BASTUN. A model of successful regional trade union co-operation in Europe

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1 Bezirk Nord BASTUN A model of successful regional trade union co-operation in Europe BASTUN The Baltic Sea Trade Union Network was officially founded on 1 st July 1999 in the Finnish capital Helsinki. 19 representatives of the trade union confederation in the Baltic Sea Region (BSR) and the Council of Nordic Trade Unions adopted the Vision Baltic Sea 2010, a joint platform for employment, social democracy and a common development perspective for the people in the Baltic Sea Region. This vision can be seen as founding document of BASTUN. It sets a platform for trade union cooperation and goals for the future. Since then BASTUN has managed to set itself up as a permanent co-operation network between the central trade union organisations in the BSR. All BASTUN member organisations, except FNPR and VKT from Russia, are members of the ETUC (European Trade Union Confederation). All are members in the ITUC. The presidents and chairmen of the trade unions declared in the joint platform, that the BSR must develop into a European region characterised of democracy and fair societies. The social dimension must be implemented into the process of integration and transformation. It is in the interest of the trade unions that the dialogue between the social partners is strengthened and tripartite structures created in the region.

2 Vision Baltic Sea 2010 : The implementation of the social dimension is of crucial importance, in connection with the process of integration and transformation in the Baltic Sea area. The aims of the integration and of the transformation are threatened without a welfare policy and without a policy, which fights unemployment. Besides protecting basic social and economic standards is securing jobs and creating new employment in the Baltic Sea area playing a central role for social and economic cohesion and sustainable development of the whole region. Left: Peter Deutschland, Chair of the DGB Northern Germany. He had signed the Baltic Sea Vision 2010 for the DGB. From the first beginning of BASTUN up to now was an exciting time with many political changes. In 1995 there was the 2 nd north enlargement of the EU with Sweden and Finland. In early 90 s the Iron Curtain between east and west fell down, the Soviet Union collapsed. Poland and the three Baltic States became free and independent states. The east and south-east enlargement of the European Union led to the new EU member states Poland, Estonia, Latvia and Lithuania (1 st May 2004). Today, many people and politicians look at the BSR as a European model region. BASTUN was created mainly for two reasons: together the BASTUN members can more strongly influence political decision makers within the region and the member organisations can also implement jointly projects funded by the EU. Freedom, equality and joint responsibility are the basic values of BASTUN. BASTUN wants decent working conditions and salaries for everyone. BASTUN wants human and equal societies. International co-operation of trade unions in BASTUN and in the ETUC (European Trade Union Confederation) is a joint way of influencing EU, CBSS (Council of Baltic Sea States), BSPC (Baltic Sea Parliamentary Conference), BSSSC (Baltic Sea States Sub-regional Conference). Of course, every partner of BASTUN influences politicians in their own countries as well. Tripartite and bipartite co-operation and social dialogue are in the vocabulary of the BASTUN work. BASTUN is an independent network of trade union confederations that has no formal executive bodies such as a board or a presidium. In the last years all BASTUN member organisations have met twice a year in a network meeting. Usually every third year BASTUN has organised a High Level meeting (the first meeting was in Riga on November 1999; the second meeting in Helsinki on April 2003 and the third meeting in Helsinki on November 2006). 2

