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IR Notes 15 – 10 September 2014
www.irshare.eu
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Note for readers of IR Notes
The entire IR Share team is delighted to be back with you after the
summer break! IR Notes is continuing its journey with new subscribers in
Germany (IG BCE) and in two new European works councils of
multinationals, Rio Tinto and Sanofi. We wish you happy reading and
remain at your disposal for any questions, requests for detailed
information or suggestions. Frédéric Turlan
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Interview
Amaia Otaegui Jáuregui Sociologist, researcher at Fondacion 1 de Mayo
What is your point of view on the
state of industrial relations in
Spain? They
are very difficult. The 2012 reform of the labour market has had a
very considerable impact on industrial relations by weakening the
role of collective agreements and reinforcing the position of the
employers. It has become much easier for the latter to regulate the
labour relationship by means of unilateral decisions. Social
dialogue inside companies is very difficult given the seriousness
and depth of the economic crisis, with mass unemployment still
affecting nearly 6 million people.
Has the reform of the labour market
allowed an improvement in competitiveness and
employment? For
the time being, the effects are not
visible. Most of the economic indicators are negative and, in terms
of employment, the reform has tended rather to destroy jobs,
particularly given the reduction in layoff costs.
What should we expect of government
and the social partners in the coming
months? Last
July, the social partners and the government adopted a declaration
in support of a new plan for employment and training. They are due
to meet this week to intensify their discussions and consider
concrete measures.
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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.
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Lead
story
The tasks of
the new European Commission
While the European Commission is beginning to take shape, with the nomination of the
28 European
commissioners, its work will not actually commence until November, once the
team has been appointed and endorsed by the European Parliament. In a social
context, four major topics will feature on the agenda of the forthcoming
Commissioner for Employment and Social Affairs: 1. Review of the “working time”
directive. Two impact studies have been launched and will be concluded in early
2015. Next year will also see the publication of an implementation report on the
directive based on the national reports filed by the Member States, including the
position of the social partners. Finally, a public consultation exercise will begin
in the autumn. With all these elements, the Commission should be able to present a
proposal to amend the directive in the course of 2015. Thus, in the best case
scenario, the current legislation should continue to apply until 2020. Apart from
that, the Commission will periodically have to deal with breaches in the Member
States which could end up before the European Court of Justice. 2. Application of
the new posting of workers enforcement directive. This text has to be transposed
into national law by the Member States, and the Commission must support them in this
task, being mindful of the need for the Member States to have proportionate
responses to combat “abuses”. 3. Monitoring recent national legislation aimed at
curtailing social tourism, such as in Germany or Great Britain. 4. Review of
information and consultation rights. The Commission has completed its “fitness
check”, which has allowed it to ascertain the effectiveness of these rights provided
by several directives. However, in some respects, it should initiate a consultation
of the European social partners with a view to revising these directives, although
the review would be limited to certain technical aspects. At the same time, the
Commission should also launch its report on the application of the revised directive
on European works councils next year, with a preparatory study to verify if the aims
of the directive have been achieved. These are four important points on the European
commissioner’s future road map.
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1. European
Union
Social
update
- Support from the European Globalisation
Adjustment Fund: On 5 September the European Commission
put forward a proposal to grant aid to Belgium to the tune of 911,934 euros from
the European Globalisation Adjustment Fund (EGF), to help 752 former employees
of the steelmaker Carsid S.A. to find new jobs (see Commission press
release). On 22 August it proposed that the EGF be mobilised to assist
479 workers in Genk made redundant by the car manufacturer Ford and its
suppliers with finding re-employment (see Commission press
release). On 12 August the Commission likewise suggested that support be
provided to 300 workers made redundant in the metal sector in the Valencia
region (see Commission press
release).
- Working time directive: At
the beginning of July the European Commission launched a consultation
involving the national social partners concerning the application of directive
2003/88 relating to working hours. The replies will allow the Commission to gain
an insight prior to initiating the process for reviewing the directive at the
beginning of 2015.
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Case law
- Compatibility between an actuarial factor
and the principle of equality between women and men: The
European Court of Justice has ruled in a case concerning the use, as an
actuarial factor, of the different life expectancies of men and women (CJEU
3 September 2014, case C-318-13, X). An employee who was injured in an
accident at work had received a lump-sum payment of compensation under the
national social security system of close to 4200 euros. However, he submitted a
claim for the amount of just under 279 euros, plus late-payment interest
thereon, as the difference between the compensation he received and that payable
to a women of the same age in a comparable situation. This discrepancy is
explained by reference to an actuarial calculation which takes the different
life expectancies of the sexes into account. The Court had never before
expressly ruled in its case law on the legality of taking actuarial factors
based on sex into account when determining payments granted under a statutory
social security system. This has now been done: the application of such an
actuarial factor cannot lead to the lump-sum benefit paid to a man being “less
than that which would be paid to a woman of the same age and in a similar
situation.”
