Highlights, 05 Feb 2010

05 Feb 2010
Belgium: Final stage on way to liberalisation of Belgian Post
Belgian Post is entering the final stage of preparation for the full liberalisation of the postal services market, scheduled to take place by 1 January 2011. As part of this process, the government has issued its final rules, which contain a number of social clauses. Although a collective agreement was signed with the trade unions for this final stage, conflict has arisen over the introduction of ‘assistant’ delivery worker positions.
05 Feb 2010
Ireland: End of social partnership as public sector talks collapse
Ireland’s 22-year-old system of social partnership effectively fell apart on 4 December 2009, after the government announced that talks with the public sector trade unions on an agreed method of securing a €1 billion reduction in the public pay bill had failed. The public sector trade unions were disappointed with this outcome and have indicated that they will be advocating a sectoral response to the breakdown of the talks.
05 Feb 2010
Czech Republic: Farmers protest as Czech agriculture declines
Farmers in the Czech Republic organised several protests during 2009 to highlight their difficult circumstances. Prices for milk have decreased below the production cost, prompting farmers to pour thousands of litres of milk into fields in protest. Further demonstrations were organised in December 2009 against the state budget for 2010, which planned to cut the budget for the Ministry of Agriculture. Moreover, the sector is facing serious demographic challenges.
05 Feb 2010
Romania: Trade unions reject austerity measures in public sector
In an effort to reduce the budget deficit, the Romanian government adopted, in November 2009, a new act providing for substantial reorganisation and rationalisation measures in the public sector. The new law provides for significant job cuts, along with the possibility of compulsory unpaid leave of 10 days for public sector employees and reduced working hours. Trade unions remained strongly opposed to the law, while opposition parties questioned its constitutionality.
03 Feb 2010
Denmark: Difficult collective bargaining in light of economic crisis
The battle lines were sharply drawn when the social partners in the private sector in Denmark started a new collective bargaining round in January 2010, against the background of the economic crisis. The employers aim to secure the country’s competitiveness in the global market, while the employees seek an increase in real wages and social improvements. One possible outcome is a breakdown in negotiations followed by a general conflict across economic sectors.
26 Jan 2010
EU Level: ETUC criticises EU finance Council’s recommendation to cut public spending
The economic crisis and subsequent recession have led to a major increase in unemployment across Europe. The best strategy to reduce unemployment remains contentious. Although the Council of the European Union favours a phased approach towards cutting public spending by 2011, the European Trade Union Confederation (ETUC) favours an increase in spending to secure further economic recovery. Some small and medium-sized enterprises agree with ETUC.
26 Jan 2010
Czech Republic: Czech Airlines struggles to survive economic crisis
Czech Airlines is facing a difficult economic outlook, with a loss exceeding CZK 2 billion (about €76 million) expected for 2009. The airline’s poor outlook is attributed to a dramatic drop in the number of passengers and lower price air tickets. As a result, pay and job cuts have been implemented at the company. Moreover, in a dramatic move, the management of the company resigned and have been forced to forego the receipt of bonuses.
26 Jan 2010
Estonia: Employers oppose change in sickness cash benefit system
In July 2009, a new system of sickness cash benefits was introduced, in order to cut the state budget during the recession. The employer organisations opposed the new system at its approval stage in the summer. In October, the Estonian Employers’ Confederation consulted with the Chancellor of Justice arguing that the new system contradicts the constitution. The chancellor agreed, although no considerable changes have been made in the regulations so far.
19 Jan 2010
EU Level: Social partners look at impact of climate change on employment
In the run-up to the climate conference, which was due to take place in Copenhagen in December 2009, the social partners at EU level have been considering the relationship between climate change and employment policies. In particular, they are calling for climate change initiatives to take account of the need to sustain employment, not only creating new jobs but also ensuring that workers possess the skills to work in new, greener jobs.
19 Jan 2010
Netherlands: KPN sets example by appointing women to key executive positions
Telecommunications company KPN has taken the lead as the first group to exclusively invite women to apply for executive positions. In doing so, the company is taking a step further than the Dutch House of Representatives, which adopted a proposal of the governing Labour Party in October 2009 to introduce a target of 30% for women in executive positions in large companies. A manifesto drafted by 240 women in executive positions calls for a quota of 40%.
19 Jan 2010
France: Citizens vote against change in legal status of La Poste
In order to mark their opposition to the change in legal status of La Poste, which is the subject of a draft bill, a group of associations, trade unions and political parties organised a citizens’ consultation on 3 October 2009. More than 2.3 million citizens took part, with 90% of them voting against the measure. The initiative highlights French people’s strong attachment to local public services, as well as a growing appetite for more direct forms of democracy.
