The state sector as part of the public sector labour market
The state sector comprises approximately 160,000 employees. The entire public sector comprises approximately 750,000 employees, corresponding to a third of the Danish labour market.
The public sector comprises:
- The state sector, which is in charge of tasks at central level (including central administration, the defence, the police and universities),
- The counties, which are in charge of tasks at regional level (including hospitals and the upper secondary school area)
- The municipalities, which are in charge of tasks at local level (including primary and lower secondary schools, child care and care for the elderly)
The City of Copenhagen and the Municipality of Frederiksberg have a special status as these municipalities are in charge of both regional and local government tasks. In the metropolitan area, the Copenhagen Hospital Corporation is in charge of the management of hospitals.
The State Employer's Authority in the Ministry of Finance is the central employer in the central government area. In the remainder of the public area, the employer's interests are safeguarded by Local Government Denmark, the Association of County Councils in Denmark, the City of Copenhagen, the Municipality of Frederiksberg and the Copenhagen Hospital Corporation.
Within a few years, a major reform of the Danish public sector structure will be implemented. In addition to task-related changes, the reform will, among other things, imply a reduction in the number of regional and local government units. This may prove important to the ways in which the protection of the public sector's employers' interests will be organised in future.
Tasks and organisation
The tasks of the state sector mean that personnel are primarily broken down by three main areas, namely
- teaching, research and culture
- the defence, police and the legal system
- administration
In addition, there are transport sector personnel (DSB and Rail Net Denmark).
The composition of central government personnel reflects the composition of tasks in the state sector. The major personnel groups are academic staff, office staff, internally trained police and defence staff, skilled labour etc as well as teachers.
Figure 1: Personnel groups in the state sector (2002)
The size of the individual ministerial remits varies a great deal, and so may the organisation of them. In addition to a department, most ministries include one or more government agencies. Moreover, a number of institutions are associated with the individual ministerial areas.
The Ministry of Finance (State Employer's Authority) as employer
The State Employer's Authority was set up in 2000 and is part of the Ministry of Finance.
The State Employer's Authority carries out the function of central government employer. This entails the prescription and interpretation of rules in the area of personnel, and the tasks of concluding collective agreements and other agreements regarding pay and employment conditions.
The State Employer's Authority provides ministries and government agencies with general as well as specific advice on personnel-related matters. Furthermore, the Authority cooperates on an ongoing basis with the employee organisations, i.a. in connection with collective bargaining, when drawing up joint guidelines etc.
The State Employer's Authority wishes to promote the development of effective and attractive jobs in the state sector and aims strategically to ensure:
- flexible terms of employment to be applied in a targeted manner
- a sound pay development and targeted application of pay
- professional management and competent employees.
Staff organisations in the state area
The majority of those working in central government are employed under a collective agreement or as civil servants. They are comprised by the collective bargaining competence of the central organisations. Each of the central organisations represents a number of associated employee organisations.
The central organisations have established a joint collective bargaining committee, The Central Organisations' Joint Committee (CFU).
Figure 2: Overview of the central organisations in the state area
A few organisations, representing 2-3 per cent of state employees are not included in the above organisations.
Cooperation between the State Employer's Authority and the staff organisations
In accordance with the Danish collective bargaining model, framework agreements and general issues regarding pay and employment terms are negotiated between the Ministry of Finance (State Employer's Authority) and the CFU in connection with the collective bargaining, which typically takes place every third year.
Collective agreements fixing pay and employment terms for the various personnel groups in central government are concluded between the Ministry of Finance (State Employer's Authority) and the individual employee organisations.
In the periods between the collective bargaining, the State Employer's Authority and the CFU cooperate, on an ongoing basis, on various projects of mutual interest. They include, for example, the organisation of theme days, the publication of joint guidelines on general codes, discussions of EU issues, the launch of surveys etc.
Employee participation
The management of state sector workplaces has the right to manage and distribute work.
The development of workplaces in central government depends, however, to a very high degree on employee participation as well as on dialogue and cooperation both in formal and informal cooperation fora at the workplace.
In all state sector workplaces with a minimum of 25 employees, a joint consultation committee has been set up. In minor places of work, cooperation is based on the same principles, but without a formally established joint consultation committee.
It is the task of the joint consultation committee to determine the framework for and develop cooperation everywhere within the organisation. The joint consultation committee may, therefore, be seen as the forum that is to follow up on and ensure that the necessary ongoing communication and dialogue between management and staff are actually realised.
The joint consultation committee is the natural forum for discussions between management and staff on the development and future of the workplace. A number of the problems and questions that relate to the organisation of work, working conditions and personnel policy are officially assigned to this forum.
The institution's aims and objectives, strategies, competence development and linkage to the personnel policy are the core aspects of the discussions that are to be conducted on the joint consultation committee. Expectations are that these discussions will lead to a consensus. In case of disagreement, management will make the necessary decisions in the area.
The number of places on the joint consultation committee is subject to local agreement, and the aim is for the joint consultation committee to be as representative as possible. The number of members cannot, in general, exceed seven management representatives and seven employee representatives. The manager of the institution is chairman of the joint consultation committee. The employee representatives elect the deputy chairman.
Representatives of employees' organisations
At the individual institution, there are representatives of employees' organisations, provided there are five or more employees in accordance with the collective agreement/organisational agreement in question.
The employees, for the purpose of, among other things, safeguarding their interests in relation to management, elect representatives of employees' organisations. Furthermore, the representative of an employees' organisation is to a certain extent involved in local pay negotiations on behalf of the organisation, and acts in general as the link between management on the one hand and the employees and the organisation on the other.
Due to their particularly exposed position, representatives of employees' organisations are in need of special protection against unfair dismissal and transfer.
Therefore, special procedural rules apply in connection with the dismissal and transfer of these representatives, and there must be compelling reasons for the dismissal of a representative of an employees' organisation to be deemed fair.
The State Employer's Authority in an EU context
Decisions taken at EU level impact on the Danish labour market. As one of the labour market parties, the State Employer's Authority is a member of various committees and European organisations through which it is possible to gain influence on the European decision-making process.
In connection with the implementation of EU directives etc, the State Employer's Authority seeks to ensure that both processes and modes of implementation, to the widest extent possible, respect the competence of national labour market parties to determine pay and employment terms.
Together with other public sector employers in Denmark, the State Employer's Authority is a member of the CEEP, which is recognised by the Commission as a European social partner.
The State Employer's Authority participates, furthermore, in unofficial European cooperation regarding public administration in EU Member States, known as the European Public Administration Network. The objective of this cooperation is to exchange ideas and experience as well as to develop common activities and tools to contribute to greater effectiveness and better performance of tasks in the public sectors of the Member States. The State Employer's Authority is particularly involved in the efforts of the network concerning Human Resources Management.
