EU AgriTechMap en

E UROPEAN M AP
AGRICULTURAL
MACHINERY
AN
EMPLOYEE PERSPECTIVE
With financial support of the European Commission, DG EMPL
European Map Agricultural Machinery An Employee Perspective

Results report of the European Employee Network Agricultural Machinery project,
supported by the EU Commission budget line 04.03.03.03 Information, Consultation and
Participation of Representatives of Undertakings (Project Ref. Nr. VS/2009/0351)
Brussels, August 2010
Project partners
Pro-Ge, GPA-djp (Austria)
ACV-CSC Metea, ABV Metaal (Belgium)
OS Kovo (Czech Republic)
Metalli (Finland)
FTM-CGT, FO Metaux (France)
IG Metall (Germany)
VASAS (Hungary)
FIOM-CGIL (Italy)
NSZZ Solidarnosc (Poland)
MCA-UGT, FM de CC.OO (Spain)
Editor
European Metalworkers Federation EMF
Boulevard du Rue Albert II 5/10
International Trade Union House
1010 Brussels
Belgium
Elaboration of this report
Wilke, Maack and Partner
Schaarsteinwegsbrcke 2
20459 Hamburg
Germany
Preface
This project already has a relatively long history. Ten years ago a group of shop stewards
active in the German agricultural machinery sector took the initiative to organise a
sector-level meeting, thereby going beyond the traditional company-level boundaries.
This shop steward-led action proved to be very effective and indeed its success did not
go unnoticed by the stewards union.
But things have profoundly changed since then. The dynamics behind this company-level
initiative have triggered continuous enlargement of the project and in no time at all
Austrian, Belgian and Czech representatives had jumped on board and began
participating in meetings. Coordination and exchange of information has become a real
modus-operandi in the agricultural machinery sector. IG Metall required no convincing
that the group of trade union activists was carrying out an innovative project, and
therefore supported them efficiently.
Rapidly it became clear that exchange and cooperation at national level were not
enough; the mesh linking up workers and trade union representatives in this particular
industry in the neighbouring EU Member States was such that only joint strategies would
pay off. A first project was run by IG Metall in 2007 - 2008 and was highly appreciated
by partners in Poland, Finland, Spain and Hungary who joined the existing network
involving Germany, Austria, Czech Republic and Belgium.
The first year of the project proved a huge success not least thanks to enthusiastic
participants who made the project their own, demonstrating that joint approaches to
problems encountered in a company with an active trade union reinforced the workers
position while strengthening their resolve to resist against the various attempts levelled
at them to accept concessions on wages and working conditions.
This report is based on the second year of the project which was run by the EMF. The
approach was broadened to make it genuinely European and integrated into the policy of
the EMF's Mechanical Engineering Sectoral Committee. Throughout this year, the focus
lay in particular on stronger involvement of Eastern European partners which turned out
to be a fruitful initiative bearing key findings:
1. Eastern European workers still have to fight in their daily work for even the most
fundamental workers rights while in the old EU Member States the labour
standards are more developed.
2. While production and product prices between East/West are comparable, it is not
the case with regards to wage levels. They clearly need to rise in the new Member
States.
3. The companies in the agricultural machinery sector, just like in the global
mechanical engineering sector, are mainly small and medium sized, which has
various implications for the workers in these sectors. Company-level
representation is in most cases limited to national networks. Establishing
international contacts is difficult, mainly due to the lack of European Works
Councils (due to threshold limits). The problems they encounter, however, are
similar to those in multinational companies.
Another positive outcome of this project is that it has confirmed the EMFs approach
(advocated by its Mechanical Engineering committee) is the right one: a gradual
exploration of the sector via sub-sector projects. Without such an approach we would not
have realised how crucial it is - when dealing with the agricultural machinery sector - to
examine also the EU Common Agricultural Policy (CAP) and to consider farmers
associations and trade unions as key stakeholders acting as representatives of the
customers sector.
The success of this project would not have been possible without the energetic
participation of the shop stewards, Works Councils and trade union representatives from
the companies in the various meetings.
I would like to use this opportunity to thank all the colleagues of the EMF Agricultural
Machinery Network who have made key contributions to exemplary work in one of the
industries where the EMF seeks to defend workers rights.
Peter Scherrer, EMF General Secretary
August 2010
Contents
Part I: Overviews
Agricultural Machinery in Europe
Impact of the 2008 crisis
Global trends and prospects
10
Trade union and employee initiatives
11
Part II: Countries
15
Austria
15
Belgium
16
Czech Republic
18
Finland
20
France
22
Germany
25
Hungary
34
Italy
36
Poland
38
Spain
40
Part III: Further information and documents
42
EU and national levels - information and resources
42
Brussels Declaration on Agricultural Machinery
44
Part I: Overviews
Agricultural machinery in Europe
Sector profile
The manufacturing of agricultural machinery is a part of the mechanical engineering
industry which is with about 24,500 companies and more than 2.6 million directly
employed persons by far the biggest industry sector in Europe. Mechanical engineering
also is main productivity and innovation driving sector in European manufacturing and
main contributor to export and added-value within the EU. With 36% of the world
market, Europe is the world's largest producer and exporter of machineries. The
competitiveness of the industry relies inter alia on excellent, innovative products, knowhow and skills and the ability to comply with customers' wishes.
Mechanical Engineering is a very wide and diverse sector. Apart from agricultural and
forestry machinery it covers machinery and equipment, machinery for the production and
use of mechanical power, machine tools and other special purpose machinery.
The agricultural machinery sector is split up in two major sub-sectors and covers quite a
diverse range of different purposes: The manufacture of agricultural tractors and the
manufacture of agricultural and forestry machinery (e.g. trailers, mowers, machinery for
soil preparation, planting or fertilising, harvesting or threshing machinery as well as
spraying machinery for agricultural use and machinery for use in food productions such
as milking machines, poultry-keeping machines, equipment for preparing fodder, sorting
of grading eggs, fruit etc.)
Europe plays a dominant role in the global production of agricultural machinery as the
following table and graph illustrates: Nearly 40% of the global production output of 58
billion Euros in 2009 was produced by companies within the European Union.
Global production volume of agricultural machinery
Source: CEMA based on VDMA estimations (German Engineering Federation)
The main producing countries of agricultural machinery in 2009 were Germany with a
share in global trade amounting to more than 20%, followed by the United States, Italy
and France. China in 2008 already was the fifth biggest exporter of agricultural
machinery (see chart below).
Until the global financial and economic crisis in 2008, the agricultural machinery sector
showed stable growth rates in regard to good economic conditions and significant growth
in demand, particularly in Eastern Europe and Asia.
Global trade in agricultural machinery in 2008
Source: VDMA
According to information from the German Engineering Federation VDMA the global
turnover of agricultural machinery producers in 2008 was 18% higher than in the
previous year. Also the output of European producers showed a steady increase up to
2008: Production output in 2008 increased by 16% against the previous year.
Production volume of agricultural machinery in the European Union (billion
Euro)
Source: VDMA, based on own calculations and Eurostat

According to Eurostat the agricultural machinery sector in 2007 employed nearly 220.000
persons in around 22.000 enterprises (see table below). The most important producers of
agricultural machinery are Germany with a share in overall European employment in
agricultural machinery of around 20%, Italy (16.6%) and France (12.8%) followed by
Poland with about 9%.
However, it should be mentioned here, that European and national figures on

employment in agricultural machinery are differing significantly: For example, the
workforce in agricultural machinery in Germany according to Eurostat in 2007 has been
about 45.000 employed persons, the German statistical office for the same year only
reports around 24.500 regular employees.
Employment and enterprises of agricultural machinery in the European Union
2007
Country
Employment
total
Employment
% share
Enterprises
Belgium
4.224
1,9
384
Bulgaria
1.792
0.8
100
Czech Republic
8.659
4.0
413
Denmark
5.107
2.3
490
Germany
45.227
20.8
2.869
Estonia
744
0.3
31
Ireland
1.021
0.5
52
Greece
2811
1.3
1.299
Spain
10.347
4.8
1.144
France
27.350
12.8
4.206
Italy
36.083
16.6
4.145
Cyprus
101
0.0
55
Latvia
1.048
0.5
59
974
0.4
112
0.0
6.066
2.8
471
Lithuania
Luxembourg
Hungary
Netherlands
10.108
4.6
985
Austria
7.429
3.4
510
Poland
19.431
8.9
2.176
Portugal
2.058
0.9
326
Romania
4.328
2.0
88
Slovenia
1.516
1.631
0.7
0.7
237
Slovakia
Finland
4.962
2.3
707
Sweden
4.911
2.3
702
4.5
1.095
United Kingdom
9.693
Source: Eurostat, Structural Business Statistics
48
European agricultural machinery traditionally is characterised by a strong position of

small and medium sized companies as well as a wide variety of products. The industry is
serving both specialized and small scale agricultural purposes as well as large scale
agriculture.
On the other hand, Europe agricultural machinery production is characterised by a
growing transnational division of labour with production facilities of many larger
producers spread over different countries. This is for example illustrated by the European
production of tractors as the following graph is illustrating which is illustrating the
locations of main tractor producers as well as major suppliers in Europe as of 2005.
European locations of tractor production
Source: Finnish Metalworkers Trade Union Metalli

