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March 2009

• 31 Mar 2009
  Finland: Nokia wins company right to monitor employee emails

  Numerous unnamed civil servants, politicians and representatives of labour market organisations have told the Finnish newspaper ‘Helsingin Sanomat’ that Finland-headquartered mobile phone maker Nokia had threatened to leave Finland if parliament failed to pass a piece of legislation known as the ‘Lex Nokia’ bill. Lex Nokia would grant employers access to employees’ email metadata if they suspected a breach of confidentiality clauses.

• 31 Mar 2009
  EU Countries: Wage formation in the EU

  This report examines wage formation in the EU from a range of perspectives. It analyses the main systems of wage formation in operation and looks at the main wage developments of the past five years. This includes an overview of recent sectoral agreements, along with an analysis of trends at company level and of the social partners’ views. The report also explores key issues pertaining to the minimum wage, including how national rates are set and upgraded. The final section of the report analyses wage formation in the dynamic and fast-growing IT sector, which tends to yield higher wages than elsewhere in the economy. Among the report’s findings are the variable levels of wage growth across the EU countries, along with the widespread use of individualised pay and other variable pay elements at company level.

• 31 Mar 2009
  Cyprus: Cyprus: Wage formation

  In Cyprus, where collective bargaining has traditionally played a primary role in regulating labour relations, salaries and wages are usually set through bipartite negotiations between the most representative employers’ organisations and trade unions on the industry-wide and enterprise levels. In five occupations where the majority is not covered by collective agreements, current legislation sets minimum wages determined on a monthly basis.

• 31 Mar 2009
  Germany: Germany: ‘Wage formation’

  The German system of wage formation is still dominated by sectoral collective bargaining. There is no state intervention in collective bargaining. Contrary to most European countries Germany has no statutory minimum wage. In the IT industry there is no overall pattern of collective bargaining. Some companies are covered by sectoral collective agreements, some by company level collective agreements and an unknown- albeit not insignificant- number of enterprises is not engaged in collective bargaining at all.

• 31 Mar 2009
  Ireland: Ireland: wage formation

  This study examines wage formation in Ireland as of May 2008. The primary level of wage formation in unionised employments in Ireland is multi-employer centralised bargaining, although company-level bargaining also sometimes occurs around the terms set by national wage bargaining. It is evident that voluntarism and collective bargaining coverage has gradually been receding over the past decade or so, and wage setting is becoming subject to increased legal regulation – for instance, through a statutory national minimum wage. Furthermore, in the rising number of non-union employments, wages are primarily set by employers at company-level, where wage formation tends to be far more individualised than in unionised employments.

• 31 Mar 2009
  Slovakia: Slovakia: Wage formation

  The system of wage formation is a mixture of several approaches. State authorities play a role mainly in defining the minimum level of wages and in defining wages of civil servants and certain public servants. The wage growth did not exceed the growth of labour productivity in the last years. On 1 February 2008, a new Act on minimum wage entered into effect. As regards the IT sector, employment in this new sector makes up only 0.5% of the overall national employment in companies with more than 20 employees. Labour market processes seem to be the main factor for wage formation in the sector.

• 31 Mar 2009
  Luxembourg: Luxembourg: Wage formation

  Wage setting in Luxembourg depends either on legislation (in the case of public sector pay and the minimum social wage) or on collective agreements while it may also be negotiated individually by the two parties in an employment contract. The latter, however, must take account of certain reference figures (the existence of a minimum social wage or pay scales specified in applicable collective agreements). Luxembourg has an automatic wage indexation mechanism so that wages can be adjusted according to changes in the costs of living.

• 31 Mar 2009
  Greece: Greece: Wage formation

  Convergence of workers’ incomes with incomes in the developed countries of the EU, protection of social cohesion and reduction of inequalities, boosting competitiveness, having the advantage of low labour costs, and the need to reduce inflation are the factors, often contradictory, that create the framework for wage formation in Greece. As the new National General Collective Labour Agreement (EGSSE) signed in March this year showed, the function of minimum wages, at least in protecting incomes from increased inflation, constitutes a minimum safety net for an increasing part of the population, for whom more and more characteristics of new poverty are being created.

• 31 Mar 2009
  Slovenia: Slovenia: Wage formation

  In May 2008, the social partners in the private sector finally signed the intersectoral Collective Agreement on Extraordinary Pay Adjustment for 2007 and on the Pay Adjustment Method, the Refund of Work-related Expenses and the Annual Leave Bonus for 2008 and 2009. In the public sector, in July 2007 and after five years of negotiations, the government and the public sector trade unions reached an agreement on the overall intersectoral collective agreement for the public sector. Trade unions in education, science and judiciary are still negotiating with the government about the provisions of the sectoral collective agreements. Social partners agree that changes to the legislation on minimum wage are necessary.

• 31 Mar 2009
  United Kingdom: Wage formation: the UK

  This contribution examines wage formation in the UK, including overall data relating to pay, the implementation and influence of the National Minimum Wage, and wage formation in the IT sector. Collective bargaining in the UK is decentralised and takes place mostly at company or workplace level, especially in the private sector, albeit to a limited extent. The UK has had a National Minimum Wage since 1999 and this is deemed to be functioning well. It is uprated periodically by the government, following recommendations by the Low Pay Commission. Pay in the IT sector is set at company or workplace level.

• 31 Mar 2009
  Netherlands: The Netherlands: Wage Formation

  The system of wage formation in the Netherlands is fairly stable. Collective bargaining coverage is more than 80% (including extension). The sector level is dominant, but the number of company agreements is increasing. Since 1969, there is a legal minimum wage, which is, however, not an issue for debate. The IT-sector differs from other sectors in many respects, e.g. low coverage by collective agreements and low union density. In the economy as a whole, and even more so in the IT-sector, labour shortages drive wages up.

• 31 Mar 2009
  Portugal: Portugal: Wage formation

  Wage formation in the private sector is largely underpinned by sectoral collective bargaining, but the state plays an important role in various respects. Monitoring by the Labour Ministry and tripartite bodies is weak. Since 2000 average real wage increases agreed upon in collective bargaining have been oscillating between –0.5% and +0.5%, but many companies pay remunerations considerably above the collectively agreed wages, as for instance in the IT sector.

• 31 Mar 2009
  Latvia: Latvia: Wage formation

  General principles of wage formation and wage systems are underpinned by labour legislation. The main actors in wage formation are employers and employees. Wage formation principles and pay in particular are described in the employment contract. Collective bargaining plays role at company level in undertakings where trade unions are established. Only some sector level collective agreements are concluded. National minimum wages are decided by the Cabinet of Ministers. The level of the national minimum wage is the main issue of the national level social dialogue. Labour market plays an important role in wage formation. Currently the wage trends are changing from fast growth to moderate growth.

• 31 Mar 2009
  Czech Republic: Czech Republic: Wage formation

  The pay system in the Czech Republic is based both on legislation as well as on collective bargaining, with negotiations taking place at the company-level but also higher levels. Current conditions on the labour market (including regional segmentation of the labour market) also play a considerable role in wage formation, especially at the single enterprise. A minimum wage regulation is in place at national level. This current contribution will look in particular at the ICT sector, a sector that plays a key role in the Czech economy. The ICT sector includes a combination of ICT manufacturing and ICT service industries which are associated with the production and/or distribution of information and communication technologies and the provision of the related services.

