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Danish Contract Negotiations Deadlocked on National Level

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22 February, 2010

With a 1 March deadline looming, bargaining has temporarily stalled between the ICEM-affiliated general union, Central Organization of Industrial Employees in Denmark (CO-industri) and the Confederation of Danish Industry (DI). Negotiations are aimed at renewing collective agreements across the country’s industrial sector. CO-industri represents 276,000 employees in the trade and service industries, while DI is the leading business lobbying organisation.

The collective bargaining round directly affects 240,000 workers in the manufacturing industry and indirectly affects an additional 350,000 workers in the private sector. Historically, the manufacturing agreement is used as a blueprint for other negotiations.

Business leaders set the tone for negotiations even before it began. DI CEO Hans Skov Christensen outlined his priority for the talks as an opportunity to “restore the competitiveness of Danish companies,” adding that wages are not the only element in competitiveness, but still a “highly central part.” These remarks were made by Christensen at the 6 January press conference, immediately prior to the start of discussions with CO-industri.

The chief negotiator and President of CO-industri, Thorkild Jensen’s, said the union’s clear primary demand in talks is the continued positive development of real wages. The secondary demands include improvements in social clauses, including improved pay during sick leave, improved maternity allowances, and improved conditions for shift workers and apprentices.

Equal pay across the gender divide is also high on the agenda for this negotiation, as is the review of a special rule in prior agreements affecting clerical workers. Currently, clerical workers are only covered by the collective agreement if over 50% of workers in a specific company are members of HK, the union for commercial and clerical employees.

Co-industri is following the guidance of the recently established European Metalworkers’ Federation (EMF) policy resolution that calls “for more secure employment, against precarious work.” This will be included in union demands in terms of increased investment in training and education of workers, and protections for temporary agency workers.

The parties will continue to work towards an agreement without the conciliation of the Ministry of Labour. According to CO-industri’s rulebook, every agreement must be put to a ballot, with a simple majority needed for ratification.