Publications

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.

Part-time work is an expression of the flexible organisation of working time.
Although it is often quoted as a "new" form of employment, its practice has a
long history in Greece. However, its legal framework has been moulded by the
special provisions of the so-called Law on Development of 1990 (Law
1892/1990, articles 37-9), which regulated for the first time the rights of
workers employed on part-time contracts.

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.

On 29 April 1997, the management and works council at Mohn GmbH, a subsidiary
of one of Germany's biggest media corporations, Bertelsmann, signed a works
agreement [1]- known as the "Pact for partnership 1997" - for the 1,700 or so
employees at the Mohn printing works in Gütersloh.

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

The negotiating teams representing the Union of Industrial and Employers'
Confederations of Europe (UNICE), the European Trade Union Confederation
(ETUC) and the European Centre of Enterprises with Public Participation and
of Enterprises of General Economic Interest (CEEP) reached a draft framework
agreement on part-time work in the evening of 14 May 1997.

On 13 January 1997, an agreement was signed on the introduction of new shop
opening hours. Since 1990 shops have been allowed to open on a 24-hours a day
basis in the wake of legislation to deregulate shop opening hours (article
42, Law 1892/1990) in line with the then Conservative Government's policies
on liberalisation. In late 1996, a number of businesses - members of the
employers' organisation, SELPE- proceeded to introduce later working hours on
Saturdays in Athens and its outer suburbs. In parallel, they took joint
action with other bodies (including the Athens municipal authority and the
Chamber of Commerce and Industry) to try to introduce Sunday shop opening. In
response, the unions announced that they would fight this initiative and that
they would demand amendments to Law 1892/1990.

Luxembourg's Economic and Social Council has recently responded to a
government request for its opinion, with a view to reforming the Law of 12
June 1965 relating to collective agreements and of the Grand-Ducal Order of 6
October 1945 dealing with the National Conciliation Office (Office National
de Conciliation).

This feature is drawn from a report to the Labour Relations Commission,
entitled /Competitive strategies and employee relations in the Irish retail
sector/ and written by Majella Fahy of the Graduate School of Business,
University College Dublin.