IR Notes

Working together to build a social Europe

An independent, reliable and impartial source of information on industrial relations and labour law in Europe.

IR Notes 14 – Strategy for linking green growth and employment policies

  IR Notes 14 – 16 July 2014
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The team This issue was produced by Francisco Gomez Abelleira, Sofia Lampousaki, Alain Lefebvre and Frédéric Turlan. Find out more about the IR Share team on our website.


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  Note to our readers

IR Notes is taking a summer break! The team will all be back with IR Notes 15 on 10 September. We wish you a pleasant and restful holiday period. Let us not forget that the right to paid annual leave is “regarded as a particularly important principle of European Union social law” by the Court of Justice of the European Union. Nevertheless, even during our publishing pause, we remain at your disposal (contact@irshare.eu / + 33 (0) 6 81 41 53 95).
Happy holidays!

 
  Interview
Jean François Kondratiuk, employee representative on the supervisory board of PSA Peugeot-Citroën

How were you appointed to the supervisory board of the French automotive group PSA Peugeot-Citroën?
Following the intervention by the French state in 2012 to support the group, which was in financial difficulty, I was appointed to the supervisory board as the employee representative, at the same time as Louis Gallois, representing the state. It was a requirement of the French government. Since then, Parliament has adopted the law of 13 June 2013, which obliges companies to make one or two seats, depending on the number of supervisory board members, available for employee representatives. Thus, the European works council, of which I was secretary, held a vote on 18 June and entrusted me with representing the workforce on the supervisory board.


What were the implications for your mandate as secretary of the EWC?
In keeping with the law, I was obliged to step down from all my trade union offices as the latter are not compatible with my mandate as employee representative on the supervisory board. Which is what I did on 31 May 2013, and on 18 June I was elected to the supervisory board.


What benefit does this represent for the employees?
I have been a Force Ouvrière activist since 1981. I experienced the events of 1982 with Chrysler, and with Peugeot in 1989, the economic crisis… So my knowledge of the company should bring common sense and experience to the supervisory board, which often brings together people from outside the group with a theoretical understanding, but who do not know the business.


What links will you have with the EWC?
We have signed an agreement, a “new social contract”, at group level which establishes a joint strategic committee comprising trade union representatives and members of the liaison committee, which is the executive committee of the EWC. The joint strategic committee meets as soon as a strategic project has been submitted to the supervisory board. This arrangement allows the EWC to be more involved with group strategy – about which it will be permanently informed – which is indispensable for social dialogue on strengthening the group’s competitiveness.

 
  Diary

10 to 16 August
Sofia
43rd Congress of the International Transport Workers Federation (ITF)


10 to 12 September
Dublin
Industrial Relations in Europe Conference – IREC, organised jointly with the Research Network on Work, Employment and Industrial Relations (RN No. 17) of the European Sociological Association (ESA). The subject is “The future of the European social model – new perspectives for industrial relations, social and employment policy in Europe?”


24 to 26 September
Brussels
Conference organised jointly by the European Trade Union Confederation (ETUC) and the European Trade Union Institute (ETUI), entitled “Europe at a crossroads. Which way to quality jobs and prosperity ?“.


1 to 3 October
Bordeaux
9th Congress of the International Network for Research on Organizations and Sustainable Development (RIODD – Réseau international de recherche sur les organisations et le développement durable) organised by the Centre for Comparative Labour and Social Security Law (COMPRASEC) of the University of Bordeaux on the subject of “The environment and work: how do they relate?”.


7 October
Paris
Conference on European sectoral social dialogue organised by the French associations RDS (Réalités du Dialogue social) and Europe and Society.

 

IR Notes is a fortnightly newsletter produced by IR Share and its network of experts, and is available in several European languages. It offers Europe-wide monitoring of employment law, labour relations and employment policy. It is available by subscription for 15 euros per month ; 150 euros per year (excluding tax), via the IR Share website. IR Share is a privately- owned, independent, apolitical company whose aim is to inform and assist all players involved in social dialogue within and outside Europe. It has been the correspondent organisation for France and Luxembourg of the Dublin Foundation since 2009 and for Bulgaria since 2014.

