Highlights, 03 Feb 2012

03 Feb 2012
Denmark: Limited options expected in new bargaining round
In early January 2012, the social partners in manufacturing, CO-industri and DI, began a new round of collective bargaining to renew the 2010 two-year agreement. It was decided in 2010 that the agreement should cover two years only, as by 2012 the repercussions of the economic crisis might have eased off and a new round of bargaining could take place at the start of an upswing. However, this has not been the case and negotiations in 2012 will again be influenced by the crisis.
03 Feb 2012
Latvia: Welfare benefits are replacing wages
As a result of the economic crisis, the importance of welfare benefits in Latvia has increased. In addition to the guaranteed minimum income benefit and housing benefit received by low-income families, unemployed people have access to various other types of generous benefits and help from mutual assistance programmes. In contrast, salaries have decreased or failed to mirror the rise in inflation. As a result, dependence on welfare benefits has risen sharply.
03 Feb 2012
Estonia: Government refuses to reduce unemployment insurance premiums
The Estonian government has refused to reduce unemployment insurance tax from 4.2% to 3% for 2012 as proposed by the tripartite supervisory board of the Unemployment Insurance Fund. During heated negotiations, the government argued it was unwise to reduce the tax in uncertain economic circumstances. Trade unions and employers disagreed with the government’s position, and the Estonian Employers’ Confederation called its representatives back from the fund’s supervisory board.
30 Jan 2012
United Kingdom: Public service workers strike over pension reforms
On 30 November 2011, over one million UK public service workers took part in a national 24-hour strike in protest against changes the government has already introduced, and others it wants to make, to public sector occupational pension schemes. Unions and the government disagreed over the impact of the stoppage. Talks between government and union officials are continuing, although unions have questioned ministers’ willingness to negotiate over the proposed changes.
30 Jan 2012
Czech Republic: Czech Airlines settles dispute with pilots over airplane transfer
On 1 December 2011 the pilots of Czech Airlines (CSA) launched a protest against the transfer of the leases of 11 aeroplanes to the company Holidays Czech Airlines within the Český Aeroholding group. The transfer was part of a restructuring of the airline. As part of the protest, some pilots did not come to work, with the result that CSA had to cancel 25 flights. Agreement was reached later in the month on the transfer of both planes and pilots to Holidays Czech Airlines.
30 Jan 2012
Sweden: Social partners’ battle over pay set to continue
Swedish social partners in industry managed to sign a collective agreement on 13 December 2011, after long and difficult wage negotiations. However, although the employer organisations are satisfied that potential strikes have been averted, they claim the agreement is at ‘breaking point’. Unions are split over how much influence the agreement will have when other sectors begin wage bargaining in the spring of 2012, even though it has been accepted since 1997 as norm-setting.
30 Jan 2012
EU Level: Social partners launch review of Working Time Directive
On 14 November 2011, the EU-level social partners agreed to start negotiations to revise the Working Time Directive. This follows the Commission’s second stage of social partner consultation on this issue, launched in December 2010. The key issues under discussion by social partners representing Europe’s employers and trade unions include on-call working, the opt-out clause for the 48-hour week, and interpretations of European Court of Justice’s rulings on the Directive.
23 Jan 2012
Ireland: Government curbs redundancy terms for banks
The Irish government’s finance department has confirmed that banks covered by the state guarantee on all bank deposits and liabilities must not pay better redundancy terms than those offered to public sector workers. The public sector limit was set in 2010 for almost 2,000 staff who left the Health Service Executive. It provides for an extra three weeks' pay for each year of service, on top of the statutory two weeks' pay for each year already provided by the state.
23 Jan 2012
Malta: Pre-budget discussion among social partners
Before Malta’s budget is presented, the social partners declare their priorities and make proposals to the Minister of Finance at a meeting held at the Malta Council for Economic and Social Development. The main issues that emerged from this dialogue in October 2011 were taxation, the Cost of Living Allowance, incentives and initiatives to boost the Maltese economy and the participation of women in the labour market. Some measures announced in the budget addressed these issues.
23 Jan 2012
Austria: First strikes in 25 years mark start of pay round
Austria’s autumn collective bargaining round got off to a bad start when negotiations stalled in the metalworking industry, which traditionally sets the pattern for the rest of the economy. About 100,000 workers in 200 companies took part in warning strikes. The issue was resolved only after secret meetings between the leaders of both sides, with both now saying they are happy with their agreement to increase average wages by 4.2%, setting the gross minimum wage at €1,583 a month.
20 Jan 2012
Denmark: Retirement reform will make 25,000 unemployed
The Danish government is planning to reform the retirement system, leading eventually to a reduction in its scope, narrowing the age range in which employees can take early retirement and raising the general retirement age. The justification for this reform is to increase the size of the Danish workforce to counteract demographic predictions of a shortage of employees in years to come. A recent report, however, suggests that the reform will cause new unemployment.
