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December 2009

• 17 Dec 2009
  EU Level: ArcelorMittal and EMF sign European framework agreement

  In early November 2009, the management of ArcelorMittal and the European Metalworkers’ Federation signed a European framework agreement on the management and anticipation of change at ArcelorMittal. The agreement places social dialogue as a lever for the anticipation of change and contains commitments to maintain facilities and safeguard employment levels.

• 17 Dec 2009
  Finland: Healthcare union advises caution when recruiting nurses from abroad

  The Finnish public healthcare sector is currently suffering from an acute shortage of nurses. It is therefore likely that the immigration of nurses will significantly increase in the future. The Union of Health and Social Care Professionals has put forward principles concerning the recruitment of nursing staff from abroad. The union wishes that foreign healthcare workers will be informed about the terms and conditions of employment before arriving in Finland.

• 17 Dec 2009
  Cyprus: New agreement for Cyprus Airways pilots

  In mid September 2009, agreement was reached on renewing the collective agreement for pilots employed by Cyprus Airways. In relation to pay, the increases granted are in keeping with the agreements reached between the company and other trade unions active in the civil aviation sector. Regarding non-pay elements, a principled agreement has been reached on issues over which the ongoing dispute between management and pilots led to a bargaining deadlock.

• 17 Dec 2009
  Estonia: Healthcare workers protest against cuts in spending

  In October 2009, two trade unions representing healthcare workers held a small demonstration in protest against government plans to cut healthcare spending. The cuts will prolong hospital waiting lists and reduce the salaries of doctors and healthcare workers. The trade unions argue that this will cause another wave of migration of healthcare workers to other countries; however, the employers have approved of the proposal.

• 17 Dec 2009
  Poland: Trade unions challenge government privatisation plans

  Government policy in the area of privatisation is causing increasing discontent among trade unions, who believe that the government has decided to accelerate privatisation at the cost of social dialogue. The lack of consultation and negotiation often leads to disputes in companies that undergo privatisation processes. Furthermore, the trade unions argue that it does not make economic sense to sell state-owned companies during the current recession.

• 17 Dec 2009
  Spain: Crisis and uncertainty in automotive sector

  Rising uncertainty surrounding the future of the automotive sector in Spain comes at a time when the current economic and financial crisis is having an uneven effect, depending on companies’ strategy in the sector and the dealings of the public administrations. Motor companies Nissan in Catelonia and Opel in Aragon are faced with restructuring plans, resulting in the dismissal of workers. In the case of Opel, the restructuring involves plants in other European countries.

• 17 Dec 2009
  EU Level: Tripartite Social Summit discusses responses to economic crisis

  At their autumn Tripartite Social Summit, the social partners focused their attention on the key issues related to the economic and social situation in Europe. The main concerns raised were about the nature of economic recovery, the continued risk to jobs, the posted workers directive and the need for regulation of the financial services sector. According to Commission President Barroso, employment and social protection measures will play a key role in the EU 2020 strategy.

• 17 Dec 2009
  Czech Republic: Trade unions push for limited opening hours at Christmas

  In October 2009, trade unions in the Czech Republic appealed to chain stores to limit opening hours of their shops during Christmas this year. For example, they called on shops to remain open on Christmas Eve until 14.00 at the latest. In 2008, some hypermarkets closed on Christmas Eve only several hours later, mostly between 16.00 and 17.00. According to the unions, shops should remain closed on 25 December and should not reopen sooner than 26 December 2009.

• 17 Dec 2009
  Malta: Employers protest against mandatory cost of living allowance

  In their protests about the mandatory wage increase to be announced as part of the budget for 2010, the employer organisations have called for a review of how this increase is to be given to workers. In response, the government and trade unions were uncompromising, thus rejecting the employers’ demands. The issue is due to be discussed at the Malta Council for Economic and Social Development.

• 17 Dec 2009
  United Kingdom: Conservative Party seeks new UK opt-out from EU employment legislation

  In November 2009, the opposition Conservative Party announced a new policy towards the EU following the ratification of the Lisbon Treaty. Among other things, a Conservative government would seek the reintroduction of a United Kingdom opt-out from EU employment legislation and a ‘complete opt-out’ from the Charter of Fundamental Rights. Reaction from business groups was mixed, while trade unions saw the party’s objectives as ‘undeliverable’.

