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July 2010

• 28 Jul 2010
  Spain: Government endorses plan to cut public deficit

  The Spanish government has endorsed a drastic plan to cut the public deficit. The plan includes an average reduction of 5% in public sector wages, a freeze on pensions, changes to the partial retirement regulations, withdrawal of the ‘baby cheque’ for mothers and cuts in pharmaceutical expenditure. Trade unions showed their opposition by calling a strike of public sector workers on 8 June 2010. In parliament, opposition political parties condemned the freeze on pensions.

• 28 Jul 2010
  Greece: Pension and labour reforms under social security draft law

  After a long process of development and following a ‘memorandum’ of cooperation with the supervisors of the European Commission, the European Central Bank and the International Monetary Fund, which workers and pensioners found particularly aggravating, the Greek Ministry of Labour introduced a social security draft law providing for pension cuts and rises in the retirement age limits.

• 28 Jul 2010
  Poland: Concept of employee privatisation returns

  Nearly 20 years after the first attempt to introduce employee ownership schemes, the Polish government is to revive the idea with the help of public financial support offered to companies in which either employees or local government are involved. The concept has been positively assessed by the social partners and is currently being transformed into draft legislation.

• 28 Jul 2010
  Austria: Negotiations on working time in metalworking industry terminated

  In April 2010, the negotiations on working time flexibility in Austria’s metalworking industry were terminated by employers. While organised business demanded an extension of the reference period for paying overtime, which would have allowed companies more flexibility in times of economic uncertainty, the trade unions firmly refused, arguing that such a move would involve a loss of income for employees. In their turn, the unions called for a reduction in working hours.

• 28 Jul 2010
  Ireland: Croke Park deal delivers cost containment and promises major change in public sector

  A four-year agreement, which includes a pay freeze, job security and the maintenance of existing pension arrangements for 330,000 Irish public servants, has been accepted by their unions. It was voted through by a majority of almost two to one and includes commitments to a programme of major change overseen by a new implementation body which it is hoped will yield productivity improvements and efficiencies and guarantee industrial peace in the public sector.

• 26 Jul 2010
  EU Countries: Working time developments – 2009

  In 2009, average collectively agreed weekly working time in the European Union stood at 38.7 hours. The figure was 0.8 hours lower in the pre-2004 EU15 and 0.9 hours higher in the new Member States. Agreed normal annual working time averages around 1,750 hours – just above 1,700 in the EU15 and a little over 1,800 in the new Member States. Of three sectors examined, agreed weekly hours are highest in retail, followed by chemicals and the civil service. Average collectively agreed paid annual leave entitlement stood at 24.5 days across the EU in 2009. This EIRO report also examines statutory working time and leave limits, and actual working hours.

• 23 Jul 2010
  Italy: Majority approval for policy document at 16th Cgil congress

  The General Confederation of Italian Workers (CGIL) held its 16th congress in Rimini from 5 to 8 May 2010. Guglielmo Epifani was re-elected General Secretary of CGIL, and the policy document presented by him was approved by a majority of the delegates. The general secretaries of the Italian Confederation of Workers’ Unions and the Union of Italian Workers also attended the congress, despite some serious divisions between the three main trade unions in Italy.

• 23 Jul 2010
  Estonia: Salaries continue to decline

  The economic decline has slowed in Estonia, but average wages are still falling as a result of the recession. There are reports of some companies cutting workers’ salaries without consulting trade unions. For instance, the Prisma Peremarket supermarket chain decided to reduce the salaries of 700 employees by 12%–15% because of bad economic results. The trade union did not agree to the changes and alleges that employees faced a choice between a salary cut or losing their jobs.

• 23 Jul 2010
  Germany: New collective agreement concluded in chemicals industry

  In April 2010, a new collective agreement in Germany’s chemicals industry was concluded by the Mining, Chemicals and Energy Industrial Union and the German Federation of Chemical Employers’ Associations. The agreement provides for lump-sum payments, and includes a number of measures to combat the effects of the recession. New regional networks are to be set up, as well as a fund to support companies that offer continuing employment to trainees completing their apprenticeships.

• 23 Jul 2010
  Malta: Trade union rights for police officers

  Maltese legislation granting trade union rights to workers does not extend to the police force. The main Maltese trade unions have started a campaign to win these rights for police officers. This campaign has intensified following a judicial protest by members of the force about overtime pay. While the response of the Police Commissioner has been rather cautious, the government has started discussions between the Ministry for Justice and officials of the police corps on the issue.

• 14 Jul 2010
  Italy: Social shock absorber system facing economic crisis

  In Italy, the wages guarantee fund (CIG) aims to maintain employment when a company faces a crisis. In 2009, there was a 311% increase in recourse to the CIG compared with 2008. According to the government and the social partners, the Italian ‘social shock absorber’ system has considerably reduced the number of dismissals. However, the trade unions have recently expressed concern about the future prospects of workers whose CIG periods will terminate in the next few months.

• 14 Jul 2010
  Denmark: New agreements pave the way to tackle social dumping

  New collective agreements in Denmark’s transport and construction sectors will help combat social dumping and discrimination against foreign nationals. Although the main goal of the employees – complete ‘joint and several liability’ from contractor to subcontractors – was not achieved, the new agreements extend the powers of unions to prevent social dumping and promote closer cooperation between social partners.

• 14 Jul 2010
  United Kingdom: Long-running dispute between British Airways and Unite union continues

  In May and June 2010, the UK trade union Unite carried out a series of industrial actions against British Airways. The strikes were the latest in a series of industrial actions taken by Unite against the airline. The dispute has centred on cost-cutting measures proposed and implemented by British Airways, as well as issues concerning the terms and conditions of Unite members. Both sides appear to be deeply entrenched and the dispute could continue during the summer of 2010.