20 Jan 2012
Spain: Regional governments plan to cut education spending
In 2011, the Spanish government agreed in the Fiscal and Financial Policy Council to set new goals for cutting the public deficit of the autonomous communities from an overall average of 3.9% to 1.3%. In response, several regional governments have drawn up new plans for reductions in their education budgets. In some regions fixed-term teaching positions will not be renewed and working hours will be extended. Unions have called strikes to protest against these measures.
09 Jan 2012
Bulgaria: Trade unions oppose public administration pay reform
Bulgarian Finance Minister Simeon Diankov presented proposals for public administration reform at the meeting of the National Council for Tripartite Cooperation held in November. The focus is on a new pay system, which replaces the traditional civil service system of automatic salary increases based on length of service with financial rewards for good performance. Employers' associations supported the proposal but trade unions have criticised some reform proposals.
09 Jan 2012
EU Level: AXA signs European framework agreement on structural change
French global insurance group AXA has concluded a European framework agreement on anticipating change in the industry. The group-level framework agreement is to help guide the group’s European companies. This accord has also been used by the group’s subsidiary, AXA Assistance, as the basis of another agreement dealing with major changes in its business model. The agreements, signed on 14 and 30 September respectively, were approved by the social partners on 23 November 2011.
09 Jan 2012
France: Social partners review intense phase of social dialogue
During a meeting on 10 November 2011, France’s social partners reviewed their activities in the first half of the year, including the signing of eight national intersectoral agreements, and announced their programme until March 2012, just before the presidential election. Faced with flat economic growth, the social partners decided to begin monthly monitoring to deal with the urgent socio-economic situation, but trade unions said more serious negotiations were needed.
09 Jan 2012
Slovakia: Doctors end strike alert in protracted hospital crisis
More than 2,400 physicians handed in their notice in Slovakian hospitals in September, in protest at the planned transformation of hospitals into joint-stock companies. However, following a vote of no confidence against the government in mid-October, the Slovak President Ivan Gašparovič decided to halt the hospital reform. The physicians continued their protest into November and December, only calling it off when the president signed an amendment to the law on health-care providers fulfilling the basic demands of the doctors.
04 Jan 2012
Slovakia: Government agrees minimum wage rise for 2012
The Slovakian government has stepped in after employers refused to consider union demands to raise the minimum wage. The wage, currently at €317 a month, is one of the lowest in the EU. Unions want the rate increased to €330 for 2012 but employers have resisted any change because rates for more highly skilled workers are tied into the rate. This has led the Ministry of Labour, Social Affairs and Family to propose a new rate of €327 per month, although no final decision has been made.
04 Jan 2012
Greece: Employers join mass turnout at national strike
Hundreds of thousands of protesters, including employers, took part in a national 48-hour strike organised by the Greek General Confederation of Labour (GSEE) and the Confederation of Civil Servants (ADEDY) on 19 and 20 October. The strikers, from both public and private sectors, were protesting against a draft law by the Ministry of Finance. It includes cuts in pay, jobs and pensions, and has been brought in as part of Greek’s financial bail-out deal with the EU, IMF and ECB.
04 Jan 2012
United Kingdom: Leaked government report calls for ‘no-fault’ dismissal
In October 2011, a report commissioned by the UK government was leaked to a national newspaper, revealing proposals for the abolition of employees’ rights to claim unfair dismissal in certain circumstances. As an alternative, the report proposed introducing a ‘no-fault’ scheme, whereby employers could dismiss employees without giving them a reason and make only basic redundancy and notice payments. The proposals have prompted strong criticism from social partners.
22 Dec 2011
United Kingdom: Union derecognition in the spotlight
UK employers generally reach a voluntary agreement with trade unions to recognise them for collective bargaining purposes. Recognition can be made compulsory by an independent arbitration committee if a union demonstrates a certain level of support from employees. While derecognition of unions is not common, a couple of cases have made the news in 2011, prompting concerns that employers may use derecognition as a way of pushing through cuts in pay and conditions.
22 Dec 2011
Slovenia: Migrant workers win fight against discrimination
Migrant workers from Bosnia and Herzegovina have finally won the right to claim unemployment benefit in Slovenia. This has been denied them for years, despite the fact they have always been required to pay contributions to unemployment insurance. On 2 September 2011, the amendments to the agreement on social insurance between Slovenia and Bosnia came into force. These amendments also give migrant Bosnian workers more rights and aim to reduce discrimination against them.
22 Dec 2011
Germany: Vocational training market in fine shape
On 7 November 2011, the partners in the Pact on Apprenticeships released new figures on the development of the vocational training market in Germany. The latest data highlight a positive trend, showing more vocational training positions are available for young people and more establishments are offering training. However, the Confederation of German Trade Unions is unconvinced and insists that the situation for young people looking for a training position remains difficult.
