IR Notes

At the Employment and Social Affairs Council meeting on 12 October, EU Ministers of Labour declared that it was “very important to ensure workers’ involvement in company decision-making, notably in cases such as company reorganizations, closures, mergers and acquisitions, downsizing, outsourcing, and relocations”, (see Council press release). Under pressure from the European trade union movement (see press release issued by the European Trade Union Confederation – ETUC), the European Commissioner for Jobs and Social Rights, Nicolas Schmit, secured a debate on worker participation and support for workers in restructuring (see Restructuring). The press release states that ministers “insisted that the pandemic should not serve as an excuse to cut workers’ rights on information and consultation”. They stressed “that it was crucial for the economic recovery and successful restructurings to ensure inclusive social dialogue at all levels.” During the debate, the participants highlighted the important role of EU funds, such as the European Globalisation Adjustment Fund, in addressing the adverse effects of the social impact of restructuring. At the press conference, Nicolas Schmit confirmed that “major restructuring” were necessary, with a view to tackling not only the Covid-19 crisis, but also the transitions to a green economy and to digitalisation. Nicolas Schmit’s opinion is that the answer lies mainly in training, which will enable workers to acquire new skills and change careers. He also acknowledged that the 2002 Information and Consultation Directive “was not always being complied with”, insofar as employees were not “being informed in advance” of restructuring announcements made. “This practice is in breach of EU law”. He “called on companies” to adhere to social dialogue procedures, which are “vital” for “tackling these issues together”. While these declarations of principle are welcome, no concrete measures emerged, either in terms of revising the existing legislation, or of plans to promote anticipation of company restructurings. To keep up the pressure, the ETUC has launched a petition calling for more democracy at work (see press release).

Gender equality in the labour market: A debate was held on this topic but it did not result in any concrete measures being taken (see Equality between women and men ; Gender equality). Several ministers expressed their support for the directive announced in the area of pay transparency. The European Commissioner for Equality, Helena Dalli, plans to resume discussions on the proposal for a directive to increase the level of women’s participation on company boards. “Unless binding provisions are introduced, things won’t change”, she emphasised. “Quotas work”, she added, stressing that the proportion of women on company boards had risen by 27% in Member States that had legislated in this area, compared to a rise of 2.9% in those that had not. Franziska Giffey, the German Minister for Family Affairs, Senior Citizens, Women and Youth, acknowledged that governments, including her own, were divided on this issue, and that it would probably continue to be dealt with at national level. The European Commissioner also emphasised the importance of rapid implementation of the Work-Life Balance Directive and the adoption of a rule imposing total pay transparency across all companies.

• Protecting seasonal workers: The Ministers of Labour adopted conclusions “for improving the protection of seasonal workers in the EU” who are often exposed to “adverse working and living conditions and the risk of exploitation” (see Seasonal worker). They must be provided with sufficient information regarding their rights and obligations, in a language they can understand.  The Council invites the European Commission to conduct a study on intra-EU seasonal work and identify the main challenges faced, including, where possible, during the COVID-19 pandemic, to assess the areas where the protection of seasonal workers should be enhanced (see Council press release).  Hubertus Heil, the German Minister of Labour, expressed his “shame” regarding workers employed in abattoirs and butchers’ premises, where they have to put up with “appalling working conditions”. “We cannot allow ourselves to have second-class workers”, he added, calling on the European Labour Authority to boost cooperation between Member States.


• Guaranteeing a minimum wage: TThe ministers adopted unanimous conclusions on “Strengthening Minimum Income Protection to Combat Poverty and Social Exclusion in the COVID-19 Pandemic and Beyond” (see Basic income). The text acknowledges the “stabilising effect for the economy as a whole” of minimum incomes. These schemes help “peoples’ inclusion in employment and society”. Member States and the Commission must collaborate in order to apply the principle of the European Pillar of Social Rights, whereby everyone lacking sufficient resources has the right to adequate minimum income benefits ensuring dignity at all stages of life (see Council press release). Hubertus Heil called on Nicolas Schmit to put forward “a plan to combat poverty” which, he said, “I hope will contain concrete proposals”.


• Guarantee for youth: Ministers reached unanimous agreement on the renewal of the guarantee for youth (see Youth Guarantee), and raised the age limit for beneficiaries from 24 to 29 years.


• Other matters: Speaking on behalf of the German Presidency of the EU, Hubertus Heil stated that he had “a huge amount of work to get through”. He announced that work would continue on a European framework for the minimum wage, with the support of the Portuguese Presidency that will take over from Germany on 1 January 2021. Ministers will also seek a solution at EU level, concerning the responsibility of European companies across the entire supply chain to commit to respecting human rights.

