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Highlights, 28 Jul 2010

  • 28 Jul 2010
    Poland: Concept of employee privatisation returns

    Nearly 20 years after the first attempt to introduce employee ownership schemes, the Polish government is to revive the idea with the help of public financial support offered to companies in which either employees or local government are involved. The concept has been positively assessed by the social partners and is currently being transformed into draft legislation.

  • 28 Jul 2010
    Austria: Negotiations on working time in metalworking industry terminated

    In April 2010, the negotiations on working time flexibility in Austria’s metalworking industry were terminated by employers. While organised business demanded an extension of the reference period for paying overtime, which would have allowed companies more flexibility in times of economic uncertainty, the trade unions firmly refused, arguing that such a move would involve a loss of income for employees. In their turn, the unions called for a reduction in working hours.

  • 28 Jul 2010
    Ireland: Croke Park deal delivers cost containment and promises major change in public sector

    A four-year agreement, which includes a pay freeze, job security and the maintenance of existing pension arrangements for 330,000 Irish public servants, has been accepted by their unions. It was voted through by a majority of almost two to one and includes commitments to a programme of major change overseen by a new implementation body which it is hoped will yield productivity improvements and efficiencies and guarantee industrial peace in the public sector.

  • 23 Jul 2010
    Estonia: Salaries continue to decline

    The economic decline has slowed in Estonia, but average wages are still falling as a result of the recession. There are reports of some companies cutting workers’ salaries without consulting trade unions. For instance, the Prisma Peremarket supermarket chain decided to reduce the salaries of 700 employees by 12%–15% because of bad economic results. The trade union did not agree to the changes and alleges that employees faced a choice between a salary cut or losing their jobs.

  • 23 Jul 2010
    Germany: New collective agreement concluded in chemicals industry

    In April 2010, a new collective agreement in Germany’s chemicals industry was concluded by the Mining, Chemicals and Energy Industrial Union and the German Federation of Chemical Employers’ Associations. The agreement provides for lump-sum payments, and includes a number of measures to combat the effects of the recession. New regional networks are to be set up, as well as a fund to support companies that offer continuing employment to trainees completing their apprenticeships.

  • 23 Jul 2010
    Malta: Trade union rights for police officers

    Maltese legislation granting trade union rights to workers does not extend to the police force. The main Maltese trade unions have started a campaign to win these rights for police officers. This campaign has intensified following a judicial protest by members of the force about overtime pay. While the response of the Police Commissioner has been rather cautious, the government has started discussions between the Ministry for Justice and officials of the police corps on the issue.

  • 14 Jul 2010
    Italy: Social shock absorber system facing economic crisis

    In Italy, the wages guarantee fund (CIG) aims to maintain employment when a company faces a crisis. In 2009, there was a 311% increase in recourse to the CIG compared with 2008. According to the government and the social partners, the Italian ‘social shock absorber’ system has considerably reduced the number of dismissals. However, the trade unions have recently expressed concern about the future prospects of workers whose CIG periods will terminate in the next few months.

  • 14 Jul 2010
    Denmark: New agreements pave the way to tackle social dumping

    New collective agreements in Denmark’s transport and construction sectors will help combat social dumping and discrimination against foreign nationals. Although the main goal of the employees – complete ‘joint and several liability’ from contractor to subcontractors – was not achieved, the new agreements extend the powers of unions to prevent social dumping and promote closer cooperation between social partners.

  • 14 Jul 2010
    United Kingdom: Long-running dispute between British Airways and Unite union continues

    In May and June 2010, the UK trade union Unite carried out a series of industrial actions against British Airways. The strikes were the latest in a series of industrial actions taken by Unite against the airline. The dispute has centred on cost-cutting measures proposed and implemented by British Airways, as well as issues concerning the terms and conditions of Unite members. Both sides appear to be deeply entrenched and the dispute could continue during the summer of 2010.

  • 09 Jul 2010
    Greece: New law to regulate flexible employment relationships

    In May 2010, the Greek parliament passed a new law guaranteeing job security. The law, fiercely opposed by employers, covers economically dependent work, part-time and short-time work, temporary agency work, as well as other flexible forms of employment. It also outlines provisions on employee layoffs, working time arrangements, the length of the working week and the resolution of workplace disputes.