 

Lead story
Strategy for linking green growth and employment policies

On 2 July the European Commission published a communication aimed at “tapping into the job creation potential of the green economy”. Its intention is to secure the ecological transition by connecting the rise of the green economy with employment and job market policies. The Commission underlines that integrated strategies linking green growth and employment “exist in only a small number of Member States, with the majority having a disjointed and fragmented approach” ─ hence this initiative on the Commission’s part. Interestingly, the communication emphasises the importance of sectoral social dialogue in this connection, in particular when it comes to managing restructuring, and also highlights the “emerging risk linked to the development of green technologies” which “needs to be considered”, the Commission explains, indicating that “potential new hazards need to be carefully assessed and integrated in prevention strategies”. The initiative was welcomed by the European Trade Union Confederation (ETUC) in a press release in which the general secretary, Bernadette Ségol, herself stresses that “the European Commission’s Green Growth Package is forward-thinking and progressive” and declares that “Trade unions want to work with the European Commission and employers to create a fair transition to a more environmentally sustainable economy”. On the employers’ side, BusinessEurope is altogether more critical (see press release, in English), in particular concerning the Commission’s target for raising resource efficiency of 30% between now and 2030 (compared to a 20% increase from 2000 to 2011) if businesses increase “the efficiency of production processes”, adopt “innovative solutions to save resources”, develop “new business models” or offer “more sustainable products and services”. In the opinion of BusinessEurope, “The EU should abstain from any target rather than having an inappropriate one”. Moreover, “The use of resources should not be penalised, while the efficient use should be [the] objective” for business.


1. European Union
Legislative proposal

Social update

  • Committee on Employment and Social Affairs of the European Parliament: At its recent meeting on 7 July, the new Committee on Employment and Social Affairs of the European Parliament conducted elections to appoint a chair and vice-chairs. It is Thomas Händel (European United Left), a German MEP of left-wing party Die Linke, who will, in his third term in office, become the committee’s chair, replacing Pervenche Bérès from France (S & D group), who is joining the Committee on Economic and Monetary Affairs. Noteworthy arrivals among the new members are Agnes Jongerius of the Netherlands (S & D group), who has been a researcher at the University of Utrecht since 2012, having been president of the Dutch trade union confederation FNV from 1987 to 2012, along with Claude Rolin (EPP group), who had been general secretary of the Confederation of Christian Trade Unions (CSC) from 2006. Another strong personality is the former labour minister of Portugal, Maria Joao Rodrigues (S & D group). She was a key influence behind the Lisbon Strategy, which aimed to make Europe the most competitive knowledge-based economy in the western world.

  • Aid for redundant employees: The European Commission on 11 July proposed to mobilise 960,000 euros from the European Globalisation Adjustment Fund in order to help 280 workers made redundant by 661 businesses in the food and beverage service sector in Aragón (Spain) to find new jobs (see press release). It also, on 10 July, proposed to grant 1.6 million euros to the Netherlands to facilitate the return to work of 475 workers made redundant in the construction sector (see press release).


Sectoral social dialogue

Civil aviation: On 5 June the European social partners in the civil aviation sector represented on the European sectoral social dialogue committee (within the air crew working group) adopted a joint declaration against EU-based flags of convenience in aviation after Norwegian Air International (NAI), an airline registered in but not operating from Ireland and employing crew on contracts from non-European countries such as Thailand, obtained a licence to fly on transatlantic routes. On 14 June Emmanuel Jahan (CEEP), president of the sectoral social dialogue committee, sent a letter in English to the Directorate General for Employment and Social Affairs of the European Commission overtly criticising the favourable position of the Directorate General for Mobility and Transport towards NAI and the pressures imposed on players in European social dialogue in the sector.



  • Audiovisual and live performance sectors: The trade union federations in the audiovisual and live performance sectors (UNI MEI, FIM, FIA, EFJ) have adopted a European recommendation on improving the work-life balance (see UNI Europa press release, in English).

