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November 2011

• 29 Nov 2011
  Belgium: Ministry rejects sectoral collective agreement

  After three months of negotiations, a new Interprofessional Agreement (IPA) was reached in Belgium in January 2011. However, the government insisted that it should put a 0.3% limit on wage increases until the end of 2012. Since some social partners did not sign it, the agreement had to be enacted by royal decree. The stone quarrying sector, rejecting the IPA, then negotiated a higher wage rise. The Ministry of Employment has now declared this settlement invalid, angering unions.

• 22 Nov 2011
  Netherlands: New measures to promote independent entrepreneurship

  The Social and Economic Council and the Dutch cabinet recognise the importance of the increasing numbers of self-employed individuals without employees for economic growth. They have therefore adopted measures to create a favourable business climate in order to reduce obstacles for these entrepreneurs. Together, they are working towards lowering the administrative burden borne by self-employed individuals and creating good facilities for independent entrepreneurs. Special insurance schemes have for example been developed and people currently on benefits can more easily make the transition to the entrepreneurship.

• 22 Nov 2011
  Czech Republic: Social partners attack ‘unrealistic’ 2012 state budget

  The Czech government approved the state budget for 2012 on 21 September 2011, even though trade unions and employers disagree with it. They say it is based on an unrealistic projection of the growth in the gross domestic product (GDP). Trade unions also criticise the fact that the budget’s revenue and expenditure proposals are based on laws not yet adopted by Parliament. Although the Czech Prime Minister agrees the projected growth rate may be too optimistic, he has so far refused to revise the budget.

• 22 Nov 2011
  Greece: OTE cuts costs in three-year deal with union

  After difficult negotiations lasting almost three months, the management of Greece’s biggest telecommunications company (ΟΤΕ), and the Federation of OTE Employees (ΟΜΕ-ΟΤΕ) reached a preliminary agreement on 23 September to cut labour costs. The deal sets out a tough programme of pay cuts and reduces the firm’s working week to 35 hours, but avoids lay-offs and secures industrial peace for the next three years. The agreement is due to be signed after final approval by the parties involved.

• 22 Nov 2011
  EU Level: Slowdown in EU labour market recovery

  The labour market recovery in the EU has slowed down, according to the European Commission’s most recent Employment and Social Situation Quarterly Review. Published at the end of September 2011, it also shows that the impact of the crisis on young workers, migrants, low-skilled workers and women, remains severe. However, although the employment rate in the EU has not returned to its pre-crisis level, its year-on-year rate has improved marginally in most Member States.

• 18 Nov 2011
  France: New contract for unemployed workers

  Following an agreement between social partners at the national level, reached on 19 July 2011, the French government brought in a new law on 29 July introducing a new contract for employees who are made redundant. By signing this contract, they are agreeing to actively seek work while taking part in retraining and redeployment programmes. The new system replaces two previous contracts, which the government felt had not done enough to rehabilitate unemployed workers.

• 18 Nov 2011
  Portugal: Unions set to strike over 2012 austerity budget plan

  Plans for another stringent budget in Portugal have prompted unions to call for a general strike. Proposals by centre right coalition PSD-CDS for the 2012 budget are harsher than those requested by the IMF, the ECB and the EC. They include further cuts in public spending and social security, while capital profits remain almost untouched. Trade union confederations CGTP and UGT have called for a general strike on 24 November, on the eve of parliament’s final vote on the budget.

• 18 Nov 2011
  EU Level: New global agreement on work-related stress at Danone

  Multinational food company Danone and the International Union of Food workers have signed the first worldwide agreement on health, safety, working conditions and stress within the agro-food sector. It is also the first agreement to extend a stress prevention policy worldwide. It was signed on 29 September 2011, and lays down principles that must be respected by each company in the Danone group, based on mandatory consultation between management and staff representatives.

• 18 Nov 2011
  Czech Republic: Government gives go-ahead on short time work scheme

  After months of lobbying, unions and employers in the Czech Republic have finally got the Government to draft proposals for a deal called ‘kurzarbeit’. The scheme means that if companies reduce their workers’ hours because of a fall in business, the employees’ lost earnings are made up by the state. The company, in turn, must promise not to dismiss any workers. The arrangement was first included in a recovery plan agreed at a tripartite meeting with the Czech government in 2010.

• 17 Nov 2011
  Lithuania: Conflict continues over brewery strike ban

  Trade unions representing workers at Lithuania’s biggest brewery, UAB Svyturys-Utenos Alus, have complained to the government and international organisations that a court ban on their planned industrial action restricts the constitutional right to strike. The strike was announced in June 2011 after unions failed to reach an agreement with management on pay. However, the company successfully challenged the strike in the courts where it has been declared illegal.

• 17 Nov 2011
  Poland: Unions join Euro-demonstration in Wrocław

  Between 20,000–50,000 trade union members took part in a rally in Wroclaw, Poland on Saturday, 17 September 2011. The demonstration was organised by the European Trade Union Confederation (ETUC) to coincide with a meeting of European finance ministers. ETUC’s slogan was ‘Yes to European solidarity, yes to jobs and workers’ rights, no to austerity’. Union leaders stressed that fighting the economic crisis should not be used an excuse to reduce workers’ rights.

• 10 Nov 2011
  Germany: Views divided over impact of statutory minimum wage

  New research published by the Cologne Institute for Economic Research in October 2011 contradicts previous findings on the effects of a statutory minimum wage. The social partners are also divided on the issue. The United Services Union says a minimum wage of €8.50 would stop workers claiming public allowances to supplement their incomes, while the German Confederation of Employers’ Associations say it will lead to job losses and a greater drain on the public purse.