  • 09 Jul 2010
    Slovakia: Volkswagen Slovakia increases wages by 3%

    The automotive industry in Slovakia is overcoming the recession and trade unions are demanding higher wages. Volkswagen Slovakia, hit by the economic downturn in 2009, has agreed a wage increase of 3%, with a one-off payment to employees of €215. The unions had threatened strike action in March 2010, when initial bargaining failed, but within a few weeks an agreement was met for 2010–2011.

  • 09 Jul 2010
    Poland: OPZZ promotes changes to pensions system

    In early 2010, the All Poland Alliance of Trade Unions (OPZZ) and daily newspaper Superexpress launched a joint campaign to make the national pensions system fairer. They called for any person insured under the system to have the right to retire and collect a pension based solely on the number of years worked, regardless of their age. More than 250,000 Poles backed the initiative, which was subsequently submitted to the parliament as draft legislation.

  • 01 Jul 2010
    Czech Republic: Traditional Czech textiles company goes bankrupt

    On 3 May 2010, the Regional Court in Brno sent the country’s biggest clothes manufacturer, Oděvní podnik Prostějov, into bankruptcy. The company had been in a bad financial situation since January. Although it tried to reorganise itself, it did not manage to get enough funding. The company blames current economic conditions, the low volume of orders and a lack of money. Cheaper products from Asia and a strong Czech currency were other negative factors.

  • 01 Jul 2010
    Norway: New agreements concluded in key private sector accord areas

    In April 2010, the social partners within the so-called trend-setting industries in Norway, which include important parts of the manufacturing sector, reached agreement on a general wage increase of NOK 1 (€0.13) an hour, as well as additional low pay increases, and an extraordinary equal pay increase to be distributed at company level. The wage settlement is expected to generate wage growth of about 3% from 2010 to 2011.

  • 01 Jul 2010
    Greece: Extraordinary measures used to activate European economic support mechanism

    As a result of the crisis in the Greek economy and in order to secure the eurozone’s financial and budgetary stability, a European support mechanism has been created to finance the Greek debt. For the activation of the support mechanism, a law foreseeing a wide range of measures has been introduced, seeking to reduce public expenditure immediately and to create a favourable investment environment. However, trade unions have reacted strongly against the measures.

  • 23 Jun 2010
    EU Level: Commission consults social partners on working time directive review

    The European Commission has launched a first phase of consultation with the EU-level social partners on a review of the Working Time Directive, following the failure of the Council and the European Parliament to agree on a previous proposal for revision. On this occasion, the Commission is calling for views on a comprehensive review of the directive, to reflect changes to working patterns and practices over the past 20 years.

  • 23 Jun 2010
    Malta: Dispute over workers remaining after Malta Shipyards closure

    The closure of Malta Shipyards in March 2010 marked the end of a highly visible enterprise in the Maltese economic and political arena. In the end, the Maltese government and the General Workers’ Union failed to agree on the future of the 59 workers still employed by Malta Shipyards. GWU insisted that these workers should continue working for the new owners of Malta Shipyards rather than being given alternative employment.

  • 23 Jun 2010
    Germany: Gender impact of recovery packages investigated

    A study investigating the impact of Germany’s recovery packages on male and female employment shows that these packages benefited male-dominated sectors and reduced employment decline among men. In contrast, female employment increased slightly, even though female-dominated services sectors were not targeted. The study warns that the crisis will hit these services sectors in the long run. Meanwhile, no policy measures have been taken to prevent a future decline in women’s employment.

  • 01 Jun 2010
    Czech Republic: Last pre-election tripartite meeting agrees further anti-crisis measures

    The last tripartite meeting prior to the election for the Parliamentary Chamber of Deputies was held on 22 April 2010. The general election was due to take place on 28 and 29 May. Another tripartite meeting is planned for 3 June. Discussions at the last pre-election meeting criticised the implementation of 38 short-term anti-crisis measures. At the meeting, 13 points were agreed aimed at recovery of the economy, employment growth and managing public expenditure.

