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March 2008

• 24 Mar 2008
  France: ILO rejects two-year ‘consolidation period’ after recruitment

  On 14 November 2007, the International Labour Organization (ILO) judged that the probationary period for employees hired under a new recruitment contract cannot be considered reasonable. This decision, resulting from a trade union referral, puts an end to this type of employment contract. The French government has announced that it will bring its legislation into line with the requirements of the relevant ILO convention.

• 24 Mar 2008
  Estonia: Government agrees funding for lifelong learning strategy

  For several years, the social partners have highlighted the need to increase public financing of lifelong learning policies in order to increase the participation rate closer to the Lisbon Strategy targets by 2010. In January 2008, three Estonian government ministries signed an agreement on the financing principles of lifelong learning for the period 2007–2013, which provides support to both employers and individuals for participation in lifelong learning measures.

• 24 Mar 2008
  Austria: Amended equal treatment act will ensure better compensation

  In late December 2007, the Austrian government agreed on a draft amendment to the Equal Treatment for Men and Women Act, which aims to improve compensation for employees that have been discriminated against on the grounds of their gender. While trade unions are mostly satisfied with the draft amendment, the Green Party deems this initiative as insufficient.

• 24 Mar 2008
  Hungary: Health insurance bill passed despite nationwide protest strikes

  As part of a larger reform package launched in 2006, the Hungarian government has embarked on measures to privatise part of the health insurance system. The proposed health insurance bill, criticised by opposition parties and trade unions, led to a wave of nationwide strikes in late 2007, with professional associations and civil groups staging national-level demonstrations and street rallies. However, the bill was eventually passed, with only minor changes, in February 2008.

• 24 Mar 2008
  Hungary: National strike at railway company over pay

  The Free Trade Union of Railway Workers launched a nationwide strike after several rounds of wage negotiations failed with the Hungarian Railway Company (MÁV). The trade union is demanding a 10% pay increase for employees of MÁV’s outsourced companies, in addition to a bonus of HUF 250,000 to be paid to all railway workers after last year’s privatisation of MÁV Cargo.

• 24 Mar 2008
  Hungary: Coalition parties divided over controversial health insurance reform

  The recently launched government reform has opened the gateway for private investment in Hungary’s health insurance system. Contrary to expectations, and despite strong opposition from professional associations and trade unions in the healthcare sector, the reform, which was proposed by the junior coalition partner, the Alliance of Free Democrats, was passed by the parliament.

• 24 Mar 2008
  Italy: Tripartite agreement on social security, labour market and pensions

  In July 2007, an agreement was signed by the government and trade unions concerning six fundamental areas relating to welfare, labour market and pensions. In October, the Italian trade unions organised a referendum in which all Italian workers could express their approval or disapproval of the agreement. The Italian Federation of White-collar and Blue-collar Metalworkers has criticised this agreement and encouraged its members to vote against it.

• 24 Mar 2008
  Netherlands: Ban on right to strike by police challenged

  After months of negotiation between the police force and the minister of the interior on the renewal of the collective agreement, the police trade unions began threatening industrial action and strikes in December 2007. The courts were divided on the issue, with some ruling out strikes as a means of industrial action and others condoning such steps. The unions and the minister have yet to reach agreement and the police strikes continue. An investigating committee has since been established to assess how much leeway for negotiation exists between the two parties

• 24 Mar 2008
  Netherlands: Government take cautious stance on curbing top salaries

  At the end of 2007, the Frijns Committee, which makes recommendations on policy concerning top salaries, published its third annual report. The committee wants to maintain self-regulation in companies and again spoke out against legislation. Although the finance minister repeatedly referred to the report’s findings in the House of Representatives debate on self-enrichment in top positions, he plans to uphold his original intention to address excessive remuneration using tax measures.

