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October 2008

• 20 Oct 2008
  Lithuania: Social partners and political parties sign non-discrimination agreement

  On 29 September 2008, representatives of Lithuanian trade unions, employers and political parties signed a national agreement on the practical implementation of equal rights and opportunities for men and women. The aim of the agreement is to implement equal rights for men and women in all areas of social life.

• 20 Oct 2008
  Greece: INE/GSEE presents economic and employment outlook for 2008

  In September 2008, the Institute of Labour (INE) of the Greek General Confederation of Labour (GSEE) published its annual report on the Greek economy and employment. The report examines key developments in the economy, along with industrial relations, social policy and employment.

• 20 Oct 2008
  France: New rules for union representativeness and working time

  In July, the law on ‘renewing social democracy and working time reform’ was adopted and will come into force at the end of summer 2008. This text changes the rules of collective bargaining regarding two key aspects, namely validating agreements and trade union representativeness. But above all it has sparked off fierce controversy as it enables companies to renegotiate agreements and thereby challenge the 35-hour week – 10 years after it was introduced.

• 20 Oct 2008
  Spain: Survey findings reveal increased time pressure at work

  The Survey of the Active Population’s recent findings on industrial accidents and occupational illnesses in 2007 show an increase in the industrial accident rate related to the expansion of the construction sector and economic growth in recent years. The study also considers for the first time the effect of psychosocial risks at work. Following the survey’s findings, the social partners have voiced different concerns about the efficacy of the Spanish risk prevention system.

• 20 Oct 2008
  Latvia: Sugar refinery employees dissatisfied with closure deal

  Following the closure of Latvia’s two sugar refineries – in line with EU common sugar market reforms – the redundant employees were granted tax-free compensation. However, the former employees of the Liepāja Sugar Refinery are dissatisfied with the scope of the compensation, along with the payment procedure and loss of state social guarantees. As a result, the Trade Union Centre of Liepāja is arguing the case of the refinery’s former employees.

• 20 Oct 2008
  Malta: Public transport strike leads to widespread disruption

  A strike called by the Public Transport Federation led to widespread disruption in July 2008, blocking the main roads of Malta for several days and even resulting in a number of violent clashes. The conflict arose over the liberalisation of the granting of licences to hearse operators, generating concern among other transport operators of a more extensive liberalisation of the public transport system. The strike ended after the government reached agreement with hearse operators.

• 20 Oct 2008
  Slovakia: Employers oppose new collective agreement extension rules

  Recent amendments to the Act on collective bargaining have meant that employers’ consent no longer has to be necessarily obtained for the extension of multi-employer agreements. Employers are strongly opposed to the new rules and have rallied the support of opposition party members, who have asked the Constitutional Court to assess if the adopted changes comply with the country’s Constitution. Although the court has accepted their appeal, it has yet to make a decision on the matter.

• 20 Oct 2008
  Ireland: Union agrees to ‘stable income’ deal with mining company

  Boliden Tara Mines and Ireland’s largest trade union, the Services, Industrial, Professional and Technical Union, recently concluded a wide-ranging and innovative collective agreement. A unique feature of the agreement, which has been in place since July 2008, is the way it replaces the old bonus payment system with a ‘stable income’ structure. In addition, 23 new full-time posts are to be created.

• 20 Oct 2008
  Ireland: Social partners agree national deal on pay and industrial relations

  The government and social partners recently concluded a draft ‘transitional agreement’ under the overall framework of the country’s national social partnership agreement. If the accord is passed, it will allow for pay rises of 6% over 21 months in both the public and private sectors. The agreement has been largely supported by the social partners, although the private sector trade union Unite is advising its members to reject the agreement.

• 20 Oct 2008
  Italy: Trade union federation refuses to sign services sector collective agreement

  Following an 18-month delay, the national collective agreement for the retail and services sectors was renewed on 17 July 2008. The deal covers about one and a half million workers, including a large proportion of women, and will be valid until 31 December 2010. Among the innovative aspects of the agreement are its provisions on Sunday work and on apprenticeships. These provisions were strongly contested by one of the trade union confederations, which refused to sign the draft agreement.