• 17 Dec 2009
  Sweden: Government proposes post-Laval legislation

  The Swedish government has proposed a new law on a reformed labour market that limits the possibility for industrial action against foreign employers. The reforms are seen as necessary because of the implications of the European Court of Justice ruling in the Laval case. The proposal was preceded by an inquiry and a lengthy period of discussion between stakeholders. Despite this, the government has not taken criticism into account, and its bill is thus similar to the inquiry.

• 17 Dec 2009
  Bulgaria: Strike action resolved through agreements

  During September and October 2009, social tension has increased in two companies in Bulgaria’s public and private sectors. In the state-owned National Railway Infrastructure Company and in the private paper and paper products enterprise Kostenetz AD, workers have not received their wages since August 2009. In light of this, the trade unions began to prepare for strike action, but negotiations with the employers ended successfully and strike agreements were signed.

• 17 Dec 2009
  Germany: Coalition deal gets mixed reactions from social partners

  In October 2009, the Christian Democratic Party and Liberal Democratic Party reached a deal to form a new government in Germany. The coalition agreement includes some tax relief for companies and families, and rules out introducing a statutory minimum wage. It also includes provisions for a partial uncoupling of employer and employee health insurance contributions. Employers welcomed the agreement, whereas trade unions criticised plans for wealth redistribution.

• 17 Dec 2009
  Malta: Survey examines private sector trade union coverage over 13-year period

  An independent study examines the evolution of trade unions in the Maltese private sector between 1995 and 2008, according to collective agreement coverage. The coverage of collective agreements in the sector decreased by 6.2%, while the number of collective agreements in force fell from 212 in 1995 to 168 in 2008. Only about a quarter of full-time employees in the private sector were covered by a collective agreement in 2008, down from about a third 13 years before.

• 17 Dec 2009
  Poland: Uncertain future of shipyards sparks controversy

  With hopes fading of a foreign investor taking over the maritime shipyards in the northern cities of Gdynia and Szczecin, the prospects for the two companies – and for the numerous enterprises cooperating with them – appear to be bleak. The issue of rescuing what remains of the two shipyards is currently the subject of a bitter political battle between the government and the opposition parties, who are blaming each other for the collapse of the shipyards.

• 17 Dec 2009
  Netherlands: Social partners divided over government plan to raise retirement age

  The social partners have given a divided response to the Dutch cabinet’s plans to raise the retirement age – first to 66 years in 2020 and then to 67 years in 2025. This also applies to the age at which company pension schemes will be paid out. The trade unions argue that poorly paid workers who carry out heavy tasks will be unjustly burdened by these measures. Employer representatives, on the other hand, are satisfied with the proposed cutbacks on company pension schemes.

• 17 Dec 2009
  Greece: INE/GSEE presents economic and employment outlook for 2009

  In September 2009, the Institute of Labour of the Greek General Confederation of Labour published its annual report on the Greek economy and employment. The report examines key developments in the economy, including industrial relations, social policy and employment. The 2009 report reveals increases in indirect taxes, average real wages, working hours and unemployment. Moreover, more women than men are unemployed or work part time.

• 17 Dec 2009
  Germany: New collectively agreed minimum wage for industrial cleaners

  In October 2009, following 10 days of strike action, the bargaining parties in the industrial cleaning sector reached a new collective agreement on pay. The agreement covers some 860,000 workers. It provides for general pay increases in January 2010 and 2011, resulting in minimum hourly wage rates of €8.55 in western Germany and €7.00 in eastern Germany. Both parties want the government to extend these agreed minimum wage rates to all employers in the sector.

• 17 Dec 2009
  Germany: Employers view apprenticeship pact positively despite crisis

  In October 2009, commenting on the pact on apprenticeships, the Federal Employment Agency issued data showing that at the end of September 2009 unfilled vocational training positions outnumbered unplaced applicants. While employers welcomed these results, the German Confederation of Trade Unions (DGB) criticised the pact’s shortcomings. DGB highlighted that too many young adults aged 20–29 years had still not successfully completed a vocational training programme.

• 04 Dec 2009
  EU Countries: Greening the European economy: Responses and initiatives by Member States and social partners

  This report examines the responses, initiatives and activities undertaken by national governments and the social partners in the EU Member States plus Norway in working towards a greener economy and maximising the job creation potential of this new area. The report looks specifically at various measures undertaken by governments with a view to stimulating the economy in the current context of the global economic crisis. It also charts the growing awareness of the importance of reducing carbon dioxide emissions and developing alternative energy sources, showing that both governments and social partners in most countries in this study are active in trying to promote the ‘green agenda’.The scope of such initiatives includes renewable energy production (including tidal, solar and wind power), energy efficiency, sustainable transport, water supply, waste management and sustainable agriculture. The report also aims to identify particularly interesting and successful initiatives that can be shared and disseminated as good practice examples.