19 Jan 2010
Spain: Divergence over employment policies lead to breakdown in social dialogue
Social dialogue is considered as having officially broken down in Spain. Only a year has elapsed since the social partners and the government signed a joint statement on consolidating social dialogue and viewing it as ‘one of the most important assets of our model of labour relations’. It appears, however, that the proposals of the employer organisations have caused an apparently irreconcilable rift with the government and trade unions, leading to a complete breakdown in dialogue.
19 Jan 2010
Poland: Police officers protest against non-payment of social benefits
For several months, Polish police officers have been complaining that they are not receiving overdue social benefits on top of their regular salaries. These benefits comprise a significant part of the take-home pay of the uniformed services. Despite calls from trade unions, the government has not guaranteed payment of the benefits. Thus, a protest was held on 1 December 2009, attended by several thousand police officers and representatives of the European Confederation of Police.
19 Jan 2010
Italy: Agreement renewed in information technology sector
In October 2009, all parties in the information and communications technologies sector agreed on the renewal of the nationwide collective agreement for employees of telecommunications companies. The agreement covers 160,000 workers in the sector and provides for pay increments. It also introduces innovations in relation to part-time work, leave provisions, supplementary bargaining and the grading of call-centre workers. The trade unions welcomed the agreement.
19 Jan 2010
Bulgaria: Conflicting reactions to 2010 draft budget
The social partners’ reactions to the 2010 draft budget proved to be divided at a meeting of the National Council for Tripartite Cooperation in October 2009. The trade union side contends that the government is transferring the burden of the crisis to workers and the poor. Despite their initial support, the employers believe that the macroeconomic framework is rather optimistic and that it lacks real focus in finding ways to emerge from the crisis.
19 Jan 2010
Norway: Increased sickness absenteeism fuels debate over sick pay scheme
Sickness absenteeism in Norwegian working life rose by about 10% in 2009 compared to 2008; government expenditure on sickness benefits has thus increased substantially. The Norwegian Prime Minister emphasised in November 2009 the need to find measures by which to reduce sickness absence levels, but stressed that it will not involve abandoning the present scheme which provides full pay compensation during illness.
18 Jan 2010
Sweden: Crisis in automotive sector puts industrial relations under strain
The Swedish automotive sector has been hit hard by the economic recession, witnessing a considerable decline in jobs and production, and is currently facing major challenges as both Saab and Volvo Cars are for sale. The social partners have criticised the government for being too passive and for not taking the actions needed to save jobs. However, the government wants to avoid supporting individual sectors, arguing that employees will be protected by the social welfare system.
18 Jan 2010
Poland: Social partners to implement agreement on harassment and violence at work
Six social partner organisations met in October 2009 to negotiate the implementation of the European framework agreement on harassment and violence at work in Poland. Both sides confirmed their commitment to the negotiations and agreed that, although the dialogue is autonomous, it may be necessary to prepare labour law recommendations for the government. The social partners also pointed to different barriers to implementing the agreement.
18 Jan 2010
United Kingdom: Social partners react to planned public spending cuts
In December 2009, the Trades Union Congress (TUC) and the Confederation of British Industry (CBI) outlined their positions on the public spending cuts proposed by all three main UK political parties in the run-up to the general election due in 2010. The TUC fears that spending cuts will lead to job losses, deteriorating employee terms and conditions as well as poorer service provision in the public sector. The CBI believes that cuts are necessary to restore the economic health of the UK.
17 Dec 2009
Estonia: Healthcare workers protest against cuts in spending
In October 2009, two trade unions representing healthcare workers held a small demonstration in protest against government plans to cut healthcare spending. The cuts will prolong hospital waiting lists and reduce the salaries of doctors and healthcare workers. The trade unions argue that this will cause another wave of migration of healthcare workers to other countries; however, the employers have approved of the proposal.
17 Dec 2009
Malta: Employers protest against mandatory cost of living allowance
In their protests about the mandatory wage increase to be announced as part of the budget for 2010, the employer organisations have called for a review of how this increase is to be given to workers. In response, the government and trade unions were uncompromising, thus rejecting the employers’ demands. The issue is due to be discussed at the Malta Council for Economic and Social Development.