• 31 Mar 2009
  Estonia: Estonia: Wage formation

  In general, the situation in Estonia is characterised by rapid wage increases in the past years, with an average increase of 16% in 2006. Wage formation takes place mostly at company level with the exception of some sectors where sectoral level minimum wage agreements are valid (i.e. health care and transport). There is also a statutory national level minimum wage which is agreed by the social partners and established by the governmental decree. In 2007 the minimum wage stood at 32% of the national average wage.

• 31 Mar 2009
  Romania: Romania: Wage formation

  Wage formation, and more specifically the setting of the minimum wage, are core subject of collective bargaining at all levels. The legal basis of wage regulation is the Romanian Labour Code. An important issue of debate was the disparity between the collectively agreed minimum wage and the minimum wage set by government decision. For the first time since four years, the two minimum wages levels for 2008 were equal. Despite a marked upward tendency of labour costs, Romania is still an attractive and competitive economy due to its cheap labour.

• 31 Mar 2009
  Sweden: Sweden: Wage formation

  The wage formation system in Sweden is slowly changing. The development goes from strict collective agreements of wage formation at the sector level to more individualised wage negotiation at company level. The IT sector has a leading role in this regard. Minimum wages are only enacted in collective agreements. The minimum wages that exist are relatively high when compared internationally. While minimum wages aren’t a much debated issue, the gender pay gap is often debated and the struggle towards more equal wages is emphasized by all social partners. However, the gender gap decreases very slowly.

• 31 Mar 2009
  Poland: Wage formation: Poland

  The considerable increase of remunerations has been one of the most important bits of news for the Polish public. While this tendency can be observed in the private and the public sector, its causes are different in each case: Economic migration to more developed European Union countries who opened their labour markets to citizens of the new member states has produced a labour shortage over a relatively short time, and many employers decided to increase wages in order to counteract this brain drain. These pay increases did not involve high costs due to the generally good shape of the Polish economy. Public sector employees, whose earnings are not directly linked to the financial results of their employing entities, decided to benefit from these favourable conditions. For the most part, the initiative for seeking pay raises was issued by the trade unions, which remain a strong representative force in the Polish public sector.

• 31 Mar 2009
  Hungary: Hungary: Wage formation

  Although Hungary has a three tier bargaining system – including the National Interest Reconciliation Council setting the minimum wage and wage agreements at sectoral and company level – the labour market has a decisive role in individual wage setting. Between 1999 and 2006 wages increased faster than the GDP and productivity but in 2007 real wages decreased by 4.8% due to the introduction of the government’s austerity package. Minimum wage increases, especially a separate increase for skilled workers, is an issue of debate between the social partners.

• 31 Mar 2009
  Denmark: Denmark: Wage formation

  Wage formation in Denmark is mainly based on collective and to a lesser degree individual bargaining. There is no legislation neither regarding wage formation in general nor regarding a national minimum wage. Wage formation in the trend-setting private sector is mostly settled at sectoral level as a minimum increase, which is then followed up by company level bargaining. Wage formation in the IT sector mainly follows the same pattern, but individual negotiations about pay are dominant in highly skilled, innovative companies and within the internet related businesses. Wage formation in the public sector is traditionally centralised and a system called New Pay has not been the success it was meant to be.

• 31 Mar 2009
  France: France: wage formation

  Real pay has increased only little during recent years. In theory, pay bargaining takes place in the framework of industry-wide collective agreements, but in practice it is increasingly occurring at company level. It is to a large extent controlled by government decisions regarding the level of minimum pay, social contributions and overtime. The concentration of pay at the bottom end has reopened the debate on rules governing minimum pay and on compensation of social contributions. Recent price increases have raised the issue of a general pay rise.

• 31 Mar 2009
  Lithuania: Lithuania: Wage formation

  Information on the wage formation process in Lithuania is rather scarce. While wages in the public sector are regulated by national law, wages in the private sector are usually set individually between the employer and the employee. In general, collective bargaining processes are poorly developed. Recent rapid economic growth accompanied by labour shortages as a result of labour migration contributed to accelerated wage increases both in the private and the public sector. In line with the general pay trend, the minimum wage has been increased in recent years. However, its level still remains insufficient and accounts for less than 40% of the average wage.

• 31 Mar 2009
  Austria: Austria: Wage formation

  In Austria, minimum pay regulations are not set by statutory law but (except for the whole public sector) laid down in sectoral and branch-level collective agreements. This system of wage setting draws its stability and persistency mainly from two factors: a collective bargaining coverage rate of about 98-99% and the practice of’ pattern bargaining’, based on the leading role of the metalworking industry in the overall bargaining process. Despite this high degree of bargaining coordination, Austria’s collective bargaining system is not the case of centralised, tripartite concertation of wages. This is reflected by a high degree of pay inequalities between sectors, sexes and employee statuses, and flexibility.

• 31 Mar 2009
  Norway: Norway: Wage formation

  Wage setting in Norway is dominated by a two-tier system of collective bargaining at sectoral and company level, while individual wage setting is getting more common for white-collar employees in the private sector. Compared to many EU member states, collective bargaining coverage rates are rather high. Norway has no minimum wage legislation. However, the extension of collective agreements - that was first used in 2004 - will provide some form of a minimum wage. With regard to the ICT sector where wages increased at above-average rates in recent years, collective bargaining coverage seems to be rather low while individualised wage setting is widespread.

• 31 Mar 2009
  Belgium: Belgium: Wage formation

  Wage bargaining and formation is a key feature of the Belgian industrial relations system. In this national contribution the key dimensions of this system are outlined. Coordinated wage bargaining at sector level with an automatic indexation and wage norm are the basic features of this Belgian system. In the following, additional elements of this system will be introduced (recent trends, minimum wage, gender aspects) while a case study will highlight wage developments in the IT sector.

• 31 Mar 2009
  Malta: Malta: Wage formation

  Whereas the minimum wage in Malta is set by law, wages are often regulated by collective agreements at enterprise level. All wages are topped up by a mandatory annual wage increase based on the inflation rate. Workers in the IT sector are among the most highly paid categories of workers. Industrial disputes in Malta normally revolve around wage issues. The General Workers’ Union has organised several campaigns against illegal and unethical wage practices. Unions are concerned that inflation is rising higher than the annual cost of living increase, thus diminishing the purchasing power of workers.

• 31 Mar 2009
  Spain: Spain: Wage formation

  The “pay question”, particularly the problem of low pay, is once more a major subject of debate in Spain after the publication of international reports confirming the decrease in the proportion of wages to the total national income. Whereas the agreed pay maintains a moderate growth rate, the trade unions claim that the decrease in the proportion of wages to the national income is due to a model of economic growth based on unproductive sectors with the worst-paid jobs. The trade unions have therefore proposed measures aimed at improving the purchasing power of pay and fighting the inflation generated by high profit margins.

• 31 Mar 2009
  Bulgaria: BULGARIA: Wage formation

  The system of wage formation in Bulgaria has been determined by various factors, collective bargaining being one of them. Although there has been a growth of average wages of 84% in the period 2003-2008, dissatisfaction with wage levels remains in some sectors, like education and health care. This current contribution will further analyse the situation in the IT sector, where collective bargaining is of importance for a limited number of companies only.

