IR Notes

The profound changes brought about by digitisation have engendered a great deal of research and have already prompted European social partners from several industry sectors to adopt common positions, particularly in the metal, chemical and insurance industries. In this context, companies and groups of companies with a community dimension would seem to be fertile ground for developing social dialogue focused on the issues raised by digitisation. Obviously, in most cases, these large companies have social dialogue structures at different levels. This is particularly the case at translational level for those companies which have a European Works Council or a SE works council. However, the digitisation strategies adopted or planned by the managements of these companies are obviously global in nature and therefore justify conducting social dialogue at central management level. European Works Councils, therefore, would appear to be both valid and appropriate forums for dialogue. To examine current practices in these groups, the ASTREE association and IR Share (which publishes IR Notes), with the mandate of the European trade union federation CEC European Managers, have launched a European project – “European Works Councils 4.0 – Fostering European social dialogue on the subject of digitisation in transnational companies” – with the support of the European Commission. The launch meeting was held in Brussels on 15 January with the partners involved in the project: SBI Formaat (the Netherlands); SindNova (Italy); the G. Brodolini Foundation (Italy) and the 1 May Foundation (Spain). The aim of the project is to create and distribute a guidance and methodology handbook to facilitate the development of economically and socially responsible social dialogue on the subject of digitisation in European Works Councils. At the same time, the project aims to further develop the capacity of European Works Councils to assert the added value they bring to transnational groups. The first phase will involve the identification of practices, some of which will then be discussed in transnational seminars. The project will culminate in the publication of recommendations and accompanying examples in the handbook. If you have established social dialogue on the topic of digitisation (information, consultation, creation of a working group, training, expertise…) at European Works Council level, we invite you to share your experience with the two project managers:
> Contact: c.teissier@astrees.org or frederic.t@irshare.eu

• Towards better protection for industrial jobs in the Union: On 23 January, the European Parliament’s Committee on International Trade adopted the compromise text negotiated with the Council to endorse the draft regulation on protection against dumped or subsidised imports from countries which are not members of the European Community. This vote opens the way for the final adoption of the text by the Parliament and Council. This compromise is welcomed by the European trade union federation IndustriAll, which sees it as a tool which can save thousands of jobs in the European Union (see press release).


• Guidance on new data protection rules: On 24 January, the European Commission published guidance to facilitate the application of the new data protection rules across the EU as of 25 May. The Commission is also launching a new online tool for SMEs (see press release).

For fair competition in road transport: The European Economic and Social Committee issued two opinions on the transport sector. The first opinion, (Aviation: Open and Connected Europe), which was adopted on 17 January, stresses the need to introduce “Binding social clauses” in all EU aviation agreements with third countries (see press release). The second opinion relates to “driving and rest time periods, working time and posting of workers”. The Committee considers it necessary to ensure “better enforcement of existing rest time rules, before considering creating more flexible ones without a satisfactory evidence base”.

• The agreements to reduce customs duties are having a positive effect on basic rights: According to a report published by the European Commission on 19 January, the European Union’s customs duty reduction arrangements with developing countries are having a positive impact on human and labour rights in these countries and are reinforcing good governance and the principles of sustainable development (see press release).


• Bulgarian presidency of the European Union: Bulgaria took over the presidency of the European Union on 1 January. Its programme can be viewed online on the presidency website. Among other things, it will push on with the proposals for a directive on the posting of workers and on work-life balance for parents and carers, and will press for the revision of the regulations on the coordination of social security systems.


• The role of the future European Labour Authority seen by the construction workers’ trade unions: On 12 January, the European Federation of Building and Woodworkers (EFBWW) published a preliminary position paper on the European Commission’s proposal to set up a European Labour Authority. The Commission will soon be publishing a legislative text to give substance to this “European Labour Authority”, which was announced in September 2017 by European Commission President Jean-Claude Juncker. The EFBWW believes that this authority must not in any way interfere in the collective agreement systems of member States (collective bargaining, wage setting, right to strike). It must have a clear mandate to tackle cross-border fraud and abuses in the area of social protection. It should also include a portal to enable whistle-blowers to report fraud or abuse.

• Possibility of dismissing an employee who is absent from work due to sickness related to his disability: Spanish legislation designed to reduce absenteeism allows employers to dismiss an employee whose accumulated absences, even if justified, equate to 20% of working days over two consecutive months when the total period of absence over the previous twelve months reaches 5% of working days or 25% over four non-consecutive months within a twelve-month period. An employer applied this law to dismiss an employee who was regularly absent, but whose absences were due to sickness related to his disability. The employee therefore challenged the dismissal which he deemed discriminatory. The Court of Justice states that directive 2000/78 precludes this national law unless it pursues the legitimate aim of combatting absenteeism. It will be up to the national court to ascertain if the national law does not go beyond what is necessary to achieve this objective. If the court decides that it does indeed go beyond what is necessary, the law must be considered non-compliant with directive 2000/78 (CJUE, 18 January 2018, case. C-270/16, Ruiz Conejero).

Towards an increase in maximum working hours: The new government aims to reform the law relating to working hours to give businesses more flexibility. This flexibility will have to be negotiated with the works council or, where one does not exist, directly with employees. The government’s programme (p. 139) involves raising the maximum number of hours per day from 10 to 12 and the maximum number of hours per week from 50 to 60. The weekly limit of 48 hours is, however, retained. In the tourism, hospitality and catering sector, the minimum rest period between two working days could be reduced from 11 to 8 hours. The government is also planning to introduce a working time account. The trade union movement is heavily critical of these plans (see Austrian press article, Kurier and Die Presse).
> See also Bernandette Allinger’s article on equal treatment for blue-collar and white-collar workers (published by Eurofound).