3 The first meeting in Riga 1999 was the starting point of the work of BASTUN. BASTUN co-ordination takes place at the Council of Nordic Trade Unions (NFS) which has an office in the Swedish capital Stockholm. The Council of Nordic Trade Unions has from the foundation of BASTUN in 1999 taken care of the secretariat of BASTUN. For many years Kristjan Vaigur (Sweden) was the BASTUN co-ordinator; now it is Mika Häkkinen (Finland). First row left: Pirkko Nikula, 3 rd row second left: Klaus Maack, 3 rd left: Eckhard Voß second row right: Helmut Uder, 3 rd row seoncd right: Kristjan Vaigur Vision Baltic Sea 2010 : Various kinds and initiatives of co-operation between trade union organisations in this region have been developed since the start of the transformation process. Especially the trade unions of the Northern states in Western Europe had started their co-operation with partner organisations in the young Baltic democracies, Poland, and Russia, and they had worked on several projects. The Nordic Trade Union Council NFS has played a pioneering role concerning the initiation and co-ordination of various activities by the Northern trade unions in the Baltic Sea Area. The presidency for the network follows the same principle and timetable for rotation as in the CBSS: 2006/2007 Sweden, 2007/2008 Latvia, 2008/2009 Denmark, 2009/2010 Lithuania, 2010/2011 Norway, Germany, Russia, Finland, Estonia, Poland, Iceland, Sweden and Latvia. When BASTUN started with the work, it was the most important task to strengthen the democratisation process in the CEE countries. After the fall of the Iron Curtain, the free trade unions needed advice, support und qualification. Labour law and collective bargaining, social dialogue and employee participation were themes. The trade unions from Scandinavian and Germany supported the Social Dialogue in the three Baltic States, in Poland and in St. Petersburg and they supported the trade unions in the target countries in transition in organising, organisational structure, administration and financing. Developing of network co-operation was on the agenda. 3

4 The DGB Northern Germany and its partner organisations in the BSR have contributes to social stability and the development of solid structures of civil society; have developed new and innovative ideas in areas like social policy and labour market policy; are thereby contributing to a sustainable and responsible growth strategy for the region and are strengthening the idea of Europe in this important European future region. Network projects in the whole BSR are helpful for democratisation, transformation and qualification and learning from the neighbours. Especially Nordic unions have supported Estonian, Latvian and Lithuanian unions since the early 1990 s. In spite of this support the organising rate has remained low and the influence of the trade union movement on working conditions has remained relatively weak in the three Baltic States. After Estonia, Latvia, Lithuania and Poland became a member of the EU the political discussions were focussed on labour market issues as more and better jobs, avoid working poor and social dumping, migration and workers mobility, innovation, qualification, workers rights, and Corporate Social Responsibility (CSR), working conditions, wages, collective bargaining and tripartite co-operation. Besides political influencing BASTUN coordinates and takes part in projects that have a social or political impact on the region. The advantage of BASTUN is that it may collect trade unions together and organise joint projects that would not be financially possible individually. BASTUN s basic philosophy is that the joint projects follow the network s strategic goals, reflect the actual situation in the BSR and can make use of operational activities in terms of topical issues. Klaus Maack from Wilke, Maack and Partner He worked very close together with the DGB Northern Germany to realize EU financed projects in the BSR 4

5 From the German point of view we like to point out the following milestones of Baltic Sea trade union projects, co-financed by the EU: SODICOBA (Social Dialogue and International Cooperation in the Baltic Sea Region) Baltic Sea Labour Market Conference Baltic Sea Qualification Forum Life-Long-Learning Baltic Sea Job Pass Social security, health protection ESEBA I and II (The role of Social Partners in programming and monitoring EU Structural Funds interventions in Germany and the new EU member states) GRIPS (regional development in the German-Polish border region) SPIRIT (Training, coaching, qualification for employees in border regions) CSR Corporate Social Responsibility in the BSR BIM Baltic Sea Income and Mobility and the new actual project: BSLN Baltic Sea Labour Network ( ): A Model for improvement of Interregional Labour Policy The BSLN project, indeed, has a new quality. It is bigger than all former trade union projects in the BSR, there are more partners involved as in any other project before. For the trade unions in the BSR it is a strategic project to bring the co-operation a big step forward, to improve the tripartite dialogue and the political lobbying. The importance of this project is seen also in the fact, that in the preliminary draft of the European Union Strategy For The Baltic Sea Region BSLN is mentioned under the headline To integrate the labour market as an example for a flagship project. Implement the Baltic Sea Labour Network project the project aims to improve the management and harmonisation of the common labour market issues in the BSR based on joint transnational strategies. In particular, demographic changes and migration processes will be taken into account, so you can read in the draft. In autumn 2004 in Stockholm took place a Nordic Baltic tripartite conference on the labour market. The participants of this conference discussed the major differences in salaries, working conditions and standards of living between the Nordic and the Baltic regions. They agreed that the development of an illegal workforce has become an increasing problem. They welcome mobility, but mobility is not constructive if it takes the form of illegal, underpaid, uninsured manpower. The aim was to debate a common labour market in the BSR. In many countries an implication of demographic change will be that there are fewer and fewer people of working age. So the workforce skills must keep high levels. The ambitious aim of the Lisbon process is, that by 2010 Europe should be the most competitive, most dynamic knowledge-based economy in the world, with full employment and social cohesion. Another problem is that many people from the new EU member states are highly skilled but are still working in less skilled positions than they had in their home countries. Immigrants dominate in the most poorly-paid sectors. It was pointed out, that social dumping would have negative effects. The rise of a black labour market and the erosion of welfare systems are great problems too. The participants in this conference agreed to initiate international cooperation between trade union organisations, employers and public authorities. 5

