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August 2009

• 31 Aug 2009
  Slovenia: New temporary waiting for work scheme to combat economic crisis

  On 27 May 2009, the Slovenian parliament adopted a Law on Partial Refund of Pay Compensation (LPRPC), an anti-crisis measure aiming to protect workplaces. The LPRPC states that eligible employers can place up to 50% of their workers on a temporary waiting for work scheme. These workers will not work but they will keep their employment relationship. They will get 85% pay compensation and must devote 20% of the time off to education and training.

• 31 Aug 2009
  Greece: Social partners respond to effects of recession

  The global economic crisis has affected the Greek economy, resulting in increased unemployment rates. According to estimates by international and domestic organisations, unemployment will reach double-digit figures in Greece in 2009. The likely negative social effects of increased unemployment in conjunction with the slowdown in the economy’s growth rate have led to efforts by both the government and the social partners to mitigate the effects of the crisis.

• 31 Aug 2009
  Greece: Mixed reaction to reorganisation of Labour Inspectorate

  The Greek government decided to reorganise the Labour Inspectorate having passed the relevant law in May 2009. The main goal of this intervention is to improve the services of the inspectorate by creating new regional departments and strengthening its workforce. The Economic and Social Council of Greece welcomes the new arrangements aiming to fill existing gaps in services but highlights that they will not be sufficient to improve the inspectorate’s overall operation.

• 31 Aug 2009
  Belgium: New centre left-wing coalition governments in Wallonia and Brussels

  In June 2009, the Belgian regions and communities held elections, following which two new centre left-wing coalition governments were formed in Wallonia and Brussels. The elections were held in a particular context marked by the economic crisis and an increasing deficit, environmental issues and tensions between the two main linguistic communities. Expectations for the new governments and their plans to tackle the crisis situation are extremely high.

• 31 Aug 2009
  Italy: Solidarity contracts agreed at Telecom in place of collective redundancies

  In July 2009, at the Ministry of Labour, Health and Social Policy, Italy’s biggest telecommunications group, Telecom, signed an agreement with the sectoral trade unions, transforming 470 collective redundancies into 1,054 solidarity contracts. This move follows the company’s announcement of its Strategic Plan 2009–2011, providing for 4,000 redundancies. The trade unions welcome the agreement and the company’s effort to save jobs at a difficult economic time.

• 31 Aug 2009
  Finland: Trade union support for sexual and gender minorities

  The Central Organisation of Finnish Trade Unions (SAK) has launched a special campaign to improve the status of sexual and gender minorities at work and in the trade union movement. SAK’s open declaration of support for gender minorities is a new departure for the Finnish trade union movement. The organisation highlights that an equitable workplace can lead to better job satisfaction and higher productivity.

• 31 Aug 2009
  Germany: Low rate of entrepreneurship reported

  In June 2009, new research was published on entrepreneurial activity in Germany. As the Global Entrepreneurship Monitor shows, Germany still has a low rate of business start-ups. Although starting a business can be a viable alternative to dependent employment and helps to create new jobs, many Germans are reluctant to go into business for fear of failure or due to lack of the knowledge required. Both employers and trade unions support different programmes linking schools and companies.

• 31 Aug 2009
  Luxembourg: Trade unions demonstrate against dismantling of social security system

  In May 2009, seven Luxembourg trade unions joined forces to organise a general demonstration in protest against the threat of the dismantlement of the social security system. The protest was attended by some 16,000 people. The demonstration’s organisation on the eve of the country’s parliamentary elections on 7 June 2009 was intended as a sign to the political parties, which were invited to come out in clear favour of maintaining Luxembourg’s social model.

• 31 Aug 2009
  Finland: Trade unions propose holiday bank for temporary workers

  Trade unions have presented the idea of a holiday bank for workers on a temporary employment contract. The bank would secure the worker’s leave when changing jobs or when the employment contract expires. Leave accrued in one job would follow a worker into another. However, the Confederation of Finnish Industries has rejected the proposal of a holiday bank, stating that implementing the idea would be too expensive.

• 31 Aug 2009
  Austria: Parliament passes labour market stimulation package

  In July 2009, the Austrian parliament passed a package of measures seeking to prevent a rise in unemployment as a result of the current economic recession. The measures include a further extension of the short-time working rules, flexibilisation of part-time working rules for older employees and the training leave regulation, as well as the establishment of a re-employment scheme for young employees. The social partners have generally welcomed the initiative.

