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July 1998

• 28 Jul 1998
  Austria: New training measures to absorb 1998 and 1999 school leavers

  The Austrian government, at the behest of the national social partners, is prepared to spend ATS 900 million in 1998 and again in 1999 on measures to absorb school leavers into employment and training. From 2000, the demographic "bulge" will have shrunk and so no more measures will be required.

• 28 Jul 1998
  Austria: Negotiations continue over civil service reforms

  The Austrian Government and the public service trade union, GÖD, have been negotiating a partial reform of tenure and salaries in the civil service, to be effective from 1 January 1999. While they had basically reached agreement on pay by summer 1998, they are still at odds over positions to be reserved for tenured staff.

• 28 Jul 1998
  Belgium: Active use of unemployment benefits - initial results and union unease

  Belgium's policy of reducing unemployment through using unemployment benefits to fund work is going well. After a careful start, it received a boost in April 1998 from the National Action Plan for employment prepared by the Belgian Government in line with the EU Employment Guidelines for 1998. New forms of activity based on service jobs are now being transposed into legislation, and the trend is towards standardisation of rules and procedures. However, this expansion raises many questions among trade unions.

• 28 Jul 1998
  Belgium: Central Economic Council to incorporate representatives of non-profit sector

  Belgium's Central Economic Council unanimously adopted an opinion in July 1998, accepting membership of representatives of the voluntary and social services sector - the "non-profit sector".

• 28 Jul 1998
  Belgium: National agreement signed on workplace video surveillance

  The social partners represented on Belgium's National Labour Council signed in June 1998 the country's first collective agreement regulating video surveillance at the workplace.

• 28 Jul 1998
  Germany: Teachers' union abandons talks over new service sector organisation

  In July 1998, the German Teachers and Science Union (GEW) abandoned talks with five other German trade unions on the creation of a new single service sector union organisation.

• 28 Jul 1998
  Germany: Research examines gap between actual and collectively agreed wages in 1997

  Recent research shows that in 1997, 17% of private establishments in eastern Germany and 49% in western Germany pay more than the collectively agreed wage rate, the average "wage gap" in these firms being 11.4%. This feature summarises the key findings of the analysis.

• 28 Jul 1998
  Germany: Interim review finds Bavarian employment pact successful

  On 1 July 1998, Bavaria's tripartite employment pact was reviewed by all parties involved and found successful. From June 1996 to June 1998, 153,000 jobs were saved and another 52,000 created.

• 28 Jul 1998
  Germany: Territorial employment pacts in Germany - the example of Zeitz

  According to a recent study by the Institute for Economics and Social Science (WSI), there were nine "territorial employment pacts" in Germany which were officially recognised by the European Commission in 1997. The most prominent of these pacts is probably that at Zeitz, which has Germany's highest regional rate of unemployment.

• 28 Jul 1998
  Germany: Agreement on the changeover to the euro in metalworking

  In June 1998, the bargaining parties in the German metalworking industry signed a new agreement which determines a procedure for the changeover from the Deutschmark to the euro within collective agreements.

• 28 Jul 1998
  Denmark: LO evaluates the 1998 collective bargaining round

  Denmark's 1998 collective bargaining round, which ended in a major strike and government intervention, underlined the trade union movement's need for improved communication and priorities, according to the LO union confederation. Furthermore, surveys indicate that the demand by workers for a sixth week of paid holiday, raised during the conflict, may not be as clear-cut as it seems.

• 28 Jul 1998
  Denmark: Early retirement once again on the agenda

  With new statistics showing that seven out of 10 Danes aged between 60 and 67 have taken early retirement, in summer 1998 employers once more called on the government to amend the early retirement scheme.

• 28 Jul 1998
  Denmark: European Commission questions Danish implementation of Directives through collective agreements

  The Danish agreement-based implementation of the EU-Directive on working time may be brought before the European Court of Justice.

• 28 Jul 1998
  Denmark: Clerical employees are stressed and burned out

  A trade union survey, published in summer 1998, indicates that stress is a widespread phenomenon among clerical employees in Denmark's municipal sector.

