Highlights, 31 Aug 2010

31 Aug 2010
Czech Republic: New government wants to reform Labour Code
The new coalition government in the Czech Republic has agreed on the need to reform the Labour Code in force since January 2007. Proposed changes include liberalisation of employment for a determinate period, reduced severance pay for those working for an employer for less than two years, and enhanced opportunities for companies to employ people on a so-called ‘contract for the performance of a work assignment’. Employee benefit changes are opposed by the trade unions.
31 Aug 2010
Germany: New national minimum wages for care workers
On 1 August 2010, new national minimum wages for care workers came into force in Germany. The employees covered will be entitled to an hourly minimum wage of €8.50 in western Germany, including Berlin, and €7.50 in eastern Germany. The minimum wages, declared binding under the Posted Workers Act, will affect between 520,000 and 560,000 caregivers out of a total of 810,000 care workers and will apply to all employees regardless of the country of origin of their employer.
31 Aug 2010
Bulgaria: Social partners agree regulation of home-based work
Social partners involved in the working group on home-based employment in Bulgaria agreed the draft of a bill at their latest meeting on 16 June 2010. It proposes a new section in the Labour Code and amendments to the Social Security Code and to the Law on Safety and Health at Work. The working group was set up by the National Council for Tripartite Cooperation in February 2010. There are different views about this sector’s regulation among trade unions, non-governmental organisations and employers.
24 Aug 2010
Italy: Industrial relations report for 2008–2009 launched
The latest annual industrial relations report for Italy and Europe launched on 14 July 2010 analyses the two-year period 2008–2009 – a time characterised by an economic crisis that had a major impact on employment worldwide. The report, which was welcomed by the social partners, looks first at the situation in Europe and then at changes in Italy, where reform of collective bargaining in particular has led to disagreements between the three main Italian trade unions.
24 Aug 2010
Sweden: Wage bargaining round for 2010 concludes
Sweden’s latest wage bargaining round has ended, and both employees and employers are claiming victory. A comparison of the social partners’ positions prior to the bargaining round and the actual outcome, however, shows that the picture is not at all clear-cut with some gains and losses on both sides. The biggest winner to emerge from the process, which affects the future wages of two million people, may turn out to be the bargaining model itself.
24 Aug 2010
Norway: Many working days lost to labour disputes in 2010 pay bargaining round
Most Norwegian collective pay agreements were renegotiated during the spring and early summer of 2010. General pay increases were awarded in all major agreement areas, and the gender pay gap was high on the agenda in the public sector negotiations. The 2010 wage settlement did, however, result in a significant number of working days lost to industrial disputes in both the public and private sectors. The most serious of these was a major municipal strike involving 44,000 workers.
17 Aug 2010
Bulgaria: Social partners agree on changes to Labour Code and Social Security Code
Bulgarian workers have until the end of 2011 to take any paid leave they may have accumulated in previous years, under amendments to the Labour Code. The economic crisis has meant that major changes have also been made to the Social Insurance Code concerning unemployment compensation and sick leave. According to the new agreement, for example, the first three days of sick leave will be paid by the employer and the remainder borne by the National Social Security Institute.
17 Aug 2010
Poland: Major national employer organisation changes name
In June 2010, the Confederation of Polish Employers officially announced it was changing its name to Employers of Poland. The confederation is the largest employer organisation in Poland and has been a member of the Tripartite Commission for Social and Economic Affairs since the commission’s inception in 1994. It is also the only central-level employer organisation on the commission. This is a summary of the organisation’s 20-year history.
17 Aug 2010
France: New law on employee relocation
On announcing redundancies, a French employer is obliged to propose alternative positions elsewhere within the company or group. This policy is not limited to vacancies within France – companies must look globally within their group. In the past, companies had proposed alternative vacancies in India or Romania, and had offered the worker the local wage. Now, a new law states that, for any job proposal out of France, companies will have to offer the same wage as that offered in France.
10 Aug 2010
Germany: Interim report on 2010 bargaining round
In July 2010, the Institute of Economic and Social Research presented its interim report on Germany’s 2010 round of collective bargaining which was strongly affected by the economic crisis. The study evaluates agreements concluded in the first half of 2010 which affect about 37% of all employees whose working conditions are determined by collective bargaining. The average annual increase in wages and salaries will be around 1.7% in 2010, well below the average of 2.6% in 2009.
10 Aug 2010
EU Level: New directive enhances social rights for self-employed workers
EU employment, social policy, health and consumer affairs ministers met in early June 2010 to discuss a range of employment-related issues. One of the main social policy innovations was a directive that will strengthen equality between self-employed men and women. The directive improves benefits, including maternity protection for self-employed women and female spouses of self-employed workers, and was subsequently adopted without debate by transport council ministers on 24 June.
10 Aug 2010
France: Reform of representativeness and social dialogue
The French Supreme Court ruled in March 2010 that the reform of the laws governing trade union representativeness approved by the French parliament in 2008 did not infringe International Labour Organization conventions or European law. At the same time, the government presented a bill to extend the reform to trade unions representing civil servants and workers in companies with fewer than 50 employees, who were not covered in the 2008 ‘Law on social democracy and working time reform’.
02 Aug 2010
United Kingdom: Employer organisation calls for tougher rules on strike ballots
In June 2010, the Confederation of British Industry published an agenda for the new coalition government in the area of employment relations and labour market regulation. As part of its agenda, the CBI called for tighter rules governing strike ballots and for a shorter statutory period for redundancy consultation. The proposals were strongly criticised by trade unions. It remains to be seen how far the new government will adopt the ideas.
02 Aug 2010
Netherlands: Social partners agree on retirement age and pension schemes
In June 2010, the Dutch social partners agreed on new regulations governing the retirement age under the General Old-Age Pensions Act and pension schemes. In 2020, the retirement age and eligibility for company pension schemes will rise by one year to the age of 66 in line with increasing life expectancy. Pension schemes will become more flexible, so those wishing to stop working could opt for retirement at 65 years of age, but with benefit levels 6.5% lower.
02 Aug 2010
Belgium: New laws on representativeness in the national social dialogue
A new Belgian law has changed some rules governing the representativeness and participation of social partner organisations in the national social dialogue. Although rather technical, these new legal steps confirm on the one hand an ongoing evolution on the employer side and on the other hand try to improve the rules on trade union representativeness to counter longstanding criticism.
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.

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