• 31 Aug 2009
  Luxembourg: Interprofessional agreement on harassment and violence at work

  In June 2009, the Independent Trade Union Confederation of Luxembourg, the Luxembourg Christian Trade Union Confederation and the Union of Luxembourg Enterprises signed an interprofessional agreement on harassment and violence at work. The agreement aims to transpose into Luxembourg law the European framework agreement on harassment and violence at work concluded by the European social partners on 26 April 2007.

• 31 Aug 2009
  United Kingdom: Government brings forward review of default retirement age

  The default retirement age (DRA) in the United Kingdom is 65 years. Various campaign groups have argued its merits and demerits. It allows companies and individuals to plan better for their exit from employment. However, forcing workers to retire seems to contradict the principle of non-discrimination and deprives the economy of older workers’ skills. The government had stated that it would review the DRA in 2011, but it has now brought this review forward to 2010.

• 19 Aug 2009
  Czech Republic: Social partners take joint action to tackle economic crisis

  On 11 February 2009, representatives of the largest national trade union organisation and the leading employer organisations held a meeting in Prague to develop measures toreduce the impact of the economic crisis on the Czech economy. The social partners jointly urged the government to fully involve them in developing measures to cope with the crisis. Moreover, they called on the government to support actions taken by the EU and start to implement them immediately.

• 19 Aug 2009
  Germany: Interim report on 2009 bargaining round

  In June 2009, the Institute of Economic and Social Research presented its interim report on Germany’s 2009 round of collective bargaining. The study evaluates the collective agreements concluded in the first half of 2009, affecting about 25% of all employees covered by such agreements. Calculated on an annual basis, the average increase in wages and salaries will amount to about 3% in 2009, which is slightly above the average pay increase of 2.9% in 2008.

• 19 Aug 2009
  France: Intersectoral agreement lays basis for training system reform

  On 7 January 2009, the French social partners signed a national intersectoral agreement on the development of training throughout the working life, professionalisation and securing career paths. The agreement reforms yet again the French vocational training system, focusing on aspects such as equality and effectiveness. It aims to help workers develop their skills while also addressing the issues of competitiveness and labour shortages in certain economic sectors.

• 19 Aug 2009
  Malta: Trade union density in Malta from 1953 to 2008

  In Malta, trade union density measurements are based on the total number of reported trade union members as a proportion of the labour force. To develop a more accurate measure of trade union density, it is necessary to account for those workers who are members of trade unions and those who could become members of trade unions while excluding those wage earners who, by law or the conditions of military discipline, could not join a trade union.

• 19 Aug 2009
  Italy: Trade unions propose health and safety measures for earthquake reconstruction work

  In July 2009, trade unions in the construction and woodworking sector approved a list of proposals for guaranteeing adequate health and safety at the workplace. In the same month, the trade unions signed a document containing proposals for reconstructing the earthquake-stricken Abruzzo region in central-eastern Italy with respect to health and safety norms, regulations and guaranteeing the transparency of operations. The document underlines the need to ensure that the reconstruction work is only assigned to companies that respect these parameters.

• 19 Aug 2009
  Norway: Regional health and safety officers set for cleaning industry and hotels and restaurants

  A proposal to introduce regional health and safety officers in the cleaning industry as well as the hotels and restaurant sector was issued for consultation by the Norwegian Ministry of Labour and Social Inclusion in June 2009. The system of regional health and safety officers has so far only existed in the construction sector. It is regarded as an important mechanism for combating health and safety violations and for stemming the expansion of the informal labour market.

• 19 Aug 2009
  Austria: ÖGB general congress adopts new policy programme

  At its general congress held in June–July 2009, the Austrian Trade Union Federation (ÖGB) continued an internal restructuring process initiated in 2007 and approved a new policy programme. The programme contains a range of proposals of how to tackle the current economic crisis and secure the welfare state; it also includes demands in this regard aimed at policymakers. In the run-up to the congress, a union merger of two ÖGB affiliates took place.

• 12 Aug 2009
  Lithuania: Trade union hunger strike averts public sector pay cut

  The effects of the global economic crisis are increasingly being felt in Lithuania. To cope with its impact, the government announced that it was going to reduce the basic monthly salary of public sector employees to help lessen state budget expenditure. Dissatisfied with such a decision, the Lithuanian Trade Union Confederation initiated a hunger strike initiative, which was stopped a day later when the government promised to find other ways of reducing state spending.

