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September 2007

• 24 Sep 2007
  Slovakia: Legislation amended to extend collective agreements

  The government recently submitted amendments to the Act on collective bargaining to parliament, which endorsed the proposed changes through Act No. 328/2007 (effective since 1 September 2007). The amendments provide for changes relating to the extension of sectoral collective agreements, to the decision of trade unions concerning industrial action and to collective bargaining in cases where more than one trade union is active at the company.

• 24 Sep 2007
  Italy: Innovative agreement signed in chemicals sector

  In June 2007, trade unions and employer organisations in the Italian chemicals sector signed an innovative agreement regarding the industrial relations system. The agreement allows trade union and company representatives, in specific cases, to establish norms by way of derogation from the national collective agreement. The agreement defines the guidelines for managing such derogations and proposes the establishment of a National Bargaining Commission.

• 24 Sep 2007
  EU Level: European Globalisation Fund to assist redundant workers

  Since January 2007, employees affected by restructuring resulting from increased international competition can seek financial support from the European Globalisation Adjustment Fund (EGF) to help them regain employment. In June 2007, the European Commission announced that the first EGF applications – those made by the French government on behalf of two car suppliers – had been forwarded to the European Parliament and the European Council for ratification.

• 24 Sep 2007
  EU Level: Schneider Electric and European Metalworkers’ Federation sign agreement on anticipating change

  The agreement reached in July 2007 between Schneider Electric and the European Metalworkers’ Federation on ‘Anticipating change’ represents another key development in the emergence of a European industrial relations system. This European framework agreement is designed to ensure that change involves the social partners, and is not detrimental to Schneider’s employees. In particular, the agreement commits the company to promoting lifelong learning.

• 24 Sep 2007
  Slovenia: Consensus on social agreement for 2007–2009

  In July 2007, the social partners and the government reached a consensus on the Social Agreement for the period 2007–2009. This was achieved after 18 months of talks and after the three sides had closed the chapter on pay policy, the most contentious issue. Trade unions are particularly satisfied with this chapter because the collective agreements system has been maintained, despite employer demands to negotiate pay at company level only.

• 24 Sep 2007
  Slovenia: New public sector agreement to abolish pay differences

  In July 2007, after five years of negotiations, the government and the public sector trade unions reached agreement on the overall intersectoral collective agreement for the public sector. On the trade union side, 24 trade unions took part in the negotiations and 18 of these signed the agreement. Trade unions and the government will now have to negotiate the provisions of the sectoral collective agreements.

• 24 Sep 2007
  Cyprus: Municipal workers go on strike over outsourcing

  In early June 2007, workers at 26 municipalities in Cyprus held a two-hour token work stoppage, protesting against the use of outsourcing to meet the permanent employment needs of local authorities. The trade unions estimate that about 3,000 workers participated in the stoppage. Over the past year, the level of outsourcing has increased rapidly, despite the assurances of the Ministry of Finance that it would resolve this issue.

• 24 Sep 2007
  Cyprus: New findings on gender pay gap

  In mid July 2007, the Ministry of Labour and Social Insurance presented to the members of the Equality Commission the interim results of a study on the pay gap between men and women in Cyprus. The study contains some disappointing results in relation to the current situation for both women and men, as well as preliminary proposals for addressing the issue.

• 24 Sep 2007
  Cyprus: New measures to reduce accidents at work

  In the light of two fatal workplace accidents in the construction industry, the government has moved swiftly to put in place measures to combat workplace accidents. The measures include setting up a Standing Committee to monitor the implementation of health and safety procedures at worksites and organising special training programmes on health and safety for employers and workers in the construction sector.

• 20 Sep 2007
  United Kingdom: Fall in trade union membership reported

  In 2006, 28.4% of UK employees were trade union members, down from 29% in 2005, according to the government’s annual report on union membership. This is the largest decline in union density since 1998. Among the wider working population, union membership also fell 0.4 percentage points to 25.8%. (This includes self-employed people or participants in development programmes.) As union density among men has also declined, the gap has narrowed between male and female membership levels.

• 17 Sep 2007
  EU Level: ETUC presents trade union demands to Portuguese Presidency

  In late June 2007, a delegation from the European Trade Union Confederation (ETUC) met with the Portuguese Prime Minister to present its trade union memorandum of demands for the next six months. In the document, ETUC raises a number of outstanding questions left unanswered by the EU summit and presents demands that are focused on issues relating to the Intergovernmental Conference, the Lisbon Strategy and the European social model.