A recommendation for free movement : On 13 October, the Council adopted a recommendation on a coordinated approach to the restrictions of free movement in response to the COVID-19 pandemic. This recommendation aims to avoid fragmentation and disruption, and to increase transparency and predictability for citizens and businesses (see press release. The Commission welcomed this adoption and pointed out that it had published the Re-open-EU website to keep Europe’s citizens informed about conditions governing entry into the Union’s various countries. “Any measures restricting free movement to protect public health must be proportionate and non-discriminatory, and must be lifted as soon as the epidemiological situation allows.”

Musculoskeletal disorders : On 12 October, at Bilbao, the European Agency for Safety and Health at Work (EU-OSHA) launched its 2020-2022 campaign “Healthy Workplaces Campaign: Lighten the Load”, which is focused on work-related musculoskeletal disorders (MSDs) (see press release).

A limit on the number of successive temporary work assignments : For the first time, the Court of Justice has interpreted Article 5, paragraph 5 of Directive 2008/104 on temporary agency work (see Temporary agency work) , which requires Member States to take measures “with a view to preventing misuse” of temporary work assignments “and, in particular, to preventing successive assignments designed to circumvent the provisions of this Directive.” The case concerns an Italian agency worker who was assigned to a user undertaking between 3 March 2014 and 30 November 2016, under several successive temporary work contracts (eight in total) and various extensions thereof (seventeen in total). He took his case to court to apply for this employment relationship to be reclassified as a permanent contract. The court in question considered whether Italian law, which allows successive contracts of employment to be signed for temporary work, was compatible with the Directive. The Court of Justice held that a Member State is 1/ neither obliged to limit “the number of successive assignments that the same temporary agency worker may carry out at the same user undertaking” ; 2/ nor is it obliged to “make the lawfulness of the use of temporary agency work subject to the prerequisite that it must be justified by technical, production, organisation or replacement-related reasons”. On the other hand, a Member State must take measures “to preserve the temporary nature of temporary agency work” in order “to prevent successive assignments of the same temporary agency worker to the same user undertaking in order to circumvent the provisions of Directive 2008/104 as a whole”. In its ruling, it sets out a number of criteria for identifying intent to circumvent the Directive. Member States are asked to check whether their legislation prevents circumvention of the provisions of the Directive (CJEU, 14 October 2020, case C-681/18, J.H).

Agreement on the right to disconnect: : On 1 October, the trade-union federations CC.OO, FINE and UGT, in conjunction with the employers’ organisation CECA, signed the national collective agreement for savings banks (60,000 employees), which oversees teleworking and includes a right to disconnect (see Right to switch off). This is the first time that a national sector-wide agreement has included the right to disconnect at the end of an employee’s fixed working day. A period of disconnection is compulsory between 19.00 and 8.00. Moreover, any meetings held outside the normal working day must finish by 19.00. As far as teleworking is concerned, employees who spend more than 30% of their working hours engaged in this, will be entitled to a computer, a mobile phone and an ergonomic chair provided by their company. They will also receive an office equipment bonus of up to 130 euros, plus 55 euros per month to cover other overheads, pro rata to their working hours. Those who telework for less than 30% of the time will receive a computer and a mobile phone, and will be able to telework from a location of their choice (see press release issued by CC.OO and UNI Global Union).
> Note: the text also includes paid leave for gender-based violence for up to three months.

• Integration of disabled workers : The Federal Association of Chemical Industry Employers (BAVC) and the IG BCE trade union have signed the first branch-level agreement in Germany on inclusion of disabled workers at company level (see IG BCE press release).
  
  

  > Further national information is available in the (July-August and September 2020) editions of the Collective Bargaining newsletter published by the European Trade Union Institute, and in the June, July and August 2020 editions of Flash reports on Labour Law, published by the European Commission.

  
  

Resources boosted : On 16 July, the agreement on the EWC of the Mobivia Driver Services group was revised, by means of unanimous agreement among members of the special negotiating body. The group has 21,300 employees in Europe, who are primarily employed at the A.T.U., Norauto and Midas car care centres. At its first meeting, on 7 October, the council appointed the five members of its executive committee, which will meet “as often as necessary and in any case, at least once every three months”. The agreement boosts the resources granted to the European Works Council. “We’re moving from one annual plenary meeting to four a year”, emphasises its deputy secretary, Alain Monpeurt (CFE-CGC). The council is consulted upstream of any projects that are transnational in scope, before these matters are referred to representation bodies at national level. The agreement states that “When the local works council is consulted, it shall be informed about the outcome of the European Works Council consultation”. The agreement does not provide for a budget but the company will refund various types of expenditure. It includes a clause of a type rarely encountered, which stipulates that “management will pay any necessary costs linked to legal advice sought by members of the EWC executive committee within the framework of their EWC duties, after management has approved an estimate of the cost of this advice”. The EWC is entitled to commission an annual analysis report on the company’s accounts and, from time to time, it may also seek assistance linked to specific procedures or particular topics.

