Publications

Intervention from the European Commission has compelled the Belgian
Government to amend its procedures for reducing social security costs (the
Maribel system) and to extend them across-the-board to all sectors of the
economy.

The phenomenon of illegal immigration in Greece has taken on an ever more
serious dimension. According to evidence from the Ministry of Public Order
the number of foreign workers without a work permit is now around 400,000,
and is expected to increase still further owing to the recent crises in
Albania and Bulgaria. The main countries of origin are Albania, Poland,
Bulgaria and Romania, as well as countries in Asia and Africa. However, there
are also around 30,000 additional foreign nationals who originate from EU
member states, and obtain a special written permit from the Ministry of
Labour.

One of the keenest debates in industrial relations in Europe is the
relationship between the institutional structure of the labour market and
economic performance and, in particular, the contribution of the wage
determination process to national competitiveness. Considerable attention has
focused on European economies, like Germany and Sweden, whose traditionally
centralised and coordinated bargaining systems have come under significant
pressures in recent years. The case of Ireland has attracted less attention.

A demonstration took place in Rome on 22 March backed by the three biggest
trade union confederations, CGIL, CISL, and UIL, in support of the
enforcement of the "trilateral" agreement on employment signed in September
1996.

On 26 February 1997, the French Cabinet adopted a bill aiming at rebuilding
social cohesion, which is to be debated in the National Assembly some time in
April 1997.

On 27 February 1997, a company-wide employment alliance (Beschäftigungspakt)
was signed at the automobile manufacturer Mercedes Benz. A whole package of
instruments should boost competitiveness and save the jobs of the 134,000
employees working for Mercedes Benz in Germany. The background to the
agreement is the increasing international competition between different
potential production locations, and the resulting need to cut costs.

Law 21/96, which aims to reduce the working week to 40 hours, has given rise
to labour disputes in certain sectors and some controversial statements. An
official communication released by the Secretary of State for Employment in
March attempts to shed light on the areas of concern.

The campaign is the latest in a series of political initiatives aimed at
improving the Danish vocational training system. Throughout the second half
of the 1990s, the Danish Government has reformed the system by increasing its
market and demand orientation, accompanied by increased financial allowances
for employees attending training. In the 1997 Financial Act, expenditure to
support companies undertaking projects aimed at planning vocational training
activities was raised from DKK 40 million to DKK 65 million. A further sum of
DDK 105 million is available to support companies which wish to improve
working life.

When the Social Democrat Government presented its bill on a new, general
unemployment insurance (prop 1996/97:107) on 13 March 1997 it had already
secured a parliamentary majority for the proposal through negotiations with
the Centre Party. It had also secured the support of the two major trade
union confederations,LO (Landsorganisationen) and TCO (Tjänstemännens
Centralorganisation) despite the fact that the two confederations were not
entirely enamoured with the proposals.

On 10 March, after 11 hours of talks, a "historic deal" was reached for
public sector council workers. The agreement, covering 1.5 million workers,
will harmonise conditions for manual worker s and white collar worker s in
local government for the first time.