• 24 Mar 2008
  Netherlands: Government to increase controls regarding unfair treatment of Polish workers

  The Labour Inspectorate of the Ministry of Social Affairs and Employment plans to intensify its controls on irregularities concerning the treatment of Polish employees in 2008, but remains less committal about housing problems. In December 2007, the Dutch House of Representatives decided that the ministry must first resolve matters related to Polish workers before discussions could be initiated on granting Romanian and Bulgarian workers further labour market access.

• 24 Mar 2008
  Belgium: Agreement on quotas of carbon dioxide emissions for ArcelorMittal

  In May 2007, the steel group ArcelorMittal announced its intention to reconsider the decision to close the blast furnace in the Liège region of southeast Belgium. After examining the technical and economical possibilities, the management promised to maintain the hot phase in the region on the basis of an agreement concerning its quotas of carbon dioxide emissions respecting the Kyoto Protocol. This decision protects the economic and social life of the region for another four years.

• 24 Mar 2008
  Czech Republic: Ombudsman criticises conditions for temporary agency workers at Škoda Auto

  Recent findings by the Czech Ombudsman on conditions for temporary agency workers at the leading Czech company Škoda Auto have lent support to the trade unions’ criticisms of such employment. According to the findings, Polish workers hired through an employment agency had, contrary to law, experienced inferior working and wage conditions than those of permanent employees. Moreover, the Ombudsman disapproved of the Labour Inspectorate’s approach to the matter.

• 24 Mar 2008
  Estonia: Government presents new draft labour law

  For several years, the government and social partners have aimed to modernise labour law as they consider the current Employment Contracts Act to be outdated. At the beginning of 2008, a new draft version of this act was presented to the public. The draft received strong opposition from trade unions and social democrats, who argue that its content will decrease the social security of employees.

• 24 Mar 2008
  Spain: Collective agreement on telemarketing receives mixed response

  The social partners concluded the fourth collective agreement covering telemarketing services in December 2007. Among the elements included in the agreement are a pay increase and new professional classification and career progression measures. Nevertheless, trade unions are dissatisfied with aspects of the agreement, in particular its inability to help stem the significant rise in company relocation and resulting job losses in Spain’s telemarketing companies.

• 24 Mar 2008
  Spain: Collective agreement renewed in banking sector

  In June 2007, the social partners in the banking sector signed the twenty-first collective agreement for a duration of four years. The agreement provides for considerable wage improvements that tend to be cancelled out by pay practices adopted at company level. Overall, the trade unions welcome the agreement, while branch sections of the main banks are campaigning for the non-absorption of the pay rises defined in the agreement.

• 24 Mar 2008
  Spain: Textile multinational signs social responsibility agreement

  The INDITEX Group, one of the largest clothing distributors in the world, has signed an important framework agreement on corporate social responsibility with the international trade union federation in the sector, namely the International Textiles, Garment and Leather Workers’ Federation. The agreement shows the company’s commitment to respect fundamental rights at work across its entire chain and the procedure for monitoring the agreement’s application.

• 24 Mar 2008
  EU Level: EU moves closer to liberalisation of postal services

  The draft directive on the liberalisation of postal services in the EU, endorsed by the European Parliament on 31 January 2008, represents a move designed to challenge Member State’s monopoly in this important market. The directive’s critics argue that it will lead to the promotion of social dumping, thus undermining postal workers’ terms and conditions of employment. Those in favour of the directive, however, claim that this final draft attempts to alleviate such fears.

• 24 Mar 2008
  Finland: Confederation of Finnish Industries brings trade union to Labour Court

  The affiliated associations of the Confederation of Finnish Industries (EK) have summoned the Union of Salaried Employees (TU) to the labour court. According to EK’s Director of industrial relations, Seppo Riski, TU has become the cause of major disturbances in the Finnish labour market in recent times as a result of the various kinds of industrial action organised by the union.

