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 83 – The European Parliament is due to rule on the revision of the Posting Directive

  IR Notes 83 – 11 October 2017
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  Interview
Elisabeth Morin-Chartier, Quaestor, MEP (PPE group)

What are the issues involved in the vote on the draft report that you’re defending with your colleague Agnes Jongerius on the revision of the directive on the posting of workers which will take place at the meeting of the European Parliament’s Committee on Employment and Social Affairs on 16 October?
The aim of this legislation is to consolidate the European Union as an internal market in which we need to ensure first of all that there is free movement of services and secondly that workers are protected. It’s extremely important to prevent Europe from being built upon social dumping, but it’s just as important for businesses to be able to develop on an equitable basis and under conditions of fair competition. We cannot develop Europe if we don’t keep the scales balanced by trying to achieve an equilibrium between protecting employees and protecting businesses. As a Rapporteur, I have to seek a balance of this kind, as well as a balance between the demands of the countries of Western Europe and those of Eastern Europe, or between Europe-wide intervention and respect for national jurisdiction. It’s all about putting together as large a majority as possible for this text, so that we can then obtain a clear, strong mandate for negotiation in order to finalise this legislation in the final phase which involves discussion with the representatives of the Council – in other words the 28 Member States.


What crucial steps will you be standing up for when you speak to the representatives of the Member States as part of the final negotiation with the Council?
The one thing that’s not negotiable is the right to be paid – that’s untouchable. Posted employees must be paid the minimum salary in the host country including any relevant allowances, for instance the meal allowance, the cold weather allowance or the thirteenth month. In addition to this, the pay that’s arrived at in this way must not then be slashed by the employer deducting costs such as accommodation, transport and meal costs. Finally, the cost of living in the host country must be taken into account when calculating these costs – for instance a Bulgarian employee sent to Germany must be paid enough to be able to have a meal in Germany rather than an allowance amounting to the price of a sandwich in Bulgaria.


Will the collective agreements be binding upon posted workers?
They already do apply to posted workers. Although these are universally applicable collective agreements which are binding upon all workers and all companies operating in a particular sector, we’re also adding the national or even regional collective agreements which must also be adhered to, provided that a Member State decides to do this and publishes the text on an online information platform in order to inform the companies posting workers. If a Member State does not publish, companies can’t be penalised. The aim is to ensure that a posted employee’s payslip is exactly the same as a domestic employee’s. It should include the same details, which thus helps to implement the concept of “equal pay for equal work in the same place” put forward by the President of the European Commission, Jean-Claude Juncker. We won’t be building Europe on social dumping and unfair competition.


But this principle doesn’t mean that there won’t still be a distortion of competition caused by Member States’ different social protection costs, does it?
It’s true that there are differences in social protection costs between Member States which have an impact on the cost of labour, but this question will be dealt with as part of the work which is currently underway. It’s being carried out in the Parliament by the French MEP Guillaume Balas (S&D), and it deals with the revision of the regulation on the coordination of social security systems.

 
  Diary

17 and 18 October
Brussels
Annual European Works Councils conference organised by the European Trade Union Confederation.


19 October
Brussels
The European Commission is organising, in collaboration with the Spanish national and regional authorities, a conference on “Youth Guarantee in Spain: The way forward“.


19-20 October
Duisburg
Annual conference of the German Industrial Relations Association.


23 October
Brussels
Employment and Social Affairs Council.


24 October
Noisy-Le-Grand
IRES international seminar, which will be looking at the chapter dealing with collective bargaining in the OECD’s latest “Employment Outlook”, with Sandrine Cazes and Andrea Garnero.
Contact: udo.rehfeldt@ires.fr


9-10 November
Frankfurt am Main
Forum for European works councils and SE works councils organised by the IG Metall trade union.


14-15 November
Brussels
Conference of the European Trade Union Institute (ETUI) devoted to occupational cancers


17 November
Gothenburg
Social Summit for Fair Jobs and Growth organised by the European Commission and the Swedish government.


7-8 December
Brussels
Meeting of the Employment, Social Policy, Health and Consumer Affairs Council.

