IR Notes

Following years of eclipse, the construction of a social Europe has been gradually coming back onto the European agenda since the arrival of Jean-Claude Juncker at the head of the “last chance” Commission. The Rome declaration, adopted on 25 March by 27 member states, the United Kingdom no longer feeling concerned, calls on the member states to build “a prosperous and sustainable Europe”, one that “creates growth and jobs”. One of the four undertakings made by the twenty-seven EU countries deals explicitly with social Europe. They declare their wish to build a Union that is “based on sustainable growth, promotes economic and social progress as well as cohesion and convergence, while upholding the integrity of the internal market”. This Union must take “into account the diversity of national systems and the key role of social partners”. It must promote “equality between women and men” and work for “rights and equal opportunities for all”, while at the same time fighting “unemployment, discrimination, social exclusion and poverty”. In this Union, young people must benefit from “the best education and training” and the chance “to study and find jobs across the continent”. This paragraph, unheard of in the conclusions of the Council for years, will be followed by a series of reflection papers on key issues for Europe, the first of which, presented by the European Commission, will focus on developing the social dimension of Europe (see European Commission press release). The Commission is due, this April, to present a communication on the European Pillar of Social Rights which, in particular, will include a proposal for a directive aimed at fostering the work-life balance, with new rights for employees. This will be followed by other key dates, such as the new recommendations addressed to the member states in May, and a major social summit planned for November in Gothenburg. A great many tests, as Luca Visentini, General Secretary of the European Trade Union Confederation (ETUC) explains, for whom “good words on paper need to be put into practice” (see statement). The European social partners for their part adopted a joint statement in favour of strengthening the European Union and against populism, nationalism, xenophobia and anti-European sentiments which can generate only weak results in terms of economic and social performance. The aim is to combat the disenchantment of European citizens with the European construct as pursued in the last two decades. It remains to be seen whether such an objective is still within reach.

A regulation on blood minerals: On 16 March the European Parliament definitively adopted the draft regulation imposing “supply chain due diligence by importers of minerals and metals originating in conflict-affected and high-risk areas“. The regulation is intended to stop the financing of armed groups and violations of human rights associated with the trade in these minerals. The text was adopted by a majority of 558 to 17 votes with 45 abstentions (see press release). Once the agreement has been adopted by the Council, it will be published in the OJEU. The regulation “lays down the supply chain due diligence obligations of Union importers of minerals or metals containing or consisting of tin, tantalum, tungsten or gold” (article 1.2).

• Ten years of financial intervention by the EU at times of restructuring: The European Commission has celebrated ten years of the European Globalisation Adjustment Fund (EGF). This instrument is intended to support workers who have lost their jobs as a result of changing trade patterns (see press release). Since its creation in 2007, the EGF has processed 148 applications for support from 21 countries, totalling almost €600 million of funding provided to assist 138,888 redundant workers. Overall, the EGF has been under-utilised: it is very far from using the €500 million at its disposal each year; it has benefitted only a limited number of member states, headed by France (€90 million), while certain major countries have never used it (United Kingdom) and in others, such as Poland, Portugal and Romania, usage has been slight (less than €10 million).
  > Also see: the press release from the European Commission on the 60th anniversary of the European Social Fund.


• Working conditions in the textile sector: The Committee on Development of the European Parliament on 21 March adopted a draft initiative report calling on the European Commission to present a legislative proposal on binding due diligence obligations for European companies that outsource their garment production to third countries. The companies would therefore be obliged to check whether their supply chains comply with the OECD guidelines (see press release). The report will be put to the vote in the European Parliament during the plenary on 26 April.

A framework for applying a neutrality policy within an enterprise: In the two rulings highlighted in our last issue the European Court of Justice (CJEU, 14 March 2017, case C-157/15, G4S Secure Solutions and CJEU, 14 March 2017, case C-188/15, Bougnaoui and ADDH) delivered a number of messages to be observed in practice when employers are seeking to restrict the visible religious signs of their employees: 1/ The Court found that “the desire to display, in relations with both public and private sector customers, a policy of political, philosophical or religious neutrality must be considered legitimate” under the freedom to conduct a business, which is recognised by article 16 of the Charter of Fundamental Rights of the European Union. In other words, it is more difficult to ask employees who have no contact with clients or the public to adhere to such a neutrality policy, as expressed in an internal workplace regulation, for example. 2/ A neutrality policy that results in a ban on employees wearing visible signs of political, philosophical or religious beliefs must be genuinely pursued in a coherent and systematic manner. The employer must therefore make sure that this policy is known to all employees and treat all situations in the same way. 3/ Such a neutrality policy would encompass indirect discrimination if the internal regulation could result in “persons adhering to a particular religion or belief being put at a particular disadvantage”. In other words, if the sole consequence of implementing the regulation is to exclude female employees wearing an Islamic headscarf, then indirect discrimination could be invoked. 4/ Before dismissing an employee who refuses to respect the demanded neutrality, an employer is obliged, within certain limits, “to offer […] a post not involving any visual contact with those customers, instead of dismissing her”. 5/ The willingness of an employer to take account “of the wishes of a customer” who requests that the employer should no longer send a worker wearing an Islamic headscarf to his premises “cannot be considered a genuine and determining occupational requirement” allowing such a difference of treatment to be justified. 6/ A sanction imposed in connection with the wearing of visible signs of political, philosophical or religious beliefs without the existence of an explicit neutrality policy, taking the form of an internal workplace regulation for example, shall be considered as direct discrimination.

