Publications

After 10 months of discussions and three months of intense negotiations, in
April 1997 the main trade unions and employers' associations in Spain for the
first time reached an agreement on labour market reform. This is a bipartite
agreement which reduces the cost of dismissal and attempts to promote secure
employment. The Government is likely to introduce legislation to support the
reform.

A new pay award announced in April by the Agricultural Wages Board (AWB) for
England and Wales after two days of talks, gives farm workers a minimum wage
of GBP 4.12 per hour. The AWB is the only wages council - setting statutory
minimum pay rates for a particular sector - left in the UK after the rest
were abolished in 1993 (UK9703112F [1]). When the Conservative Government was
originally looking at abolishing the wages councils in 1986, the proposal was
delayed because employers were not in favour of them being abolished, as they
at least set some minimum floor of standards with which employers could work.
The case for this was made most strongly by agricultural employers, and this
was why the AWB was left in place after 1993.

[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/a-national-minimum-wage-who-what-and-why

On 6 April 1997, the Norwegian Confederation of Trade Unions (LO) and the
Confederation of Norwegian Business and Industry (NHO) agreed on a proposal
for an agreement which they could recommend to their members in this year's
bargaining round. LO won acceptance for its demands on the extension of the
voluntary early retirement scheme, while the pay increases agreed centrally
may be described as moderate.

The President of the French Republic's decision to dissolve the National
Assembly and to call early legislative elections in May-June 1997 has
prompted numerous reactions from the unions, which fear the beginning of a
shift towards liberal economic policies.

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.