As the map illustrates, Central and Eastern Europe today is an important location of
agricultural machinery production sites of multinational companies such as CNH or Claas
and playing a major role as a supplier of components (Linamar in Hungary). At the same
time many local producers have been closed down and disappeared from the market
after the transition to the market economy apart from a few well known branches such as
the Czech tractor producer Zetor or Ursus in Poland.
Impact of the 2008 crisis

After successful years, the EU agricultural industry faced the consequences of the
financial and economic crisis although, if compared to other machinery sectors, the
decrease in production was less pronounced. According to the German engineering
federation VDMA the European producers of agricultural machinery experienced an
overall decrease in turnover in 2009 against the previous year of about 15%.
Production and market development of European agricultural machinery
Source: CEMA, based on VDMA and Eurostat
However, the effects of the crisis in different countries varied significantly as the
following table on the development of production and markets in agricultural tractors
illustrates.
Though the table does not include data on crisis-related effects in Central and Eastern
Europe, this region also has been affected rather badly by the crisis according to reports
of national representatives. Strong slumps in demand and production as well as often
sharp increase in unemployment have resulted from the strong dependency on Eastern
European markets (e.g. Russia, Ukraine) and on multinational companies as suppliers.
Development of the Western European tractor markets
Source: CEMA Statistical Group, VDMA
Global trends and prospects

Agricultural machinery and its shape in the global scale as well as in Europe is
characterised by a number of trends in the context of globalization, agricultural
production, technological development and in other fields. Major challenges are resulting
for example from the question of global food production in the light of population growth,
climate change or the need to develop new energy resources, in particular renewable
energy production. This directly is related to technological processes and innovations new and more efficient methods of agricultural machinery (e.g. in the field of soil
cultivation, plant protection, yield technology, energy efficiency) are needed.
In particular the European producers of agricultural machinery will also be effected by
trends in European legislation and frameworks, especially in the field of the Common
European Agricultural Policy (decreasing financial resources, cut in direct payments,
sustainability as a criteria of support, abolition of export subsidies etc.) and
environmental objectives (reduction of emissions, energy efficiency, Ecodesign, soil
protection, water pollution, reduction in the use of pesticides and fertilizers etc.).
According to sector federations such as the CEMA (Comit Europen des groupements de
constructeurs de Maschines Agricoles) these developments will influence agricultural
machinery in two quite different directions: They will foster large high-yield commodity
farming and at the same time will strengthen specialized smaller scale farming.
With regard to structural change in general, sector representatives are expecting quite
different trends in various European and global regions:
10
Western Europe: Replacement purchase will be important in the context of managing

structural change and the needs arising from more energy efficiency and other
requirements.
Central Europe: Increasing degree of mechanisation, large-scale machinery equipment
and structural change.
Eastern Europe: Extension of agricultural areas, modernisation of machinery parks.
South Americas: Increasing market and demand for machineries, import barriers.
Asia: Increasing role of local producers for basic technology and equipment, hightechnology niches and strong demand in basic machinery for a broad range of purposes.
In particular the emergences of new competitors on the global market such as producers
in India and China have been a remarkable trend in recent years: India today is
producing more agricultural tractors than every other country in the world (approx. 35%)
and the Indian government is strongly supporting the development of the national
production of agricultural machinery. Similar developments have been observed in China
where the local market is dominated by national producers which also play an increasing
role as exporters of agricultural machinery.
Faced by strong import barriers (not only in India and China but also in Russia and many
Southern American countries) European producers are forced to go global and develop
production facilities abroad in order to participate in new growth markets.
As reported during meetings of the European Employee Network Agricultural Machinery,
the Central and Eastern European Union member states are facing some specific
challenges and problems that have been summarized by representatives from Hungary,
the Czech Republic and Poland as follows:
o
Increasing role of precarious work contracts, e.g. contract labour
Attacks of employers on employee and trade unions rights
Negative social effects of public policy reforms, e.g. in the field of pensions, social
insurance, health protection
Growing lack of skilled labour and structural weaknesses of the vocational

education and training system

Because it penetrates all of the European productive activities, the European mechanical
engineering industries are sectors of strategic importance for European manufacturing
and services. This is also illustrated by the strong role of the mechanical engineering
sector for the industrial policy orientation and practice of the European Metalworkers
Federation EMF as well as for the social dialogue between EMF and CEEMET.
Following the successful cooperation between EMF and CEEMET (Council of European
Employers of the Metal, Engineering and Technology-Based Industries) both
organisations agreed to set up a permanent social dialogue structure. In January 2010 a
sectoral social dialogue committee was formally established. Through their dialogue both
organisations seek to contribute to creating and maintaining an environment that ensures
a competitive manufacturing sector able to deliver high quality and sustainable
employment. Equipping workforces and companies in the metal sectors to meet the
challenges arising from globalization and the need to cope with ever faster technological
and organizational changes is of vital importance in this context.
In 2009 the EMF established a Mechanical Engineering Committee covering the
agricultural machinery as well as other sub-sectors of mechanical engineering.
11
The EMF Mechanical Engineering Committee in May 2009 has issued a position paper
summarizing major demands of trade unions in reaction to the global financial and
economic crisis stressing that there is a need for strategies directed towards forwardlooking solutions by means of more sustainable programmes, avoiding the present partial
responses to tackle the industry's difficulties and concentrating on measures which result
in a worsening of labour and working conditions and a growth in precarious forms of
work. 1
The European Employee Network Agricultural Machinery, which has already been
initiated in 2007 by German works councils in the sector together with the German IG
Metall, is coordinated by the EMF under the umbrella of the Mechanical Engineering
Committee since 2009. The agricultural machinery network also has served as a model
for similar initiatives that have recently been established in other sub-sectors. An
example are wind-mills and (currently in planning) the construction machinery sector.
The project brings together metalworkers unions and employee representatives of major
producers in ten European countries. As an enlargement of network building, new
partners from Finland, France, Belgium and Italy have been integrated into the network.
A particular focus has been set on new EU member states, from which Poland, Hungary
and the Czech Republic are actively involved.
Partners of the European Employee Network Agricultural Machinery
Trade Unions
Company employee representatives
Source: European Employee Network Agricultural Machinery

In a number of transnational activities project partners noticed very soon that topics of
interest were the same and that west, east, north and south were not far away from each
other. Since 2007 and with financial support by the EU Commission, the EMF and the IG
Metall as well as the German Works Council Network Agricultural Machinery, the
European Employee Network Agricultural Machinery has deepened the cooperation of
employee representatives and trade unions throughout Europe.
EMF: Position paper of the EMF Mechanical Engineering Committee on the economic crisis, Brussels, May
2009.
12
Website of the European Employee Network Agricultural Machinery
http://netkey40.igmetall.de/homepages/netzwerk-landtechnik-en/startseite.html
In 2007 the network started with major companies in the agricultural machinery sector of
Germany, Austria, Spain, the Czech Republic, Poland and Hungary. Today, the project
involves more than 30 employee representatives from ten European countries.
Project partners have carried out a number of activities supporting the exchange of
information, knowledge and experience as well as developing joint positions and strategic
orientations for a strong agricultural machinery sector in Europe. Important activities in
this context were for example the organisation of transnational workshops (Vienna in
April 2008; Frankfurt a. M. in September 2009; Madrid in December 2009; Prague in
February 2010) focussing on topics such as working conditions, restructuring and effects
of the global economic and financial crisis. Furthermore, the network organised country
and company visits and other activities of exchange between network partners.
As a further major activity, the employee network is running a web-based information
and resource centre in German and English language which resembles documentation of
sector and company information, profiles of national and sector contexts as well as
documentations of network activities.
The European Employee Network Agricultural Machinery already in September 2008 has
issued a joint statement on common positions and demands of trade unions and
employee company representatives in the sector, the Frankfurt Statement.
In June 2010 the EMF together with the network partners organized the Future Forum
Agricultural Machinery 2020 presenting major results of the network activities so far and
addressing major challenges of the future of agricultural machinery in Europe. Employee
representatives from all over Europe as well as representatives of the EU Commission
and the industrial federation CEMA exchanged their views points on the agricultural
13
machinery in a global context, the effects of the crisis and challenges for the future. The
Forum ended with the publication of a joint position statement on a strong and
sustainable agricultural machinery sector in Europe. The declaration summarizes major
common experiences of employee representatives and trade unions in the sector and
draws a number of results and crucial demands on the future of the industry, including
on the role of social dialogue and the improvement of the quality of labor and work in
agricultural machinery. 2
See the Brussels Declaration in Part III
14
Part II: Countries