• 31 Mar 2009
  Finland: Finland: Wage formation

  During the past four decades, the main system of wage formation has been collective bargaining between trade union confederations and employers’ confederations. Collective bargaining at branch level between trade unions and employers’ associations is the main determinant. The wage bargaining rounds at sectoral level provide a framework for company level negotiations. There has been a significant shift towards company-level agreements and the reform of pay systems in the 2007 bargaining round. Current sectoral agreements contain many possibilities of so-called local pay which means that the locally negotiated pay increase pool has to be increased substantially.

• 31 Mar 2009
  Italy: Italy: ‘Wage formation’

  The system of wage formation in Italy is based on industry-wide bargaining at national level, according to the tripartite agreement of 23 July 1993. In last years a major debate took place in order to enhance the role of company level bargaining and to reform the bargaining structure. There are no specific data available on wage formation in the IT sector since it is included in the broader traditional industry sector as far as the main level of collective bargaining is concerned.

• 24 Mar 2009
  Netherlands: Unions criticise separate agreement for eastern European temporary workers

  The Dutch Trade Union Federation has criticised the separate collective agreement for temporary employees from eastern Europe concluded in February 2009 by the Association of International Employment Agencies and De Unie. The federation disapproves of the fact that the agreement provides for lower pay than the existing agreements for temporary workers in the Netherlands. A majority of the Dutch House of Representatives are also opposed to the initiative.

• 24 Mar 2009
  Greece: Eurobank advocates curbing income growth to boost competitiveness

  Holding income growth rates down to a figure lower than the sum of inflation and productivity growth to boost the competitiveness of the Greek economy is the proposal put forward in a report by the Department of Economic Research and Forecasting of Greece’s private bank, Eurobank. However, the trade unions disagree, believing that current policies fail to do enough to help the most vulnerable groups in society.

• 24 Mar 2009
  Greece: Employees oppose privatisation plan for Olympic Airways

  In November 2008, the Greek parliament approved a government plan to privatise Olympic Airways. The plan stipulates that Olympic Airways will be split into three separate companies and sold to private buyers, with a smaller successor airline likely to emerge. The employees will be offered voluntary departure with financial benefits and transfers to other parts of the public sector. Employees and unions at Olympic Airways strongly oppose the privatisation plan.

• 24 Mar 2009
  Italy: Social partners sign pact on health and safety for building sites in Milan

  On 3 December 2008, an agreement was signed between the representatives of the Local Council of Milan and the social partners. The agreement sets out rules for participating in calls for public works tenders in Milan. It also establishes a list of criteria for carrying out private construction work in the city. The agreement is of particular importance due to the anticipated increase in the number of building sites leading up to Milan’s hosting of the Universal Exposition in 2015.

• 24 Mar 2009
  Romania: Anti-crisis measures agreed by social partners

  Measures to support the Romanian economy were to come into effect in January 2009; however, the new government decided to agree the anti-crisis programme with the social partners first. Although the government thus brought the budget and anti-crisis measures to public knowledge as having been agreed with the social partners, the latter promptly voiced their dissatisfaction at how the programme reflects their own proposals.

• 24 Mar 2009
  Romania: R & D trade unions protest to halt funding cuts

  Dissatisfied with the funds allocated to research from the state budget, on 9 February 2009, the Trade Union Federation of Research and Design Workers in Romania called for a protest march starting from the building of the Ministry of Public Finance and ending with a daily picketing of the Romanian Parliament buildings for the duration of the debates on the 2009 state budget. As a result, the parliament approved funds equal to those for research and development in 2008.

• 24 Mar 2009
  Finland: Social partners sign agreement on welfare and unemployment

  Finland’s national social partner organisations have reached an agreement on welfare and unemployment issues. The agreement provides for an increase in the national pension contribution, which raised criticism among the employers. However, this measure is to be linked to an increase in contributions to regular pension plans, of which employers and employees will share the costs. Access to unemployment benefits is also to be increased, as is the minimum age for receipt of unemployment pensions.

• 24 Mar 2009
  EU Level: European social partners discuss economic recovery plan for EU

  In the debate about the measures needed to face the current financial and economic crisis, the European social partners have expressed their views. While BusinessEurope, representing the employer side, calls for a renewal of the European social market economy, the European Trade Union Confederation proposes a ‘new green deal’ seeking ‘to end “casino capitalism” and base growth and jobs on sustainable investment, fair wages and distributive justice’.

• 24 Mar 2009
  EU Level: Europe-wide protests against Hewlett-Packard job cuts

  Following the takeover by the leading computer manufacturer Hewlett-Packard (HP) of the information technology service provider Electronic Data Systems, HP announced that it will be cutting more than 24,000 jobs. About 9,300 of these job cuts may be in Europe. In protest against the management’s plans to cut jobs and freeze wages and benefits, a European-wide action day was held in November 2008, followed by two further protest action days in January 2009.

• 24 Mar 2009
  Lithuania: Public sector unions oppose budget cut proposals

  With a view to mitigating the consequences of the economic and financial crisis for the Lithuanian economy, the new cabinet of ministers, which came into office in December 2008, approved a decision to reduce the wage fund for the whole public sector. Trade unions representing public sector employees are opposed to this proposal. They have thus initiated negotiations with the Lithuanian government, threatening protest actions unless their opinion is taken into consideration.

• 24 Mar 2009
  Norway: Employer access to employee emails curtailed

  On 1 March 2009, new provisions regulating employers’ access to employee emails came into effect in Norway. Under these provisions, employers may access employees’ emails if it is deemed necessary for the daily operations of the company, or if they suspect that the employee is breaching their contractual obligations. The adopted provisions differ somewhat from the proposal that was issued for consultation in the autumn of 2006.

• 24 Mar 2009
  Norway: Government to widen employer liability in bid to combat social dumping

  Throughout Europe, the main contractor is increasingly becoming legally responsible for the unpaid wages of employees of its subcontractors. The Norwegian government is currently considering a model of joint and several liability. A proposal for how such a model may be shaped was submitted for consultation in December 2008. The proposal forms part of the national action plan against social dumping.

• 24 Mar 2009
  Portugal: Statutory minimum wage increases by 5.6% in 2009

  Despite the initial reactions of employer organisations – citing the current global economic crisis – the Portuguese government decided to follow in 2009 the plan defined by a 2006 tripartite agreement on increasing the statutory minimum wage. The ordinance that came into force in January 2009 thus increases the statutory minimum wage by 5.6%. It takes a further step towards narrowing the gap of wage inequality, which is prevalent in Portugal.

• 24 Mar 2009
  Portugal: Trade unions fear job losses after bank nationalisation

  The trade unions in the banking sector welcomed the measures taken by the government in November 2008 to nationalise the Portuguese Business Bank. However, they called for the protection not only of the customers’ rights but also of the workers’ rights, in particular the preservation of jobs. In January 2009, the trade unions were confronted with the possibility of the dismissal of 250 employees on fixed-term employment contracts.

