Publications

Presenting its 1996 results on 6 May 1997, Deutz AG, the German machinery and
tractor maker which almost collapsed last year, also publicised information
on the employees' contribution to its 1996 rescue package. The group is
undergoing a radical restructuring after a crisis last year, caused by big
losses on cement plants in Saudi Arabia. The deal was struck in May/June 1996
between management and the group works council [1] and included the
following:

[1] www.eurofound.europa.eu/ef/efemiredictionary/group-works-council-0

New wage agreements were reached on 25 May 1997 covering the Norwegian state
sector, the municipal sector and the municipality of Oslo. The new agreements
include a voluntary early retirement scheme for the age-group from 62-63
years and moderate wage increases. The wage settlement for the public sector
is therefore in line with the settlement in the private sector with regard to
total wage growth.

The high-level expert group on worker involvement was established in 1996
with the aim of developing solutions to break the 25-year deadlock on
European Commission proposals containing clauses on worker involvement, and
in particular, the European Company Statute (ECS). The Commission has
repeatedly stressed the importance of such a statute, enabling the
incorporation of companies at EU level, in order to improve the
competitiveness of European companies. Such proposals have long remained
blocked in the Council of Ministers, largely because of concerns from
countries with advanced employee participation systems which fear that the
ECS could be used by companies to circumvent national legislation in this
area. Similarly, a solution would have to avoid imposing foreign models of
employee representation upon member states where there is currently no
provision for the appointment of worker representatives to the boards of
companies.

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 .

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.

The majority of pilots' trade unions represented in the Air France group took
part in a relatively successful strike from 20-23 May 1997, protesting at the
setting up of a two-tier salary system.

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.

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.

Over 1995-7, certain collective agreements in Spain have allowed employers to
recruit workers at lower wages than workers in the same job grade who are
already employed by the firm (the "dual pay scale"). Companies' objectives in
reducing labour costs and workers' objectives in creating employment seem to
be threatening the principles of solidarity and equality that have
traditionally been maintained by the unions.

After 10 days of boycotts and two hours of strike action among the cleaners
in the LKAB mine in northern Sweden, the Business Services Associations on
the one hand and the Building Maintenance Workers' Union and the Union of
Service and Communication on the other, accepted a draft collective agreement
on wages from the mediators on 16 May 1997. The agreement covers 25,000
employees in 600 companies. It means that the average monthly salary will be
raised by SEK 370.