Publications

Wage bargaining in the private sector commenced on 10 March 1997 with
negotiations between the Norwegian Confederation of Trade Unions (LO) and
theConfederation of Norwegian Business and Industry (NHO). So far the
question of voluntary early retirement has been the most difficult issue and,
after around one week, LO broke off the negotiations. Mediation was due to
commence the first week after the Easter holidays.

The Portuguese Government is planning to extend its "base-line" minimum
income system to the whole country, and there are calls for greater
involvement by the social partners in its operation.

On 20 February 1997, Parliament adopted a law establishing retirement savings
funds. This legislation has a dual objective. Firstly, to provide private
sector employees with a new retirement cover financed by capitalisation, and
secondly, to strengthen the Paris financial market and balance the growing
power of foreign institutional investors.

On 19 March 1997, the European Commission launched the second stage of
consultations with the social partners under the Maastricht Agreement on
social policy on the proposal for an EU policy to counter sexual harassment
at work. At this second stage, the social partners will be able to choose
whether to go down the route of negotiation - leading to a framework
agreement which can be given legal validity at the EU level. The alternative
would be to submit their views in anticipation of a policy initiative
emanating from the Commission.

In November 1996, the UK Government failed in its attempt to have the 1993
Directive on certain aspects of the organisation of working time (93/104/EC)
- which lays down specific requirements concerning weekly hours, holidays,
shifts and other patterns of work - annulled by the ECJ. The DTI launched
consultations with business organisations on implementation of the Directive
in December 1996, and the process was completed in March 1997. The DTI is now
analysing the responses, but is unlikely to produce the results until some
time after the 1 May general election.

The previously independent employee organisation, The Federation of Offshore
Workers Trade Unions (OFS), has decided to affiliate to The Confederation of
Vocational Unions (YS) from March 1997.

A working group set up by the Standing Committee of the European Central
Banks' Trade Unions met in Ferreira do Zêzere in March, and issued a
declaration relating to the rights of workers involved in the production and
circulation of the Euro.

Following a strike call issued by French public service trade unions, a
national day of action comprising strikes and demonstrations took place on 6
March.

Under the terms of the Works Constitution Act [1] (Betriebsverfassungsgesetz,
§§ 111f), a procedure known as "reconcilement of interests [2]"
(Interessenausgleich) aims at reconciling the positions of the employer and
the workforce in case of a proposed substantial alteration of the
establishment, or of bankruptcy. This involves weighing the respective
interests against one another, as well as reaching an agreement on the
procedure of change and the necessary human resource planning. Detailed
arrangements for the subsequent implementation of the changes are then
subject to the co-determination rights of the works council [3]. In cases
where the employer makes no attempt to arrive at an agreed reconcilement of
interests, or without compelling reasons fails to abide by one, employees who
are dismissed or suffer economic disadvantage as a result may claim
compensation for the loss of their job. A social plan [4] (Sozialplan) is a
programme drawn up in the form of a special works agreement [5]
(Betriebsvereinbarung) between the employer and the works council, and
resembles a special form of redundancy programme. It contains the
compensation packages and the human resource policies available to the
employees affected by the changes. There is no obligation to draw up a social
plan, provided that: the proposed alteration to the establishment consists
solely of dismissals; certain maximum limits in terms of a percentage of the
total workforce are not exceeded; or the case involves a newly formed
enterprise.

[1] www.eurofound.europa.eu/ef/efemiredictionary/works-constitution-0
[2] www.eurofound.europa.eu/ef/efemiredictionary/reconcilement-of-interests
[3] www.eurofound.europa.eu/ef/efemiredictionary/co-determination-rights-of-the-works-council
[4] www.eurofound.europa.eu/ef/efemiredictionary/social-plan
[5] www.eurofound.europa.eu/ef/efemiredictionary/works-agreement-0

In a Communication published in March 1997, the European Commission calls for
the modernisation, adaptation and improvement of social protection systems in
the member states. It argues that these systems, most of which were
established decades ago, no longer conform with the changing economic and
social conditions of today's society. The Commission sees a particular need
for social protection systems, which currently account for 28% of total EU
GDP, to be adapted to: