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July 2006

• 31 Jul 2006
  United Kingdom: Concern over sale of BAE’s stake in Airbus

  In April 2006, BAE Systems, the British aerospace company, announced its intention to sell its 20% stake in Airbus. Following a wave of takeovers of major British companies by foreign multinationals, the sale has provoked some unease about the long-term implications for the security of employment in the UK division of Airbus.

• 31 Jul 2006
  United Kingdom: Vauxhall announces job losses at Ellesmere Port plant

  In May 2006, Vauxhall Motors announced that approximately 900 jobs are to be cut at its Ellesmere Port plant in Merseyside, northwest England, with the removal of the third shift of production. Coming only a month after the announcement of the closure of Peugeot’s plant at Ryton near Coventry, the move has prompted further trade union criticism of the UK’s relaxed labour laws.

• 31 Jul 2006
  Portugal: Green Paper on labour relations paves the way for reform

  In recent years, the need for labour relations reform in Portugal has grown, both to support the necessary modernisation of the economy and to encourage a more equitable distribution of income. In this context, the recent and most controversial change in labour legislation, Labour Code 2003, has led to conflicting results. In response, the Portuguese Ministry of Labour has published a Green Paper on labour relations, which will serve as the basis for a forthcoming White Paper. The latter will set out the key principles for a reform of labour relations, including the revision of the Labour Code.

• 31 Jul 2006
  Norway: New collective agreements for municipal sector

  In May 2006, consensus was reached on revised collective agreements for employees in the municipal sector. Accordingly, municipal employees will receive a general wage increase of 2.6%, while additional funds are to be set aside for company-level negotiations. In addition, the social partners have also reached consensus on a new working time agreement for teachers, despite considerable disagreement on this issue prior to the settlement.

• 31 Jul 2006
  Norway: Government intervenes to end strike among professional employees

  In early June 2006, the government intervened by means of compulsory arbitration in the bargaining dispute between Akademikerne and the state. The three other main confederations involved in state sector bargaining, YS, LO and UNIO, had accepted the proposal for a new agreement presented to them by the state mediator.

• 31 Jul 2006
  Netherlands: Older employees prone to dismissal under age balance principle

  Since the spring of 2006, employers are obliged to use the ‘proportion’ or age balance principle when making employees redundant as a result of restructuring. It now appears that this principle affects older employees more than other age groups. The Social and Economic Council’s advice concerning new legislation for dismissals has been postponed until the autumn, as the social partners cannot reach agreement on the revised legislation. Employers are in favour of more flexible legislation, while the majority of employee representatives prefer the current regulations.

• 31 Jul 2006
  Netherlands: Threatened job losses at NedCar automobile plant

  Up to a third of jobs at the NedCar car manufacturing plant in Born, in the southeast of the Netherlands, may soon be cut. In April 2006, owners Mitsubishi and DaimlerCrysler announced their intention to reduce production output to 70,000 cars, threatening the jobs of at least 1,000 employees. The employees and trade unions are demanding that the company provides alternative employment by pursuing new models for manufacture, and are calling on the government to provide the company with financial support. However, the Dutch prime minister rejected this demand. Following strike action by employees, the Mitsubishi management has accepted the unions’ proposal to seek other production possibilities. In the coming four months, no dismissals will take place.

• 31 Jul 2006
  France: Mixed reactions to anonymous CV measure

  In March 2006, as part of the equal opportunities bill, an amendment was passed that will make it mandatory for all companies with 50 or more employees to preserve the anonymity of job candidates. The exact terms of implementation will be decided by further legislation. This provision has been created in a context where there is increasing emphasis on issues concerning recruitment diversity. Nevertheless, the new amendment has not received a warm welcome.

• 31 Jul 2006
  France: Working time agreement signed in metalworking sector

  In February 2006, employers and three trade union federations in the metalworking industry signed an agreement providing for the reorganisation of working time in the sector. The agreement includes provisions for an increase of overtime and of daily contracts.

• 31 Jul 2006
  Finland: Shop stewards claim employers value employees less

  In April 2006, the Central Organisation of Finnish Trade Unions (SAK) published the findings of a survey investigating the views of its shop stewards. The survey results indicate that, over the past five years, there has been a shift in the industrial relations climate in Finland. According to SAK shop stewards and other trade union representatives, management of companies seem less appreciative of employees in 2005 than they were in 2000. The survey also investigated trends in collective bargaining systems.

