February 2009
- 23 Feb 2009
Poland: Sharp increase in strike action in 2008A sharp increase in employee protests was recorded in Poland in 2008. Only a few years ago, it seemed that Poland might be able to establish an industrial relations system where strikes were comparatively rare. However, recent years have brought a turnaround of the previous tendency towards non-confrontational dispute resolution. A growing economy and declining unemployment were two key factors leading to increased trade union demands.
- 23 Feb 2009
Norway: Parliament set to approve EU services directiveIn December 2008, the Norwegian government placed a royal proposal before parliament recommending the incorporation of the European Union services directive into the European Economic Area Agreement, thus making it applicable in Norway. The directive has been controversial, not least in matters relating to employment and ‘social dumping’, and the proposal was put forward despite dissent from ministers of two of the three governing parties.
- 23 Feb 2009
Ireland: Dell to transfer 1,900 jobs to PolandThe transfer of 1,900 manufacturing jobs from the Dell computer plant in the midwestern city of Limerick in Ireland, to an alternative manufacturing site in Poland, came as a shock to an Irish economy already suffering its third quarter of recession. At least another 1,500 jobs are likely to be lost in suppliers to Dell and in local services. The European Commission has contacted the Irish government about applying to the European Globalisation Adjustment Fund.
- 23 Feb 2009
Italy: New bargaining system agreed for craftworkersAn agreement was reached on 21 November 2008 aiming to modify the collective bargaining system in the artisan or craftwork industry in Italy. The agreement strengthens regional bargaining and intensifies the role of the bilateral bodies. National collective agreements will be reduced from 17 to nine in number. Two of the main trade unions have already signed the agreement, while the third was expected to sign it in the near future.
- 23 Feb 2009
Austria: Childcare benefit scheme to be amended againThe newly formed government plans to modify the current childcare benefit scheme again, by introducing an income-related option. This alternative to the current flat-rate scheme is devised to encourage highly-skilled women earning a good wage to resume work earlier after parental leave and to attract a higher proportion of men to stay at home with their children. The social partners have welcomed the government initiative.
- 23 Feb 2009
Hungary: Controversy over privatisation of regional hospitalThe management rights of the main hospital in Eger, the capital of Heves county in northern Hungary, have been transferred to a private company. This move sparked fierce resistance from the opposition-led local municipality, trade unions and local citizens’ groups alike. Doctors and paramedics staged protests. Even the legality of the transfer was questioned by regional authorities; nevertheless, eventually the new operator was permitted to take over the hospital.
- 23 Feb 2009
Bulgaria: More action needed to reach targets of lifelong learning strategyThe ‘Awareness raising of lifelong learning in Bulgaria’ project was concluded at a December 2008 conference organised by the Ministry of Education and Science, the National Agency for Vocational Education and Training, and the social partners. The Minister of Labour and Social Policy presented the project results, as well as the priorities and targets of the National strategy for lifelong learning 2008–2013.
- 23 Feb 2009
Hungary: Controversy over government plan to tackle economic crisisThe Hungarian government has prepared a package of measures to address the effects of the deepening global economic crisis on the labour market, focusing particularly on help for export-oriented manufacturing plants and small and medium-sized enterprises in order to preserve jobs. The package was debated by labour market experts and social partners in the National Interest Reconciliation Council and received a mixed reaction.
- 23 Feb 2009
Cyprus: Renewed efforts to combat undeclared and illegal workDiscussions on the growth of undeclared and illegal work were renewed at the Ministry of Labour and Social Insurance between June and October 2008. The main issues for discussion were the urgent need to strengthen the country’s inspection procedures and to reform the existing legal framework. The latter would include tougher sanctions penalising employers that illegally employ foreign workers, along with provisions for excluding employers found guilty of such an offence from public support and contracts.
- 23 Feb 2009
Denmark: Tripartite agreement on reducing sickness absenceIn September 2008, the Danish government concluded an agreement with the Danish Confederation of Trade Unions and the Confederation of Danish Employers on reducing sickness absence in companies. The agreement aims to get 4,000 persons back to work and thereby help to ease the current significant pressure on the labour market. The initiative is expected to cost almost €23 million; however, up to €5 billion is currently spent each year on sick pay.
