applied for the adequacy of the socially defined minimums and for welfare provisions. Reflects the adequate income only in case of groups of lower society status. MSI concepts formulated in budget minimums, related to living standard and other indicators for a minimally acceptable income level. Related to social rights and minimums.

14 Luxembourg Netherlands Sweden United Kingdom Finland Denmark Belgium Austria Ireland Iceland Germany France Spain Italy Greece Portugal Slovenia Czech Republic Estonia Slovakia Poland Hungary 4 222, , , , , , , , , , , , , , , , , , , , , ,18 Yearly average wages2013 EU 28 (EUR) 0, , , , , ,00

15 Labour Costs per hour (EUR) other labour costs egyéb munkaügyi költségek wages and salaries bérek és keresetek

16 Social Costs in the EU Member States in the percentage of the GDP in 2011

17 The Minimum Standards of the Social Protection The lowest common European denominator must be fixed according to the termination of poverty and social discrimination. The standards can be obligatory or recommended, maximums or minimums. Powers assigned to the EU are restricted at social areas, the scope of decisions remained at member state level, in fact the relevant powers belong to regional/local responsibility levels, the welfare systems are diverse. A common trade union European program and action practice is necessary for the strengthening of the social protection.

18 For the Social Europe (can be trade union demands) 1. Specification of common European targets, promotion of basic social rights introduction 2. Application of minimum standards definition 3. Definition of the obligatory social quality 4. Development of the European social federalism (security system) 5. Strengthening the social dialogue, creation of agreements 6. Application of European Community financial incentives

19 Social Dialogue, Sectorial Social Dialogue Committees The contribution of the sectorial social partners and the sectorial social dialogue is necessary for the achievement of the targets The joint positions of the SSDC are necessary for the establishment of the common European employment conditions, for its continuous improvement and the increase of competitiveness. (Employees training, the obtainment of the necessary professional knowledge, the development of the European competencies must be improved for the future employability.) Display of employee s rights and positions in the dialogue (a specific aspect of the labour world versus a comprehensive one). The social issue should be put more frequently on the SSDC agenda. Position must be forwarded directly to the relevant European organisations primarily through the IndustriAll Europe. Associated projects/applications are necessary regarding the social dialogue and the labour relations. Resources should be found by EU applications for the detailed discussion of the European social minimum issues and creation of those trade union positions that can be jointly represented. Consultation with the SSDC regarding the impact studies related to the measurements of the economy recovery plan in compliance with the new European Committee recommendations A more regular, bottom-up involvement is necessary into the process of the impact studies

20 Conclusions European basic values like solidarity and social Europe are undermined by the unfavorable conditions, primarily the crisis. The EU limited contribution to the crisis management redounded to it. People s hope ten years ago for approaching the economic standards of the rich EU 15 by the European integration with economic and social convergence now has seriously destroyed. Actually the restructuring dramatically affecting the new member states, the lack of adequate answers to the changes, the sharp increase of social differences, the decrease of the social responsibility seriously question the future of the united Europe. A common, coordinated trade union action is necessary.

21 Thank you for your kind attention