2004-02-01: Collective agreement in Danish industry signed

Sunday 1 February CO-industri and our employers, Dansk Industri, signed a collective agreement for 220.000 workers in Danish industry.

The main elements of the agreement, which will be followed by annual enterprise level agreements on wage increases are:

• The duration of the agreement is 3 years
• The payments for pensions are increased as follows:
• Blue Collar Employers contribution Workers Contribution 1. July 2005 0,6 % 0,3 % 1. July 2006 0,6 % 0,3 % White Collar Employers contribution Workers Contribution 1. July 2005 0,6 % 0,3 % 1. July 2006 0,6 % 0,3 % 1. July 2006 0,6 % 0,3 %

This means that the white-collar groups will catch up with the percentage of the blue-collar ones. The difference until now has historical reasons.

• Payment for public holidays is increased per 1 January 2005 from a total of 3.5% of pay to a total of 4.0 % - and in the future 24. December is included in this payment.
• Payment during parental leave is increased per 1. July 2004 from 14 to 20 weeks. The last 6 weeks a maximum of 125 Dkr/hour (approx €16.50). This payment for the last 6 weeks is available for men as well as for women.
• From 1. July 2004 full pay during 4 weeks of pregnancy leave is introduced (last 4 weeks of pregnancy)
• Payment of full pay during sickness is prolonged per 1. July 2004 from 5 weeks to 9 weeks.
• From 1. July 2004 one week full pay is introduced for parents, whose children are hospitalized so that they may be in hospital with their children.
• For dismissed workers with more than 3 years seniority, the employer pays two weeks further training.
• The minimum pay, which today is 88.40 Dkr /hour (approx €11,80) is increased with 2.25 Dkr/hr (approx € 0,30) per year, 1 march 2004, 2005, 2006
• Allowances for shift work, night work etc. is regulated with an average of 3% per year.
• Payment of apprentices is increased with an average of 4.5% per year
• Special clauses are introduced on varied weekly working time o No changes in the maximum period of variation o Where today the majority of workers in a group had to accept varied weekly working time and it applied to the whole group, a system can now be introduced on a voluntary basis, provided the Shop Steward approves.
• The experimental scheme, introduced in the agreement in 2000, which made it possible to deviate from the agreement primarily on working time has been changed to allow such a scheme to go ahead on the basis of local agreements between the shop-steward and the enterprise. It is no longer necessary to acquire approval of the organisations. This possibility exists only where there is a shop-steward. This clause expires with the expiration of the agreement and will have to be specifically renewed in 2007 if we want to continue it.
• A special effort will be made to ensure that the obligation for peace is respected. o In cases where unrest emerges in a company, both parties are obliged to ensure that a meeting local meeting is called within 1 day, and a meeting between the organisations is called within 5 days in order to try to resolve the problem. o In cases of strike against the obligation to peace, the present procedure will be put into force within the first 24 hours of strike rather than currently 48 hours. o In case of strikes against the obligation to peace, the employers possibility to ask overtime without extra overtime payment to catch up with lost production is extended from 8 to 14 days after the end of the strike.
• If the legislation concerning unemployment benefit in cases of interim or partial lay-offs is changed, or if legislation is introduced concerning the costs of employers in connection with parental leave, including legislation about a central parental leave fund the parties will meet to find a solution. If this is not possible the agreement stays open on the respective issue.

The estimated cost of this national agreement is just below 1.0% per year.
It is important to note, that this agreement will be supplemented with enterprise level wage-negotiations. In the Danish system, these negotiations take place every year. The precise result cannot be predicted, as the situation of every company plays a role. It is however the experience that the national agreement constitute approximately 1/3 of the overall increase, while the enterprise level negotiations constitute 2/3. See the Eucob@-reports for more documentation.
The agreement will be in force after it has been approved by a ballot. This will take place once all agreements in the private sector has bin closed. This should happen around 1 March.