• 28 Jul 1998
  Spain: Working time and employment: the balance sheet so far

  Since autumn 1997, the reduction of working time as a means of creating employment has increasingly featured as a theme in Spanish industrial relations. The trade unions have begun to ensure that this issue is introduced on to the bargaining agenda at all levels, though by summer 1998 there have been few results and progress is proving difficult to achieve.

• 28 Jul 1998
  Spain: Progress in 1998 collective bargaining round

  In the first six months of 1998, collective bargaining in Spain made good progress, with well over 5 million workers covered by a new or revised agreement. Wage moderation prevails and some progress has been made in employment security. However, few agreements have been reached on working hours.

• 28 Jul 1998
  Spain: Spanish postal service semi-privatisated

  In June 1998, the Spanish Parliament passed a new law to reorganise the postal service in line with the 1997 EU Directive on postal services. Some trade unions and the left-wing opposition parties have rejected the legislation, but other unions have shown a more favourable attitude after negotiating certain amendments.

• 28 Jul 1998
  Spain: International conference examines company-level participation

  In July 1998, the Basque government organised an international conference on employee participation in companies, with the aim of improving motivation and involvement at work, competitiveness, quality and productivity. The conference drew a number of interesting conclusions.

• 28 Jul 1998
  Spain: Negotiations start on improvement of part-time work

  In July 1998, negotiations started between the Spanish Government and trade unions on improving the conditions for part-time employment, which is at present seriously discriminated against in comparison with full-time employment.

• 28 Jul 1998
  Spain: Negotiations aim to improve unemployment benefit cover

  In July 1998, Spanish trade unions and government opened negotiations over improving unemployment benefit cover for long-term unemployed people, which has deteriorated in recent years.

• 28 Jul 1998
  EU Level: The European social dialogue in commerce: an expanding agenda

  Approximately 16% of workers in the EU are employed in wholesaling and retailing, making commerce a key sector in terms of measures to encourage employment creation. There has been a long-standing concern in the European social dialogue in the sector over the improvement of standards in vocational training, particularly to enable workers to remain competitive and deal with new challenges, such as electronic commerce. For the last few years, the key priority of the dialogue has been employment, while other areas of activity include child labour, racism and xenophobia and preparations for the accession of new EU Member States. We review the position of the commerce dialogue in summer 1998.

• 28 Jul 1998
  EU Level: Euro-FIET adopts resolution on achievement of Social Europe

  At its conference in March 1998, Euro-FIET - which brings together trade unions representing private sector services and white-collar workers from across Europe - adopted an important resolution setting out its priorities for the European social dialogue and European Works Councils

• 28 Jul 1998
  EU Level: UNICE adopts position on international labour standards

  In June 1998, the European employers' organisation, UNICE, adopted a position paper in which it welcomes the adoption of a declaration on fundamental human rights by the ILO. The declaration calls upon the ILO's 174 member nations to respect a number of core ILO Conventions.

• 28 Jul 1998
  EU Level: Social affairs ministers reaffirm commitment to eliminate sex discrimination

  Meeting in Austria on 8-10 July 1998, EU social affairs ministers reaffirmed their commitment to a "mainstreaming" policy in order to achieve greater equality of opportunity between men and women in all areas of life.

• 28 Jul 1998
  EU Level: UNICE rejects the inclusion of social criteria in procurement

  In a position paper issued in June 1998, UNICE underlined its opposition to the inclusion of social criteria in public procurement tenders. While all companies should respect legislation in this area, inclusion of such criteria in public tenders is considered as unnecessary interference.

• 28 Jul 1998
  EU Level: Employers may re-evaluate decision not to negotiate on national information and consultation

  In July 1998, as a leaked Commission proposal for a draft Directive on national information and consultation circulated in Brussels, the European employers' organisation, UNICE, hinted at a willingness to go back to its member federations to see if a mandate for negotiations on the issue, on the basis of the Maastricht social policy Agreement, could be achieved.

• 28 Jul 1998
  EU Level: ECJ rejects UEAPME's case against the parental leave Directive

  In June 1998, the European Court of Justice rejected a case brought by UEAPME, the European organisation which seeks to represent SMEs. UEAPME had claimed that the EU Directive on parental leave should be annulled or ruled inapplicable to its members, as it had been excluded from the negotiating process for the agreement on which the Directive was based.