• 14 Jul 2010
  Slovakia: SAD employees fight for reduced bus fares

  Employees of the Slovak Bus Transport Company (SAD) demanded to keep their right to reduced fares for them and their families. Allowances would however have to be provided by the regional governments. The Metal Trade Union Association supported the demand and announced a strike of bus drivers in June 2010. The employers’ representative, the Association of Bus Transport, also supported the drivers. All regional governments finally agreed to the demand for a fixed period and the strike was called off.

• 14 Jul 2010
  Cyprus: Tension in hotel trade over renewal of pay agreement

  In June 2010, after 18 months of hard bargaining, trade unions representing Cyprus hotel workers agreed to accept a proposal by mediators to renew their collective agreement. The Ministry of Labour and Social Insurance believes that the proposal, effective retrospectively from January 2009 to December 2011 and mainly covering pay issues, will balance the various demands and needs of both sides of industry. However, the employers voiced concerns about the content of the agreement.

• 09 Jul 2010
  Romania: National trade union confederations set up crisis committee

  Romania’s five national trade unions have set up a crisis committee following the financial cuts agreed by the Romanian government and the International Monetary Fund. The agreement, taking effect from 1 June 2010, cuts all public sector wages by 25%, and all pensions, unemployment benefits and subsistence allowances by 15%. There will also be mass job losses. The unions planned a general strike for 31 May, a big rally in Bucharest, plus picketing of the presidential quarters and of government buildings.

• 09 Jul 2010
  Greece: New law to regulate flexible employment relationships

  In May 2010, the Greek parliament passed a new law guaranteeing job security. The law, fiercely opposed by employers, covers economically dependent work, part-time and short-time work, temporary agency work, as well as other flexible forms of employment. It also outlines provisions on employee layoffs, working time arrangements, the length of the working week and the resolution of workplace disputes.

• 09 Jul 2010
  Slovakia: Volkswagen Slovakia increases wages by 3%

  The automotive industry in Slovakia is overcoming the recession and trade unions are demanding higher wages. Volkswagen Slovakia, hit by the economic downturn in 2009, has agreed a wage increase of 3%, with a one-off payment to employees of €215. The unions had threatened strike action in March 2010, when initial bargaining failed, but within a few weeks an agreement was met for 2010–2011.

• 09 Jul 2010
  Poland: OPZZ promotes changes to pensions system

  In early 2010, the All Poland Alliance of Trade Unions (OPZZ) and daily newspaper Superexpress launched a joint campaign to make the national pensions system fairer. They called for any person insured under the system to have the right to retire and collect a pension based solely on the number of years worked, regardless of their age. More than 250,000 Poles backed the initiative, which was subsequently submitted to the parliament as draft legislation.

• 05 Jul 2010
  EU Countries: Developments in social partner organisations – employer organisations

  This report examines the structure and role of employer organisations in the European Union and Norway, highlighting recent trends and developments. The report focuses mainly on national ‘peak’ employer organisations and sectoral organisations, their role in collective bargaining and tripartite/bipartite dialogue, and the services they provide to members. Other areas examined include subnational (regional or provincial) employer organisations, organisations that group employers with shared characteristics or interests, and the composition of the leadership of employer bodies.

• 01 Jul 2010
  Czech Republic: Traditional Czech textiles company goes bankrupt

  On 3 May 2010, the Regional Court in Brno sent the country’s biggest clothes manufacturer, Oděvní podnik Prostějov, into bankruptcy. The company had been in a bad financial situation since January. Although it tried to reorganise itself, it did not manage to get enough funding. The company blames current economic conditions, the low volume of orders and a lack of money. Cheaper products from Asia and a strong Czech currency were other negative factors.

• 01 Jul 2010
  EU Level: EU social partners reach agreement on inclusive labour market

  In March 2010, the EU-level cross-sector social partners presented a new joint agreement on achieving an inclusive labour market. The agreement sets out the main challenges and develops a range of actions that the social partners can take to help disadvantaged people to enter, remain and develop in the labour market. The member organisations of the signatory parties have three years to implement the agreement, and an implementation report will be drawn up in 2014.

• 01 Jul 2010
  Norway: New agreements concluded in key private sector accord areas

  In April 2010, the social partners within the so-called trend-setting industries in Norway, which include important parts of the manufacturing sector, reached agreement on a general wage increase of NOK 1 (€0.13) an hour, as well as additional low pay increases, and an extraordinary equal pay increase to be distributed at company level. The wage settlement is expected to generate wage growth of about 3% from 2010 to 2011.

• 01 Jul 2010
  Greece: Extraordinary measures used to activate European economic support mechanism

  As a result of the crisis in the Greek economy and in order to secure the eurozone’s financial and budgetary stability, a European support mechanism has been created to finance the Greek debt. For the activation of the support mechanism, a law foreseeing a wide range of measures has been introduced, seeking to reduce public expenditure immediately and to create a favourable investment environment. However, trade unions have reacted strongly against the measures.

• 01 Jul 2010
  Germany: Assessing employee representation and collective bargaining coverage

  To coincide with the May Day celebrations, the social partners gave their assessment of the inner workings of the German collective bargaining system. Employers in the metal and electrical industry highlighted that the decline in collective bargaining coverage has been stopped. Latest data from the Institute for Employment Research show that around 32% of establishments with about 52% of employees were directly covered by a sectoral collective agreement in 2009.

• 01 Jul 2010
  Lithuania: Further expansion of national Tripartite Council

  The social partners at the Tripartite Council of the Republic of Lithuania (LRTT) have decided to set up several new committees in order to extend the scope of the council’s activities. In May 2010, the LRTT approved the establishment of five new committees. The LRTT has approved basic regulations of the committees, establishing their functions and rights, as well as their formation, work organisation and dissolution procedures.