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February 2006

• 24 Feb 2006
  Bulgaria: Controversy over length-of-service allowances

  In early 2006, relations between trade unions and employers in Bulgaria have been strained by the issue of statutory length-of-service allowances, which employers are obliged to pay workers. The International Monetary Fund (IMF) has called on the government to abolish the allowances, a position supported by employers' organisations but fiercely opposed by unions.

• 24 Feb 2006
  Spain: Government proposes new gender equality legislation

  In February 2006, the Spanish government consulted the social partners on the employment-related measures in a new draft gender equality law. The proposed legislation includes measures on fighting discrimination, allowing positive action measures in collective agreements, encouraging reconciliation of work and family life, promoting equality plans and fostering good practices.

• 24 Feb 2006
  Spain: Survey highlights employee turnover, poverty and gender pay gap

  The findings of a survey of living conditions in Spain, published in December 2005, highlight a number of issues of importance to current debate on employment and social policy. For example, the survey finds high employee turnover, affecting mainly the young, a high risk of poverty for people under 16 and over 65, and a wide pay gap between men and women.

• 24 Feb 2006
  Greece: Coca-Cola Decision on Restructuring/Redundancies Sparks Opposition

  In January Coca-Cola 3E announced restructuring that will involve the dismissal of around 150 workers. The company’s decision has sparked opposition not only from its employees and their trade union representatives, but also from the Greek General Confederation of Labor (GSEE).

• 24 Feb 2006
  Greece: Banking Sector Strife over Industry-wide Agreement

  In recent letters to the Greek Federation of Bank Employee Unions (OTOE), the heads of six major banks announced their intention not to sign the new industry-wide collective labour agreement but to go ahead and sign enterprise-level agreements. This decision sparked strong opposition from OTOE.

• 23 Feb 2006
  EU Level: Commission issues report on worker mobility in the enlarged EU

  In February 2006, the European Commission published a report on the free movement of workers in the EU since enlargement in 2004, and on the administrative, legal and technical issues related to the imposition of transitional restrictions on worker mobility from the new Member States by many oldMember States. Its main finding is that the free movement of workers has had a positive impact, although some countries may also have experienced higher levels of undeclared work.

• 23 Feb 2006
  Norway: Rules on minimum gender representation on company boards come into force

  On 1 January 2006, rules on gender representation on company boards came into force in Norway. The new regulations state that there should be a minimum proportion of both sexes on the board, of approximately 40%. Companies have until the end of 2007 to meet the requirements set by the new legislation.

• 23 Feb 2006
  Norway: Supreme Court rules in ownership transfer case

  On 31 January 2006, the Norwegian Supreme Court ruled in favour of the employee side in a transfer of ownership case filed against the Scandinavian airline, SAS. The employees concerned will now be entitled to compensation for lost pay and working time, as well as to retain employment rights lost as a result of changed employment conditions.

• 23 Feb 2006
  Estonia: Survey examines social partnership in enterprises

  A working conditions survey conducted in 2005 confirms that Estonia has a low level of trade union membership, accompanied by a relatively low level of collective bargaining coverage. In the majority of cases, wages, the duration of employment contracts and annual leave are negotiated individually, with only the issues of safety and working time more likely to be negotiated collectively. Workers’ involvement in the decision-making process is highest in the case of leave, followed by working time, changes in work organisation and occupational safety issues.

• 23 Feb 2006
  Lithuania: New rules proposed on illegal work

  In early 2006, Lithuania's National Labour Inspection (VDI) submitted a number of proposals to amend and supplement existing legislation , with the aim of achieving tighter regulation and control of illegal work. The proposals have been discussed in the Tripartite Council of the Republic of Lithuania, but the social partners and government have not so far been able to agree on the main issues.

• 23 Feb 2006
  Romania: New rules on registration of employees

  New rules on the obligation of Romanian employers to maintain a general employee record-keeping register will come into force in 2006 The changes aim mainly to simplify procedures, cutting bureaucracy and preventing fraud.

• 23 Feb 2006
  Poland: Employers list labour law obstacles to business activity

  In early 2006, the Polish Confederation of Private Employers Lewiatan (PKPP Lewiatan) published a document listing what it sees as obstacles to the development of business activity in Poland. Many of these obstacles relate to labour relations, and especially to the regulations governing matters such as working time, annual leave, collective agreements, health and safety, and temporary agency work.

