Publications

One of the keenest debates in industrial relations in Europe is the
relationship between the institutional structure of the labour market and
economic performance and, in particular, the contribution of the wage
determination process to national competitiveness. Considerable attention has
focused on European economies, like Germany and Sweden, whose traditionally
centralised and coordinated bargaining systems have come under significant
pressures in recent years. The case of Ireland has attracted less attention.

In recent years there has been increasing public concern over what is widely
viewed as the spiralling remuneration of company directors. At a time when
companies are keen to promote pay schemes based on performance, too often the
links between directors' pay and performance are viewed as non-existent. In a
report on director's remuneration publicised in March 1997, the IOD is keen
to set the record straight. It argues that, although it recognises that
directors' pay in the largest companies has been on average high, it has been
relatively modest for those directors who work for small to medium-sized
enterprises. In fact, the median pay increase for this group of directors in
1996 was 4%, the equivalent of the increase in average earnings for all
employees in that year.

A current bill amending the 1971 Works Councils Act has focused attention on
the increasingly important role played by Dutch works councils in the
negotiation of terms of employment. However, although the function of the
trade unions is being somewhat eroded, even in the area of determining
primary terms of employment, the traditional division of roles between unions
and works councils has remained fundamentally intact.

The European Commission adopted its first annual report on equal
opportunities between men and women in the European Union at its meeting on 5
March 1997. The report: outlines the embodiment of equality principles in
European Union policies; examines gender differences in the EU labour market;
looks at Community actions to improve the interaction between work and family
life; explores initiatives to aimed at achieving a greater involvement of
women in decision-making bodies; outlines initiatives aimed a enabling women
to exercise their rights; and provides an update on the recommendations of
the 1995 Beijing Conference. Commenting on the publication of the report,
commissioner for social affairs Padraig Flynn said that this was the first in
what will be a series of annual reports covering the Union's policies on
equal opportunities as a whole. Commissioner Flynn stated that the aim of the
report was to give visible expression to EU policies on equal opportunities
between men and women, to encourage debate on the progress achieved and
policies to develop, and to act as a reference point for the Commission,
member states and countries applying for membership of the Union.

Intervention from the European Commission has compelled the Belgian
Government to amend its procedures for reducing social security costs (the
Maribel system) and to extend them across-the-board to all sectors of the
economy.

A demonstration took place in Rome on 22 March backed by the three biggest
trade union confederations, CGIL, CISL, and UIL, in support of the
enforcement of the "trilateral" agreement on employment signed in September
1996.

Law 21/96, which aims to reduce the working week to 40 hours, has given rise
to labour disputes in certain sectors and some controversial statements. An
official communication released by the Secretary of State for Employment in
March attempts to shed light on the areas of concern.

On 26 February 1997, the French Cabinet adopted a bill aiming at rebuilding
social cohesion, which is to be debated in the National Assembly some time in
April 1997.

On 27 February 1997, a company-wide employment alliance (Beschäftigungspakt)
was signed at the automobile manufacturer Mercedes Benz. A whole package of
instruments should boost competitiveness and save the jobs of the 134,000
employees working for Mercedes Benz in Germany. The background to the
agreement is the increasing international competition between different
potential production locations, and the resulting need to cut costs.

When the Social Democrat Government presented its bill on a new, general
unemployment insurance (prop 1996/97:107) on 13 March 1997 it had already
secured a parliamentary majority for the proposal through negotiations with
the Centre Party. It had also secured the support of the two major trade
union confederations,LO (Landsorganisationen) and TCO (Tjänstemännens
Centralorganisation) despite the fact that the two confederations were not
entirely enamoured with the proposals.