• 28 Jul 1998
  Finland: Union survey suggests that a quarter of Estonians are willing to work in Finland

  In March 1998, Finland's SAK trade union confederation commissioned a survey, enquiring about the willingness of Estonians to move to Finland and their views on some labour market and industrial relations issues. According to the results - published in June - over a quarter of those interviewed would be at least "quite willing" to work in Finland. While SAK is worried about the implications for Finnish jobs, employers doubt whether Estonians are really willing to move to Finland for the sake of work.

• 28 Jul 1998
  Finland: TT and STTK disagree sharply on working time

  Working time is probably the most burning labour market issue in Finland during summer 1998. A survey indicates that members of the STTK trade union confederation would be prepared to reduce their working time for the sake of promoting employment, even if this meant a diminished pay level, while the TT employers' organisation rejects the idea of any general cut in working time.

• 28 Jul 1998
  Finland: Paid overtime increases by 6%

  In Finland, 6% more paid overtime was performed in 1997 than in the previous year. In addition, a remarkable proportion of higher-level white-collar workers in the private sector do overtime without compensation.

• 28 Jul 1998
  France: Family allowance benefits for all reinstated

  The French Government has recently reviewed its position regarding the means-testing of eligibility for family allowance benefits. In June 1998, it decided to reverse the measures in this area it had adopted a year previously and to reduce the income tax allowance allocated to families - much to the satisfaction of trade unions.

• 28 Jul 1998
  France: Collective bargaining in 1997 examined

  In June 1998, France's tripartite National Commission for Collective Bargaining reviewed the Ministry for Employment and Solidarity's report on the state of collective bargaining during 1997. The report highlights stability in intersectoral bargaining, a noticeable loss of impetus in sectoral bargaining and a strong increase in company-level bargaining (up 27%), mainly due to the implementation of the Robien law on working time.

• 28 Jul 1998
  France: Debate over mandating employees to conclude collective agreements

  The May 1998 legislation introducing the statutory 35-hour working week in France has given a new emphasis to the "mandating" procedure in collective bargaining. This mechanism, which allows a trade union to appoint an employee to negotiate and sign agreements in companies with no union delegates, aims to meet the concerns of both unions and employers, by compensating for the weak and dispersed union representation within companies. While the extent of company bargaining with these mandated employees is still limited, the new working time law may well provide a boost, all the more so as most unions have made mandating part of their campaign to cut working hours.

• 28 Jul 1998
  France: 3,550 job losses in state-run arms company

  On 10 July 1998, the management of the French publicly-owned arms manufacturing group, GIAT Industries, officially announced a redundancy programme for 1999-2002 comprising 3,550 job losses and the closure of three factories. Trade unions unanimously rejected this plan at a meeting of the central works council.

• 28 Jul 1998
  France: Government and unions sign agreement on primary school teacher careers

  An agreement on the status of primary school teachers in France was signed on 10 July 1998 by ministers and two trade unions. The deal seeks to end a long-running dispute about these teachers' career development.

• 28 Jul 1998
  France: GAN acquired by Groupama

  In July 1998, the French Government announced that the publicly-owned GAN insurance group is to be sold off to the mutual insurance concern, Groupama. The trade unions, for the most part, were satisfied with the decision in favour of what they saw as the "best bidder" in social and employment terms.

• 28 Jul 1998
  France: Strike hits Disneyland Paris

  Disneyland Paris experienced its longest strike in June-July 1998. At the heart of the conflict were pay claims and especially recognition of "performing artist" status for the Mickey Mouses, Goofies and Snow Whites who parade daily in the park.

• 28 Jul 1998
  Greece: Bill on regulation of labour relations

  In June 1998, the Greek Minister of Labour and Social Security announced a bill on the "regulation of labour relations and other provisions", which seeks to regulate various aspects of industrial relations, both in the private and public sector.

• 28 Jul 1998
  Greece: New Civil Servants' Code introduced

  In June 1998, a new Civil Servants' Code was presented to the Greek Parliament, changing civil servants employment conditions in areas such as grading and disciplinary rules. The Code has received a mixed response from trade unions.