• 23 Feb 2006
  Greece: Employers propose minimum wage exemptions

  In early 2006, as part of the discussions over a new National General Collective Agreement (EGSSE), the Federation of Greek Industries (SEV) has proposed that areas and/or industries with high unemployment rates be excluded from the minimum pay standards set in the EGSSE. Both the Greek General Confederation of Labor (GSEE) and the local Labour Centres in some of the areas concerned have expressed their opposition to the employers’ position

• 20 Feb 2006
  United Kingdom: Measuring up to equality - the TUC equality audit 2005

  In September 2005, the UK's Trades Union Congress published the results of its second biennial equality audit. This feature reviews the background to the exercise and reports on its main findings.

• 20 Feb 2006
  EU Level: Key EU industrial relations initiatives in prospect

  A number of important EU-level industrial relations initiatives are scheduled for 2006. These include the European Commission’s response to consultations with the social partners over handling restructuring and developing the role of EWCs, as well as new proposals on labour law reform, transnational collective bargaining and consolidating the EU’s information and consultation provisions

• 20 Feb 2006
  Germany: 2005 collective bargaining round examined

  In February 2006, the WSI research institute presented its annual report on Germany's 2005 collective bargaining round. The study evaluates collective agreements concluded in 2005, affecting some 7.3 million employees, or 38% of all those covered by a collective agreement. Another 5.7 million employees received pay increases in 2005 which had already been agreed in previous years. The average increase in wages and salaries was 1.6% in 2005, which was below the 2.0% increase of the previous year. According to the Federal Statistical Office, however, actual gross wages and salaries rose only by 0.5% in 2005.

• 20 Feb 2006
  Finland: Measures to reform pension system agreed

  The Finnish social partners agreed in January 2006 on new rules governing the investment of earnings-related pension funds. The funds are to invest more heavily in shares in a bid to achieve higher returns and thus ease the upward pressure on pension contributions. In return for accepting the higher levels of investment risk associated with shares, trade unions are likely to be granted more power in the management of the funds. The overall pensions pool is set to grow as a result of the investment changes but the Confederation of Finnish Industries (EK) argues that this is not enough, calling for pension contributions to be frozen at their current level.

• 20 Feb 2006
  Finland: Social partners agree to lift restrictions on workers from new EU Member States

  In February 2006, the Finnish social partners, together with the Ministry of Labour, agreed to end current restrictions on the free movement of workers from the newEU Member States as of 1 May 2006. They also decided that migrant workers will be subject to compulsory registration and that their pay and working conditions will be closely monitored. Trade unions had demanded that the lifting of the restrictions should be conditional on employers assuming responsibility for the pay and working conditions provided by their foreign subcontractors, but the situation in this area remains unclear.

• 20 Feb 2006
  EU Level: Building social dialogue in the live performance sector 

  The EU-level social partners in the live performance sector are holding a series of joint seminars with colleagues from the new EU Member States, aimed at fostering the social dialogue process in these countries. The first two seminars were held in Estonia in October 2005 and Hungary in January 2006, and a third will be held in Poland in March 2006.

• 20 Feb 2006
  Ireland: Formal talks underway on seventh successive national pact

  Following settlement of a bitter dispute at Irish Ferries at the end of 2005, which had threatened to derail the process, formal negotiations on a seventh successive national pact commenced in Ireland in February 2006, with the social partners outlining their positions on employment standards and pay.

• 14 Feb 2006
  Norway: Stronger protection proposed for whistle-blowers

  In December 2005, new legislation on freedom of speech at work was proposed in Norway. Among other changes, the new rules would strengthen the protection for employees who report on misconduct in the enterprise where they work - known as whistle-blowers.

• 14 Feb 2006
  Denmark: Temporary agency workers to be treated as permanent staff

  In January 2006 the Danish Labour Court ruled in two cases concerning the position of temporary agency workers in the relation to the user company and the temporary work agency. The judgement made it clear that temporary agency workers applied to companies in the occupational field of electricians must be treated on the same conditions as permanent staff.

• 14 Feb 2006
  Cyprus: Nationwide work stoppage to protest proposed EU Services Directive (Bolkestein Directive)

  In February 2006, a nationwide work stoppage called jointly by all the trade union organisations in Cyprus will be held to protest the proposed EU Services Directive (Bolkestein Directive).

• 14 Feb 2006
  Cyprus: BAT shuts down production in Cyprus

  British American Tobacco has decided to terminate operations in Cyprus, leaving 89 employees redundant by the end of March 2006. Here we present the reasons for the decision, along with the content of the agreement between the company and the employees on the terms governing the exit of the redundant workers.

