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 33 – Changing the creation of European standards

  IR Notes 33 – 3 June 2015
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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 and Frédéric Turlan. Find out more about the IR Share team on our website


Subscribe to IR Notes Via the IR Share website or by calling us on:
+33 (0)6 81 41 53 95 or E-mail: frederic.t@irshare.eu

 
  Interview
Rachid Brihi, lawyer, Brihi & Koskas associates

You defended the European works council of Transdev in its action to be consulted on the issue of SNCM (see Companies). What do you take away from the decision of the Versailles court of appeal, which did not accept your case?
This judgement contains a major contradiction. The court maintains that the decision taken by the management of Transdev, which led to its subsidiary SNCM being placed in receivership, could have “significant economic and social consequences eventually for the entire group and therefore for the European employees”. Therefore, the possible winding-up or sale of this “small” French subsidiary, which represents only 2.5% of the group’s workforce, could be a subject for consultation with the European works council.


But this is not the sense of the ruling…
Indeed, the court makes this observation, but at the same time rules out the transnational element – which derives from the fact that the decision may have an impact on the European employees – on the grounds that the departure of SNCM from the group’s scope of consolidation is only hypothetical at this stage, and that it would be best to await the decision of the commercial court as regards this subsidiary’s future. But would it make any sense for the European works council to bring an action after the commercial court has given its decision? None at all – which is why it was necessary to intervene beforehand. It is the job of the urgent applications judge to uphold the useful effect of a consultation with the EWC! Furthermore, it is clear from reading the facts and the file that SNCM is almost certainly destined to leave the consolidated Transdev group by way of a sale. If the court considers that the disposal of SNCM may have important consequences for the group’s employees, the EWC’s jurisdiction should have been recognised.


In other words, a purely national matter, without any international connection, can be brought before the European works council?
This is what the court of appeal is suggesting. If recital 16 of the directive – which allows questions concerning a single country, but having important consequences for the whole group, to be included in the EWC’s jurisdiction – was integrated in the body of the directive, the court would perhaps have been less cautious. The fact that this recital is included in the European works council agreement was taken into account but, in our opinion, not given sufficient consideration.

 
  Agenda

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).


9 June
Paris
Seminar by Europe and Society and RDS (Réalités du dialogue social) on “The intervention of the Court of Justice of the European Union in European social dialogue“.


9 June
Brussels
Debate organised by the European Trade Union Institute around the publication of the book “Work-related risks. So as not to lose your life while earning your living“.


11-12 June
Budapest
First seminar in a European project on collective bargaining systems in Europe by the INLACRIS expert network: “Collective bargaining in times of crisis”. For information contact: Astrees and Christophe Teissier.


23 June
Brussels
ETUI monthly forum entitled “What social face of the new EU trade agreements?“, with Pascal Lamy.


29 September – 2 October
Paris
European Trade Union Confederation Congress.

 
  Editorial

The entire IR Notes team had the pleasure of counting among its readers the members of the European works council of the Solvay group and members of the executive committee of the EWC of Thales. You can also contribute to our development and especially to preserving our independence by helping us to spread the word about IR Notes in your networks. All suggestions and words of advice welcome! We would be delighted to hear from you directly.


Best regards
Frédéric Turlan
frederic.t@irshare.eu

 

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
Changing the creation of European standards

European Commission First Vice-President Frans Timmermans (photo) has presented a series of documents intended to “boost transparency in the EU decision-making process [and] improve the quality of its laws”, including those dealing with industrial relations and social affairs. 1/ A communication explains how it plans to meet these objectives, but without “deregulating or deprioritising certain policy areas or compromising the values that we hold dear”, such as social protection and fundamental rights. 2/ A working document outlines the state of play with regard to the Commission’s Regulatory Fitness and Performance (Refit) programme. It contains a chapter on the reviews and evaluations of the social directives currently in progress. 3/ A decision on establishing the “Refit platform” in order to encourage dialogue with the stakeholders and the member states with a view to improving EU legislation. Details of how it will operate are stated in a communication. 4/ A decision to establish a “Regulatory Scrutiny Board”, which will assess the quality of impact assessment reports that must be prepared by the Commission for every initiative having “significant economic, environmental or social impacts”. 5/ A proposal for an interinstitutional agreement, which provides for an impact assessment to be carried out when the Council or the Parliament “significantly” changes a Commission proposal as part of the legislative process. The European Trade Union Confederation (ETUC) sees this as a “clear attempt to put a brake on the right of elected MEPs and Ministers to take democratic decisions”. It takes the view that these proposals “will make the legislative procedure longer, costlier and more bureaucratic” (see press release). The employers’ organisations, which are very receptive to the objectives of “Better Regulation” and a reduction of the burden on SMEs, largely support the Commission’s initiative (see the press releases of BusinessEurope, FoodDrinkEurope, CEEMET).


1. European Union
Social update

  • Maternity leave: The European Parliament has adopted a resolution urging the European Commission to encourage the Council to re-open discussions with the Parliament in order to revise directive 92/85, which grants maternity leave lasting 16 weeks. The recast has been deadlocked since 2010, when the Parliament called for leave to last for 20 weeks and to be paid in full at the last salary rate. This position was untenable for the member states, which have not attempted to find a compromise since (see press release).