• A guide to recruiting young workers to trade unions: As part of a project funded by the European Commission, the European trade union federations have published a guide entitled “Just go for it!”, a compendium of good practices from EU countries, such as the creation of an app that makes it possible to sign up to the British union Unite in two minutes.

• Constitutional Council reduces the scope of the law on multinationals’ duty of vigilance: In a decision dated 23 March on the law concerning the duty of vigilance applicable to parent and contracting companies (see IR Notes 70), the French Constitutional Council could not accept as constitutional provisions that would impose a fine on companies (see Council press release). The law envisaged a fine of up to €10 million on companies that failed to set up the mandatory vigilance plan and up to €30 million if this omission of a plan was the cause of a disaster. The judges found that “the legislator had defined the obligation that it was imposing in terms that were insufficiently clear and precise to allow a sanction to be applied in case of breach of duty”. Most NGOs have expressed regret at this decision, which has to some extent deprived the legislation of its effectiveness, but they remain satisfied that the duty of vigilance has been enshrined in law.

• Government scraps voucher scheme: Italy’s biggest trade union confederation, the CGIL, had secured a referendum, slated for 28 May, on the system of vouchers that could be purchased by employers at tobacconists as a means of remunerating workers for “casual jobs” (see CGIL press release). However, the government has preferred to scrap the scheme rather than hold a referendum. For each voucher with a face value of €10, the worker received €7.50, with the remainder being deducted by the state to cover social security contributions. But the legislation on the one hand did not provide for the number of working hours that could be paid at €10 (often the hourly rate, although it could be more), and on the other, workers had no guarantees linked to the status of employee (no sick leave, paid holiday etc.). The government is going to put forward a new system, taking the numerous abuses in the use of these vouchers into account.

Axa: In a ruling issued on 14 March 2017, Versailles court of appeal (France) found that two members of the European works council of the Axa group could retain their mandate until the end of their tenure although they had ceased to be members of their trade union. Two members, including the EWC secretary, had left the CFDT in 2015 to join the CFE-CGC during the workplace elections held to decide the members of the group’s works councils. On reading the EWC installation agreement, the court ruled that the mandate to serve as a member of the EWC is linked to holding a mandate on an employee representative body in France. Since the two members were elected to serve on a works council on a CFE-CGC ticket, they had continued to meet the condition of holding a national mandate. The CFDT was therefore unable to end the mandate of the members which it had appointed, “notwithstanding the fact that their change in trade union affiliation effectively reduced the number of seats it held on the EWC and without this constituting an obstacle to freedom of association and the protection of trade union rights”.

GeoPost: The management of the international express subsidiary of the La Poste group, GeoPost (33,600 employees), on 14 March signed a global framework agreement with the trade union federation UNI Global Union and its three French representative members (CGT-FAPT, F3C CFDT, FO Com). The agreement devotes a large chapter to freedom of association, while UNI Global Union undertakes to resolve all conflicts by peaceful means in order to avoid a disruption in service for customers or damage to GeoPost’s reputation (see press release of GeoPost – dpd group). The federation encourages its members to exhaust all avenues of communication in good faith and local procedures for conflict resolution before launching collective action or media campaigns within the company. A request for negotiations to be opened at the global giant DP DHL is still pending, which explains the satisfaction of Philip Jennings, general secretary of UNI Global Union, that GeoPost has “taken the lead in its sector” (see UNI press release).

• Auchan: The management of the Auchan Retail group (345,396 employees) and the trade union federation UNI Global Union on 17 March signed a “global agreement on social and environmental responsibility” (see press release of UNI Global Union and of the Auchan group (in French); once available, the text will be placed online on IR Share). The agreement “confirms Auchan Retail’s commitment to upholding workers’ rights and its recognition of fundamental labour rights, including the freedom of association”.

• Coca-Cola: The trade union coordination group formed by the EFFAT federation on 9 March adopted a resolution denouncing the attitude of Coca-Cola Iberian Partners in its management of the closure of its Fuenlabrada production plant, which it has converted to a logistics centre following a court ruling.

• Volkswagen: A collective agreement was concluded on 22 February at Volkswagen’s Kaluga plant in Russia – providing further evidence that the German model of industrial relations is exportable. (See IndustriAll press release)

Working anytime, anywhere: A joint study by the ILO and the European Foundation for the Improvement of Living and Working Conditions highlights the ambiguity surrounding the use of new technologies in the world of work which allow everyone to work away from the employer’s premises at any time of day. The use of new technologies and teleworking, which can affect up to 37% of employees, as in Denmark (compared to only 7% in Italy), is both a means of achieving a better work–life balance, but can equally pose a risk in terms of health and job security, particularly by increasing stress or extending working hours. The study provides a very useful starting point for any discussion of the regulation of working hours.

• Three scenarios for the future of work in Europe: In a research document published by the ILO, the French sociologist Dominique Méda reviews the history of work and its importance in the eyes of Europeans, before going on to examine three scenarios for the future of work. The first focuses on the “dismantling of labour law” and the second concerns the “technological revolution”, heralding the end of employment due to automation. The third scenario, that of ecological conversion, offers the opportunity to converge ecology and social progress.