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February 2007

• 27 Feb 2007
  EU Level: European social partners consulted on measures to improve work–life balance

  The European Commission has been consulting with the European social partners on measures aimed at reconciling professional, private and family life. While the employer organisations regard EU legislation in this field as adequate and sufficient, the trade unions have requested more comprehensive actions to improve the reconciliation of professional, private and family life.

• 26 Feb 2007
  Hungary: EU enlargement fuels concerns over free movement of workers

  The latest accession of the two eastern European countries, Romania and Bulgaria, to the EU on 1 January 2007 has triggered new fears of migration from less developed to more developed Member States. Prior to the 2004 enlargement of the EU, Hungary had actively argued against limiting the free movement of labour from the new to the older Member States. However, during the recent wave of enlargement, Hungary and Malta were the only countries of the ten new Member States that joined in 2004 to set restrictions on the gradual opening up of their labour markets.

• 26 Feb 2007
  Portugal: New rules on unemployment benefit impose stricter criteria

  On 1 January 2007, new rules on unemployment benefit came into effect. The new rules impose more stringent measures in relation to unemployed persons refusing job offers. The main changes introduced affect non-voluntary unemployment and, in the case of restructuring, restrictions on the number of workers in each company who are entitled to unemployment benefit. Moreover, the parameters of a so-called ‘convenient job’ have been established, obliging those in receipt of unemployment benefit to accept the offer of a less well-paid job. The duration of unemployment benefit, which was before solely dependent on age, now also takes employee contributions into account.

• 26 Feb 2007
  Austria: Economically dependent workers to get full social protection

  In January 2007, Austria’s new coalition government adopted a proposal put forward by the social partners to extend social insurance coverage for self-employed people, in particular for self-employed workers who are deemed as being ‘economically dependent’. Accordingly, self-employed people working under the same conditions as employees will be obligatorily covered by unemployment insurance or, like genuine self-employed people, may opt for this scheme on a voluntary basis.

• 26 Feb 2007
  Lithuania: Union proposes better distribution of membership fees

  In light of the current weak organisational and financial capacities of sectoral trade unions, the Trade Union of Lithuanian Food Producers (LMPS) proposes redistributing membership fees and implementing the principle of direct trade union membership in Lithuania. It is hoped that this would strengthen the capacities of sectoral trade unions. LMPS argues that ineffective fee distribution is one of the main obstacles for the development of social dialogue in the country. However, no final decision to change the current situation has yet been concluded.

• 26 Feb 2007
  Lithuania: Union highlights need for development of social dialogue in public sector

  In December 2006, the Lithuanian Trade Union Confederation (LPSK) organised a conference to discuss social dialogue development in the public sector, within the framework of the ‘Sedvita’ project. While government ministers attending argued that social dialogue in Lithuania has been developing at a rapid pace in recent times, union representatives claimed that normal social dialogue barely exists in the public sector. The conference was viewed by all as an important step in highlighting the issue of social dialogue.

• 26 Feb 2007
  EU Level: European Court ruling on collective redundancies threshold

  Employers are obliged to inform and consult workers when proposing collective dismissals for redundancy. In a ruling delivered on 18 January 2007, the European Court of Justice (ECJ) held it contrary to EU law for a state to exclude certain workers from the calculation of collective redundancy thresholds, even in cases where the objective is to encourage the employment of younger workers or if the exclusion is only temporary. The ECJ ruling concerned a 2005 amendment introduced into French legislation, which was challenged by trade unions in France.

• 26 Feb 2007
  Malta: Malta rejects revision of working time directive

  Unwilling to end its opt-out clause, Malta has rejected the Finnish Presidency’s compromise proposal for a revised version of the working time directive. Nevertheless, the Maltese government stated that it was in favour of negotiations to find a common EU solution for a revised directive. The social partners have supported the government’s stand on the issue.

• 26 Feb 2007
  Malta: Teachers’ union threatens industrial action over suspension of new posts

  The Malta Union of Teachers has recently registered disputes with the government over two issues, namely the suspension of the process of appointing education officers and withdrawal of special leave granted to Maltese teachers occupying translator posts in EU institutions in Brussels and Luxembourg. While a compromise was reached regarding the translator posts, the trade union is considering industrial action if the government persists in keeping the posts of educational officers vacant.

• 26 Feb 2007
  Netherlands: Government officials take industrial action over pay

  In January 2007, government officials took action to campaign for a better collective agreement than that being offered by the Minister of Internal Affairs. The issue mainly revolves around pay, which – according to employees of national administration bodies and their trade unions – lags behind the salaries of their colleagues in municipal bodies and of the police force. So far, however, the Minister of Internal Affairs is standing firm despite industrial action disrupting the country’s public services.