• 28 Jul 1998
  Greece: First sectoral agreement signed for security personnel

  In June 1998, a collective agreement was signed for workers all over Greece employed in enterprises providing security services and security systems. This is the first agreement for the sector, and covers approximately 10,000 workers.

• 28 Jul 1998
  Ireland: Management-union partnerships are rare in Ireland

  There is little evidence that Irish employers have moved to establish partnership arrangements with trade unions for the handling of workplace change. According to research published in 1998, unions would seem to be exercising considerably less influence in the Irish workplace than might have been assumed. Collective bargaining is confined in the main to areas where unions would have been involved traditionally - changes in pay, working practices and working hours. Employers' preferred approach for introducing change is through management prerogative and, to a lesser extent, through direct employee involvement.

• 28 Jul 1998
  Ireland: Telecom Eireann employees buy into ESOP

  In July 1998, an Employee Share Ownership Plan giving them a 14.9% stake in the company was approved by workers at Telecom Eireann, the Irish state-owned telecommunciations concern.

• 28 Jul 1998
  Ireland: Local bargaining trends show degree of employer flexibility

  An early analysis of private sector agreements on the 2% local bargaining element of Ireland's current three-year national pay agreement was published in July 1998. It reveals that almost half of the companies surveyed are paying the increase on a date earlier than they are obliged to.

• 28 Jul 1998
  Italy: Agreement introduces new system at Poste Italiane

  In July 1998, trade unions and management at the recently-formed Italian postal services company, Poste Italiane SpA, signed an agreement introducing a new private sector-type system of employment conditions, aimed at rewarding workers which meet quality and other targets.

• 28 Jul 1998
  Italy: Experimental minimum integration income scheme introduced

  In June 1998, following tripartite discussions, the "minimum integration income" - a new form of welfare benefit aimed at combating social exclusion - was approved on an experimental basis.

• 28 Jul 1998
  Italy: Company-level bargaining underway in the food sector

  A particularly important stage in the renewal of company-level agreements in the Italian food sector started in June 1998. As usual, Galbani (part of the Danone group) has played a "pace-setting" role, followed swiftly by Nestlè, introducing important new provisions in the areas of industrial relations, working time and performance bonuses.

• 28 Jul 1998
  Italy: Trade unions seek to represent workers in new forms of employment

  During 1998, Italy's trade union confederations have created a number of organisations to provide representation for workers involved in new forms of employment relationships - such as temporary agency workers and those in consultancy and "coordinated" freelance work. The aim is to introduce protection for these workers through collective bargaining as well as through legislation.

• 28 Jul 1998
  Luxembourg: Agreement in sight on bus drivers' hours

  After lengthy negotiations, a Luxembourg government proposal to reduce the daily "duty time" of bus drivers from 12 to 11 hours was accepted by trade unions in June 1998.

• 28 Jul 1998
  Luxembourg: Mediation breaks down in civil service pensions dispute

  In July 1998, the mediator in Luxembourg' civil service pensions dispute acknowledged that it was impossible to reconcile the parties, and thus presented them with two proposals for their consideration.

• 28 Jul 1998
  Netherlands: Reforming the employee benefit system: how much privatisation?

  In July 1998, during the negotiations to form the Netherlands' second "purple coalition" cabinet, the Labour Party, Social Democrats and Liberals agreed to privatise the administration of unemployment and disability benefits almost completely. An exception was made for the assessment of the claims themselves, which will be carried out by a public body. This outcome can be seen as a breakthrough in the process of reforming this system, which has been underway since the early 1990s. It also reflects the ideology of the governing coalition, in which the parties are willing to meet one another halfway.

• 28 Jul 1998
  Netherlands: Churches rally against the 24-hour economy

  In June 1998, churches in the Netherlands began a campaign against the "24-hour economy", claiming that this phenomenon damages the well-being of society. They have asked the Government not to wait, but to take immediate action. The initiative received both support and criticism. However, research indicates that today's "stressed society" is not a result of the 24-hour economy but of the way in which people live their lives.