- 23 Feb 2009
Portugal: Trade unions reject 2.9% pay increase in public sectorIn December 2008, the wage bargaining round in the public sector came to an end without any agreement being reached between the government and trade unions. The government approved a 2.9% pay rise to be applied from 1 January 2009, on the basis that this improves employees’ situation at a time of low inflation. However, the trade unions consider that the wage increase is not sufficient to compensate for the decline in purchasing power of public sector employees.
- 23 Feb 2009
Italy: Social partners propose plan to revitalise textiles sectorOn 21 November 2008, the trade unions and employer organisation in the textiles and clothing sector signed a joint document designed to revitalise the industry. The document was to be presented to the Italian government and the European Commission. It outlines a range of initiatives and interventions aiming to boost consumption and reinforce the production capacity of companies operating in the sector.
- 23 Feb 2009
EU Level: European Parliament and Council adopt recast works council directiveWith its adoption by the European Parliament and Council of Ministers in December 2008, the recast directive on European Works Councils may become effective in 2009. The adopted text is based on an informal agreement reached on 4 December. In addition to changes proposed by the social partners, the Parliament agreed on amendments to the definition of ‘transnational’ and the obligation of Member States to define ‘adequate, proportionate and dissuasive’ sanctions.
- 20 Feb 2009
EU Countries: Wage flexibilityIncreased competition has created pressure for flexibility or variation concerning wages. This can involve the localisation of basic pay-setting, which may or may not be governed by multi-employer bargaining arrangements, and the development of new variable payments systems (VPS) linked to measures of performance. This study reviews both sets of developments, focusing on two economic sectors – manufacturing and banking. It finds only limited use of ‘downwards’ wage flexibility but evidence of an increasing decentralisation of wage-setting through supplementary bargaining and the introduction of VPS which, especially in banking, are often at the employer’s discretion. Both developments threaten to erode the traditional regulatory function of multi-employer bargaining in particular.
- 13 Feb 2009
Bulgaria: Consensus among social partners on anti-crisis measuresBulgaria’s government presented a package of proposed anti-crisis measures at a meeting held in December 2008 with representatives of the social partners, public organisations and the media. The social partners expressed similar positions with regard to labour market measures. In particular, they agreed on the importance of concentrating resources and efforts mainly on unemployment prevention and preserving existing employment, rather than on compensatory measures.
- 13 Feb 2009
Malta: University lecturers’ agreement signed after lengthy negotiationsA new collective agreement for lecturers at the University of Malta was signed in January 2009. Consensus was reached following lengthy negotiations due to disagreements over a number of issues, including the salary package for lecturers. The issues were eventually resolved, notwithstanding strike action and considerable tensions. The agreement forms part of a general effort to reform the university’s practices and improve its operations.
- 13 Feb 2009
Poland: Unions oppose reform of early retirement schemeIn November 2008, the Polish parliament passed legislation reforming the retirement scheme whereby certain occupational groups are entitled to retire early. The changes mean that only about 250,000 workers will be eligible for early retirement, around a quarter of the current figure. Trade unions strongly oppose the reduction in the scope of the early retirement scheme and have organised various protests.
- 13 Feb 2009
Poland: Doctors protest against reduced financing of hospital servicesThe All-Poland Trade Union of Physicians has embarked on a protest against reduced financing for medical services provided in hospitals in 2009. The protest began in early January with an information campaign staged in hospitals in the densely populated region of Silesia in southwest Poland. Moreover, the union wants to initiate anti-monopoly proceedings against the National Health Fund and an inspection of its method of valuating the health services it reimburses.
- 13 Feb 2009
Sweden: Stricter rules for sick leave introducedGovernment changes to the national health insurance system last year first became noticeable for people on sick leave in January 2009. The social partners have different views on the new rules, highlighting both opportunities and risks. Trade unions fear a lack of awareness of the changes and that people may be adversely affected during difficult economic times. Employer organisations believe that the changes will allow people to maintain their working capacity and support themselves.