• 26 Feb 2007
  Netherlands: Support from employers not adequate for partially disabled employees

  Partially disabled employees are not receiving the agreed level of support from employers when seeking a job, a report published by the Labour Foundation has found. Employee representatives responded angrily to the fact that promises made by employers in this respect in 2004 have not been honoured and in light of the fact that many partially disabled people face unemployment. However, employer organisations have asserted that while employers agreed to make every effort to this end, the results of such efforts are beyond their control. Finding alternative positions within small and medium-sized businesses has proved to be particularly difficult, even though cross-sector initiatives show that this problem can be overcome.

• 26 Feb 2007
  Romania: Trade unions in healthcare threaten general strike

  In an effort to improve the healthcare system in Romania, the Sanitas Federation representing healthcare workers put forward a number of demands to the Ministry of Health to increase wages and the health budget. Although most of the demands made by trade union members in the healthcare system in 2006 were granted, the issue of promoting a normative act approving the negotiated pay rise as of 1 January 2007 had yet to be resolved. The trade union warned that if the government failed to grant the promised increases, the trade union would take strike action at the beginning of January 2007.

• 26 Feb 2007
  United Kingdom: Government simplification plan targets employment regulation

  In December 2006, the Department of Trade and Industry published new proposals for reducing administrative requirements affecting businesses. These included measures aimed at reducing the complexity and compliance costs of employment legislation, which represents the area of the department’s activities that has been estimated as generating the highest costs for business.

• 26 Feb 2007
  Portugal: Companies opt for collective dismissals rather than lay-offs

  Companies are increasingly using collective dismissals instead of lay-offs to cope with the reduction or temporary suspension of work, according to findings of the General Directorate for Studies, Statistics and Planning. Collective dismissals are also being used more frequently than ‘softer’ solutions like agreements to work fewer hours and adapting wages, in order to maintain jobs. While the flexible legislation on collective dismissals in Portugal is not the sole reason for this trend, it has nevertheless facilitated the restructuring strategies of companies, by enabling them to reduce employment levels.

• 26 Feb 2007
  Portugal: Government grants tax breaks to companies hiring long-term unemployed

  Since 1 January 2007, the budgetary framework law enacting the 2007 state budget offers fiscal incentives to companies to recruit not only young job seekers but also long-term unemployed people. Thus, companies which hire long-term unemployed persons on the basis of a permanent employment contract will benefit from a 50% reduction in their corresponding tax contributions.

• 19 Feb 2007
  Cyprus: Public hospital employees strike over working hours

  In December 2006, staff paid on an hourly basis in public hospitals held a two-hour token work stoppage, protesting over what they consider to be a refusal by the government to implement a regulation of the 2004–2006 collective labour agreement.

• 19 Feb 2007
  EU Level: Role of collective bargaining in the public services sector

  At its social dialogue and collective bargaining conference at the end of November 2006, the European Federation of Public Service Unions (EPSU) discussed key issues in relation to collective bargaining at both European and national levels. The conference continues to play a role in EPSU’s ongoing efforts to build its collective bargaining network and to coordinate policy on a number of key areas, such as young workers, migrant workers and older workers.

• 19 Feb 2007
  Lithuania: Major union confederation discusses possible reorganisation

  In December 2006, the Council of the Lithuanian Trade Union Confederation (LPSK) met to discuss the development of social dialogue. The meeting considered LPSK’s proposed activities for the coming years, as well as its follow-up plan in relation to the demands put before the employers and government in November 2006. The Council also focused on matters of internal reorganisation in LPSK.

• 19 Feb 2007
  Latvia: Situation of economically dependent workers

  The boundaries between dependent employment and self-employment have increasingly become blurred in some sectors in recent years, in a context of changing labour markets and the spread of practices such as outsourcing and contracting-out. This process has led to a growing interest in ‘economically dependent workers’ – workers who are formally self-employed but depend on a single employer for their income. In Latvia, little use is made of economically dependent work, as the concept is not officially recognised and no regulation exists in this area. However, service contracts between contractors and employers acting as customers are becoming more common, mainly because they offer certain advantages to the employer. In some cases, these relationships may correspond to economically dependent work where the worker is largely dependent on the employer as customer. So far, no debate has taken place in relation to this issue, although trade unions are observing the implications for workers of increased use of service contracts in the labour force.

• 19 Feb 2007
  Netherlands: Deadlock in negotiations on dismissal legislation

  Employer and employee representatives in the Social and Economic Council (SER) have failed to reach agreement on changes to legislation on dismissal. Although the council promised a cabinet recommendation by the end of 2006, it concluded in December that agreement could not be reached among the parties. For the time being, this means that an SER recommendation will not be forthcoming supporting a reform of dismissal legislation linked to higher unemployment benefits and the reinforcement of employability.

• 19 Feb 2007
  Malta: Industrial Tribunal rules on union representation at University of Malta

  On 8 January 2007, the Industrial Tribunal ruled that the University of Malta should include the University of Malta Academic Staff Association (UMASA) in all industrial relations discussions with the Malta Union of Teachers, but stopped short of assigning sole recognition to UMASA.