• 31 Jul 2006
  Denmark: Supreme Court overturns order to reduce employee compensation

  In 2004, the Minister for Employment, Claus Hjort Frederiksen, issued an administrative order that reduced employee compensation in cases where no statements of employment particulars had been issued or where they were not correct or adequate. However, a judgement delivered by the Danish Supreme Court in May 2006 ruled that the minister’s action was in violation of current legislation.

• 31 Jul 2006
  Denmark: Fewer working days lost due to strikes in 2005

  Figures published by Statistics Denmark concerning strikes in 2005 show that 51,300 working days were lost due to work stoppages. This represents a 33% decrease in the number of working days lost compared with 2004, and is also the lowest figure since 1996. This more moderate strike activity seems to have continued into 2006.

• 26 Jul 2006
  Ireland: Employee consultation law to be passed

  The Employees (Provision of Information and Consultation) Act 2006 will soon be transposed into Irish law. This impending legislation will have significant implications for both employees and employers.

• 25 Jul 2006
  France: Unions protest against plan to cut funding of prud’hommes tribunals

  In late April 2006, members of the prud’hommes industrial tribunals – the labour court of first instance – who were elected by employees, called for a demonstration in front of the Ministry of Justice buildings in Paris. The protest was against a draft government decree that proposes to cut funding to these labour tribunals and aimed to raise members’ concerns about the future of the tribunals.

• 25 Jul 2006
  France: Report on trade union representativeness published

  In May 2006, the prime minister received a report entitled ‘Towards effective and legitimate social dialogue: Representativeness and funding of employer organisations and trade unions’. The report was prepared by high-level civil servants under the leadership of Raphaël Hadas-Lebel, and outlines the current situation as well as making recommendations for future developments.

• 25 Jul 2006
  France: Pay negotiations in civil service end in failure

  For the eighth consecutive year, pay negotiations in the civil service have ended in failure. The trade unions have not obtained their desired pay demands, and increases for 2006 will instead adhere to those recommended by the civil service minister. Nonetheless, three of the seven civil service union federations have agreed to sign an agreement providing for improved social conditions and pay scales for civil servants.

• 25 Jul 2006
  Denmark: Danish labour market model under pressure

  On 27 April 2006, representatives of the social partners, politicians and industrial relations bodies came together with university researchers to discuss the Danish model of collective bargaining at a round table conference. The conference aimed to discuss the status of the Danish self-regulating model in the labour market, and its ability to survive in the face of pressure from the EU, government and company level.

• 25 Jul 2006
  Czech Republic: New labour inspection office begins operations

  In July 2005, the labour inspection act entered into force, under which a new institution – the State Labour Inspection Office – and eight regional inspectorates have been created. The new office merges the agenda of the Czech Work Safety Authority and its inspectorates (abolished as of 1 July 2005), as well as part of the agenda of the labour offices’ inspectorates. The state authorities and trade unions believe that the new organisation will act as an effective control; however, the employers consider that the office is weakened by some duplication of roles.

• 25 Jul 2006
  Czech Republic: Opposition to proposed new Labour Code

  The proposed new Labour Code, which is currently going through the legislative process, continues to be the subject of extensive debate. Although the code has been passed by the Chamber of Deputies, it has been rejected by the Czech President. It has also encountered conflicting responses from political parties, trade unions and employers.

• 25 Jul 2006
  Austria: Shift in traditional wage bargaining formula

  The opening of this year’s collective bargaining round has been brought forward from autumn to spring, following an initiative by the metal industry employers in May 2006. Employers had questioned productivity as a key pay-setting criterion, proposing that profit-sharing schemes – reflecting profitability at individual company level – should be included instead. The unions are strongly opposed to the employers’ demands.

• 18 Jul 2006
  Malta: No agreement on proposal to form trade union council

  While all unions agree, in principle, about the need to set up a trade union council, they are still unable to find common ground on which to establish such an institution. A recent proposal by the Confederation of Malta Trade Unions to set up a trade union council was rejected by other trade unions.