• 24 Mar 2009
  Sweden: Ombudsman censures Social Insurance Agency for delay in payments

  The Parliamentary Ombudsman has criticised the Swedish Social Insurance Agency for not paying out insurances to people on time, in line with the administration act. The agency cites its recent major reorganisation for the delays in processing payments. The media and the social partners have strongly criticised the agency’s services. Thus, the government has proposed to set up a new supervisory authority for social insurance to ensure that timely payments are made by the agency.

• 24 Mar 2009
  Sweden: Social partners in motor industry seek to bring back layoff pay

  The social partners and the car industry in Sweden have tried to convince the government to reintroduce layoff pay as a measure to deal with workforce dismissals resulting from the current economic crisis. However, so far, the government has expressed little interest in doing so. Among the proposals to avoid redundancies are payments towards vocational training. In fact, the government has added some training investment measures to its budget plans for 2009.

• 24 Mar 2009
  Estonia: Teachers to get minimum wage increase in 2009

  In December 2008, the Estonian Ministry of Education and Research and the Estonian Education Personnel Union signed a wage agreement for teachers, increasing teachers’ minimum wage by 8% in all qualification levels in 2009. The government plans to raise teachers’ wages to the level of the national average by 2011, although it still remains much lower for most teachers. However, the steady increase in wages to achieve this goal is questionable given the current economic downturn.

• 24 Mar 2009
  EU Level: Use of European Globalisation Adjustment Fund extended

  On 16 December 2008, the European Commission announced changes to the European Globalisation Adjustment Fund (EGF). These will reduce the eligibility threshold for applications and extend the period of support for the fund. The changes were felt necessary to encourage greater use of the fund and to include a broader base. In recent years, the EGF has contributed to projects in Finland, France, Germany, Italy, Lithuania, Malta, Portugal and Spain.

• 24 Mar 2009
  Estonia: New law to change working conditions and institutional framework

  Under the new Employment Contracts Act, several changes have been introduced to Estonia’s labour market, taking effect from 1 July 2009. These changes will mainly affect working conditions and the country’s institutional framework – in particular, working time, proprietary liability, lifelong learning, the administrative burden and labour market institutions. The new act is based on a tripartite agreement concluded in 2008.

• 24 Mar 2009
  Bulgaria: Social partners support new framework for health and safety at work

  In late 2008, the Bulgarian government approved the first National Programme for Health and Safety for 2009. The programme aims to implement the National Health and Safety at Work Strategy 2008–2013, which focuses on improving the quality of prevention policies and control towards risk preventive health and safety. It targets an 8% reduction in workplace accidents. The new framework relies on the shared responsibility of all stakeholders and wider social partner involvement.

• 24 Mar 2009
  Bulgaria: Progress on cross-national trade union cooperation

  In February 2009, in Athens, the Confederation of Independent Trade Unions in Bulgaria and the Greek General Confederation of Labour signed an agreement for cooperation aimed at better representation of trade union rights. Recognising the need to strengthen international trade union cooperation, both confederations agreed to combine their efforts and activities in developing industrial relations systems in harmonisation with European policies and good practices.

• 24 Mar 2009
  Bulgaria: Mixed reaction to new labour law amendments

  In late 2008, a number of important changes were made to the Bulgarian labour legislation, which came into effect on 1 January 2009. These include new provisions for the registration of collective agreements and enlarged scope of the employer’s obligations in the employment relationship, as well as with regard to training and health and safety. Significant amendments relate to maternity leave and stricter controls on compliance with the labour law.

• 24 Mar 2009
  Bulgaria: Employment plan brings Bulgarian labour market closer to EU model

  The priorities of the 2009 national action plan for employment are to ensure stable employment through increasing the qualifications and adaptability of the labour force, to eliminate long-term unemployment and encourage mobility, to eradicate poverty and marginalisation, and to increase flexibility and security through the development of employment relations. These aims will enable the effective integration of the Bulgarian labour market into the European Community.

• 24 Mar 2009
  Bulgaria: Police officers protest for better pay and conditions

  Police officers in Bulgaria are threatening further protest action in March 2009 if negotiations fail with the Ministry of Interior over pay increases, annual bonuses and better work clothes. They have held several meetings since December 2008 and staged protests outside the ministry, receiving support from firefighters and their union. In addition, police officers are dissatisfied with the efforts of the National Police Union and have started procedures to set up a new union.

• 24 Mar 2009
  Belgium: National strategy for health and safety at work 2008–2012

  In November 2008, the Belgian Minister of Employment and Equal Opportunities, Joëlle Milquet, disclosed the main orientations that she plans to give the National Strategy on Health and Safety at Work for the period 2008–2012. Minister Milquet intends to strengthen policies and controls by the labour inspectorate. Furthermore, she aims to raise awareness about work-related diseases, as well as achieving a 25% decrease in accidents at work – in line with EU targets.

• 24 Mar 2009
  Belgium: Social partners sign Pact 2020 for Flanders region

  On 19 January 2009, a new pact for the future was signed by the social partners in Belgium’s Flemish region. ‘Pact 2020’ is a type of tripartite mission statement, which defines a range of policy goals for 2020 for the Flanders region. In line with the European Lisbon Strategy objectives, the region wants to be among Europe’s top five regions in relation to innovation, employment, social cohesion and sustainability.

• 24 Mar 2009
  Belgium: 50% of companies expect to restructure in 2009

  According to a study conducted by the human resources consultancy SD Worx, half of the companies located in Belgium expect to undertake restructuring during 2009. The companies expressing this view are mainly large organisations employing more than 500 employees and many are internationally owned. Domestic companies and small and medium-sized enterprises seem to be less concerned by restructuring processes.

• 24 Mar 2009
  United Kingdom: Energy sector hit by strikes over use of foreign workers

  In late January and early February 2009, contract workers at an oil refinery owned by the petroleum group Total took strike action in protest at the employment of Italian and Portuguese workers on a construction project. Sympathy strikes took place at power plants around the United Kingdom. Although subsequently settled, the dispute raises sensitive issues concerning the use of foreign labour and the application of European Union law in the UK.

• 24 Mar 2009
  United Kingdom: Dramatic rise in number of job losses

  Major job losses continued in the UK during January and February 2009. Most notably, mass redundancies were announced at the steel producer Corus, as well as Barclays Bank and Bank of America. New statistics also revealed that the rate of unemployment is sharply rising, and experts expect that unemployment will top three million in 2009. These developments could also push UK economic and social regulation in a more interventionist direction.

• 24 Mar 2009
  United Kingdom: Government unveils unemployment package

  At an ‘employment summit’ on 12 January 2009, the UK government announced a package of measures aiming to help 500,000 people into work or training. The plans include subsidies for employers that recruit long-term unemployed people and enhanced training opportunities for those who are unemployed. Social partners welcomed the initiative but warned that more needs to be done to prevent people from losing their jobs and from becoming long-term unemployed.

• 24 Mar 2009
  Netherlands: Government appoints crisis team to deal with economic downturn

  In January 2009, the Minister for Social Affairs and the social partners joined forces to deal with the economic crisis. Sustainable measures on labour market modernisation will be explored, to avoid mass redundancies and increase employee mobility. A reduced working hours scheme will remain in place until March. Refresher training programmes will be offered to unemployed people and some social partners will also create incentive plans like job pools and ‘green’ measures.