• 19 Feb 2007
  Netherlands: Trade unions reject proposal to downgrade older workers

  At the end of 2006, the three umbrella employer organisations indicated that they would like to abolish the system whereby older employees automatically earn more than their younger counterparts. In response, the three main trade union organisations expressed dissatisfaction with this proposal. While they do not object to demotion on a voluntary basis, the trade unions are not in favour of such a measure being part of structural wage policy.

• 19 Feb 2007
  Netherlands: Collective agreement reached at container company following wildcat strike

  At the start of 2006, the Allied Unions (FNV Bondgenoten) reached a collective agreement in principle at Europe Container Terminals (ECT), a container operator based at the Port of Rotterdam. However, the trade union members did not favour the proposed level of flexibility and rejected the agreement. A wildcat strike followed immediately in response to a revised agreement. The court deemed the strike unlawful and instructed the union to consult its membership properly. In December 2006, following a referendum, a narrow majority of the FNV Bondgenoten membership base approved the revised collective agreement.

• 19 Feb 2007
  Norway: Proposed merger likely to result in world’s largest oil company

  In December 2006, the boards of the two largest oil companies in Norway – Statoil and Norsk Hydro – began formal talks on the possibility of forming a merger. The government, which has a large stake in both companies, reacted positively to the merger plans. The trade unions concerned were also supportive of the plans to merge.

• 19 Feb 2007
  Norway: Gender pay gap wider in private sector

  New figures published by Statistics Norway in January 2007 show that in 2005 the average wage of women was 84.7% of the average wage of working men. This finding confirms that the wage gap in Norway has not changed significantly since 1998.

• 19 Feb 2007
  Netherlands: Lack of agreement on proposals to minimise gender pay gap

  At the end of January 2007, a conference took place to discuss the draft recommendations of a committee established to devise policy recommendations on how to reduce the wage gap between men and women. The committee, in which the employers and trade unions are strongly represented, was originally established by the Minister of Social Affairs at the start of 2006. However, the committee has failed to reach overall agreement on its draft recommendations. For example, a recommendation to increase wages in the healthcare and education sectors was abandoned because the employers considered that the measure did not contribute to resolving the issue of wage discrimination.

• 19 Feb 2007
  Poland: Postal workers engage in strike action over pay

  Since 13 November 2006, employees of Poczta Polska, the Polish national postal service, have been involved in protest action over pay. Strike action was called by postal delivery workers in the northern city of Gdansk, who were soon joined by other postal workers from various locations across the country. On 27 November 2006, negotiations commenced between the workforce and the company management, with the support of professional mediators.

• 19 Feb 2007
  Norway: Levelling of working time differences between mothers and fathers

  A new report published by Statistics Norway in January 2007 shows that there has been a reduction, albeit small, in the working time differences between mothers and fathers in the period from 1991 to 2004. Overall, however, the working time of mothers has remained surprisingly stable, despite significant efforts aimed at improving childcare facilities and parental leave arrangements.

• 19 Feb 2007
  Poland: Proposal to regulate telework aims to ensure equal treatment

  The draft amendments to the Polish Labour Code, which the social partners are currently discussing, devote considerable attention to the issue of telework. Both economic and social factors influence the incidence of telework. For instance, it appears that teleworkers often achieve higher productivity levels than traditional employees. In many cases, telework offers people an opportunity to commence or to continue their professional career. Moreover, it also offers a route to employment for many disabled persons and a solution to women in balancing their careers with family obligations.

• 19 Feb 2007
  Portugal: Agreement at Volkswagen plant guarantees wage increase and more jobs

  Following intense negotiations, the Portuguese Volkswagen plant Autoeuropa and the company’s works council reached a ‘pre-accord’ agreement aimed at establishing a mid-term agreement on flexibility and job guarantees for2006–2008. On 18 October 2006, all Autoeuropa workers were called to vote on this mid-term agreement. The vast majority of workers participated in the vote, and 62% of workers approved the agreement. The agreement aims to prime the company for the Volkswagen Group’s internal competition for production of its new multi-purpose vehicle.

• 19 Feb 2007
  Romania: Growing concern over labour shortage due to migration

  The extent of skilled labour migration from Romania to other labour markets of the European Union is a pressing topic on the agenda of trade unions. The unions share the concerns of employer organisations and government representatives at the growing shortages in the domestic labour market. The situation is particularly acute in the construction sector, where labour shortages have been estimated to be as much as 50% by one employer organisation, corresponding to about 300,000 workers.

