Publications

The first of the two recently-announced mergers, which is to take effect from
1 July 1997, is between the National and Provincial Building Society Staff
Association (NAPSA) and the Banking, Insurance and Finance Union (BIFU). The
National and Provincial Building Society was recently taken over by the Abbey
National, but NAPSA members voted to become part of BIFU rather than the
Abbey National's own staff association. Despite the strong support for BIFU
from NAPSA members, the company has refused to recognise the union. BIFU said
that "in the merger and conversion mania which is sweeping this country there
is little regard for the impact on staff. They are the casualties - that's
why it is important for unions to work together". BIFU, which has 115,000
members, hope that this will be the first of many mergers which will ensure
it a stronger role in the financial sector.

One of the most significant transformations of British industrial relations
in recent years has been the shift from national to enterprise-level
bargaining. Multi-employer bargaining arrangements have tended to be replaced
with multi-establishment, single employer bargaining, although there are also
signs of decentralisation within the individual firm. Similarly, within the
public sector (UK9702104F [1]), efforts have been made to fragment
traditional bargaining arrangements through the introduction of "Agency"
status and market-testing to the civil service and local authorities, and by
further institutional decentralisation through the promotion of National
Health Service (NHS) Trusts and local management of schools. These changes
have occurred alongside a dramatic decline in coverage of collective
bargaining, largely due to the decline of manufacturing employment and the
expansion of the service sector.

[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/public-sector-pay-policies

The first annual review of the social dialogue process at the European Union
level was adopted by the Commission on 6 May 1997. The review characterises
1996 as "a particularly fruitful and productive year" for the social dialogue
at European level. Despite this overall positive assessment, the review
highlights the fact that, despite endeavours towards the establishment of a
dialogue between the social partners, and in some cases, negotiation, this
represents only the background of a European-scale industrial relations
systems which is yet to take shape.

On 7 May 1997, a preliminary agreement (which requires ratification) was
signed for the renewal of the Italian national railworkers' contract. The new
contract, which comes into effect from January 1997 and will expire on 31
December 1999, deals with company recovery plans and pay.

The publication of an assessment commissioned by the National Assembly's
Finance Commission, and the campaign for the May/June 1997 general election,
have reopened the debate in France on the content and efficiency of the
Robien law, which seeks to encourage working time reductions and
reorganisation to create or save jobs. Politicians, economists, employers and
unions remain divided whilst the number of collective agreements at company
level based on the law is increasing.

Non-wage labour costs are those categories of the enterprise's total labour
costs comprising other than direct compensation. Today, non-wage labour costs
account for a very substantial and rising proportion of total labour costs.
Since increasing labour costs tend to encourage substitution away from labour
to more capital-intensive methods of production, rising non-wage labour costs
are an impediment to job creation. Furthermore, some non-wage labour costs -
such as social security contributions - drive a wedge between the labour
costs that companies pay and the money that workers receive, thus making
collective bargaining more difficult. Via unit labour costs - nominal labour
costs divided by real value added - non-wage labour costs are likely to have
some effect on companies' location decisions.

A frequently repeated statement in discussion on industrial relations is that
temporary employment will be much more common in the future. This assumption
is refuted in a recent report from the National Labour Market Board
(Arbetsmarknadsstyrelsen,AMS).

An agreement on resolving labour disputes out of court was signed in January
1996 by Spain's largest unions (UGT and CC.OO) and employers' associations
(CEOE and CEPYME), covering the period until 31 December 2000. The agreement
built on the experience in mediation and arbitration at a regional level that
had grown on the basis of joint quasi-judicial institutions formed in the
1990s. We review the complex system which now applies in this area.

Employment yielding less than ATS 3,740 gross per month or less than ATS 859
per week or ATS 288 per day, is defined as "minor". Below this threshold,
neither employee nor employer has to contribute to the national pension or
health or unemployment insurance. Only national accident insurance has to be
paid. Minor employment therefore does not earn an entitlement to unemployment
benefits, maternity benefits, a pension, or medical coverage. On the other
hand, because of the lower cost, minor employment may be an incentive for
employers to hire.

The Norwegian Confederation of Trade Unions (LO), the largest employee
confederation in Norway, held its four-yearly congress on 10-16 May 1997. The
most important issues were the question of continuing with the "Solidarity
Alternative", and the adoption of the Action Programme for the period
1997-2001. A discussion also took place between LO unions regarding the
confederation's policy towards the privatisation of public activities
(services), while the vice-presidency election received considerable
attention.