6 Not only the number of projects, e.g. initiated by the DGB Northern Germany, but also this and other tripartite conferences were big steps forward to the BSLN project. Another important conference was the conference on The development of the BSR through economic growth and employment in Helsingör (Denmark) in The BASTUN-Riga conference on April 2005 had the result that all member organisations completely agreed about all questions concerning the use of collective agreements and the solutions for problems concerning social dumping in connection with free movement of labour. The unanimous solutions were no social dumping can be accepted in any form the collective agreements in the country of destination shall be used in all cases. Much of the activities of BASTUN are focused on the mission to influence the political decision makers in the BSR. BASTUN has since 2003 the position of a Strategic Partner in the work done by the Council of Baltic Sea States CBSS and its Working Group of Economic Cooperation. BASTUN has also participated in the BSPC. Normally BASTUN is invited to the yearly meetings of the BSPC. BASTUN underlined regarding to the Northern Dimension following points: Our member organisations in the EU-countries, Russia and Norway want to be constructive partners in improving working life. Improving social and economical development at any country is usually a process, which needs jointly agreed strategies and determination to go in the same direction at a large front. Education, training, life long learning and good working environments are key words in that respect. The level of salaries is a national question. Each country has its own cultures and mechanisms to negotiate and agree. Trade unions in Europe underline one important principle in this respect: all the employees working in a country must be treated according to the same regulations. The salaries, benefits ands responsibilities must be same irrespective of workers nationality. In order to promote a positive development it is essential to have well functioning labour markets. The more clearly we can guarantee fair competition for enterprises and decent working conditions for workers, the better we will succeed. As long as there are big differences in the standard of living in the BSR, there is also place for social dumping. BASTUN proposal for a Labour Market Chapter in the Northern Dimension: The European Social Model embodies a society combining sustainable economic growth with constantly improving living and working standards, including full employment, social protection, equal opportunities, good quality jobs, social inclusion and an open and democratic policy-making process. Workers consultation, collective bargaining, a well functioning social dialogue and fair and just working conditions are keys to productivity and competitiveness. They are also essential in order to promote innovation and growth in the area of Northern Dimension. The following principles should be respected at labour markets: Equal treatment of workers regardless of their country of origin, fair competition between companies based on respect for industrial relations and collective bargaining systems. Social Dialogue should be developed at all levels. Another working field of BASTUN is the relationship to Belarus and the Belarusian Congress of Democratic Trade Unions BKDP. 6

7 Pirkko Nikula from STTK Finland reported to BASTUN in 2006, that the situation in Belarus is not getting any better; on the contrary, it is getting worse. Hard facts for the BKDP are that they have no right for collective agreements, to register unions or to publish a newspaper. The dictatorship will end sooner or later. BKDP wants to be a changing power in that. In the meanwhile they try to survive and even grow through the regulations and pressure is making it more and more difficult. The trade unions in Belarus need a lot of help. Besides mental support, financial support is needed as well. In the BASTUN High Level Conference 2006 the member organisations agreed that the BKDP needs all the support BASTUN can give and that the BKDP shall be a strategic partner to BASTUN. BKDP is welcome to participate in the Network meetings whenever they want. It was also considered important that visits are taken place to Minsk whenever it is possible. In the action plan 2004 BASTUN network decided to concentrate in four areas: Labour market more and better jobs Migration and free movement of labour Innovation, qualification, joint investment area, corporate social responsibility EU and Russia (Kaliningrad included) A short summary about the action plan 2007: BASTUN will continue to develop the contacts towards CBSS and BSPC BASTUN will go on with the fruitful co-operation with ETUC The work on the Northern Dimension Policy will continue with the aim to bring questions concerning labour market, free movement of labour in to the political context and activities Continuing development of the trade union network in the BSR (new priorities and a survey of its activities) BASTUN will follow up the development of labour market questions in the EU with special focus on the BSR. Special efforts will be directed to questions about cooperation, exchange of information, extended contacts, efficiency in lobbying and in the development of co-operation between trade union organisations on different levels 7

