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1997's collective bargaining in the private sector is concentrating on three
main issues: 100% wage compensation during maternity leave; further
negotiations over the pension scheme initiated in 1991; and a limited wage
increase to allow for inflation. The social partners in the different
bargaining areas are largely in agreement on the content of the new
collective agreements, but the central social partner organisations - the
Danish Confederation of Trade Unions (LO) and the Danish Employers'
Confederation (DA) - still cannot agree whether the new collective agreements
should be of two or three years' duration.

On 6 February 1997, theSwedish Paper Workers' Union and the Employers'
Federation of Swedish Forest Industries told the conciliators Lars-Gunnar
Albåge and Rune Larson that they accepted their proposal for a national
collective agreement on wages for 1997. There had been two stumbling blocks
in the negotiations: the trade union's claim for a reduction of annual
working time by 25 hours; and the employers' insistence on an agreement that
would run for at least two years. The outcome is an agreement on wages only,
that runs for one year, backdated to 1 January 1997.

This action, which came as a complete surprise to the 3,100 employees, is
part of the French-owned motor manufacturer's "new industrial strategy" of
concentrating production to cut its financial losses. Michel de Virville,
managing director of Renault, announced the closure adding that:

In accordance with its 1995 collective agreement, Akzo Nobel has evaluated
the effects of "working time differentiation" and more flexible working hours
on employment. Since the effects appear positive, a 36-hour week is expected
to be introduced by 1 July 1997.

Telecom Eireann's plan to introduce personal contracts for 300 of its
managers who report directly to senior executives must be seen in the context
of the company's effort to implement a major programme of change to meet the
requirements of EU-driven deregulation requirements. A Telecom redundancy
package was also reactivated recently, one of several in recent years, as the
company seeks to reduce costs. It is also to enter talks with the union
representing general workers in Telecom, the Communications Workers Union, on
a proposed IEP 110 million cost savings plan.

On 4 February, following a mediation proposal by the Government, the national
metalworking collective agreement was signed. Negotiations had lasted for
nine months and were marked by moments of breakdown and conflict which
resulted in strikes. The metalworking settlement, which covers some 1.5
million workers, is Italy's most important industry-wide agreement. It will
strongly influence both the forthcoming renewals of contracts in other
sectors and the evaluation of the July 1993 tripartite central agreement on
incomes policy and collective bargaining structure, planned for June 1997.

In January and February 1997, many French towns were hit by public transport
strikes, affecting bus, tram and underground rail services. The strikers'
demands differed somewhat from town to town but certain themes have been
common. such as: improvements in working conditions; better protection from
crime and delinquency, two consecutive days off in a week; and less taxing
route schedules. Strikers have also been demanding pay rises and a reduction
in the working week to 35 hours or less, with the recruitment of new
personnel to take up the slack. Demands for the right to retire with full
pensions at the age of 55, along with systematic replacement of retiring
employees by new recruitment, have also been frequently voiced.

On 31 January 1997, the Second National Agreement on Temporary Employment
Agencies was signed. This is the second agreement reached in this sector
since the activity of temporary employment agencies (TEAs) in Spain was
approved in 1994. It will remain in force until 31 December 1999.

In February, the Communication Workers' Union (CWU) launched a consultative
paper aimed at influencing the pre-election commitments of both the
Conservative Party and Labour Party. The union, which is firmly against
privatisation of the Post Office, has called for legislation to turn it into
an independent corporation, with the level of dividends pegged at 40% of
post-tax profits. The union feels that its proposals will have equal appeal
to all political parties because of the weight of public opinion opposing
privatisation.

The European Commission has recently published its report on progress made in
the implementation of equitable wage policies since 1993. The aim of
providing all employees with an equitable wage was enshrined in the Charter
of the Fundamental Social Rights of Workers, which was adopted by 11 member
states (with the exception of the UK) in 1989. In accordance with the 1989
social Action Programme, the Commission published an Opinion in 1993, which
stated that the pursuit of an equitable wage must be seen as part of the
general drive to achieve higher productivity and employment creation, and to
foster good relations between the two sides of industry. The member states
were encouraged to give substance to their commitment made in adopting the
Social Charter, by working towards the establishment of an equitable wages
policy. This was to be achieved through greater labour market transparency
with regard to wages. The social partners were also called upon to contribute
to the achievement of this aim.