• 12 Aug 2009
  Latvia: Wide-scale cuts in salaries and social benefits

  After long discussions between the Latvian government and social partners, a number of new regulations concerning the amount of salaries, pensions and social benefits have come into effect. The tax free allowance has been reduced, together with pensions and expenditure on social benefits. The amendments are expected to lead to significant social consequences, with a decline in purchasing power, poorer working conditions and a slowdown in the national economy.

• 12 Aug 2009
  Greece: More workers occupying premises as form of protest

  During the period from December 2008 to February 2009, a special form of social reaction emerged in Greece. More specifically, the practice of occupying premises and facilities by employees and groups of employees or private sector trade unions came to the forefront concerning industrial relations in the cleaning sector. The protests were sparked by a vicious attack on a contract cleaner, and highlight breaches of labour law and poor working conditions.

• 12 Aug 2009
  Ireland: Employer survey reveals pay freezes in majority of companies

  A detailed survey of members of the Irish Business and Employers Confederation shows that, while marginally more employers have increased pay for production workers compared with those who have cut wages, a majority of companies have decided to freeze wage rates. Meanwhile, some employers plan to introduce changes to other employment conditions over the next three to six months, while others wish to change the pay structure for new recruits.

• 12 Aug 2009
  Sweden: Pressure on wage negotiations due to economic crisis

  Prior to the collective bargaining rounds for 2010, Sweden’s largest employer organisations are arguing for zero salary increases, due to the global economic crisis. Trade union representatives contend that the employer organisations are using the economic situation as an excuse to cut salaries. Preparations for the 2010 wage negotiations have already started. About 500 out of a total of 600 central agreements are to be settled in the bargaining rounds.

• 12 Aug 2009
  Czech Republic: Czech Airlines cuts wages in preference to dismissals

  The national air carrier Czech Airlines intended to dismiss up to 200 people if employees did not accept a wage cut. The company has already informed the Labour Office about potential mass redundancies. At present, Czech Airlines employs about 4,700 people and, based on the information of the Czech News Agency, the average monthly wage across the company amounts to CZK 59,000 (about € 2,311). However, pilots have finally agreed to a 6.5% wage cut in order to save jobs.

• 12 Aug 2009
  France: Report on pay gap and distribution of added value and profits in France

  On 13 May 2009, the director general of the National Institute of Statistics and Economic Studies submitted a report on the distribution of added value and profits as well as on the pay gap in France to the French President, Nicolas Sarkozy. The trade union and employer organisations reacted rather positively to the report, albeit their differing analyses in relation to its findings. President Sarkozy has given the trade unions and employers until 15 July to submit proposals for reform.

• 10 Aug 2009
  United Kingdom: Strike hits London Underground

  In June 2009, a 48-hour strike disrupted the London Underground, the underground rail system that serves the United Kingdom’s capital city. The National Union of Rail, Maritime and Transport Workers called the strike after pay talks between the trade union and London Underground broke down. The protest was condemned by employer groups, passengers and the UK government. The transport sector is characterised by high rates of industrial action.

• 10 Aug 2009
  Estonia: New labour law enacted despite strike initiative

  In June 2009, Estonian trade unions held a strike involving about 1,800 people to protest against the new Employment Contracts Act, which took effect on 1 July 2009. The trade unions were opposing the last-minute changes that were introduced to the act just before it took effect, which they claim will reduce the balance between employment security and labour market flexibility. For the unions, this balance was the essential purpose of the new act.

• 10 Aug 2009
  United Kingdom: British Airways seeks to cut staff costs

  Faced with massive financial losses, in July 2009 British Airways sought major cuts in its personnel costs. It has reached a cost-reduction agreement with pilots but negotiations with trade unions representing other staff have so far failed to produce a similar deal. The company has also asked employees to work without pay for a period, take unpaid leave or switch to part-time work.

• 10 Aug 2009
  Czech Republic: Social partners disagree over reform of research and development funding

  The Czech-Moravian Confederation of Trade Unions and the Confederation of Industry of the Czech Republic take different views on the planned financial reform of state-funded research and development. This reform will mostly affect the Academy of Sciences of the Czech Republic and its employees. Substantial cutbacks are envisaged due to the current economic crisis. However, more funds will be allocated to applied research with a direct impact on manufacturing.

