IR Notes

The European Parliament has adopted three texts that are intended to improve truck drivers’ working conditions and to reduce the risk of unfair competition in the road transport industry.
– A directive laying down specific rules for posting drivers in the road transport sector and enforcement requirements. The posting legislation will apply to cabotage (Editor’s Note: this is what happens where a lorry performs an international transport operation that involves unloading goods in one country followed by several loading and unloading operations in that same country) and to international transport operations, with the exception of transit, bilateral operations and bilateral operations involving two additional loading or unloading operations.
– A regulation as regards minimum requirements on maximum daily and weekly driving times, minimum breaks and daily and weekly rest periods, and positioning by means of tachographs. Companies will have to organise their schedules to enable truck drivers to return home at regular intervals (once every three or four weeks, depending on their working hours). The driver’s normal mandatory weekly rest period cannot be taken in their vehicle’s cab. If the driver’s rest break is not spent at home, the company must pay their accommodation costs.
– A regulation intended to adapt several previous regulations to developments in the road transport sector. This text revises the rules relating to cabotage. It also seeks to combat the use of “letterbox companies” by forcing haulage companies to demonstrate that they have a significant volume of business in the Member State in which they are registered.
The legislation will enter into force 20 days after the texts have been published, while the directive will have to be transposed into domestic law within 18 months. The European Commission is preparing guidelines for the autumn, setting out details of the application of these texts. The adoption of this reform demonstrates that there is no reason why other sector-specific regulations cannot be drawn up to prevent drifts developing in social conditions in other industries, e.g. civil aviation (where some airlines are using bogus self-employed workers) and the abattoir industry.
> Further information: See press release and article published by the European Parliament and reactions of the social partners as described below.

Social partners’ reaction to adoption of the “mobility package” (see Lead Story) : The German, French and Nordic employers’ organisations say “this is a crucial step to ensure [a] level playing field and fair transport for hauliers in Europe” (see press release). It is also a source of great satisfaction for the European trade-union federation ETF, which sees this as a victory for its lobbying efforts with MEPs (see press release). The reform has also been welcomed by the European Trade Union Confederation (see press release), but strongly condemned by employers’ organisations in certain Eastern European countries (Romania, Bulgaria, Poland, Hungary), which see it as a protectionist manoeuvre and fear the loss of many jobs and businesses in this sector.

Improving access to vocational training : On 1 July, the European Commission presented a communication on its “European Skills Agenda for sustainable competitiveness, social fairness and resilience” (see press release). It sets four ambitious objectives to be achieved within the next five years, such as boosting adults’ participation in training actions over a 12-month period from a level of 38% in 2016 to 50% in 2025 (i.e. a 32% increase). Similarly, the participation of low-qualified adults in training actions is set to rise from 18% in 2016 to 30% in 2025. Two other indicators relate to the acquisition of basic digital skills and training for the unemployed. To achieve these four objectives, the Commission is proposing 12 actions, including implementing “the right to portable and quality-checked training”, which already exists in certain countries. Progress towards achieving these objectives will be monitored as part of the European Semester (Editor’s note: this is the mechanism for coordinating the economic and social policies of Member States, see European Semester).

A “bridge to jobs” for young people : On 1 July, the European Commission presented a communication entitled “Youth Employment Support: a Bridge to Jobs for the Next Generation“ and put forward to the Council a recommendation entitled “A Bridge to Jobs – Reinforcing the Youth Guarantee” (see press release). The recommendation seeks to reinforce the “Youth Guarantee” scheme created in 2013, following the economic and financial crisis of 2008. Its aim at that time was to ensure that NEETs (Editor’s note: an acronym used for young people who are ‘Not in Employment, Education or Training’) received a good-quality job offer, training, an apprenticeship or an internship within four months after losing their job or leaving formal education. This objective is being maintained and expanded. The Youth Guarantee will now cover young people aged between 15 and 29 (rather than 25, as at present) and its scope will be extended to encompass the most vulnerable young people. (see Youth Guarantee, NEET).
> Find out more: See resolution passed by the European Trade Union Confederation on 4 July, which offers a critical analysis of the current scheme and press release issued by ETUC; the report by the European Court of Auditors highlighting the weaknesses of the Youth Guarantee and Member States’ inability to offer a solution within four months.

German presidency of the EU : An extremely busy programme lies ahead for Germany’s six-month presidency of the EU, which began on 1 July: adoption of the recovery plan and the Multiannual Financial Framework, implementation of the Green Deal and efforts to reach a Brexit deal. In the area of social affairs, the presidency has chosen the slogan #MySocialEurope and made “protecting EU citizens” a key priority by pursuing “a sustainable social and employment policy in a spirit of solidarity”. This will be achieved via effective implementation of the principles of the European Pillar of Social Rights, beginning with “minimum guaranteed income benefits in the Member States” to enable those in need to “participate in society and the labour market”; an “EU framework for minimum wages and the strengthening of the role played by social partners”. It also intends to push on with the proposed legislation covering the European unemployment reinsurance scheme and to put forward a law to improve the working conditions of seasonal workers. The presidency would also like to “realise the objective of equal pay for women and men for equivalent work, continue to promote and raise awareness of the equality of women and men, and make this equality visible, and also tackle gender-based violence”. It advocates “a division of gainful employment and care work between women and men”. The presidency will monitor the social aspects of the forthcoming European regulatory framework for AI and the work being done to ensure better working conditions in the platform economy. Lastly, it is committed “to an EU action plan to strengthen corporate social responsibility in global supply chains”. This plan should promote human rights, social and environmental standards and transparency, and take into account the experience and lessons learned from the pandemic. “A focus here could be EU legislation on corporate due diligence requirements”, explains the Federal Labour Minister, “based on the UN Guiding Principles on Business and Human Rights”.
> Find out more: The programme for Germany’s presidency of the EU; press release issued by the Federal Ministry of Labour.