• 13 Feb 2006
  Spain: Non-national workers in the hotels and catering sector

  Employment in the hotels and catering sector represents a transitional point for non-nationals in terms of their employment integration. This sector, along with agriculture, domestic services and construction, is a likely source of employment for such persons because it is not viewed as an attractive source of labour by Spanish workers. However, it is also beginning to provide a source of self-employment to certain groups of immigrants, e.g. Chinese workers. While many immigrant men view employment in the sector as a stepping stone to employment in other, better paid sectors, many women are happy to remain in the sector.

• 13 Feb 2006
  Bulgaria: Social insurance cuts announced in 2006 budget

  The 2006 draft budget of the Bulgarian government will result in some BGN 650 million worth of extra funds being made available to businesses, while the employed and the rest of the population are expected to face considerable cuts in social insurance benefits. According to estimates, the state’s fiscal policy will result in savings of some BGN 255 million for the government.

• 08 Feb 2006
  Malta: General Workers’ Union protests against Ports Services Directive

  Early this year, Port employees were ordered by General Workers’ Union to take partial industrial action to protest against the proposed Port Services Directive. The European Parliament rejected the Directive by a vote of 532 to 120.

• 08 Feb 2006
  Malta: Dispute over forced leave at Maltapost

  In January 2006, Maltapost, Malta's national postal service, became involved in an industrial dispute with the Union of United Workers when management decided to deduct a day from the annual leave entitlement of postal delivery workers who were told not to work due to inclement weather.

• 08 Feb 2006
  United Kingdom: Voluntary approach to equal pay reviews is failing, finds EOC

  Research published by the Equal Opportunities Commission in January 2006 shows that levels of voluntary equal pay review activity have stagnated among large organisations and declined among smaller organisations. The Commission has called for a new approach to close the gender pay gap.

• 08 Feb 2006
  Lithuania: Intentions to establish a bilateral council of civil servants at national level

  On 18 January 2006, representatives from trade unions of the public sector and the ministries concerned gathered in an advisory meeting of a bilateral work group where they basically agreed to establish a bilateral council of civil servants.

• 08 Feb 2006
  Lithuania: Union raises strike threat at oil company

  In late 2005, the company-level trade union at Mažeikių Nafta, a major oil company, threatened a strike over pay demands - a very unusual step in the Lithuanian private sector. The union's call for substantial wage increases reflects rapid growth of average wages in Lithuania and Mažeikių Nafta's high profits.

• 08 Feb 2006
  Netherlands: Minimum number of leave days may not be paid out

  At the end of 2005, the Confederation of Netherlands Industries and Employers (VNO-NCW) announced that it wanted to ask employees to swap days off for a higher salary. If the membership base agrees to the idea, such a swap would be brought up in the forthcoming collective bargaining rounds. At the start of 2006, the Ministry of Social Affairs also made it known that employees could be paid out for regular days of leave. The Dutch Federation of Trade Unions (Federatie Nederlandse Vakbeweging, FNV) initiated legal proceedings bringing the case before the European Court, with success it would seem.

• 08 Feb 2006
  Finland: AKT joins forces against ports directive

  In January 2006, Finnish dock workers organised into AKT joined their colleagues from around Europe to oppose the proposed EU directive on Ports Services, which was ultimately blocked by the European Parliament. To this end, AKT stopped work at all ports in the country for eight hours on 11 January, which employers’ central organisation EK insisted was an irresponsible use of the freedom to hold political strikes.

• 08 Feb 2006
  Slovakia: New sectoral collective agreement increases civil servants´ salary

  Sectoral collective agreement for civil service for 2006 creates the same framework for local-level collective bargaining on employment conditions as the previous one. The new collective agreement in addition to the increase of pay rates practically fixes employment and working conditions existing in organisations of state administration since 2005. However, the pay rates of civil servants will increase more in 2006 than in the previous year and will approach the salary increase in 2004.

• 08 Feb 2006
  Slovakia: New sectoral collective agreement has brought along only small changes for public servants

  In the sectoral collective agreement for public servants for 2006 there were agreed in principle the same employment conditions as in the collective agreement for 2005. New agreement allows possible reduction of weekly working hours and extension of paid annual leave in local-level collective agreements. The agreement defines also financial limits for employers contributions in the same level as the previous one. The only one area where certain changes were realised is the higher increase of pay rates of employees.

• 08 Feb 2006
  Belgium: The unions are opposed to the centralisation plan at Fortis

  In both Flanders and Wallonia, union representatives of the employees of the banking group Fortis are organising action against a plan to centralise various administrative departments.

• 08 Feb 2006
  Denmark: Danish SAS pilots in wildcat strike

  On the 23 January 2006 Danish SAS pilots took industrial action in protest against plans concerning their employment status and working conditions forwarded by the SAS management thus causing several flight cancellations. They fear for both career and job if the management succeeds in splitting SAS pilots up into the national companies at the cost of the current employment directly under the SAS Group. The strike was ruled unlawful at the Labour Court in Stockholm.

