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October 2011

• 24 Oct 2011
  Ireland: Recession drives change in workplace practices

  Two major National Workplace Surveys covering 3,000 employers and 5,100 employees were published in September 2010. Data from 2009 were used to examine the changing workplace based on the views of Irish employers and employees. The recession’s impact was found to be a strong driver for change within companies, with considerable changes in workplace practices being identified. A decline in hourly pay over the previous two years was reported by 21% of employees (more frequently by public than private sector workers). Trade union membership fell to 34% of the labour force.

• 21 Oct 2011
  Italy: New apprenticeship law to improve access to employment

  On 28 July 2011, the Italian government approved a reform to the law covering apprenticeships, which aims to help young more people into employment and redefines the terms of apprenticeships and how companies can use them. The document was written following consultations with the regions and social partners, who approved the text of the reform with two different agreements. Apprenticeships are now defined as open-ended contracts aimed at training young people.

• 21 Oct 2011
  France: Report highlights rise in number of company-level agreements

  Collective bargaining, encouraged by incentives and sanctions introduced by French law since 1982, has become an important tool for social regulation, concludes a report by the French Centre for Strategic Analysis (CAS). A review, published in July 2011 by the French Ministry of Labour, shows 2010 was a good year for collective bargaining, particularly on an interprofessional basis, and at company level. However, state involvement in local negotiations can be detrimental.

• 21 Oct 2011
  Sweden: Economy looms large in 2011–2012 wage bargaining

  A new wage bargaining round is about to begin in Sweden, and the difficulties in evaluating and forecasting the state of the economy have polarised the social partners. Unions want substantial wage increases to compensate for low pay rises over the last few years. Several unions have also indicated that they will break from following the lead of the norm setting collective agreement in industry and manufacturing. This would have a big impact on Swedish industrial relations.

• 21 Oct 2011
  Sweden: New union leaders offer promise of change

  Three Swedish trade union organisations have recently elected new chairs and a fourth will soon follow suit. GöranArrius, Eva Nordmark and Annika Strandhäll have clear visions of what they want to accomplish in their new positions and a common theme seems to be to increased flexibility in the Swedish labour market and making it easier for young people to find jobs. Discrimination against immigrants and gender equality are also on the agenda as the new leaders settle into their roles.

• 21 Oct 2011
  Estonia: Occupational insurance scheme still up in the air

  The number of occupational accidents and illnesses in Estonia has been high for years, although there was a small decrease during the economic crisis. However, with the recent upsurge in the economy, the rate has started to rise once more. Social partners have been discussing the idea of creating and implementing an occupational accident and illness insurance scheme for years, but continually fail to reach agreement. The new government has pledged to implement such a scheme by 2014, although employers still oppose the idea.

• 21 Oct 2011
  Luxembourg: Silent protest in private bus companies

  Bus drivers working for Luxembourg’s private bus companies held a two-week protest in June 2011, in which they grew beards or wore green wristbands to signal their discontent with working conditions; namely long working hours and a lack of toilet facilities. The protest, called ‘Operation La BARBE!’ was intended to attract the attention of employers and the public, without disrupting bus services. It took place as negotiations on a new collective agreement were taking place.

• 21 Oct 2011
  Ireland: Independent experts call for reform of wage setting

  Reforms to laws on sectoral wage-setting mechanisms have been called for by independent experts. The review of the Employment Regulation Orders and Registered Employment Agreements framework has also recommended exemptions for collective agreements, and more easily enforceable Employment Regulation Orders. However, any reforms are likely to exceed these suggestions after a High Court ruling in July found current wage-setting mechanisms to be unconstitutional.

• 21 Oct 2011
  Luxembourg: Rescue plan for national trade union

  In early July 2011, the Luxembourg Confederation of Christian Trade Unions (LCGB), one of the two representative trade unions at national level, revealed that it had debts of €1.05 million. As it is no longer able to pay its bills, cost reduction measures have become urgent and will include job and wage cuts as well as an early retirement plan for some of its staff. Two key executives have been suspended, provoking media debate about the internal cohesion of the organisation.