- 13 Feb 2009
Sweden: Swedish Laval Inquiry proposals may prove difficult to implementThe Swedish Laval Inquiry Committee presented the results of its assessment in December 2008. In April 2008, the committee had been asked to present proposals for changes to Swedish legislation following the Laval judgment by the European Court of Justice. The outcome of the committee’s inquiry has met with a mixed response, with all of the social partners agreeing that its mission to harmonise the Swedish labour market model and EU law will be more difficult to implement in practice.
- 13 Feb 2009
Germany: New pay agreement signed in metalworking industryIn November 2008, collective bargaining parties in Baden-Württemberg’s metalworking industry signed a new pay agreement. The settlement, adopted as a ‘pilot agreement’ in the other bargaining regions, provides for a one-off payment of €510, a general pay increase of 2.1% on 1 February 2009 and a second increase of 2.1% on 1 May. The second pay increase can be delayed by way of voluntary works agreement for up to seven months. A further one-off payment of €122 is due in September.
- 13 Feb 2009
United Kingdom: Employment discrimination cases bolster gay rightsTwo court rulings in December 2008 have important implications for the application of legislative provisions in the United Kingdom concerning discrimination in employment that are based on EU directives. One case concerned a claim of discrimination on grounds of religion or belief. The other involved the regulations preventing discrimination on grounds of sexual orientation. The outcomes of both cases have been seen as strengthening gay rights in the UK.
- 13 Feb 2009
Italy: Second phase of public sector reorganisation launchedItaly’s Minister for Public Administration and Innovation presented a second reform plan for the public sector in September 2008, which aims to identify, enhance and disseminate best practices in the sector. Meanwhile, the Council of Ministers issued the budget law for the year 2009, providing for the payment of pay increments even in the absence of a collective agreement. The trade unions have strongly criticised the government’s unilateral action and called for mobilisation.
- 13 Feb 2009
EU Level: Landmark ECJ ruling on discriminatory recruitment policiesThe European Court of Justice (ECJ) gave its judgement on the case of the Belgian Centre for Equal Opportunities and Opposition to Racism versus the company Feryn on 10 July 2008. The court ruled that an employer could violate discrimination law even where there was no identifiable victim. The case is significant as it establishes that public pronouncements which might deter individuals from applying for jobs can be challenged where they demonstrate a desire not to appoint someone on discriminatory grounds.
- 12 Feb 2009
EU Countries: Contribution of collective bargaining to continuing vocational trainingThe EU Member States take a variety of approaches to continuing vocational training (CVT), and the social partners are involved in CVT governance and implementation to varying degrees. The European ‘Copenhagen Process’ aims to increase participation in adult education by enhancing cooperation in vocational education and training. National-level social dialogue has played a prominent role in most countries, by setting the policy agenda. Sectoral and company-level bargaining on CVT are also important, with the scope and extent depending on the national context.
- 12 Feb 2009
Sweden: Sweden: Collective bargaining and continuous vocational trainingSweden does not have a coordinated national system for CVT. Even though social partners in some sectors regulate CVT by collective bargaining at sectoral level, this issue is traditionally not a top priority of the collective bargaining agenda.Further, this report has shown that there has been limited development on the area of CVT since 2002. The most essential change in this field has been the 2004 years inclusion of blue-collar workers to the adjustment agreements regime. Making it possible for many blue-collar workers to benefit from CVT in instances of redundancies.
- 12 Feb 2009
United Kingdom: UK: Collective bargaining and continuous vocational trainingCVT has increasingly become a focus of government policy and intervention since the election of a Labour government in 1997. In response to a skills shortages, major reviews of skills and training have taken place over recent years and increases in funding secured. Current policy is targeted at improving the skills of low-skilled workers and younger workers. Unusually, this is an area where there is concerted effort to encourage the social partners to work together with government to facilitate policy making. However, collective bargaining over CVT is somewhat patchy.
- 12 Feb 2009
Slovenia: Slovenia: Collective bargaining and continuous vocational trainingThe LLL and CVT is becoming a very important issue in Slovenia. The dedication to Lisbon Strategy goals is included in all national strategic documents. Strong legal basis is established and right to education and training is guarantied in labour legislation and collective agreements. The responsibility is shared by all social partners however trade unions have impression to be the weakest link.
