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Danish Unions Condemn Government Intervention

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12 August, 2005ICEM News release No. 40/1998

Danish trade unions have condemned the government's decision to force an end to the current nationwide industrial dispute. Special legislation is being rushed through the Danish parliament today.

If, as seems likely, the measure gains a majority, it will become law at midnight tonight. After that time, the current strikes and lock-outs will become illegal. Tomorrow is a public holiday in Denmark, so for most of the workers involved, the back-to-work order would in effect apply from Monday.

More than 200,000 workers in Danish manufacturing and process industries, and a similar number in the transport and building sectors, have been on strike since 27 April. Prominent among the unions involved are affiliates of the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM).

The back-to-work law is based on the mediation proposal from the public conciliator which workers voted to reject two weeks ago. From 27 April, the unions launched an indefinite strike across a wide range of industrial, transport and construction sectors. Employers broadened the dispute this Monday by locking out some 30,000 shop and supermarket staff and around 15,000 electricians.

The mediators' proposal voted down by the workers two weeks ago added one extra day off to the Danish workers' existing five weeks’ annual holiday entitlement. The draft law also gives one extra day off for all workers who have at least nine months'service with their current employer, plus two more days off for workers who have children under 14 years of age (and a further day off for workers in this category from 1999 onwards).

To finance these additional holiday entitlements, the increases in pensions contributions that were to have been paid by employers would be reduced by 0.4 per cent of the wages bill. The goverment would also cancel the special sick leave levy under which the employers have to pay 325 Danish kroner per employee to the state.

The effect would be to reduce previously agreed pension improvements for workers. It would also mean that the ratio of employers' to employees' share in pension financing would shift slightly, to the disadvantage of the workers. So far, the principle has been that employers pay two-thirds of pension costs and employees one-third.

The government intervention "has really weakened the Danish negotiating model," commented the ICEM-affiliated general workers' union SiD. "We had of course feared all along that the this dispute could end with a political intervention, due to the employers' intransigence. But even in our wildest imaginings, we had not dreamt of an outcome like this one. This is not what we launched a dispute to achieve." The Danish government was peddling "falsely labelled goods," SiD insisted. The Danish people had not been told of the measure's full implications. The government intervention is "an attack on freedom of negotiation and collective bargaining" and could have serious consequences for Danish industrial relations, the union warned.

SiD particularly criticises the new law's pension provisions as "deeply unjust". While welcoming the increased holiday provisions, the union points out that many of its members will fail to qualify because they have seasonal jobs or frequent changes of employer. "It is the weaker members of society who will be missing out on the extra free time granted to others." The same criticism applies to the extra time off for workers with children. Here, six months' prior service with the same employer is required. The union also says this extra time off will not be on full pay for some groups, "which will come as a surprise to many people."

"It is deeply unsatisfactory that the government will not let the two sides themselves conclude negotiations, at a time when all the possibilities have not been exhausted," said Lillian Knudsen. She is the President of the ICEM-affiliated Danish women workers' union KAD. Knudsen particularly criticised the new law's pension provisions. "We find it completely unacceptable that the government is obliging workers themselves to finance the solution." While welcoming the extra holiday entitlements, and particularly the special provisions for families with children, she noted that "it's the State, and not the employers, that is footing the bill."