• 15 Oct 2008
  Slovenia: Decline in employer organisations’ density rates

  Based on 2008 figures, all member companies of employer organisations in Slovenia employ 80%–90% of private sector employees. This provides a rough estimate of the combined density of employer organisations. If this density rate declines further, it could in a few years fall below the required density threshold of over 50% that is necessary for the extension of collective agreements. This can have serious consequences for collective agreements.

• 15 Oct 2008
  EU Level: Political agreement reached on working time and temporary work directives

  On 10 June 2008, the Employment, Social Policy, Health and Consumer Affairs Council reached political agreement on two controversial draft directives. The amended working time directive distinguishes between active and inactive ‘on-call’ time, and sets new rules for the opt-out from the standard maximum limit of 48 working hours a week. The temporary agency work directive is based on the principle of equal treatment as of day one for temporary agency workers.

• 14 Oct 2008
  Latvia: Clergy to benefit from centralised pay and social security system

  The Evangelical Lutheran Church of Latvia has launched a centralised pay and social security system for its clergy. The purpose of implementing the centralised system is to ensure ongoing spiritual care for all of the church’s congregations through the development of quality services and competitive salaries among members of the clergy. As a result, the new system will ensure fairer salaries among the clergy and will lead to better social dialogue.

• 14 Oct 2008
  Latvia: Social partners agree further increase in minimum wage

  Negotiations among the social partners in Latvia have been ongoing since the beginning of 2008 regarding the next minimum wage increase. In June, the social partners agreed that after 1 January 2009 the minimum monthly wage will be increased to €256, and the minimum hourly rate will rise to €1.54. This increment represents another step in the Ministry of Welfare’s plan to gradually increase the minimum wage until it reaches 50% of the national average.

• 14 Oct 2008
  Latvia: Employers to pay fewer sick leave days

  On 13 May 2008, the Republic of Latvia Cabinet of Ministers approved amendments to the law on maternity and sickness insurance, stipulating that, from 1 January 2009, employers shall pay sickness benefits to employees in the event of temporary work incapacity for a period not exceeding 10 days. The Employers’ Confederation of Latvia has been campaigning since 2007 to reduce the period of sick leave paid for by employers.

• 14 Oct 2008
  Czech Republic: Further job losses as part of ongoing restructuring at Czech Post

  Czech Post intended to close 179 of its branches throughout the Czech Republic and lay off another 2,500 employees in October 2008 as part of an ongoing restructuring process. The reason for this move is the management’s desire to streamline the company’s operations, centralise its activities and become more competitive in preparation for the company’s privatisation in 2009.

• 14 Oct 2008
  Denmark: Small increase in working days lost to strike action

  An annual report from Statistics Denmark shows a minor increase in days lost due to work stoppages compared with the previous year. Overall, the data confirm that a relatively modest number of working days were lost due to industrial conflict in 2007. The number of days lost in the public sector decreased considerably; however, a significant increase was recorded in the manufacturing sector. Strike activity in Denmark can be ranked with other EU Member States.

• 14 Oct 2008
  Norway: New obligation on employers to consult may avert company closures

  A new Norwegian Act relating to enterprise reorganisation came into force on 1 July 2008. The new legislation aims to give affected parties time to consider alternatives to closure in cases where owners want to close down companies. Employers must give notice of their intentions to the municipal authorities at least 30 days before a final decision is taken. This interval will give time to explore alternative options, including an employee takeover.

• 14 Oct 2008
  Ireland: AXA Insurance and SIPTU agree major pay and restructuring deal

  In the context of Ireland’s recent economic downturn, AXA Insurance and the country’s largest trade union, SIPTU, agreed a major pay and restructuring deal in July 2008. The new deal involves the restructuring of pay scales, a review of the performance-based pay system, a revamped profit-sharing scheme and 120 voluntary redundancies with an early retirement option for those aged over 50 years at the time of leaving the company.

• 14 Oct 2008
  Spain: Unemployment reaches highest level in 10 years

  The latest unemployment figures for Spain, recorded in the summer of 2008, confirm the dramatic downturn in the country’s economy. Rising by almost 25% in the last year to 2.5 million people, Spain’s unemployment levels have reached the highest in the last decade. The service and construction sectors were among the worst affected, with job losses rising by as much as 70% in the latter sector.