- 12 Feb 2009
Romania: Romania: Collective bargaining and continuous vocational trainingIn Romania, the continuous vocational training system has been organised as a network of national, local and sectoral structures of the authorities in charge. On the legal and institutional sides, the tripartite vocational training system of Romania is on a par with the rest of Europe. The system, however, does not operate at maximum potential for lack of financial resources.In the new internal labour market context, with a labour force deficit, both employers and trade unions have all the reasons, therefore, to increase their effort to allocate funds and also to access funds, including the European Social Fund.
- 12 Feb 2009
Norway: Norway: Collective bargaining and continuous vocational trainingIn Norway a number of issues related to CVT were high on the collective bargaining agenda in the late 1990s and until 2001. As part of the Competence Reform – where the social partners played an important role – adults have got the right to finish basic and upper secondary education. Employees also got the right to study leave (up till 3 years), and adults over 25 have been given the right to admission to universities and university colleges based on formal, non-formal and informal qualifications. The social partners never agreed on how to finance educational leave, and CVT has not been on the central/sector level bargaining agenda since 2001.
- 12 Feb 2009
Italy: Italy: Collective bargaining and continuous vocational trainingThe Italian CVT system is very recent: its design started in 1993 contemporaneously with the July agreement, and was achieved in 2003 with the establishment of the CVT observatory involving both public institutions and social partners, reflecting the key role of concertation over time. The system however is not yet complete because of the lack of nationwide professional and training standards and because of incomplete monitoring report from the regions, which are responsible for management and administration of public funds. However, public financing play a minor role in firms training expenditure because of bureaucratic burden.
- 12 Feb 2009
France: France: Collective bargaining and continuous vocational trainingThe ‘individual right to training’ approved by the social partners in December 2003 and included in the law in 2004 has now been extended to civil servants. Increasingly widely implemented, the training opportunities it offers have enabled a growing number of employees to improve their skills. The regions, social partners and the State are responsible for implementing the individual right to training. It is already possible to partially assess the impact made by introduction of the right.
- 12 Feb 2009
Denmark: Denmark: Collective bargaining and continuous vocational trainingCVT in Denmark is mainly provided and paid for by the state, whereas the collective agreements establish the right to take up CVT. The social partners are deeply involved in all bodies at all levels concerning the content and the development of CVT.
- 12 Feb 2009
Bulgaria: Bulgaria: Collective bargaining and continuous vocational training in EuropeBulgarian policies on enhancing economic competitiveness, labour force employability and social inclusion were highly influenced by EU accession. It has also been reflected through the reform of CVT aiming at increased labour force participation and the development of adaptable labour force with competences and skills that match the demands of the common European labour market. The participation of social partners in the CVT system development is of great importance. Nevertheless, the practice in Bulgaria shows that CVT still is not a collective bargaining priority and involvement of social partners at different levels is uneven.
- 09 Feb 2009
Austria: Austria: Collective bargaining and continuous vocational trainingIn the area of continuous vocational training (CVT), social partner involvement is most strongly institutionalised in the AMS, the national employment service agency. Likewise, the role of the social partners is also crucial in devising continuing training programmes and guidelines and in relation to legislative initiatives. However, CVT issues are only marginally dealt with in collective bargaining, mainly because the heterogeneous structure of Austria’s economy renders it difficult to set up uniform, industry-wide CVT schemes.
- 06 Feb 2009
Ireland: Ireland: Collective bargaining and continuous vocational trainingThis study outlines the state of play on continuous vocational training (CVT) in Ireland as of February 2008. In the past ten years or so, the Government and the social partners have paid increased attention to CVT, explicitly linking it to economic and social progress, and it is high on the agenda in tripartite centralized bargaining. However, company-level collective bargaining on CVT remains less well-developed.
- 06 Feb 2009
Czech Republic: Czech Republic: Collective bargaining and continuous vocational trainingThere is no functioning system for continuous vocational training in the Czech Republic. Since 1 August 2007 there has been a part law in place on the verification and recognition of the results of further education (Act no. 179/2006 Coll.). The role of social dialogue in the area of further education is not more closely defined in the legislation, and as in other areas social partners may participate in the legislative process in the form of comments on draft laws, through membership of their representatives in the national tripartite body (Council for Economic and Social Agreement, RHSD) and may also propose delegates to the Council (Rada), a consultative body of the Ministry of Education set up by the aforementioned Act. Vocational training is, with the exception of a few obligations imposed by the Labour Code, entirely at employers’ discretion. According to the available information, the issue of vocational training is dealt with in collective agreements only on a sporadic basis.