• 10 Aug 2009
  Germany: New agreement after brief bargaining round in retail sector

  In June 2009, the bargaining parties of the North Rhine-Westphalian retail trade sector concluded a collective agreement that serves as a pilot agreement for other bargaining regions in German retail. The wage accord runs for 24 months and contains no opening clauses. After a four-month pay freeze, it provides for wage increases of 2% from 1 September 2009 and 1.5% from September 2010. Additional one-off payments are to be made in 2010 and 2011.

• 10 Aug 2009
  Poland: Trade unions threaten to abandon tripartite dialogue

  Poland’s trade unions and employer organisations signed a package of measures to combat the economic crisis in March 2009. The package was subsequently presented in the form of two draft bills, which provide for the implementation of some of the measures proposed by the social partners. However, the trade unions argue that the bills ignore the compromise that they had reached with the employers, and are threatening to end their participation in tripartite dialogue.

• 10 Aug 2009
  Italy: Agreement reached to maintain competitiveness of FS Group

  On 16 May 2009, the transport trade unions and the FS Group signed an agreement to relaunch the competitiveness of the group’s enterprises. The agreement provides for the restructuring of the group, including the initiation of a three-year process of ‘reinternalisation’ of activities linked to the maintenance of tracks and infrastructure, the introduction of single-engine drivers and 900 new jobs before the end of 2009. The income support fund for the group will also be reorganised.

• 10 Aug 2009
  Romania: Employers dissatisfied with progress of anti-crisis measures

  In July 2009, the Romanian government met to examine the status of the measures taken in the first half of 2009 to combat the economic crisis, reporting that 28 of the 32 actions agreed with the social partners had been fulfilled. However, when leaders of employer organisations met with the prime minister, they argued that the government’s anti-crisis measures were insufficient and made counter-proposals primarily based on seeking an injection of investment funds.

• 10 Aug 2009
  Romania: Trade unions address crisis in Jiu Valley mining area

  In June 2009, the National Trade Union Bloc and the Mining Trade Unions League of the Jiu Valley met the stakeholders of the Jiu Valley mining area to agree on actions and programmes aiming to improve the socioeconomic prospects of an economic sector in severe crisis. The talks ended with the appointment of a committee charged with finding development solutions through programmes, with the help of financial support from the European Social Fund.

• 10 Aug 2009
  United Kingdom: Recession causing employers to modify employment practices

  A new survey of workplace trends was published in June 2009 by the Confederation of British Industry and recruitment consultants Harvey Nash. The survey indicates that a significant number of employers have made or are considering making changes to their policies in the areas of pay, organisation of working time, recruitment, training and relocation, in response to the current economic crisis.

• 10 Aug 2009
  Romania: Trade unions lodge complaint with ILO against government

  In April 2009, the Romanian government issued an emergency ordinance stipulating the removal of public servants from management positions in independent agencies, such as the Labour Inspection Office, as well as the appointment of persons nominated by the national or local governments. The National Trade Union Confederation Cartel Alfa subsequently lodged a complaint with the International Labour Organization (ILO) regarding a breach of ILO Convention No. 81 of 1947.

• 10 Aug 2009
  France: Prospects of change following intense social mobilisations

  In May 2009, following a call by eight trade union organisations, thousands of demonstrators came together in major French towns or took different forms of action in companies to call for measures to promote employment and income. The trade unions called on the employers to assume their responsibilities and commence bargaining on issues such as safeguarding jobs, improving the distribution of added value and profits, and promoting young people’s employment.

• 06 Aug 2009
  Finland: New national conciliator appointed after lengthy process

  The long and complicated search for Finland’s next national conciliator came to an end when the Minister of Labour announced that the social partner organisations had finally decided to nominate Esa Lonka, a current district conciliator. Mr Lonka was put forward as the nominee, after the trade union confederations’ own candidates failed to secure the support of all three trade union organisations.

• 05 Aug 2009
  Slovakia: Further changes to extension of collective agreements

  Since 2007, Slovakia has applied a new mechanism for extending multi-employer collective agreements. Employers object to extensions that impose collective agreements on them without their consent. They lobbied members of the political opposition, who applied for a decree of the Constitutional Court on the matter. The government has prepared a new proposal to amend the present mechanism of extensions, in consultation with the International Labour Organization.

• 05 Aug 2009
  France: Improvements in partial unemployment allowances

  In mid April 2009, during negotiations on unemployment benefit issues, the social partners in France accepted the roll-out of a reduced working hours allowance put forward by the government. The allowance supplements the contractual partial unemployment benefit, which was amended in December 2008, under certain conditions. The agreement received a mixed response from the social partners, with the General Confederation of Labour the only trade union not to sign it.

