IR Notes

In France, social partners can enter into industry-level collective agreements to establish a system of insurance that supplements the cover provided by the basic social security system, in order to improve workers’ social insurance and health cover. Until 2013, the signatories, in their agreement, often used to appoint a body to be responsible for managing this supplementary system. They also asked the Ministry of Employment to extend the agreement to all employers and all employees in the industry. Membership of the supplementary system therefore became compulsory and the employers and workers covered were obliged to subscribe to it. The Court of Justice was asked to rule on an insufficient degree of transparency, not in the procedure for appointing the body, but in the procedure for extending the agreement, in the light of the requirement for transparency in article 56 of the Treaty. The Court held that a decision to extend an agreement providing for the appointment of a single body for “compulsory supplementary social insurance” is “conditional upon the obligation of transparency being complied with” (CJEU 17 December 2015, cases C-25/14 and C‑26/14, UNIS and Beaudout). Although the extension procedure did not fulfil this requirement for transparency (see paragraph 45 of the ruling), the government nevertheless succeeded in “maintaining the effects of the extension decision at issue” in order not to cause damage to the employers and workers concerned. The effects of the Court’s ruling will concern extension procedures undertaken after “the date of delivery of the present judgment, without prejudice to legal proceedings brought before that date”. From 2014, the social partners have no longer been able to include appointment clauses, only recommendation clauses in favour of one or two bodies chosen following an invitation to tender.

• A two-speed Europe: The Italian and British ministers of foreign affairs, Paolo Gentiloni and Philip Hammond, published an article in the British newspaper The Daily Telegraph on 15 December, in which they stated that they have a different vision of the European Union, the Italians wanting greater integration whereas the British prefer to confine the Union to its role as a common market. However, they agree on the idea of reforming the Union and accept the idea of a two-speed Europe, one pursuing the project of integration within the eurozone. This vision has been roundly condemned by the European Trade Union Confederation (see press release).


• Integration of refugees: On the eve of a European Council that once again failed to find a robust common solution for receiving the refugees who are managing to enter the EU, the European Trade Union Confederation published a press release. This follows Luca Visentini, the secretary-general of ETUC, in reaffirming that “the integration of refugees is the only solution: inclusion in society, and in work wherever possible. This means investment in additional public services and increased action to ensure equal pay for equal work”, in particular via collective bargaining to “reach agreements between employers and workers for the integration of refugees into work”.

• Compensation for a discriminatory dismissal: The Court of Justice of the European Union gave judgment, on 17 December, in a Spanish case concerning a female worker who had been dismissed for a discriminatory reason. The court dealing with the case held that she had indeed been a victim of discrimination on grounds of sex, but it had a doubt concerning the amount of compensation to award. According to the Court, the loss or damage suffered amounted to 3000 euros. However, the complainant requested double that figure. The court dealing with the case turned to the Court of Justice for clarification of the interpretation of article 18 of Directive 2006/54. This article states that compensation or reparation for damage suffered as a result of discrimination must be awarded “in a way which is dissuasive and proportionate to the damage suffered”. Does the law of the European Union require that the penalty goes beyond the damage itself in order to be “dissuasive”? For the Court of Justice, although nothing prevents a Member State from making provision for dissuasive compensation, the law of the European Union does not require it (CJEU 17 December 2015, case C 407/14, María Auxiliadora Arjona Camacho v. Securitas Seguridad España SA).


• Endocrine disruptors: On 16 December, the General Court of the European Union found the European Commission guilty of failing to comply with European Union legislation intended to protect the population, including a large number of workers, from endocrine disruptors (see press release of the Court). In its decision (EGC, 16 December 2015, case T‑521-14, Sweden v. European Commission, only in French), the Court held that the impact analysis initiated by the Commission before presenting a legislative proposal was without foundation in law.

Central government bodies: On 21 December, the European social partners in the central government sector adopted a framework agreement intended to ensure that civil servants and employees of these government bodies benefit from a set of minimum standards on informing and consulting. The text will be submitted to the European Commission so that the latter can prepare a Council decision intended to make the text applicable at Union level, through a European directive. The agreement sets out the definitions that have become standard in European social legislation (see press release of EPSU, and the press release of the European Trade Union Confederation).

• Local and regional government bodies: On 11 December, the European social partners in local and regional government bodies adopted a “joint declaration on the opportunities and challenges of digitalisation in local and regional government“. The signatories make the case for preparatory action and for social dialogue to accompany digitalisation (see press release from EPSU, in English only).
  > See also: ILO working document on “Collective Bargaining in the Public Service in the European Union“.

Company policy: At a meeting of its executive council on 2 December, the European trade union federation IndustriAll approved two important texts which renew its policy concerning companies: first, a resolution entitled “Strengthening our capacity to anticipate and deal with change in national and multinational companies in the EU” ; and second, some internal recommendations concerning “transnational company restructuring” entitled “Towards strengthened trade union cooperation and greater solidarity“. The aim is to involve workers in the decision-making process as early as possible. The federation notes that worker participation in European works councils “is often a pure formality and has limited impact”, and that “all too often EWCs are still presented with a ‘fait accompli’” (see press release in English only).

