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November 2008

• 24 Nov 2008
  EU Level: Social partners give advice on European Works Council ‘recast’ directive

  In late August 2008, the European social partners submitted a joint advice on the European Works Council ‘recast’ directive to the French Minister for Labour, Social Affairs and Solidarity. They accepted the Commission’s proposal as a basis for the revision of the directive and included an agreed list of possible changes to the proposal. Meanwhile, the social partners and the parliament’s rapporteur support a fast revision procedure based on this common position.

• 24 Nov 2008
  Czech Republic: Unions mobilise against planned closure of Siemens plant

  Siemens Kolejová vozidla, the leading manufacturer of rail vehicles in the Czech Republic and a subsidiary of the German-owned Siemens Transportation Systems, has announced the planned closure of its site in Prague with over 1,000 jobs threatened. Siemens plans to sell the plant by September 2009. The company’s decision is due to low Czech customer demand, global economic changes and the company’s global strategy, which envisages 17,000 redundancies.

• 24 Nov 2008
  Italy: Electrolux agrees restructuring plan for Italy

  Following seven months of negotiations, on 20 September 2008, the trade unions and management of the electrical appliances company Electrolux reached an agreement regarding the production activities of the multinational in Italy. The agreement outlines the future of the plants at Scandicci in the province of Florence and Susegana in the province of Treviso. Furthermore, it sets out the investments to be made over the next three years.

• 24 Nov 2008
  Sweden: Widescale redundancies in labour market in recent months

  Over 8,000 people in Sweden received redundancy notices in September 2008, exacerbating the country’s rising unemployment rates. While the government has already finalised the Budget Bill for 2009, the trade union confederations point to the need for additional efforts by the government and the Public Employment Service. However, the Minister for Employment has assured them that the government will try to aid those who have been made reundant.

• 24 Nov 2008
  Finland: Dismissal of journalist sparks debate over sexual orientation bias

  The dismissal of a recently appointed newspaper editor-in-chief, allegedly over her lesbian relationship, has sparked a heated debate about discrimination on the basis of sexual orientation in the Finnish workplace. Although surveys have found that discrimination on such grounds is not uncommon, it seldom arises as a problem in trade union consultations.

• 24 Nov 2008
  Belgium: Belgian textile industry in crisis

  In September 2008, five Belgian textile manufacturers announced significant restructuring measures, which are set to result in hundreds of job losses for each company. The Belgian Federation for the Textile Industry, Wood and Furniture is predicting some 2,000 job losses in the industry in 2008. The crisis is being attributed to stronger competition from industries in Asia and eastern Europe, the increasing cost of raw materials and employment, and a reduced demand for carpets in western Europe.

• 24 Nov 2008
  United Kingdom: TUC survey examines attitudes and aspirations of workers

  In September 2008, the Trades Union Congress published the findings of a survey examining the attitudes of UK workers towards their jobs, and what they want employers, trade unions and the government to do to improve them. While the research finds that most workers are generally satisfied with their jobs, it also shows that many people report problems relating to pay, workloads, working hours, training and career progression.

• 24 Nov 2008
  Germany: Survey examines extent of relocation and outsourcing

  The 2007 works council survey conducted by the Institute of Economic and Social Research examined the incidence of relocations and outsourcing in establishments with 20 or more employees and a works council. The results show that, between 2005 and 2007, relocations were planned in almost 8% of establishments with works councils, while outsourcing took place in a further 11.5% of such establishments. The results also give an insight into other factors relating to relocation and outsourcing, such as the role of works councils and the employment impact of such measures.

• 24 Nov 2008
  Austria: Controversy over Chamber of Labour levy

  In September 2008, the populist Alliance for the Future of Austria (BZÖ) launched a parliamentary initiative aiming to reduce the statutory Chamber of Labour (AK) levy, which is the only financial basis of the AK. When a conservative-populist alliance and thus a majority of deputies in parliament showed support for this initiative, the AK urgently warned of weakening the representational power of organised labour. In the end, the BZÖ plans were rejected in parliament.

• 24 Nov 2008
  Austria: Talks in trendsetting metal industry deadlocked

  After three unsuccessful negotiation rounds in the trendsetting metal and metalworking industry, the 2008 collective bargaining process seems to be deadlocked as of the end of October. Against the background of high inflation, good economic performance in recent years but a poor outlook for the near future in the wake of the current financial crisis, the core point of controversy has proved to be the relationship between ‘standard’ wage increases and a flexible wage element.