• Increased minimum wage: The gross minimum wage is increasing by 5%, taking it from 3,276 to 3,439.80 kuna (455 euros), which represents a net wage of 2,752 kuna, or 364 euros. The minimum wage represents 42.9% of the average wage.

• Agreement on the extension of collective agreements: On 25 January, the Estonian Trade Union Confederation (EAKL) and the Estonian Employers’ Confederation (ETKL) signed a non-binding agreement on the extension of collective agreements. This agreement establishes a representativeness criterion for social partners. The text stipulates that only multi-employer agreements signed between the most representative social partners should be extended. The social partners considered the most representative are those with the largest number of members and, in cases where membership numbers are similar, the organisation which is a member of the EAKL or the ETKL will be deemed the most representative. Furthermore, the extended collective agreement may cover only one business sector. The agreement is not legally binding, but the social partners at national level hope that it will be adhered to (see press release from the ETKL).

Controversial reform of the system for monitoring unemployed people: A new law, which came into force on 1 January, involves more monitoring of unemployed people by the public employment service. The new law stipulates that, for every three-month period, jobseekers receiving unemployment benefit must either: 1. work for at least 18 hours in a salaried position; or 2. earn at least 240 euros a month as an entrepreneur; or 3. undertake five days of training. If they fail to meet one of these criteria, their benefits are cut by 4.65%. A citizens’ petition collected more than 90,000 signatures, forcing Parliament to re-examine the bill. For its part, the trade union confederation SAK, which represents 1 million workers, is organising a major demonstration against the new rules on February 2 (see SAK press release, in English) and is proposing an alternative system.

Bill to ban zero hour contracts: On 7 December, the government introduced a bill to ban zero hour contracts and enhance the rights of workers on insecure contracts and those working variable hours (see press release). A study published in 2015 estimated that 5.3% of Irish workers are employed on zero hour contracts. This national legislation will ban zero hour contracts in all circumstances, with the exception of casual work, emergencies or cover for short-term absence. The Irish Trade Union Congress said that the new legislation was by no means perfect and that it required some amendments, such as an extension of the ban on zero hour contracts to include casual workers. The employers’ organisation Ibec opposes the bill on the grounds that it would have adverse consequences for employment.
> See also article in the Irish Times (7.12)

Alstom – Siemens: On 18 January, Alstom’s European Works Council, which was due to issue an opinion on the proposed merger with the railway division of the German Siemens group, asked for an extension until 31 January, to enable it to obtain further information from management. In a press release, the French CFE-CGC trade union stresses that the committee received the reports from the two experts (Secafi and Info Institut) on the day before the meeting and that the Siemens group gave the experts very little information, because until the merger is completed, the two groups are still competitors. Furthermore, on 14 February, the European trade union federation IndustriAll will be organising a third trade union coordination meeting which, on this occasion, will include IG Metall representatives from both groups.

• British Steel: In November, the management of the British steel producer British Steel reached an agreement to set up a European Works Council with the special negotiating group set up at the request of the French trade union CFDT.  The management granted this request in April 2017, before organising three negotiation sessions. The European Works Council is made up of 16 trade unionists of whom 14 are British (7 from Community, 7 from Unite/GMB) and 2 are French (CFDT). The signatories anticipate that the agreement will not be affected by the Brexit process and that British employee representatives will continue to serve on the European Works Council. Furthermore, the agreement will remain in force after the United Kingdom has left the EU. The agreement provides for the creation of a dedicated health and safety committee.

Stora Enso: On 19 January, the management of the Stora Enso group (25,000 employees) signed a global framework agreement with the three international trade union federations IndustriAll Global Union, Uni Global Union and the Building and Wood Workers’ International (BWI). Stora Enso undertakes to promote the basic rights of workers in all its activities and subsidiaries around the world. Moreover, the group will make every effort to ensure that the principles of the framework agreement are applied at all stages of its supply chain. The signatories will meet every two years to evaluate the implementation of the agreement.
> see also press releases from Stora Enso, IBB, IndustriAll and UNI Global Union.

Thyssenkrupp Tata Steel: On 10 January, the European trade union federation IndustriAll, for the second time (see press release issued by IndustriAll following the first meeting), organised a meeting with the representatives of the German, Dutch, British, Belgian, French and Spanish trade unions represented in the two steel groups Thyssenkrupp and Tata Steel, which are currently involved in a merger. The trade unionists have been asking both managements for more information since the announcement of this merger, which is expected to lead to 4,000 job cuts, and are calling on management to grant all employees in Europe the employment guarantees (no redundancies for nine years) negotiated between IG Metall and Thyssenkrupp in Germany at the end of December (see IR Notes 88) (see press release issued by IndustriAll).

Ten years after the financial crisis, the quality of life of European citizens is improving: the Foundation for the Improvement of Living and Working Conditions (Eurofound) has published its fourth quality of life survey, which is based on interviews conducted in 2016 with 37,000 people from 33 European countries (28 member States and 5 accession countries). Ten years after the global financial crisis, this survey provides a unique snapshot and highlights a slow recovery from the economic and financial crisis of 2008. However, in seven countries, the number of people questioned who said that they are finding it hard to make ends meet is higher than in the 2007 survey, and in 11 countries, more than half of people said that they are still struggling to make ends meet. In addition to the full report and a summary report, Eurofound is also offering the possibility of accessing survey data by readers’ country, age and sex.