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April 2008

• 30 Apr 2008
  Netherlands: Telework in the Netherlands

  Statistics show that the incidence of telework in the Netherlands has been rising since 2000, regardless of the precise definition used. The government has encouraged the use of telework by introducing tax benefits for employers who facilitate such work. This article looks at the extent of telework in this country and explores the progress in implementing the EU framework agreement on telework, concluded by the European social partners in 2002.

• 30 Apr 2008
  Poland: Lengthy industrial conflict at Budryk coal mine settled

  One of the longest disputes in the Polish coal mining industry which lasted 46 days has been brought to conclusion on 31 January 2008. Before an agreement was concluded, the conflict between the workers at the Budryk hard coal mine and the management of the Jastrzębska Coal Company, the mine’s owner, had escalated. The dispute led to a hunger strike among several miners, a protest in the city of Warsaw by the wives of the miners involved and altercations among the miners themselves.

• 30 Apr 2008
  Sweden: Evaluation of ‘Plus job’ scheme for long-term unemployed

  An evaluation of the ‘Plus job’ programme in Sweden indicates that it had positive effects on the labour market, and the social partners were satisfied with the scheme. The initiative sought to improve the situation of long-term unemployed people and to enhance the service level in the public sector. However, the termination of the programme has caused acrimony between the local authorities and the government, with the former threatening legal action.

• 30 Apr 2008
  Slovenia: Telework in Slovenia

  Recent amendments to the Law on Labour Relations in Slovenia have introduced a specific reference to telework. However, only about 2.2% of the employed population were teleworking in 2005. Such workers tend to have a higher educational profile. This article looks at the extent of telework in Slovenia and explores the progress in implementing the EU framework agreement on telework, concluded by the European social partners in 2002.

• 30 Apr 2008
  Germany: Social partners slam proposed subsidy scheme for vocational training

  The federal government plans to introduce a general subsidy scheme for initial vocational training. The scheme provides a financial incentive for companies to create additional apprenticeship places for young people who have successively failed to conclude a vocational training contract. However, employer organisations and trade unions reject the planned subsidy scheme and have called for major changes to the draft bill.

• 30 Apr 2008
  EU Level: Commission launches new consultation on revision of EWC Directive

  In February 2008, the European Commission invited social partners to consult on the revision of the 1994 Council Directive on European Works Councils (EWCs) – one of its legislative priorities for 2008. With this long-awaited step, the process of revising the EWCs Directive enters a new and decisive phase. The European Trade Union Confederation and other European trade unions welcomed the second-phase consultation, while BusinessEurope has opposed this step.

• 30 Apr 2008
  Luxembourg: NZV union debates on whether to participate in workplace elections

  The Autonomous Railway Workers’ Association has been in existence since 2001 but has maintained a low profile with regard to its activities. The trade union now wishes to position itself among the two main traditional railway workers’ trade unions – the National Federation of Railway and Transport Workers, Civil Servants and White-collar Workers, and the Christian Transport Workers’ Trade Union – and is discussing the possibility of participating in the next employee representative elections.

• 22 Apr 2008
  Sweden: Controversy over proposed reform of national sickness insurance system

  The government is proposing major reforms of the country’s national sickness insurance system. However, these reforms are to be partly revised following strong criticisms from the social partners and the Swedish Social Insurance Agency. According to the government, an urgent reform of the social insurance system is necessary in order to increase the overall employment rate, particularly that of older workers.

• 22 Apr 2008
  Italy: Government prioritises workplace safety after fatal accident at steelworks plant

  In December 2007, a fire at the Thyssen Krupp steelworks plant in Turin in northwestern Italy resulted in the deaths of seven workers. Media reports of the incident reflected the deep shock of the public and made workplace safety a national emergency issue, placing it high on the political agenda. The day after the accident, the Turin Prosecutors’ Office opened an investigation and placed the company’s Italian executives on the register of suspects.

• 22 Apr 2008
  Germany: Trade union membership decline arrested in 2007

  According to the Confederation of German Trade Unions (DGB), membership of its affiliated trade unions declined by 2.2% in 2007, falling to 6.44 million members. Although overall membership continued to decline, the unions managed to minimise their losses compared with previous years. The German Metalworkers’ Union remained the largest DGB-affiliate with 2.3 million members followed by the United Services Union with 2.2 million members. Women’s union membership remained unchanged at 31.9%.