• 24 Nov 2008
  United Kingdom: TUC strengthens links with Polish unions

  In September 2008, the UK Trades Union Congress signed a protocol with two Polish trade unions that commits the TUC to work more closely with and support Polish workers in the UK. The protocol also commits the signatory parties to encourage the nationals of both countries to join a trade union in the country in which they are working. This move highlights developing cross-national trade union cooperation in the context of opening European labour markets.

• 24 Nov 2008
  Latvia: Employers oppose stringent language requirements

  Since the spring of 2008, the Employer’s Confederation of Latvia has been fighting attempts by the government to increase liability for violations of the use of the national language by means of administrative legislation. The amendments to the Administrative Offences Code proposed by the Ministry of Justice extend restrictions for the use of foreign languages in the public domain and the range of persons for whom higher language proficiency requirements have been set.

• 24 Nov 2008
  Germany: Strikes at Vacuumschmelze trigger change in relations with employer organisation

  In the summer of 2008, news spread that the company Vacuumschmelze (VAC) had changed its membership status with the regional employer organisation, Hessenmetall, in the state of Hesse. As a result, VAC was no longer bound by future collective agreements signed by Hessenmetall. After several rounds of negotiations with the German Metalworkers’ Union and strike action at VAC sanctioned by the Labour Court, the company decided to renew its full membership of Hessenmetall.

• 24 Nov 2008
  Estonia: Draft Equal Treatment Act rejected in parliament

  In May 2008, the Estonian parliament rejected the Equal Treatment Act, which aimed to implement the respective EU directives and establish protection against discrimination on the grounds of ethnicity, race, colour, religious beliefs, age, disability or sexual orientation. The draft act was rejected due to the government’s plan to scrap the position of gender equality commissioner, the act’s narrow definition of discrimination and disregard for the views of different interest groups.

• 24 Nov 2008
  United Kingdom: Employer survey highlights labour market concerns

  The Confederation of British Industry’s latest employment trends survey, published in September 2008, provides data on employer views and policies on a range of key industrial relations topics, including domestic and EU legislation. The survey reveals positive employer responses to developments such as the right to request flexible working and postponed retirement, but employers continue to express concern at the cumulative impact of employment regulation.

• 24 Nov 2008
  Netherlands: Social partners agree dismissal law among other issues in annual talks

  The Dutch cabinet and social partners concluded the traditional autumn consultation in October 2008. Agreement was reached on moderate pay demands, lowering unemployment premiums, and maintaining the spending power of minimum-wage earners and people suffering from chronic illness. Even the social partners’ interim agreement on dismissal law was accepted. Agreements were also reached concerning vulnerable people in the labour market, and on training.

• 24 Nov 2008
  Netherlands: Increasing numbers employed through fraudulent temporary work agencies

  The number of employees working through ‘mala fide’ or fraudulent temporary work agencies has risen over a two-year period: from 80,000 workers in 2006 to about 150,000 people in 2008. More than half of temporary agency workers from eastern Europe who work in the Netherlands do so through mala fide work agencies. Investigations into these agencies, carried out by a supervisory body and the Labour Inspectorate, have led so far to fines totalling €2.6 million.

• 24 Nov 2008
  Italy: Fiat workers call for international framework agreement

  During the signing of the Fiat Group’s supplementary agreement, the Italian metalworking trade unions asked the Group to start discussions on a possible future international framework agreement (IFA), which would help to relaunch this type of bargaining in Italy. To date, three groups – Indesit/Merloni, Eni Spa and Impregilo Spa – have signed IFAs in Italy. Such agreements are becoming increasingly relevant in a global labour market.

• 20 Nov 2008
  Czech Republic: First efforts at conciliation following month of civil unrest

  The Czech-Moravian Confederation of Trade Unions, the largest trade union organisation in the Czech Republic, announced a ‘month of civil unrest’ starting on 21 May 2008. Trade unionists held a series of demonstrations outside government buildings, highlighting the contentious issues of pensions, public health, education, salaries and inflation. The government is resolute on maintaining its reform plans but has started negotiations with teachers’ trade unions.