• 24 Mar 2008
  Hungary: Wage increase agreed after protracted negotiations

  In December 2007, the National Interest Reconciliation Council finally reached agreement on the annual wage increase for 2008. The wage increase is set at 5%–7.5% as a recommendation for lower-level wage settings. Initially, both employers and employees rejected the government’s 4.8% wage increase proposal, while negotiations were further interrupted following the wave of demonstrations and strikes that took place in December.

• 17 Mar 2008
  Romania: Dispute breaks out at mining company over pay

  On 12 February 2008, after unsuccessful negotiations over a new collective agreement at the CNH hard-coal mining company in Romania, the LSMVJ miners’ trade union formally launched a collective dispute procedure, which will end in a strike if no deal is reached. Since then, two rounds of mediation have taken place, without success. The dispute centres on union demands for a 25% pay increase.

• 17 Mar 2008
  Romania: Public sector union calls for general strike over pay demands

  In February 2008, the two main trade union organisations in the Romanian public administration sector, FNSA and Alianţa SED LEX, held token and warning strikes in support of demands for major pay rises. With the government making no concessions on the wage demands, FNSA has taken the first steps towards calling a sector-wide general strike in April.

• 17 Mar 2008
  Portugal: White Paper on labour relations highlights adaptability and security issues

  At the end of December 2007, the Portuguese Minister of labour presented a White Paper on labour relations. Based on the White Paper’s recommendations, at the end of the first quarter of 2008, the government will present a draft bill on the revision of labour law, taking into account ongoing discussions with the social partners. The White Paper presents a detailed and extensive examination of the Portuguese labour market, followed by a number of recommendations for the revision of the Labour Code. This article focuses on the first part of the Paper.

• 17 Mar 2008
  Italy: National collective agreement in metalworking industry renewed

  In January 2008, after seven months of negotiations, the social partners in the metalworking sector signed the draft agreement for the renewal of the national industry-wide collective agreement. Among the new and innovative provisions introduced are the six-month extension of the agreement’s duration, an increase in gross pay of €127 and the equalisation scheme for blue-collar and white-collar workers as regards both pay and normative aspects of the agreement.

• 17 Mar 2008
  Greece: Company-level agreement for journalists signed at Hellenic Radio & Television

  An enterprise-level collective agreement was signed on 6 February 2008 by the management of the Greece’s state-controlled Hellenic Radio & Television (ERT) and the ESIEA trade union, covering around 800 journalists. The deal comes at a time when industrial relations in journalism, at both ERT and the country’s other media organisations, are dominated by a government plan to merge the special social insurance fund for journalists with other insurance funds, which is opposed by ESIEA.

• 17 Mar 2008
  France: Social partners sign agreement on labour market reform

  After four months of collective bargaining, on 11 January 2008, employer organisations and four trade union confederations reached an agreement on ‘modernising the labour market’. The agreement lays the basis for a French version of ‘flexicurity’; it establishes more flexible conditions regarding recruitment of workers and termination of employment, on the one hand, while maintaining some employee rights if the employment contract is terminated, on the other.

• 17 Mar 2008
  Austria: Seven out of 10 hospitals infringe working time regulations for doctors

  According to the Labour Inspectorate, seven out of 10 Austrian hospitals systematically breach the Hospitals’ Working Time Act in order to save on personnel costs. Moreover, the infringements are found almost exclusively in the public hospital sector. In response to these findings, the Austrian Chamber of Doctors, along with trade unions and the responsible government ministry, have requested the introduction of sanctions that can be imposed on public hospital operators in breach of the labour law.

• 17 Mar 2008
  Norway: ILO convention on labour clauses applied to municipal authorities

  As of 1 March 2008, an administrative provision implementing International Labour Organization (ILO) Convention No. 94 on labour clauses in public contracts places an obligation on all Norwegian public authorities to include a clause regarding wages and working conditions in their tenders. Up to now, this obligation has only been applicable to the central authorities and not the public sector at municipal level.

