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 62 – European works councils address digitalisation

  IR Notes 62 – 26 October 2016
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The team This issue was produced by Alain Lefebvre, Stepanka Lehmann, Märt Masso, Frédéric Turlan and Mariangela Zito.
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  Interview
Marc Ambiaux, Chairman SE Works Council of Airbus Group SE (member of FO trade union)

What is the value-added from information and consultation of the European works council on digitalisation issues?
It plays an important role and its activities directly affect all European employees. The works council checks that European regulations are being properly respected. It is responsible for setting up barriers if compliance with the confidentiality of personal data is at risk. For each database relating to human resources we have defined exactly who has data access and which data they have access to. We have defined what is visible once the employee has entered his CV, how he can access the content and how he can make a correction. All these rules must apply to all European employees. For instance we have ruled out the idea that such databases should copy the content of an employee’s Linkedin page because there is no guarantee that the employee has written the content of the Linkedin page himself. Employees have been given the option of completing this for themselves by incorporating the information needed for HR management.


So the European works council can intervene in the decision-making process?
That’s its job, especially in relation to digitalisation, because that’s a long-term undertaking. During its course it will become involved in individual projects and then in their follow-up. We are engaged in a collaborative process with management and we put forward proposals for modifying processes which are taken into account. We speak to them from the employees’ viewpoint and, for the developers, our perspective is useful.


Will the effects of digitalisation really be felt by all the employees?
It is mistaken to believe that this process will only affect production, with men being replaced by robots. Digitalisation will have a very big impact on all the intermediary occupations, all the support functions. For example, financial reporting will be done in a completely different way in the near future; most of the data will be consolidated by algorithms. Quality control will have to be rethought. A fitter who installs aeroplane seats in a cabin for instance will wear smart glasses that will assess the installation and check its compliance straight away without having to go through a subsequent control stage. This phenomenon will impact upon the entire organisation.

 
  Diary

9 November
Paris
DARES, the research department of the French labour ministry, is holding a colloquium entitled “Travailleurs handicapés : quelle place dans l’entreprise ?” (Disabled workers: their place in business organisations), including a session presenting public policies pursued in other European countries to encourage the employment of disabled workers.


22 November
Paris
Colloquium organised by DARES entitled “Éclairages sur la qualité du travail” (Insights into the quality of employment), presenting research conducted on the basis of the “Working conditions” survey.


28-29 November
Berlin
Seminar organised by the European Foundation for the Improvement of Living and Working Conditions on EU labour market integration of asylum-seekers and refugees, with experts from six Member States (Austria, Belgium, France, Germany, Luxembourg and the Netherlands).


16 December
Brussels
Monthly Forum of the European Trade Union Institute: Occupational Cancer in Europe.

 

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 (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
European works councils address digitalisation

The annual conference for European works councils, hosted by the European Trade Union Confederation (ETUC) on 12-13 October in Brussels, scored an unprecedented success with a day devoted to European works councils “in the digital age”. In total, 160 participants of 20 different nationalities from 80 EWCs attended. The success is attributable in particular to the very legitimate role of EWCs in addressing the impact of digitalisation, as emphasised by Christophe Teissier, project manager at the French association Astrées, because “digital transformation is inevitably a global strategy affecting all countries and employees”. “In addition, managements have an interest in initiating regular information and consultation with the EWC on this subject which, unlike standard EWC issues, cannot be dealt with in one or two meetings. In this respect we are engaged in a long-term process which managements do not control from start to finish. As the implementation of their strategy progresses, there is scope for adjustments to be made which can be secured by the European works councils”. Aware of the importance of the EWCs’ role, the ETUC gave them some guidance: monitor the company’s digital strategy closely; scrutinise the use of outsourcing and make sure this is not based on unfair competition – as was made clear by a representative of the Nokia EWC who outlined how a site in Germany with 150 skilled employees was closed and their activities transferred to a platform in Asia; approach the European trade union federations with a view to negotiating transnational agreements in the field of digitalisation. The aim is to define the role of employee participation in the processes for introducing new technologies, including obtaining a right to temporarily suspend management decisions about work organisation following the introduction of new technologies. “These technologies harbour both opportunities and risks,” comments Wolfgang Kowalski (policy advisor to the ETUC), “so it is useful to negotiate on this subject because work-life balance is not something that happens automatically. We have heard interesting experiences concerning the right to disconnect or to stop receiving emails at night”. The issue is subject to conflict but also to consensus and may provide a valuable opportunity for employee representatives on EWCs to work together beyond the different industrial relations cultures represented within the body. The IR Notes editorial team will be continuing its investigative work in order to relate the experiences of EWCs in this connection.