• 28 Jul 1998
  Netherlands: Social partners criticise new Government's coalition agreement

  Both employers' organisations and trade unions have been critical about the July 1998 agreement forming the basis of the Netherlands' second "purple coalition" Government made up of the Labour Party, the Social Democrats and the Liberal Party.

• 28 Jul 1998
  Netherlands: Unrest hits food sector

  In July 1998, the food sector in the north of the Netherlands was shaken by labour unrest. First, the dairy concern, Friesland Coberco Dairy Foods announced the closure of six cheese factories within three years. Meanwhile, employees at Douwe Egberts in Joure went on strike to protest against the on-call days they had to work. After a strike lasting several days, the management agreed to the union's demands.

• 28 Jul 1998
  Netherlands: Privatisation of Dutch Sickness Benefits Act said to conflict with European Social Charter

  The privatisation of the Sickness Benefits Act in the Netherlands is in conflict with the European Social Charter. This was the conclusion reached in July 1998 by the Committee of Independent Experts of the Council of Europe responsible for ensuring compliance with the Charter. The FNV trade union confederation has proposed that the Dutch parliament investigate the matter further.

• 28 Jul 1998
  Norway: AF union confederation disintegrates further

  Another five member trade unions decided in June 1998 to leave the AF confederation in order to line up with Akademikerne, Norway's new confederation for academically qualified staff. Since autumn 1997, 12 unions with 90,000 members have decided to leave AF.

• 28 Jul 1998
  Norway: Revised national Budget accepted in Parliament

  The revised national Budget received a majority vote of confidence in the Norwegian Parliament on 19 June 1998. Norway has experienced significant economic growth in recent years, but signs of increasing pressures and capacity constraints on the national economy are now emerging. The measures proposed in the revised Budget are seen by the social partners as insufficient to deal with the problems in the economy.

• 28 Jul 1998
  Norway: Growth in sickness absence slows

  After several years of increasing sickness absence in Norway, new figures show that the trend is stabilising in 1998. The period during which employers pay sickness benefits has been extended from 14 to 16 days, taking effect from 1 April 1998, but there was no majority in Parliament for a government proposal to further extend the period. Nor is there a political majority for changes to the present arrangements allowing employees full pay compensation during sickness absence.

• 28 Jul 1998
  Norway: Home-based teleworking may soon be regulated by law

  Home-based telework in Norway may soon be regulated by the Working Environment Act according to a Green Paper published by the Ministry of Local Government and Regional Development in summer 1998. The implication is that employees working at home will be safeguarded in the same way as normal employees. The NHO employers' organisation is critical of such an addition to the legal framework.

• 28 Jul 1998
  Norway: New collective agreements in the Norwegian oil sector

  The most important agreements in the Norwegian oil sector were concluded in June 1998 without resort to strikes or lock-outs.

• 28 Jul 1998
  Norway: Union dispute over the right to organise in newly privatised enterprises is resolved

  In June 199, the LO trade union confederation decided that members of its affiliated unions who are employed in newly privatised public sector enterprises may choose to keep their membership in their original (public sector) union, if a majority of the members concerned agree, rather than transferring to the equivalent private sector union.

• 28 Jul 1998
  Norway: Social partners sceptical about child benefit reform

  In June 1998, the Norwegian Parliament secured support for the introduction of a cash child benefit scheme for parents with small children. The general view among the social partners is that the scheme is an expensive reform, and the NHO employers' organisation is worried that it will lead to a reduction in the numbers of people employed in particular sectors of the labour market.

• 28 Jul 1998
  Portugal: Transposition of the young workers Directive and the child labour problem

  A preliminary draft bill to implement the EU young workers Directive is under discussion in Portugal in mid-1998. However, transposition of the Directive will not resolve some important issues relating to child labour, notably when performed at home.

• 28 Jul 1998
  Portugal: Social partners discuss new labour laws

  Over the first half of 1998, the Portuguese Government submitted a set of draft bills to be discussed by the social partners within the framework of the Standing Committee for Social Concertation. The proposals would introduce changes in some particularly sensitive areas, such as part-time work and the legal concept of remuneration, and opposition has arisen on these points, notably from the CGTP trade union confederation.