17 Dec 2009
Germany: New collectively agreed minimum wage for industrial cleaners
In October 2009, following 10 days of strike action, the bargaining parties in the industrial cleaning sector reached a new collective agreement on pay. The agreement covers some 860,000 workers. It provides for general pay increases in January 2010 and 2011, resulting in minimum hourly wage rates of €8.55 in western Germany and €7.00 in eastern Germany. Both parties want the government to extend these agreed minimum wage rates to all employers in the sector.
02 Dec 2009
Lithuania: Unions organise protest actions against cuts in public sector pay
On 1 October 2009, four sectoral trade unions and the Pensioners’ Party simultaneously launched five protest actions near the parliament and four government ministries. The protests arose due to dissatisfaction with current government policy seeking to match budget revenue with expenditure, which will result in significant salary cuts for public sector employees and a possible reduction in social welfare benefits.
02 Dec 2009
Germany: Companies strive to maintain employment in economic crisis
The manufacturing sector in Germany has been more severely affected by the economic crisis than banking, where the crisis began. Nonetheless, only few companies adversely affected have laid off workers, with most companies freezing recruitment plans and introducing cost-cutting programmes instead. Efforts to avoid dismissals are also reflected in the fact that about one in five companies have introduced short-time working or temporarily cut wages or working hours.
02 Dec 2009
United Kingdom: Strikes at Royal Mail called off as negotiations continue
In October 2009, postal workers at Royal Mail voted to take nationwide industrial action, escalating an ongoing dispute over working conditions and modernisation. Four 24-hour stoppages took place before talks between Royal Mail and the Communication Workers’ Union produced an interim agreement. Under the agreement, no further strikes are to take place during negotiations on a longer-term deal to enable the agreed implementation of further modernisation from early 2010.
02 Dec 2009
France: New law promotes job mobility of civil servants
A law adopted in July 2009 promotes occupational mobility in the civil service by consolidating possibilities of secondment, outplacement and integration of civil servants in jobs unrelated to their previous position. It also increases possibilities to combine part-time jobs, use temporary agency staff, as well as recruit employees under private law employment contracts. Trade unions have denounced this process of rendering public jobs more flexible.
20 Nov 2009
EU Level: General Motors ditches plan to sell Opel and Vauxhall to Magna
After months of negotiations, on 3 November 2009 General Motors abandoned the plan to sell its European subsidiaries to the consortium composed of the Canadian-based automotive supplier Magna International and Russia’s Sberbank. At this point, the European Metalworkers’ Federation insists that General Motors should enter into talks with the European Works Council and the European trade unions without delay.
20 Nov 2009
France: New law widens scope of Sunday trading
A new law increases the possibilities of obtaining dispensation from Sunday being a rest day in retail outlets in tourist zones and areas of ‘exceptional consumption’. In some cases, exemptions are automatic and the law does not provide for any special compensation for the employees affected. In other cases, administrative authorisation is given under certain conditions. The government is hoping to boost consumption; however, trade unions are among those opposed to the bill.
20 Nov 2009
Austria: New liability rules to tackle ‘social fraud’ in construction
In September 2009, new liability regulations came into effect in Austria’s construction industry. Accordingly, construction companies that are subcontracting work to other companies are now liable for the subcontractors’ social insurance payment duties. The new legislation aims to encourage companies to use only credible subcontractors, thus preventing the practice of ‘social fraud’. The social partners, who were involved in the drafting procedure, appear to be highly satisfied with the new regulations.
10 Nov 2009
EU Level: Court grants right to compensatory holiday leave in cases of sickness
Workers who fall ill while on annual leave or whose sickness prevents them from taking annual leave have the right to compensatory holiday leave, according to a ruling of the European Court of Justice (ECJ). The ECJ has concluded that neither national laws nor collective agreements can deny an entitlement to deferred annual leave where a worker requests it. The case raises important issues regarding interpretation of the working time directive and also builds on a previous ECJ ruling.
10 Nov 2009
Hungary: Constitutional Court ruling paves way for new social dialogue law
Hungary’s parliament has passed several acts that regulate the operation of national tripartite forums and the bipartite sectoral social dialogue committees, reducing their previous functions of public power to consultation. The move followed a Constitutional Court ruling that revoked the co-determination right of social partners on certain issues. With the passing of these acts, the criteria of representativeness have also been enacted.
10 Nov 2009
United Kingdom: TUC calls for urgent revision of EU posted workers directive
The annual conference of the Trades Union Congress, held in September 2009, voted for a resolution that criticised the UK’s application of the EU posted workers directive. The resolution calls for the urgent revision of UK law and practice and the EU directive itself, so that existing collective agreements are not undermined. However, it seems unlikely that the government as well as employer organisations will support such measures.