  • 01 Jun 2010
    EU Level: First European agreement at Thales aims to improve professional development of employees

    The first European framework agreement on the subject of annual discussions on individual and collective performance between employees and their managers has been concluded at the electronic systems group Thales. The agreement was signed in April 2010 between the Thales group and the European Metalworkers’ Federation. It sets out an annual cycle as part of the discussion process and highlights the need for training to ensure an effective evaluation.

  • 01 Jun 2010
    Netherlands: Self-employed workers join Social and Economic Council

    In March 2010, self-employed workers secured a seat on the Social and Economic Council, the government’s permanent advisory body. The Platform for Self-Employed Workers (PZO) will occupy one of the employers’ seats, providing a voice for 650,000 self-employed workers. PZO aims to ease the annual working hours regulation with which self-employed workers must comply for tax benefits. It also aims to simplify contracting regulations in the public sector.

  • 25 May 2010
    Spain: Government cuts back job offers in public sector

    The Spanish government cabinet has approved four royal decrees concerning the posts to be offered in the public sector in 2010. The limited replacement rate and the decrease in job vacancies compared with the previous year confirm the government’s commitment to austerity measures and to reducing expenditure on public administration staff. Trade unions in the public sector have criticised the cutbacks, particularly as job creation is currently a top priority.

  • 24 May 2010
    EU Level: General Motors announces Europe-wide restructuring plans

    In February 2010, the Chief Executive Officer of General Motors Europe, Nick Reilly, announced a five-year plan that aims to reinvigorate 80% of Opel/Vauxhall carlines and place a strong emphasis on alternative solutions. The business plan also foresees the elimination of about 8,300 jobs. This includes the intent to sell or close the Opel production facility in Antwerp, Belgium, a move which trade unions and the European works council have strongly opposed.

  • 24 May 2010
    Estonia: New pension law to raise retirement age

    In April 2010, the Estonian parliament approved a draft Act stipulating an increase in the retirement age. Under the draft legislation, the retirement age would be gradually increased by three months a year, so that by 2026, it would be 65 years for both men and women. The increase will mainly affect people who are now up to 50 years of age. While trade unions disapprove of the new act, employers say that the change should have been introduced years ago.

  • 13 May 2010
    Malta: Trade unions divided over steep new utility rates

    While protests over the tough utility regime in 2008 united the Maltese trade unions, the new water and electricity rates announced by the government in the last quarter of 2009 brought sharp divisions among the unions to the fore again. In their opposition to these measures, two diametrically opposed camps have formed within the Maltese trade union movement. The conflict underlines the divisions that exist within the country’s trade union movement.

  • 13 May 2010
    EU Level: Social partners in audiovisual sector call for action against internet piracy

    The Audiovisual Social Dialogue Committee recently adopted a joint opinion calling for stronger protection against unauthorised file sharing of protected works and performances. This joint opinion is part of a larger debate about the enforcement of copyright on the internet – in particular, about finding a balance between the protection of authors’ rights and the individual’s right to privacy, data protection and freedom of expression.

  • 13 May 2010
    United Kingdom: TUC survey assesses progress on equality bargaining

    The latest equality audit carried out by the Trades Union Congress, covering 2009, assesses the progress made by trade unions on a range of equality indicators, with a particular focus on equality bargaining, where equal pay for women was a top priority. The audit reports a range of negotiating successes for trade unions, although the proportion of unions with up-to-date policies and guidelines on all the different aspects of equality was lower in 2009 than in 2005.

  • 10 May 2010
    Germany: Agreement to safeguard jobs signed in metalworking industry

    The bargaining parties in the German metalworking and electrical industry have settled collective agreement packages that focus on safeguarding employment and on training rather than pay increases. The packages provide for collectively agreed short-time working and provide for a new scheme of ‘training leave’. Agreements reached in Baden-Württemberg and North-Rhine Westphalia in February 2010 served as pilot agreements for all other bargaining regions.

  • 10 May 2010
    Bulgaria: Progressive social plan agreed at Carlsberg Bulgaria

    In February 2010, management and trade unions at Carlsberg Bulgaria signed an agreement for a social plan to accompany the company-level collective agreement. The social plan includes a range of activities related both to the company’s human resources and sustainable development of the regions where Carlsberg subsidiaries are operating. The activities will be implemented through partnership with trade unions and information and consultation mechanisms.

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