New sectoral collective agreement in transport sector

Two Estonian transport trade unions have signed a sectoral-level collective agreement that will increase the basic monthly salary of transport workers (including tram, trolley and bus drivers and repair workers) by up to 12.2% in two stages. From February 2012, their minimum monthly wage will be €650 and from September it will rise to €700. The agreement, which covers all employers, also includes a tripartite declaration that aims to improve the quality of public transport.

Problems with previous agreement

The previous sectoral-level collective agreement for the transport industry, lasting two years, was concluded in December 2007 after some intense negotiations. The Estonian Transport and Road Workers’ Trade Union (ETTA) had threatened to strike over a pay dispute with employers. However, on 12 December 2007, the parties reached agreement and the strike was cancelled (EE0801019I).

Neither ETTA nor the Union of Estonian Automobile Enterprises (Autoettevõtete Liit) were satisfied with the declaration that was included in the agreement since it did not address specific issues of the private transport sector. The Union of Estonian Automobile Enterprises wanted a control mechanism for the whole sector, including commercial services. Although the collective agreement would have been mandatory for all transport enterprises, its failure to set up truly comprehensive control of the sector could create unfair competition.

Negotiations for a new agreement

In December 2008, the Union of Estonian Automobile Enterprises decided that although the situation in the Estonian labour market had improved and the number of bus drivers looking for work had increased due to worsening economic circumstances, it was still necessary to increase wages by 10%–15% starting from 2009. The union believed this would attract younger workers and stem the flow of bus drivers heading abroad.

However, the Union of Estonian Automobile Enterprises also decided that even though the previous sectoral collective agreement had expired, it would not be possible to renew it or to increase the minimum hourly wage, an increase that would eventually apply to the whole transport sector.This decision was based on the analysis conducted by the Estonian Tax and Customs Board (EMTA) who found that the pay level in most transport companies was much lower than the pay received by members of the Union of Estonian Automobile Enterprises, and many companies paid only the transport sector’s minimum wage. The Union of Estonian Automobile Enterprises found that as the sectoral collective agreement had not actually been implemented across the whole sector, and the control over the fulfilment of the agreement had not been sufficient, this represented a threat to their members competitiveness.

The Union of Estonian Automobile Enterprises proposed that the situation in the transport sector should be discussed between ETTA, the Ministry of Economic Affairs and Communications (MKM) and EMTA.

In September 2011, the parties began negotiations to renew the collective agreement. In addition to AL and ETTA, representatives from MKM and the Public Conciliator’s office also took part.

Renewed agreement

On 8 February 2012, a new sectoral collective agreement was concluded between the Union of Estonian Automobile Enterprises and ETTA, which will be valid until the end of 2012.

According to the new agreement, the basic salary of bus, tram and trolley drivers and skilled repair workers will be increased in two stages by up to 12.2%. From 1 February the minimum monthly wage will be €650 and from 1 September it will rise to €700.

The renewed sectoral agreement also includes a tripartite declaration that aims to support different parties in pursuing better quality public transport. For example, the declaration includes clauses covering fair competition, better inflow of ticket revenue and bus traffic financing.

In addition to the declaration, in December 2011 three new regulations of European parliament and of the council (regulation (EC) no 1071/2009, no 1072/2009 and no 1073/2009) were implemented, which , aim to establish common rules concerning the conditions to be complied with to pursue the occupation of road transport operator and enable fair competition in the EU road transport. Thus these new regulations should also help to improve quality in the transport sector.

Commentary

The sectoral collective agreement covers around 10,000 employees working in the transport sector. Sectoral collective agreements in public transport have been concluded for the past 20 years and the only similar sectoral agreement exists in the healthcare sector.

Liina Osila, PRAXIS Centre for Policy Studies