• 17 Mar 2008
  Portugal: White Paper on labour relations generates controversy among social partners

  In January 2008, the Portuguese social partners reacted to the recommendations for reform of the Labour Code contained in a government White Paper on Labour Relations. Given their very different reactions, it seems that the process of concertation launched by the government over Labour Code reform will not be a easy one. The social partners are divided over issues such as the relationship between law and collective agreements, limits to fixed-term contracts, the regulation of dismissals, the duration and adaptability of working time, and rules on the lapsing of collective agreements.

• 17 Mar 2008
  Romania: Rail workers hold ‘spontaneous’ work stoppage in pay dispute

  On 1 February 2008, employees at three Romanian rail companies held a three-hour ‘spontaneous’ work stoppage in a dispute over wage increases for 2008 . The Minister of Transport claimed that the strike had in fact been coordinated by trade unions. If no agreement is reached in current pay talks, trade union leaders state that a nationwide strike may be organised in the railway sector at the end of March.

• 17 Mar 2008
  Sweden: Job dissatisfaction findings fuel debate on labour law reform

  According to a new report by the Confederation of Swedish Enterprises, some 350,000 employees in Sweden are dissatisfied with their jobs. The confederation believes that amending the Employment Protection Act (LAS) is a key factor for increasing mobility in the labour market. However, the Swedish Trade Union Confederation argues that workers’ dissatisfaction is instead related to poor working conditions. Surprisingly, the issue of amending the LAS has remained absent from the national political agenda.

• 17 Mar 2008
  United Kingdom: Trades Union Congress publishes latest equality audit results

  In September 2007, the Trades Union Congress (TUC) published the results of its third biennial equality audit of its affiliated organisations. It is clear from the report that the TUC is counting on trade unions to make progress on equality issues. However, while the evidence of improvements is positive in some areas, in others it is less so, such as in relation to trade unions’ equality record as employers and problems experienced in recruiting specialist workplace equality representatives.

• 17 Mar 2008
  United Kingdom: Employment advice and conciliation body deemed cost effective

  The government recently announced extra funding and an enhanced role for the state-funded Advisory, Conciliation and Arbitration Service (Acas), enabling earlier and more flexible conciliation in individual workplace disputes and expanded advice services. This follows an independent study, published in November 2007, which found that activities of Acas have a positive and substantial impact on the UK economy, generating benefits worth almost GBP 800 million (€1.07 billion) a year.

• 17 Mar 2008
  Belgium: Social partners sign agreements on wage bonuses and early retirement

  As a result of political tensions, Belgium’s new federal interim government was not elected until the end of December 2007. Despite the political crisis, the national social partners did not abandon their talks and managed to conclude a range of new national intersectoral collective agreements on early retirement rules and result-based wage bonuses.

• 17 Mar 2008
  Finland: Study reveals allegations of sexual harassment in parliament

  An extensive discussion on sexual harassment has taken place, following the publication of findings which show that as many as one third of women employed by the Finnish parliament report having experienced sexual harassment in the workplace – in particular, verbal and even physical harassment – often by members of parliament (MPs). As a result, a number of female MPs want to examine the possibility of widening the scope of gender equality legislation.

• 17 Mar 2008
  Greece: Enterprise-level collective agreement signed at National Bank

  In early January 2008, a two-year enterprise-level collective agreement was signed at the National Bank of Greece, Greece’s biggest bank, The agreement provides for improvements in various pay allowances (increases in basic pay are regulated by the sectoral collective agreement for the whole banking industry) and in other areas, such as equal leave entitlements for natural and adoptive parents.

• 17 Mar 2008
  Greece: Bargaining begins over new national collective labour agreement

  On 30 January 2008, representatives of trade unions and employers held a first meeting to discuss the conclusion of a new National General Collective Labour Agreement (EGSSE), covering 2008-2009. The GSEE union confederation presented demands for a 10.4% rise in minimum pay rates.