• 19 Feb 2007
  Portugal: New legislation provides for increase in pension entitlements

  On 30 November 2006, the government issued a new directive (No. 1357-A/2006) updating the pension regulations concerning disability, occupational disease, old age and survivor’s benefit. As a result, new pension rules came into force on 1 January 2007. The criteria for updating pensions took into consideration the new scheme included in the draft bill on social security reform that was being discussed in parliament. Under this scheme, pensions are calculated in relation to a new index independent of the minimum wage, and their increase is based on the observed inflation rate rather than on the future expected inflation rate. On 14 December 2006, the new Law on Social Security (Law No.4/2007) was approved in parliament and it came into force on 17 January 2007.

• 19 Feb 2007
  Slovenia: European actors’ union highlights problems of services directive for performing artists

  In November 2006, the biannual meeting of the International Federation of Actors was held in Slovenia’s capital city, Ljubljana, in cooperation with the Trade Union of Culture of Slovenia (GLOSA). The main issues on the agenda of the meeting were EU developments regarding the services directive in the internal market, the Green Paper on European Labour Law relating to the status of the artist, and the joint project regarding the enlargement of social dialogue in the performing arts.

• 19 Feb 2007
  Slovenia: Trade unions push for 13th month wages and Christmas bonus

  In November 2006, the Union of Free Trade Unions of Slovenia once again called on employers to award workers with a ‘13th-month’ payment according to the provisions of sectoral collective agreements. In 2005, 21.6% of workers received this payment. Moreover, the union requested the payment of a Christmas bonus to employees, where this was provided for by a collective agreement or other special agreement between employers and trade unions.

• 19 Feb 2007
  United Kingdom: Major union merger moves closer

  Plans are well advanced for the merger of two major trade unions – Amicus and the Transport and General Workers’ Union – to form what will be the largest trade union in the UK. Following approval by the leaderships of the two unions, detailed merger plans will be the subject of membership ballots in both organisations. If endorsed by the members, the new trade union is scheduled to come into being in May 2007.

• 19 Feb 2007
  Slovenia: Unions outraged at government proposal to charge for abortions

  In November 2006, the Ministry of Labour, Family and Social Affairs published on its website its proposed strategy to increase fertility rates in Slovenia. Among the numerous measures outlined, the strategy contains a proposal to charge for abortion procedures. This measure has provoked much controversy, with numerous non-governmental organisations, trade unions, physicians and others protesting against it. Contrary to the ministry’s strategy, the Union of Free Trade Unions of Slovenia emphasises employment security as the basic precondition to encourage young women to have a child.

• 19 Feb 2007
  United Kingdom: Studies suggest employers need to be more proactive about age discrimination

  A number of recent research studies suggest that age discrimination in employment remains a significant problem, albeit a declining one, especially in formal terms. Employers have not been unduly concerned by the introduction of the age discrimination regulations in October 2006; however, it is important to increase awareness of the need to be proactive about the implications of age discrimination.

• 19 Feb 2007
  United Kingdom: Increase in extent of performance-related pay

  Findings from the Workplace Employment Relations Survey 2004, published in mid 2006, show an increase since 1998 in the proportion of British workplaces that use performance-related pay schemes. However, the incidence of profit-related payments and employee share ownership schemes has remained unchanged. Considerable variation between sectors in the use of variable pay schemes is also evident.

• 19 Feb 2007
  United Kingdom: Lack of access to paid time off is biggest barrier to training

  A survey of union learning representatives (ULRs) published in November 2006 by unionlearn – the learning and skills organisation of the Trades Union Congress – finds that ULRs believe that the lack of access to paid time off is the most significant barrier to training for UK workers.

• 19 Feb 2007
  United Kingdom: Women still seriously under-represented in senior posts

  In a survey published in January 2007, the Equal Opportunities Commission (EOC) found that women are still not reaching the top of their professions in significant numbers across both the public and private sectors. The EOC also points out that, not only does the pace of change in senior positions remain slow in many areas, in some cases it has even reversed, despite the massive growth in women’s participation in work and public life.

• 19 Feb 2007
  Luxembourg: New trade union for print, media and culture sectors

  A new trade union called Printing, media and culture – FLTL has recently been set up in Luxembourg. Affiliated to the Luxembourg Confederation of Independent Trade Unions, the new union is already active in negotiating several company and sectoral agreements. However, the official structure of the new union still had to be determined after low attendance at its inaugural meeting.

• 19 Feb 2007
  Lithuania: Social partners oppose plan to fix insurance contribution threshold

  The majority of the social partners in Lithuania have opposed the Investors’ Forum initiative to set an upper limit or ‘ceiling’ for social insurance contributions in Lithuania. The Tripartite Council has asked the Ministry of Social Security and Labour to assess to what extent the social insurance fund depends on such contributions for its pension budget. At the same time, the social partners plan to explore the possibility of setting a minimum level of income, or ‘floor’, below which a worker would not be obliged to pay any social insurance.