• 24 Mar 2009
  Latvia: Social partners agree state budget for 2009

  At the National Tripartite Cooperation Council meeting in August 2008, the social partners began discussions on the state budget 2009. The government presented a draft budget and its economic justification. At subsequent meetings, debate continued on the budget. Employers demanded increased effectiveness of the state budget expenses, pointing out unnecessary spending. Trade unions strongly rejected a public sector wage freeze and organised several protests.

• 24 Mar 2009
  Netherlands: Companies to be held liable for underpayment of temporary workers

  The Ministry of Social Affairs and Employment has submitted a legislative proposal placing liability for the non-payment or underpayment of wages on companies that hire temporary workers through ‘mala fide’ or fraudulent temporary work agencies. Trade unions and employer organisations had called for the legislative amendment to combat such practices. ‘Bona fide’ or credited agencies have welcomed the legislation as they face unfair competition from mala fide agencies.

• 24 Mar 2009
  Luxembourg: Social election campaign targets cross-border workers

  During the recent social elections campaign, the trade unions stepped up their campaign among cross-border workers. The measures included an increased number of meetings in Luxembourg and neighbouring countries, as well as election posters in several languages. Cross-border workers constitute over 40% of private sector workers in Luxembourg. However, their presence can be viewed negatively during an economic crisis and when unemployment is on the rise.

• 18 Mar 2009
  Germany: 2008 bargaining round examined

  In January 2009, the Institute for Economic and Social Research presented its annual report on Germany’s 2008 collective bargaining round. The study evaluates collective agreements concluded in 2008, covering about 11.1 million employees. Some 3.7 million employees received pay increases in 2008 which had already been agreed in previous years. The average increase in collectively agreed wages and salaries was 2.9% in 2008, while actual gross wages and salaries rose by 2.3% in the same year, according to the Federal Statistical Office.

• 16 Mar 2009
  EU Level: UK-based multinational signs first international framework agreement

  In December 2008, the world’s largest security solutions group G4S signed an international framework agreement with UNI Property Services. The provisions laid down in the agreement apply to all 570,000 G4S employees, spread across more than 110 countries. This international framework agreement states that G4S will follow international and national labour law in its relations with workers and is the first one signed between a global union federation and a UK corporation.

• 16 Mar 2009
  EU Level: EU issues Communication on ‘new skills for new jobs’

  The European Commission has published a Communication on ‘New skills for new jobs: Anticipating and matching labour market and skills needs’. The measures form part of a package, contained in the European Economic Recovery Plan presented on 26 November 2008, to address the economic crisis as it affects Europe’s economies. Overall, the social partners have welcomed the plan, although both sides argue that further measures are needed.

• 16 Mar 2009
  Bulgaria: Wage increase agreed in metalworking despite economic crisis

  In January 2009, the social partners in the metalworking sector concluded a new collective agreement for 2009–2010. The sector has been one of the hardest hit by the global economic and regional gas crises. However, the social partners are willing to increase production and employment in the sector, while also guaranteeing and respecting workers’ rights. They negotiated a minimum wage increase, additional compensations if inflation reaches more than 8% and a range of social benefits.

• 16 Mar 2009
  Finland: Candidates in the running for SAK presidency

  The Central Organisation of Finnish Trade Unions (SAK) will soon appoint a new president, as Lauri Ihalainen has confirmed his intention to retire in May 2009. Potential contenders for the job include Lauri Lyly, Head of SAK’s bargaining department, and Ann Selin, Chair of the Service Union United. However, a secretary of the Paper Workers’ Union, Petri Vanhanen, has moved to first place in the rankings, with support from influential industrial and transport unions.

• 16 Mar 2009
  Italy: Fiat Group and Chrysler form new alliance

  In January 2009, despite a major crisis in the automotive sector worldwide, the car manufacturers Fiat and Chrysler announced that they had signed a non-binding letter of intent for the creation of a commercial alliance. The Italian sectoral trade unions have therefore reacted with caution, insisting that any alliances should be based on an employment guarantee at existing plants. In another move, the government has announced a plan seeking to support the car industry.

• 16 Mar 2009
  Spain: Social dialogue at a standstill due to recession

  At a meeting in January 2009, the social partners confirmed their commitment to the social dialogue process. Nonetheless, social dialogue in Spain has remained at a standstill due to disagreements over distributing the costs of the recession. Employers have called for a revision of collective agreements in force due to the economic downturn, while trade unions have warned that they will not negotiate pay rises lower than the government’s 2% inflation forecast.

• 16 Mar 2009
  Finland: Government unveils stimulus packages for economic recovery

  The Finnish government has approved a supplementary budget for 2009 including a special stimulus package. The overall impact should amount to €2 billion. It includes about €140 million in transport infrastructure projects. The social partners have welcomed the stimulus package, with trade unions highlighting the emphasis on construction projects while the Confederation of Finnish Industries considered it a positive step towards supporting economic revival.

• 11 Mar 2009
  EU Countries: Industrial relations developments in Europe 2007

  This annual review highlights the most significant developments in industrial relations in the EU Member States and Norway in 2007, both at national and EU level. It sets out the political context, then goes on to examine collective bargaining trends on pay, working time, equal opportunities and other topics. It outlines the year’s main developments in the following areas: employment legislation, social dialogue, and industrial action. The final chapter examines the impact of the European Directive establishing a general framework for informing and consulting employees in the European Communities.The study was compiled on the basis of individual national reports submitted by the EIRO correspondents. The text of each of these national reports is available below. The reports have not been edited or approved by the European Foundation for the Improvement of Living and Working Conditions. The national reports were drawn up in response to a questionnaire and should be read in conjunction with it.

• 11 Mar 2009
  Finland: FINLAND: EIRO annual review — 2007

  The year 2007 saw a breakdown in the national incomes policy agreements, and a significant turn towards enterprise-level settlements and reform of pay systems has taken place in 2007 bargaining round. The new collective agreements offered relatively high pay increases to all employees, and the pay increases in the public (local and central government) sector were even higher than in the private sector. Both the employers’ associations and trade unions have been generally satisfied with the content of the agreements. Nevertheless, the unions have emphasised that the door must remain open to centralised national incomes policy agreements in the future.

• 11 Mar 2009
  Luxembourg: Luxembourg: Eiro annual review - 2007

  There were no elections in 2007. Three collective agreements at sectoral level and 96 at enterprise level were concluded. As a result of the tripartite negotiations in 2006, there were a number of legislative developments aimed at combating unemployment (centralization of information, employment support plans, new regulation of overtime). There was a new bill for introducing a single status for employees in the private sector and a new trade union has been created in the banking sector. A law was voted for reforming the ITM (Inspection du travail et des Mines), and a permanent committee for work and labour has been set up. During 2007 there were no strikes, but there was a major dispute between the teachers’ trade union and the government. The Ministry for Equal Opportunities organized a conference in April 2007 and presented a number of studies on gender and employment in 2007. A new collective agreement was concluded with temporary work agencies. 2008 issues for OGB-L, LCGB and UEL include part-time work, stress and moral harassment, gender equality and the fight against accidents at the working place.