 
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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
The European Parliament is due to rule on the revision of the Posting Directive

On 16 October the European Parliament’s Committee on Employment and Social Affairs is due to rule on the report on the revision of the directive on the posting of workers drawn up by two of its most influential members, Elisabeth Morin-Chartier (PPE, France) and Agnes Jongerius (S&D, Netherlands). A few days later, on 23rd October, it will be the turn of the heads of state and of government to rule on the proposed revision, before the parliamentary report, which has been voted on in committee, is put to the vote before the plenary assembly of the Parliament by the end of the year. The two Rapporteurs have done everything in their power to obtain as large a majority as possible on a piece of legislation which has deeply divided Europeans, with a fault line between the Eastern countries from which most posted workers are sent, and the host countries in the West. The main points put forward by the report are as follows: 1/ Extension of the legal basis for the directive, which is currently the article on the freedom to provide services within the EU, to cover the articles in the treaty on social policy and working conditions (articles 151 and 153 of the TFUE) “in order for this legislation to have two feet upon which to stand: the freedom to provide services and the protection of workers”. 2/ A reminder that the directive introduces minimums thresholds to be adhered to for the protection of workers and that it must not be considered as setting any maximum thresholds. It must also point out that it cannot affect the exercising of the European Union’s fundamental rights. 3/ It is pointed out that posted workers must receive pay which is at least equal to the minimum salary applicable in the host country plus any compulsory supplements (see interview). 4/ It is pointed out that any posting-related transport, accommodation and meal costs may not be deducted from the pay. 5/ The Member States are allowed to apply their own regional and sector-specific collective agreements to posted workers (and not only the generally applicable agreements) provided that these texts are clearly published on a single national website setting out the rights in the host country which must be adhered to, especially in terms of pay. 6/ The principle of equal treatment between temporary posted workers and local temporary workers is applied, whilst at the same time reducing the abuse of the posting in cascade of temporary staff. The vote which will take place in committee on 16 October will be a good indication of whether the revision will be supported by a large majority of the Parliament, including in terms of nationalities and, if so, the Parliament’s negotiators will have a stronger hand when it comes to forcing the 28 Member States into a compromise.


1. European Union
Legislative proposal

Revision of European antidumping legislation: According to an informal agreement on the revision of the antidumping legislation concluded between the Parliament and the Council on 3 October, EU trade defence legislation is expected to take both environmental and international employment standards on board. MEPs stressed that “all parties involved, particularly trade unions, may give input to decisions on trade defence measures”. The legislation now needs to be formally passed by both institutions (see press release).



  • A European framework to boost apprenticeships: On 5 October the European Commission adopted a proposal for a recommendation on a European Framework for Quality and Effective Apprenticeships. This initiative, which takes the form of a recommendation made by the Council, invites Member States to take fourteen qualitative criteria on board in order to boost apprenticeships. These include giving apprentices written contracts, ensuring that they are entitled to social protection and that they are either paid or given a compensation (see press release).


Social update

  • MEPs call for an EU-wide minimum income: In a resolution adopted by a large majority on 28 September, the European Parliament’s Committee on Employment and Social Affairs is calling for the introduction of a minimum income scheme in all Member States with the aim of combating the risk of poverty and exclusion which affects 119 million European citizens (25% of the total EU population) (see press release).

  • Intervention by the Adjustment Fund in Italy: On 26 September the European Commission proposed that Italy should be provided with a grant of 3.3 million euros from the European Globalisation Adjustment Fund in order to help 1,610 former employees of Almaviva Contact, a call centre, to find new jobs (see press release).

  • Protection for whistleblowers: The European Parliament’s Legal Affairs Committee passed a resolution calling for European rules designed to provide whistleblowers with better protection and support by a large majority on 2 October (see press release).

  • Working conditions at low-cost airlines: In a debate about mass cancellations of flights by Ryanair held at the European Parliament on 4 October, a number of MEPs stressed that working conditions at low-cost air carriers ought to be investigated by the Commission. These MEPs feel that competitiveness must not come at the expense of workers’ rights and that poor working conditions can also lead to safety and security problems. The European Commissioner, Violeta Bulc, promised to launch a study on social conditions and mobile workers’ rights in aviation next year (see press release).


European social dialogue

Responses to the consultation on the revision of the “carcinogens” directive: The European social partners sent their responses to the first consultation phase, which the European Commission launched in July, on a fresh series of revisions of directive 2004/37 of 29 April 2004 on the protection of workers from risks relating to occupational exposure to carcinogens or mutagens. The employers’ organisation BusinessEurope noted the Commission’s determination to continue with the revision work, whereas the European Trade Union Confederation communicated its requirements in terms of method (setting an exposure standard which must not be exceeded and a more protective standard to be attained gradually) and is calling for the scope of the directive to be extended to cover reprotoxic agents.


2. Member States
United Kingdom

  • A joint statement by the social partners about Brexit: The employers’ organisation, the CBI and the British Trades Union Congress (TUC) issued a joint statement on 28 September – something which rarely happens in the British industrial relations system – demanding that both the British government and the EU negotiators offer guarantees to expatriate citizens affected by Brexit “within weeks”.