• 22 Apr 2008
  France: Workplace elections in public hospitals

  In October 2007, almost 800,000 hospital staff with civil service status were invited to elect their representatives for various consultative bodies at département and local levels. These elections took place at a time when hospital staff had taken action on several occasions against problems of understaffing and overtime payment. Compared with the 2003 elections, the distribution of votes remained the same, but turn-out of voters dropped to a worrying degree.

• 21 Apr 2008
  France: Social partners criticise new law on purchasing power

  After the law on ‘work, jobs and purchasing power’ adopted in August 2007, the French parliament adopted another law ‘promoting purchasing power’ on 31 January 2008. The latest measures concern employees and tenants. Elements with regard to the former include extra pay instead of days off work and earlier access to employee savings schemes. Both employers and trade unions are critical of the new law.

• 21 Apr 2008
  France: Unions slam proposals for economic growth in Attali’s report

  On 24 January 2008, five months after the President of the Republic initiated the creation of a commission to seek ways of aiming to achieve full employment again, the latter submitted its report with more than 300 proposals. The majority of the recommendations should be taken on board by the government. However, following demonstrations and heated discussions in relation to the report, some of the proposals have already been abandoned.

• 21 Apr 2008
  Hungary: Conference reviews role of Economic and Social Council

  In January 2008, following the third anniversary of the establishment of the Economic and Social Council, a conference reviewed how the council has functioned so far, assessed its merits and demerits, and made recommendations for improving its legal background and policy context. Earlier a smaller international workshop, attended by experts from the International Labour Organization, also discussed the Hungarian social dialogue system in a European perspective.

• 21 Apr 2008
  Hungary: MALÉV Airlines to terminate collective agreement

  Having failed to reach a consensus with trade unions, MALÉV Hungarian Airlines decided to terminate its collective agreement. The company intends to replace the current agreement with one which ensures flexible terms and conditions of employment and adapts more easily to market changes. Trade unions at MALÉV were surprised to learn about the company’s decision from the media. The agreement is still in force until the end of May 2008, which may give the parties involved enough time to re-negotiate its terms.

• 21 Apr 2008
  Ireland: New employment rights bill to enhance worker protection

  The final Employment Law Compliance Bill 2008, which was published on 18 March 2008, substantially revises the law in relation to the enforcement of employment rights. Moreover, the bill provides for the establishment of the National Employment Rights Authority (NERA) on a statutory footing with greater enforcement powers than its predecessor, the Labour Inspectorate.

• 21 Apr 2008
  Ireland: Green party Minister defers electricity assets transfer

  The Minister for Communications, Energy and Natural Resources, Eamon Ryan of the Green Party, has decided to defer the proposed transfer of the assets of the national electricity grid from the state-owned Electricity Supply Board (ESB) to a separate state-owned company, EirGrid. This decision will please the management of ESB and its trade unions, which had been threatening industrial action if the transfer went ahead.

• 21 Apr 2008
  Luxembourg: New ’internal’ trade union set up in financial services sector

  Up until now, employees in the financial services sector were represented by the two national trade unions and a sectoral trade union. During the last social elections in November 2003, the latter gained over half of the mandates for personnel representatives. However, in January 2008, a new trade union was established – the Independent Federation of Employees at Dexia – the sole purpose of which is to represent the interests of employees within the Dexia bank in Luxembourg.

• 21 Apr 2008
  Romania: National Observatory for Employment and Vocational Training to be established

  Following consultations with national social partner organisations, the government has drawn up a bill on the establishment, structure and operation of a National Observatory for Employment and Vocational Training, which was published in March 2008. It is planned that the new Observatory will play an important role in Romania’s labour market strategies and policies.

• 21 Apr 2008
  Sweden: New employment initiative to combat social exclusion and foster employment

  In order to combat social exclusion and to increase company growth and entrepreneurship, the Swedish government has initiated a concept of ‘New Start Offices’ located in areas of high unemployment. As these areas also contain large immigrant communities, the new initiative takes into account aspects of integration policy, according to the Ministry of Enterprise. The social partners gave a mixed reaction to the initiative.