8 Project Nordic-Baltic co-operation: Under the headline Promotion of the Social Dialogue, Strengthening of Workers Organisations and the Collective Representation through Education, Information and Consultation with a Special Focus on Nordic Companies in the Baltic States started in 2007/2008 a new project. From left to right: Philip Plischke, Social secretary in the German Embassy in Riga/Latvia, Mika Häkkinen, BASTUN Co-Ordinator and Helmut Uder, Employment Policy Department of the DGB Northern Germany Working plan : The Danish presidency aims to reform and strengthen the network s performance and political and social influence. Three priorities: Labour mobility Support to the Belarusian free trade union movement Swedish EU-presidency 2009 The labour mobility has been a topical question for BASTUN. High immigration and migration processes still challenge the labour markets in the BSR. The results of Viking-Rosella and Laval/Vaxholm cases are centre of attention within the European trade union movement. The labour mobility has shown significant regional distinctions regarding wages, labour market policies, working conditions, health and safety at work as well as industrial relations and traditions. Because the period of the first strategy paper, Vision Baltic Sea 2010, comes to an end, the aim is to prepare BASTUN s vision for 2020, which will define strategic, political, organisational and operational goals for the new decade. One aim is to take the next step forward to make BASTUN a more effective and influential actor in the BSR. EU Baltic Sea strategy: The Baltic Sea strategy of the EU will be built upon four action-oriented objectives: to make the region an environmentally sustainable, prosperous, accessible and attractive and a safe and secure place. The aim of BASTUN and the DGB Northern Germany is to make sure that the voice of the workers is also heard in the preparation of the Baltic Sea Strategy. 8

9 With regards to the Baltic Sea Strategy we underline the following issues: The Baltic Sea Strategy should be instrumental in ensuring fair and well-functioning labour markets The quality of the labour markets should be levelled upwards rather than downwards in the integration process of the BSR. Nobody wins if working conditions are worsened in order to even out the differences between the old and the new EU member states The social dimension should be incorporated in all policy areas Clear and respected labour regulations help to avoid labour conflicts. A Monitoring system is needed to prevent social dumping. Growth and competitiveness depend on several issues, including respect for core labour rights. Decent working conditions, wages, social security and stability should be seen as an important aspect of the competitiveness of the BSR Social dumping can affect the willingness to move to work in another country negatively as well as the readiness of domestic workers to welcome labour from other countries. Labour migration is to be based on high standards and equal conditions for all foreign and domestic labour Social dialogue is constructive element in building a European Social model. Institutionalization of the social dialogue as a tool for the achievement of sustainable and competitive labour market in the region Illegal work is a problem in a society when some employers try to benefit from hiding profit and exploiting employees. Such activity should be considered as a crime A balance is needed between fundamental rights and market freedoms. Economic freedom may not take priority over fundamental rights and social progress, in the dispute fundamental rights shall prevail. Economic freedom/ EU treaty give no right for social dumping Iceland, Norway and Russia are not part of the EU Baltic Sea strategy. But especially the inclusion of Russia is important, otherwise the impact is limited. The Social Dialogue between the EU and Russia is needed (ETUC and FNPR initiatives from 2004 and 2006). Hamburg March 2009 Peter Deutschland (left) together with Uwe Döring, Minister of Labour, Europe and Justice in the Federal State Schleswig-Holstein. The team of the Europe Ministry in Schleswig-Holstein had helped the DGB in developing the BSLN Project 9