• 11 Mar 2009
  Portugal: Portugal: EIRO Annual Review - 2008

  During 2008 the Socialist government continued its modernisation strategy and did not hesitate to take measures that led to open confrontation with trade unions, namely the revision of the Labour Code and the creation of a new contract regime for the public administration. By reaching agreements with the trade union confederation UGT it was possible to attenuate these conflicts. Collective bargaining made a further step in its recovery from the crisis in 2004 and pay rises in the private sector lay 0.5% above inflation. The above-average increase of the statutory minimum wage in 2008 and 2009 may have significant consequences in future bargaining.

• 11 Mar 2009
  Romania: Romania: EIRO annual review – 2007

  In 2007 Romania took decisive steps towards strengthening and exercising its administrative capacity as a Member State of the European Union. Tuning Romania’s social partners’ concerns to the agenda of European industrial relations is in progress. The effort to aggregate organisational structures may generate new and prominent entities at EU level. The key current topic of interest in the domestic social dialogue however, continues to be the relationship between wages and pensions against price increments.

• 11 Mar 2009
  Sweden: EIRO annual review 2007 - Sweden

  This year’s collective bargaining round has been a major one, involving over 75% of the employees (approx 3 million). The wage level increases are expected to be substantially higher (2007-2009) than those of the previous period (2004-2006), ending up on an average of 4,6% compared to 3,1%. These wage increases might in the long term increase inflation and hence reduce employment and increase unemployment. Furthermore, if the economy were to weaken, further negative consequences may follow. The new government aims to increase more flexibility on the labour market by several new policies mentioned below, measures which in part already have been implemented.

• 11 Mar 2009
  Lithuania: Lithuania : Eiro annual review – 2007

  Continuing rapid growth of the Lithuanian economy and accompanying rocketing prices as well as shortage of labour force notably influenced industrial relations, too: relations among social partners were changing as was their role in public life; various social movements have become more active.

• 11 Mar 2009
  France: France: Eiro annual review - 2007

  Following the right-wing's election victory, a series of social measures have been adopted, which mark the beginning of very profound changes of the French industrial scene. They concern the labour market, as well as pensions and rules on representativeness, and involve collective Bargaining /Agreements and legislation. Pay and the cost of living are becoming increasingly important issues in public discussions.

• 09 Mar 2009
  EU Countries: Impact of the information and consultation directive on industrial relations

  This comparative report provides a general overview of the steps taken by the 27 EU Member States and Norway to implement the 2002 Directive on informing and consulting employees in the European Community. The extent of the changes required to existing systems of information and consultation and workplace representation has varied considerably between countries. In some countries, the directive has had few, if any, implications, particularly in those with longstanding statutory works council systems; in others, it has prompted only limited amendments. However, in a number of countries, the directive has driven extensive legislative reform, for example in the UK and Ireland, where a ‘voluntarist’ industrial relations tradition predominates, and in many of the new Member States. Moreover, the transposition process has generated intense debate in some countries, in particular on the workforce-size thresholds above which undertakings or establishments are covered by information and consultation requirements, and on the nature of the employee representatives through which information and consultation takes place; the latter focus is a major issue in those countries where trade unions have traditionally been the sole or main representation channel. However, most EIRO national centres report that national measures which give effect to the directive have, as yet, had little or no impact on industrial relations practice in their countries, or that it is too early for their effects to be fully assessed.

• 09 Mar 2009
  France: France: The impact of the information and consultation Directive

• 09 Mar 2009
  Estonia: The impact of the information and consultation directive on industrial relations — Estonia

  The information and consultation directive was transposed into Estonian legislation recently, therefore the subject has been high on the agenda lately. The Directive was transposed by adopting new legislation, the Employee Trustee Act which has caused severe disputes and long discussions between the social partners. At present it is too early to assess the impact of the new Act on industrial relations practice, however the social partners have expressed doubts whether the Act will have any real impact on the industrial relations on company level.

• 09 Mar 2009
  Italy: Italy: The impact of the information and consultation Directive

  Legislative decree no. 25/2007 enacted on 22 March 2007 implemented EU Directive 2002/14/EC and strengthened the information and consultation rights of workers, while also introducing administrative sanctions for breaches of these rights. The decree has filled a legislative gap in an area that in Italy has to date been almost entirely regulated by collective bargaining, which provides for information and consultation on particular issues (such as the use of overtime, restructuring, divestments, mergers or outsourcing) in many sectors. Until now, the law has provided, in a fragmented and limited way, only for information and consultation on matters such as use of wages guarantee funds, collective dismissals, mobility, night work, labour leasing and transfers of undertakings. While decree no. 25/2007 generally and systematically recognises information and consultation rights from a legislative point of view, it also assigns a considerable role to collective bargaining in the exercise and application of these rights.

• 09 Mar 2009
  Norway: The impact of the information and consultation directive on industrial relations — Norway

  The implementation of the information and consultation Directive required new legislation in Norway. However, as similar provisions already existed in collective agreements covering a majority of employees, the directive cannot be said to have had a major influence on industrial relations.

• 09 Mar 2009
  Romania: Romania: The impact of the information and consultation Directive

  The information and consultation Directive was implemented in Romania by Law no. 476/2006, which came into force on 1 January 2007. The legislation introduced, for the first time, a general, statutory system of information and consultation, which must be provided to representatives of trade unions or, where no union is present in the company, representatives elected by employees. Given the recent date of implementation, it is too early to assess the impact on Romanian industrial relations.

• 09 Mar 2009
  Lithuania: Lithuania: The impact of the information and consultation Directive

  Lithuanian legislation on information and consultation of employees was partly shaped by EU Directive 2002/14/EC and was amended in 2005 with the aim of conforming more fully with the Directive. Further amendments are pending. Information and consultation requires the presence in an enterprise of a trade union or, in the absence of a union, a works council. However, such employee representative structures do not exist in most enterprise, making information and consultation impossible.

• 09 Mar 2009
  Malta: The impact of the information and consultation directive on industrial relations — Malta

  The information and consultation Directive was transposed into Maltese law in January 2006. Under the implementing legislation, information and consultation rights are exercised by recognised trade unions or, where these are not present, by specially elected or appointed employee representatives. The main social partners reacted positively to the adoption and implementation of the Directive. From anecdotal evidence it seems that the Directive’s implementation has so far not resulted in major changes.

• 09 Mar 2009
  Slovenia: Slovenia: The impact of the information and consultation Directive

  The Slovenian government took the view that existing legislation already met the requirements of the information and consultation Directive, and that no specific implementation measures were required. However, subsequently it made a number of minor adjustments to the law in the light of the Directive in 2007. Trade unions do not agree that the Slovenian legislation fully meets the Directive’s requirements, while employers take the opposite view. Implementation has not had any significant effects on Slovenian industrial relations.

• 09 Mar 2009
  Denmark: The impact of the information and consultation directive on industrial relations — Denmark

  This comparative report provides a general overview of the steps taken in Denmark to implement the 2002 Directive on informing and consulting employees.