  • Paternity and parental leave: In the same resolution (see above), the Parliament voices its support for “paid paternity leave of at least 10 working days” and a review of the directive on parental leave, which is “not reaching its target of reconciling private and professional life”.

  • Minimum wage in road transport: The European Commission has launched an infringement procedure against Germany concerning the application of its minimum wage legislation to road haulage companies domiciled outside German territory which are required to pay the minimum wage to their drivers pursuing their activity in Germany (see IR Notes 25). In the Commission’s eyes, this measure “restricts the freedom to provide services and the free movement of goods in a disproportionate manner” (see press release).


2. Member states
Austria

  • Call for tenders: The government has presented a draft law concerning the use of tendering in order to combat social dumping in subcontracting chains (also see the government’s explanations). In connection with public sector contracts, the public authorities will be able to choose the best offer rather than the cheapest price.


France

  • Limitation of employee monitoring: A judgement of the supreme administrative court (Council of State) bans the use by a private company of software to uncover offences of a paedo-pornographic nature committed by employees. The processing of “personal data relating to offences, convictions and security measures” may only be implemented by public authorities and not by a private company.


Germany

Law on single trade union bargaining: The German Bundestag has definitively adopted the law on unified wage bargaining (Tarifeinheitsgesetz), which will enter force on 1 July (see Bundestag press release). The text aims to avoid the rivalry between unions inside the same company. If two unions wish to negotiate separate collective agreements (to cover different categories of personnel for instance), they are obliged to join forces. Failing this, only the majority union will be permitted to conclude a collective agreement with management. Opponents of the law claim that it deprives minority unions of the right to strike because German law only allows a strike to be called by those unions which are signatories to a collective agreement, and only at the point when the collective agreement is up for renegotiation.


Portugal

Spain

  • Collective dismissals in the public sector: The supreme court (administrative chamber) has delivered a judgement concerning collective dismissals which states that, in order to justify redundancies, it is not sufficient for public bodies to demonstrate that they are faced by a budgetary deficit or a reduction in their revenues of 5% over the year or of 7% over the past two years. Public bodies must prove that their financial situation has become permanently unsound and negative.


3. Companies
European works councils

Transdev: A judgement by the court of appeal in Versailles confirms the decision handed down in the case brought by Transdev’s European works council against the group’s management. The EWC criticised the management for failing to consult it following Transdev’s decision to ask one of its subsidiaries, the shipping company SNCM, to repay a loan, thus causing SNCM to be put into receivership (see IR Notes 21). This is one of the first judicial decisions in Europe to interpret a European works council agreement which incorporates recital 16 of the directive. The court underscores that “matters which require the prior consultation of the European works council must (…) incorporate an international or European dimension, by their purpose or by their effect. In the absence of any international element, the consultation of the EWC is not mandatory”. Since the court did not find any international element in this case, it examined whether Transdev’s decision had a significant impact on the European workforce. In the eyes of the court, this was not the case. Therefore, the EWC did not need to be consulted.

> Also take a look at: A statement by the European works council of Deutsche Post DHL calling on the management to respect the “principle of social partnership” / The signing by the management and EWC of Unicredit of a joint declaration (in Italian) on responsible sales which lays down the shared principles which should underpin the group’s commercial approach.


European Companies (SE)

Dassault Systèmes: On the occasion of its conversion to a European Company (SE), the Dassault Systèmes group (6,000 employees in the EU) has established a Committee of the European Company (CEC) by way of an agreement signed on 10 April. The agreement contains very detailed clauses about the worker thresholds that justify consultation of the CEC. The select committee may play the role of “a forum for information and discussion on the topics upon which the CEC is consulted and act as a working group for preparing consultation”. It can also be consulted directly on certain plans, such as a complete or partial shut-down of activities “affecting no more than two countries and no more than 100 employees in total distributed across said two countries”. The SE works council has at its disposal an allowance of 3,250 euros per full member per year and an annual budget for expert services of 20,000 euros, as well as a dedicated community accessible via the group’s collaborative platform.


Transnational negotiations

  • Engie: The management and European trade union federations represented in the French energy group (formerly GDF Suez) will open negotiations on the guarantees to employees in connection with the current restructuring.

  • Telenor: The management of Telenor Group (33,000 employees) and the UNI Global Union international trade union federation have renewed their international framework agreement signed in 2013 (see press release).

  • Grupo Caliente: The UNI Gaming Global Union international trade union federation and the Mexican Grupo Caliente group have signed an international framework agreement (see press release).

    > Also take a look at: Globlal agreement of 29 May 2015 o, the Solvay Global Performance Sharing Plan (2015-2016) (see press release).


4. Studies and reports

The “REFIT” programme: A study (in French) (EN) produced by Eric Van den Abeele for the European Trade Union Institute offers a highly topical assessment (see Lead Story) “of the EU’s process of simplification and qualitative improvement of the ‘acquis’, a process originally known as ‘Better Law-making’, subsequently as ‘Smart regulation’ and, in its latest incarnation, as ‘Regulatory Fitness and Performance (REFIT)’”. Also see the Policy Brief (in English) by Isabelle Schömann on this subject.



  • Mobility of Croatian workers: The European Commission has published a report on the appraisal of Croatian worker mobility inside the EU since Croatia joined the Union in 2013 (see press releaseENESDE).

 

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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