• 17 Mar 2008
  Italy: Telework in Italy

  The signing of a national interconfederal agreement transposing the European framework agreement on telework, concluded by the European social partners in 2002, sets out the general points of reference for telework regulation in Italy. Although data is lacking on the prevalence of telework, some findings reveal that telework is more prevalent in certain sectors and in large companies in Italy. This article looks at the extent of telework and explores the progress in implementing the EU framework agreement.

• 17 Mar 2008
  Lithuania: Education sector trade unions threaten indefinite strike

  Trade unions in the education sector in Lithuania are seeking a significant wage increase for teachers in 2008. Alleging violations by the government of a 2005 pay and working conditions agreement, and dissatisfied with progress in talks on long-term pay rises, some trade unions in the sector threatened to launch an indefinite strike on 3 March 2008.

• 17 Mar 2008
  Latvia: New government makes headway with unions in talks on healthcare pay

  Following a change of government in December 2007, the trade unions started negotiations with the new government on the unresolved issue of healthcare workers’ pay and on efforts to strengthen social dialogue. The social partners have since reached agreement on general issues of healthcare workers’ pay and signed a sectoral agreement. Meanwhile, the Free Trade Union Confederation of Latvia is lobbying for a referendum on amendments to Latvia’s Constitution.

• 17 Mar 2008
  Netherlands: Union slams measure requiring under 27 year-olds to work or study

  Young people under the age of 27 years are no longer eligible for benefits, but must instead work, study or combine these two activities. The youth wing of the Dutch Trade Union Federation, FNV Jong, is highly critical of this measure and views it as a form of age discrimination. In financial terms, the plan means that young people will end up being below the breadline and that social security will be abolished for everyone aged under 27 years.

• 10 Mar 2008
  Sweden: Tackling the shortage of skilled labour in industry

  Some sectors, mainly in industry, are experiencing skilled labour shortages, causing a potential loss of competitiveness for businesses. Employer organisations recommend immigration as a possible solution to this problem, while trade unions highlight the need for improved education to match the needs of industry. Although the social partners agree on the need to attract foreign labour to tackle the problem, they differ in their views on how this should be achieved.

• 10 Mar 2008
  Greece: ILO examines future of social security system

  In October 2007, the International Labour Organization (ILO) published the preliminary findings of an actuarial study on the prospects for Greece’s main social security and pension funds. The report argues that if the state meets its commitments to finance the social insurance system, this would prevent any problems of viability at least until 2025. The employers and trade unions agree on the importance of observing the state’s statutory financial obligation to the insurance system.

• 10 Mar 2008
  Ireland: New leader of Unite union vows to tackle membership decline

  Promising to target non-union and anti-union companies through a sector-based organising strategy, the new regional secretary of the Irish branch of the trade union Unite has warned that ‘no-go areas’ do not exist for this newly-merged union. In promoting trade union expansion, he argued that the trade union movement should recognise that it does not need to be dominated by the largest union and that all unions should have equal recognition.

• 10 Mar 2008
  Norway: Most companies fulfil female board representation quota

  When the transition period of the new legislation stipulating 40% female representation on company boards expired on 1 January 2008, around four out of five Norwegian companies had met the requirement. A minimum proportion of approximately 40% of both sexes must now sit on the boards of all major Norwegian companies. The rules apply to more than 500 privately-owned public limited companies in Norway, among them the largest private sector companies.

• 10 Mar 2008
  Portugal: New finance sector union federation formed

  On 6 December 2007, five banking and insurance trade unions announced the creation of the Finance Sector Federation (FEBASE), which aims to enhance their bargaining power and reflect the increasing integration of the banking and insurance sectors. FEBASE, affiliated to the General Workers’ Union, will be one of the more powerful trade union structures in Portugal, representing about 80,000 employees.

• 10 Mar 2008
  Sweden: European Court ruling on the Laval case will restrict right to industrial action

  At the end of 2007, the European Court of Justice delivered its verdict on the Laval case, restricting the use of industrial action in relation to the free movement of services. The main parties involved in the case were the Swedish Building Workers’ Union and the Latvian construction company Laval. The court ruling was surprisingly in favour of the Latvian company, having major implications for the Swedish labour market and the social partners.