• 21 Apr 2008
  Slovakia: New collective agreement reached after tough bargaining in metal sector

  The Metal Trade Union Association demanded a 7% wage increase in the sectoral collective bargaining round for 2008. Employers in the mechanical engineering industry refused this request, offering only a 3.5% wage rise. As a result, the trade unions threatened to take strike action. After much negotiation, the employers agreed to increase basic wage tariffs by 6.5% from 1 April 2008, in return for more flexible use of some employment contracts and organisation of working time.

• 21 Apr 2008
  Austria: Constitutional amendment endorses role of social partners

  In December 2007, the Austrian parliament passed an amendment to the Austrian Constitution, which acknowledges and promotes the central role of the social partners. While the initiative has largely been welcomed by the main social partner organisations, the parliamentary opposition and the Federation of Austrian Industry have strongly criticised the move. Moreover, the amendment fails to regulate the issue of compulsory membership of the chambers.

• 21 Apr 2008
  Belgium: Workers demand higher wages in series of unofficial strikes

  A wave of unofficial strikes took place in Belgium between December 2007 and March 2008. The workers involved are demanding higher wages to offset rising energy and food prices. However, employers have strongly criticised the strikes. For their part, the trade unions supported the workers’ demands, but also tried to ease the situation. Meanwhile, the newly-formed government reacted by announcing new tax redemption measures.

• 21 Apr 2008
  Belgium: Unions organise ‘Equal pay day’ to highlight gender inequalities in labour market

  On International Women’s Day on 8 March 2008, political parties, trade unions, researchers and women’s groups seized the opportunity to highlight concerns about the living and working conditions of women in Belgium. As the gender wage gap remains, amounting to an average differential of 15%, the Belgian trade unions jointly organise an ‘equal pay day’ each year. This event has been running since 2006.

• 21 Apr 2008
  Bulgaria: Steel workers protest over wage arrears

  On 27 February 2008, 8,000 employees of Bulgaria's largest steel-maker Kremikovtzi launched daily protests over wage arrears. The employees’ protests came amidst rumours of negotiations over the possible sale of the troubled company. A national protest scheduled for 14 March was cancelled after the government and Kremikovtzi management reached an agreement enabling the company to continue operating.

• 21 Apr 2008
  Bulgaria: National action plan for employment targets labour market flexicurity

  At the end of January 2008, the Bulgarian cabinet adopted a national action plan for employment for 2008, drawn up with social partner input. The plan changes the policy focus from subsidising employment to vocational education and training. It aims to create more and better jobs through greater flexibility and security on the labour market – the approach known as flexicurity. The targets include an employment rate of 62%, an unemployment rate of below 7% and a new start for 30% of the newly registered unemployed.

• 21 Apr 2008
  Denmark: Go-ahead for merger between major employer organisations

  On 1 May 2008, a merger between the Confederation of Danish Industries and the Confederation of Danish Commercial, Transportation and Service Industries will change the balance of influence among the employer organisations. The plan to merge both confederations had been announced in January 2008. The new association will by far be the largest employer organisation in Denmark.

• 21 Apr 2008
  Spain: Constitutional Court recognises collective labour rights of illegal migrant workers

  In December 2007, the Spanish Constitutional Court ruled as unconstitutional the article of the Law on foreign persons, which prevents illegal migrant workers from exercising their right to unionisation and strike action. The court thus confirmed the unconstitutional nature of the law’s provisions, which were the result of a reform in 2000. The trade unions and civil rights associations welcomed the ruling, which comes at a time of rising unemployment among migrant workers.

• 21 Apr 2008
  Spain: Social partners reach agreement on corporate social responsibility

  Representatives of the government and social partners finally reached consensus on the agreement on corporate social responsibility (CSR) in December 2007. The agreement provides for the creation of a national council for the promotion and dissemination of good practice among companies and public administration bodies. It also seeks to increase the clarity of CSR practices and to enhance the management skills and capacities of companies in relation to CSR.

