IR Notes

The 13th congress of the European Trade Union Confederation (ETUC), which took place in Paris from 29 September to 2 October, has mandated its new leadership team headed by Luca Visentini of the Italian trade union UIL, to the effect that the Confederation should concentrate on its role as a trade union rather than as a lobbyist for workers’ interests vis-à-vis European institutions. The congress adopted a policy document – the Paris Manifesto – as well as an action programme 2015-2019 and a series of resolutions, in particular on the refugee crisis, calling for a reform of asylum law and underlining the trade union movement’s whole-hearted commitment to oppose “populist and xenophobic attitudes” (although not without an internal debate before arriving at this result), and on health and safety at work, asking the European Commission to stop its ongoing reviews and revisions of all the directives on worker protection. It remains to be seen, given the resources allocated to the ETUC, which have dwindled in recent years, how the Confederation will be able simultaneously to influence the outcome of European decisions while taking a more critical role in order to become more visible and, as demanded by Laurent Berger, secretary general of the French confederation CFDT, “to deliver results to the workers”. It is indeed ironic to observe the low visibility of the ETUC compared to certain NGOs although, through its affiliates, it represents around 60 million employees throughout the EU. The congress in itself reveals the challenge facing the ETUC: the “re-unionisation” of workers is essential because, without an increase in trade union membership, the ETUC’s influence will continue to shrink. However, the sociology of those attending the congress shows a need for progress if European workers are to cease being represented exclusively by white trade unionists aged over 45. At the end of the day, the ETUC will not be able to avoid the fundamental debate on its ability to speak on behalf of a European trade union movement – which urgently needs to be defined and brought to life – or to represent the lowest common denominator of the 90 trade union organisations and 39 countries, each with their own industrial relations cultures, that make it up. While diversity may be wealth, in this case it is ultimately a mark of ineffectiveness. Might the ETUC not become the crucible for a European trade unionism based on participation in collective bargaining, the involvement of workers in the proper running of companies and the ability to mobilise when this proves necessary?

• Social dumping remains centre-stage: The European Economic and Social Committee on 16 and 17 September adopted two important opinions, one on social dumping in civil aviation (see IR Notes 38), the other on the “Internal market of international road freight: social dumping and cabotage“, which was requested by the Luxembourg Presidency of the EU. The two reports are of a very high standard and provide a clear analysis of the different mechanisms, from improving legislation to fraud. As far as cabotage is concerned, the report makes a suggestion to “avoid the endless and systematic piling up of seven day cabotage periods that currently seems possible”. Elsewhere, the European Transport Workers’ Federation (ETF) on 29 September presented a series of measures to strengthen the application of European legislation in the transport sector (see press release). The day before, a “citizens’ initiative” supported by the trade union movement was launched with the aim of collecting one million signatures in favour of fair competition and equal treatment for transport workers (see press release).

• Electricity: The European social partners in the electricity sector on 22 September adopted a joint position proposing measures aimed at mitigating the social impact relating to climate change in the run-up to the COP21 conference in Paris. The objective is to ensure “a smooth social transition to a more sustainable and environmentally-friendly economy” (see EPSU press release, in English).

• No end-of-contract payment to compensate for insecurity for young people employed during the school holidays: The European Court of Justice has delivered a judgement concerning a young worker (CJEU 1 October 2015, case C‑432/14, O v. Bio Philippe Auguste) who believed he had been the victim of discrimination. Under the French Labour Code, when an employee’s fixed-term employment contract ends, he receives a payment to compensate for insecurity (10% of the total gross remuneration paid) if the contractual relationship does not continue in the form of a contract for an indefinite period (article L. 1243-8). However, this compensation is not payable when the “contract is entered into with a young person for a period falling within the school holidays or university vacations” (article L. 1243-10). The young man believed that this provision constitutes discrimination on the grounds of age and as such is in breach of EU law. The court pointed out that the French national legislature “considered that those young persons are not, on the expiry of their contract, in a situation of job insecurity” since they are returning to their studies. It found that their situation was “not comparable to that of other categories of workers eligible for the end-of-contract payment”. Therefore, “the national legislature in no way exceeded the bounds of its discretion in the field of social policy”. The provision depriving such young people of an end-of-contract payment to compensate for insecurity is therefore not in breach of EU law.