• 17 Sep 2007
  Spain: Trade union rejects wage moderation policy

  The General Workers’ Confederation has proposed a series of measures to increase workers’ purchasing power in the economy. The confederation’s priorities include increasing the basic monthly pay rate and raising the national minimum wage to 60% of average monthly pay. However, agreements concluded in the first quarter of 2007 provide for, on average, a pay rise of just 2.87%.

• 17 Sep 2007
  Austria: More flexible working time rules introduced

  In August 2007, the Austrian parliament passed an amendment to the Working Time Act which provides for greater working time flexibility and gives part-time workers a legal claim to premium rates of pay for overtime. While the social-democratic–conservative coalition government and the social partners enthusiastically approve of the new working time legislation, parliamentary opposition and the union groups linked to them have expressed reservations.

• 17 Sep 2007
  EU Level: Commission consults social partners on cross-border transfers of undertakings

  In June 2007, the European Commission initiated consultation proceedings with the social partners on the issue of cross-border transfers of undertakings, businesses or parts of undertakings or businesses. The negotiations mark the first phase of the consultation process provided for under Article 138(2) of the EC Treaty. As it stands, EU legislation does not explicitly address cross-border transfers; thus, the Commission decided to consult with the social partners on the issue.

• 17 Sep 2007
  Ireland: Performance-related pay deal for bank employees

  Management and worker representatives at ACC Bank have concluded a new deal on performance-related pay covering 700 employees. This group includes both non-union members and unionised staff who have traditionally been opposed to performance-related payment systems. The new system sets out a number of terms for existing and new employees at the bank and will be fully operational as of 1 January 2008.

• 17 Sep 2007
  Ireland: Eircom agrees to pay rise under partnership agreement in wake of dispute

  In a dispute that required the intervention of the Labour Relations Commission, the Republic of Ireland’s dominant fixed-line operator, Eircom, has agreed to meet the terms of the national pay deal under the social partnership agreement, ‘Towards 2016’. Moreover, management and the trade unions have expressed their commitment to developing solutions that address the impact of the company’s change programme.

• 17 Sep 2007
  Luxembourg: New initiative aims to integrate young people into employment

  The creation of the employment initiation contract is among the measures introduced by the law of 22 December 2006 promoting job retention. The initiative aims to replace the employment integration internship from 1 July 2007, and represents part of the implementation of the conclusions of the Tripartite Coordination Committee, signed by the social partners in 2006. The purpose of the proposed modifications is to lessen the insecurity currently facing young jobseekers.

• 17 Sep 2007
  Luxembourg: Questions raised over individual jobseeker agreement

  The Luxembourg Chamber of Private Sector Employees and the Chamber of Trades have expressed reservations about a new tool for tackling unemployment. As part of ‘Law 5611’ of 22 December 2006 promoting job retention, the government has introduced the requirement for jobseekers and for the Employment Administration to sign an agreement outlining the assistance given to unemployed persons, as well as defining certain rights and obligations.

• 17 Sep 2007
  Latvia: Low salaries lead to illegal payments in healthcare sector

  Widespread public debate has centred on the issue of illegal payments in the healthcare sector, such as ‘thank-you payments’ paid by patients to medical workers. The Latvian Health and Social Care Workers’ Trade Union argues that the extent of illegal payments in healthcare can only be curbed by making the salaries of healthcare workers more competitive. Plans were underway for a cooperation agreement between the Ministry of Health and the trade union in June 2007.

• 17 Sep 2007
  Netherlands: Crackdown on breaches of minimum wage law

  Since May 2007, the Labour Inspectorate has had the authority to impose fines on employers who pay their employees less than the statutory national minimum wage. This follows amendments to the Minimum Wage and Minimum Holiday Allowance Act, which aim to improve compliance with the act. Up to now, employees had to take formal action themselves in order to address the problem of low wages; in practice, few did so.

• 17 Sep 2007
  Netherlands: Social partners agree measures to increase labour market participation

  In June 2007, the Minister of Social Affairs and Employment signed an agreement with the social partners and municipalities as part of a successful summit focusing on increasing labour market participation – particularly among unemployed women, older employees and people of foreign extraction. In response to the government’s proposal a week later to relax dismissal law, the Dutch Trade Union Federation has announced plans to prepare for industrial action.

• 17 Sep 2007
  Portugal: Social partners have mixed reactions to first draft of labour law reform

  In June 2007, the social partners represented on the tripartite Standing Commission for Social Concertation (CPCS) saw a first draft of the White Paper on labour legislation reform. Their initial reactions suggest that it will be very difficult to reach a consensus on the paper when the final draft is discussed in the CPCS. According to the press, the draft proposes major changes to the current labour legislation.

