Publications

On Thursday 27 February 1997 Renault announced - completely unexpectedly -
the closure of its Belgian production plant in Vilvoorde by July of this
year. As a result, more than 3,000 Renault employees and an estimated 1,500
employees in direct supply companies will lose their jobs. There is a general
consensus that the decision ignored all legal rules and procedures concerning
factory closures. This includes ILO and OECD procedures as well as national
codes of conduct, and European Union and national legislation on collective
redundancies and works council rights. These regulations lay down that
employees have to be notified before a decision about a factory closure is
made and informed about the ways in which the company plans to deal with the
consequences for the employees.

In an ongoing industrial dispute, trade unions have accused the public sector
corporation, EPI (the Italian Postal Organisation), of not respecting
collective agreements and commitments on employment.

On 13 March 1997, the readers of Sweden's leading morning paper /Dagens
Nyheter/ learnt about an unusual appeal, drawn up jointly by the pugnacious
chair of Handelsanställdas förbund (Commercial Employees' Union), the
leaders of the two employers' organisations in commerce and the managing
directors of three leading retail chains.

According to the study/, Analysis of the prevalence of home-based telework in
Denmark,/ carried out by Andersen Management International for the Ministry
of Research and Information Technology, it is estimated that the potential
number of people carrying out home-based telework will increase over the next
decade, from 9,000 at present to 250,000. The study defines home-based
telework as situations where 20% or more of work is carried out from a
home-based workplace using information technology. Home-based telework is
expected to be more efficient if it is limited to two to three working days a
week.

On 13 March, after long debate between ministries, trade unions, and
provincial governments, the national Government submitted a reform package
covering the Arbeitslosenversicherungsgesetz(Unemployment Insurance Act), the
Fremdengesetz(Aliens Act), the Aufenthaltsgesetz(Residence Act), the
Ausländerbeschäftigungsgesetz(Aliens Employment Act), and the
Asylgesetz(Asylum Act). The aim is to homogenise the laws, to reduce
immigration to an absolute minimum compatible with human rights and the
Geneva Convention on the Rights of Refugees, and to improve the integration
of the resident foreign population. The reform package is now open to public
debate, and will be submitted to Parliament before the summer. Changes are
intended to take effect as of 1 January 1998.

Prior to the election of industrial tribunal members in December 1997, five
trade union confederations have requested an overhaul of the voting system in
order to prevent the election of judges from the far Right.

Since the beginning of the 1990s, the German system of centralised sectoral
collective bargaining (Flächentarifvertrag), which guarantees all employees
in a certain sector more or less the same basic income and working
conditions, has been under increasing pressure. With growing
internationalisation of capital and markets and an increasing pressure of
international competition, more and more employers and economic experts have
been demanding a more decentralised and company-related collective bargaining
system. German unification in 1990 brought a further dynamism to the debate.
Originally, all the relevant social partners agreed to transfer the western
collective bargaining system to eastern Germany, but because of the
continuing immense economic problems. more and more eastern employers became
dissatisfied with that decision. For instance, in the eastern metal industry
the proportion of employers who are members of an employers' association
decreased from 60% in 1991 to 36% in 1994 - though still covering between 55%
and 65% of the employees ("Ostdeutsche Tariflandschaften", Ingrid Artus and
Rudi Schmidt, in Die Mitbestimmung No. 11, p. 34-36 (1996)).

At the end of February 1997, the social partners in Luxembourg's hospital
sector concluded a new collective agreement in a "cooperative" atmosphere.
The deal provides for pay increases and a reduction and reorganisation of
working hours for 5,000 employees.

On 5 March 1997, the Italian Prime Minister, Romano Prodi, informed the
political parties and social partners about the report drawn up by the
"Commission for macroeconomic compatibility of social expenditure", a
committee of experts established by the Government and chaired by Professor
Paolo Onofri. The proposals for reform deal with all the key elements of
public spending: healthcare, public assistance, and, of particular interest
for the industrial relations system, pensions and labour market policies.
This document drew critical reactions from the trade union confederations,
while the evaluation from the Confindustria employers' confederation was
fairly positive.

On 18 March 1997, eight trade unions and 12 employers' organisations in
industry concluded an agreement on cooperation and the regulation of pay. Its
aim is to promote growth, profitability and competitiveness in industry. As
such, claim the parties, it will provide the necessary prerequisite for a
reduction of unemployment and form the basis for improvements in pay and good
working conditions.