• 14 Apr 2008
  Spain: Unions accept working time plan in exchange for fewer job cuts at Nissan

  In January 2008, the car manufacturer Nissan announced its plans for redundancies affecting 450 permanent workers out of a total 4,500 production workers at the group’s Barcelona factory. The company’s management took the decision in light of a 7.3% reduction in planned production levels for 2008. However, a preliminary agreement concluded in February 2008 provides for more flexible working time schedules in exchange for a partial withdrawal of the redundancy measure.

• 14 Apr 2008
  EU Level: Tour operators seek return to 12-day work period for drivers

  The current dispute involving the International Road Transport Union, which represents employers, and the European Transport Workers’ Federation concerns the 2006 regulation on road transport. Employers are particularly critical of the legislation’s provisions in relation to the maximum number of working days. Currently set at six days, employers claim that the restrictive nature of the legislation is driving costs up in the industry.

• 14 Apr 2008
  Finland: Increase in share of locally bargained pay rises

  Finland’s pay increase structure has traditionally been dominated by general pay increases, while the proportion of locally bargained pay rises has been quite insignificant. However, in 2008 and 2009, this proportion could cover a quarter of workers in the private sector, providing for almost half of the overall pay increase agreed. Forerunners of locally bargained wages have included the financial services sector and technology industry.

• 14 Apr 2008
  Belgium: Social partners agree on information and consultation rights in SMEs

  Following five years of disagreement, the social partners in Belgium finally reached agreement on the implementation of the European Directive on the information and consultation of employees. The compromise on the introduction of information and consultation rights in small and medium-sized enterprises was reached in November 2007, statutory propositions for which were drafted in February 2008.

• 14 Apr 2008
  Estonia: Better provisions for non-EU migrant workers

  On 12 March 2008, the Estonian parliament accepted legislative changes with regard to the immigration and employment of migrant workers. The amendments simplify the procedures for employing migrant workers, while introducing stricter regulations on the minimum wage of these workers. Despite the changes, Estonia’s policies in relation to non-EU migrant workers are still regarded as relatively conservative.

• 07 Apr 2008
  Italy: Downturn in company-level bargaining in smaller companies

  A study by the National Council for Economic Affairs and Labour reports that the number of enterprises in which company-level bargaining takes place decreased substantially between 1998 and 2006. The decline mostly concerned smaller companies, while among large enterprises the overall situation appears more stable. Where present, bargaining continues to focus mainly on pay issues, while matters connected with organisational innovation receive little attention.

• 07 Apr 2008
  EU Level: Agreement on temporary agency work and working time directives shelved

  The Portuguese EU Presidency had planned to reach an agreement on a directive regulating temporary agency work and on a revised version of the working time directive at the December meeting of the Employment, Social Policy, Health and Consumer Affairs Council of Ministers. However, an agreement was not reached, mainly because of resistance on the part of the UK government. The French EU Presidency later in 2008 offers the next likely chance of a result.

• 07 Apr 2008
  EU Level: European Parliament keen to strengthen social dimension of EU employment guidelines

  On 8 February 2008, the European Parliament’s Committee on Employment and Social Affairs published a draft report in response to the European Commission’s proposal on the employment guidelines for 2008–2010, to be adopted by the Council of the European Union. The draft report proposes amendments designed to strengthen the social dimension of the employment guidelines. A final version of the report is due in May 2008

• 07 Apr 2008
  France: Proposed introduction of VAT on social security deferred

  In recent months, there has been controversy in France over the possible introduction of a so-called ‘social value added tax’ (VAT). Under such a scheme, VAT will be used to finance social protection, which is at present largely financed by contributions paid by employers and employees. After much discussion and reports on the issue, the introduction of a ‘social VAT’ now seems to have been abandoned.

• 07 Apr 2008
  Hungary: Government suspends subsidies for Hankook due to labour law abuses

  Following a series of trade union complaints and company fines imposed by the labour inspectorate, in November 2007 the government suspended the transfer of a training subsidy of HUF 143 million (€558,166) to the Korean tyre manufacturer Hankook. This is the first serious government sanction imposed under the law on ‘orderly labour relations’, in force since January 2006. This law ties subsidies and participation in public procurement tenders to good labour practices among employers.