Austria
Country facts Austria
Population
8 319 000
GDP per capita (2009, US Dollar)
38,839
Employees in Agricultural Machinery (2005)
5 900
Trade unions in the EU Agri-Tech Network
Pro-Ge, GPA-djp
Proportion of employees in unions (general)
32%
Workplace representation
Works council
Main level of collective bargaining
Industry
Collective bargaining coverage
98%

Profile of agricultural machinery
In 2005, around 5.900 people were employed in 463 companies of the agricultural
machinery industry. These numbers indicate both, a moderate rise in the number of
companies and in the number of employees (2000: 413 companies with 5.600
employees).
Within the agricultural machinery industry, 7 companies (2000: 9) with around 1.000
employees were engaged in the production of agricultural tractors.
Total turnover in the agricultural machinery industry was around 1.4 billion Euros, tractor
production accounting for around 1/3. Since 2003, sales declined slightly but sales are
still higher than in 2000.
Out of the 460 companies, only 7 have got more than 1.000 employees and only 20 have
got more than 100 employees. 290 companies employ less than 5 people.
Map of agricultural machinery in Austria
Source: Pro-Ge
15
Main export destinations are (descending order depending on importance) Germany,

France, Switzerland, Italy, Hungary and Denmark.
Main product groups and producers of agricultural machinery
Products
Main companies
Tractors
CNH-Steyr (410 employees)

Lindner
Mountain agriculture
Reformwerke Welz (370

employees)
Machinery for soil cultivation
Pttinger (1197 employees)

Regent
Vogel & Noot
Agricultural trailers
Brantner
Kirchner & Shne
Front loader
Hydrac (100 employees)

Schauer (270 employees)
Source: Pro-Ge trade union

Labour relations, collective bargaining and trade union organization
The Austrian companies in the agricultural engineering industry form an independent
professional committee in the professional association Machines and Metal industry
(Maschinen & Metallwaren Industrie) FMMI. Around 66 companies are part of this
industrial sector group. Their product range covers agricultural machinery and
agricultural equipment.
Within the economic chamber of Austria (WK), tractors belong to the professional
association of the automotive industry.
Belgium
Country facts Belgium
Population
10 667 000
35,422
4,787
ABVV-Metaal, ACV-CSC METEA
54 %
Union and works council (union

dominates)
National
96 %
16

In 2008, 4.787 people were employed in 13 companies of the Belgian agricultural
machinery industry. These numbers indicate a significant rise in employment which took
place in recent years. Whereas the number of employees accounted for 3.379 in 2004,
figures have increased by 23 % until 2008. During this interval one company (Boumatic
Gascoigne Melotte) has entered the Belgian sector in 2005 and currently employs 114
(2008) workers.
The Belgian agricultural machinery industry is dominated by two large companies: CNH
Belgium and New Holland Tractors. Both companies have shown increasing employment
figures between 2004 and 2008.
Total turnover in the agricultural machinery industry was around 1.4 billion Euros, tractor
production accounting for around 1/3. Since 2003, sales declined slightly but sales are
still higher than in 2000.
The majority of companies (10 from 13) producing agricultural machinery in Belgium are
small and medium sized companies with less than 200 employees. One exception is the
company Packo Inox with 264 employees. Two companies account for more than 1.000
employees, with CNH Belgium employing 2.398 and New Holland tractors employing
1.073 workers in 2008. The smallest company is Delvano with 58 employees in 2008.
Main product groups and producers of agricultural machinery
Products
Main companies
Combines, harvesters and

balers
CNH Zedelgem
Transmissions for tractors
CNH Antwerp
2,398
New Holland Antwerp
PACKO Inox
ROXELL
Petersime
AVR
Agricultural and forestry

machinery
Employee
s
Boumatic Gascoigne Melotte

Jaegerson
Delvano
SOC. De Constr. Industr. De
Machines Agricoles
Constructiewerkhuizen Robert
Dewulf
STEEL Service Center Bree
1073
264
166
156
64
114
90
58
150
71
76
Source: ACV-CSC trade union

Labour relations and social dialogue
The two largest Belgium trade unions are represented in the companies of the
agricultural engineering industry, here in particular the ABVV-Metaal and the ACVMETEA. Trade unions in Belgium are divided between competing confederations, which
have clear political traditions. The two largest CSC/ACV and the ABVV are linked to the
Christian and socialist movements respectively. The third and smallest trade union is the
liberal ACLVB.
Collective agreements are first negotiated at the national level and then at the sectoral
and company level. In Belgium, there are structures of workplace representation at the
17
company level for employees and trade unionists. The key body is the union delegation
which negotiates key issues with management. The works council has extensive
information and consultation rights.
Czech Republic
Country facts Czech Republic
Population
10 381 000
24,093
Employees in Agricultural Machinery

(2008)
7,514 (NACE 29.3)
Trade unions in the EU Agri-Tech

Network
OS Kovo
Proportion of employees in unions

(general)
22%
Trade union or works council
Company
44%

In 2006, the total number of employees in the agricultural engineering industry of the
Czech Republic was 9.400. The employment figures have demonstrated a significant
decline of nearly 1.800 jobs throughout the last years. In comparison, 11.200 people
were employed in the industry in 2000; in 2005 the total number of employees was
under 8.400. Employment in the agricultural engineering industry accounts for 1,3 % of
the Czech Republics total workforce.
13 companies producing agricultural machinery are represented in the trade union OS
Kovo. These companies vary according to their size and number of employees from small
to medium sized enterprises and large companies employing more than 1.400 people.
The company Zetor has a workforce of 1.460 and is the major manufacturer of tractors in
the Czech Republic, whereas the other 9 companies producing agricultural and forestry
machinery have a summed up workforce of 2.463.
The agricultural engineering industry has demonstrated a visible financial increase since
2000. Production output and number of imports has doubled and the export numbers has
even tripled. Major export countries (according to importance) are Germany, France,
Slovakia, Italy and Belgium.
18
Main product groups and companies

Products
Main companies
Tractors
Zetor a.s
Agricultural and forestry

machinery
Reloa Tech s.r.o.

Strojirna Loucna a.s.
AGRA Bohemia a.s.
AGROMILK Pelhimov a.s.
AGROSTROJ Pelhimov a.s.
Humpoleck strojrny Humpolec
PEZAG a.s.
SECO Goup a.s.
Source: OS KOVO
Trade Unions, collective bargaining and labour relations

The Czech Republics level of union density is 22 % of the entire workforce approximately 900,000 trade unionists. The largest trade union confederation is CMKOS,
the Czech successor of the Czechoslovak union confederation CS KOS, with 611.000
members (2004). Next largest confederations are the ASO (170.000 members), the KUK
(59.000 members), the OSCMS (17.000 members), the KOK (9.000 members) and few
independent trade unions.
Within the largest trade union confederation CMKOS, 33 separate affiliated member
unions are broadly divided according to their industries. Here, the largest organisation is
the metalworkers union, OS KOVO, with around 200.000 members. OS Kovo is
responsible for the agricultural engineering industry and project partner in the EU
Employee Network Agricultural Machinery.
The main level of collective bargaining in the Czech Republic is the company/organisation
level. The collective bargaining coverage has dropped enormously during recent years.
The proportion of employees covered by bargaining in 2004 is less than half of the
number in 1995. In the majority of companies collective bargaining does not take place
at all.
Industry level collective agreements can be extended to other employers in the same
industry, even if they are not members of the employers association which signed the
agreement.
19
Finland
Country facts Finland
Population
5 300 000
33,556
5 063*
Finnish
Metalworkers' Union
(Metalli)
74%
Union
Industry
90%

In 2008, 5,063 people were employed in the manufacture of agricultural and forestry
machinery in Finland. This indicates a significant increase of 23% since the year 2000 in
which 3.871 people were employed. Between 2000 and 2008, employment in this sector
has increased steadily. Split according to the NACE classification 29.31 (agricultural
tractors) and 29.32 (agricultural and forest machinery), it can be concluded that
employment in the manufacture of agricultural and forest machinery, accounting for
around of jobs in this sector, has grown steadily in the last eight years while
employment in the manufacture of agricultural tractors, representing a share of around
of jobs, has seen a slight decline in the years 2004 and 2006 and a peak in the year
2005. The employment curve in the agricultural tractors industry has increased after
2006 by 52 to 1030 in 2008. Employment in the agricultural and forest machinery has
increased by 500 between 2006 and 2008 and reached 4.033 people.
In the same time, from 2000 to 2008, total turnover in the manufacture of agricultural
tractors and other agricultural machinery has more than doubled from 700.4 million
Euros in 2000 to almost 1.6 billion Euros in 2008. After 2006, the total turnover has
increased from around 1.4 billion Euros to 1.6 billion Euros in 2008. The production value
increased in a similar way, whereas agricultural machinery represents almost two thirds
of total turnover and production value in 2008 and agricultural tractors one third. The
production value in the agricultural and forest machinery sector even grew by 130 %
from 2000 to 2008.
Export turnovers for agricultural machinery and agricultural tractors have more than
doubled from about 400 million Euros in 2000 to 1 billion Euros in 2008.
In agricultural machinery, the 2006 export turnover accounted for almost 65% of total
turnover, whereas the export turnovers for agricultural tractors represented almost 75%
of total turnover in this area.
The main export destinations lie in the EU-25 area, accounting for almost 75% of total
exports in agricultural machinery and tractors in 2008.
20
Main product groups and companies