Ethical charter : The management of Air France-KLM and its group European Works Council have redefined “the values and fundamental rights which underpin the identity of the companies within the Group, and guide their social and ethics policy”. They have adopted a document entitled “Air France – KLM Principles”, which replaces the Social Rights and Ethics Charter published in July 2013. In terms of ethics, the text provides a checklist of five “hypothetical questions” designed to guide each employee’s decision-making process, e.g. “Would I be comfortable explaining this action to my family, friends, and coworkers?”. If the employee replies “No” to any of these questions, they are asked to seek guidance from their colleagues and manager. The text also offers a mechanism for reporting possible breaches of these principles, through to a whistleblowing procedure. The principle of “zero tolerance for any form of harassment, whether of a sexual, verbal, physical, or psychological nature” is added to the text of the 2013 charter. In terms of digitalisation, it encourages employees to “exchange ideas on topics including integrating diversity in the design process and considering the environmental impact of our information systems”.

Grouping together IT services: : The select committee of the Generali EWC held an extraordinary meeting on 2 October to discuss the GOSPEL project, whose objective is to create a new company designed to harmonise IT infrastructures and speed up the digital transformation. Following the meeting, the council published a press release for all group employees, to explain the project to them. This is an example of good practice, as set out in Article 10 para. 2 of Directive 2009/38/EC, which invites the members of a European Works Council to inform the representatives of the employees at local level or the workforce as a whole “of the content and outcome of the information and consultation procedure”. The procedure is ongoing.

> See also:
– Press release distributed by the Verizon EWC, informing the group’s employees of the tribunal’s ruling against Verizon management for breaching the legal requirement to consult the EWC;
– Statement issued by the Veolia European group council, following its extraordinary meeting on 30 September 2020, held to discuss the purchase of Engie’s shares in the Suez group, with a view to taking control of the company.

Ruling out compulsory redundancies : After ten meetings of the Airbus SE works council (the SE-WC), the latter issued an opinion on 5 October, on the “Odyssey” project (see IR Notes 149). This plan, which provides for almost 15,000 job losses, was drawn up to address the consequences of the Covid-19 pandemic. On the basis of two specially commissioned reports, the council calls on the company to “freeze industrial transfers, and even re-insource some skills and industrial activities currently located outside Europe”. If this is not done, “the SE-WC fears that some industrial facilities and the related competences the Group possesses in Europe could disappear.” Putting forward a series of measures intended to protect jobs, the SE-WC explains that the “shared goal that has been clearly identified is to now reach negotiated collective solutions with a view to ruling out any risk of compulsory redundancies.” In France, where 4,248 jobs were due to be lost, two agreements were signed on 12 October: one on the new “long duration partial unemployment” (APLD) scheme, which would save 1500 jobs, and the other on social measures designed to avoid compulsory redundancies and to provide support for employees who take voluntary redundancy.
> See also: Press releases issued by FO and the CFE-CGE.

Monitoring of employees : Pressure is mounting on Amazon in Europe. On 30 September, 33 trade-union leaders sent a letter, to European Commissioners Nicolas Schmit and Thierry Breton. It follows the revelations on the Vice website that Amazon is looking to hire intelligence analysts to track “labor organizing threats” within the company (thus placing trade unions in the same monitoring category as hate groups and terrorists…) and the way in which Amazon monitored its delivery drivers by accessing their closed Facebook groups. On 6 October, the Recode website revealed the company’s use of new software to track attempts at unionisation. On 7 October, 37 MEPs sent a letter to the CEO of Amazon, Jeff Bezos. Expressing their concern at the ways in which work is organised within warehouses that allow the company to avoid “any form of workers’ collective organization”, the MEPs state that “recruiting employees to spy on potential opponents, should they be internal or external, is intolerable”. Furthermore, several sites in Germany are on strike, while in Spain, the labour inspectorate found that 4,000 Amazon delivery drivers have been wrongly classified as freelance workers. It has ruled that Amazon owes 6 million euros in unpaid social security contributions (see UNI Europa press release and article in El País).

> See also: report on the meeting of the union network of the HeidelbergCement group, organised by IndustriALL Global Union and the Building and Woodworkers International (BWI), with the support of Germany’s Friedrich Ebert Foundation.