• 02 Dec 2009
  Austria: New basic social security cover postponed till 2010

  In the summer of 2009, Austria’s current coalition government announced a delayed introduction of a ‘needs-oriented basic cover’ scheme for September 2010. Moreover, it agreed that a minimum gross income of €772.40, which will be revaluated annually, will be payable on behalf of impoverished people only 12 instead of the initially planned 14 times a year. This downgrading of the scheme has unleashed harsh criticism from trade unions and social welfare organisations.

• 02 Dec 2009
  Cyprus: Tripartite statement on reducing accidents in construction sector

  A tripartite consultation has taken place regarding the increase in workplace accidents in the economy as a whole and particularly in the construction sector. In September 2009, within the framework of this consultation, the social partners issued a joint policy statement aiming to reduce workplace accidents and occupational illnesses in the construction industry. Training measures and tougher criteria for obtaining work and work licences are among the proposals.

• 02 Dec 2009
  Lithuania: Unions organise protest actions against cuts in public sector pay

  On 1 October 2009, four sectoral trade unions and the Pensioners’ Party simultaneously launched five protest actions near the parliament and four government ministries. The protests arose due to dissatisfaction with current government policy seeking to match budget revenue with expenditure, which will result in significant salary cuts for public sector employees and a possible reduction in social welfare benefits.

• 02 Dec 2009
  Belgium: Social partners react strongly to state austerity measures

  Trade unions and employer organisations have reacted strongly to the harsh austerity measures facing the Belgian federal state, voicing opinions on where to implement the cost-cutting measures. The employer organisations propose cuts in the civil service, while fiercely opposing the introduction of new taxes. Trade unions, on the other hand, strongly defend the social security budget and have put forward a wide range of alternative proposals.

• 02 Dec 2009
  Germany: Companies strive to maintain employment in economic crisis

  The manufacturing sector in Germany has been more severely affected by the economic crisis than banking, where the crisis began. Nonetheless, only few companies adversely affected have laid off workers, with most companies freezing recruitment plans and introducing cost-cutting programmes instead. Efforts to avoid dismissals are also reflected in the fact that about one in five companies have introduced short-time working or temporarily cut wages or working hours.

• 02 Dec 2009
  Estonia: Unions fear new regulations may lead to redundancy cover-ups

  Since July 2009, the new labour law has introduced changes in the regulation of redundancies. The Estonian Trade Union Confederation fears that problems may emerge as the new regulation could lead to redundancy cover-ups, while the Estonian Unemployment Insurance Fund does not believe that this is a major issue within the framework of the new act. However, problems may arise regarding whether employees and employers are well informed of their rights and obligations.

• 02 Dec 2009
  United Kingdom: Strikes at Royal Mail called off as negotiations continue

  In October 2009, postal workers at Royal Mail voted to take nationwide industrial action, escalating an ongoing dispute over working conditions and modernisation. Four 24-hour stoppages took place before talks between Royal Mail and the Communication Workers’ Union produced an interim agreement. Under the agreement, no further strikes are to take place during negotiations on a longer-term deal to enable the agreed implementation of further modernisation from early 2010.

• 02 Dec 2009
  Ireland: New study examines persistence of gender pay gap

  In September 2009, the Equality Authority and the Economic and Social Research Institute issued a report on the gender pay gap in Ireland in 2003. It revealed an unadjusted gap between men’s and women’s hourly wages of 22%, which is mostly due to gender differences in observable characteristics, such as education levels, labour market experience, job and company characteristics. However, when accounting for such factors, the remaining unexplained gap was nearly 8%.

• 02 Dec 2009
  Poland: Mixed reaction to anti-crisis legislation

  In July 2009, the Polish parliament adopted an anti-crisis legislative package. While the package follows the general direction set out by the bipartite agreement reached by the social partners in March, some of the original concepts provided by the agreement have been omitted in the legislation. The social partners seem moderately satisfied with the outcome, while public reaction to the regulations was mixed.

• 02 Dec 2009
  Germany: General election results fuel debate between social partners

  The federal elections held on 27 September 2009 brought to an end the previous coalition government between the conservatives and social democrats. The conservatives, who remain the largest group in parliament, have formed a new centre-right coalition government with the liberals. The latter have called for fundamental reforms, such as tax cuts and higher thresholds for employment protection. The social partners are divided about the election outcome.