- 06 Feb 2009
Netherlands: The Netherlands: Collective bargaining and continuous vocational training - 06 Feb 2009
Cyprus: Cyprus: Collective bargaining and continuous vocational trainingIn Cyprus, the Human Resource Development Authority is the only authority with competence and power in the field of training, including continuing vocational training, although without making a direct reference to it. As a result, the continuing vocational training system in Cyprus functions on the basis of a rigidly unified national structure, where the Human Resource Development Authority is the only body with administrative and executive power, however of tripartite representation, while at institutional level the existing system does not establish continuing vocational training as an individual right.
- 06 Feb 2009
Germany: Germany: Collective bargaining and continuous vocational trainingThe regulation of continuous vocational training (CVT) is highly dispersed and only affects a small proportion of CVT activities in Germany. Collective agreements are of minor significance for the incidence of CVT. Over the last years, agreements on CVT have been concluded in some sectors that cover a significant number of employees. They, however, do not provide an individual right to participate in training programmes that are funded by the employer. Whilst unions have called for more extensive legislation to promote CVT activities, employers’ associations oppose any claims for more extensive regulation.
- 06 Feb 2009
Finland: FINLAND: Collective bargaining and continuous vocational trainingThe Employment Contracts Act 55/2001 and the Act on Cooperation within Undertakings (725/1978) (as amended by several acts, including No 457/2005) are the legislation concerning CVT in Finland. The role of the social partners in the system of CVT is very important. However, it does not take place in collective negotiations or agreements; rather it will take place by participating in board of directors in some educational and training institutes. The Adult Education Survey 2006 by Statistics Finland shows that a total number of 57 % of employees, together 1,1 million people participated in 2006 in the employer-sponsored vocational training.
- 06 Feb 2009
Belgium: Belgium: Collective bargaining and continuous vocational trainingIn Belgium, adult education was regionalised during the institutional reform of the State. The regions were given economical competences and the Communities received competencies linked to the language of the citizen (such as education, culture, etc). In The French-speaking part of the country, adult education was finally transferred to the Walloon region. As a consequence, vocational training as a tool of the employment policy depends on the three regions (Brussels, Flanders and Wallonia) while initial training depends on the three linguistic communities (Dutch, French and German-speaking). Moreover, the social partners at all levels (Cross-industry, sectors, companies) play a prominent role in devising, organising and managing the Belgian CVT system.
- 06 Feb 2009
Spain: Spain: Collective bargaining and continuous vocational trainingThe Spanish system of continuous vocational training has developed in the framework of the social dialogue since its creation in the early 1990s. The last negotiated reform of the system in 2007 led to the recognition of the right to the continuing training for all workers, whether occupied or unemployed, through the integration of continuing and occupational training into a single system of vocational training for employment. Another objective of the reform was to promote the inclusion and treatment of continuing training in collective bargaining to guarantee the right to the training of less favoured groups of workers.
- 06 Feb 2009
Estonia: Estonia: Collective bargaining and continuous vocational trainingThe continuous vocational training (CVT) has become an increasingly relevant subject for the government and social partners with regard to the rapid economic growth and the implementation of the flexicurity approach. However, the framework of CVT is mostly defined by the respective legislation as the issue is usually not regulated in collective agreements. Still, the social partners have been active in devising and governance of the continuous vocational training system on national level.
- 06 Feb 2009
Malta: Malta: Collective bargaining and continuous vocational trainingThere have been many positive developments in CVT in Malta at an institutional level as well as in the industrial relations system. There is a high level of awareness of the need for CVT in today’s highly competitive market which demands a continuous updating of skills and competencies. The main lacuna is that, as yet, CVT programmes are not diffused among all categories of workers. This issue seems however to be addressed by social partners as in the collective agreements, clauses granting rights to CVT to workers are being included.
