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During the 1990s, the tendencies within Italian enterprises towards a greater
participation of workers and their representatives have become more
pronounced. This has applied to direct, economic/financial and institutional
participation, and here we review recent developments, focusing on the second
and third types of participation.

In 10 sessions over the course of five months, the Metals, Mining and Energy
Workers trade union (Gewerkschaft Metall-Bergbau-Energie, GMBE) and eight
associations together comprising the metalworking sector within the
Bundessektion Industrie of the Austrian Chamber of the Economy
(Wirtschaftskammer Österreich, WKÖ) have thrashed out a collective
agreement on working time flexibilisation covering 229,000 employees (162,000
waged, 67,000 salaried) in industrial establishments. However, one of the
eight associations - Fachverband der Metallwarenindustrie- has been blocking
ratification of the deal since mid-March.

At the end of March 1997, Ericsson Telecom (part of the Swedish Ericsson
Group) workers in Norrköping learned that their employer had made a
preliminary agreement with two US companies, SCI Systems and Solectron, to
sell the production of printed circuit cards part of the business. The
company wanted the sale to take place before the summer.

An agreement, signed on 11 April 1997, will allow French lorry drivers to
retire at 55.

On 9 April 1997, the airline company Deutsche Lufthansa AG, the Union for
Public Services, Transport and Communication (Gewerkschaft Öffentliche
Dienste, Transport und Verkehr, ÖTV) and the German Salaried Employees'
Union (Deutsche Angestelltengewerkschaft, DAG) concluded a package deal,
which ended months of industrial action. The DAG agreed to be covered by the
Lufthansa-ÖTV collective agreements signed in October 1996. Furthermore, the
deal provides for an increase in the profit-sharing bonus of DEM 100 and an
overtime pay rise for cockpit employees. From September 1997, the trade
unions have the right to terminate the wage agreements in the event that
Lufthansa does not keep special rules which were jointly established. In
addition, Lufthansa, the ÖTV and the DAG agreed on the continuation of the
existing collective agreement which maintains the status quo for cabin crew,
as well as the existing general agreement on pay grades for ground staff, for
another three years.

Speaking at the Institute of European Affairs in Dublin, Padraig Flynn, the
commissioner for employment, industrial relations and social affairs,
outlined his priorities for the Intergovernmental Conference (IGC) and
provided the audience with an update of the continuing negotiations leading
up the Amsterdam summit in June (EU9704117F [1]).

[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/progress-of-the-intergovernmental-conference

The Finnish Government has recently agreed on some of the principles of a
"training guarantee" scheme, starting with funding for a training allowance
for long-term unemployed people.

Over the past few months, the Governor of the Bank of Italy, Antonio Fazio,
and the Abi banking employers' association have urged the Government to start
negotiations with employers' associations and trade unions in order to deal
with the problems linked to the low profitability of the Italian banking
sector. High labour costs and redundancy are the main themes of debate. On 8
April 1997, a first meeting took place between an Abi delegation and a
ministerial group, which represented the official opening of negotiations
that will also involve the trade unions in the near future.

In its bill, presented to Parliament on 15 April 1997, the Government states
that the policy of austerity which has been in operation for last few years
has been so successful that it is now possible to focus more on its most
important goal - to halve the rate of unemployment to 4% before 2000.

After the Brussels Industrial tribunal (BE9704208N [1]), on 4 April it was a
French court's turn to find Renault's management guilty of disobeying the law
in a ruling which could well postpone the closure of the Vilvorde plant.

[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/tribunal-decision-annuls-renault-closure