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 32 – Commission delivers recommendations to the member states

  IR Notes 32 – 20 may 2015
www.irshare.eu
 
 
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IR Share is a provider that shares information, documentation and expertise for HR managers and employee representatives. The IR Share agency operates by way of online publications, working groups, training devoted to relevant topics and a network of experts.


The team This issue was produced by Catarina Carvalho, Francisco Gomez Abelleira, Stepanka Lehmann, Ekaterina Markova and Frédéric Turlan. Find out more about the IR Share team on our website


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+33 (0)6 81 41 53 95 or E-mail: frederic.t@irshare.eu

 
  Interview
Thomas Busch, Co-chairman (IG Metall) of the Airbus Group SE works council

Does the establishment of the SE works council mark the successful conclusion of a community of European employees, or do national differences still exist?
In our group, no important decision is purely national because the interaction between the different sites and their specialisations is so strong. The employee representatives put forward the positions of their countries at the European works council. Very constructive discussions take place in the EWC in order to arrive at a joint position across the relevant national boundaries. In the EWC it is also important to maintain transparency about the different situations of the individual countries and to appreciate them! The various works council and trade union representatives work very well together. The cooperation between IG Metall and FO, the majority trade union in France, in particular works very well.


Does the creation of assembly lines in non-EU countries pose a risk to employment in Europe ?
I have often been asked why there was no opposition to the creation of assembly lines in China and the United States which, so it was assumed, could risk destroying jobs in Europe. We have supported this process to guarantee access to new markets and to secure growth for our sites as well. Airbus will in the near future be building 50 single aisle aircraft as part of the A320 family, and the bulk of production will take place at our European locations. At the same time, we have made sure that the components continue to be provided by our European plants. Our wish is for the European sites to remain at the forefront of technology and innovation, and for their employees to benefit from training to continuously improve their qualifications and skills.


Which rules need to be respected to ensure good cooperation between the German and French staff representatives?
One of the first obstacles is the language. We need to communicate in our own language and to be understood, which requires the assistance of interpreters and translators. In addition, we must work in a relationship of trust, which requires frankness and an open exchange of opinions and positions. This is what we do, and it is our strength. This was clearly evident within the negotiating body tasked with setting up the SE works council. The 26 negotiators from 17 European countries who took part in the talks – including some who had never previously sat on a European works council – rapidly recognised these values and our way of working. The SE agreement was adopted unanimously.

 
  Agenda

20-21 May
Brussels
Public Services Summit, organised by the public sector employers’ body CEEP.


4–5 June
Amsterdam
Seminar organised by Astrees, IR Share and SBI-FNV Formaat with funding from the European Commission on the coordination of European and national-level information and consultation procedures. This seminar is reserved for managers responsible for European works councils.
Tel.: + 33 (0)6 81 41 53 95.


8 June
Brussels
Conference organised by the Bruegel think tank on the European Commission’s strategy on a digital single market (Towards a digital single market: the European Commission strategy).


29 September
Paris
European Trade Union Confederation Congress.

 

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
Commission delivers recommendations to the member states

On 13 May, the European Commission published its country-specific recommendations with regard to economic policy for 2015 and 2016. It calls on the member states to take measures to create jobs and stimulate growth. The adopted communication explains what the Commission expects in terms of employment policy and labour market reform. Marianne Thyssen (see statement, in English) calls upon the countries to make structural reforms and focus their efforts on “youth and long-term unemployment”. These reforms are aimed at removing obstacles to new hirings on open-ended contracts, such as “rigid dismissal provisions”, and “lengthy labour disputes”, in order to avoid encouraging the excessive use of temporary contracts, as in Poland. Their aim is also for “real wages to move in line with productivity developments and reflect differences in situations across industry and companies”.


1. European Union
Social update

  • Migration policy: The European Commission on 13 May presented a communication on a European agenda on migration (in English) to promote legal migration and attract skilled workers to Europe in response to the decline in the working age population and to compensate for manpower shortages. Each country will be free to determine the number of people it allows to enter its territory, but the Blue Card scheme, designed to attract highly skilled third country nationals, has admitted only 16,000 people in two years and will be reviewed. A platform of dialogue with the social partners is to be established on this subject.

  • Digital single market: On 6 May, the European Commission presented its package to create a digital single market in order to make cross-border e-commerce easier, to strengthen the growth of digital networks, and to accelerate the free flow of data. The trade union federations have been lukewarm in their response to this strategy, stating that it overlooks the impact of transitions on employment (see reactions of UNI Europa and IndustriAll). The tone on the part of the employers’ organisations such as BusinessEurope, CEEP and Etno is much more positive.