1. European Union
Legislation

Directive on working conditions in the fishing sector: The Employment and Social Affairs Council on 13 October approved a draft directive giving legal effect to the agreement concluded in 2012 between the European social partners in the maritime fisheries sector, allowing ILO Convention No. 188 relating to work in the fishing sector to be implemented (see Council press release). The directive will take effect once the ILO Convention has been ratified by at least 10 countries. The EU member states will then have two years to transpose the legislation – which applies to all fishermen, both employees and self-employed – into national law. The objective is to “to ensure the protection of the overall health and safety of the workers on the same vessel” (see impact assessment on the directive, in English).
> Also see the press releases of the social partners Europêche and ETF (in English).


Legislative proposal

  • Revision of the directive on the exposure to carcinogens and mutagens at work: The Employment and Social Affairs Council on 13 October reached an agreement on the revision of directive 2004/37 that aims to improve the protection of workers from the risks related to exposure to carcinogens or mutagens at work (see Council press release). The adoption of this “general approach” should allow discussions to take place between the Council and the European Parliament with a view to getting the text adopted at first reading. The Committee on Employment and Social Affairs of the European Parliament is scheduled to examine a draft report in November. Adoption is expected in February 2017.


Social update

  • Joint statement by the European social partners: The four European social partners (ETUC, BusinessEurope, CEEP and UEAPME) adopted a joint statement on 18 October on the eve of the Tripartite Social Summit (see Council press release on the summit). They call for the rejection of populism, nationalism, xenophobia, anti-European sentiments, isolationism or protectionism and wish to ensure that Brexit does not have negative effects “for companies and workers”. Their aim is “to preserve as close economic relations between the European Union and the United-Kingdom as possible”, while fully respecting the four freedoms linked to the Single Market, “i.e. free movement of goods, services, capital and persons”.

  • Platform for whistleblower protection: More than 40 trade unions and civil society organisations have launched a platform initiative (www.whistleblowerprotection.eu) in order to call for better protection at EU level of employees who disclose information about wrongdoing. “Whistleblower protection is in most cases a workers’ right issue. At the same time, not all whistleblowers are employees,” the signatories point out.


Sectoral social dialogue

  • Agreement on the effects of digitalisation in the insurance sector: The European social partners in the insurance sector on 12 October signed a joint declaration on the social effects of digitalisation (see press releases of UNI Finance and Insurance Europe). The document recognises that not all employees who will lose their jobs because of digitalisation will necessarily be absorbed by other areas inside their companies. The latter are called on to do their utmost to avoid or reduce redundancies.


Trade unions

  • IndustriAll Global Union adopts action plan 2016-2020: During its congress the international trade union federation IndustriAll Global Union adopted an action plan that provides for the strengthening of global trade union networks in multinational companies. The search for an “active dialogue with MNCs,” says the action plan, includes “the establishment of world works councils to promote cross-border exchange and coordination of workers at locations worldwide”.


2. Member states
Czech Republic

Minimum wage to be increased: The government on 5 October approved an increase in the minimum wage which is scheduled to take effect on 1 January 2017 (see press release, in Czech). The minimum monthly wage will go up from 9,900 koruna (€366) to 11,000 koruna (€407), while the minimum hourly rate will rise from 58.70 koruna (€2.20) to 66 koruna (€2.40). Furthermore, the minimum wage applicable to employees receiving a disability pension worth less than the legal minimum wage will be abolished so that the minimum wage will be unified for all employees. The government, led by the Social Democrats, has increased the minimum wage each year according to its programme for government, which aims to raise it to the level of 40% of the average wage. However, the most recent increase is higher than previous rises and came just two days before the regional and senate elections.


Estonia

  • Sectoral agreement in the transport sector: Negotiations in the transport sector began in the spring and culminated in the signature of a collective agreement between the Union of Estonian Transport Enterprises (AL) and the Estonian Transport Workers’ Trade Union (ETTA) in September. The agreement, concluded for three years, sets a minimum wage for all bus drivers. At present, the monthly minimum wage is €800, with a minimum hourly rate of €3.20. These amounts will go up in successive increases to reach €945 per month and €4 per hour by 2019. This is the only sector in Estonia, with the exception of healthcare where negotiations are currently continuing, where an arbitrator is involved.

  • Pension reform: The government has put forward a reform of the pension system. One of the most important amendments is to raise the legal retirement age to 70 by 2040. The current retirement age for both men and women as of 2016 is 63.