• European trade union representatives from the automotive sector go to China: Trade union representatives from vehicle manufacturers such as Volkswagen, BMW, Daimler, PSA, Renault, Volvo, AB Volvo, Honda and Toyota, as well as trade union members from IG Metall (Germany), IF Metall (Sweden), UNIFOR (Canada) and JAW (Japan) took part in workshops with representatives of Chinese workers, from 24 to 26 November 2015 (see press release of IndustriAll Global Union).

• Electronic meal voucher: From 1 January 2016, employees will only be able to use electronic meal vouchers when they buy items from traders. This makes Belgium the first European country to change over completely to electronic meal vouchers.

• Collective agreement for central government bodies: After several rounds of negotiations with the trade unions, the Czech government has, for the first time, made a collective agreement at central government level. This historic agreement was signed on 22 December and involves over 69,000 civil servants working in central government bodies. The agreement standardises certain fringe benefits that apply in central government and provides for annual negotiation of salary increases. The agreement is valid until 31 December 2016, and can be extended after that date.

• Working time for hospital doctors: The Court of Justice of the European Union found Greece guilty of having failed to correctly apply the guarantees required by EU law concerning the organisation of working time (CJEU 23 December 2015, case C-180/14, Commission v. Greece in French, or in Greek).

• Reform of parental leave: On 16 December, the Council of Government approved the draft law reforming parental leave. The fixed-rate payment currently made, which amounts to 1,778.31 euros per month for full-time leave and 889.15 euros per month for part-time leave, is replaced by a true replacement income ranging from 1,922.96 euros to approximately 3,200 euros per month. Workers will be able to request an organisation of parental leave that makes it more flexible (a 20% reduction in working time, leave split into four periods of one month spread over 20 months) instead of having only the two current options: full-time leave or part-time leave.

Avril Group: The management of Avril (formerly Sofiprotéol), the French industrial and financial group specialising in the oils and proteins sectors and employing 8000 workers, signed an agreement (also available in Polish and Romanian) on 14 December establishing an EWC. It comprises 12 members, of whom 6 are French and 2 are Romanian, other countries having one representative each. The agreement specifies that the council is competent to deal with matters concerning the whole group or at least two sites in two different countries, and also with “matters that have potential social consequences or a potential impact for European workers – at least 30 jobs affected – or that involve transfers between Member States”. The agreement is unusual in stating that the composition of the EWC must “promote parity between men and women”. It will consist of one representative for each country where there are between 50 and 500 workers (Germany, Belgium, Poland, United Kingdom) and then of additional representatives depending on the number of workers, thus giving two seats to Romania and six to France. The text provides for observers to be appointed for countries outside the European Union where the group employs at least 500 workers, as is the case for Morocco. The council will meet in plenary session once a year and the Select Committee will hold at least three meetings a year, of which one will be physical and two will be videoconferences or even, in the case of extraordinary meetings, teleconferences (see also press release of EFFAT).

• CNH Industrial: At a meeting in Turin held from 24 to 26 November 2015, a European works council was established within this Dutch company, which employs 41,000 workers and is the product of a merger between the Italian group Fiat Industrial and CNH Global, a Dutch company specialising in agricultural machinery (Case and New Holland).


• Ferrero: The Italian confectionery group Ferrero revised its European works council agreement on 7 October 2015. One new feature of the agreement is the establishment of a “health and safety laboratory”, responsible for raising awareness and for the exchange of information, experiences and good practice in these matters. A permanent working group, consisting of one representative for each country represented on the EWC, will meet at least once a year, with an expert in attendance, in order to schedule the activities of collecting and circulating information and good preventive practices, and also to propose awareness-raising, information and training initiatives to the EWC. The EWC’s website has a special area for the Laboratory’s activities.

• Smurfit Kappa: At a meeting held by the international trade union federations UNI Global Union and IndustriAll Global Union in Warsaw on 13 and 14 December, trade union representatives from the packaging group Smurfit Kappa (43,000 workers), from ten different countries, set up a worldwide trade union alliance (see press release from IndustriAll Global Union). A letter (in English) has been sent to the management expressing disappointment at the lack of any response from the management to two letters asking for a social dialogue to be established in the group at global level.

• Unemployment continues to fall: According to the latest Eurostat figures, the unemployment rate fell by 0.1% between October and November, in both the European Union (from 9.2% to 9.1%) and the eurozone (from 10.6% to 10.5%). Over one year, the most marked decreases have been registered in Spain (from 23.7% to 21.4%), Bulgaria (from 10.6% to 8.8%) and Italy (from 13.1% to 11.3%). (see press release of Eurostat).