• 14 Nov 2008
  Hungary: Tensions continue over restructuring in public sector

  This article follows on from the recently published study, ‘Industrial relations in the public sector – Hungary’, by reviewing the sector’s major changes since 2005. These include the recent agreement between the government and the trade unions on wage adjustments, changes in wages and employment, as well as the attempts to implement a new performance evaluation system in the public sector. Reforms were considered necessary due to a substantial state budget deficit.

• 14 Nov 2008
  EU Level: Proposals to improve maternity rights and childcare

  In October 2008, the European Commission published its proposals for improved paid maternity leave for Europe’s working women. In the same month, it also published a report on childcare facilities in the EU. While the social partners have generally welcomed the new proposals, they remain divided about certain aspects, such as extending maternity leave. Regarding childcare, the Commission concludes that childcare services are failing to respond to parents’ needs.

• 14 Nov 2008
  Czech Republic: Glass industry crisis continues

  The traditional manufacture of glass and porcelain in the Czech Republic is under serious threat, with companies belonging to the Bohemia Crystalex Trading group recently closing operations. As a result, glassworks in Světlá nad Sázavou, located on the frontier between Bohemia and Moravia, and in Poděbrady in central Bohemia have been closed down and production has been halted. About 2,000 employees did not receive their wages in September 2008.

• 14 Nov 2008
  Sweden: Anonymous job applications may help combat discrimination

  Several recent studies point to the conclusion that employers have very specific demands when it comes to hiring new staff. They prefer to recruit men under the age of 30 years, with no children and no record of unemployment or a long period of sick leave. Recruitment managers look upon people who do not possess these qualities more negatively. A plausible solution to combating discrimination in recruitment procedures could be anonymous job applications.

• 14 Nov 2008
  Spain: Social dialogue agenda seeks to address economic crisis

  The government has announced a package of measures to help revitalise the Spanish economy. Although the social partners have welcomed some of the proposals, such as efforts to increase companies’ liquidity, they are still divided over certain issues – including the provisions for protection against dismissal. Given the current economic crisis, the employers are calling for more radical measures, such as increased flexibility and less costly dismissal provisions.

• 14 Nov 2008
  Sweden: Simpler domestic services subsidy could boost gender equality

  The number of people who applied for tax deduction on domestic services, a measure introduced in July 2007, was lower than expected. As a result, the government wants to simplify and expand the possibility to deduct tax for domestic services. Meanwhile, the Swedish Confederation of Professional Employees is proposing that working parents with small children should receive such services at subsidised prices, claiming that this will increase gender equality in society.

• 14 Nov 2008
  Poland: Legislative amendments aim to boost employment

  In mid June 2008, the Polish Ministry of Labour and Social Policy unveiled a draft set of amendments to the legislative Act on the promotion of employment and labour market institutions. The main objective of the proposed changes is to enhance measures designed to reintegrate unemployed persons into the labour market. Funding for training is an important provision, while stricter eligibility criteria will apply regarding unemployment benefit.

• 14 Nov 2008
  Hungary: Trade unions reject new economic consultative forum

  In July 2008, the government established the Economic Conciliation Forum, envisaged as a consultative body dedicated to improving the competitiveness of the Hungarian economy. While many of the actors in the business community welcomed its establishment, trade unions rejected it from the outset, claiming that their representation in the body was unsatisfactory and that it challenged the function of the National Interest Reconciliation Council.

• 14 Nov 2008
  Czech Republic: Difficult round of collective bargaining begins at Czech Railways

  Official collective bargaining at Czech Railways has commenced, with the employer presenting a draft company-level collective agreement for 2009 to trade union representatives on 2 September 2008. Czech Railways is currently undertaking a complicated process of trying to find economies in material and wage costs. This strategy is reflected in the treatment of certain employee benefits in the draft collective agreement; therefore, a difficult round of bargaining can be expected.

• 14 Nov 2008
  Estonia: New collective agreement for workers at Tallink shipping company

  In September 2008, Estonia’s largest shipping company, Tallink, and the Estonian Seamen’s Independent Union signed a three-year wage agreement after intense rounds of negotiations, which involved a warning strike and a conciliation procedure with the Public Conciliator. The trade union demanded equal wage levels for workers carrying out the same jobs on the company’s different ships. The agreement introduces wage increases of 25%, 9% and 6% respectively over the next three-year period.