• 19 Feb 2007
  Estonia: Controversy over extension mechanism of collective agreements

  The Chancellor of Justice has declared that the extension mechanism of collective agreements in Estonia is disproportionately restrictive of freedom of entrepreneurship. However, the trade unions disagree with this position. The Ministry of Social Affairs has not yet drafted its proposal for changes to the Collective Agreements Act, which will amend the extension mechanism for collective agreements.

• 19 Feb 2007
  Estonia: Tax benefit system acts as disincentive for low-wage earners

  Although the Estonian tax benefit system is relatively straightforward, it creates few incentives for low-wage earners to enter into employment or to increase their working time. These are among the findings of a recent study published in 2006 by the PRAXIS Centre for Policy Studies. Inflexible benefit schemes may in particular discourage part-time and low-paid work.

• 19 Feb 2007
  EU Level: European Parliament adopts services directive

  The European Parliament adopted the services directive at second reading in November 2006. The vote put an end to a longstanding controversy, particularly with regard to the industrial relations impact of the directive. The key contentious issue – the ‘country of origin principle’ – was replaced and EU labour law is not affected by the directive. Furthermore, services of general interest and other sensitive services are excluded from the application of the directive.

• 19 Feb 2007
  Finland: Heavy fines imposed on unions for illegal strikes in pulp and paper sector

  The Finnish Labour Court recently imposed heavy fines on trade unions due to illegal industrial action taken in May 2006 in the pulp and paper sector. However, the Confederation of Finnish Industries considers that the fines are too lenient in comparison with the huge production losses encountered as a result of the industrial action. Despite the severity of the fines imposed, the overall number of strikes held in 2006 represented only a fraction of the level of industrial action reported in 2005.

• 19 Feb 2007
  Finland: Improvements in social security entitlements and tax cuts for employees

  The initiatives of tripartite working groups in 2006 have resulted in the introduction of several legislative changes in Finnish employees’ social security and taxation levels. The majority of these changes are a direct result of the proposals of the tripartite working groups. Some of the changes were introduced in 2006, while the remaining changes came into effect on 1 January 2007. The changes include an increase in maternity allowance, better access to paternity leave for fathers, availability of a part-time sickness allowance, an increase in benefits to promote labour mobility, improvements in relation to contractor responsibilities and reductions in taxation.

• 19 Feb 2007
  Ireland: Government announces another increase in national minimum wage

  In December 2006, the Minister for Labour Affairs, Tony Killeen, announced that he had accepted a Labour Court recommendation to increase the national minimum wage in Ireland to €8.65 from 1 July 2007.

• 19 Feb 2007
  Ireland: Employees awarded compensation for victimisation on grounds of union membership

  The first major group claim of victimisation due to trade union membership, taken under the 2004 Industrial Relations Act, has resulted in a total award of up to €120,000 for 24 claimants, who were former employees of the company Green Isle Foods.

• 19 Feb 2007
  Italy: National pay agreement for local public transport workers signed

  In mid December 2006, employer organisations and the main sectoral trade union federations reached agreement on the renewal of the pay element of the national collective agreement for local public transport workers. Moreover, the government announced details, for the first half of 2007, of meetings that will involve regional authorities, local public authorities and the social partners, and which are aimed at devising adequate initiatives to remedy the sector’s structural difficulties.

• 19 Feb 2007
  Austria: Trade unions reject call for tax relief on childcare by women in business group

  According to the organisation of women entrepreneurs within the Austrian Federal Chamber for the Economy, many self-employed women are in need of private childminding services for their children, rather than more childcare places. Since such private childminding services are more expensive, the women’s organisation is calling for a tax deductibility of 10% of expenditures related to these services. The trade unions are opposed to this proposal, and continue to lobby for the creation of some 50,000 new childcare places.

• 19 Feb 2007
  Austria: New government to amend childcare benefit scheme

  In January 2007, the new coalition government agreed to amend the existing childcare benefit scheme, which – in its present form – does not entirely provide for equal opportunities for men and women in accessing the labour market. The government thus decided to render the scheme more flexible in terms of benefit payments and the period of benefit eligibility. Moreover, it plans to increase the current limit of €14,600 a year on additional earnings. However, the Chamber of Labour considers the government’s planned amendment of the childcare benefit scheme to be inadequate.

• 19 Feb 2007
  Belgium: Agreement reached in French-speaking education sector following strike action

  In early November 2006, the Minister for Education in Belgium’s French-speaking community proposed a draft collective agreement in the education sector for 2007–2008. Negotiations followed between the minister and representatives of the teachers’ trade unions. The trade unions were asking for a wage increase for all teachers and the recruitment of more teachers to provide extra support for students in the first years of secondary school. However, the community’s limited budgetary resources do not allow for such measures to be introduced in the immediate future.

• 19 Feb 2007
  Belgium: New regulations permit theft control of employees

  From January 2007, Belgian employers are entitled to screen people for theft on leaving the company’s premises. This followed consensus among the social partners on 18 October 2006; their recommendations formed a new intersectoral agreement, which was subsequently transposed into law.