Products
Main companies
Employees (2008)
Tractors
Valtra
998
Forest machinery
John Deere Forestry
740
Ponsse
Diesel engines
AGCO Sisu Power
Combine harvesters / forest

machinery
Sampo Rosenlew
1044
743
571
Source: Finnish Metalworkers Trade Union Metalli

Restructuring of the agricultural engineering sector
As in other countries, it can be noted that big multinational corporations dominate the
sector. In Finland, the ownership of Valtra, Sisu-Diesel and John Deere (ex Timberjack)
has changed during the last 6 years. About 80% of all employees in the manufacture of
agricultural tractors and machinery work in one of the five large companies listed in the
table above.
Mergers and Acquisitions: In 2004, Agco acquired Valtra and Sisu Diesel. Deere &
Company (John Deere) had acquired the Timberjack group in 2000.
Main challenges and problems from the trade unions and works councils point of view
are with regard to agricultural machinery:
Continuing restructuring in agriculture resulting in bigger but fewer farms
M&As in the agricultural machinery sector
Declining trend for agricultural tractor sales in the medium term in the EU
In the forest machinery sector the following challenges exist:
New market areas, e.g. investments in Russia, Asia and Latin America
Special importance of Russia for the Finnish forest machinery enterprises
R&D investments due to new requirements / environmental issues and changing

climate conditions
The impact of the global financial crisis

Companies in the Finish agricultural sector have experienced the negative impact of the
global financial crisis. All of the 5 leading companies have been affected. The company
Valtra (tractors) has experiences a decrease in its tractor production from 11.000 (2008)
to 7.200 in 2009 and a lay-off of all workers for few weeks. The manufacturing
companies in the forest machinery sector were seriously affected as the drop in turnover
by more than 50 % demonstrated. The largest companies Ponsee and John Deere
temporarily laid off almost all employees in 2009. According to first estimations, the year
2010 has already shown a slight increase of the production volume of both companies.
Trade Unions, labour relations and collective bargaining
Trade union membership in the main companies of the industry is very high with around
80% of employees in unions. Individual unions are members of three main national
confederations: SAK, STTK and AKAVA.
21
Collective bargaining in Finland largely takes place on a national level through national
level agreements covering pay and working conditions. The agricultural and forest
machinery sector is included in the metal industry. The present metal workers union
collective agreement has been negotiated in autumn 2009. This collective agreement is
valid from October 2009 to October 2012 and covers 120.000 blue collar employees.
Another aspect of the agreement is that it improves the employment conditions of
temporary agency workers.
In recent years, additional possibilities for local bargaining have been included into
collective agreements, e.g. concerning the flexibilisation of working hours or the
development of pay systems.
On a company level, apart from union representatives, job stewards and health and
safety representatives represent employees interests in all main companies. In
companies with 150 or more workers, employees have the right to board level
representation.
The main challenges for Finnish trade unions concern labour conditions and labour
relations. Demands on industrial policy are:
Investments for training of personnel
Improving production and productivity
R&D investments
The Finnish Metal Workers Union is a partner of the TRIO-programme which was
launched in 2004 in order to improve the production network in the Finnish technology
industry.
France
Country facts France
Population
63 983 000
33,679

(2005)
22 000

Network
Federation des Travailleurs de la

Metallurgie (FTM CGT)

(general)
8%
Union and works council
Industry and company
93%
22

In 2006, 16.436 people were employed in the French agricultural machinery industry (in
companies with more than 20 employees), less than in any other year since 2000. In
comparison to the year 2000 (18.625 employees) and despite increasing job creation in
the years 2001 (19.328) and 2003 (18.774) this indicates a decline of around 12% and
in comparison to the year 2005 (17.137 employees) a decline of around 4%.
Number of companies and employees in French agricultural machinery 2000
2006
Source: FTM CGT

The turnover in agricultural machinery/tractors of all companies with more than 20
employees has moved in a range between 3.5 billion and 4.1 billion (in 2004) in the
last six years. In comparison to 2004 numbers, it slightly declined towards 3.9 billion
in 2006.
The production volume of French agricultural machinery and agricultural tractors has
been on a high level and increased from 2006 to 2007 by 9.5% (11.2% tractors, 8.0%
machinery). Production of agricultural machinery represents almost twice the production
volume of agricultural tractors.
Foreign sales account for almost two thirds of the market, whereas the large French
agricultural sector accounts for the other third.
In the French market, in the year 2007 the demand for agricultural tractors increased by
16,8% compared to 2006 values. In terms of matriculations of new agricultural tractors,
the yearly number of matriculations has constantly moved around 35.000 to 42.000 for
more than 10 years. Although standard tractors still claim the highest share, the demand
for other tractors is increasing. In general, the demand is clearly moving towards highpower and high-performance tractors with the average performance of standard tractors
going up to 122 horse powers DIN in 2007 compared to 107 horse power DIN in 1999
and the average performance of narrow (wine and fruit) tractors going up from 71 to 79
horse power DIN in the same period. The situation in the market for agricultural
machinery is similar, with a decline of the market share of low-performance machinery in
favour of high-performance machinery.
Since 2008, the French agricultural machinery sector has been seriously affected by the
global economic crisis. The production volume in the first half of 2009 remained stable,
as many companies profited from orders received in late 2008. The second half 2009
indicated a sharp decline of the production volume and a low rate of received orders.
Around 60-70% of the French agricultural machinery production is exported and most of
the exports go to the EU-25 countries (more than 60%) with Germany as a leading
importer, the USA and other European countries. French exports of agricultural
machinery have increased steadily during the last years and have almost tripled in the
last 14 years, exceeding 2 billion since 2005.
At the same time, France still relies on imports in order to satisfy the demands of its
large agricultural industry. Imports have increased by 11,2% from 2.83 billion in 2006
23
to 3.15 billion in 2007. In 2007, France was importing mainly from Germany (34%),
followed by Italy (16%) and the USA (9%), several other Western European countries
with 4 to 5 % and Japan with a market share of 3%.
The result is an export deficit which is generally higher for agricultural machinery than for
agricultural tractors, but particularly obvious for combine harvesters and new high-power
tractors.
The main manufacturers of agricultural machinery located in France are, nowadays,
subsidiaries of large multi-national corporations. The number of companies with more
than 20 employees in agricultural machinery decreased from 211 in the year 2000 to 189
in 2006. Some of the main French-owned companies specialize - for example in spraying
or wine- and fruit-growing equipment.
Main companies
Company
Employe
es
Company
Employee
s
JOHN DEERE
1427
USINES CLAAS FRANCE
374
AGCO
(Massey Ferguson,
Fendt, Valtra)
1223
KUHN-HUARD
337
KUHN SA
1152
Mc CORMICK
328
CLAAS Tractor (ex

Renault Agriculture)
1012
ETS PELLENC
275
GIMA
903
BERTHOUD AGRICOLE
232
Source: FTM-CGT
Restructuring of the agricultural machinery sector
The penetration of foreign companies into the French market has increased with the
German group Claas taking over the specialist tractor manufacturer Renault Agriculture
(2003: 51%, 2006: 80%, 2008: 100%) and renaming it CLAAS Tractor.
New production sites or suppliers in low-cost countries (China, India) and the opening up
of new markets in Eastern Europe seem to be a new trend of the industry.
are:
Increasing petroleum prices
Increasing raw material prices
European Agricultural Policy
New engine standards (low level of pollution)
Increasing engine power
High quality and innovation; Increasing R&D costs
To increase production; to have low cost production
To increase working hours; Workers age and retirement
Temporary employment; Work intensification
Training, qualification, salaries
24

