SOCIAL ASPECTS OF SHIP REPAIR SECTOR IN POLAND

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1 National Section of Shipbuilding Industry of Independent Self-governing Trade Union SOCIAL ASPECTS OF SHIP REPAIR SECTOR IN POLAND Mirosław Piórek Chairman of NSZZ Solidarność Gdańsk Shiprepair Yard Remontowa SA

2 Summary of ship repair yards in Poland: Gdańsk Ship Repair Yard Remontowa SA Ownership form private (since 2001) Management and employees company Employment 2300 Trade unions membership 85%

3 Summary of ship repair yards in Poland Shiprepair Yard Gryfia S.A. Ownership form State Treasury company Employment 575 Trade unions membership 83% Morska Shiprepair Yard (Świnoujście) Ownership form State Treasury company Employment 350 Trade unions membership 57%

4 Summary of ship repair yards in Poland Shiprepair Yard Nauta S.A. Ownership form State Treasury company Employment 330 Trade unions membership 85% Naval Shipyard Gdynia in bankruptcy Ownership form State Treasury company Employment 700 Trade unions membership 62%

5 Summary of ship repair yards in Poland: Total ship repair yard sector in Poland Direct employment 4200 Trade unions membership (total) 80% Subcontracting 3000 Trade unions membership (total) 5%

6 Employment aspects of ship repair sector in Poland Labour costs = above 60% of total ship repair costs!!! West Europe Change of shipyard management model outsourcing and development of subcontracting companies market with accepted standards of employment forms, social conditions, skills, health & safety and Corporate Social Responsibility (CSR) Poland Many companies save money through employment of self-employed companies and shifting labour costs to employee (often examples of self-employed forms out of Labour Code and rubbish agreements, social dumping)

7 Employment aspects of ship repair sector in Poland Collective labour agreements exist in the shipyards Lack od sectoral collective labour agreements Tri- partitie branch units often lack of dialogue Limitation of professional education and shortages of education policy in the area of achieving shipbuilding working qualifications Small amount of reskilled employees, shifting of costs of courses and trainings to the shipyards

8 Employment aspects of ship repair sector in Poland Large difference of standards and working conditions between domestic shipyards Case Gdańsk Ship Repair Yard Remontowa S.A.: Collective labour agreements applied Constant social dialogue Labour contract employment High level of social and health and safety standards Improvement of skills through organizing of courses and trainings Negative aspects of subcontracting: Employment out of Labour Code requirements Low social and Health & Safety standards Lack of collective labour agreements and working regulations Lack of possibility of consociate of employees Lack of courses and trainings

9 Internal threats employment aspects (in Poland) Lack of governement actions in order to effective ownerships transformations in ship repairing sector Many subcontracting companies do not keep required standards - increase of risks related to health & safety Increase of generation gap in shipbuilding professions due to lack of stability and difficult working conditions on repairing ships; therefore increase of reluctance of young people to attain working qualifications

10 External threats indirect impact on employment Lack of cooperation between many shipowners and shipyards (i.e. through audits) in order to assure minimal social and H&S standards (pressure on service costs decrease) New IMO and EU regulations regarding SO 2 emission by ships and enforcement new rules starting from only on ECA s waters (Baltic, North Sea and La Manche channel): did not bring modernizations of ships in order to adapt fleet to above mentioned rules and therefore did not generate more orders for the shipyards may cause breach of competitive balance through favoritism of the shipyards located in the Mediterranean Sea

11 Other internal threats regarding employees Movement of employees of ship repair sector from Poland to other countries of the European Union due to higher wages Difficulties in obtaining state aid support approved by EC due to lack of financial resources in Polish government budget for that purpose

12 Sector opportunities Ownership transformations of ship repair yards in Poland which will stabilize shiprepairing labour market Implementation of transition periods in Europe for use of fuel with reduced content of SO 2 in ECA s (chance for shipowners but also for shipyards) Implementation of European working standard for all companies operating on Polish ship repair and conversion market Implementation of regulations encouraging European shipowners to increase level of repairs of their fleet in the European shipyards

13 National Section of Shipbuilding Industry of Independent Self-governing Trade Union Thankyoufor attention Mirosław Piórek Chairman of NSZZ Solidarność Gdańsk Shiprepair Yard Remontowa SA