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AARHUS
   UNIVERSITET                5 MARCH, 2013




JOB TUESDAY – THE DANISH LABOUR
MARKET & SALARY NEGOTIATIONS




                 pRÆSEN
                  TATION                      1
AARHUS
       UNIVERSITET                                                            5 MARCH, 2013




THE DANISH LABOUR MARKET &
SALARY NEGOTIATIONS
› Claus Palle

› Legal Adviser, AU TTO (Technology Transfer Office)

› Master of Law, masters thesis on Intellectual Property Rights of the employed.
› Total of five years at Ministry of Employment (at ”Arbejdsdirektoratet”),
› One year at unemployment fund.

› Seven years at AU TTO.
› Union representative for four years, joint union representative for almost one year.


                                                                                         2
AARHUS
    UNIVERSITET                                         5 MARCH, 2013




THE DANISH LABOUR MARKET IN
OVERVIEW – THREE PARTY MODEL

                       Danish State



                  Municipalities/Jobcenters




Unions                             Employers' associations*        3
AARHUS
    UNIVERSITET                               5 MARCH, 2013




UNIMPLOYMENT INSURANCE SYSTEM
                  Danish State




Unemployment fund                Unemployed
                                                         4
AARHUS
      UNIVERSITET                                          5 MARCH, 2013




CONDITIONS FOR RECEIVING
UNEMPLOYMENT BENEFITS
› Basic conditions: You have to live in DK before starting your
  education, have working permit/green card and have
  minimum 18 months of education, while being less than 63
  years old , available for work.
› To do after graduation: 14 day deadline for applying for
  membership of unemployment fund. You must sign in at the
  municipal job centre (jobnet.dk) no later than 14 days after
  having graduated. Then you can get the benefit.
› If you have been student member (free) in a year before
  graduation, you can get from benefits day one. Graduate
  rate of 14.235 DKK. If you can document 320 hours of work in
  6 months you can get more. Signing in when finishing your
  bachelor could be beneficial.
                                                                      5
AARHUS
      UNIVERSITET                                          5 MARCH, 2013




CONDITIONS FOR RECEIVING
UNEMPLOYMENT BENEFITS, CONTINUED
› Alternative: (also for re-qualifiying after spending two years
  of benefits) Is one year (1924 hours) of unsupported work
  while being a member of an unemployment fund, before
  you can receive unemployment benefits (again).
› Special rules for self-employed.
› Ph.D.**
› Links:
› www.aak.dk/in-english
› www.nyidanmark.dk/en-us/frontpage.htm
                                                                      6
AARHUS
    UNIVERSITET                             JOB TUESDAY   5 MARCH, 2013
                                            CLAUS PALLE
                                          LEGAL ADVISER




                  Danish State/EU


 Unions           Collective agreements

                                          Employers*
Individuals       Individual agreements



                  Legal framework

                                                                     7
AARHUS
  UNIVERSITET         5 MARCH, 2013




SALARY NEGOTIATIONS




                                 8
AARHUS
      UNIVERSITET                                           5 MARCH, 2013




SALARY NEGOTIATIONS
› Two main scenarios: Hiring and annual salary
  negotiation.

› Public institution
› – Always CBA
› - Study CBA, ask union.
› - After the first job there will be more room for negotiations
  than what many people think.
                                                                       9
AARHUS
      UNIVERSITET                                           5 MARCH, 2013




SALARY NEGOTIATIONS

› Private company with collective bargaining
  agreement (CBA) (there are very few of these)
› - More fringe benefits, slightly more spread in salary.
› - Study CBA, ask union, also for proof-reading of contract.



                                                                      10
AARHUS
      UNIVERSITET                                           5 MARCH, 2013




SALARY NEGOTIATIONS


› Private company w/o CBA
› - Everything is negotiable – as an outset
› - Ask union for advice, also for proof-reading of contract.



                                                                      11
AARHUS
  UNIVERSITET                5 MARCH, 2013




…AND THEN YOU´RE UP! WHAT NOW?




                                       12
AARHUS
      UNIVERSITET                                            5 MARCH, 2013




BATNA – IN THE HIRING PROCES
› Best – Alternative – To – Negotiated – Agreement
› - Bear in mind – they choose you every bit as much as you
 choose them. You represent value and commitment.
› - Science tells us, that if you are invited for interviews, you
 are deemed worthy from a formal qualification standpoint.
› - After that it is a question if they like you or not(!)

                                                                       13
AARHUS
     UNIVERSITET                                  5 MARCH, 2013




WHAT’S ON THE TABLE – BESIDES WAGE
› Extra holidays,
› health insurance,
› bonus,
› salary under vacation in your first year (where you
  have not earned any),
› phone, internet, computer,
› title,
› possibility of working at home, other kinds of
  flexibility,
› free parking space, lunch, etc.

                                                            14
AARHUS
     UNIVERSITET                                           5 MARCH, 2013




IF YOU DON’T ASK…
› With high umemployment rates, it is easy to fall into a hole
  and just say yes, but:
› Salary is just one thing, and perks and niceties can often
  offset a lower salary, if they are useful to you.
› Asking politetly and methodically uncovering different
  possibilities will make you seem composed and thorough
  rather than greedy.
› Use the aquired experience and skill next time you apply for
  a new job.
                                                                     15
AARHUS
      UNIVERSITET                                         5 MARCH, 2013




HOW TO
› Be prepared – know what you want, and prioritise. Get facts
  rights – never assume! (Use statistics and advise from union,
  do not pretend to know what your opponent thinks).
› What can you do/have you done. Positive impact. (Log it)
› Be realistic but ambitious.
› Ask questions. Use few good arguments.
› Stay positive/constructive.
› Salary negotiatons goes on all year.                              16
AARHUS
  UNIVERSITET                  5 MARCH, 2013




