Publications

On 9 April 1997, the airline company Deutsche Lufthansa AG, the Union for
Public Services, Transport and Communication (Gewerkschaft Öffentliche
Dienste, Transport und Verkehr, ÖTV) and the German Salaried Employees'
Union (Deutsche Angestelltengewerkschaft, DAG) concluded a package deal,
which ended months of industrial action. The DAG agreed to be covered by the
Lufthansa-ÖTV collective agreements signed in October 1996. Furthermore, the
deal provides for an increase in the profit-sharing bonus of DEM 100 and an
overtime pay rise for cockpit employees. From September 1997, the trade
unions have the right to terminate the wage agreements in the event that
Lufthansa does not keep special rules which were jointly established. In
addition, Lufthansa, the ÖTV and the DAG agreed on the continuation of the
existing collective agreement which maintains the status quo for cabin crew,
as well as the existing general agreement on pay grades for ground staff, for
another three years.

Speaking at the Institute of European Affairs in Dublin, Padraig Flynn, the
commissioner for employment, industrial relations and social affairs,
outlined his priorities for the Intergovernmental Conference (IGC) and
provided the audience with an update of the continuing negotiations leading
up the Amsterdam summit in June (EU9704117F [1]).

[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/progress-of-the-intergovernmental-conference

The Finnish Government has recently agreed on some of the principles of a
"training guarantee" scheme, starting with funding for a training allowance
for long-term unemployed people.

Over the past few months, the Governor of the Bank of Italy, Antonio Fazio,
and the Abi banking employers' association have urged the Government to start
negotiations with employers' associations and trade unions in order to deal
with the problems linked to the low profitability of the Italian banking
sector. High labour costs and redundancy are the main themes of debate. On 8
April 1997, a first meeting took place between an Abi delegation and a
ministerial group, which represented the official opening of negotiations
that will also involve the trade unions in the near future.

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