• 18 Jul 2006
  Poland: Positive outcome of strike action at K-Tel

  K-Tel Sp. z oo, with head offices in Poznan, has been operating in the telecommunications sector for over a decade. In January 2006, K-Tel signed a contract with Telekomunikacja Polska SA, the national telecoms operator, to maintain the telecommunications infrastructure in Bielsko Biala and the surrounding district in southern Poland. Despite this expansion, K-Tel’s management made plans to reduce staff numbers and to modify the wages system. In response to these plans, employees at K-Tel’s Bielsko Biala branch launched a protest on 5 April 2006, which eventually evolved into a hunger strike. The dispute was resolved on 21 April with the signature of an agreement accepting most of the union’s demands.

• 18 Jul 2006
  Malta: Union takes industrial action against car importers

  In May 2006, the General Workers Union of Malta issued a notice of industrial action against 10 leading importers of new cars, over their failure to renew the collective agreement covering the sector. After negotiations ended in deadlock, the union gave the go-ahead for minor industrial action within these companies. In response, car importers filed a judicial complaint against the alleged illegal action of the union.

• 18 Jul 2006
  Italy: Renewal of collective agreement at Banca d’Italia

  In April 2006, Italy’s main trade union organisations representing the banking sector and Banca d’Italia renewed the central bank’s national collective agreement. Key aspects of the renewed agreement include pay increases, removal of the bank’s authority over unilateral decisions concerning employees, supplementary bargaining for newly recruited workers, the introduction of flexible forms of employment and internet access for all workers.

• 18 Jul 2006
  Italy: Wages guarantee fund extended for Fiat workers

  In April 2006, the Italian government approved a measure aimed at preventing over one thousand dismissals at Fiat Auto, the leading Italian motor manufacturing group. The measure provided for an extension of the wages guarantee fund, which will help safeguard the incomes of the workers affected.

• 18 Jul 2006
  Ireland: Serbian workers’ wage claim faces legal obstacles

  Claims for wage arrears are being made on behalf of at least 96 Serbian workers who were employed by a contractor on a €3 billion network renewal programme undertaken by the state electricity company, ESB. However, while the Serbian workers are fully entitled to the arrears, there may be ‘significant practical difficulties’ in exercising their rights, according to a legal expert for the workers’ trade union.

• 18 Jul 2006
  France: Proposal for new law on immigration adopted

  In May 2006, the French parliament adopted the proposal for a new bill concerning immigration and integration. The proposed legislation aims to enforce a policy focused on ‘selective immigration’ and on stricter controls of immigration procedures. Issued in the run-up to the 2007 presidential election campaign, and as various employee and employer organisations are negotiating an agreement aimed at combating ethnic and cultural discrimination, the legislative proposal has come under severe criticism.

• 18 Jul 2006
  Finland: Ministry of Labour favours Danish flexicurity model

  The so-called Danish flexicurity model, which combines low protection against dismissal with high unemployment benefit and activation measures, is favoured by the Finnish Ministry of Labour. In contrast, both the Confederation of Finnish Industries and the Central Organisation of Finnish Trade Unions are currently opposed to adopting a similar model in Finland.

• 18 Jul 2006
  Spain: Persistence of gender discrimination and sexual harassment at work

  In April 2006, the Sociological Research Centre and the Women’s Institute published results of two recent studies on gender discrimination and harassment in the workplace in Spain. The first study highlights the persistence of gender inequality in employment and pay.

• 18 Jul 2006
  Germany: Use of opening clauses in collective agreements

  In May 2006, the findings of a study that examined the use, distribution and impact of opening clauses in collective agreements in Germany were published. According to the study, opening clauses have largely been used to deviate from collectively agreed working time standards, and have been applied less frequently to reduce wages.

• 18 Jul 2006
  Belgium: Motor industry action plan yields positive results

  The Belgian automobile industry is to invest €800 million in the sector during 2006 and 2007. These positive results have partly been achieved by the efforts of a tripartite task force, working since 2004 to optimise industrial policy in this economically important sector.

• 18 Jul 2006
  Belgium: Agreement for service vouchers workers signed

  In April 2006, the results of the evaluation of the service vouchers scheme – which subsidises the employment of workers to carry out household tasks – were presented to the government. The evaluation aims at measuring the impact of the scheme on employment in Belgium. Meanwhile, after lengthy negotiations, the social partners have concluded a joint agreement for workers employed under the service vouchers system, which currently includes around 26,000 people in Belgium.