Trade union membership in France is relatively low with only around 5% of employees in
the private sector in trade unions. Across all economic sectors, the five main competing
representative confederations are: CGT, CFDT, FO, CFTC and CFE-CGC.
Among the various forms of employee representation is the representation through
unions, trade union delegates, works councils, employee delegates, job stewards or
health and safety representatives. Furthermore, employee representatives can be
members of the board.
The standards in companies are according to the French labour laws (code du travail) and
the metalworkers collective legislation. Special company standards are a working time of
35 hours per week, rules for employee representatives, bonuses and incentives and an
obligation for yearly bargaining of salaries and working time at industry and company
level. Overtime work is paid at a rate of 25% in addition to the normal salary.
In summer 2008, a new legislation (law on renewing social democracy and working time
reform) changing the rules of collective bargaining entered into force and challenged the
unions. It enables companies to renegotiate working times and therefore the legal
working time of 35 hours per week up to a maximum weekly working time of 48 hours as
well as the yearly working time.
Consequently, the main challenges for French trade unions at the moment are salaries,
productivity, the regulation of working time, temporary employment, training on days off
and the retirement age.
Important trade union demands are increase in salaries, hiring new workers and increase
the power of interest representations, in particular EWCs.
Germany
Country facts Germany

Population
82,218,000
34,212
28.830 (2009)
IG Metall
20%
Works council
Industry
61%
Source: Statistisches Bundesamt, OECD, Eurostat, IMF and ETUI-REHS (www.workersparticipation.eu).
25

Germany is a major producer of agricultural machinery in the European as well as in the
global context: In 2008, around 11% of the global production was made in Germany.
In 2008, the sector had a workforce of nearly 27.000 employees (in companies with
more than 50 employees) and employment figures were on the growth since 2005 after a
period of stagnation of employment 2000 until 2004.
Employment in German agricultural machinery 2000 2008
Source: IG Metall, Sector report agricultural machinery

The production output and sales figures of the agricultural machinery sector in Germany
had stagnating figures or even a slight decrease between 2000 and 2003/2004 and a
rapid rise in production output from 2004 until 2008. In 2008, the production output
showed a remarkable rise of 24 % compared to 2007 to 7.5 bn. Euro. With the global
economic crisis, this sector experienced a sharp decline in orders. Most companies
profited from the very positive order balances of the previous year 2008.
Turnover of agricultural machinery 2000 - 2008
Source: IG Metall report agricultural machinery

In particular the production of agricultural tractors demonstrated a significantly rise of
around 60 % from 2003 onwards and a rise of around 32 % of other agricultural
machinery from 2004 onwards. The production volume of tractors reached a peak with a
26
sales volume of 3.7 billion in 2007 (a rise of 17.5 % compared to 2006). Particularly
the foreign sales volume increased rapidly (+ 23 %) and has a percentage of of the
total sales volume. Also the sales volume of other agricultural machinery demonstrated
an important upward trend of 12.8 % in 2007 and reached a number of 4.9 billion .
Particularly the foreign trade increased rapidly (+ 17 %) and has a percentage of 1/3 of
the total sales volume.
Turnover of agricultural tractors production 2000 - 2008
Source: IG Metall sector report agricultural machinery

Germany in 2008 occupied the first rank in national shares in global trade with
agricultural machinery. The respective share was 20%, followed by producers in the USA
with a share in global trade of 15%, Italy with 10% and France with 7%. Other important
producers in the global scale are the UK (5% share) and Japan (4%).
In 2008, the German agricultural machinery sector exported products with a value of 5.7
billion (3.6 bn in 2006 and 4.5 bn in 2007) and imported products of 2.7 billion (plus
of 26%).
In general the European economic area is the most important market for German
producers of agricultural machinery in 2007 nearly 64% of all exports went to other EU
member states and the annual increase against the previous year was nearly 19%.
However, the rest of Europe and in particular Central and Eastern European countries are
also important export markets with Russia being the most important single country. 2007
exports to Russia increased by nearly 23% against the year before making the country
the second most important export market of German producers.
The biggest single export markets in 2007 were France with a share of 16% in overall
exports and Russia with a share of 9% followed by the USA, Great Britain, Spain, the
Netherlands, Austria, Poland, Italy and Denmark.
27
German export markets for agricultural machinery 10 biggest export markets

in 2007

Major supplying countries for agricultural machinery were Italy (18% of total imports),
France (14%), the USA (11%), Hungary and Austria (8% each) followed by the
Netherlands and the UK.
German agricultural machinery production is characterised by a relatively large number
of companies and a strong position of medium sized companies specialised on certain
product groups. However, there are also large multinational companies such as John
Deere, Agco or Kverneland have a strong market position.
These foreign investors played an important role and have taken over a number of
German companies during the 90s (Accord GmbH taken over by Kverneland 1996, Fendt
by AGCO 1997, Stoll by Freudendahl Invest A/S 1999). However, middle-sized
enterprises and family-owned companies are still the dominant actor of the industry.
There is also a trend of German medium sized and family-owned companies expansion
on a transnational scale which often is accompanies by acquisitions on other markets,
e.g. the acquisition of the Renault tractor by Claas in 2003 and is increasingly investing
in Eastern Europe.
28
Main product groups and companies in German agricultural machinery

Products
Companies
Products
Companies
Tractors
John Deere
Production of
round balers
Welger
Fendt (AgcoGroup)
Krone
Same Deutz-Fahr
Machinery for
soil cultivation
John Deere
Claas
Kverneland
Combines
Amazone-Werke
Claas
John Deere
Lemken
Raabe
Kverneland
Seeding,
planting and
fertilising
machinery
Machinery for
hay and forage
Amazonen-Werke
Kverneland
Lemken
Claas
Fella
Krone
Harvesters for
potatoes and
beetroot
Grimme
Agricultural
trailers and
transporters
Annaburger
Stoll
Claas
Krone
Stoll
Krempe
John Deere
Pttinger
Strautmann
Source: IG Metal, Works Council Network Agricultural Machinery

Restructuring of the agricultural engineering sector
Foreign investors play an important role and have taken over a number of German
companies during the 90s (Accord GmbH taken-over through Kverneland 1996, Fendt
through AGCO 1997, Stoll through Freudendahl Invest A/S 1999). However, middle-sized
enterprises and family-owned companies are still the dominant actor of the industry.
Major closures of companies in Germany were CNH in Neustadt (former Erntefortschritt
in 2004 and Kverneland in Gottmarding in 2006.
Agricultural machinery in recent years experienced considerable mergers and acquisition
activities. Amongst the most spectacular ones was the acquisition of the tractor
production of Renault by Claas in 2003.
are:
Regulation of working hours (35 hours-week)
Collective labour agreements (ERA)
Training/Qualification/lack of skilled workforce
Age pattern of staff
Temporary employment and the growth in precarious working conditions
Work intensification
Rationalisation and reorganisation of jobs
29

There is a well-developed structure within the agricultural engineering industry with a
rather high level of union density at 50 %. With only very few exceptions, trade unions
and works councils are present in the entire industry.
Works councils, trade union representatives and to certain extent employee
representatives in supervisory bodies serve as the main level of interest-representation.
Most of the companies are represented in an employers association. There is no
collective labour agreement for the sector, but the agricultural engineering industry is
part of the collective labour agreement (Flchentarifvertrag) for the metal- and electrical
industry.
Traditionally high labour standards are also illustrated by the regulation of working time
in the sector a survey amongst works councils carried out in 2008 shows that most
companies have a 35 hours working week as well as flexible working time arrangements
within this frame.
Primarily after 2003, companies of this industry profited from enormous winnings,
because of an increasing gap between decreasing unit labour costs and increasing
productivity. For example does the case of agricultural machinery in 2007 show that
production volume increased at 12.1 %, while unit labour costs decreased at 5.8 %.
Productivity and Unit Labour Costs in German agricultural machinery 2000 to
2007
(2000 = 100)

If the two-digit increases in production output is taken into account, the increase in
employment in 2007 and 2008 was very modest. This means that the growth in
production was made possible to a large degree by an intensification of work and also the
recruitment of temporary agency workers which has become more and more common in
agricultural machinery in recent years (as in other sectors) following a liberalisation of
legal requirements.
In 2008, companies employed a comparably high proportion of agency workers in order
to comply with the high order volume. According to the VDMA, agency workers
represented 15 % of all employees in 2008 (VDMA survey).
The following graph illustrates the structure and role of different contractual
arrangements in agricultural machinery in 2007 on the basis of a sample of 14 major
companies.
30
Labour contracts in 14 companies of agricultural machinery, 1st Half 2007
Source: IG Metall survey amongst works councils in 14 agricultural machinery companies

According to the network of works councils in the agricultural machinery sector and the
IG Metall, the following challenges and problems have affected the sector already before
the financial and economic crisis in 2008:
Regulation and extension of working time in the sector
Implementing collective labour agreement for blue and white collar workers (socalled ERA agreements)
Lack of skilled workforce and training/qualification
Age pattern of staff
Increasing share of temporary employment and agency work
Intensification of work and work-related stress
Continuous reorganisation and rationalisation of jobs
Effects of the financial and economic crisis 2008