• 08 Feb 2006
  Netherlands: Numerous far-reaching salary changes effective 1 January 2006

  Effective 1 January 2006 various changes have been introduced that have an impact on salary levels. This relates to the way in which the new healthcare financing system, introduction of the Work and Income According to Labour Capacity Act (Werk en Inkomen naar Arbeidsvermogen, WIA) following on from the Occupational Disability Insurance Act (Wet op de Arbeidsongeschiktheidsverzekering, WAO), changes in early retirement, salary savings and life-cycle leave schemes, and new unemployment premiums affect income levels. It also relates to lowering certain tax rates and, if possible, introducing a new collective agreement effective 1 January. This makes it practically impossible to draw an objective comparison between salaries in December 2005 and January 2006. It is however already quite clear that civil servants and teaching staff will lose ground as a result of the new healthcare system.

• 08 Feb 2006
  Greece: Nationwide strikes held in private and public sectors

  Strikes were held across large parts of the Greek private and public sectors on 14-15 December 2005, in response to the government’s economic policy and planned changes in the employment relationships of employees in public utilities and services.

• 08 Feb 2006
  Greece: Social partners disagree at National Employment Council

  In late January 2006, at a meeting of the consultative National Employment Council, the Federation of Greek Industries (SEV) placed on the table a series of demands on pay and regulation of the labour market and industrial relations. The Greek General Confederation of Labour (GSEE) expressed its opposition to these demands.

• 06 Feb 2006
  EU Countries: Relocation of production and industrial relations

  The transfer by multinational companies of production activities from one country to another has become an important issue in industrial relations across Europe - and especially in those western European countries that have seen a number of high-profile cases of outward relocation over recent years. This comparative study looks at the nature and extent of relocation of production and its significance for industrial relations, before examining national debates on the matter and the influence of industrial relations on relocation decisions and their implementation. The study covers 23 EU Member States, plus Bulgaria, Norway and Romania.

• 06 Feb 2006
  Estonia: Collective agreement in healthcare sector under pressure

  Employers in the Estonian healthcare sector have stated that they cannot afford to pay the 2006 wage increases due under a two-year collective agreement signed in 2004. The employers argue that they face a shortfall of EEK 100 million, a position disputed by the Ministry of Social Affairs and the Health Insurance Fund. Trade unions insist that the agreement must be fulfilled.

• 06 Feb 2006
  Germany: New collective agreements in German retail industry

  On 4 January 2006, after six months of negotiations, the bargaining parties in the Berlin area concluded a new collective agreement for retail employees. Subsequent to 17 months of no increases the employees in retail will receive a general pay increase of 1% with effect from 1 December 2006. In 2006 and 2007 there will be two lump-sum payments amounting to EUR 275 in total. The framework collective agreement which among other issues sets the standard working time is to remain unchanged until at least 2006. The parties also agreed on the introduction of performance related payments and a framework agreement concerning the deviation from collective agreements in cases where companies are facing economic difficulties.

• 06 Feb 2006
  Germany: New collective agreements for private insurance sector

  In December 2005 the bargaining parties in the German private insurance sector agreed on a new collective agreement. The agreement provides a general pay increase of 2% with effect from 1 April 2006 and a further increase of 1% from 1 April 2007. For the period of October 2005 to March 2006 employees receive a lump sum payment of EUR 250. Remunerations of apprentices are also increased in two steps with effect from 1 April 2006 and 1 April 2007.

• 06 Feb 2006
  United Kingdom: CAC issues first ruling in information and consultation case

  In December 2005, the Central Arbitration Committee upheld an employee complaint in its first ruling under the Information and Consultation of Employees Regulations. At issue was whether a pre-existing agreement claimed by the employer satisfied the necessary conditions specified by the Regulations.

• 06 Feb 2006
  Austria: Number of work accidents remained stable in 2005

  Latest figures released by the General Accidents Insurance Corporation (AUVA) indicate that the number of accidents at work remained steady in Austria in the period 2004-2005, whereas the number of fatal accidents decreased by 7.2%. However, the incidence of occupational diseases slightly increased at the same time. Both the government’s and AUVA’s focus therefore lies on prevention.

• 06 Feb 2006
  Germany: Companies intend to overcome skills shortages by providing more training

  In the middle of January, the Association of German Chambers of Industry and Commerce published the results of its recent study on firms’ demand for skilled workers. The survey reveals that 16% of the responding companies cannot fill vacant positions, despite the persistently high levels of unemployment. More than 50% of firms intend to provide more training in order to overcome a looming skills shortage.