• 18 Jul 2006
  Belgium: Metalworkers’ union to split into regional divisions

  The Belgian metalworkers’ union affiliated to the Belgian General Federation of Labour (ABVV-FGTB) is splitting into three regional organisations or federations: one for Brussels, one for Flanders and one for the Walloon region. However, trade union leaders have declared that the organisation and coordination of collective bargaining in the metal sectors will remain at a national level

• 12 Jul 2006
  Poland: Information and consultation bill adopted

  In April 2006, the Polish parliament finally adopted new legislation on information and consultation procedures in the workplace. The new law will effectively lead to the establishment of works councils in enterprises with at least 50 employees. In enterprises where representative trade union organisations exist, works councils will be controlled by the unions.

• 11 Jul 2006
  Czech Republic: Extension of collective agreements to increase sectoral coverage

  The amendment of the collective bargaining act in the Czech Republic (Act No. 255/2005 Coll.) which took effect on1July 2005 introduced new conditions for the extension of higher-level collective agreements to cover more employers and employees. So far, three higher-level collective agreements have been extended under this amendment: in the construction, glass and ceramics, and textiles sectors.

• 11 Jul 2006
  Ireland: Aer Lingus proposes industrial relations framework in light of privatisation

  A draft company–employee framework document has been tabled by state-owned Aer Lingus management, setting out in detail the industrial relations framework that it would like to see agreed with the trade unions in conjunction with the forthcoming privatisation of the company.

• 11 Jul 2006
  Estonia: Poor salaries lead to shortage of workers in the civil defence sector

  Low salaries earned by the police, prison officers and those working in rescue services are leading to a serious shortage of workers in Estonia’s civil defence sector. Annual adjustments to officials’ salaries have not been sufficient to prevent people from leaving the forces to move into the private sector. Trade unions have drawn attention to the severe problems in these institutions due to the low salaries, while the Minister of the Interior is concerned about public security. Meanwhile, negotiations on a salary increase have commenced, along with negotiations concerning next year’s budget.

• 11 Jul 2006
  Norway: Trade union density at stable level

  More than half (53%) of Norwegian wage earners were union members in 2004, according to new figures published in May 2006. Moreover, approximately 70% of Norwegian wage earners are covered by collective agreements. Developments in union density and collective bargaining coverage have remained relatively stable over the last five to six years.

• 11 Jul 2006
  France: New law on equal opportunities to tackle urban violence

  In March 2006, the French parliament adopted a law on equal opportunities in response to the wave of urban violence which took place in autumn 2005. The law encompasses a number of key areas concerning the promotion of youth employment, provision of career advice and training, combating discrimination, and reinforcing parental and local authority responsibilities. Some of the new measures have attracted strong criticism from the social partners.

• 11 Jul 2006
  France: Repeal of new employment contract for young people

  In February 2006, the government introduced a new employment contract covering people aged under 26 years, who are hired by companies with more than 20 employees. The so-called ‘first job contract’ (Contrat première embauche, CPE) introduced a significant amount of flexibility into the redundancy procedure. In response, trade unions and student unions mobilised on a wide scale to demand the withdrawal of the CPE. By mid-April 2006, the CPE was withdrawn.

• 11 Jul 2006
  Denmark: Danish government prolongs East Agreement

  The Danish government has informed the European Commission that the transition scheme covering workers from the new central and eastern European Member States – also called the East Agreement – has been extended, with some revisions, for a further three-year period. The revised agreement establishes smoother provisions regulating the entry of eastern European workers into the Danish labour market.

• 11 Jul 2006
  Austria: Union crisis puts social partnership at risk

  The recent financial scandal concerning the BAWAG bank, owned by the Austrian Trade Union Federation (ÖGB), is thought to have weakened the country’s trade union movement. Experts disagree on whether the current ÖGB crisis will have a far-reaching impact on the country’s system of collective bargaining and social partnership.

• 11 Jul 2006
  Hungary: Employers call for new social pact to bolster economy

  Following the general elections in April 2006, 16 business and employer organisations issued a manifesto entitled ‘Agreement for our future’. The manifesto calls for a tripartite agreement between businesses, the government and political parties on four key issues affecting Hungary’s economic competitiveness. However, there were mixed reactions among the social partners to the document.

• 11 Jul 2006
  Portugal: Unions push for measures to prevent accidents at work

  The social partners and public institutions in Portugal took the opportunity presented by World Day for Safety and Health at Work –28 April 2006 – to highlight the crucial role of risk prevention in overcoming the high levels of accidents at work and occupational diseases observable in Portugal. Trade union confederations have emphasised the urgency of implementing preventive measures, as set out in the tripartite agreement on working conditions that was signed by the social partners in February 2001.