• 10 Nov 2011
  Malta: Trade union membership stable despite current crisis

  The latest annual report from the Registrar of Trade Unions found that membership of Maltese trade unions had increased by 0.6% compared with the previous year. The General Workers’ Union and United Workers’ Union account for over 80% of trade union members. Overall it appears the trade union movement is coping adequately with the changes in the labour market in Malta. The Malta Union of Teachers reported a significant decrease in members following a review of its records.

• 10 Nov 2011
  Norway: Adecco to grant retroactive overtime pay

  In October 2011 the largest recruitment company in Norway, Adecco, reached an agreement with two trade unions for the retroactive reimbursement of overtime pay for employees who were working in nursing homes in the counties of Oslo and Akershus. Several municipalities ended their contracts with Adecco following media allegations about unpaid overtime and extensive breaches of working hours regulations. The company has now closed its remaining nursing homes in Norway.

• 10 Nov 2011
  Sweden: Proposed youth salary sparks debate

  In response to the high youth unemployment rate in Sweden compared with the EU average, the Swedish Liberal Party has rallied behind the Swedish Centre Party in its ambition to cut pay for young people aged 15–24 to increase their competitiveness in the labour market. This has sparked intense debate among social partners as they not only disagree over the issue of pay differentiation and wage flexibility, but also want to protect the labour market from political interference.

• 10 Nov 2011
  Greece: Unions object to labour reserve plan in public sector

  As part of the EU/IMF financial support programme for Greece, the government agreed to cut the cost of the public sector by reducing staff. To do this, a labour reserve will be introduced for 30,000 employees with a view to saving €300 million in 2012. Unions have been extremely critical of the plan. They intend to appeal to Greek and European courts, saying the measures conflict with the Greek constitution and EC law. They are also threatening to strike at sectoral and national level.

• 07 Nov 2011
  United Kingdom: Unfair dismissal claims made harder

  The UK government announced in October 2011 that, from April 2012, it will be harder for employees to make claims for unfair dismissal. The qualifying period of employment required before an employee can claim unfair dismissal in an employment tribunal will double, from one to two years. The government has also introduced a fee for bringing a case to a tribunal. The changes are intended to make it less risky for businesses to hire staff, but unions are highly critical.

• 07 Nov 2011
  United Kingdom: Discussions about whether workers should help set executive pay

  In October 2011 the UK government launched a discussion paper on executive remuneration in response to criticism that generous executive pay packets bear little relation to company performance or to the develoment of employee wages. One option floated in the paper is a requirement for employees to be represented on the remuneration committees that set senior managers' pay in listed companies. Unions welcome the move, but some employer representatives are nervous.

• 07 Nov 2011
  EU Level: Employment Council discusses wide range of social issues

  Europe’s employment, social policy, and health and consumer affairs ministers met on 3 October 2011 to discuss a range of social issues. These included the upcoming Tripartite Social Summit, the role of the European Social Fund in achieving Europe 2020 Strategy targets, voluntary activities and social policy in the context of the 2011 European Year of Volunteering, and how the problems posed by an ageing population might be eased by better reconciliation of work and family life.

• 07 Nov 2011
  Italy: Recent developments in Fiat’s industrial relations

  Two agreements signed at Fiat’s Pomigliano and Mirafiori plants in June and December 2010 have started an important transformation phase in industrial relations at the carmaker and triggered a nation-wide debate over the reform of the Italian bargaining system. In late June 2011, these agreements also contributed to the conclusion of an important intersectoral agreement on trade union representativeness and the enforceability of company agreements.

• 01 Nov 2011
  Bulgaria: Bulgarian workers protest over privatisation of the Tobacco holding Bulgartabak

  On 2 September the tobacco unions affiliated to the Confederation of Independent Trade Unions in Bulgaria and Podkrepa Confederation of Labour organised a protest rally against the sale of tobacco holding Bulgartabak. More than 600 tobacco workers are taking part in the rally in Sofia. The workers, worried about their jobs, gathered in front of the privatisation agency asking for the transaction to be stopped. They claimed that the terms of the sale were not transparent and BT Invest could close down plants and lay off workers. Despite the protests, the privatisation contract has been signed.

• 01 Nov 2011
  Sweden: ‘Gender equality fund’ sparks tensions among unions

  A new round of wage negotiations in Sweden is about to start amid an atmosphere of discord among unions affiliated to the Swedish Trade Union Confederation LO. Several unions within the industry sector have not accepted LO demands due to a disagreement over the gender pay gap. As a result, solidarity within LO is under pressure and there is uncertainty about whether the industrial agreement will continue to act as the norm for the labour market when the bargaining round begins.

• 01 Nov 2011
  Greece: Permanent status for fixed-term workers in public sector

  A ruling by the Greek Supreme Court marks the end of rolling short-term contracts for public sector workers. The judgment, by the court’s Plenary Session in April 2011, directly affects only a few hundred workers but is expected to pave the way for thousands of employees, hired before 2001, to claim permanent contracts. Unions hailed the decision as a vindication of their long battle for justice and called on the Government to enforce the judgment. The Government did not comment on the ruling.

• 01 Nov 2011
  Italy: Collective agreements influenced by 2009 protocol

  The renewals of industry-wide agreements in Italy since 2009, when a tripartite agreement revised procedures for collective bargaining, show that the new rules have been widely adopted at sectoral level. The shift to three-year long collective agreements is almost complete, with the sole exception of the agriculture sector. The majority of renewed agreements were signed by all trade unions, even the General Confederation of Labour (Cgil) which did not sign the 2009 protocol.