• 21 Oct 2011
  France: Reports critical of the new public employment service

  Reform of the French public employment service resulted in the merger of Assédic, the agency responsible for paying benefits to the unemployed, with the National Employment Agency (ANPE), the public service for supporting jobseekers. The merger created ‘Pôle emploi’, a single agency responsible for benefits and jobseeker support. Three years on, reports highlight the difficulties faced by the new agency as it attempts to improve and simplify services for jobseekers.

• 21 Oct 2011
  Germany: Newspaper editors win pay rise after strike action

  On 26 June 2011 the bargaining parties in the German printing industry agreed on measures covering pay and working time for some 160,000 employees. The agreement incorporates modest wage increases and an undertaking by employers to maintain the 35-hour working week until March 2014. A settlement covering some 14,000 editorial staff was finally reached on 18 August 2011 after more than a year of negotiations and dispute. Both agreements followed industrial action.

• 21 Oct 2011
  Luxembourg: Cargolux union attacks Qatar Airways deal

  In May 2011, Qatar Airways announced it intended to buy 35% of the Luxembourg air cargo company, Cargolux. The management of Cargolux was happy with the deal, but one of the country’s main trade unions, OGB-L, said it was not told about the exclusive negotiations with Qatar Airways and attacked its refusal to provide written commitments on job security, although this is not demanded by law. The union also fears the new partnership threatens Luxembourg’s social dialogue model.

• 21 Oct 2011
  Greece: Greek railways restructured as part of recovery plan

  The Hellenic Railways Organisation is being reorganisedto fulfil a condition of Greece’s EU/IMF loan. The company is to be divided into four separate entities, covering administration and security, property management, infrastructure, and services. Routes will be re-scheduled or closed and 2,000 workers are to lose their jobs. The Ministry of Infrastructure, Transport and Networks hopes this will boost railway revenues. Unions have reacted with 24-hour strikes.

• 17 Oct 2011
  EU Countries: Pay developments – 2010

  EIRO’s annual analysis of pay trends for 2010 finds that average collectively agreed nominal wage increases were lower than in 2009 in almost all 13 countries with available data, with Malta being the exception. The highest reductions in nominal pay increases were in Slovakia (5.5% in 2009 to 2.2% in 2010), Austria (3.4% to 1.6%), the Netherlands (2.7% to 1%) and Belgium (2.5% to 1%). Taking into account inflation, 2010 marked a turning point in many countries as collectively agreed pay did not compensate for price developments. Real increases in collectively agreed pay were negative in the UK (-1.5%), Belgium (-1.3%) and Austria (-0.1%), and only moderate increases were recorded in the Czech Republic (1.9%), Slovakia (1.5%) and Portugal (1%). The report also examines collectively agreed pay increases in three selected sectors (metal, banking and local governments), developments on minimum wages and youth pay rates, and gender issues in collective pay setting.

• 12 Oct 2011
  Finland: Unions fight over IT sector employees

  Finland’s association of IT sector employees is leaving the Federation of Special Service and Clerical Employees (ERTO) to join the Union of Professional Engineers in Finland (UIL), with the aim of strengthening its bargaining power. This has sparked a dispute between unions, as ERTO is set to lose a third of its members. ERTO says the IT association has acted arbitrarily, but Jouko Malinen, Chair of the association, said that the transfer had been contemplated for some time.

• 12 Oct 2011
  Malta: Social partners oppose pension reform proposals

  A pensions working group set up by Malta’s government has recommended the immediate creation of an additional mandatory scheme to complement the present ‘pay as you go’ pension, which is widely agreed to be unsustainable. However, employers say an additional pension system would undermine their competitiveness and suggest instead that the best solution would be to raise employment levels. Unions say workers would struggle to pay additional pension contributions.

• 12 Oct 2011
  Latvia: Minimum wage to stay unchanged

  The Latvian government has decided it will determine wage levels according to the country’s economic situation, but has agreed with the social partners to leave the minimum wage unchanged in 2012, even though economic indicators show slow growth. In 2003, it was decided to increase the minimum wage gradually until it reached 50% of the average gross monthly salary in 2010. This target has not been reached, however, and many public sector employees are paid the minimum wage.