• 06 Feb 2006
  Spain: Renewal of the agreement on collective bargaining in 2006

  The employers and the most representative trade unions have agreed to renew in 2006 an agreement on the bases of pay bargaining in collective agreements that they have signed every year since 2002.

• 06 Feb 2006
  France: The Privatisation of SNCM: a symbolic dispute

  In September 2005, the government’s total privatisation plan for the SNCM ran into opposition from the unions. After three weeks of a particularly heated dispute, a new distribution of capital was obtained but job losses have been announced.

• 06 Feb 2006
  France: Forty-Ninth CFTC Congress

  The CFTC held its forty-ninth convention in Bordeaux in November 2005. Jacques Voisin and Jacky Dintinger were re-elected president and secretary general respectively. The CFTC is keen to maintain the momentum of its 2002 industrial election showing and to continue to develop membership with the slogan hope, build, share.

• 06 Feb 2006
  Netherlands: Sectoral collective agreement signed without support of largest unions

  In the Netherlands, sector-wide collective agreements are usually concluded by all the trade unions affiliated to the three main federations. However, in December 2005 , this pattern was broken in the hotel, restaurant and catering industry, where an agreement was signed only by the union for managerial and professional staff, and not by the much larger unions affiliated to the FNV and CNV federations. A similar situation emerged in January 2006 in fashion and sports retail.

• 06 Feb 2006
  Spain: The number of workers affected by redundancy procedures rose by 11.7% in 2005

  After four years in which the number of workers affected by redundancy procedures had fallen, in 2005 there was a 11.7% increase over the previous year. Most of the cases of workers affected involved suspension or termination of the contract of employment.

• 06 Feb 2006
  Spain: Accidents increase in construction sector

  Spain is the EU country with the highest industrial accident rate. Though the overall rate has been falling in recent years, in the construction sector it is still rising.

• 06 Feb 2006
  EU Level: Austrian Presidency holds informal social Council

  In January 2006, employment and social affairs ministers met in Villach, Austria, for an informal employment and social affairs Council. The Council discussed flexibility and security, and also debated how to strengthen the social dimension of the EU.

• 06 Feb 2006
  EU Level: Accord on reduction of work-related musculo-skeletal disorders in agriculture

  In November 2005, the representatives of the European social partners in agriculture concluded an agreement on the reduction of work-related musculo-skeletal disorders in their sector.

• 06 Feb 2006
  Norway: Sickness absence among SAS pilots stops flights

  Plans by the Scandinavian airline group SAS to transfer bargaining responsibility for collective agreements covering pilots to its national subsidiaries were the apparent cause of five days of chaos in Norwegian aviation in January 2006. A large number of departures were cancelled when pilots reported sick.

• 06 Feb 2006
  Bulgaria: 250,000 workers will be compulsory insured

  At its sitting on 2nd February 2006 the Bulgarian Governmentadopted a Regulation based on which the employers are obliged to insure their employees working in areas where labour accidents are most frequent and severe.

• 06 Feb 2006
  Belgium: Start of negotiations on the competitiveness of the Belgian economy

  On the 18th January, the social partners began a round of negotiations on the Belgian competitive position. It appears that the Belgian economy, once more, is suffering from a wage disadvantage compared to its principal trading partners. The discussions should take continue over a number of weeks.

• 06 Feb 2006
  Poland: Union official dismissed in Goplana pay dispute

  Following the sale by Nestlé of the Polish confectionery company, Goplana, to Jutrzenka SA, in November 2005 the new owners announced plans to cut the wages of the Goplana workforce. In the subsequent conflict, the president of the Goplana NSZZ Solidarność trade union section was controversially dismissed.

• 06 Feb 2006
  Sweden: Labour Court rules SAS pilots' strikes unlawful

  On 25 January 2006, the Swedish Labour Court ruled that wildcat strikes by pilots employed by the SAS airline in Denmark were unlawful, and ordered the pilots to return to work (collective agreements at SAS give the Swedish court jurisdiction in such cases). The pilots, who were protesting at SAS's plans to transfer bargaining responsibility for their collective agreements to its national subsidiaries, had decided to go back to work anyway.

• 06 Feb 2006
  Cyprus: Ratification of ILO Convention No.135

  In December 2005, within the scope of application of the Conventions of the International Labour Organisation (ILO), Cyprus has ratified Convention No. 135 on Workers’ Representatives.

• 06 Feb 2006
  Ireland: Study suggests employer support for unions would boost numbers

  A new study on employee voice in the workplace concludes that many non-union employees would be prepared to join a union if their employer supported union organization.