• 05 Aug 2009
  Denmark: Cross-border cooperation at company level in banking sector

  New forms of cross-border cooperation have developed at company level in the banking sector as a response to the free movement of capital, the common currency, and mergers and acquisitions of banks across Europe. A new study on the experiences of Danish multinational banks and their European affiliates in this regard reveals that some banks and trade unions have signed cross-border agreements and texts, as well as set-up different arbitration systems to handle potential company-level disputes.

• 05 Aug 2009
  Latvia: Latvian parliament passes amendments to 2009 state budget

  On 16 June 2009, the Latvian parliament passed emergency amendments to the 2009 state budget. The amendments envisage considerable decreases in expenses in important socioeconomic sectors, including education, health and security. Moreover, the changes affect the social arena, with reductions in pension expenses and social benefits. On 18 June, the Free Trade Union Confederation of Latvia organised a demonstration protesting against these amendments.

• 05 Aug 2009
  Luxembourg: Trade unions agree progressive redundancy programme at Villeroy & Boch

  After a 240-year presence in Luxembourg City’s industrial landscape, the announcement by the Villeroy & Boch ceramics company of the termination of its production activities in Luxembourg has provoked astonishment. The two production lines in Luxembourg will cease activity by the end of June 2010. Amid fears of immediate mass redundancies, the company reiterated its promise not to dismiss anyone before 2010 and to negotiate a job retention plan in a relaxed atmosphere.

• 05 Aug 2009
  Belgium: Study reveals increasing pay gap

  A study by the University of Brussels showed that the wage gap between the lowest and highest earners has increased in the past 10 years. The pay gap between average workers in different sectors could rise to 150%, while a gender wage gap is also prominent. The Belgian General Federation of Labour considers these inequalities a cause of the financial crisis and calls for a profound reform of the fiscal system.

• 05 Aug 2009
  Italy: Ministry issues White Paper on future welfare reforms

  In May 2009, the Italian Minister of Labour, Health and Social Policy presented a White Paper, outlining the welfare initiatives that the current government intend to introduce when the economic crisis is resolved. The paper highlighted current shortcomings and underlined the fundamental values on which the reforms must be based. Its contents generated a mixed response from the trade unions.

• 05 Aug 2009
  Romania: Social partners call for concerted action on Global Jobs Pact

  In June 2009, trade union confederations and employer organisations at national level called on the government to join efforts for implementing the ‘Global Jobs Pact’, in order to counteract the effects of the global economic crisis. Most of the trade unions and employers hold the common view that openness to social dialogue with the aim of finding the best ways to maintain and create jobs would enable Romania to contribute to the success of the pact.

• 05 Aug 2009
  United Kingdom: New framework for workplace dispute resolution

  The Employment Act 2008 introduced new measures, which came into effect in April 2009, designed to encourage a more practical, less legalistic approach to dispute resolution at the workplace. The move has been broadly welcomed by employer organisations and trade unions, although some unions are concerned about the possible undermining of standards of procedural fairness.

• 05 Aug 2009
  Luxembourg: Luxembourg’s trade unions call for companies to display social responsibility

  Although the Luxembourg Economic and Social Council is advocating dialogue as the way out of the current economic crisis, relations between the trade unions and employer organisations are deteriorating. Meanwhile, the Tripartite Coordination Committee has produced a series of measures to tackle the crisis. The trade unions, however, are opposed to the more structural measures proposed by the employers and fear that the social dimension is being omitted from the debate.

• 05 Aug 2009
  Portugal: Access to social benefit extended for unemployed people

  In May 2009, the Council of Ministers approved a decree to extend access to social benefit for unemployed people, in order to cope with the sharp rise in unemployment as a result of the current economic crisis. The social benefit for unemployed people was established to provide them with a level of income that would enable them to survive. With the new rules in place, about 15,000 additional unemployed persons will be eligible to receive social benefit.

• 05 Aug 2009
  United Kingdom: Employers propose ‘alternative to redundancy’ scheme

  In July 2009, the main UK employer organisation urged the government to introduce an innovative ‘alternative to redundancy’ scheme. Under this scheme, surplus employees could be placed on long-term leave, which is jointly financed by the employer and the state, and return to work if their employer’s business picks up again. Trade unions were sceptical about the proposed plan.