• 10 Mar 2008
  Bulgaria: Budget introduces controversial flat tax rate

  In late December 2007, the Bulgarian parliament adopted the state budget for 2008. The most contentious issue was the introduction of a flat income tax rate of 10%, and the abolition of the minimum threshold for taxable income. This decision was welcomed by employers but opposed by trade unions. Some commentators are surprised by the move, as many other European countries have maintained or increased their minimum income threshold for taxation purposes.

• 10 Mar 2008
  Bulgaria: Implementation of economic and social pact evaluated

  In November 2007, the Bulgarian government and the representative national-level employer organisations and trade union confederations reported on the implementation of the 2007–2009 tripartite pact on economic and social development during the first half of the year. The pact is the first of its kind in Bulgaria and its implementation will be evaluated every six months. The latest evaluation relating to the first half of 2007 was a mixed one.

• 10 Mar 2008
  Germany: 2007 collective bargaining round examined

  In January 2008, the Institute for Economic and Social Research presented its annual report on Germany’s 2007 collective bargaining round. The study evaluates collective agreements concluded in 2007, affecting some 9.1 million employees. The average increase in collectively agreed wages and salaries was 2.2% in 2007, which was above the 1.5% increase of the previous year. According to the Federal Statistical Office, actual gross wages and salaries only rose by 1.3% in 2007.

• 10 Mar 2008
  Germany: Pact on apprenticeships exceeded objectives in 2007

  At the end of January 2008, the outcome of the fourth year of the pact on apprenticeships was presented. The parties involved, including the federal government and several umbrella organisations of employer and business associations, stated that increasing efforts had been undertaken to create new vocational training places. The trade unions’ umbrella organisation, however, doubted that the pact had led to a noticeable improvement in the training prospects of young workers.

• 10 Mar 2008
  Denmark: Metal employers agree to pay employees’ union fees

  Shop stewards within the Danish Metalworkers’ Union have taken new initiatives in the long-lasting fight against the so-called ‘yellow’ trade unions in an effort to curtail their own membership decline. For the first time ever, the trade union has signed a local agreement with companies, through which employers agree to pay their employees’ union membership fee as a fringe benefit.

• 04 Mar 2008
  Italy: Parliament approves tripartite agreement on welfare, labour market and pensions

  At the end of November 2007, the Italian parliament approved a bill transposing the tripartite agreement signed on 23 July by the government, employer organisation Confindustria and trade unions. The agreement concerns six principle areas: pensions, social ‘shock absorbers’, the labour market, competitiveness, young people and women. Moreover, it lays the foundations for an Italian system of ‘flexicurity’, combining flexibility and employment security.

• 04 Mar 2008
  Greece: Employers’ research institute calls for social security reforms

  A report published in late 2007 by the Foundation for Economic and Industrial Research (IOBE), the research institute at the Federation of Greek Industries, calls for reforms of the social insurance system. IOBE identifies the ageing population, a decline in the birth rate and organisational characteristics as the main problems associated with the system. The report presents IOBE’s reform proposals and includes an analysis of employment and unemployment trends.

• 04 Mar 2008
  France: Protracted negotiations on issue of arduous work

  After more than a year’s break, intersectoral bargaining on the issue of arduous work started again in June 2007. Negotiations remain difficult and no agreement has yet been reached on the practical details of introducing early retirement as compensation for the arduous nature of certain working conditions. The employers want evidence of an impact on the worker’s health, while trade unions consider that any exposed worker should be entitled to early retirement.

• 04 Mar 2008
  Finland: Legislative reform to improve employment rights and conditions

  A number of labour market changes in Finland came into effect in January 2008. Legislation providing a right to sabbatical leave has been renewed for 2008–2009. Furthermore, failure to report reasonable grounds of terms and conditions of employment will constitute an offence, punishable by a fine. Following a six-month transition period, the revised Act on cooperation within undertakings is now also in force in companies with 20−29 employees.