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2. Member
states
Croatia
- New employment legislation:
The European Labour Law Network in its recent
highlights section announced the adoption of a new law (Labour
Act 2014) which entered force on 7 August 2014 and was the result of
protracted negotiations between the social partners. The provisions concerning
European works councils and employee involvement in European Companies (SE) and
European Cooperative Societies (SCE) are no longer included in the law, but are
dealt with separately. With regard to working hours, the text allows for
exemptions from weekly working time limits, subject to collective agreement,
permitting an average 45-hour maximum to be set over a period of four months. In
other respects, it has become more difficult to initiate collective
redundancies.
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Czech
Republic
- Minimum wage: The social
partners and the government on 4 September failed to reach agreement on the
proposal to increase the minimum wage in 2015 by 700 koruna (25 euros).
Currently standing at 8,500 koruna (309 euros), the minimum wage had gone up by
500 koruna (18 euros) for the first time since 2007, in August 2013. In June,
the three parties had already agreed a rise of 500 koruna (18 euros), which the
Confederation of Industry has now refused to go beyond.
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Estonia
- Wages: The Estonian Trade
Union Confederation organised a conference on 27 August on ways of accelerating
wage rises (information in
Estonian).
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France
- Law on gender equality:
The new
law No. 2014-873 dated 4 August 2014 concerning real equality between women
and men” contains several measures with social implications, such as
sharing the benefit paid by the family allowance agencies to compensate for the
loss of income of a parent who gives up employment to take care of his/her
child. By sharing this benefit between the two parents, the law aims to
encourage fathers to take parental leave (which is extended if shared by both
parents).
- New law to encourage employee
buyouts: Law
No. 2014-856 dated 31 July 2014 relating to the social and solidarity-based
economy is intended to encourage ownership of small and medium-sized
enterprises by their employees and reinforces the sanctions envisaged by the
so-called “Florange law” by authorising the labour inspectorate to reject an
employment protection plan if the employer (having at least 1,000 employees) has
failed to comply with its obligation to find a new owner. In other respects, the
law creates an obligation to inform the employees in the event of a stake
representing more than 50 % of the shares in a company being sold, otherwise the
sale will be rendered invalid. The objective is to allow the workforce to submit
a purchase bid.
- Improving social dialogue:
On 29 July, the labour minister sent a policy
paper (in French) to the social partners, inviting them to initiate
negotiations at interprofessional level on the quality and effectiveness of
social dialogue in companies and improving worker representation. The talks will
begin in September and are scheduled for completion by the end of the year so
that the outcomes can be included in a draft law. Particular priorities are to
find specific forms of employee representation in small enterprises, to
streamline the various obligations surrounding collective bargaining and to
simplify the structure of the various staff representative bodies.
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Germany
- Occupational health and safety:
The German cabinet on 27 August 2014 adopted a recast
ordinance on occupational health and safety (Betriebssicherheitsverordnung).
The reform aims to improve industrial safety when work equipment is being used
by employees and to protect third parties. In parallel, it reduces regulatory
constraints on SMEs in order to improve implementation of the legislation, while
at the same time exempting businesses from certain formalities. The reform also
seeks to make provision for the continuing employment of older workers.
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Romania
- New law on insolvency procedure:
The preceding legislation on insolvency procedures (law No.
85/2006), in the event of an employer’s insolvency or bankruptcy, derogated from
the provisions of the labour code. In fact, it allowed for the liquidator to
authorise the termination of employment contracts as an emergency measure
without applying the procedure applicable to collective dismissals. However,
several cases were determined not to comply with directive 98/59 on collective
redundancies. As a result, the new law No. 85/2014 on insolvency procedures and
the prevention of insolvency (published on 25 June 2014) revokes the previous
law and imposes a new set of rules compatible with the provisions of the EU.
According to the new law, the decision to terminate employment contracts can be
taken by the judicial administrator or the liquidator only with due regard for
the information and consultation obligations envisaged in the case of collective
redundancy by directive 98/59.
