Publications

In January 1997, the European Commission adopted a report on the Promotion of
Participation by Employed Persons in Profits and Enterprise Results,
including equity participation (PEPPER II). The report suggests that
profit-sharing schemes lead to higher productivity, whatever method, model
specification and data are used. The macroeconomic situation was found to
have little effect on government or social partner support for such schemes,
but recent debates relating to enhancing productivity and wage flexibility
are stimulating discussions on proposals. However, in most member states,
trade unions can be expected to oppose the use of financial participation
schemes to promote wage flexibility.

Recently-announced plans by banks to levy service charges on the accounts
into which employees' salaries and wages are paid, have resulted in trade
union protests and the dropping of the proposals.

At the end of January 1997, the Prime Minister ended the practice of issuing
pay guidelines to France's nationalised companies.

A recent decree-law issued by the Government has increased the national
minimum wage from 1 January 1997. The monthly rates have risen by up to 5%.
We review Portugal's minimum wage system and the reactions to, and
implications of, the 1997 increase.

In the Works Constitution [1] Act (Betriebsverfassungsgesetz) of 1972, works
councils [2] in Germany are given extensive rights of information,
consultation and co-determination [3]. The employer has to provide the works
council with both timely and comprehensive information on all matters related
to the discharge of its functions. In establishments with over 20 employees,
information must be given "in full and in good time" on reductions in
operations and the introduction of new working methods. Consultation rights
cover planned structural alterations to the plant and prospective changes in
equipment and working methods that affect job requirements, all decisions
relating to manpower planning, and individual dismissals.

[1] www.eurofound.europa.eu/ef/efemiredictionary/works-constitution-0
[2] www.eurofound.europa.eu/ef/efemiredictionary/works-council-2
[3] www.eurofound.europa.eu/ef/efemiredictionary/co-determination-2

At its plenary session of 13-17 January 1997, the European Parliament debated
two important measures relating to employee consultation in European
companies. After the European Works Councils (EWCs) Directive was passed in
1994, the Commission published a Communication on the future of employee
consultation in November 1995, in order to revive a legislative issue which
has been under discussion in various forms for over 15 years. Its aim was to
explore whether the model used for determining the structure and operation of
EWCs could be used in a wider context as a basis for making progress with the
long-delayed European Company Statute.

Unskilled young people aged between 20 and 24 must undertake training or work
experience programmes in order to maintain their right to receive
unemployment benefit, according to a recent amendment to the Act on Labour
Market Support.

Following parliamentary controversy, a law clamping down on illegal and
undeclared "clandestine" employment was adopted in February 1997.

According to the UGT trade union confederation, during the 1996 collective
bargaining round pay increases were generally settled in line with the Social
Concertation Agreement for that year.

As the legislation regulating the postal delivery monopoly will expire by the
end of 1997, on 18 February Germany's governing coalition parties proposed a
new law which would limit the exclusive licence of Deutsche Post AG, the
national postal service, to handling letters weighting under 100g, and this
only until the end of 2002. According to the Ministry responsible, this
proposal would reduce Deutsche Post's current monopoly to 87% of the standard
letter market. The proposed new law would also open completely the bulk mail
market to licensed competitors from 1 January 1998.