"East-agreement" - individual migrant workers

Research paper by Klaus Pedersen & Søren Kaj Andersen (October 2007)

In 2007 the number of employee's from the new EU-countries in East- and Central Europe seem to exceed all previous years if Danish Immigration Service's judgement is correct. 35,000 individual "east-workers" are expected only in 2007. To this figure must be added posted workers in order to reach the total number of "east-workers" in Denmark. A FAOS study in September 2007 revealed an estimate of 11,000 posted workers only in the construction sector at that same time. Estimating 15,000 to 20,000 posted workers at any time in all sectors do not appear inappropriate.

The Danish Labour market model seems to have responded rather well to the challenges from the east-employees upon Danish wages and working conditions. This is especially the case if one looks only at individual migrants and excludes the posted east-workers. The Danish allonge to the transitional agreement - the so called East-agreement - decided by the Danish parliament has contributed to a reinforcement of the labour market. This counts predominantly in sectors most modest covered by collective agreements; first and foremost agriculture.

Danish Unions, on the other hand, have been less successful in recruiting east-workers as union members. The main reason might be that east-workers do not carry a tradition for unionisation. At the same time though, it looks as if Danish Unions needs to consider their member propositions and the benefits for eastern-workers in collective agreements. Question is, are they sufficiently relevant for the east-workers? Primarily the request for work-time-flexibility appears to be higher for east-workers compared to Danish workers.

Other issues apart from unionisation and collective agreements contribute to decent wages and working conditions on the Danish Labour market. We have found that i.e. public regulation such as license and authorisation schemes, internal self-regulation among competing employers, and union strength in neighbouring branches plays important roles in achieving fair conditions.

On the other hand, it is not possible to say whether or not the achieved strengthening of the Danish labour market is permanent or if it will vanish with the phase out of the East-agreement, in 2009 at the latest. It is noted that many companies covered by collective agreements, and therefore pre-approved to hire east-workers, are recently set up. Furthermore, many did not have any employees at the time they committed to a collective agreement. Question is, if these companies will remain organised after the East-agreement is phased out? And whether or not Danish unions face special difficulties in maintaining and enforcing bargaining agreements with such employers? At present, the Danish unions notes that companies with only east-workers represents more challenges than other companies.

I Denmark the preoccupation concerning pressure on Danish wages and working condition appears to have been replaced by anxiety: Will the Danish employers be able to recruit a sufficient number of employees? All parties involved seem to have recognised that Denmark needs an infusion of foreign workers. The East-agreement has not contributed to this end. Thus, it appears that east-workers have not been attracted by the decent wages and working conditions guaranteed by the agreement. Correspondingly, it seems that east-workers have not extended considerably the period they stay in Denmark in 2007 compared to 2004. And still they do not bring family members with them to Denmark in any larger number.
The report is the first in the line of 3 reports that FAOS is doing for the Danish Ministry of Employment on the theme of EU-enlargement, employment mobility and the Danish labour market.

Research paper, FAOS, Department of Sociology, University of Copenhagen, October 2007.