Germany

Towards a reversible right to go part-time: In presenting the first report on working time in Germany published by the Federal Institute for Occupational Safety and Health, the Labour Minister, Andrea Nahles (SPD), indicated that the government intends to adopt a draft law this autumn which will provide the right for employees to go part-time for a specified period with the guarantee of being able to return to full-time work afterwards. The idea is to encourage more female employees to go part-time (see Labour Ministry press release). According to the report, the 20,000 employees who took part in the survey work an average of 43.5 hours per week, which is around five hours more than the collectively agreed working time. 47 % of employees would like to reduce their working hours.


Italy

  • Tackling the exploitation of agricultural workers: The Italian parliament on 18 October adopted a law aimed at tackling the employers and intermediaries who exploit hundreds of thousands of agricultural workers in the country. The legislation provides for sanctions against employers and intermediaries of up to six years’ imprisonment, a fine of €1,000 per exploited worker and the confiscation of their property. The law also provides for compensation for the victims.


Poland

  • Work commenced on rewriting the Labour Code: The government has a set up a labour law codification committee which met for the first time on 23 September. Its task is to produce two drafts within eighteen months, one of the new Labour Code and the other of a code of employees’ collective rights, in particular in relation to trade union activities.


Romania

  • New measures to combat unemployment: By an emergency ordinance, the government approved an important package of measures aimed at increasing worker mobility and reducing unemployment. With effect from 1 December, for example, people who are unemployed who relocate more than 50 kilometres from their place of residence in order to obtain a permanent job will receive 12,500 leu (around €2,850) if they are unaccompanied or 15,500 leu if they bring their family.


3. Companies
European works councils

  • Ferrero: The European works council of the Italian food group Ferrero held its annual meeting from 25 to 27 October in Alba (Italy), where it celebrated the 20th anniversary of the EWC’s establishment. The focus of the meeting was on the group’s performance and prospects. The EWC was supported by SindNova, which was involved as an expert and training provider.


European Companies (SE)

  • Windeln.de: The German distributor of baby and toddler products Windeln.de (490 employees) has converted to a European Company (SE) in order to avoid introducing any system of co-determination. Indeed, like any company on German soil having more than 500 employees, it would have had to set up a supervisory board on which employee representatives would have held one-third of the seats. Negotiation of the agreement on worker involvement was completed in a day and culminated in the establishment of a European works council with very limited resources.


Trade unions

LafargeHolcim: More than sixty trade unionists from organisations forming part of the Swiss cement group LafargeHolcim met under the auspices of the international and European trade union federations representing the industrial sector (IndustriAll Global Union, IndustriAll European Trade Union) and the construction industry (IBB/BWI, FETBB/EFBWW) from 17 to 19 October in Hyères (France) to discuss three main demands: to negotiate a global framework agreement; to negotiate a global agreement on health and safety at work; and to set up a world works council (see unanimous declaration, in English). The management, which was invited to the meeting and covered part of the costs, indicated that it recognises the merits of a structured global social dialogue and that it will make an associated proposal by the end of the year. Otherwise, the negotiation of a new EWC agreement is still continuing and should reach a conclusion by year end (see press release, IndustriAll).



  • Mondelez: The international trade union federation IUF held a meeting of its affiliates on 20-21 September in the United States to protest against job losses and relocations at the food group Mondelez, even organising a demonstration outside the CEO’s private residence (see press release).

  • Nissan: At the initiative of the international trade union federation IndustriAll Global Union, French and American trade unions held a demonstration on 12 October in Paris calling on the CEO of Renault-Nissan, Carlos Ghosn, to put an end to anti-union practices at the Nissan plant (5,000 employees) in Canton, Mississippi (see press release).


4. Studies and reports

Recognition of musculoskeletal disor-ders: EUROGIP, a French organisation set up to investigate issues relating to insurance and prevention of accidents at work and occupational diseases at European and international level, has published the results of a new study on the recognition of musculoskeletal disorders (MSDs) as occupational diseases in ten European countries(in French): Austria, Belgium, Denmark, Finland, France, Germany, Italy, Spain, Sweden and Switzerland (see press release). MSDs make up a very large proportion of the total number of occupational diseases recognised in France (88%), Spain (75%), Belgium and Italy (69%). On the other hand, their share is less than 20% in Austria, Denmark, Finland, Germany and Switzerland.



  • Decline in poverty and the risk of exclusion at EU level: According to Eurostat, approximately 119 million people or 23.7% of the population in the European Union were at risk of poverty or social exclusion in 2015. After three consecutive increases between 2009 and 2012 to reach almost 25%, the proportion of persons at risk has since continuously decreased to return to its 2008 level (23.7%) (see press release).

 

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.

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