• 17 Sep 2007
  Portugal: Trade unions divided over public sector reform

  In June 2007, the government reached a final agreement with the Trade Union Front of Public Administration on a new system of employment relations, careers and wages for the public sector. The final draft bill was approved by the Council of Ministers and was due to be presented to the parliament. However, the other main trade unions in the public sector did not subscribe to the agreement and remain concerned about the new system.

• 17 Sep 2007
  Portugal: Agreement reached on public sector performance appraisal system

  In addition to the reforms taking place employment relations, careers and mobility in the public sector, a new performance appraisal system has been under negotiation. The government and the two trade unions affiliated to the General Workers’ Union have reached an agreement on the appraisal system. However, the Common Front of Public Administration Unions did not sign the agreement. The new appraisal system will come into force in January 2008.

• 17 Sep 2007
  Spain: Restructuring of automotive industry hits suppliers

  The automotive industry in Spain is experiencing a period of upheaval caused by the restructuring of multinational car manufacturers. Job losses affecting 3% of total employment in the automotive supply industry were announced between January and April 2007. Among the companies affected are Delphi Automotive Systems and GDX Automotive, both of which are closing manufacturing plants. The trade unions have secured favourable redundancy terms.

• 10 Sep 2007
  France: Unions fear self-checkouts pose threat to jobs in retail sector

  The increasing use of self-service checkouts in French supermarkets is a source of concern among workers in the retail sector. Trade union mobilisation against the various forms of ‘self-checkouts’ in supermarkets began in the spring of 2007 and will most likely continue, as it is estimated that half of all checkout jobs could disappear by 2012. Many of the larger retail stores already have self-service tills installed and plan to expand such options in other stores due to customer demand.

• 10 Sep 2007
  Norway: Social partners issue action plan for preventing stress at work

  The social partner organisations in Norway have agreed on how the European framework agreement on work-related stress is to be implemented at national level. By 1 July 2007, the organisations involved had published guidelines for implementation of the agreement on their websites, and a working group was set up to recommend other measures to help prevent stress at work.

• 10 Sep 2007
  Norway: Influence of collective bargaining model on gender wage gap

  A research report published in June 2007 by the Institute for Social Research examines the effects of the Norwegian bargaining model on the gender pay gap. The report concludes that the main reason for the wage gap is due to men and women being subject to unequal pay within the same collective agreement area. Moreover, gender-based wage differences are greatest in those areas of working life where the so-called ‘trend-setting trades’ model is weakest.

• 10 Sep 2007
  Sweden: Unemployment rate set to increase following new statistical definition

  In October 2007, Statistics Sweden will amend its official statistics on unemployment according to international standards. As a result, people aged 15–74 years and full-time students will be included in the unemployment figures. Previous statistics only included those aged 16–64 years. Hence, the unemployment rate in Sweden will increase by about 2.1%; at the same time, employment will decrease by about 8.7%.

• 10 Sep 2007
  United Kingdom: First fine imposed on defaulting company under consultation regulations

  In July 2007, the Employment Appeal Tribunal imposed a penalty of GBP 55,000 (approximately €81,000) on the publishing company Macmillan for failing to comply with the UK’s Information and Consultation of Employees Regulations 2004. This is the first time that a penalty notice has been issued under the regulations, which came into effect in early April 2005.

• 03 Sep 2007
  Denmark: Merger results in new union for public sector employees

  In June 2007, an important merger took place between two trade union cartels in the public sector. The decision of the Association of Danish State Employees’ Organisations and the Danish Confederation of Municipal Employees to join forces has resulted in a new large joint organisation for public sector employees. The new organisation has been named the Organisation of Public Employees in Denmark.

• 03 Sep 2007
  Finland: Agreement in chemicals sector opens new collective bargaining round

  In June 2007, the Chemical Industry Federation of Finland and the Chemical Workers’ Union reached a new collective agreement for the sector. The 30-month deal is the first in the current national wage policy agreement and is expected to serve as a benchmark for wage increases in other sectors. Most of the other sectors are set to begin talks in August. In the meantime, the Federation of Finnish Technology Industries and the Metalworkers’ Union has also approved a two-year agreement.

• 03 Sep 2007
  Finland: Unemployed job-seekers to be offered contract work

  In accordance with a new guideline issued by the Ministry of Labour, employment offices in Finland are being urged to offer contract work and temporary agency work to unemployed job seekers. However, concerns have been expressed that the new guideline will increase job insecurity and that it is not conducive to permanent employment. The Ministry of Labour argues that there is nothing radically new about the guideline.