The global financial and economic crisis in 2008 had a strong effect on agricultural
machinery in Germany: The overall turnover which in 2008 was characterised by a strong
increase of nearly 25% against 2007 showed a strong decline in 2009 of minus 25%. The
VDMA in June 2010 expected another decrease in annual turnover for the current year of
about 10%.
German agricultural machinery in particular was hit by the crisis on the Central and
Eastern European markets which was very important for the increase in output and
turnover in recent years: Due to the financial crisis and the fluctuating investment
strength of Russia and Ukraine, the order volume from Eastern Europe has decreased
accordingly: minus 62% to Russia and minus 64% to Ukraine in 2009. Export rates to
the EU and to the inner-German market remained comparably stable.
In particular the tractor producers were hit by the crisis because the exports decreased
particularly sharply. As a result the turnover of the tractor industry declined sharply in
31
2009 compared to the previous year. For 2010, estimations on export and turnover
figures are expected to be better than average numbers of agricultural machinery.
Turnover of agricultural machinery producers in Germany 2000 2010 (billion
Euro)
Source: VDMA
Although in most companies and on the average of agricultural machinery dismissals of
regular employees were avoided in 2009 and 2010, the crisis had strong effects on
labour: Most persons employed on temporary agency workers contracts were dismissed
first and the companies in the sector also massively used the possibility of short-time
work: In 2009, 40 % of all employees in the agricultural machinery sector were
temporarily in short-time employment.
For the German metalworkers union IG Metall the support of sector level networking and
works council networks has become an important field of activity during recent years.
Sector level networking on company employee representatives is regarded as an
important instrument in order to avoid companies and workforces being played-off
against each other.
An important initiative for the machinery sector was the Memorandum Mechanical
Engineering (Maschinenbau Memorandum) in October 2009.
The agricultural machinery sector is one of the pioneers for sector level networking and
cooperation between works councils: Already since the mid-1990 works councils have
been cooperating and exchanging information and experience in order to avoid being
played-off against each other, in particular in regard to working hours (extending the
weekly hours of work).
On a meeting of works councils in 1999 representatives of 16 companies in the
agricultural machinery sector agreed on the establishment of a more institutionalised
forum of cooperation. This initiative was supported by the IG Metall. Since then works
councils from 20-25 major companies in the sector regularly met twice a year for several
days to exchange information and views on corporate and other topics, recent
developments, trends and to develop joint strategies and action.
32
Since 2000, the following topics have been discussed at joint meetings, some of them
resulting in joint declarations or positions (Declaration of Mnster 2004):
Globalisation and Europeanisation
Agriculture and the environment
Sectoral and corporate trends of restructuring and change
Instruments and tools for works councils in crisis situations
Human resources development and qualification
Working time
The network of works councils in cooperation with the IG Metall and the EMF also was a
major driving force for the establishment of the European employee network in 2007.
Since then the network of German works councils has actively been involved in the
project activities and the steering group of the EU network.
33
Finally, it should be mentioned that the works councils network has established a website
which not only gathers important sector level information but also is used as a major
channel and platform of exchange. Documents and information on activities in the
companies are shared on a continuous basis. This platform also served as the foundation
for the development of the bi-lingual European Networks website.
Hungary
Country facts Hungary
Population
10 045 000
18,567
5431
VASAS
17%
Trade union and

works council
Company
36%

According to the European Commission (DG Enterprise), around 5.400 people are
employed in the agricultural engineering industry in Hungary.
After the collapse of the communist bloc and consequently the eastern markets, the
number of companies has declined significantly. Particularly in recent years, the majority
of companies have disappeared from the scene. From the total number of 91 companies
producing agricultural machinery in 1986, only 22 have remained in 2000, diminishing to
only 9 companies in 2007.
Most of these 9 companies belong to international shareholders. All small-sized
enterprises of this industrial branch disappeared during the last years.
Employment figures indicate a substantial decline throughout the last 2 decades:
whereas 22.000 people have been employed in this industrial branch in 1986, the figures
of 2000 counted for 11.000, going down to only 5.431 employees in 2007.
Company size structure is clearly dominated by large enterprises. Currently, there are
only 9 large enterprises and no SMEs in Hungary.
34
Main companies in the agricultural machinery sector in Hungary 2007

Companies
Employees
Linamar Hungary Rt.
2 962
Claas Hungaria Kft.
396
Agrikom KAM Kft.
322
Khne Zrt.
240
Sokor Tt Kft.
190
Vmosgp Kft.
179
Agrogp Kft.
157
REKARD Produkt Kft.
148
Gyngysi Mezgp s Jrmtechnika

Kft.
89
Source: VASAS trade union

Trade unions, labour relations and collective bargaining
In Hungary around 20-30 % (previously 50-70 %) of all employees are members in trade
unions. According to official numbers, Hungary has an even lower level of union density,
about 17%. According to the VASAS trade union the membership rate in the agricultural
machinery sector is around 22-24%.
There are six trade union confederations in Hungary: Four, MSZOSZ, ASZSZ, SZEF and
ESZT, emerged as reformed organisations from the unified trade union SZOT, which
existed before 1989, and two, the LIGA and MOSZ, grew out of a combination of anticommunist activists and local protest movements. Also, there are a large number of
independent unions in Hungary.
Since the employers mandatory membership in the chamber of commerce has been
abolished, trade unions lack an official negotiation partner on the employers side.
Currently, social dialogue in Hungary only results in legally non-binding agreements.
Despite efforts by the unions and to a certain extent by the government to strengthen
bargaining at industry level, the main level of bargaining is the company/organisation
level. Generally, only 40 % of all Hungarian employees are covered by collective
agreements.
In the agricultural machinery sector collective bargaining is taking place exclusively at
the company level. Collective agreements cover all employees of the respective
company.
From the point of view of trade unions in particular the following challenges exist with
regard to company and sector level trade union policy:
Coping with the implementation of reforms (public finance, health reform, pension
reform)
Standing up against the attacks on employees and trade unions rights
Safeguarding the rights and interests of employees
Lack of skilled workforce
Problems with vocational training and apprentice education
Increasing role of contract and agency labour
35
Italy
Country facts Belgium
Population
59,619,000
35.435
approx. 4.500
FIOM CGIL
33 %
Trade union and works

council
Company
Collective bargaining coverage (of employees)
approx. 50 %

The agricultural machinery sector in Italy employs according to Eurostat about 4,500
employees. The sector very much is dominated by the ARGO group that is owned by the
Morra family with a number of well-known Italian brands in particular in tractor
production and combine harvesters (e.g. Laverda). The other big player in Italian
agricultural machinery is CNH which belongs to the FIAT group and has two major
production sites in Italy.
Main companies and products groups in the Italian agricultural machinery
sector
Companies
Main products
ARGO Tractors
Tractors
Landini
2.750 (2009)
McCormick
Valpadana SpA
Laverda SpA
Number of
employees
Agricultural machinery
Combine harvesters
Pegoraro
Agricultural machinery
CNH
Production of components for

tractors and tractors below 100
H.P.
All five
companies
are part of
the ARGO
SpA Holding
Appr. 1.800
in the Jesi
and Modena
plants
(2008)
Source: FIOM-CGIL, own research.

Characterised by trade union pluralism along political alignments, there are three major
trade union federations: CGIL, CISL and UIL. The largest is CGIL with about 5.7 million
members, CISL with 4.5 Million members and UIL with 2.1 million members.
36
The percentage of employees covered by workplace representation (66%) is far above

the EU25 average (53%). Generally, the workers statute gives the workers the right to
organise a plant-level union representation (rappresentanzesindacali aziendale RSA). 3
Since 1993 in addition to the RSA there is a so called unitary workplace union
structure (rappresentanze sindacali unitarie, RSU, which includes the RSA), based on the
tripartite agreement of July 1993 between the government and the main trade union
confederations (called the Giugni protocol). The RSUs represent the preference of the
social partners for a single-channel representation system, that is, the unions in the
workplace also representing all employees at a particular work or production unit.
Two-thirds of the representatives in the RSU are elected by the workforce (both union
and non-union members); one-third is reserved to the trade union organisations affiliated
to the signatory organisations of the sectoral national collective agreement (CCNL)
applied in the company. An RSU, when present, has all the rights given by law or
collective agreements to the RSA (1970 Workers Statute rights, rights of information and
consultation). Since 1993, the RSUs can negotiate at plant level on issues that are
delegated from the industry-wide level. RSUs have tended to replace RSAs, which are
now usually only in very small companies.
Though no official figures exist, it is estimated that the coverage of company level
bargaining is about 30% of companies and 50% of employees in the industrial and
service sector. The industry employer federation Confindustria reports that company
level bargaining in industry covers about 30% of companies but 70% of employees.
Since the beginning of the 1990s important changes have occurred in the institutions
regulating the wage setting system. These changes were accompanied by a new attitude
in industrial relations that, after a prolonged period of harsh conflicts among the social
parties, gradually became more cooperative. The main feature of the previous model,
which survived until July 1992, was a mechanism of automatic wage indexation (scala
mobile). This mechanism, substantially reformed in the mid-1970s, was characterised by
identical wage adjustments, in response to past inflation, for all workers (punto unico di
contingenza). It was only partially reformed in 198586, and definitely abolished in the
tripartite agreement of July 1992 and the abolition was confirmed by the tripartite
agreement of July 1993.
Currently the dominant level of wage bargaining is the sector. The tripartite agreement of
1993 played a dominating role in the industry-wide agreements on national level. Wage
bargaining on plant or territorial level is restricted to matters and practices not already
agreed on in the industry-wide agreements. Territorial agreements cover a particular
district or province.
3
This and the following information has been taken from the Industrial Relations Profile on Italy as documented
on the website of the European Foundation for the Improvement of Living and Working Conditions.
See: http://www.eurofound.europa.eu/eiro/country/italy_4.htm
37
Poland
Country facts Poland
Population
38 116 000
18,072