• 14 Oct 2008
  Italy: Renewal of national collective agreement in textiles and leather sector

  In July 2008, the social partners representing the almost 800,000 workers in the textiles and leather sector signed a document renewing the national collective agreement. The bargaining process took place in a relatively cooperative climate, although some differences of opinion emerged on issues relating not only to pay increases but also to holidays for immigrant workers, overtime and the introduction of a territorial level of collective bargaining.

• 14 Oct 2008
  Portugal: Main challenges to the Labour Code revision in new tripartite agreement

  Among the most controversial issues raised during the ongoing process of the reform of labour relations were those related to the legal system governing individual dismissals, working time adaptability, articulation between the law and collective agreements, and the expiry of collective agreements. The tripartite agreement for a new system of regulation of industrial relations, employment policy and social protection in Portugal, signed in June 2008, addressed those questions, presenting solutions that will influence the discussion and final parliamentary decision regarding the draft bill on the revision of the labour code, to take place in the second half of September 2008.

• 14 Oct 2008
  Greece: Committee recommends revising list of ‘arduous and unhealthy occupations’

  In early September 2008, an expert committee submitted to the Greek Minister of Employment and Social Protection a report in which it recommends a revision of the list of ‘arduous and unhealthy occupations’. Workers in these occupations are entitled to retire early. The Greek General Confederation of Labour (GSEE) opposes the proposed revision of the list.

• 14 Oct 2008
  Portugal: Study predicts future drop in public sector retirement pensions

  A study carried out by Banco de Portugal and published in summer 2008 evaluates the impact of a new retirement regime for public employees, introduced in 2006, on the future development of public sector pensions. The study finds that the changes will lead to a drop of between 5% and 18% in the value of public sector retirement pensions.

• 14 Oct 2008
  Greece: New maternity protection leave introduced

  May 2008 saw the publication of new legislation in Greece introducing six months of special maternity protection leave, in addition to normal maternity leave and the existing entitlement of working mothers to reduce their working hours. This initiative seeks to promote the reconciliation of work and family life.

• 14 Oct 2008
  Romania: ‘Token’ industrial action held at Romania’s largest bank

  On 13 August 2008, the Federation of Independent Trade Unions (FSI) launched ‘token’ industrial action at the Romanian Commercial Bank (BCR) in support of demands over unpaid overtime work, weekly rest periods and wage disparities, and concerns over potential collective redundancies. The protest was due to last three days but was suspended after two days when management invited the trade union to negotiate.

• 14 Oct 2008
  Romania: Arts workers protest over draft employment rules

  On 13 August 2008, trade unions affiliated to the BNS confederation representing actors and other employees of Romania’s public cultural establishments started staging weekly protests against proposed new rules governing their employment. The unions claim that the draft rules would breach labour law and collective agreements. On 2 September, the unions and the minister of culture and religious affairs agreed to hold further talks on the issue, during which the unions would suspend their protests and the government would make no further proposals.

• 14 Oct 2008
  Lithuania: Despite employer opposition, unions make headway in major retail chains

  Trade union organisation is developing in Lithuania’s hitherto unionised large-scale retail chains. A first commerce sector trade union was registered in May 2008, while at company level union organisations have been set up at three out of the four largest retailers. Collective bargaining is under way in two of the companies, Rimi and Iki.

• 14 Oct 2008
  Bulgaria: Record increase in minimum social security thresholds agreed for 2009

  In summer 2008, Bulgaria’s annual bargaining round over sectoral minimum social security thresholds (the minimum income for the purposes of calculating social security contributions) resulted in a highest-ever average increase of 26.6% for 2009 (up from 25.7% for 2008). As well as boosting the income of the social security system, the new thresholds will in many cases become sectoral minimum wages.

• 14 Oct 2008
  Bulgaria: Government to clamp down on breaches of employment rights

  In July 2008, the Bulgarian government announced a package of measures aimed at improving the enforcement of employment and health and safety law. The Labour Code will be amended to increase the fines on employers breaching the law and to introduce new inspection powers and employers’ obligations. The package also includes a campaign to encourage workers to report breaches of labour law at their workplaces.

