Publications

During the fourth bargaining round for its 90,000 employees, the German car
producer Volkswagen AG announced the creation of several hundred new jobs.
According to an agreement between management and the IG Metall trade union,
the newly hired employees will be employed exclusively on a temporary basis
and will de facto be remunerated below the level of the company agreements.
Although being hired on the terms of the current company agreements, the
newly hired employees will not be eligible for the compensatory extra pay
component which was agreed when Volkswagen established the four-day working
week in 1994, and thus they will be paid 10% less than core employees.
According to the agreement, details will be fixed by the social partners at
establishment level. During the negotiations, the IG Metall rejected
Volkswagen's plans to pay the newly hired employees according to the
branch-level metalworking agreement. The compensation of the new temporary
staff will still be around 10% higher than the pay other employees receive on
the basis of the current branch-level metalworking agreement.

On 7 May 1997 the Labour Court gave its judgment in a case that has attracted
much attention. It concerned three ambulance drivers, two men and one woman,
who had been dismissed on the grounds of disloyalty to their employer, a
private company that runs the ambulance service in parts of southern
Stockholm on contract.

On 21 April 1997, trade unions, employers' associations and the Government of
Andalucia signed an /Agreement on employment policy and economic development
for Andalucia/. This is the third tripartite agreement to be reached in this
region. It covers a period of two years (1997-8) and involves an investment
of about ESP 200 billion .

In its recently published opinion on the conclusion of the Intergovernmental
Conference (IGC), the Union of Industrial and Employers' Confederations of
Europe (UNICE) underlines the need for the negotiating parties to "place a
strengthening of Europe's competitiveness at the heart of the (new) Treaty,
since promotion of competitiveness is the sine qua non to increase
employment". The promotion of employment can, according to UNICE, never be
treated in isolation. While European employers have repeatedly pronounced
themselves in favour of the Essen employment strategy, they are keen to
underline that responsibility for employment policy must continue to lie
primarily with the member states.

On 1 April 1997, the whole air transport sector, including cabotage(domestic
flights within other member states), was officially opened to EC-wide
competition. Cabotageno longer has to be the continuation of a flight
originating outside a particular country. So nothing now remains of Air
Inter's monopoly in France, which had already been severely challenged by the
European Commission in 1994, following a complaint from TAT, now one of
British Airways' French subsidiaries.

Based on the so-called Dual System (of Vocational Training) [1] (Duales
System), practical vocational training [2] in Germany is given at work in the
participating employer's establishment, backed up by statutory theoretical
training and general education provided in vocational training school [3] s.
The characteristic feature of the system is that the provision of knowledge
and skills is linked to the acquisition of the required job experience.

[1] www.eurofound.europa.eu/ef/efemiredictionary/dual-system-of-vocational-training-0
[2] www.eurofound.europa.eu/ef/efemiredictionary/vocational-training-2
[3] www.eurofound.europa.eu/ef/efemiredictionary/vocational-training-school

After three months' bargaining, the annual revision of the national
collective agreement covering banks and other credit institutions was
concluded in April 1997. It is the first collective agreement in Portugal to
grant five weeks' paid holidays, and also increases pay and improves
maternity and paternity provisions

With 270,000 persons either on early retirement, unemployed or otherwise
excluded from the labour market, theSocial Democrat-led Government is anxious
to involve the social partners in producing workable alternatives for job
creation for these groups of workers, rather than simply paying lip-service
to the idea. In the 1995 collective bargaining round, the social partners
were invited to elaborate on social clauses in their collective agreements.
Accordingly, 90% of the bargaining units in the are covered by the LO trade
union confederation and DA employers' confederation agreed on what have
become known as "Social Chapters", which contain framework provisions on job
creation on special terms of employment - ie, content of work, working hours
and pay - to be negotiated and elaborated upon at local and company level.
Similarly, the bargaining parties in government employment agreed on Social
Chapters in their 1995 collective agreements. Employees in local government
at regional and municipal level were also covered by a framework agreement
negotiated in May 1996.

On 15 April 1997 the Minister for Equal Opportunities Affairs, Labour Law and
Working Hours, Ms Ulrica Messing, declared that she intends to set up an
official committee to propose measures to improve the functioning of the pay
determination process. She hoped that some of these measures could come into
force before the start of next year's bargaining round.

On 8 April, AKZO-Nobel and the unions reached agreement on both working time
reductions and pay increases. The dispute, which had served to divide
AKZO-Nobel and the industrial unions since 13 March (NL9703108N [1]), was
resolved to everyone's satisfaction.

[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/akzo-nobel-abandons-a-standard-36-hour-week