10 BSLN: Extraordinary cooperation of workers and employers in the Baltic Sea Region In the midst of economic crisis, workers and employers are working together in co-operation with politicians and governmental bodies to achieve more sustainable labour markets in the Baltic Sea Region (BSR). The Baltic Sea Labour Network (BSLN) is a new 2.6 million Euros, 3 years project involving 26 partners from 9 different states. It is financed by the INTERREG IV B Baltic Sea Region Programme which strives to make the region an attractive place in which to invest, work and live. It is the first time that workers, employers, politicians and governments joined their forces in such a transnational initiative in the BSR. There are significant differences among the states of the region in areas such as wages, labour market policies, social and working conditions, and industrial relations and traditions. These differences must be understood and taken into consideration if we want the BSR to become a model for the rest of Europe in terms of sustainable labour market developments. The BSLN objectives are the enhancement of a broad awareness on the importance of labour market issues, the development of the transnational dimension in labour market policies with the establishment of the BSLN-Forum and finally, the establishment of joint innovative strategies, concepts and actions addressing mobility, demographic changes and qualification. It is a joint task to develop and promote a Pan-Baltic Labour Policy Agenda on labour market issues. To achieve these goals the BSLN is creating a network to identify improvements of or viable alternatives to existing policies, promote research on challenges in the region s labour market, and facilitate interaction among non-governmental organisations, politicians, public officials and experts. The transnational project work started on 25 November 2008 with a tripartite Forum on Mobility of Labour in Copenhagen (Denmark) which examined the issue of the movement of workers between states in the region. While the full project structure will be established during the spring 2009, the BSLN Facilitator Team, an operational driving force and the generator for transnational activities, met for the first time on 19 January 2009 in Stockholm (Sweden). A high-level Steering Committee with strategic role will also be established. BSLN coordinators in every state are responsible for implementing national activities to reach the common goals of the project. For more information please contact: Katariina Röbbelen-Voigt or Helmut Uder Project Manager DGB Northern Germany Kooperationsstelle Hamburg Employment Policy Department Phone: Phone:

11 Here you can find more information about BASTUN: Here you can find more information about the DGB Northern Germany: Here you can find more information about the BSLN-project: From left to right: Philip Saprykin (CBSS, Stockholm), Mika Häkkinen (BASTUN, Stockholm), Katariina Röbbelen-Voigt (Kooperationsstelle, Hamburg), Hans Manzke (Nordmetall, Schwerin), Eve Kyntäjä (SAK, Helsinki), Eduards Filippovs (LDDK, Riga), Stefan Rehm (Kiel), Helmut Uder (DGB-Nord, Hamburg), Sergejus Glovackas (ITUC, Vilnius). 11

12 BASTUN member organisations: Denmark: Danish Confederation of Trade Unions, LO Salaried Employees and Civil Servants Council, FTF Estonia: Finland: Association of Estonian Trade Unions, EAKL Estonian Employees Unions Association, TALO Central Organisation of Finnish Trade Unions, SAK Finnish Confederation of Salaried Employees, STTK Confederation of Unions for Academic Professionals in Finland, AKAVA Germany: Confederation of the German Trade Unions, DGB DGB Regional Area Northern Germany Latvia: Free Trade Union Confederation of Latvia, LBAS Lithuania: Lithuanian Trade Union Solidarumas Lithuanian Trade Union Confederation, LPSK Lithuanian Labour Federation, LDF Norway: Poland: Russia: Norwegian Confederation of Trade Unions, LO Confederation of vocational unions YS Confederation of Unions for Professionals, Unio NSZZ Solidarnosc OPZZ Federation of the Independent Trade Unions of Russia, FNPR All-Russian Confederation of Labour, VKT Sweden: Swedish Trade Union Confederation, LO Swedish Confederation of Professional Employees, TCO Swedish Confederation of Professional Associations, SACO Now BASTUN represents 23 member organisations round the Baltic Sea, inclusive Norway and Russia, with round about 12 million trade union members. Bezirk Nord Employment Policy Department Helmut Uder Besenbinderhof Hamburg Germany T