• 09 Mar 2009
  Luxembourg: Luxembourg : The impact of the information and consultation Directive

  At the present time (December 2007), Luxembourg has not yet transposed the information and consultation Directive. Initially, the government wanted to undertake a more global reform of the legislation concerning workers’ representation as part of an overall process of introducing a single status for blue- and white-collar workers, which had already been initiated. As that work has fallen behind, the transposition of the Directive is currently the subject of a bill adding new provisions to the Labour Code. Joint works committees in companies with more than 150 employees already have information and consultation rights equal to those required by the Directive, and the government has opted for a solution which maintains the role of these bodies, while giving new rights to employee committees (an existing employee representation structure in establishments with 15 or more employees) in companies with between 50 and 149 workers. However, according to the Council of State, which has given a negative response, the bill would transpose the Directive in an incomplete manner. The text will probably undergo further modifications.

• 09 Mar 2009
  Belgium: Belgium: the impact of the information and consultation Directive

  At the time of writing, Belgium had not implemented the information and consultation Directive and has been recently convicted for this non-compliance by the European Court of Justice. The reason for the delay was the lack of consensus between the social partners on the matter. The relevance of the Directive to expand the existing statutory rules on workplace representation to small enterprises forms the core of the dispute. However, the Directive was finally implemented in June 2008.

• 09 Mar 2009
  Cyprus: The impact of the information and consultation directive on industrial relations — Cyprus

  The harmonisation of national law with Directive 2002/14/EC was achieved when Law 78(I)/2005 Establishing a General Framework for Informing and Consulting Employees came onto the statute book in July 2005. Although the content of Law 78(I)/2005 was the subject of social dialogue, two years after it was passed there are indications that in practice its implementation is extremely restricted, on the one hand due to the relevant transitional provisions, and on the other due to the social partners’ failure to take forward its practical implementation.

• 09 Mar 2009
  Germany: The impact of the information and consultation directive on industrial relations — Germany

  Successive German governments have shared the opinion that there was no need to transpose Directive 2002/14/EC, since the German legislation on codetermination and in particular the Works Constitution Act (Betriebsverfassungsgesetz) from 1972 (with changes) went beyond the requirements of the Directive concerning information and consultation. This view is shared by the Confederation of German Employers’ Associations (BDA) whereas the Confederation of German Trade Unions (DGB) identifies a number of deficits with regard to the implementation of the Directive, which are in particular related to the limited scope of the Works Constitution Act.

• 09 Mar 2009
  Sweden: The impact of the information and consultation directive on industrial relations — Sweden

  Only minor amendments have been made to national legislation in Sweden to implement Directive 2002/14/EC on information and consultation. The Co-Determination Act already covered many of the elements found in the directive, and the amendments required to the Act were limited. The effects on Swedish industrial relations of implementing the directive have so far been limited. However, some social partners have expressed concern that the implementation approach adopted could increase the administrative workload for companies not bound by collective agreements and at the same time weaken the role of collective agreements.

• 09 Mar 2009
  Austria: The impact of the information and consultation directive on industrial relations — Austria

  By international standards, information and consultation rights provided by Austrian labour law are highly developed. Therefore neither the (then) government nor the major social partner organisations have seen any need to revise the country’s legislation in order to implement Directive 2002/14/EC. Rather, pre-existing labour law is widely considered to cover all aspects of co-determination ruled by the Directive. As a consequence, the Directive has had no impact on industrial relations in Austria.

• 09 Mar 2009
  United Kingdom: UK: The impact of the information and consultation directive on industrial relations

  This comparative report provides a general overview of the steps taken by the UK to implement the 2002 Directive on informing and consulting employees.

• 09 Mar 2009
  Greece: The impact of the information and consultation directive on industrial relations — Greece.

  Experience shows that the statutory framework governing information and consultation in Greece must be strengthened to be more effective. The social partners should also adopt a more cooperative mentality and culture.

• 09 Mar 2009
  Bulgaria: The impact of the information and consultation directive on industrial relations — Bulgaria

  The transposition into Bulgarian legislation of the Directive’s provisions on information and consultation has improved the situation in undertakings regarding information and consultation rights of workers. The view is that this is another tool to enable interaction to take place between workers/employees and employers to the common benefit and to the prosperity of the enterprise. The new rules govening information and consultation move the rights of protections for Bulgarian workers closer to those of workers elsewhere in the EU.

• 09 Mar 2009
  Latvia: Latvia: The impact of the information and consultation Directive

  The main principles of the EU information and consultation Directive were implemented in general terms in labour legislation adopted in Latvia in 2001, with additional rules adopted through amendments in 2004. Implementation caused little debate or controversy among the social partners. In practice, however, information and consultation often does not occur as stipulated by the law, because of low levels of employee representation through trade unions or other channels, and a widespread failure to observe labour legislation.

• 09 Mar 2009
  Finland: The impact of the information and consultation directive on industrial relations — Finland

  On 1 July 2007 a revised Act on Cooperation within Undertakings came into force. The new Act extended the law to workplaces with at least 20 employees. This will bring a further 2,800 enterprises and 66,000 employees approximately within its scope. The scope of application of the Act is also extended to cover all corporations and foundations, irrespective of whether their activities are intended for profit or not, or of who funds them.The reforms also place a greater emphasis on the importance of seeking full consensus in cooperation negotiations. The social partners have mainly welcomed the revision, with the exception of the Federation of Finnish Enterprises(), which represents small and medium-sized enterprises (SMEs), and which has been very critical of the new Act, considering that extending the scope to enterprises with 20 employees will make their operation more difficult.

• 09 Mar 2009
  Slovakia: Slovakia: The impact of the information and consultation Directive

  The Slovak Labour Code already enshrined employees’ rights to information and consultation before national transposition of the EU Directive on the issue. However, this right was limited in practice because only trade unions were considered to act as employee representatives. The implementing legislation provided for works councils as well as trade unions to represent employees in enterprises and at workplaces, with both bodies entitled to information and consultation. Trade unions were unhappy with the introduction of works council, especially where in companies where unions operate, but employers supported the move.

• 09 Mar 2009
  Netherlands: The impact of the information and consultation directive on industrial relations — The Netherlands

  This comparative report provides a general overview of the steps taken in the Netherlands to implement the 2002 Directive on informing and consulting employees. Only every minor changes were required, as Dutch legislation already conformed with the Directive, and indeed exceeded its requirements. The Directive has therefore had virtually no impact.

• 09 Mar 2009
  Czech Republic: Czech Republic: The impact of the information and consultation Directive’

  The information and consultation Directive was implemented by adjusting and widening certain formulations of the relevant provisions of the labour code (amendment), and later in the new labour code (effective from 1 January 2007) which covers this issue in greater detail. Overall, the changes do not represent a fundamental overhaul of existing labour legislation. Not enough time has passed for an assessment of the impact of the new legislation in this area, but as the legislative changes are minor and partial, no fundamental impact is expected.

• 09 Mar 2009
  Spain: Spain: The impact of the information and consultation Directive

  At the time of writing, Spain had not indicated any measures for transposing the Directive into national law by 2005. Due to this delay, the Commission had issued a reasoned opinion against Spain in December 2005. In January 2007 Spanish Government presented a Draft Bill aimed at transposing the Directive, which was issued after an extended period of consultation with the social partners. There is a general opinion among the social partners and the Government about the need to approve a general framework for information and consultation rights for workers. The Bill obtained a positive evaluation from the Economic and Social Council (CES). New legislation was finally enacted in November 2007.