(2005)
approx. 19 000* in 2004

Network
NSZZ Solidarno Metalworkers

Secretariat

(general)
15 %
Trade union and works council
company
14 %

After significant and substantial restructuring of the sector, the agricultural machinery
sector in 2007 was made up of around 20 enterprises which are overwhelmingly small
and mediums sized companies. Only two companies employed more than 500
employees.
In the context of the economic change in the 1990s many small companies went
bankrupt and disappeared from the market.
The most important single companies of the agricultural machinery sector in Poland
today are the CNH Polska production site in Plock, Southern Poland and the traditional
Polish tractor producer Ursus in Warsaw. With around 1.400 employees, CNH Polska by
far is the biggest single employer in the agricultural machinery sector today.
Ursus Sp. z o.o. produces tractors. Founded already in 1893 in Warsaw, Ursus became
one of the biggest tractor producers in Central and Eastern Europe with a production
output of 60.000 in the 1990s. Since then tractor production was falling continuously to
16.000 tractors in 1995 and approx. 1.500 in 2006.
In its current structure the company was established in the years 19982003 as a
consequence of restructuring and cooperation of "Bumar" Ltd., URSUS SA and the URSUS
Tractor Factory Ltd. At that time Bumar Ltd became the main shareholder of URSUS
Company. In 2007, the Turkish Uzel Corporation N.V. bought 51% of Ursus. Both Uzel
and Ursus are, or were, licensee's of AGCO's Massey Ferguson. Today, Ursus produces
key parts used in the tractors construction and for the spare parts market; and rear
axles, gearboxes, diesel engines, and hydraulic pumps. The company also provides
repairing services for engines and driving units. In addition, it engages in the research
activities of driving units, engines, cabins, attaching units, and other tractor components.
The CNH Polska plant in Plock, whose history also goes back to the end of the 19th
century, is the only in Poland and the biggest in Central Europe manufacturer of combine
harvesters. The company operates within the CNH structures and manufacturing products
under worldwide Case IH and New Holland brands. Key products of the Plock plant are
combine harvesters in the New Holland TC range combines. Other products of essential
importance for CNH Polska are big and round balers manufactured under Case IH and
New Holland brand.
38
Additionally, Plock plant specializes in production of headers for all Case IH and New
Holland combines manufactured in Europe and components and parts for other CNH
plants. Over 90% of combines and balers manufactured in Plock are exported to markets
on all continents.
Major companies and products
Company
Employe
es
Ursus Warsaw
CNH Plock
Products
production of heavy tractors,
production of post licence tractors,
production of key parts used in the
tractors construction,
as well as for the spare parts market,
production of rear axles, gearboxes,
hydraulic pumps for post licence
tractors,
production of diesel engines for post
licence tractors,
production of rear axles for heavy
tractors,
repairing of engines and driving units
1.400
combine harvesters of the New

Holland brand
big and round balers under Case IH
and New Holland brand
headers for all Case IH and New
Holland combines manufactured in
Europe and components and parts for
other CNH plants
Source: Metalworkers Secretariat of NSZZ Solidarnocz

Trade union density in Poland is relatively low at 16% and membership is divided
between two large confederations of more or less equal size, NSZZ Solidarnosc (2006:
634.000 members) and OPZZ (2006: 410.000-650.000 members), and one smaller one,
FZZ. In total, approximately 1.5 to 2 million employees are represented in a trade union.
The union structures are much decentralised, and many local union groupings do not
belong to any of the main confederations or do only have weak cooperation-links.
Only a minority of employees in Poland are covered by collective bargaining, which
almost entirely takes place at company or organisation level. Consequently, in companies
with no active union or works council discussing the issue, wages and working conditions
are set up unilaterally by employers.
Poland also has a so-called Tripartite Commission, bringing together unions, employers
and the government. Discussions between these three groups produced important
agreements in the first half of the 1990s. The Tripartite Commission has to be consulted
on legislation concerning the labour market, state benefits and employment rights and
plays an important role in setting the minimum wages. Since 2002, no remarkable
accords were agreed upon.
39
Spain
Country facts Spain
Population
45 283 000
29,689
9.200
MCA-UGT and FM/CC.OO
16%
Trade union or works

council
Industry
70%

In 2007, 12.600 people were employed in the agricultural engineering industry of Spain.
This total number needs to be divided into 9.200 employees and 3.400 self-employed
workers. In comparison to 2005 (2005: 16.400) the employment figures indicate a
significant decline of 23 % of the entire workforce in this industry, and a decline of 16%
(2005: 11,000) for employees.
The number of companies in the agricultural engineering industry accounts for 1.170. In
detail, more than 800 can be categorised according to the NACE 2932, 230 to the NACE
2931 and 112 to the NACE 112.
Company size structure is clearly dominated by small enterprises. Only one company has
a workforce with more than 200 employees. In addition, only 4 companies of the Spanish
agricultural engineering industry employ between 100 and 199 people. The remaining
companies are comparably small: 18 companies with a company size of 50-99
employees, 86 companies with 20-49 employees, 500 companies with only 3-20
employees and 560 companies with 1-2 employees (including the owner).
Major export countries are Mexico and Russia, Spain is importing from Germany, the
Netherlands and the USA.
Agricultural engineering industry has demonstrated a visible financial increase during
recent years. Sales volume has reached 1.5 billion .
Major companies in the agricultural machinery sector
Company
Employees
John Deere Iberica
1082
Roda Iberica
168
RAESA
155
KOMATSU
120
Potencia
112
Source: MCA-UGT and FM/CC.OO
40

Union density in Spain is relatively low at around 16% (2004), although the results of
elections to works councils indicate that unions have much wider support. In total, there
are more than 2 million trade union members in Spain. There are two dominant union
confederations in Spain, CC.OO with 970,000 members and the MCA-UGT with
approximately 840,000 members.
Collective bargaining and other negotiations take place at national, industry and company
level. Since 2001, an annual national agreement has provided a framework for lowerlevel bargaining. The overall level of collective bargaining coverage is comparably high at
around 80%.
In few exceptional cases, such as in construction, banking and chemical industries, there
are industry agreements for the whole of Spain. Normally, large and medium sized
companies have their own agreements, sometimes at plant level, while smaller
employers are covered by provincial agreements for their industry. The agricultural
engineering industry is covered by collective agreements which are also applicable to the
mining and metallurgy industry.
41
Part III: Further information

EU level information and resources
European Employee Network Agricultural Machinery
www.emf-fem.org/Projects/AgriTech-project
EMF
European Metalworkers Federation
International Trade Union House (ITUH)
Boulevard du Roi Albert II, 5 (bte 10)
B-1210 Brussels
www.emf-fem.org
CEMA - European Agricultural Machinery
Diamant Building
Blvd. A.Reyers 80
B-1030 Brussels
www.cema-agri.org
European Commission DG Enterprise and Industry
Communication and Information Unit R4
BREY 13/092
B - 1049 Brussels (Belgium)
http://ec.europa.eu/enterprise/index_en.htm
MACHINERY@ec.europa.eu
National level information and resources

