IV‑ Substantive Issues – Government Role
•Social security based on legislation, not negotiation
•Fringes and legally required benefits add about 70% to direct wage costs
–Paid leave
–Some fringes
–Growth of such legislation in areas of safety, work environment, etc.
•Union security agreements illegal
Social security based on legislation, not negotiation
2000 Unions proposed lowering retirement age from 65 to 60
Government didn’t agree but did allow parties to negotiate
Agreements with some major companies on “phased retirement” in which pay is reduced by 30% at age 57 but employees work full-time.  However, they stop coming to work at 60 but continue to be paid until they retire officially at 63.  Hoped this would provide more jobs to younger workers

Some fringes
Pensions
Unemployment compensation (68% salary for first year)
Retraining
Sick pay = 100% wages