Publications

The recent Commission Communication on /Modernising and improving social
protection in the European Union/ (COM (97)102 of 12 March 1997- EU9703113N
[1]) is merely the latest step in a long process of debate revolving around
the question of how systems of social protection can best be adapted to
today's changing economic, social and demographic situation. It is a debate
which has in the past clearly been influenced by the limited nature of
Community legal competence in this area. This is restricted to the
coordination of national social security schemes in cases where citizens
exercise their rights to free movement within the Union. Member states have
long resisted any attempts at a harmonisation of social protection systems,
which have developed very differently as a result of every country's
socio-economic, political and cultural heritage.

[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/commission-issues-communication-on-the-modernisation-of-social-protection-systems

A recent study published by the Organisation for Economic Cooperation and
Development (OECD) on the Belgian labour market and social climate has
recommended drastic changes to the country's institutional and socio-economic
structure. The most notable recommendations include a plea for greater
flexibility, less government intervention in industrial relations, lower
unemployment benefits, abolition of the indexation of pay to consumer prices
and easier procedures for recruitment and especially dismissal. In summary,
it may be said that the OECD largely advises Belgium to adopt the "American
model". This study was to a certain extent reinforced by a report from
European Commissioner Yves-Thibault de Silguy who also pleads for higher wage
differentials, lower employment costs and greater flexibility. Both studies
also stress the importance of low labour costs and high returns on
investment.

A recent collective agreement signed at Telecom Italia Mobile (TIM) provides
for the development of social dialogue and workers' participation, through
information and discussion on industrial policies and joint decision-making
on vocational training.

The Finnish Confederation of Salaried Employees (STTK) has recently begun
discussions about the next incomes policy agreement by proposing a reduction
in working time.

On 30 April 1997 the Ring of Free Labour (Ring Freiheitlicher Arbeitnehmer,
RFA), a group affiliated with the Austrian Freedom Party (Freiheitliche
Partei Österreichs, FPÖ), held its federal congress. One of the points of
debate was whether to develop into a trade union outside the Austrian Trade
Union Federation (Österreichische Gewerkschaftsbund, ÖGB). Since 1945 there
have been no trade unions outside the ÖGB. The debate was triggered by the
RFA's failure to achieve caucus status in the ÖGB. The minimum requirement
of at least four affiliated works council members in each of at least three
trade unions has not been met.

At the beginning of May 1997, the State Prosecutor's consultative committee
issued a report questioning the legality of the provision of a state
guarantee for a bank loan made to the General Workers' Union (União Geral
dos Trabalhadores, UGT). A final decision on whether to take legal action to
ascertain the legality of the action is now expected from the State
Prosecutor.

Part-time workers have traditionally not been allowed into the same
occupational pension schemes as full-time workers, but because there are far
more women than men among part-timers the practice was challenged on the
grounds of sex discrimination through the European Court of Justice (ECJ). In
1994, the ECJ ruled in a set of linked cases that the practice did amount to
sex discrimination. The judgment was not welcomed by the then Conservative
Government, so the Trades Union Congress (TUC) advised qualifying individuals
that they should register their cases with industrial tribunals. After a
number of test cases in the UK tribunals, it was ruled that part-timers who
had been denied access to occupational pension schemes could not claim
backdated pension rights any further back that two years prior to the ECJ's
ruling - that is, 1992. After appeals were turned down, the cases are still
waiting to be heard by the House of Lords.

The importance of continuing vocational education is increasingly being
recognised by policy-makers across the European Union, not only because of
its positive impact on maintaining the competitiveness of enterprises, but
also because of its potential contribution to the free movement of labour and
the improvement of employment prospects. This is particularly important in
the context of the evolving "information society". The Commission has given
particular emphasis and resources to continuing training through its
vocational training programme, LEONARDO, and in declaring 1996 the European
Year of Lifelong Learning.

Occupational pension schemes are becoming more and more important in Italy
even though their full implementation is still difficult, both because the
legal framework has not yet been consolidated, and because their form and
content must be defined by the social partners through collective bargaining.
The latter point still remains problematic, as no agreement has yet been
reached as to whether pension schemes should be developed at national or
local level. Nevertheless, evidence from recent collective bargaining at
national and local levels shows that occupational pension scheme issues are
growing in importance.

Two separate committees - a group of professors appointed by the Government
and a committee of economists from the Finnish social partners - published
reports in early May 1997 on the industrial relations implications of EU
Economic and Monetary Union (EMU) for Finland The social partners themselves
have adopted a joint declaration on EMU membership.