• 07 Apr 2008
  Ireland: Constitutionality of wage-setting method in hotel industry challenged

  A High Court challenge by the Irish Hotels Federation and an individual hotelier to the hotel industry’s wage-setting system has been settled out of court – a move that avoided the question of the constitutionality of the entire sector-based minimum wages and conditions system. The settlement was reached after a procedural lapse brought the case to a halt. This is not the first time that the Labour Court has fallen short in terms of evidential standards.

• 07 Apr 2008
  Ireland: Deputy opposition leader calls for reform of social partnership system

  The deputy leader of Ireland’s main government opposition party, Fine Gael, has strongly criticised Ireland’s 20-year old social partnership system, arguing that it needs to be radically reformed if it is to remain relevant to the country’s needs today. However, a spokesperson for the government coalition Fianna Fáil party has strongly defended the social partnership process.

• 07 Apr 2008
  Ireland: Labour Court intervenes to avert strike by air traffic controllers

  The Labour Court succeeded in persuading air traffic controllers at Ireland’s three main airports – Dublin, Cork and Shannon – to call off a potentially crippling 24-hour strike planned for 27 February 2008; it also managed to suspend an official overtime ban that had already caused some flight delays at these airports. However, the court did not make any judgement on the conflicting claims regarding whether the aviation industry is facing a shortage of air traffic controllers.

• 07 Apr 2008
  Ireland: Dublin tram drivers get new deal on working time schedules

  A new deal on rostering for drivers on Dublin’s five-year old tram service, LUAS, has been agreed following a survey of the employees concerned. A steering committee involving employer and trade union representatives was set up to evaluate the outcomes of the survey and the five priority issues identified by the drivers. On this basis, negotiations took place between management and the trade union on how best to introduce changes to improve working conditions for drivers.

• 07 Apr 2008
  Belgium: Violence towards public transport workers triggers unofficial strikes

  Several unofficial strikes occurred in the public transport sector over the course of one month. The strikes were held to highlight the growing insecurity of transport workers for their safety at the workplace, although statistics show a decrease in aggressive or violent behaviour by passengers. However, according to trade unions, unofficial strikes would inevitably occur if the authorities and public transport services did not adopt new measures to improve workers’ safety.

• 07 Apr 2008
  Germany: Steel industry workers get highest pay increase in 15 years

  In February 2008, the bargaining parties of the northwestern German steel industry agreed on a new package of collective agreements. The provisions of the new agreements comprise a €200 one-off payment and a general pay increase of 5.2%, with effect from 1 March 2008. The parties also agreed to conclude a new framework agreement on pay scales by June 2009. Later in the month, the pilot agreement was also adopted for the eastern German steel industry.

• 07 Apr 2008
  Germany: New trade associations in motor repair sector pose threat to collective bargaining

  In March 2008, in the run-up to the 2008 collective bargaining round in the motor vehicle repair sector, the daily business newspaper ‘Handelsblatt’ reported on structural changes in the sector. In 2007, many regional trade associations annulled existing collective agreements, with some ceding collective bargaining authority to new employer organisations. The German Metalworkers’ Union fears that these changes will erode the association-level agreement in the sector.

• 07 Apr 2008
  Spain: Telework in Spain

  The number of workers engaged in telework in Spain has almost doubled in recent years, although it remains at a relatively low level overall. However, telework may now become more popular following the recent royal decree regulating this form of work in the public sector. This article looks at the extent of telework in Spain and explores the progress in implementing the EU framework agreement on telework, concluded by the European social partners in 2002.

• 07 Apr 2008
  Austria: Air traffic controllers protest over excessive overtime

  In February 2008, air traffic controllers employed by Austro Control refused to work ‘excessive’ overtime hours. The conflict caused considerable delays in flight activities; however, it came to an end on 19 February 2008 when a follow-up collective agreement was concluded. The agreement provides for an extra payment scheme for overtime work, along with a commitment to agree on a future working time regulation by May 2008.

• 01 Apr 2008
  Netherlands: Social partners divided on issue of employee rights in listed companies

  In February 2008, the Social and Economic Council (SER) issued a recommendation on the position of employees in listed companies, redefining the rights and responsibilities of company boards, and employer and employee representatives. The Minister of Finance rejected the recommendation, arguing that the SER is not authorised to advise on company policy. Earlier, the minister had issued a draft bill on the advisory powers of works councils regarding managers’ remuneration in listed companies.