- 06 Feb 2009
Greece: Greece: Collective bargaining and continuous vocational training in Europe - 06 Feb 2009
Hungary: Hungary: Collective bargaining and continuous vocational training in EuropeAlthough the right to participate in training is ensured by law for every citizen and employee in Hungary, and quite a wide range of adult training and CVT opportunities are offered by training companies, NGOs and employers, adult training participation rates are considerably lower than the EU average and CVT activities of employers vary greatly according to sector and company size. Social partners are involved in the policy- and decision-making processes of CVT through various tripartite bodies at national as well as regional level. In relation to legislative provisions, the role of social dialogue – advising and reviewing CVT policies - is regulated at national, regional and company level. Although life long learning as a national level policy objective, as well as various issues concerning vocational training, are widely discussed in the social dialogue forums, CVT as a company policy is practically missing from collective agreements.
- 06 Feb 2009
Poland: Poland: Collective bargaining and continuous vocational trainingThe continuous vocational training system in Poland has a strong basis in binding regulations. The significance of this issue is stressed in a few acts and decrees. Worth noticing is the fact that only few regulations were prepared with involvement of social partners. Furthermore, social partners were also in minimal extent responsible for the CVT system forming by the tripartite structures.
- 06 Feb 2009
Portugal: Portugal: Collective bargaining and continuous vocational training in EuropeIn the context of the general inertia in collective bargaining, social dialogue and collective bargaining are not a central factor in the CVT system. Tri-partite negotiations at interprofessional- and sector-level, on the other hand, has succeeded in creating a common understanding of government and social partners with regard to VET/CVT and in formulating a consensus on central elements of the political strategy in this area. Another important factor is the labour legislation (2003) that introduced new mechanisms for the advancement of CVT. Confronted with the inertia in collective bargaining, trade unions have launched a campaign at company level to make legal rights to CVT effective.
- 06 Feb 2009
Luxembourg: Luxembourg: Collective bargaining and continuous vocational trainingThe law of 16 September 1996 brought in a tripartite consultative committee for vocational training ,which is asked to give its opinion prior to the taking of measures necessary for initial vocational training and continuous vocational training. However, two aspects need to be distinguished: collective access and individual access to training. As far as collective access to continuous training is concerned, there have not been many changes. Some sectors (banks, construction and hospitals) have included in their sectoral collective agreements concrete mechanisms for continuous training. The major recent progress concerns the individual access to continuous training. The signature in 2003 of an agreement between the social partners has led to the introduction of the right to 80 days off for vocation training in a career.
- 06 Feb 2009
Latvia: Latvia: Collective bargaining and continuous vocational trainingNational and sector level social dialogue has important role in development of continuous vocational training (CVT). Social partners participate in elaboration of development strategies of vocational education (planning of study directions, establishing of profession standards and study programs) and life-long learning. Legal rights of social partners regarding CVT are established in the law On vocational education and Concept of life-long learning. Collective bargaining is active mostly at sector and company level. It does not have impact on CVT at the policy making and legislation levels. However, CVT related items are usually included in collective agreements thus contributing to its implementation.
- 06 Feb 2009
Lithuania: Lithuania: Collective bargaining and continuous vocational trainingIn Lithuania, CVT includes formal and non-formal vocational training. Participation of the social partners in the devising and governance of the CVT system are provided for in legislation governing vocational training. Collective bargaining on CVT is actually found to take place on enterprise level only. Enterprise-level collective agreements usually contain a chapter or at least a paragraph on the CVT of employees.
- 06 Feb 2009
Slovakia: Slovakia: Collective bargaining and continuous vocational trainingContinuous vocational training is regulated by legislation as an integral part of the education system. CVT activities are funded from public and private resources. Representatives of social partners were involved in social dialogue on changes in legislation regulating CVT. Trade unions´ and employers´ representatives are involved in application of CVT initiatives in practice through sectoral and enterprise-level collective bargaining. Nevertheless, CVT is not a significant issue of the collective bargaining. Trade unions consider CVT is important for the employment security, but employers expect more engagement of the state, especially in financial terms, in CVT.
- 04 Feb 2009
France: Controversy over new return-to-work measureIn October 2008, the French parliament adopted a bill extending nationally a new form of social welfare known as ‘active solidarity income’. This new benefit will make it possible to combine guaranteed minimum income with paid work. However, its funding has led to controversy and criticisms have also been made regarding its discriminatory nature. Trade unions argue that the new income benefit will encourage the proliferation of low-paid jobs.