Pro-Ge Austria
www.proge.at
GPA-djp Austria
www.gpa.at
ACV-CSC Metea Belgium

www.acv-csc-metea.acv-online.be
ABV Metaal Belgium
http://www.abvvmetaal.be
42
OS Kovo Czech Republic

www.oskovo.cz
Metalli Finland
www.metalliliitto.fi
CGT Federation des Travailleurs de la
Metallurgie France
www.ftm-cgt.fr
FO Metaux France
www.fo-metaux.org
IG Metall Germany
www.igmetall.de
Works Council Network Agricultural
Machinery Germany
http://netkey40.igmetall.de/homepages/netzwerklandtechnik/wirberuns.html
VASAS Hungary
www.vasasszakszervezet.hu
FIOM CGIL Italy

www.fiom.cgil.it
Metalworkers Secretariat NSZZ Solidarnosc

Poland
www.solidarnosc.org.pl/solidmet
Metal, Construction and Allied Workers
Federation
UGT MCA Spain
www.ugt.es/mca
Federacin de industria de CCOO Spain

www.industria.ccoo.es
43
Brussels Declaration on Agricultural Machinery

We, representatives of the metalworkers unions, works councils and workplace union
committees at the international, sectoral Future Forum of the European Employee Network
Agricultural Machinery in Brussels, have today adopted the following joint declaration:
A strong European agricultural machinery industry is based on strong worker
representation
A significant employer in the European Union, the European agricultural machinery sector is a
crucial and core segment of Europes mechanical engineering industry. The European
agricultural machinery sector is the largest supplier of agricultural machinery in the world and
an innovative sector whose global competitiveness is underpinned by an experienced
industrial and service workforce with substantial technical capabilities.
The agricultural machinery sector is an industry of the future. In view of the pressing global
challenges associated with food, raw materials and the environment, the importance of
agricultural machinery now extends well beyond its traditional role in the agricultural industry
and also has a significant bearing on energy and environmental policy.
Europes agricultural machinery industry is distinguished by strong trade union structures
enabling workers representation. The sector is proof that strong trade union organisation and
the involvement of worker representative bodies within the workplace in company decisionmaking has a positive impact on the development of companies global competitiveness,
management of structural change and innovation.
The appearance of the agricultural machinery sector has altered dramatically in recent years
in the wake of globalisation. Production sites in Europe are coming under increased cost and
competitive pressure as new competitors enter the market, particularly in Asia. Many
companies have responded to this development by relocating their operations and stepping
up cross-border collaboration and cooperation, which has contributed to a significant
internationalisation of the sector.
However, given the internationalisation of the sector and the increasingly cross-border nature
of labour distribution, the predominantly national system of worker representation is no
longer sufficient. For this reason, and because the agricultural machinery sector has a high
preponderance of small and medium-sized enterprises and the system of European works
councils is thus only applicable to a relatively small number of companies, in 2007 works
councils, workplace union committees and national metalworkers federations established the
European Employee Network Agricultural Machinery, which is now coordinated by the
European Metalworkers Federation (EMF).
Over the past three years, with financial support from the European Commission, the network
has for the first time enabled an exchange of experience, cross-border discussions and
engagement with topics of joint interest as well as the development of joint positions. Without
the network, such an exchange would be impossible for colleagues at small and medium-sized
enterprises, since no European framework for this interaction has existed until now.

Our demands to safeguard a future-proof and sustainable agricultural machinery
sector:
I.
Through this exchange, we have discovered that irrespective of any national differences
we all face similar problems and have to deal with shared challenges. These include the
increase in temporary agency work and other forms of work provision other than regular
permanent employment, which often entail substantial reductions in income for the
workers concerned.
II.
In addition, many of our colleagues on the shop floor report insufficient investment in
workers expertise, skills and qualifications, combined with increasing skills shortages and
risks to sites, jobs and manufacturing quality. A sustainable future for the agricultural
machinery sector in Europe can only be shaped through its workers. For that reason, we
are calling for more training and education opportunities and observance of the individual
right to training for all workers in the sector.
III.
Jobs within the EU and outside Europe are often relocated on the basis of incorrectly
calculated cost benefits, resulting in long-term risks for existing sites. We see these
trends as constituting not only joint challenges for company and sectoral trade-union
policy but also significant risks to the further industrial development of Europes entire
agricultural machinery sector.
IV.
In common with other industries, the agricultural machinery sector has been hit hard by
the global financial and economic crisis. This has led to some massive falls in turnover
and output and to difficult economic realities for many companies, as well as to
redundancies. The fact that the past two years have not seen greater job losses and an
associated loss of skills is owing in no small measure to company and sectoral worker
representative bodies and trade unions. However, the mainly small and medium sized
companies in the sector need access to liquidity and financing.
V.
But possible concessions that have been made by the employees representations in a bid
to preserve jobs must not result in a permanent lowering of working conditions and
standards and a sharper increase in precarious employment in our sector in the wake of
the crisis. Within the agricultural machinery sector, the markets of the future will not be
won by adopting the ever cheaper principle. We therefore advocate a philosophy of
quality jobs instead of cost-driven labour policies, and demand maintaining know-how in
the R&D sectors and in production.
VI.
We believe that social dialogue at company and sectoral level guarantees a socially
responsible approach to crisis management and the anticipation of future structural
change, both in our countries and throughout Europe. This instrument has proved its
worth once again in the current crisis and we are therefore resolutely opposed to any
form of erosion and weakening of worker participation at company and national level.
VII.
Social dialogue and worker participation in the form of information and consultation are
integral components of the European social model and enshrined as a fundamental right
in the Treaty of Lisbon. These components must be respected and expanded in order to
safeguard and develop jobs and employment conditions over the long term and boost the
innovative competitiveness of Europes agricultural machinery sector. We firmly condemn
all violations of workers rights.
VIII.
In view of the increasing internationalisation of our sector, the EWC Directive and current
and future amendments to it are important for worker representation. However, it is also
necessary, given the predominance of SMEs within the sector, that company and tradeunion worker representatives from the entire agricultural machinery industry be given the
chance to engage in cross-border collaboration: this opportunity must not be confined to
employees of large companies. Everybody deserves the possibility to be given the right to
participate in transnational cooperation.
IX.
The conditions for the future sectoral activities of worker representative bodies require
time and real financial resources to be found in order to enable this collaboration to take
place. In particular, the development of a responsible European policy on social and
employment as well as industrial issues, corresponding to EMFs and its affiliated
organisations demands, makes these improved opportunities for the representation of
workers interests essential.
X.
To guarantee this future oriented sector the agricultural machinery sector - and the
employment prospects in Europe, we expect joint initiatives and efforts in the companies,
led by management and employee representation, accompanied by appropriate policy
frameworks defined by the EU Commission and the EU Parliament.
In conclusion, the trade unions in the current situation underline their determination to unite
their efforts on European level, rather than in the framework of national policies. Workers
refuse to pay for the crisis they did not cause and will take appropriate action if needed.
Brussels, 11th June 2010
Contact information
European Metalworkers Federation (EMF)
International Trade Union House (ITUH)
Boulevard du Roi Albert II, 5 (bte 10)
B-1210 Brussels
http://www.emf-fem.org

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E UROPEAN M AP

With financial support of the European Commission, DG EMPL

European Map Agricultural Machinery An Employee Perspective

European Map Agricultural Machinery An Employee Perspective

European Map Agricultural Machinery An Employee Perspective

European Map Agricultural Machinery An Employee Perspective

European Map Agricultural Machinery An Employee Perspective

Agricultural Machinery in Europe

Impact of the 2008 crisis

Global trends and prospects

Trade union and employee initiatives

Part II: Countries

Part III: Further information and documents

EU and national levels - information and resources

Brussels Declaration on Agricultural Machinery

European Map Agricultural Machinery An Employee Perspective

Source: CEMA based on VDMA estimations (German Engineering Federation)

European Map Agricultural Machinery An Employee Perspective

Source: VDMA, based on own calculations and Eurostat

European Map Agricultural Machinery An Employee Perspective

However, it should be mentioned here, that European and national figures on

European agricultural machinery traditionally is characterised by a strong position of

European Map Agricultural Machinery An Employee Perspective

European locations of tractor production

Source: Finnish Metalworkers Trade Union Metalli

Impact of the 2008 crisis

Source: CEMA, based on VDMA and Eurostat

European Map Agricultural Machinery An Employee Perspective

Source: CEMA Statistical Group, VDMA

Global trends and prospects

European Map Agricultural Machinery An Employee Perspective

Western Europe: Replacement purchase will be important in the context of managing

Increasing role of precarious work contracts, e.g. contract labour

Attacks of employers on employee and trade unions rights

Growing lack of skilled labour and structural weaknesses of the vocational

Trade union and employee initiatives

European Map Agricultural Machinery An Employee Perspective

Company employee representatives

Source: European Employee Network Agricultural Machinery

European Map Agricultural Machinery An Employee Perspective

Website of the European Employee Network Agricultural Machinery

European Map Agricultural Machinery An Employee Perspective

See the Brussels Declaration in Part III

European Map Agricultural Machinery An Employee Perspective

Part II: Countries

GDP per capita (2009, US Dollar)

Employees in Agricultural Machinery (2005)

Trade unions in the EU Agri-Tech Network

Proportion of employees in unions (general)

Main level of collective bargaining

Collective bargaining coverage

Source: European Employee Network Agricultural Machinery

European Map Agricultural Machinery An Employee Perspective

Main export destinations are (descending order depending on importance) Germany,

CNH-Steyr (410 employees)

Reformwerke Welz (370

Machinery for soil cultivation

Pttinger (1197 employees)

Hydrac (100 employees)

Source: Pro-Ge trade union

GDP per capita (2009, US Dollar)

Employees in Agricultural Machinery (2005)

Trade unions in the EU Agri-Tech Network