• 12 Oct 2011
  Austria: Union suggests wage bargaining for women

  Before the start of the autumn bargaining round, Austria’s white-collar union has sparked a debate on narrowing the gender pay gap by suggesting additional wage bargaining rounds for female employees only. While the union’s umbrella organisation and the ministry for women’s affairs welcome the initiative, Austria’s largest employer organisation does not, arguing that issues concerning female employees should be part of the regular annual collective bargaining rounds.

• 07 Oct 2011
  Germany: Youth unemployment low compared to EU average

  Figures showing that youth unemployment in Germany is low compared with other European countries were released on International Youth Day, 12 August 2011. The figures, from the Federal Statistical Office, show that 430,000 young people (9.1% of this group) aged between 15 and 24 are out of work. Chancellor Angela Merkel is calling on them to make use of the German vocational training system, but the social partners are divided over how to remedy the problem.

• 07 Oct 2011
  United Kingdom: Increase in demand for collective dispute resolution

  Against a background of continued economic uncertainty, the number of collective employment disputes referred to the UK's Advisory, Conciliation and Arbitration Service increased by 15% between 2009–2010 and 2010–2011. The most common causes of the referred disputes were issues such as bonuses, job evaluation, grading, pensions and leave, with pensions in particular being highlighted. Other issues concerned general pay claims, redundancy and trade union recognition.

• 07 Oct 2011
  Slovenia: Public sector union calls for strike action

  An announcement that 160,000 workers in the Slovenian public sector could have their pay cut by 4% has led to union calls for strike action. Prime Minister Borut Pahor says the parliamentary committee for local self-management independently added the cut to a draft package of measures drawn up to address the budget deficit. He says he will respect agreements with the unions, but they suspect the government is trying to bypass dialogue and confrontation with social partners.

• 07 Oct 2011
  Slovakia: Changes to Labour Code come into effect

  In July 2011,the Slovak Parliament approved major changes to the Labour Code. These include making it easier and cheaper to make employees redundant and prolonging fixed-term contracts. New criteria for employee representation have also been introduced. However, the minimum wage scale will continue to apply. The amendments came into force in September 2011. Neither employers nor unions approve, with unions claiming the changes violate international conventions.

• 07 Oct 2011
  Spain: Government to set limits on public debt

  The Spanish government has reached an agreement with the main opposition party, the Popular Party, to set constitutional limits on the public deficit without including specific deficit ceiling figures. The reform will be accompanied by legislation which will put a ceiling on the structural deficit – the fiscal gap during a normal economic cycle – of 0.4 per cent of the gross domestic product (GDP). However, although it will be enacted in 2012, the law will not come into force until 2020.

• 07 Oct 2011
  Ireland: Crisis pushes workers to accept pay cuts

  A wage restructuring agreement at a long-established Dublin cleaning company illustrates the nature of the competitiveness challenge facing businesses in the Irish economy. It demonstrates how at time of recession unionised workers are coming under pressure to accept falling pay and benefit levels to save their jobs. Union members at the company voted in favour of the wage restructuring package by over six to one. Other firms dependent on the local economy are also applying similar measures to remain competitive.

• 07 Oct 2011
  Luxembourg: Major reform of civil service to affect status and pay

  On 18 July, the trade union representing public sector workers, the General Public Sector Confederation, reached agreement with the government on two significant collective agreements. Both agreements will lead to profound changes in the status of civil servants and the way they are paid. They address the way public sector employees are trained, how they progress up the career ladder, how they are helped to address weaknesses and how their pay scale is structured.

• 07 Oct 2011
  Poland: Regional railway workers go on strike over pay

  In August 2011, trade unions in the Polish regional railway passenger transport company PKP PR announced a one-day strike, following a stalemate in pay talks with management and the unequivocal result of a strike referendum. The strike proved an effective means of pressure, as the company board eventually agreed to the unions’ demands. However, industrial relations in PKP PR remain tense, as the firm’s financial crisis deepens and it battles to keep its regional services.

• 07 Oct 2011
  Italy: Eni signs agreements on industrial relations and green economy

  Eni, one of the largest integrated energy companies in Europe, and trade unions Filctem-Cgil, Femca-Cisl and Uilcem-Uil have signed two important agreements. The first one contains a broad investment plan for 2011–2014 and foresees the development of a new model for industrial relations based on employee participation. The second agreement provides for the restructuring of the Porto Torres industrial complex in Sardinia through investment in the green economy.