THANK YOU FOR YOUR ATTENTION




                                         17

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Job tuesday – the danish labour market &

  • 1. AARHUS UNIVERSITET 5 MARCH, 2013 JOB TUESDAY – THE DANISH LABOUR MARKET & SALARY NEGOTIATIONS pRÆSEN TATION 1
  • 2. AARHUS UNIVERSITET 5 MARCH, 2013 THE DANISH LABOUR MARKET & SALARY NEGOTIATIONS › Claus Palle › Legal Adviser, AU TTO (Technology Transfer Office) › Master of Law, masters thesis on Intellectual Property Rights of the employed. › Total of five years at Ministry of Employment (at ”Arbejdsdirektoratet”), › One year at unemployment fund. › Seven years at AU TTO. › Union representative for four years, joint union representative for almost one year. 2
  • 3. AARHUS UNIVERSITET 5 MARCH, 2013 THE DANISH LABOUR MARKET IN OVERVIEW – THREE PARTY MODEL Danish State Municipalities/Jobcenters Unions Employers' associations* 3
  • 4. AARHUS UNIVERSITET 5 MARCH, 2013 UNIMPLOYMENT INSURANCE SYSTEM Danish State Unemployment fund Unemployed 4
  • 5. AARHUS UNIVERSITET 5 MARCH, 2013 CONDITIONS FOR RECEIVING UNEMPLOYMENT BENEFITS › Basic conditions: You have to live in DK before starting your education, have working permit/green card and have minimum 18 months of education, while being less than 63 years old , available for work. › To do after graduation: 14 day deadline for applying for membership of unemployment fund. You must sign in at the municipal job centre (jobnet.dk) no later than 14 days after having graduated. Then you can get the benefit. › If you have been student member (free) in a year before graduation, you can get from benefits day one. Graduate rate of 14.235 DKK. If you can document 320 hours of work in 6 months you can get more. Signing in when finishing your bachelor could be beneficial. 5
  • 6. AARHUS UNIVERSITET 5 MARCH, 2013 CONDITIONS FOR RECEIVING UNEMPLOYMENT BENEFITS, CONTINUED › Alternative: (also for re-qualifiying after spending two years of benefits) Is one year (1924 hours) of unsupported work while being a member of an unemployment fund, before you can receive unemployment benefits (again). › Special rules for self-employed. › Ph.D.** › Links: › www.aak.dk/in-english › www.nyidanmark.dk/en-us/frontpage.htm 6
  • 7. AARHUS UNIVERSITET JOB TUESDAY 5 MARCH, 2013 CLAUS PALLE LEGAL ADVISER Danish State/EU Unions Collective agreements Employers* Individuals Individual agreements Legal framework 7
  • 8. AARHUS UNIVERSITET 5 MARCH, 2013 SALARY NEGOTIATIONS 8
  • 9. AARHUS UNIVERSITET 5 MARCH, 2013 SALARY NEGOTIATIONS › Two main scenarios: Hiring and annual salary negotiation. › Public institution › – Always CBA › - Study CBA, ask union. › - After the first job there will be more room for negotiations than what many people think. 9
  • 10. AARHUS UNIVERSITET 5 MARCH, 2013 SALARY NEGOTIATIONS › Private company with collective bargaining agreement (CBA) (there are very few of these) › - More fringe benefits, slightly more spread in salary. › - Study CBA, ask union, also for proof-reading of contract. 10
  • 11. AARHUS UNIVERSITET 5 MARCH, 2013 SALARY NEGOTIATIONS › Private company w/o CBA › - Everything is negotiable – as an outset › - Ask union for advice, also for proof-reading of contract. 11
  • 12. AARHUS UNIVERSITET 5 MARCH, 2013 …AND THEN YOU´RE UP! WHAT NOW? 12
  • 13. AARHUS UNIVERSITET 5 MARCH, 2013 BATNA – IN THE HIRING PROCES › Best – Alternative – To – Negotiated – Agreement › - Bear in mind – they choose you every bit as much as you choose them. You represent value and commitment. › - Science tells us, that if you are invited for interviews, you are deemed worthy from a formal qualification standpoint. › - After that it is a question if they like you or not(!) 13
  • 14. AARHUS UNIVERSITET 5 MARCH, 2013 WHAT’S ON THE TABLE – BESIDES WAGE › Extra holidays, › health insurance, › bonus, › salary under vacation in your first year (where you have not earned any), › phone, internet, computer, › title, › possibility of working at home, other kinds of flexibility, › free parking space, lunch, etc. 14
  • 15. AARHUS UNIVERSITET 5 MARCH, 2013 IF YOU DON’T ASK… › With high umemployment rates, it is easy to fall into a hole and just say yes, but: › Salary is just one thing, and perks and niceties can often offset a lower salary, if they are useful to you. › Asking politetly and methodically uncovering different possibilities will make you seem composed and thorough rather than greedy. › Use the aquired experience and skill next time you apply for a new job. 15
  • 16. AARHUS UNIVERSITET 5 MARCH, 2013 HOW TO › Be prepared – know what you want, and prioritise. Get facts rights – never assume! (Use statistics and advise from union, do not pretend to know what your opponent thinks). › What can you do/have you done. Positive impact. (Log it) › Be realistic but ambitious. › Ask questions. Use few good arguments. › Stay positive/constructive. › Salary negotiatons goes on all year. 16
  • 17. AARHUS UNIVERSITET 5 MARCH, 2013 THANK YOU FOR YOUR ATTENTION 17