• 28 Jul 1998
  Portugal: Retail businesses in Oporto negotiate new working time arrangements

  A new collective agreement, signed in summer 1998, provides for shops to open on Saturday afternoons in Oporto, Portugal, though the new working hours will apply only to workers recruited from 1999.

• 28 Jul 1998
  Portugal: First step in privatisation of civil service employment relations

  New legislation which came into force in June 1998 allows for a limited privatisation of employment relations in Portugal's civil service.

• 28 Jul 1998
  Portugal: Certification of lorry drivers transporting hazardous substances causes strike

  July 1998 saw a two-day strike by Portuguese lorry drivers transporting hazardous substances, who objected to licencing examinations. The strike ended with an agreement to change the certification system.

• 28 Jul 1998
  Sweden: Pay settlement preserves summer ice-cream for Swedes

  With the conclusion of a new pay agreement for stock-room workers and distributors in the ice-cream industry, a planned strike in the middle of the ice-cream season was called off in July 1998.

• 28 Jul 1998
  Sweden: New form of employment security for professional actors

  During the past decade, members of the acting profession in Sweden have experienced ever-increasing difficulties in earning their living. According to an official report, this is partly an effect of public labour market policy, together with collectively agreed provisions on temporary and permanent employment contracts. In June 1998, Parliament adopted a bill which will lead to a change in both.

• 28 Jul 1998
  Sweden: LO concerned about measures promoting self-employment

  The number of self-employed people is increasing in Sweden. Legally, they are treated as if they were enterprises and trade unions tend to place them on the same footing as employers. However, in a report issued in May 1998, the LO union confederation considers the possibility of accepting self-employed people as union members. LO is worried that ill-thought out measures promoting self-employment could lead to a large group of modern casual labourers without any form of employment protection.

• 28 Jul 1998
  Sweden: Employees ordered to pay SEK 1.5 million for competing with employer's business

  In June 1998, three employees who started a company competing with their employer's business were ordered by the Swedish Labour Court to pay the extraordinary sum of SEK 1.5 million in damages. For the first time, the Court applied the special provisions regarding the liability of employees in the Act on the Protection of Trade Secrets.

• 28 Jul 1998
  EU Countries: The impact of European Works Councils

  This comparative study gives a preliminary assessment of the impact of European Works Councils (EWCs) on industrial relations, both within multinational companies and in Member States' national systems. It also outlines the involvement of social partners in the process of transposition and their views on the operation and possible future development of EWCs.

• 28 Jul 1998
  United Kingdom: The National Minimum Wage: Report of the Low Pay Commission

  June 1998 saw the publication of the report of the Low Pay Commission, set up by the UK's Labour Government to recommend the level of the forthcoming National Minimum Wage (NMW). It recommended an adult NMW of GBP 3.70 an hour from June 2000, with an initial rate of GBP 3.60 from April 1999.

• 28 Jul 1998
  United Kingdom: Corporate mergers and takeovers: lessons from the UK

  In the light of the growing trend of mergers and takeovers in continental Europe - with a number of high-profile examples occurring in 1997-8 - this feature examines recent evidence of the effects of corporate mergers and takeovers in the UK, indicating that improved performance and job security are not a necessary outcome.

• 28 Jul 1998
  United Kingdom: Whistleblowers' Charter becomes law

  New legislation came into force in the UK in July 1998, which aims to protect those employees who expose the wrongdoings of their employers

• 28 Jul 1998
  United Kingdom: The return of the productivity problem

  A government seminar held in June 1998 highlighted the UK's problem of low productivity, with new statistics suggesting that British productivity is half that of Japan and lags behind France and Germany.

• 28 Jul 1998
  United Kingdom: Information technology important for industrial relations

  A conference held by the UK's Institute of Personnel and Development in June 1998 highlighted the importance of information technology in the management of human resources.

• 28 Jul 1998
  United Kingdom: Public sector receives spending increase

  Two parts of the UK public sector - education and health - are to receive an increase in public spending, under a government review published in July 1998. However, the extent to which the benefits of this will filter through to employees is not clear.