• 09 Mar 2009
  Hungary: Hungary: The impact of the information and consultation Directive

  The main novelty of the new legislation implementing the Directive is that representatives of employers and employees are legally bound to consult with each other in good faith and with a view to reaching agreement. The latter was not a condition for former consultation procedures, with the exception of consultation in case of collective redundancy and transfer of undertakings. The implementing provisions are to be found apart from the rights and obligations of the workers' representatives, and the legislation is therefore rather complicated.

• 09 Mar 2009
  Ireland: The impact of the information and consultation directive on industrial relations — Ireland

  This study examines the impact of the EU information and consultation directive in Ireland as of July 2007. For the first time, having introduced new legislation in July 2006, Ireland has statutory provisions for employee information and consultation rights. Controversially, however, employees have to ‘trigger’ these rights themselves – they are not automatic or guaranteed – an issue that Irish trade unions are unhappy about. To date, very little has happened on the ground aside from a handful of information and consultation agreements.

• 09 Mar 2009
  Poland: Poland: The impact of the information and consultation Directive

  Poland implemented the information and consultation Directive – a year after the transposition deadline - through legislation introducing enterprise-level employee councils. Where trade unions are present in companies, they appoint the new councils, which are otherwise elected by employees. The implementing legislation was largely drafted by the social partners, but the partners showed little enthusiasm for the new institution of employee councils. The legislation is yet to have any significant effect on industrial relations, but trade unions are started to shed their initial reservations and many employee representatives view employee councils as potentially useful.

• 09 Mar 2009
  Portugal: Portugal: The impact of the information and consultation Directive

  Implementation of the information and consultation Directive in Portugal required only minor changes to the existing legislation and seems to have had little effect on industrial relations. Furthermore, transposition took place in the context of a general, highly controversial revision of labour legislation in 2003, and information and consultation issues thus received very little attention

• 02 Mar 2009
  Romania: Social partner unrest in chemical and petrochemical industries

  The global economic crisis is taking its toll on workers in the Romanian chemical and petrochemical industries. Following a wave of collective redundancies announced by several companies, which may affect more than 6,600 employees, the trade unions and employer organisations in these industrial branches have made a number of requests to the authorities. In addition, workers have staged several protests at various plants around the country.

• 02 Mar 2009
  Ireland: National pay deal collapses in midst of economic crisis

  The social partners have failed to achieve a consensus on a range of issues aiming to halt Ireland’s economic slide following a dispute over the government’s new pension levy on all public servants. Meanwhile, the recently agreed national pay deal has been overtaken by the current recession, with the government introducing a public sector pay freeze and private sector employers seeking deferral of pay increases for at least a year.

• 02 Mar 2009
  Romania: Trade unions propose anti-crisis measures

  Romania’s national trade union confederations are apprehensive about the possible effects that the current economic crisis may have on employment opportunities and the purchasing power of employees’ earnings. Before the consultations between the new government and the national trade union confederations, the National Trade Union Confederation ‘Cartel Alfa’ sent an open letter to the government on 11 December 2008 proposing a plan of emergency measures.

• 02 Mar 2009
  Lithuania: Trade unions organise national protest to demand action on economic crisis

  In mid January 2009, three national trade union organisations in Lithuania called on their members to participate in national protest action. The protesters submitted their demands to the government and parliament to ensure that social and economic policies carried out during the current period of recession are geared towards the most disadvantaged groups of the population. A key trade union concern is to address these challenging issues through social dialogue.

• 02 Mar 2009
  Ireland: Major newpaper and media group introduce pay freeze

  The large media company, Independent News and Media, has announced pay cuts for staff in Ireland earning over €40,000. Employees earning less than that amount have been asked to take a pay freeze. The company is seeking the individual consent of each worker, but has ruled out any third-party labour conciliation on the issue, in addition to withdrawing from the main Irish employer organisation. This move has caused some concern, not least among trade unions.

• 02 Mar 2009
  Bulgaria: Increase in information and consultation in multinational firms

  In January 2009, the Institute for Social and Trade Union Research published the results of a survey conducted in multinational companies with subsidiaries in Bulgaria. The survey examines the main trends of industrial relations and working conditions in these companies, and provides an insight into developments with regard to information and consultation practices. These worker rights are slowly being adopted in Bulgarian companies at national and European level.

• 02 Mar 2009
  Norway: Tackling gender inequality by extending paternity leave

  The Norwegian state budget proposal for 2009 made public the government’s intentions to extend the part of the parental leave period reserved for the father from six to 10 weeks from 1 July 2009. The purpose of this extension is to facilitate greater equality between parents with regard to childcare responsibilities in the home. Indeed, further recommendations have suggested that fathers should be entitled to at least one third of the total leave period.

• 02 Mar 2009
  Luxembourg: Public-private project to integrate unemployed people into job market

  The structure of unemployment in Luxembourg has changed insofar as many people experience difficulties in integrating or reintegrating into the labour market regardless of the economic situation. Thus, traditional tools for promoting employment are insufficient; individual support and monitoring are indispensable complementary measures. A pilot project launched in January 2009 aims to evaluate the effectiveness of public-private cooperation in helping jobseekers.

• 02 Mar 2009
  Greece: Workers strike against economic policy and state violence

  In December 2008, public and private sector trade unions called one of the biggest strikes in Greece in recent years. Initially, the strike sought to target the government’s economic policy, which affects the purchasing power of workers and heightens their insecurity for the future. However, following a tragic incident leading to the death of a schoolboy at the hands of a police officer, the strike action also focused on the protection of civil rights against violence.

• 02 Mar 2009
  Norway: Collective agreement signed for engineers in private sector

  In late 2008, the two Norwegian trade unions for engineers concluded a collective agreement with the Confederation of Norwegian Enterprise for members in the private sector. Negotiations became difficult due to disagreement over the rules exempting employees with a ‘particularly autonomous position’ from statutory provisions on working time and overtime compensation. Salary reviews for employees on parental leave and coverage of the working time provisions were also debated.

• 02 Mar 2009
  EU Level: Sick workers get annual leave pay entitlement

  In the landmark cases of Gerhard Schultz-Hoff versus Deutsche Rentenversicherung Bund and of Stringer and others versus Her Majesty’s Revenue and Customs (Cases No. C-350/06 and C-520/06), the European Court of Justice ruled that workers do not lose their right to take paid annual leave just because they have been on long-term sickness absence. The ruling has major implications for workers on long-term sick leave and for the management of these relationships.

• 02 Mar 2009
  Germany: Collective agreement for Deutsche Bahn employees concluded

  At the end of January 2009, after only two weeks of negotiations, the German rail company Deutsche Bahn and the three trade unions representing workers in the railways sector concluded a new collective agreement for engine drivers and other rail workers. The four parties agreed on substantial pay rises, including a lump-sum payment, as well as new working time arrangements for shift workers. The settlement, which came into effect on 1 February, will last for 18 months.

• 02 Mar 2009
  Cyprus: Employers propose measures for dealing with economic crisis

  A series of activities in late 2008 have brought the global financial crisis and its impact on the Cypriot economy to the centre of focus for the Cyprus Employers and Industrialists Federation. The federation believes that the Cypriot economy has slowed down significantly, highlighting notably construction, tourism and manufacturing as the sectors worst affected. Thus, it has proposed measures to assist these sectors. Meanwhile, employers remain concerned about the future.