- Day of leave to care for children’s
health: Law No. 91/2014, published on 3 July 2014,
grants parents or a child’s legal guardian a day’s unpaid leave to ascertain the
state of health of their child. The day’s leave is granted when requested by the
parents or the legal guardian. Its provision must be justified by a medical
certificate from the child’s general practitioner indicating that the child has
undertaken a medical examination. Failure to comply with this new rule on the
part of the employer constitutes a violation punishable by a fine issued by the
labour inspectorate.
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Spain
- Validation of the collective negotiation
system: The constitutional court (Sentencia
119/2014) on 16 July issued an important decision by declaring
constitutional the most controversial provisions of the 2012 labour market
reform. Thus, the court validated: 1. The supremacy of company level collective
agreements over sectoral collective agreements; 2. The new employment contract
which permits a trial period of one year; 3. Compulsory referral to arbitration
before the national council for collective negotiation in cases where companies
seek to withdraw from collective agreements.
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3.
Companies
European
Works Councils
- Manpower: The high court
of Paris (tribunal de grande instance (TGI) de Paris) on 17 July 2014 issued an
order
rejecting an appeal lodged by several trade unions which were contesting the
procedure for appointing the members of the special negotiating body (SNB)
initiated by the management of the British subsidiary of Manpower, believing
that it was the responsibility of the French management to initiate such a
negotiation. The management in France (that is to say of the country having the
most employees in Europe) was in fact approached by the French trade union CGT
as well as the Italian unions CGIL, CISL and UIL to commence a negotiation.
However, the group explained in its defence that, several years earlier, it had
appointed the British management to represent it in connection with setting up a
European works council. This argument was accepted by the court. Another appeal
has been filed by the British trade union Unite with the Central Arbitration
Committee in the United Kingdom. The first meeting of the SNB was held on 4
September in London.
- Lafarge/Holcim: With the
merger of the Swiss and French cement groups Holcim and Lafarge in full swing,
the IndustriAll Global Union international trade union federation and the
European Federation of Building and Wood Workers on July 22 met representatives
of the restricted committees of the European works councils of both groups. The
trade unions voiced their concerns about jobs and, in a press
release, denounced the process of information and consultation in the
two entities as inadequate for discussion of the situation.
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Transnational agreements
- BNP Paribas: The French
bank BNP Paribas will, on 16 September, sign its second European agreement with
the UNI Europa European trade union federation and the European Federation of
Credit Establishment Managerial Staff (Fecec). Following on from the first European
framework agreement on employment management, the new accord focuses on
equality at work. The social partners will then begin work on a third
negotiation about preventing psychosocial risks.
- Indosat: The UNI Global
Union trade union federation and the Indonesian telecommunications group have
signed an international framework agreement (see UNI press
release). This is the fourth such agreement signed with an Indonesian
company.
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4. Studies
and reports
- Unemployment rate stable in
July: In the European Union, the seasonally adjusted
unemployment rate was 10.2 % in July 2014, unchanged over June 2014, but down on
the 10.9 % figure of July 2013, according to a Eurostat press
release on 29 August.
- Unemployment among citizens from non-EU
countries: According to a Eurostat press
release of 30 July, the unemployment rate for non-EU citizens (21.3%)
aged 20 to 64 was more than twice the level of that for citizens of the
reporting country (10.0%), referred to as “nationals”. As regards employment,
the rate for non-EU citizens aged 20 to 64 in the EU stood at 56.1%, while it
was 68.9% for nationals.
- Focus on trade unionism in
Germany: The Friedrich Ebert Foundation has published a
study (“The DGB Trade
Unions since the Crisis“) which analyses the successes and weaknesses of
Germany’s principal trade union confederation, the DGB, which has more than 6
million members. The authors believe that a shift could take place in the
division of labour among the DGB trade unions, and that the role of the DGB as
umbrella organisation could be accentuated in the coming years.
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Phrase of
the fortnight
Treaty on
stability, coordination and governance
More commonly known as the European budgetary pact, this treaty
is a mechanism adopted by 25 Member States of the EU to enhance convergence within
their economic and monetary union, particularly within the euro area. Its objective
is to obtain budgets that are in balance or in surplus. Signed on 2 March 2012, it
entered force on 1 January 2013, having been ratified by 12 states in the
euro area. It will be incorporated in the treaties within the next five years. In
terms of impact on industrial relations, this treaty underpins the austerity and
cost-cutting measures undertaken by the Member States which are translated in
particular in the public sector by job cuts, wage freezes and, more generally, cuts
in social services. It should not be confused with the stability
and growth pact adopted in 1997, which encourages members of the euro area
to coordinate their national budgetary policies and avoid the occurrence of
excessive public deficits. See the Eurofound
European Industrial Relations Dictionary (in English) for further
information.
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