Gas Industry: Employers reject binding agreement

European trade union federations have long wanted legally binding agreements with employers at the European level. Without real leverage, achieving these agreements is a tall order. A few weeks ago, the Eurogas employers group refused to sign off on a legally-binding agreement negotiated with IndustriAll Europe and EPSU.

Why it matters: The late Brian Bercusson, a UK professor of labour law, suggested that such negotiations could take place “in the shadow of the law”. By this he meant that if unions and employers could not negotiate an agreement, then the European legislators would bring in a law to settle the matter. “In the shadow of the law” is a nice turn of phrase. Except it has rarely happened. 

The big picture: These realities were brought home a few weeks ago when Eurogas, an employers’ organisation that brings together businesses in the gas industry, refused to sign off on a legally-binding agreement negotiated with IndustriAll Europe and EPSU, a public services union federation. According to IndustriAll, 

The Agreement aimed to collaboratively develop a sector-specific response to the challenges posed by the transformation of the gas industry during Europe’s transition towards net-zero. Eurogas’ regrettable decision to reject the agreement denies gas workers a Just Transition and raises questions on their commitment to a green and fair transition. 

Adding, that the 

“…rejection reinforces the need for EU regulatory action to ensure a framework for a fair transformation that protects workers.” 

In other words, a Directive

The bottom line: These comments from Isabelle Barthés, Deputy General Secretary of industriAll Europe (see below) underscore our wider point. “Dialogue”, in the absence of leverage, is just discussions. It is not collective bargaining. Appeals to “engage in good faith” tend to fall on deaf ears when economic interests are at stake. At the time of writing it is not known why Eurogas refused to go ahead with the agreement, but it has been suggested that some of its member companies were unhappy with the fact that it would be legally binding.

ADDITIONAL INFORMATION:

IndustriAll statement.  While Isabelle Barthés, Deputy General Secretary of industriAll Europe, said: 

“Companies are already restructuring and jobs are being lost. This Agreement was necessary to provide workers with measures that would protect them during the transition. Now all hope of protection is gone.

“Gas sector workers and worker representatives who took part in the negotiations that lasted for nine months are understandably angry with this outcome and expect a genuine explanation as to why the employers are unwilling to commit. 

“Our members have always been, and continue to be, committed to social dialogue, but in order for this to work, we also need employers to show up and engage in good faith.”