• 01 Apr 2008
  Italy: Renewal of national collective agreement in banking

  In December 2007, the social partners of the banking sector at national level agreed on the renewal of the collective agreement after a year of bargaining. In addition to a significant wage increase, new elements have been introduced in the normative part, such as the extension of supplementary bargaining.Moreover, for the first time in the private sector, the agreement will apply the pay part for three years rather than two years.

• 01 Apr 2008
  Spain: Negotiations begin on increasing national minimum wage

  The two main trade union confederations in Spain have presented a joint proposal for progressively increasing the national minimum wage to 60% of the average wage by 2016. The newly re-elected Socialist Party is in favour of the plan. However, the Spanish Confederation of Employers’ Organisations and the main government opposition party have rejected the trade union recommendations, due to concerns over the possible effects on the slowing economy.

• 01 Apr 2008
  Luxembourg: Social plan agreed at Fulflex following redundancies

  Despite efforts to prevent redundancies, in early 2008 the manufacturing company Fulflex announced that it had no option but to lay off 18 of its remaining 26 workers at its Luxembourg site, after having lost its main client. Following marathon negotiations, the representative trade unions and management recently signed a social plan, providing for financial compensation, an acceptable notice period and dispensation from working this period for the redundant workers.

• 01 Apr 2008
  Luxembourg: Conflictual negotiations at Cactus supermarket chain

  In recent months, negotiations on the renewal of the collective agreement for the Luxembourg supermarket chain Cactus have been foundering. As a result, the matter has been referred to the National Conciliation Office. In an unprecedented move, the Luxembourg Confederation of Independent Trade Unions decided to inform the supermarket’s customers about the situation – an initiative which proved unpopular with both management and the Luxembourg Confederation of Christian Trade Unions.

• 01 Apr 2008
  Luxembourg: Public sector employees left out of new single status law

  The April 2006 meeting of the Tripartite Coordinating Committee first established the principle of a single status for workers. The plan to harmonise the status of blue and white-collar workers has now reached its final phase, with the Chamber of Deputies soon to vote on the single status law. In its final opinion, the Council of State regrets that the opportunity was not taken to bring the public sector into the reform procedure in order to reach a single status for all workers.

• 01 Apr 2008
  Latvia: Government adopts procedure for employing prisoners awaiting trial

  Labour shortages make it necessary to consider new ways of expanding the workforce. The issue of prisoners’ employment has been discussed in Latvia for many years. Several applicable laws regulate the paid employment of convicted persons. In June 2007, the government’s Cabinet of Ministers created the legal basis for employing those who are imprisoned while awaiting judgement, and set out the procedure for concluding employment contracts with such persons.

• 01 Apr 2008
  Slovenia: Union federation accuses employers of violating basic right to strike

  At a press conference on 7 February 2008, the Union of Free Trade Unions of Slovenia (ZSSS) informed the public that numerous companies had proposed a special agreement to trade unions: in exchange for an employee pay increase, unions would have to waive the right to strike for pay-related issues in the future. ZSSS is planning penal proceedings against the employers concerned, and has also informed relevant international organisations on the matter.

• 01 Apr 2008
  Spain: Social security law promotes longer working life

  A new law resulting from an agreement between the government and social partners provides incentives for extending working lives, along with other measures aiming to modernise the social security system. Recent figures published by the Economic and Social Council reveal an increase in both early retirement and partial retirement. The reform measures seek to counteract this trend by making extended working more attractive to older workers.

• 01 Apr 2008
  Hungary: Cross-border cooperation between Hungarian and Austrian railway unions

  Three railway trade unions from Hungary and Austria, as well as the works councils of three railway companies from the two countries, have concluded an agreement on guidelines for cooperation and negotiations after the recent takeover of MÁV Cargo by Rail Cargo Austria and Győr-Sopron-Ebenfurt Railway. The trade union cross-border cooperation aims to reduce wage differences, enhance employee benefits, strengthen relations and improve health and safety.