• 03 Sep 2007
  Finland: Two thirds of companies have introduced gender equality plan

  A two-year old amendment to the Act on Equality between Women and Men has encouraged more employers to prepare a gender equality plan. Under the revised act, employers with at least 30 workers on a regular basis must draft such a plan, providing for a gender equality assessment, measures for improvement and a review of the previous year’s plan. Although the threat of imposing a fine has worked well, about a third of employers still have no plan in place.

• 03 Sep 2007
  Latvia: Social partners agree on minimum wage increase

  In late June 2007, the government approved the regular increase of the monthly minimum wage to €227, along with an increase of the tax-free threshold to €114. The changes were adopted by the social partners at the National Tripartite Cooperation Council meeting on 20 June 2007 and will take effect as of 1 January 2008. Businesses and local authorities have raised concerns about the minimum wage increase, stating that it will lead to higher employment costs and reduced competitiveness.

• 03 Sep 2007
  Malta: New agreement paves way for privatisation of towage company

  The Maltese government has privatised all of the maritime services with the final privatisation process of Tug Malta Ltd. After a new collective agreement was reached, the government sold its share of Tug Malta to the Italian company Rimorchiatori Riuniti SpA for €24.7 million. The privatisation process was described as a positive one leading to increases in wages, better working conditions and a 10-year job guarantee.

• 03 Sep 2007
  Norway: New early retirement scheme for private sector in pipeline

  A new early retirement scheme in the private sector in Norway is to be proposed by the end of the year. The proposal will be made by a tripartite commission that was set up in June 2007, and the scheme will be incorporated into the wage settlements for 2008. The need for a new early retirement scheme within the private sector was announced as part of the government’s white paper on a new pension system, which was presented last year.

• 03 Sep 2007
  Norway: Labour shortages and unemployment fuel high pay increases

  An interim report on the 2007 wage bargaining round in Norway predicts pay increases substantially above the levels witnessed in 2005 and 2006. A wage drift caused by additional elements such as overtime payments, similar to that found in 2006, will result in a 4.8%–5.8% pay rise in large parts of the economy. With an estimated inflation rate below 1%, this means significant increases in the real wage for Norwegian employees in 2007.

• 03 Sep 2007
  Sweden: Increase in parental benefit has minimal impact on fathers’ take-up rate

  In 2006, parental leave benefit increased from SEK 24,800 (€2,676) to SEK 33,000 (€3,561) a month. The aim of this reform was to motivate more fathers to use extra days for parental leave. A study by the Swedish Social Insurance Agency shows that fathers are generally improving their use of parental benefits, but so far the increased ceiling has had only a modest impact. Women still take on more childcare responsibility and the gender gap remains at the same level.

• 03 Sep 2007
  Sweden: New occupational pension scheme will boost pensions for private sector

  In June 2007, the main social partners signed an agreement on a new collective occupational pension scheme for 2008 and beyond. The annual pension premium will gradually increase from 3.5% to 4.5% over a five-year period. The new pension scheme means that private sector workers will receive an improved pension from 2008. Thus, comparable pension conditions for blue-collar and white-collar workers are established in the private sector.

• 03 Sep 2007
  Sweden: New bill eases barriers to employment of migrant workers

  The government has proposed a new regulation on foreign labour immigration from non-EU countries, which aims to be more flexible and efficient while securing existing working conditions and wages. The bill suggests that employers should be able to hire migrant workers without consulting the National Labour Market Administration or trade unions. Public authorities and the social partners have given mixed reactions to the proposal.

• 03 Sep 2007
  United Kingdom: Partnership deal agreed in papermaking industry

  In June 2007, trade union members approved an innovative and wide-ranging new partnership agreement for the papermaking industry – one of the few UK sectors with national bargaining arrangements. The agreement followed two years of consultation and negotiation, and is based on three key pillars of working in a spirit of cooperation, improving productivity and quality of life, and ensuring security of employment.

• 03 Sep 2007
  United Kingdom: Gender equality still a long way off

  In July 2007, the Equal Opportunities Commission published its final report on gender equality in the UK in areas such as pay and flexible working arrangements. The report concludes that full equality is still generations away and calls for urgent action to close the ‘stubborn gaps’ related to gender equality within 10 years. The report presents a selection of employment-related indicators against which progress can be monitored.

• 03 Sep 2007
  Malta: New agreement gives go-ahead for reform of education sector

  After years of consultation, the Malta Union of Teachers (MUT) and the government have signed an important agreement, which aims to reform the entire education system, starting from kindergarten level. However, tensions have arisen in the area of labour relations. In a press conference during the same week of the agreement, MUT expressed its concern that a number of teachers were allegedly being subjected to harassment during their performance appraisals.