• 04 Mar 2008
  Spain: Law reinforces ban on recruitment in public sector via temporary agencies

  The new Public Sector Contracts Law maintains the restrictions on public sector recruitment through the use of temporary work agencies. This latter amendment came about as a result of trade union demands and was reinserted in the draft bill by the Senate. However, temporary work agencies are calling for an amendment to the law in line with European legislation on non-discrimination and free competition.

• 04 Mar 2008
  Bulgaria: Six-week teachers’ strike comes to an end

  The six-week long teachers’ strike that ended in November 2007 represented the biggest national protest in Bulgaria, but was called off in time to welcome the students back to the classrooms. This decision came about after the government cabinet announced a 22.5% increase in wages for all employees in education and an allocation of 4.22% of the national gross domestic product for the education sector for 2008.

• 04 Mar 2008
  Greece: Assessing labour market access for people with disabilities

  On 3 December 2007, which is Greece’s National Day of People with Disabilities, the National Confederation of People with Disabilities submitted its annual report to parliament. The report examines the issue of disabled people’s access to working life. Some 84% of this group are outside the labour market. The existing quota system for recruitment of people in vulnerable social groups is inadequate to cater for those with disabilities.

• 04 Mar 2008
  Greece: General strike over proposed social insurance reform

  In December 2007, Greece witnessed its biggest general strike in recent years. The protesters’ main demand was for the government to retract its plans to reform the social insurance system. The trade unions reported a high level of participation in the strike in both the public and private sectors. The employer organisation the Federation of Greek Industries also expressed its support for the workers’ demands and is seeking more meaningful dialogue on the reform issue.

• 04 Mar 2008
  Greece: Study examines employment trends in Greece

  In September 2007, the Labour Institute of the Greek General Confederation of Labour and the Confederation of Public Servants published its annual report on the Greek economy and employment. The report includes a detailed study of employment and unemployment in 2006. For example, the unemployment rate declined to 8.9%, and women represented 70% of the increase in employment from 2005 to 2006. Most of the overall recruitment occurred in the public sector.

• 04 Mar 2008
  Hungary: Agreement signed on pay rise in public sector

  In December 2007, the government and public sector trade unions reached agreement on an average wage rise of 5% for 2008. In effect, this means that there will be no real wage increase in the sector, as the government forecasts annual average inflation of 4.8% for 2008. The agreement can be viewed as a bargaining success for the government, as – unlike previous years – it was concluded before the lengthy negotiations for the private sector agreement ended.

• 04 Mar 2008
  Ireland: Benchmarking body recommends pay freeze in public sector

  The Public Service Benchmarking Body (PSBB), which compares pay and conditions between the public and private sectors, has decided that the vast majority of the state’s 300,000 public servants should not receive any pay increase other than the rises agreed on as part of normal national pay negotiations. It concludes that ‘this reflects pay practices in the private sector’. The decision is based on the findings of a report issued by the PSBB in January 2008.

• 04 Mar 2008
  Luxembourg: Conflict between management and unions at Luxair

  At a time when multiple changes are taking place at the Luxair airline company, tensions have risen between management and the Luxembourg Confederation of Independent Trade Unions (OGB-L). The management is uncertain about the confederation’s ability to act as a social partner, while OGB-L accuses management of a lack of understanding and proper dialogue. In recent months, grievances against the management have increased, with particular focus on the reorganisation plans for the company’s call centre.

• 04 Mar 2008
  Norway: Woman wins equal pay case against the state

  The decision of the Norwegian Equality and Anti-discrimination Tribunal to reject the complaint of a female senior consultant against her employer for breaching the principle of equal pay for work of equal value, according to Norwegian law, was overruled by a court of law in November 2007. The court ruled that the decision made by the tribunal was invalid.