• 02 Dec 2009
  Bulgaria: ESC conference debates EU anti-crisis policies

  In early October 2009, the joint conference of the Economic and Social Council of Bulgaria and the European Economic and Social Committee was held in Sofia. More than 170 participants representing the parliament, the government, state authorities, the academic sphere, employers, employees and civil society organisations discussed the current economic and financial crisis and its consequences for labour markets in Europe.

• 02 Dec 2009
  France: New law promotes job mobility of civil servants

  A law adopted in July 2009 promotes occupational mobility in the civil service by consolidating possibilities of secondment, outplacement and integration of civil servants in jobs unrelated to their previous position. It also increases possibilities to combine part-time jobs, use temporary agency staff, as well as recruit employees under private law employment contracts. Trade unions have denounced this process of rendering public jobs more flexible.

• 02 Dec 2009
  Poland: Dispute at LOT Polish Airlines ends in agreement

  The crisis at LOT Polish Airlines (PLL LOT) is not surprising, given the financial problems that are currently affecting other airline carriers. Similar to the management of other airlines, PLL LOT’s management has decided to cut costs and reduce employment. The staff’s lack of support for the chief executive has increased the tensions caused by the restructuring plans. However, the animosity was overcome and an agreement ended the dispute in October 2009.

• 02 Dec 2009
  Sweden: Swedish government unveils measures to fight unemployment

  In August 2009, the government announced parts of its employment policy programme for 2010 and 2011. The planned measures comprise an investment of about €810 million in educational programmes and vocational training courses, as well as labour market activation measures for unemployed people. The trade unions have criticised the measures for being insufficient to combat the expected high unemployment rates due to the recession in the coming years.

• 02 Dec 2009
  Cyprus: Unions seek measures to combat unemployment in construction

  Between April and September 2009, unemployment has increased dramatically in the construction sector. Trade unions in the sector believe that unemployment may rise even further during the winter months. In this context, workers see it as imperative to introduce targeted measures both in the short and in the long term to combat unemployment. The trade unions agree on speeding up the development budget and how to address illegal and undeclared employment in the sector.

• 02 Dec 2009
  France: Parliament adopts report on executive pay in bid to curb abuse

  In July 2009, the parliamentary Committee on constitutional laws, legislation and general administration of the French state adopted a report on the remuneration of leading company board members and managing directors, as well as traders in the financial services sector. The report put forward 16 proposals with the aim of ending abuses in relation to executive pay and increasing transparency regarding remuneration by establishing legal rules.

• 02 Dec 2009
  France: Complementary health and social protection guaranteed during unemployment

  An additional clause to the national intersectoral agreement on modernising the labour market came into force in July 2009. It provides for maintaining, for a maximum period of nine months, the benefit of complementary health and social protection guarantees that were applied in the company the unemployed person last worked for. The social partners welcomed the additional clause, particularly the concept of funding the prolongation through a system of mutualisation.

• 02 Dec 2009
  United Kingdom: Legal challenge to UK retirement age fails

  In September 2009, the High Court ruled that the UK’s default retirement age of 65 years is lawful. This follows the European Court of Justice ruling in March that the EU equal treatment framework directive did not preclude such a measure but that the UK’s default retirement age had to be justifiable in terms of a legitimate labour market policy objective. However, the High Court indicated that the default retirement age should be abolished or raised following a review by the government in 2010.

• 02 Dec 2009
  Bulgaria: Cooperation agreement signed between trade unions and labour inspectorate

  On 7 October 2009, on the occasion of the World Day for Decent Work, representatives of the trade union confederations, the Ministry of Labour and Social Policy and the General Labour Inspectorate (GLI-EA) discussed at a meeting the new realities posed by the economic crisis. In light of a growing informal economy and continuing violations of labour law, the trade unions and GLI-EA signed a cooperation agreement seeking to better protect, enhance and enforce workers’ rights.

• 02 Dec 2009
  France: New law to improve regional healthcare system and patient care

  The law on reforming the regional healthcare system and hospital organisation in terms of patient care came into effect in July 2009. The law draws on a report published in 2008 and makes provision for the modernisation of healthcare facilities. It also seeks to address the issues of universal access to quality healthcare and prevention. The trade unions have not uniformly welcomed the law and have denounced unfair competition between public hospitals and the private sector.