• 14 Oct 2008
  France: Multi-industry agreement reached on stress at work

  The French social partners concluded a national multi-industry agreement on stress at work in early July 2008. It transposes the 2004 European framework agreement on work-related stress and adds to it in many areas. Against the background of several suicides of workers in the car industry, the government also initiated tripartite talks on stress at work. According to estimates, stress at work leads to 400,000 illnesses and almost 3.5 million days of sick leave a year.

• 07 Oct 2008
  Czech Republic: Employers press for adoption of euro in light of strong Czech currency

  The Czech currency has been appreciating in value against the euro and the US dollar over a long period. An important reason for the strengthening koruna is the improving performance of the Czech economy and the faith of investors. Nevertheless, the strong currency is beginning to threaten the business of Czech exporters. Employer organisations are urging the swift adoption of the euro in the Czech Republic to alleviate wage and other cost pressures.

• 07 Oct 2008
  Latvia: Government cuts cost of hiring migrant workers

  The Latvian government has passed a decision to reduce the costs related to the employment of foreign migrant workers as of July 2008. Companies have accepted the government decision as a good opportunity but so far have not rushed to hire foreign nationals. However, the general public did not welcome the government decision, as economic development in Latvia has now slowed down and many local employees are losing their jobs.

• 07 Oct 2008
  Denmark: Government secures right to take industrial action against foreign service providers

  As a consequence of the so-called Laval verdict issued by the European Court of Justice in December 2007, the Danish government set up a commission with the strong participation of the social partners to analyse the consequences of the verdict for the national rules concerning industrial action. In June 2008, the commission issued a final report in which it recommended an amendment to the Danish act on the posting of workers.

• 07 Oct 2008
  Lithuania: Social partners in favour of enhanced role for social dialogue

  According to Lithuanian legislation, drafts of legal acts submitted to the government of the Republic of Lithuania on relevant labour, social and economic issues should be pre-agreed with the Tripartite Council of the Republic of Lithuania. However, despite the Council reviews of draft legislation, the opinion of the national level social partners is often neglected at a later stage, when the drafts are being adopted by the national parliament. In order to improve the situation, the social partners have issued official letters to the President and the Speaker of the parliament.

• 07 Oct 2008
  Greece: Enterprise-level collective agreement signed at Hellenic Post

  The new 2008-2009 enterprise-level collective labour agreement for employees of Hellenic Post (ELTA) was signed in an atmosphere of confrontation, following an announcement by the Minister of Transport and Communications that the government intended to seek a strategic investor for the organisation’s subsidiary, ELTA Courier.

• 07 Oct 2008
  Greece: Unions oppose radical changes to public servants’ employment status

  In late July 2008, the Greek Parliament passed a law expected to usher in substantial changes to the labour relations of employees in state-run utilities and enterprises (DEKOs).

• 07 Oct 2008
  Portugal: Mixed reaction to new law on employment contracts in the public sector

  On 27 August 2008, the President of the Republic promulgated a Bill defining a new employment contract system in the public sector. The Bill, approved by the parliament on 18 July 2008, was the result of a previous agreement between the socialist government and the UGT-affiliated public sector trade unions. However, the approval of the Bill in the parliament, as well as its promulgation by the President of the Republic, has generated controversy. The resulting legislation, Law No.º 59/2008, published on 11 September 2008, will come into force in January 2009, and by then the regulations regarding public sector employment will be much closer to the ones that govern the private sector.

• 07 Oct 2008
  Poland: Polish shipyards flounder as EU demands return of state aid

  In the summer of 2008, trade unions in the shipbuilding sector staged protests in Warsaw and other cities on the Baltic coast in an effort to persuade the government and European Commission to resolve the issue of restructuring and privatisation of Polish shipyards. The main reason for the protests was the late June deadline for Poland to present a programme for privatising the country’s largest shipyards. The Commission extended the deadline to 12 September, on which date Polish government submitted the amended programme. The Commission, however, found the new documentation unsatisfactory, therefore the enterprises will have to return the public aid they received after Poland’s accession to the EU in 2004.