• 14 Nov 2008
  Spain: Sharp downturn in construction sector

  The construction sector, one of the engines of economic growth in Spain over the last decade, is now faced with company closures and rising unemployment. As a result, the government has launched an action plan to reactivate the sector and minimise the impact of the adjustment on employment. The trade unions argue that allowing construction workers with at least 10 years’ seniority to retire at 60 years of age would ease the restructuring process.

• 14 Nov 2008
  Czech Republic: ‘Air marshals’ demand higher pay

  In October 2008, Czech ‘air marshals’, who are among the best-trained police officers in the Czech Republic, formulated their pay demands. These agents are members of an elite undercover police unit which flies on aircraft, and their task is to neutralise any terrorist without putting passengers at risk. Given their high qualifications and the greater risk involved in their profession, they are demanding the highest extra pay component that police regulations permit.

• 04 Nov 2008
  Denmark: New report provides comprehensive data on relocation in Denmark

  In June 2008 the Danish Ministry of Economic and Business Affairs published a report on outward relocation by Danish companies. It is the first report to give a broader and comprehensive picture of the nature and extent of relocation and provides much needed evidence for debates about feared negative employment effects of globalisation. In general, net employment effects are only modestly negative and do not lead to long term unemployment. However, the evidence does also suggest that unskilled workers are in a relatively disadvantageous position.

• 04 Nov 2008
  EU Level: International framework agreement on labour rights signed at Danske Bank

  In September 2008, UNI global union signed an international framework agreement on fundamental labour rights with the Danish-based finance multinational Danske Bank. The agreement was negotiated by UNI Finance with the help of six trade unions in the Nordic countries and Ireland. It recognises the competitive benefit for the company of good relations with trade unions and guarantees labour rights for workers worldwide.

• 04 Nov 2008
  Malta: Views of employer organisations on future skills requirements

  In September 2008, representatives from the Malta Employers’ Association, the Malta Chamber of Commerce and Enterprise, and the Malta Federation of Industry participated in a conference on ‘Skills for the future’, organised by the National Commission for Higher Education. The participants emphasised the need for a more dynamic, ongoing dialogue between the various sectors of economic activity on the one hand and the educational providers on the other.

• 04 Nov 2008
  Malta: General Workers’ Union calls for action on irregular migrant work

  The General Workers’ Union has formulated a policy document outlining its stance on the controversial issue of migrant workers in Malta. Framing the situation within Malta’s European context, the union outlines a number of difficulties relating to this issue. The recommendations of the European Trade Union Confederation and the Pan-European Regional Council of trade unions serve as a platform for the proactive approach advocated in the document.

• 04 Nov 2008
  Sweden: Lower taxes for 2009 in bid to boost employment

  The Swedish government has presented reforms amounting to SEK 32 billion (€3.3 billion) in the Budget Bill for 2009. The changes aim to increase employment, reduce the effects of the downward economic trend and improve social welfare. Unemployment benefit funds will be reformed and the bill takes a further step in relation to the in-work tax credit (jobbskatteavdrag). The main actors involved in labour market policy have given a mixed reaction to the proposals.

• 04 Nov 2008
  Belgium: Strike results in further chaos at Brussels airport

  Flight traffic was seriously disrupted at Brussels Airport in August 2008 due to a two-day strike staged by baggage handlers. Although an agreement was reached between management and trade unions at one of the handling companies, other baggage handlers rejected the proposals. The conflict has once again fuelled a debate between right and left-wing political parties on the need for more stringent regulation of the right to strike in public transport services.

• 04 Nov 2008
  Ireland: Union develops new organising strategy for non-unionised companies

  The Communication Workers Union (CWU) has developed a new strategy for organising workers in non-unionised companies. The strategy follows similar initiatives by other trade unions to increase their membership and will include measures targeting the suppliers of larger companies. CWU has also concluded a collective agreement with two non-unionised companies, as well as stepping up its efforts to increase trade union recognition in another Irish company.

• 04 Nov 2008
  France: Regularisation of undocumented immigrant workers

  During 2008, undocumented immigrant workers have been engaging in lobbying, demonstrations and strikes to support their efforts to have their situation in France regularised. The movement seems to be having some success, and by the end of August, almost two thirds of applicants in the Paris region had achieved regularisation. However, cases of discrimination are not uncommon, and fears arise that many undocumented workers are not being represented.