  • Metal industry: The European employers’ organisation for the metal industry, CEEMET, has published a brochure entitled “Industrial competitiveness for a social Europe” (in English) which contains a blueprint for restoring competitiveness. The document highlights in particular all the European initiatives in the field of industrial policy which should not be implemented, such as a legislative proposal on managing restructuring, and the protection against musculoskeletal disorders (MSD).


Case law

2. Member States
Germany

  • Law on the minimum wage passed: On 11 July the Parliament definitively adopted the law on establishing a national minimum wage applicable to the whole of Germany (Gesetz zur Stärkung der Tarifautonomie (Tarifautonomiestärkungsgesetz), but with more exemptions (e.g. for certain categories of employees, allowance of transition periods) than the initially envisaged bill. The minimum wage will be introduced on 1 January 2015 and has been set at 8.50 euros gross per hour. At first, it will apply to workers who are not covered by an industry-level collective agreement, then to all employees from 2017 onwards. Starting in 2017, the minimum wage will be reviewed every two years by a commission formed for this purpose comprising representatives of the social partners, without political interference.


Finland

  • Programme of the new government: The new government led by Prime Minister Alexander Stubb published its programme (in English), on 24 June. In particular, it provides for a reform of pensions in 2015, with the aim of reducing the deficit and prolonging the continuation of working life, a reform of vocational training, better social protection for self-employed workers and measures to curtail the use of zero-hours contracts.


Greece

  • Endorsement of most of the employment-related measures directed by the Troika: The Council of State on 24 June issued a ruling (No. 2307/2014) which judged that law 4046/2012, which transposed a series of measures envisaged by the second memorandum of understanding between Greece and the Troika (ECB-European Commission-IMF), does not comply with the Constitution in only one respect: that it cancels the trade unions’ option of unilateral recourse to arbitration before the national mediation organisation. All the other measures are found to comply with the Constitution and international social law, including the reduction in the minimum wage by 22% to 32% in the case of employees aged under 26; cancellation of the marriage bonus; restriction of the scope of collective bargaining (including the minimum wage, which is no longer negotiated by the social partners) and even the time limit imposed on collective agreements.

  • Endorsement of the decision to close down the public service broadcaster: The Council of State, in a ruling (No. 1901/2014) has judged that the decision taken by the government in 2013 to close down the ERT public service broadcaster (see article published by Eurofound, in English) complies with the Constitution and European law. In the opinion of the court, ERT is regarded as a state employer which is exempted from the scope of directive 75/129 and law 1387/1983 on collective redundancies.


Luxembourg

  • Reform of student grants adopted: The Parliament definitively adopted a reform of student grants (draft law 6670 and press release, in French), after the preceding arrangement was judged to be discriminatory by the Court of Justice, which found that children of cross-border workers should not be excluded from this support. The financial allowance is made up of two parts: one comprises a loan, the other a grant (commonly known as the ‘Subsid’) consisting of different elements (basic amount, mobility, social criteria, etc.).


Spain

3. Companies
European Works councils

  • Air France KLM: The management of the Air France KLM group and its European works council on 12 June renewed the protocol for the European works council within the Air France KLM group. The document provides for a specific consultation procedure on “strategic” issues having a major impact on the organisation of the group, its subsidiaries and/or its employees. They will be submitted to a “group strategy commission” of the EWC which will be consulted “at an appropriate time, that is to say in advance, by suitable means and with relevant content”, allowing the management “to take into account the comments, observations and opinions of the staff representatives”. The members of the EWC further have access to an “internal computer library” containing all the information issued by the management.

  • Manpower: A case has been brought before the high court of Paris (Tribunal de Grande Instance de Paris) involving the American recruitment company Manpower and the UNI European trade union federation, the French CGT and the British Unite The Union. The matter was heard on 3 July before the court, which is due to return its ruling on 17 July. The CGT and the three Italian trade unions (CGIL, CISL and UIL) on 23 May 2013 sent a request to the management of Manpower France, the country with the largest number of employees in Europe, in order to obtain the information needed to justify the establishment of an EWC. In the absence of a reply within six months, the trade unions delegated the management to set up an EWC on the basis of the fall-back rules contained in directive 2009/38. However, as the Unite union had also approached the British management of Manpower to request the establishment of such a body a short time after the French and Italian unions, the group believed it was still within the deadline. It therefore asked all the European trade unions represented in the group to appoint negotiators as members of the special negotiating body. The issues to be determined are whether the set deadline for replying to the trade union request has been exceeded or not ─ which would oblige the company to set up a “statutory” European works council, without negotiation ─ and whether the EWC is to be constituted, with or without negotiation, under the law of France (the country with the most workers) or of Great Britain (the seat of European management identified by the group).