26 Oct 2009
Latvia: Healthcare sector hit by recessionary cutbacks
One of the sectors particularly affected by budgetary cutbacks arising from the economic recession is Latvia’s healthcare sector. As well as a reduction in funding, the sector is also undergoing significant reorganisation, with large-scale job losses, reduced services and the merging of institutions. While the government believes that its cuts are justified, experts have accused the state of incompetence and of adopting a linear spending cuts policy.
26 Oct 2009
Sweden: Proposed law to protect personal privacy at work
The Swedish government has made a new legislative proposal on the protection of personal privacy in working life, with the help of a special commission set up to evaluate the current legislation. The proposal sets out mainly five stricter regulations on surveillance or control measures used by employers. The trade unions have in general reacted positively to the proposal, but the employer organisations are very critical of the content of the proposal.
26 Oct 2009
Spain: Green light for new unemployment protection measure
In September 2009, the Spanish parliament approved a new €420 monthly unemployment payment, to be granted to people whose unemployment benefit has ceased since 1 January 2009. The measure has secured the support of almost all political parties and the trade unions, although the Popular Party referred to it as a palliative measure that will not help to boost employment.
14 Oct 2009
United Kingdom: Social partners seek action on youth unemployment
In August 2009, the UK government published figures showing that the number of 18–24-year-olds in the UK not in education, employment or training rose steeply in the second quarter of 2009. Both the Trades Union Congress and the Confederation of British Industry have called on the government to fund extra youth apprenticeships to help tackle the problem, while the employer body has developed a five-point plan to tackle youth unemployment.
14 Oct 2009
Finland: Technology sector agreement first in new bargaining round
The first new collective agreement in Finland’s latest bargaining round has been negotiated in the technology industry. The three-year agreement between the Federation of Finnish Technology Industries and the Metalworkers’ Union takes effect in October 2009, covering about 125,000 employees. The social partners have widely welcomed the agreement, which provides for a moderate pay increase, viewing it as a successful opening in a difficult bargaining round.
14 Oct 2009
Czech Republic: Reduced working week may stem unemployment growth
In an attempt to reduce unemployment, the Czech state is preparing an option for companies to introduce, under certain circumstances, a four-day working week. A working group, comprising representatives of the ministries of labour and finance, trade unions and employers, proposes that staff on compulsory leave should receive 60% of their salary from the employer and 20% from the state. This strategy would be cheaper than paying unemployment benefits.
05 Oct 2009
United Kingdom: 48-hour limit on junior doctors’ weekly working hours takes effect
From August 2009, as a result of regulations reflecting the requirements of the EU Working Time Directive, trainee doctors are now covered by the statutory 48-hour limit on average weekly working hours. Some doctor organisations have expressed concern that the National Health Service is ill-prepared for the change. They argue that, without adequate preparation, reduced working hours could adversely affect training for junior doctors and patient care.
05 Oct 2009
Romania: One-day strike in public sector over new pay bill
After about six months of negotiations, on 15 September 2009, the Romanian government forwarded to the parliament the draft framework on public employees’ unitary pay law. The reforms triggered discontent among staff in education, health and public administration. A total of 11 trade union federation representatives in the public sector have set up an alliance and threatened a series of protests, culminating in a one-day general strike on 5 October 2009.
05 Oct 2009
Belgium: Milk producers take strike action against low prices
In recent months, Belgian milk producers have organised several strike initiatives in protest against the very low price of milk. Farmer federations are denouncing the EU deregulation policies, as well as the low prices imposed by retailers which have obliged producers to sell their products at a loss. An agreement reached by Flemish farmer representatives seeks to help producers in the short term; however, the agreement has been rejected by Walloon farmer organisations.
25 Sep 2009
Germany: New package of agreements for social and childcare workers
In late July 2009, following months of industrial dispute, the United Services Union and the German Union of Education agreed with the Municipal Employers’ Association on a new package of agreements covering some 220,000 public employees working in kindergartens, day-care centres, as well as the youth welfare service and social agencies. The agreements include provisions on occupational health protection and a grading system providing for higher wages for most employees.

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28 January 2010 - We are deeply saddened to learn of the death of Professor Franz Traxler. Our sympathy to his family and colleagues at the Department of Industrial Sociology of Vienna University.
Seminar: The role of social partners in continuing vocational training
Workshop: Industrial relations in the EU and other global and emerging economies. See also IR: the global picture