• 19 Feb 2007
  Czech Republic: Employer organisation plays active role in human resources projects

  The Confederation of Industry of the Czech Republic, the largest employer organisation in the country, is involved in a large range of activities. In addition to its work in the area of social dialogue, where it defends employers’ interests, it also provides advice to business people, as well as educational and legal services. Moreover, the confederation has been active in human resources development for a number of years.

• 19 Feb 2007
  Cyprus: New law on opening hours and employment conditions for retail workers

  In November 2006, a new law regulating shop opening hours and retail employees’ terms and conditions of employment in Cyprus came into effect. An outcome of social dialogue, the new legislation clearly provides a more favourable regulatory framework in terms of statutory and other forms of protection for workers in the sector, thus meeting many of the demands of the trade unions.

• 19 Feb 2007
  Denmark: President of union confederation calls for moderate wage increase demand

  With the collective bargaining rounds of 2007 properly under way, the President of the Danish Confederation of Trade Unions, Hans Jensen, publicly announced that an annual wage increase of 4% would be a reasonable outcome for employees. Such a significant and unequivocal statement after the start of the negotiations is extraordinary. Given that trade union representatives rather than LO are actually conducting the negotiations, some chairpersons of member unions consider the announcement to be undue interference in the bargaining process.

• 19 Feb 2007
  Estonia: National agreement fixes minimum wage for 2007

  In December 2006, a national level bipartite agreement establishing the minimum wage for 2007 was concluded between the Estonian social partners. The agreement sets the minimum wage at EEK 3,600 (about €230) per month, which represents an increase of 20% compared to the previous year.

• 19 Feb 2007
  Estonia: New law sets out conditions for employee information and consultation

  At the end of 2006, the much debated Employee Representative Act, which requires Estonian employers to inform and consult workers, was passed in parliament. This followed protracted discussions among the social partners, with the trade unions succeeding in having most of their demands met by the new legislation.

• 19 Feb 2007
  Estonia: New bus transport union accused of being management controlled

  In August 2006, following tense negotiations resulting in a new wage agreement, a new trade union was formed in the largest Estonian public bus transportation company, GoBus. However, the old union is now accusing the new union of being manipulated by the company management. A similar case was found in recent years in a railway sector company, which has the same owners.

• 12 Feb 2007
  Belgium: Unions ban extreme right-wing party members

  At the end of October 2006, around 100 members and supporters of the extreme right-wing party Vlaams Belang took part in a demonstration in Liederkerke in the province of Flemish-Brabant. The demonstration was called in reaction to the expulsion of a member of the socialist trade union, the Belgian General Federation of Labour, who was a Vlaams Belang candidate in the municipal elections of the town.

• 12 Feb 2007
  Belgium: Unions sign new intersectoral public sector agreement

  In September 2006, the 2005–2006 intersectoral agreement for the public sector was signed by the Confederation of Christian Trade Unions and the General Confederation of Liberal Trade Unions of Belgium. However, the socialist trade union, the Belgian General Federation of Labour, refused to sign the agreement, which covers all civil servants at federal, regional, local and municipal levels.

• 12 Feb 2007
  Czech Republic: Labour market opened to Bulgarian and Romanian workers

  Since 1 January 2007, the Czech Republic has opened up its labour market to allow the free movement of labour from the two new EU Member States, Bulgaria and Romania. According to the Czech social partners, allowing the free movement of workers from these countries should not threaten the stability of the domestic labour market.

• 12 Feb 2007
  Czech Republic: Social partners hold mixed views on temporary agency work

  The congress of the Czech-Moravian Confederation of Trade Unions, the largest trade union organisation in the Czech Republic, was held in November 2006. Among the topics discussed by the delegates was the issue of flexible work methods. The trade unions discussed the problems in the use of temporary agency employment, which is evidently on the increase. However, businesses and macroeconomic analysts do not agree with those trade unions that are pointing to the potential abuse of this type of employment.

• 12 Feb 2007
  Czech Republic: Collective bargaining in the hotels and tourism sector

  The Czech-Moravian Trade Union of Catering, Hotels and Tourism carries out an annual assessment of the terms of collective agreements concluded with companies, which it then uses as a basis to formulate collective bargaining requirements for the following year. The results of the 2006 assessment show that the scope and structure of commitments contained in collective agreements have been preserved in comparison with 2005, and that there has been no reduction in the quality of the separate points of agreements.

• 12 Feb 2007
  Germany: Poor German language skills hamper job search of unemployed non-nationals

  In December 2006, a report published by the Institute for Employment Research revealed that unemployed persons with an immigrant background undertook less intense searches for a vacant employment position. In addition, the characteristics of the job search differed between people who only or frequently speak German at home and those who do not.