  • Recently added online, agreements on employee involvement at SAP SE and Schneider Electric SE. European works council agreements of Gras Savoye and PerkinElmer.


Restructuring

  • Coca-Cola Iberian Partners: The Spanish high court (Audiencia Nacional) has quashed the restructuring decision taken by Coca-Cola Iberian Partners, which closed 11 sites and laid off 1,190 employees (see press release, in Spanish). The judgement requires the company to reinstate the workers who lost their jobs in April and to pay them the salaries owed since their dismissal. The court criticised the management for failing to meet its information and consultation obligations relating to transfers of undertakings. The judgement has come under criticism and could be overruled by the supreme court, to which the matter has been referred by management. A former labour minister has been appointed to attempt mediation.


Transnational negotiations

  • Inditex: The Inditex textile group, which is based in Spain, on 8 July renewed its global framework agreement (GFA). The accord provides for the application of fundamental rights to all the company’s employees and to those in its supply chain, in total roughly one million workers employed by some 6,000 subcontractors around the world. “This agreement is a model of mature industrial relations with a multinational corporation,” commented Jyrki Raina, general secretary of IndustriAll (see press releases of IndustriAll and Inditex).

  • Unilever: The Unilever group and its European works council in January 2014 adopted guidelines to be respected with regard to anticipating and managing restructuring.


4. Studies and reports

  • EU social review: As happens every year, the European Trade Union Institute and the European Social Observatory have published a review of “Social developments in the European Union” (in English) which assesses the effects of the austerity policy and presents analyses of the proposed introduction of a European minimum wage and pan-European unemployment insurance scheme.

  • Mobility in Europe: The European Commission has published a document on recent trends in the geographical mobility of workers in the EU (in English). The report illuminates the fall in immigration in the countries affected by the economic crisis (down by 51% in Portugal and Slovenia, and by 49 % in Spain) and a strong surge in the countries which were spared and have low unemployment (up by 71 % in Germany and by 24 % in Austria).


Phrase of the fortnight
CEEMET

This acronym has since 2004 stood for the European employers’ organisation of the technology-based and metal industries (Council of European Employers of the Metal, Engineering and Technology-Based Industries), first created in 1962 under the name Western European Metal Trades Employers’ Organisation (WEM). Its role is to defend the industrial policy interests of the around 200,000 employers which are members of one of its affiliated national organisations and which employ some 13 million people in Europe. CEEMET has been a member of the European social dialogue committee for the metal sector since it was founded in 2001 and has as its social partner the IndustriAll Europe trade union federation. Its positions are closely examined because of the significance of the metal sector in Europe. See Eurofound’s European Industrial Relations Dictionary (in English) for further information.

 


Désabonnement

IR Notes

An introduction

IR Notes is an independent, reliable and balanced briefing note on industrial relations and labour law in Europe.

Published in 6 languages and sold by subscription, this newsletter gives you access to concise, targeted and practical information on the major themes of both social Europe and transnational social dialogue.

With our experts and national correspondents, we adopt a dynamic, practical and useful approach to European social monitoring.

As a result, we select the most relevant topics, which are a source of cross-disciplinary and inspiring ideas.

Each issue includes:

  • An interview with someone working in the field of industrial relations who offers their unique take on a current social issue, an agreement, or an example of best practice.
  • Updates on EU legislative and case law developments.
  • Monitoring of labour law developments in EU Member States.
  • Updates on the latest developments concerning European Works Councils and SE Works Councils.
  • Lastly, IR Notes keeps you informed about the main studies and research carried out on the world of work.

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