• 04 Mar 2008
  Portugal: Trade union demonstration ‘For Social Europe - Jobs with rights’

  In October 2007, between 150,000 and 200,000 people participated in a demonstration in Lisbon under the motto ‘For Social Europe – Jobs with rights’, organised by the General Confederation of Portuguese Workers. The event coincided with an informal European Council meeting organised by the Portuguese EU Presidency. At a Tripartite Social Summit on the same day, the European social partners presented a joint analysis of the challenges facing EU labour markets.

• 04 Mar 2008
  Portugal: Public sector workers strike over government imposition of 2.1% pay rise

  At the end of November 2007, all of the trade unions in the Portuguese public sector held a national strike against a government decision to impose a 2.1% pay increase for the sector’s employees. The trade unions were protesting at what they saw as government intransigence in negotiations and at the continuous decline in the purchasing power of public sector employees, which, according to the unions, has decreased by between 7% and 10% in the last seven years.

• 04 Mar 2008
  Sweden: Smooth collective bargaining round in 2007

  Overall, the collective bargaining round in 2007 has run very smoothly despite the significant number of agreements to be renegotiated and the trade unions’ perception of being threatened by the government reforms of the unemployment and social insurance systems. Two major industrial conflicts involved the construction and transport sectors, while some wildcat strikes occurred in protest against plant closures or in support of wage claims.

• 04 Mar 2008
  Slovenia: Elections to National Council concluded

  In November 2007, the elections to the National Council (DS), the second chamber of parliament, were concluded. Among the new councillors, four employer and four trade union representatives have been elected. Many experts say that the DS is not in a position to operate more effectively because of its lack of power. Therefore, the question remains whether the council should be transformed or abolished.

• 04 Mar 2008
  Slovakia: Pay increase agreed for public sector in 2008

  In January 2008, the new sectoral collective agreements for civil servants and public servants entered into effect. Employment conditions provided for in these agreements are similar to those agreed for in 2007. However, employees’ pay rates and annual salaries differ. From 1 January, basic pay for civil servants will increase by 3% and for public servants by 4%. In previous collective agreements, agreed pay increases entered into effect on 1 July of the calendar year.

• 04 Mar 2008
  Czech Republic: Tax break on meal vouchers to be scrapped

  In January 2008, the Czech government drew up a draft act abolishing the tax break on meal vouchers. The public finances reform approved last year had planned on this step, but the tax benefits of meal vouchers were left unchanged in the final version of the reform. The new draft act now has a real chance of being passed, which has given rise to contradictory reactions. Some commentators believe that all sides will lose out, while others think it will make little difference.

• 04 Mar 2008
  Estonia: New collective agreement in road transport sector

  At the end of 2007, a new sectoral collective agreement was concluded in road transport after intense negotiations and just before the sectoral trade unions were about to announce strike action. The new agreement took effect on 1 February 2008. The agreement’s provisions cover the whole sector and concern working time and rest time, as well as pay issues including minimum wage levels for workers in road transport.

• 04 Mar 2008
  Spain: Negotiations start on renewal of collective bargaining agreement

  Negotiations have begun between the trade unions and employer organisations on the Agreement on Collective Bargaining (ANC) for 2008. Wage moderation and gender equality plans in companies are the main bargaining topics for the renewal of the agreement. Moreover, the agreement will address the development of the Spanish Strategy of Health and Safety at Work, as well as other workplace issues such as recruitment, training, job security and absenteeism.

• 04 Mar 2008
  Finland: Workers react to threat of closure of paper pulp mills

  In January 2008, about 300 people staged a sit-in protest against the proposal of paper manufacturer Stora Enso to close its local pulp mill in Kemijärvi in northern Finland. The company subsequently announced that it would cut its Finnish workforce by 985 people and close its Kemijärvi and Summa mills. Recently, political and trade union pressure to save pulp mills has grown, despite the government’s reluctance to interfere.