• 12 Feb 2007
  Denmark: Precarious situation of temporary agency workers

  At present, the temporary agency work sector is expanding considerably in Denmark. In 2005, earnings in this sector increased by 35%. The present shortage of labour in the Danish labour market has contributed to the success of temporary work agencies in recent years and employers are very satisfied with the flexibility involved in recruiting a temporary agency worker. However, according to a research paper published in October 2006 by the Employment Relations Research Centre, the legal status of temporary agency workers in relation to a number of working conditions is still precarious.

• 12 Feb 2007
  Denmark: New employer organisation favours more company-level agreements

  At a joint general meeting on 22 November 2006, the Danish Commerce and Services employer organisation and the Danish Chamber of Commerce, a business interest association in services, agreed to merge to form Dansk Erhverv, a new joint employer and business association in the Danish labour market. This new organisation aims to become a major competitor to the currently dominant Danish employer organisation, the Confederation of Danish Industries. Moreover, it aims to put more emphasis on company-level agreements concerning pay, pensions and working time rather than on collective framework agreements.

• 12 Feb 2007
  EU Level: Deadlock in progress on revision of working time directive

  An extraordinary meeting of the Employment, Social Policy, Health and Consumer Affairs Council once again failed in its attempt to reach agreement on the controversial revision of the working time directive. The key issue behind the current deadlock is the so-called opt-out clause in relation to the maximum 48-hour week.

• 12 Feb 2007
  Estonia: Problem of acute labour shortage and migrant workers

  A number of recent surveys have revealed a serious shortage of labour in Estonia. To solve this problem, the proposal to bring in foreign labour has been put forward. However, the social partners, including the government, are more in favour of improving the productivity of employees in Estonia than encouraging the entry of cheap and unskilled workers from abroad into the labour market.

• 12 Feb 2007
  Finland: Increase in cooperation and mergers among trade unions

  Negotiations in relation to trade union mergers are becoming more widespread in Finland. A clear incentive for union mergers is the growing number of mergers among employer organisations, but also the increased disputes over union boundaries.

• 12 Feb 2007
  Greece: New agreement for employees in wholesale and retail trade

  A new two-year sectoral collective agreement covering employees in wholesale and retail trade throughout the country has been signed. The new agreement introduces increases in minimum wages and also addresses non-pay issues. Unlike previous agreements, it regulates telework, support for the family and female employment, as well as vocational education and training for employees.

• 12 Feb 2007
  Greece: Security officials threaten industrial action over unmet demands

  The Minister of Economy and the Minister of Public Order have agreed on implementing one of the basic demands of uniformed employees in the security forces by 2008. However, several other demands remain outstanding and the trade unions are determined to take industrial action if necessary.

• 12 Feb 2007
  Greece: Anticipated high rate of early retirement will affect insurance funds

  A wave of exits from the labour market through early retirement, mainly in the public and broader public sector, is anticipated in 2007, due to workers’ concerns over the imminent reform of the social insurance system. This is the finding of a report from the Panhellenic Federation of Social Policy Organisation Staff. However, if the number of retirees continues to increase significantly, the social insurance funds risk being entirely depleted by the end of the year.

• 12 Feb 2007
  Lithuania: Government shelves social partners’ proposals to increase minimum wage

  In an environment of rapid economic growth and higher average wages, trade unions are lobbying for an increase in the minimum wage and in tax-free allowances. At the Tripartite Council of the Republic of Lithuania, held in October 2006, employer groups supported the trade unions in this aim. However, government representatives requested that the consideration of this issue be suspended until they had a chance to examine the likely consequences of an increase in the minimum wage on the national budget.

• 12 Feb 2007
  Ireland: Bank’s ongoing pension dispute has serious repercussions

  A major dispute over a new pension scheme at the Bank of Ireland has raised serious issues for the recently negotiated national agreement, Towards 2016, as well as highlighting the role of the Labour Court, Ireland’s main dispute resolution body.

• 12 Feb 2007
  Latvia: Labour Law amendments include ban on discrimination on grounds of sexual orientation

  New amendments to the Labour Law came into force on 25 October 2006. The amendments clarify the provision of the law on the prohibition of discrimination on the grounds of sexual orientation; this provision was questioned by the state president in June 2006. The amendments also introduce a number of changes put forward by the Latvian Employers’ Confederation and the Free Trade Union Confederation of Latvia. Among other matters, these modifications increase protection against unfavourable treatment, ease the rules on representation in industry agreements and general agreements, prohibit the asking of questions relating to pregnancy in job interviews, extend the maximum term of a fixed-term employment contract, set a limit on dismissal periods and stipulate payment for justified absence from work.

• 12 Feb 2007
  Latvia: National opera musicians threaten strike action over low wages

  On 13 November 2006, the independent trade union of the orchestra of the Latvian National Opera submitted an application to initiate strike action to the Latvian National Opera Director, the Director of the State Labour Inspectorate and the National Tripartite Cooperation Council. The musicians were lobbying for a substantial wage increase. The Latvian National Opera Orchestra threatened not to participate in scheduled opera and ballet performances in November if their demands were not met.