• 07 Oct 2008
  Sweden: Having children widens gender pay differences

  A new report published by the Swedish Confederation of Professional Associations concludes that women’s and men’s wages are affected differently as a consequence of starting a family. Men in a personal relationship typically have a better wage development than single men, whereas the opposite is true for women. The social partners take different views on the causes of wage inequalities and on the possible solutions.

• 07 Oct 2008
  United Kingdom: Access to skills, advice and trade unions for government contract employees

  In July 2008, the UK government signed a joint statement with trade unions, business and voluntary organisations providing that employees of government contractors will have access to basic skills training, advice about their rights at work and information on trade unions. The aim of the initiative is to improve the quality of services delivered under government contracts by raising contractors’ skills.

• 07 Oct 2008
  Sweden: Low unemployment leads to reduced insurance fees

  Due to lower unemployment levels in Sweden since 2006, the majority of members of unemployment insurance funds have benefited from reduced membership fees since July 2008. Nevertheless, trade unions are demanding that the right to tax deduction on fees be reintroduced. However, the employer side claims that, due to the new policies regarding unemployment insurance and lower income tax, employees are receiving a higher net income.

• 07 Oct 2008
  Luxembourg: New employee chamber brings workers together in single status

  In November 2008, some 400,000 employees and pensioners whose work is or was in Luxembourg, regardless of their place of residence, will be invited to take part in the election of representatives for a new professional chamber, the ‘Chamber of Employees’. The latter will replace the two existing chambers, as Luxembourg has adopted a single status for blue and white-collar workers. The new organisation will commence operations in January 2009.

• 07 Oct 2008
  France: Tripartite conference issues proposals for occupational risk prevention

  Since April 2008, the French government has organised a series of tripartite conferences on working conditions, following on from several studies. The meetings should lead to reforms that improve working conditions and the occupational health system. Several reports highlight the shortcomings of the latter. Already, some ideas and proposals have emerged from the discussions, such as the creation of a steering committee on working conditions.

• 07 Oct 2008
  France: GDF Suez merger achieved amidst controversy

  In July 2008, the merger between GDF and Suez was complete, leading to the creation of the European energy, water and environment giant GDF Suez. The French state remains the biggest single shareholder in the new corporation. The merger generated considerable controversy, as the European Commission and trade unions were strongly opposed to the plan. GDF Suez management undertook not to make any employees redundant and even talked of creating jobs.

• 07 Oct 2008
  Germany: Employment prospects positive despite slow economy

  According to the latest labour market statistics, employment prospects have not deteriorated in Germany, although early signs of an economic downturn have emerged since the spring of 2008. Nonetheless, policymakers and social partners continue to discuss how to avert the looming economic slump. While employer organisations call for contributions to the unemployment insurance scheme to be lowered, trade unions are demanding greater public investments.

• 07 Oct 2008
  Czech Republic: One million Czech workers protest against government reforms

  The ongoing tensions between the trade unions and government – which already lasted one year – escalated into one of the biggest strikes in Czech history. In June 2008, more than one million workers took part in a strike organised by the country’s largest trade union organisation. The strike resulted in widespread chaos, especially in health and transport services. However, there is no sign of the government abandoning its reforms.

• 07 Oct 2008
  Finland: Over a third of employees receive bonus pay in 2007

  According to the wage statistics of the Confederation of Finnish Industries (EK), result and profit-based bonuses were paid to more than a third of all employees in EK’s member companies in 2007. However, the prevalence of bonus pay varied significantly between occupational groups and economic sectors, with the highest proportion of workers in receipt of bonus pay being found in manufacturing. The study also examined bonus pay amounts and average earnings in Finland.

• 07 Oct 2008
  Austria: Government resigns over rejection of national health service reform

  In July 2008, a draft reform of Austria’s national health system was cancelled after the social democratic-conservative government coalition had failed to agree on the monitoring rights of a planned social insurance holding agency. In response, the social partners expressed their indignation, as they had jointly drawn up parts of the draft reform to secure the existence of the deficitary national health system in the long term. After this failure, the government resigned on 7 July 2008.