• 03 Jul 2006
  Italy: Two former trade unionists elected to top state posts

  In April 2006, after the government elections and the victory of the centre-left coalition, two former trade unionists, Fausto Bertinotti and Franco Marini, were appointed President of the Chamber of Deputies and President of the Senate respectively, marking a new chapter in the history of the Italian Republic.

• 03 Jul 2006
  Denmark: Trade union confederations sign new cooperation agreement

  In April 2006, the Danish Confederation of Trade Unions and the Confederation of Salaried Employees and Civil Servants in Denmark signed a new cooperation agreement to replace the existing agreement dating from 1973. The agreement deals with, among other things, new rules concerning the resolution of border disputes and opens the way for extended political and industrial cooperation.

• 03 Jul 2006
  Czech Republic: Engine drivers strike over proposed new bargaining rules

  In March 2006, a half-hour strike by engine drivers resulted in a stoppage of some 332 trains, corresponding to 78% of the trains operating at the time of the strike, or 4.8% of the entire 6,870 trains that Czech Railways had scheduled to run during the course of the day. The striking workers were expressing their disapproval of the new Labour Code. Trade unionists warned that, if further negotiations failed to produce results, the next strike would go ahead without any time limit.

• 03 Jul 2006
  Poland: Polish hospital dispute drags on

  On 5 May 2006, employees of more than 100 public hospitals and medical practices throughout Poland held warning strikes, marking the next stage of the escalating collective dispute in the country’s public healthcare system. Healthcare practitioners are demanding an immediate pay rise and an increase in public healthcare spending up to at least 6% of the country’s gross domestic product (GDP).

• 03 Jul 2006
  Slovakia: Hospital workers strike over pay and overtime

  Following a series of unsuccessful protests, healthcare workers in a number of Slovak hospitals staged a strike in early April 2006. By 19 April, employees of 21 hospitals joined the strike, as their demands for higher wages and better working conditions had not been addressed. Although the healthcare sector trade union has succeeded in stipulating a wage increase within the collective agreement for 2006, the demands of the strikers have not been met. Despite this, the protesting doctors terminated the strike on 21 April 2006. However, they continue to protest by using other forms of strike action.

• 03 Jul 2006
  Germany: German labour market shows signs of recovery

  In April 2006, the Association of German Economic Research Institutes published its semi-annual economic report, which stated that the German economy was beginning to recover. Due to the economic upturn, German unemployment rates dropped slightly in the spring of 2006. Meanwhile, the German federal government and the social partners have engaged in heated debates about whether or not the introduction of statutory minimum wages is an appropriate measure to reintegrate low-skilled unemployed people back into the German labour market.

• 03 Jul 2006
  Germany: New package of agreements signed in metal industry

  In April 2006, the collective bargaining parties in the metalworking industry in North-Rhine Westphalia signed new collective agreements. The settlement, which was subsequently adopted as a ‘pilot agreement’ in the industry’s other bargaining regions, provides for a pay increase of 3% with effect from June 2006, and a lump sum payment of €310. As part of the compromise, it was agreed that works councils and employers can agree at company level either to increase or decrease this lump-sum payment according to the economic situation of the company. The bargaining parties also concluded a new collective agreement on continuous training.

• 03 Jul 2006
  United Kingdom: Research shows fall in union recognition agreements

  The latest annual survey on union recognition agreements, published by the Trades Union Congress in April 2006, highlights a sharp fall in recognition deals reached with employers, even though the number of union campaigns for recognition has increased.

• 03 Jul 2006
  Norway: Substantial wage increase in transport sector

  In April 2006, following difficult negotiations, the social partners in the private transport sector concluded revised collective agreements for bus drivers, freight transport workers and for environmental and refuse disposal workers. The agreement provides for substantial wage increases for transport workers, in addition to a pay improvement plan for bus drivers, whose wages had fallen behind those of traditional manufacturing industries in recent years.

• 03 Jul 2006
  Bulgaria: Transposition of EU directive on information and consultation

  The process to transpose into national law the European Directive on the information and consultation of workers commenced at the beginning of February 2006 in Bulgaria. The trade unions put forward a series of proposals and discussed the draft law at the National Tripartite Cooperation Council. However, certain key elements, such as the rights of the information and consultation representatives, remain undecided.