Publications

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.

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.

The findings of a Eurostat study entitled /Statistics in focus: income
distribution and poverty in the EU 12 - 1993/, published on 14 May 1997, show
that one out of six citizens and households in the 12 pre-1995 EU member
states live below the "poverty threshold". In more than half of these
countries, the figure was even higher - one in five. Even more alarmingly,
over one-third of poor households were working. These findings are drawn from
the first wave of statistics generated from the European Community Household
Panel (ECHP). The ECHP consists of a sample of 60,500 households selected
randomly in the 12 member states, using a harmonised questionnaire. This data
does not allow for a comparison of social change over time, but does provide
important information on the magnitude and dimensions of poverty and income
disparity in the European Union in the early 1990s. The figures show that
there are approximately 57 million socially excluded individuals in EU, a
problem affecting both more and less affluent member states.

May 1997 saw Unilever defending its pro-European stance to shareholders,
while the Confederation of British Industry (CBI) was also signalling its
willingness to work with the trade unions prior to the adoption of European
Union legislation.

Recent months have seen an intensifying and unresolved dispute over pensions
at Transports Metropolitans de Barcelona (TMB), including 14 days of strike
activity starting on 21 February 1997. This is the first time in four years
that all the unions represented on the TMB workers' committee have acted
jointly to claim what they understand as a right laid down in previous
agreements.

On 30 April 1997 theSwedish Union of Journalists (SJF) and the Swedish
Publishers' Association (TU) reached agreement on employed journalists'
author's rights in digital media.

At a time when public opinion seems to be losing interest in the campaign for
the May/June 1997 parliamentary elections (if opinion polls published in the
middle of May are to be believed, less than half the electorate said they
were interested in the debates and manifestoes) the trade unions and
employers' associations, while not telling their members which way to vote,
are voicing their main demands and preparing the forthcoming social agenda.

Presenting its 1996 results on 6 May 1997, Deutz AG, the German machinery and
tractor maker which almost collapsed last year, also publicised information
on the employees' contribution to its 1996 rescue package. The group is
undergoing a radical restructuring after a crisis last year, caused by big
losses on cement plants in Saudi Arabia. The deal was struck in May/June 1996
between management and the group works council [1] and included the
following:

[1] www.eurofound.europa.eu/ef/efemiredictionary/group-works-council-0

New wage agreements were reached on 25 May 1997 covering the Norwegian state
sector, the municipal sector and the municipality of Oslo. The new agreements
include a voluntary early retirement scheme for the age-group from 62-63
years and moderate wage increases. The wage settlement for the public sector
is therefore in line with the settlement in the private sector with regard to
total wage growth.

The high-level expert group on worker involvement was established in 1996
with the aim of developing solutions to break the 25-year deadlock on
European Commission proposals containing clauses on worker involvement, and
in particular, the European Company Statute (ECS). The Commission has
repeatedly stressed the importance of such a statute, enabling the
incorporation of companies at EU level, in order to improve the
competitiveness of European companies. Such proposals have long remained
blocked in the Council of Ministers, largely because of concerns from
countries with advanced employee participation systems which fear that the
ECS could be used by companies to circumvent national legislation in this
area. Similarly, a solution would have to avoid imposing foreign models of
employee representation upon member states where there is currently no
provision for the appointment of worker representatives to the boards of
companies.