Case law

  • New ruling on the definition of the term “establishment”: The European Court of Justice has added to its case law (see IR Notes 31). It has delivered a judgement in which it finds that Spanish legislation, which grants protection against collective redundancies when 10% of jobs in an “undertaking” having between 100 and 300 employees are under threat, is contrary to EU law (see press release). For the purposes of this calculation, and contrary to the directive – which calculates thresholds at “establishment” level – Spanish legislation takes into account the “undertaking” as a whole, that is to say including all its establishments. If, taking several establishments into account, the threshold of 10% is exceeded, the protection comes into play. This provision appears prima facie to be favourable to the employees, but the Court underlines that it may result in the employees of an establishment which, on its own, would meet the criteria for application of the directive, being deprived of the right to information and consultation.


Trade unions

Campaign against letterbox companies in the construction sector: The European Federation of Building and Woodworkers (EFBWW) will on 16 June unveil a campaign to denounce the phenomenon of letterbox companies being created in a member state where the social security costs are low (or in which the payment of social security contributions is inadequately monitored) without having any local economic activity.


2. Member states
Belgium

  • Night work in e-commerce: The government brought together the social partners in the sectors involved in online trading (logistics, distribution) at a “Round table on e-commerce” in order to initiate a social consultation on “a viable framework for night-time working” with a view to promoting the development of this sector.


Bulgaria

  • Pension reform: The Prime Minister, Boyko Borisov, wishes to raise the retirement age. The trade unions are completely opposed to this. The employers reject an increase in social security contributions. In the absence of an agreement, the current law provides for the retirement age (at present 60.8 years for women and 63.8 for men) to be extended by six months every year.


Czech Republic

  • Government wishes to strengthen social dialogue: Prime minister Bohuslav Sobotka is adopting a positive attitude in his dealings with the unions. Thus, a draft law provides for the state to contribute financially to the organisation of tripartite negotiations at national and regional levels. The minister of labour has proposed an amendment to the Labour Code which would allow trade unionists responsible for safety at the workplace to have their training costs reimbursed. This proposal awaits its second reading before parliament (further information in Czech).


Portugal

Spain

  • Wage agreement at national level: The social partners on 14 May signed a wage agreement which provides for a 1% pay rise in 2015, going up to 1.5% in 2016. Should inflation rise above 2.5% over the 2015-2016 period, the text provides for an automatic review. The agreement must be respected by the trade union and employers’ organisations which signed it (CEOE, CEPYME, UGT and CCOO) and their members.

  • Increase in women’s pensions: The council of ministers approved a bill to increase pensions for women with children, by 5% in the case of two children, 10% in the case of three children and 15% in the case of more than three children. The bill will go before parliament in the coming months.


3. Companies
European works councils

  • Safran: The European works council of the Safran group has published a press release in which the employee representatives use the example of the decision to close the Morpho Cards site in Germany to demand that the information and consultation procedure be respected, issuing a reminder that this procedure is “a prerequisite to the implementation of a project and cannot be carried out after”.

  • Deutsche Bahn: In a press release, the European works council reiterated that it is in talks with central management on guarantees for employees affected by the creation in Romania of a shared service centre for accounting.


Transnational negotiations

  • Michelin: “We are in the process of negotiating an international framework agreement with Michelin,” states Kemal Özkan, assistant general secretary of IndustriALL, in an interview (in French) on the Multinationals Observatory website.


4. Studies and reports

Minimum wage: The OECD has released a comparative study on “minimum wages after the crisis” in the 26 out of 34 OECD member countries that have a statutory minimum wage. The study shows that, in some countries, incomes of full-time minimum-wage earners can be well below the poverty line. In the Czech Republic, a lone parent with two children who is paid the minimum wage needs to work 80 hours per week to rise above the poverty rate line.



  • Comparative study of the cost of labour in the EU: The German statistical institute Destatis has published a comparative study of the cost of labour in the EU. Among the countries with the highest hourly rates are Denmark (42 euros), Belgium (41.10), Sweden (40.20), Luxembourg (35.70) and France (35.20). In the EU as a whole, the average cost is 24.40 euros. At 31.80 euros, Germany is in eighth place.

  • Employment rate: According to a survey carried out by Eurostat, the employment rate in the EU went up in 2014 to 69.2 %, although it still remains below its 2008 peak (70.3 %). The employment rate of women on the other hand reached its highest ever level, at 63.5 %.

 

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.

IR Notes
Building a social Europe together

The IR Notes newsletter gives everyone in Europe access to an independent, reliable and impartial source of information on topics involving industrial relations

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