Publications

The announcement by the French auto manufacturer, Renault, of the closure of
its plant with a workforce of 3,100 in Vilvorde in the Flanders region of
Belgium, has caused a wave of indignation throughout Europe. The closure is
part of a European restructuring project which also includes the axing of
2,800 jobs in France. The response by the unions, of an unusually rapid and
massive nature, took the form of strikes in all the group's European plants,
and a series of joint demonstrations.

Portugal's major Lisnave shipyards are being privatised. New industrial
readjustment and work organisation strategies are reforming human resource
management and training standards. However, in a company that has strong
trade union traditions, discussions with employee representatives on
restructuring have been conducted in a relatively formal and
institutionalised way, with little participative input from the employees
concerned themselves.

All industrial relations activities in Spain have been at a standstill in
early 1997, pending the conclusion of negotiations between trade unions and
employers' organisations on labour market reform. However, initial agreements
have been reached on types of employment contract and on dismissal

The issue of the use of national and European subsidies to support employment
in a particular country, region or sector, has come under the spotlight in
recent weeks in the context of the controversy which has arisen from
Renault's announcement of the closure of its factory at Vilvoorde in Belgium
(see Record EU9703108F [1]). Renault's request for subsidies to expand its
operations in Spain was blocked by European competition policy commissioner,
Karel Van Miert, in order to investigate whether EU funding was being used to
transfer employment to a region offering lower wage and social costs.

[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined-working-conditions/the-renault-case-and-the-future-of-social-europe

The UK has been the main recipient of Toyota's European investment so far, at
its plant in Derby. If the UK were to lose the new investment to France, it
would be a huge blow to the Government which recently had to "rebuild some
fences" after the company announced in February 1997 that it might switch its
investment elsewhere in Europe if the UK did not join the single European
currency.

Wage bargaining in the private sector commenced on 10 March 1997 with
negotiations between the Norwegian Confederation of Trade Unions (LO) and
theConfederation of Norwegian Business and Industry (NHO). So far the
question of voluntary early retirement has been the most difficult issue and,
after around one week, LO broke off the negotiations. Mediation was due to
commence the first week after the Easter holidays.

On 20 February 1997, Parliament adopted a law establishing retirement savings
funds. This legislation has a dual objective. Firstly, to provide private
sector employees with a new retirement cover financed by capitalisation, and
secondly, to strengthen the Paris financial market and balance the growing
power of foreign institutional investors.

The Portuguese Government is planning to extend its "base-line" minimum
income system to the whole country, and there are calls for greater
involvement by the social partners in its operation.

Judging from a recent exchange of letters between a Dutch trade unions and
the Department of Justice, it would appear that cross-border cooperation
between unions, let alone their international merger, is beset with legal
difficulties.

The second part of the two-year National General Collective Agreement 1996-7
(EGSSE) came into force at the beginning of 1997. The principal purpose of
the EGSSE is to set minimum pay levels, which have a two-fold significance:
providing a framework for the social protection of unskilled workers and
acting as a guideline for negotiations at more specific levels - enterprise,
industry-wide or occupational. Whatever is agreed at the level of the EGSEE
covers, without exception, the whole of the private sector, as well as the
broader public sector (public administration is excluded). The wages of
public servants have until now been determined by the Government, but this
will have to change following Greece's ratification of International Labour
Organisation Conventions Nos. 151 and 154, which consolidate the right of
public servants to collective bargaining.