Publications

Under a novel provision in the Finance Bill, 1997 which gives effect to this
year's Budget, employees are now entitled to tax relief on individual
lump-sum payments paid in the context of company restructuring. The payments
can be made by companies to their employees for agreeing to pay
restructuring, which must involve overall pay reductions of at last 10% of an
employee's average salary for the previous two years and must remain in force
for at least five years. While it is possible that basic pay could be hit by
the measure, the sort of payroll reductions envisaged are more likely to
effect non-basic pay items such as overtime, bonus payments and shift
allowances.

An Intergovernmental Conference is the method used by the Member States of
the European Union (EU) to agree on basic changes to the Treaties which
govern the workings of the Union. Changes to the Treaties are not carried out
within the framework of the EU itself, but by direct negotiations between the
governments of the Member States within the context of the IGC. The current
IGC is the sixth in the history of European integration.

In France, regulation of the working week is based on a piece of legislation
passed in 1936, which laid down a work schedule spread over five days.
Decrees on the application of this law made special provision, in each
sector, for the way in which these hours would be organised. The one
concerning banking dates from 1937.

According to the report /Reported industrial injuries in the building and
construction sector, 1993-1995/, from the Labour Inspectorate, the sector
experienced a 22% increase in industrial accidents over the course of
1993-1995. The general increase in industrial accidents in the period was
11%. Whereas approximately 5% of the workforce are employed in the building
and construction sector, this sector reported 8% of all industrial accidents.
Every month one fatal and 50 serious accidents occur in the sector, and 84
fatal accidents took place at all Danish workplaces in 1995. The increased
number of accidents in the building and construction sector, according to the
Labour Inspectorate, can largely be explained by the sector's 9% job-growth
and the improved reporting of industrial accidents.

The incidence of collective bargaining across a variety of sectors in
Portugal has tended slightly to decrease in the first quarter of 1997.
However, at the same time, the number of strikes has been increasing - often
to enforce reductions in working time

The Belgian Defence Minister, Jean-Pol Poncelet, has announced measures that
will prompt far-reaching changes in the personnel structure of the Belgian
armed forces, covering the army, navy and airforce. The policy directly or
indirectly affects about 40,000 military personnel. Mr Poncelet's plans are
innovative and rather unusual for the armed forces, which are not normally
known for their swift changes in organisational structure and personnel
management. The Minister feels, however, that the armed forces should not be
exempt from moves towards greater flexibility, currently a prominent theme in
labour negotiations in Belgium. Moreover, changes in the armed forces can
serve as an example for other sectors of the Belgian economy.

The /Seymour-Smith/ case has raised the issue of the legality of the two-year
qualifying period of employment before employees may bring a claim for unfair
dismissal. The /Observer/ in April reported that many employees are having
their employment contracts terminated only days before completing the
two-year period which is necessary to gain employment protection. At present,
full-time employees must have accumulated two years' continuous service,
while for employees who work between eight and 16 hours per week, the
qualifying period is five years.

A separate agreement for white-collar employees in the Luxembourg iron and
steel was concluded in March 1997, despite efforts in negotiations to create
a single agreement for both white- and blue-collar staff.

Taking into account significant changes in the international environment and
their impact on the Greek economy, the Government in March 1997 announced
that it would invite the social partners to a process of social dialogue on a
set of three themes: development, competitiveness and employment. The first
meeting is scheduled to take place towards the end of May. Participants in
the dialogue include representatives of Ministries, employer and employee
organisations from both the private and the public sectors and the Chambers
of Commerce, amongst others.

The principal collective agreement in the Dutch information technology and
office equipment sector, concluded in April 1997 between the employers'
organisation and one of the trade unions, has been criticised by the other
unions and four large software and service companies