• 12 Feb 2007
  Norway: Pension reform to favour longer time in employment

  In October 2006, the Norwegian government presented a white paper on a new pension system, to be established from 1 January 2010. The white paper follows on from the broad compromise reached by parliament in the spring of 2005. Moreover, the government has also put forward a resolution which will facilitate a continuation of the controversial early retirement scheme.

• 12 Feb 2007
  Norway: Construction sector agreement extended to protect foreign workers

  In November 2006, the national Tariff Board decided to make parts of the Construction Sector Agreement generally applicable to all employees in Norway’s building and construction sector. This decision will protect non-national workers experiencing inferior wages and working conditions to their Norwegian colleagues. The extension of the agreement was due to come into force from 1 January 2007.

• 12 Feb 2007
  Norway: Government to ban share options for managers in state-owned enterprises

  The government has put forward new guidelines on management remuneration in state-owned companies, in connection with the presentation of its white paper on state ownership in December 2006. The guidelines stipulate that state-owned companies are not to make use of stock options in their management remuneration programmes.

• 05 Feb 2007
  Lithuania: Proposal to merge trade union confederations sparked by recent cooperation

  Following on from the increased cooperation among national trade union confederations in Lithuania, the Lithuanian Trade Union Confederation has initiated discussions on the establishment of one consolidated trade union confederation at national level. So far, neither the Lithuanian Labour Federation nor the Lithuanian Trade Union ‘Solidarity’ have taken a final decision regarding the merger proposal.

• 05 Feb 2007
  EU Level: European framework agreement on equal opportunities signed at Areva

  In November 2006, the European Metalworkers’ Federation announced that it had concluded a European framework agreement on equal opportunities with the management of the Areva Group. The agreement expresses the commitment of the signatories to improve standards of equal opportunities for men and women, and to the professional integration of disabled people within all the structures of the Areva Group in Europe.

• 05 Feb 2007
  Greece: Conflict in education sector triggers strike action

  Following widespread industrial turbulence in the area of third-level education, primary and secondary school teachers in Greece initiated strike action lasting six weeks in September 2006. At the same time, students occupied more than 1,000 lower and upper secondary schools. At the end of October, following a meeting with Prime Minister Kostas Karamanlis, the teachers agreed to return to work. As a result, the government and the trade union federations had to examine ways to make up for lost teaching time.

• 05 Feb 2007
  Lithuania: Unions protest over low pay and plan to extend working hours

  Dissatisfied with unreasonably low wages and employers’ proposals to extend allowable working hours, the Lithuanian trade union confederations held a protest action on 10 November 2006. As part of the initiative, they presented their demands for stronger social guarantees for employees to employer and government representatives.

• 05 Feb 2007
  Italy: Metal company launches employee shareholding scheme

  A metalworking company in the province of Brescia in northern Italy, Metalcam Spa, has offered its employees the opportunity to purchase 10% of the company’s share capital. Around 100 out of 270 workers have already signed up for the initiative, to which some important amendments have been made following talks with the trade unions.

• 05 Feb 2007
  Latvia: New agreement provides wage increase for police employees

  Latvia’s government and police trade unions have signed an agreement on wage increases for employees in the police service. The agreement provides for improving the system of wages and social guarantees for Interior Ministry employees and prison officers, as well as facilitating the work of law enforcement institutions and ensuring staff retention. The agreement is the latest step in an industrial relations process aimed at improving working conditions in the state police force which began in 2004.

• 05 Feb 2007
  Malta: Unrest at Malta Shipyards over financial situation

  While the reforms introduced to make Malta Shipyards economically viable have had a positive impact, the Minister for Investment, Industry and Information Technology has expressed dissatisfaction with the company’s productivity level. The minister has also alluded to the possibility of reducing the workforce or lowering wages. The General Workers’ Union expressed its readiness to discuss the issues but stated that it would not accept any dismissals.

• 05 Feb 2007
  Norway: Supreme court redefines rules on use of temporary employment

  In September 2006, the Norwegian Supreme Court made a ruling in a case involving the use of temporary employment in the form of stand-by duty employment contracts. The ruling reinforces the principle that temporary employees may not fill predictable vacancies in the workforce, and prescribes when so-called substitute or stand-by duty contracts may legitimately be used.

• 05 Feb 2007
  United Kingdom: Government review sets ambitious new targets for skills development

  In December 2006, the government published a report which concluded that the UK must become a ‘world leader in skills’ if it is to secure its future economic and social prosperity. Among the key findings, the report identifies the considerable potential of optimising human resources, and assesses current weaknesses in national skill levels. The study sets out a series of targets and recommendations, and estimates the possible financial rewards in terms of productivity and employment growth. Overall, the leading employer and trade union organisations have welcomed the report.