3. Companies
European works councils

Essity: On 31 May Essity, a Swedish group (with 48,000 employees) specialising in the production and marketing of personal hygiene, paper-based hygiene and health products, set up a group-wide European works council made up of two subcommittees, covering the “Tissue” and “Personal Care” business areas respectively (this agreement is available on the European Trade Union Institute website). The Essity group’s European works council is made up of each of the subcommittees’ two select committees. The agreement specifies that the working language is English. The aim is for all members to be able to communicate in English within two years from the setting up of the committee. The parties give a commitment that candidates for seats on the European works council agree that they will get ready to learn English. According to the agreement, the management undertakes to fund English courses which can go as far as spending five weeks in the United Kingdom.



  • Kostal: On 26 June the management of Kostal – a German family-owned group (with 17,075 employees) specialising in electronics – concluded an agreement to set up a European works council (available on the European Trade Union Institute website). The European works council must be consulted before – or at the same time – as the national employee representative bodies. It is specified that if a subsidiary intends to implement any measures before the European works council has been informed and consulted, as required, then the council is entitled to appeal to the central management to carry out mediation. The management shall ensure that any such measures will not be implemented prior to the completion of the information and consultation procedure set out in the agreement on the European works council.


Transnational agreements

ASOS: On 3 October the management of ASOS, a British online fashion retailer, signed a Global Framework Agreement with the international trade union federation IndustriALL Global Union with the aim of improving the application of international employment standards throughout the ASOS global supply chain, which is made up of more than 600 Tier 1 suppliers (see IndustriALL press release).



  • H&M: As had been set out in the Global Framework Agreement which the Swedish textile group H&M signed with the IndustriALL international trade union federation, the “National Monitoring Committees” set up in five countries (Bangladesh, Cambodia, Indonesia, Myanmar and Turkey), met in Bangkok on 1 and 2 October. These Committees are made up of trade unionists at the group’s suppliers and H&M representatives, and they draw up both short and long-term action plans aiming to ensure that suppliers implement the Global Framework Agreement (see press release).

  • Inditex: At a meeting held at the headquarters of the Economic and Social Council in Madrid on 4 October the Spanish textile group Inditex and the international trade union federation IndustriALL Global Union celebrated the tenth anniversary of the Global Framework Agreement which they signed with the aim of protecting and promoting working conditions throughout the whole of the Inditex supply chain (see press releases issued by IndustriALL and by Inditex, which give an account of the various stages in the cooperation between Inditex and IndustriALL).

 


Trade unions

SKF: More than 40 SKF trade union delegates met in Gothenburg (Sweden) from 18 to 21 September, as part of the meeting of the World Union Committee, which represents SKF employees in 20 countries. IndustriALL underlines the fact that “the opportunities and challenges of the fourth industrial revolution were the main topics” of discussion with the management, “together with the Working Climate Analysis and health and safety issues”. A separate meeting of the European works council was held on 18 September (see press release).



  • DHL-DP: The management of the Deutsche Post DHL Group (DPDHL), the International Transport Workers’ Federation (ITF) and UNI Global Union have jointly asked the OECD’s German National Contact Point  for Multinational Enterprises to extend the protocol signed in July 2016 to run until 2019, in order to continue with a regular dialogue on industrial relations topics (see UNI Europa press release).

  • Korian: Employees and union representatives from Korian, the European leader in support services for senior citizens (with almost 47,000 employees), met in Brussels on 5 and 6 September, with the aim of improving the way they coordinate their action and strategies in order to achieve better salaries and working conditions for the group’s employees working in four Member States (Germany, Belgium, France and Italy). This meeting took place under the auspices of the European Federation of Public Service Unions which is developing a strategy to coordinate trade unions at multinationals in the healthcare sector (see press release).

  • Shell: Trade unions representing Shell workers in 14 countries met in Vlaardingen (Netherlands) on 25 and 26 September within the framework of the Shell Global Union Network set up by IndustriALL Global Union. The participants want Shell to recognise the network as a partner for social dialogue on a global scale. The network is also asking Shell to limit the use of precarious work and to apply the same health and safety standards and procedures all over the world, at the same time making them compulsory for the company’s suppliers (see press release).


4. Studies and reports

  • Improvement in social conditions in the Union: the latest quarterly report on employment and social developments in Europe was published by the European Commission on 5 October and confirms that there is an improvement in terms of both growth and employment conditions within the Union. Employment rose by 1.5 % in the EU over the second quarter of 2017, and growth reached 2.4% (see press release). The report contains full comparative data on the development of both employment and unemployment (indeed long-term unemployment is still far too high).

 


Désabonnement

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.

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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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