16 Dec 2011
Spain: Telefónica to make 6,500 workers redundant
The Spanish Government has approved plans by telecommunications company Telefónicato make 6,500 employees redundant. The measure has been agreed with employees’ representatives and is linked to a new collective agreement, which commits the company to no more redundancies, the recruitment of at least 450 new employees and a grants programme for young workers. The company has also been forced to reimburse the Government for the resulting stateunemployment payments.
13 Dec 2011
France: Strengthened regulation of internships
The recent ‘Cherpion’ Law strengthens existing measures and introduces requirements that offer more protection for French interns. The law necessitates the signing of a tripartite contract (between employer, intern and their educational establishment), limits the duration of internships, insists on a break between two interns in the same role, stipulates a monthly payment, increases the involvement of works councils and sets rules on probationary periods for subsequent employment.
13 Dec 2011
Netherlands: Committee urges end to abuse of migrant workers
Research on migrant workers has concluded that the Netherlands underestimated how many immigrants would come when the country opened its borders to people from Eastern and Central Europe in 2007. Research from a committee established by the Dutch House of Representatives says the Netherlands was completely unprepared for dealing with the influx. In its report, the committee put forward several measures to tackle the issues that have arisen.
13 Dec 2011
France: First assessment of representativeness reform
The 2008 reform of trade union representativeness has transformed the industrial relations landscape in France. A new study commissioned by the French government makes a first assessment of the reform’s impact. The aim of reducing the number of trade unions has not yet been achieved, although unions recognise that their representativeness is in danger. The increasing professionalisation of trade union work could also create a gulf between union leaders and ordinary employees.
09 Dec 2011
Finland: Social partners agree national pay settlement
Social partners have worked out a tripartite framework for a new centralised national agreement on wages and conditions. The 25-month agreement offers a 4.3% pay increase with a lump sum payment of €150 in January 2012. It also covers issues affecting the quality of working life. The government is supporting the agreement with tax reliefs worth €400 million. The agreement will only take effect if sectoral coverage is 100%, with 25 November the deadline for negotiations.
09 Dec 2011
EU Level: Commission issues new Communication on Corporate Social Responsibility
In October 2011, the European Commission issued a new Communication on Corporate Social Responsibility, redefining the concept. It urges companies to address employment and social issues such as training, youth employment, dialogue with employee representatives, employee health and well-being, gender awareness and diversity management within the context of the Europe 2020 strategy, and to see such initiatives as a key part of the solution to Europe’s economic crisis.
07 Dec 2011
Latvia: Hospitals protest against lack of funds
The Latvian government has earmarked an extra €8.7 million for regional hospitals after staff protested at plans to cut funds for emergency patients in the second half of 2011. Demonstrations by health unions at three regional hospitals in August 2011 were supported by the Latvian Hospital Association, local governments and the public. However, hospitals are sceptical of another government promise to allocate an extra €997,000 to emergency healthcare funding.
07 Dec 2011
Norway: Proposals to improve the quality of working life
In August 2011, the Norwegian government submitted a white paper on working conditions, work environment and safety to parliament (Stortinget). The paper provides a thorough depiction of the situation in Norway and outlines a number of measures needed to improve conditions for workers. These include the prevention of involuntary part-time work, and the promotion of decent wages and working conditions in public contracts.
07 Dec 2011
Denmark: Recently established Equal Pay Tribunal has no cases
A tribunal dealing with matters concerning equal pay has not heard any cases, six months after it was set up in Denmark by social partners CO-industri and DI. The tribunal was established in June, in collaboration with the Labour Court, and is expected to deal with the interpretation and understanding of the Equal Pay Act, its possible violation and the incorporation of the law’s provisions in the industry agreements between trade union CO-industri and the employers in DI.
05 Dec 2011
Bulgaria: Deadlock over 2012 minimum social security thresholds
Annual negotiations among the Bulgarian social partners over social security thresholds have run into difficulties. The thresholds act as sectoral minimum wages in many industries and were introduced to stop employers paying contributions on the basis of the national minimum wage, rather than their workers’ true pay. The average increase agreed across 50 sectors (out of 85) is 7%. Unions welcome this, but employers are worried about burdening firms with extra costs.
05 Dec 2011
Ireland: Proposal to streamline employment rights bodies
The Irish Minister for Jobs, Enterprise and Innovation Richard Bruton has published a consultation paper on reforming employment rights and industrial relations structures. The key aim is to create a ‘new integrated two-tier structure’ to replace existing employment rights bodies. This will make it simpler and more cost-effective for workplace disputes and grievances to be resolved. The minister has invited submissions from interested parties to the consultation process.
05 Dec 2011
EU Level: European chemical sector social partners sign sustainability accord
In September 2011, European social partners in the chemical sector adopted a declaration aimed at strengthening the European chemical industry and finding ways for this sector to address issues such as food shortages, emissions, and the need to save energy and protect the environment. The agreement on framework conditions for a sustainable chemical industry is based on recommendations of the High Level Group on the competitiveness of the chemicals industry, issued in 2009.
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
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.
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
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: 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.
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
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: 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
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.

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