• Right to collective bargaining for the self-employed : The European Commission, which has set itself the objective of improving the working conditions of online platform workers, has decided to resolve a legal problem, i.e. that of how self-employed workers can be allowed to negotiate collective agreements that are not subsequently deemed unlawful under competition law (see Article 101 TFEU and Competition law and collective agreements). To this end, on 30 June it invited all stakeholders (competition authorities, public bodies, universities, legal and economics experts, trade unions and employers’ organisations) to take part in the public consultation on the Digital Services Act Package [section V of the consultation on “Self-employed individuals and platforms” (see press release). The European Trade Union Confederation sees this as an attempt to drag out the issue as part of a wider consultation, whilst at the same time delaying resolution of the problem. “The EU should confirm the correct interpretation of EU Competition Law to fully exclude collective agreements from the remit of Article 101 TFEU and national competition rules. It does not need years of debate” (see press release).

A gradual increase in the statutory minimum wage : On 30 June, the Minimum Wage Commission, which meets every two years to consider adjustments to the statutory minimum wage introduced in 2015, recommended a phased increase in the minimum wage, from the current figure of 9.35 euros (gross) per hour, to 10.45 euros from 1 July 2022 onwards. The incremental increases are as follows: 9.50 euros on 1 January 2021, then 9.60 euros on 1 July 2021; 9.82 euros on 1 January 2022 and 10.45 euros on 1 July 2022. The minimum wage will then have risen by 11.8% in total over this period. The Federal Minister of Labour and Social Affairs, Hubertus Heil, will have this recommendation adopted by the government and he also intends to put forward new proposals to raise the minimum wage (see press release). The German Trade Union Confederation (DGB), which is calling for a minimum wage of 12 euros per hour, has expressed its satisfaction with the recommendation, which will put “just under an additional 2 billion euros in employees’ pockets”, but is also calling for a strengthening of the cover provided under collective bargaining agreements, as this alone can deliver any real improvement in working conditions and wages (see press release).

• Trade union mobilisation against racism : On 7 July, the federal executive committee of the German Trade Union Confederation (DGB) passed a resolution entitled “For cohesion, against racism and discrimination”. For its part, the executive committee of the chemical industry trade-union federation IG-BCE, which is affiliated to the DGB, has passed a declaration of intent to “actively combat racism and right-wing extremism, including in the workplace”. It has drafted a model agreement, to be negotiated between works councils and employers, “to take concrete steps towards promoting workplace diversity” (see press release).

Extension of parental leave : The government wishes to introduce paid parental leave from 21 August 2022 onwards. Parents are currently entitled to 26 weeks’ parental leave per child, which they can take during the first eight years of their child’s life. In principle, this time is taken as unpaid leave. Under the new plan, for the first nine weeks of parental leave, the Dutch social security institution (UWV) will pay benefits to these parents, which will be equivalent to those they receive in connection with maternity leave (currently a maximum of 110 euros per day). Paid parental leave must be taken during the first year of the child’s life.
> See also article published by DutchNews.nl and article on the Ius Laboris website.

• “Last in, first out” principle to be challenged? : The various political parties are currently debating the idea of challenging the employment legislation embodied by the current “last in, first out” golden rule, in cases where workers are made redundant on economic grounds. Where a workforce is to be downsized, the idea would involve making older employees redundant and keeping on younger ones.

Restructuring : The European Works Council of Airbus SE (SE-WC) has published a press release elating to the European aircraft manufacturer’s announcement of 17,600 job losses, both within the group itself and at its Stelia Aerospace and Premium Aerotec subsidiaries. In this text, which was approved by all of the trade unions represented on the SE-WC, its members condemn the job losses and the risk of losing competences, which might jeopardise the company’s recovery. The press release emphasises that “all the trade unions represented on the SEWC and the national employee representative bodies will do everything in their power to present alternatives to these drastic job cuts”.
> See also: IndustriAll Europe’s statement regarding the reorganisation announced by Nokia.

• Teleworking: Multinational companies have begun to take significant steps to pave the way for an expansion in the use of teleworking. The executive committee of the BNP Paribas European Works Council has set up a working group to examine this topic. “The aim is to reach a European-level agreement, or even a charter, covering teleworking”, explains Gabriel Di Letizia, secretary of the BNP Paribas EWC. “A working group has also been established on the SAP EWC”, says Catherine Bordelon, who is an EWC executive committee member and co‑chairs this working group.


• Relocating production: The European Works Council of the Swiss pharmaceuticals group Novartis (50,000 employees in Europe), which is made up of 47 members from 26 European countries, has sent a letter to MEPS, calling on them to take steps to ensure that Europe’s antibiotics are produced inside the EU. The EWC is concerned in particular about active ingredients, where 80% of Europe’s consumption is currently produced in China and India.
  > Find out more: article in Tiroler Tageszeitung.

Transposition of EU directives through collective agreements : The European Foundation for the Improvement of Living and Working Conditions (Eurofound) has published a study examining how European directives can be transposed into Member States’ domestic law by way of collective agreements. The study emphasises that “social dialogue and collective bargaining are often in a better position than the normal legislative route to conciliate between economic and social objectives”, and highlights the small number of Member States that make use of this option (Belgium, Denmark, Luxembourg). This study is of interest to the European Commission, which aims to strengthen the role played by collective bargaining in the EU.
> See also summary of the study.

• Protection of supplementary pension rights: On 7 July, the European Commission published a report on the application of Directive 2014/50/EU of 16 April 2014 on minimum requirements for enhancing worker mobility between Member States by improving the acquisition and preservation of supplementary pension rights (see press release).