Publications

On 2 April 1997 it became public that during the ongoing collective
bargaining at the German automobile company, Volkswagen, management had made
a proposal to create a new "internal temporary employment agency"
(Zeitarbeitsgesellschaft). Depending on the incoming orders, the agency's
newly hired employees would be set to work at the different Volkswagen
plants. Volkswagen proposed to pay the new temporary employees under the
terms and conditions of the current branch-level collective agreement in the
metalworking industry.

The recent proposal by the EU agriculture commissioner, Franz Fischler, to
alter the method of granting Community aid to olive farmers fell like a
bombshell in Spain. This reform would not only have serious economic
repercussions, but would also lead to the loss of at least 70,000 jobs,
according to some trade unions in the sector. Farm-owners' organisations,
cooperatives, trade unions and the regional and central administrations have
rejected the proposal and are preparing all kinds of protest action.

In April 1997, the Norwegian Supreme Court found the Government not guilty of
abusing compulsory arbitration in order to stop industrial conflict. The
Federation of Offshore Workers' Trade Unions (OFS), which brought the
domestic lawsuit against the Government, lost on all counts.

In the framework of negotiations for the two-year National General Collective
Agreement covering the years 1996 and 1997, the GSEE (Greek General
Confederation of Labour) trade union confederation placed on the agenda of
discussions with the employers its demand for the reduction of weekly working
hours to 35 without a reduction in pay. The negotiations led to the creation
of a working party of technical experts from both sides of industry to study
the issue and its effects on employment and competitiveness.

An international comparison of labour disputes from 1986 to 1995 by /Labour
Market Trends/ (April 1997) highlights that the UK had the fourth-lowest
strike rate of the 22 member countries of the Organisation for Economic
Cooperation and Development (OECD) in 1995. Only Austria, Switzerland and
Germany had a lower level of strikes than the UK. The UK strike rate has been
below the OECD average since 1986 and below the EU average since 1990.
Between 1991 and 1995 the average rate in the UK was 24 working days lost per
1,000 workers - an 82% fall over the previous five-year period. But the UK's
rise in the international "league table" of two places since 1994 took place
despite an increase in the strike rate itself.

New legislation proposed by the Portuguese Government on the regulation of
part-time work is currently under discussion amongst the social partners. The
most important points include the definition of part-time work, the
requirement that part-timers should have employment contracts in writing and
pro rata minimum pay.

In the Netherlands, there has been a long struggle over how responsibilities
for administering social security should be divided between social partners
and the government. The Dutch social security administration has been
reorganised - most recently from March 1997 - under pressure of criticism
about organisations in which the social partners play a dominant role.
Financing the social security system has become a structural problem in the
relations between the Government and the social partners. This has become
especially manifest in conflicts concerning the level at which social
security contributions should be set.

A Presidential Decree on the establishment of European Works Councils (EWCs)
in Greece was signed on 20 March 1997. Its purpose is to transpose into Greek
law EC Directive 94/45/EC on the provision of information and consultation to
employees in Community-scale undertakings and Community-scale groups of
undertakings, which, under the terms of the Directive, should have been
transposed by 22 September 1996. The Presidential Decree takes up the option
provided in the Directive of not applying its provisions to maritime workers.

Under a novel provision in the Finance Bill, 1997 which gives effect to this
year's Budget, employees are now entitled to tax relief on individual
lump-sum payments paid in the context of company restructuring. The payments
can be made by companies to their employees for agreeing to pay
restructuring, which must involve overall pay reductions of at last 10% of an
employee's average salary for the previous two years and must remain in force
for at least five years. While it is possible that basic pay could be hit by
the measure, the sort of payroll reductions envisaged are more likely to
effect non-basic pay items such as overtime, bonus payments and shift
allowances.

An Intergovernmental Conference is the method used by the Member States of
the European Union (EU) to agree on basic changes to the Treaties which
govern the workings of the Union. Changes to the Treaties are not carried out
within the framework of the EU itself, but by direct negotiations between the
governments of the Member States within the context of the IGC. The current
IGC is the sixth in the history of European integration.