- 04 Feb 2009
France: Record abstention of employees in industrial tribunal electionsIn early December 2008, private sector employees and employers elected members of the bipartite industrial tribunals. The results reflect the support each confederation has and thus their ranking in terms of this support. However, employees’ abstention rate increased once again compared with the previous elections, while it declined once more among employers. Debate has thus arisen on the usefulness of maintaining these elections in their current form.
- 04 Feb 2009
Italy: Agreement reached on job cuts at Whirlpool ItaliaAfter the October 2008 announcement by Whirlpool of its intention to shed 5,000 jobs worldwide, including 1,000 jobs in Europe alone, a series of meetings were held with trade unions. In Italy, 691 redundancies were envisaged, 431 of which would occur at Whirlpool’s two main Italian plants in the province of Varese in Lombardy. In mid December 2008, an agreement was signed by Whirlpool Italia and the trade unions on workforce cutbacks at the Varese plants.
- 04 Feb 2009
Netherlands: Social partners agree on dismissal lawIn the autumn of 2008, the social partners reached agreement with the Dutch cabinet on the country’s dismissal law. Resolving the issue had previously been entrusted to an advisory committee, the Bakker Committee, as the government parties opposed one another directly. However, the committee’s recommendations were again overruled in the autumn agreement. While employees will continue to enjoy protection from dismissal, the benefit level will be reduced and a ceiling introduced.
- 04 Feb 2009
Malta: Malta Union of Teachers pulls out of union confederationIn December 2008, the Malta Union of Teachers withdrew its membership from the Confederation of Malta Trade Unions. A rift was created when the union called for the setting up of a trade union council without previously presenting its proposal to the other unions in the confederation. Subsequently, relations became more strained when the union questioned the government’s document on the revision of the utility tariffs, after the confederation had reacted positively towards it.
- 04 Feb 2009
Germany: Minimum wages in postal services sector suspendedOn 18 December 2008, the higher administrative court of the federal states of Berlin and Brandenburg suspended the introduction of minimum wages in the postal services sector. The United Services Union regrets the court’s decision and even called for the introduction of nationwide minimum wages. However, a new establishment survey by the German Chambers of Industry and Commerce shows that the introduction of minimum wages would lead to a decline in employment in many industry sectors.
- 04 Feb 2009
Finland: New tax reliefs and improved social security entitlementsIn February 2009, the Finnish government will reduce income tax rates and increase various social security entitlements. The tax credit for domestic costs and daily allowances for sickness, maternity and paternity leave, and rehabilitation measures will be extended. Moreover, unemployment benefit will increase slightly. According to the Taxpayers’ Association of Finland, the purchasing power of an average wage earner will rise by up to 4.6% in 2009, three times more than the 1.5% increase in 2008.
- 04 Feb 2009
Finland: Employers propose pay freeze for 2009The Confederation of Finnish Industries has proposed a revaluation of the agreed pay increases in 2009 due to the rapidly changing economic situation. As part of the proposal, the employer organisation has suggested that labour market organisations should consider the possibility of postponing or freezing previously agreed pay increases in 2009 to avoid layoffs and dismissals. However, the trade unions and Prime Minister Matti Vanhanen have rejected the proposal.
- 04 Feb 2009
Estonia: New labour law to increase flexibilityEstonia’s new Employment Contracts Act will take effect from 1 July 2009, bringing about a number of significant changes in the country’s labour market. The legislation primarily aims to make the labour market more flexible and to increase the social security provisions of workers. Although the new act is based on a tripartite agreement, the consultation process has been subject to severe criticisms by the trade unions as well as several political parties.
- 04 Feb 2009
France: Closure of third largest French mail-order networkMore than 60 years after its creation by the teachers’ mutual insurance company, the main subsidiary of the Camif cooperative group is to be closed following an announcement by court decision in October 2008. Some of the 780 employees who lost their jobs plan to create a workers’ cooperative society, while others hope to take advantage of the personalised back-to-work assistance agreement proposed by the government.