• Further implementation of the “Jobs Act”: The government has just published the last four decrees implementing the “Jobs Act” framework law in the official journal (law No. 183/2014). The first decree (No. 148/2015) extends the “social cushion” in the event of suspension from work (“cassa integrazione”) to workers and companies that had not previously been eligible. The second (No. 149/2015) reforms the labour inspectorate and restructures its departments in a single national agency. The third (No. 150/2015) reforms the public employment service managed by the new national employment agency (Anpal), as well as relationships between the latter and the unemployed. The final decree (No. 151/2015) rationalises and simplifies various obligations incumbent upon employers (disabled workers, resignation, etc.) and introduces the option for employees to pass on their leave entitlement to colleagues who have to be absent for family reasons.

• Temporary reduction in pension payments: The European Court of Human Rights has issued a ruling concerning a female pensioner who saw the amount of her pension reduced by less than 5% over a two-year period (ECHR, 24 September 2015, No. 13341/14, da Silva Carvalho Rico v. Portugal, in English). The woman considered that Portugal had breached her right to protection of property as guaranteed by the European Convention on Human Rights. However, the court took into account the “overall public interests at stake in Portugal at a time of financial crisis and the limited and temporary nature of the measures applied”. It found that the pension reduction had been a proportionate restriction on the applicant’s right to protection of property in order to achieve medium-term economic recovery in the country.

Solvay: The chairman of the executive committee and CEO of the Belgian chemical group Solvay (26,000 employees), Jean-Pierre Clamadieu, and the secretary of the European works council, Albert Kruft, on 11 September signed a “charter on good collaboration practice” aimed at reconciling the information and consultation procedures at European and national levels. Signed for two years, this experimental agreement allows the EWC and the national information and consultation bodies to be involved in defining the HR policies pursued at group level. The EWC secretariat is informed in the first instance, before the proposal is communicated to those responsible for industrial relations at national level who will launch an information and consultation procedure at local level. These discussions are to take place over a period defined by agreement between the group’s management and the EWC secretariat. On a European level, the discussions are to be held between management and the EWC secretariat with a view to “finalising the proposal in good time with a mutual agreement”. Thereafter, the local and national representative bodies take over the proposal with a view to aligning and harmonising the new rules, procedures or standards, with due regard for national legislation.

Carrefour: The French retail giant Carrefour (381,227 employees) on 30 September signed a new global framework agreement with the UNI Global Union international trade union federation (see press releases of UNI and of Carrefour. The document follows on from the first framework agreement on respecting fundamental labour rights signed in 2001. The new agreement is more comprehensive than its predecessor, which listed on one page the International Labour Organisation conventions that applied to the group. The 18-page document addresses fundamental rights, defining the group’s commitments in relation to freedom of association, non-discrimination and collective bargaining. It also contains a section on promoting social dialogue, which is to “focus on strategic direction”. This is an innovative agreement in the sense that it includes mutual concessions: the group seeks to favour social dialogue and unionisation while protecting itself at the same time. In fact, this commitment to “quality industrial relations” assumes “respect for the reputation” and “the image” of the group, as well as the “confidentiality” of discussions, both when engaging in social dialogue and accessing “social networks”.

• Sappi: At the beginning of September, the global network of unions formed by the trade unionists at the paper group Sappi (13,500 employees) requested negotiation of a global framework agreement. The president of the European works council, Wolfgang Kamedler, is scheduled to meet with management for an initial discussion on this subject (see IndustriAll Global Union press release).


• Pirelli: A global union network has been established at the Italian Pirelli group (37,561 employees). The trade union members are concerned about the increased stake, of 30%, held by the state-owned Chinese company ChemChina (140,000 employees) in the group’s shareholder structure and the possible consequences for employment (see IndustriAll Global Union press release).


• Shell: At a meeting organised by IndustriAll Global Union in Singapore on 29 and 30 September, around sixty trade union representatives from 22 countries decided to create a global union network at the Dutch petroleum giant Shell (90,000 employees). An action plan was adopted, and means of communication are to be set up, including a Facebook page. The network intends to establish a “database” of working conditions in the group. The next meeting is planned for the Netherlands in 2016 with financial support from the Friedrich Ebert Foundation (see press release).

Wage gap between east and west Germany: As Germany celebrates 25 years since reunification, a study, in German, published by the Institute of Economic and Social Research (WSI) of the Hans Böckler Foundation (an organisation closely linked to the DGB trade union confederation), underlines that the wage gap between collective agreements concluded in the federal states of eastern Germany and those in the west has narrowed to around just 3% to the detriment of the eastern regions, compared to 40% in 1991 or 5% in 2006. On the other hand, as far as the salaries paid by employers not bound by a collective agreement are concerned, the difference between west and east in 2014 was still 17%, to the disadvantage of the eastern regions. The study therefore seeks to highlight the role of trade unions in closing this gap and the importance of unionisation for the negotiation of collective agreements.