- 04 Feb 2009
Belgium: Social partners and government agree plan to boost economyAt the end of 2008, the Belgian government presented a stimulus plan to revive the national economy. In the meantime, the social partners negotiated their intersectoral agreement for the next two years, which seeks to strike a balance between companies’ competitiveness, purchasing power and employment in light of the current economic crisis. A substantial increase of net salaries and tax reductions for employers are among the proposed measures.
- 04 Feb 2009
Netherlands: Government and social partners unite efforts to tackle economic crisisThe sharp economic downturn that has followed the financial crisis in the autumn of 2008 has brought the government and social partners closer together. The government permitted companies to temporarily register employees under the Unemployment Insurance Act, and the social partners requested in December that this arrangement be extended in 2009. They also proposed a range of supplementary arrangements targeting unemployed people and business.
- 04 Feb 2009
United Kingdom: Government announces legislative plans for 2009In December 2008, the UK government announced its legislative agenda for the new parliamentary session in 2009. This included several items of employment-related legislation, among them a major Equality Bill, legislation reforming education, training and apprenticeships, and a bill modifying the welfare system. The government also confirmed that it would extend parents’ rights to flexible working. The social partners gave the plans a mixed reaction.
- 04 Feb 2009
Malta: Government to abolish post of employee board member at Bank of VallettaThe government has announced its intention to abolish the practice of having an employee representative on the board of the Bank of Valletta, of which it is the major shareholder. The abolition of this post, generally referred to as the ‘worker director’, marks the last remnant of employee participation in Malta’s public sector. While the General Workers’ Union expressed its opposition to the decision, the banking trade union seemed to tacitly approve of the move.
- 04 Feb 2009
Ireland: Record majority of trade unions back national dealDelegates attending a special conference of unions affiliated to the Irish Congress of Trade Unions voted by a record majority in favour of the new national agreement in November 2008. The trade union representatives reached consensus on the so-called ‘Transitional Agreement’ under the ‘Towards 2016’ framework and were followed by the main employer organisation, the Irish Business and Employers’ Confederation, which also voted in favour of the agreement.
- 04 Feb 2009
Ireland: Expert group to look into cutting public sector costsFaced with mounting pressure to tackle day-to-day running costs in the public sector and make substantial job cuts, the government has responded by establishing a special expert group to examine the scope for cost reductions. A report by the Organisation for Economic Co-operation and Development noted that productivity and customer-related improvements could be made in several areas. If voluntary redundancies are proposed, the scheme is likely to be over-subscribed.
- 04 Feb 2009
Spain: Government plans to reform vocational training systemThe Spanish government is planning to modernise the country’s vocational training system in order to foster a more sustainable model of economic growth. A key objective of the proposed reforms is to improve the employability of young people in emerging sectors of economic activity. The reforms envisage the accreditation of work experience, as well as the creation of National Vocational Training Reference Centres.
- 04 Feb 2009
United Kingdom: Mixed reaction to European Parliament rejection of working time opt-outIn December 2008, the European Parliament voted to end the scope for workers to opt out of the EU working time directive’s 48-hour limit on average weekly working time. UK trade unions welcomed the move; however, it was strongly criticised by employer organisations and government ministers. The trade unions argued that the next stage was to tackle low pay and productivity, while employers and the government still aim to protect ‘freedom of choice’.
- 04 Feb 2009
France: Christian Workers’ Confederation holds 50th congressIn October 2008, the French Christian Workers’ Confederation (CFTC) held its 50th national congress in Strasbourg in France. Jacques Voisin was elected President of CFTC for a third term, while the former treasurer, Philippe Louis, is now the General Secretary. The leadership has decided – given the new rules on representativeness – to intensify the trade union’s strategy of increasing the number of branches, especially in small and medium-sized enterprises.
- 04 Feb 2009
Italy: Government launches anti-crisis measuresOn 28 November 2008, the Italian Council of Ministers approved the so-called ‘anti-crisis decree’, which sets out the government’s economic policy measures to restore consumer and business confidence – currently at the lowest levels since 1993 – and thus relaunch the Italian economy. Business leaders have approved the general provisions of the decree but are calling for more resources, while the main trade union announced a four-hour general strike in protest.