IR Notes

On 28 September, the European Commission launched the second-stage consultation of European social partners with a view to updating the Quality Framework for EU Traineeships of 10 March 2014 (see Traineeship). Earlier this year, on 10 January, it published an Evaluation of the Quality Framework (see IR Notes 200). It then began a public consultation, and on 11 July, launched a first-stage consultation of European social partners (see press release). Following these consultations, the Commission has taken the view that additional measures could be taken at EU level to improve the existing framework, which defines 21 principles allowing States to guarantee high-quality traineeships. On 14 June, for its part, the European Parliament called for the adoption of a directive to strengthen protection for trainees (see IR Notes 211), thereby agreeing to a trade union demand. The employers, for their part, reject the idea of any binding instruments and want the Commission to opt for the use of a stronger Council recommendation. In its consultation document, the Commission warns that it cannot meet all of the unions’ demands: it cannot impose compulsory remuneration for traineeships (under TFEU Article 153 para. 5), nor can it grant trainees access to the social protection applicable to workers as this too, is matter that comes within the sole competence of Member States (TFEU Article 153 para. 4). Nevertheless, the Commission believes that an EU action should trigger “an upward social convergence”. The aims here are to combat the possible abuse of traineeships, enhance their quality and improve access to them. To this end, it advocates two courses of action: 1/ an update of the (non-binding) recommendation on the quality framework for traineeships, including monitoring of Member States’ commitments within the framework of the European Semester; 2/ the adoption of a binding instrument, such as a directive, to achieve a more effective application of the measures envisaged. For example, a directive could define what “abuse of a traineeship” means in practice and fix a maximum duration for a traineeship (or for the overall duration of several traineeships with the same employer), to prevent real jobs being replaced by long-term traineeships. It could incorporate the principle of fair pay, which would ensure that the economic value of the trainee’s work is appropriately remunerated, taking account of the apprenticeship/training content and the actual work undertaken, the level of the tasks and responsibilities involved, and the value and intensity of the work and working hours in question. The directive could also extend to trainees certain rights granted to “workers”, but given that the existence of pay is a key element in the definition of a “worker” within the meaning of EU legislation, unpaid trainees cannot in principle be regarded as “workers” under EU law. The directive might therefore introduce a legal obligation to provide trainees with written information on their training objectives, so long as the trainees in question are deemed to be “workers” (i.e. they are paid). European social partners have until 9 November to state their views on this issue, the aim being to achieve a balance between non-binding measures and a directive, whilst at the same time adhering to the fields of competence assigned to the Commission by the TFEU. If the social partners abandon the idea of negotiating on this subject, the Commission will be able to put forward proposals for a recommendation and a directive by the year end, as announced in its 2023 work programme.

Violence and harassment at work : The Council has adopted its position on a proposal for a decision inviting Member States to ratify ILO Convention 190 on violence and harassment (see Harassment and violence at work).). This decision has yet to be formally adopted by Parliament (see press release). The Istanbul Convention on Preventing and Combating Violence against Women also entered into force, in the EU, on 1 October (see press release).

Cross-border telework : A framework agreement that came into force on 1 July allows a waiver from Article 13 para. 1 a) of Regulation 883/2004, which provides for affiliation to the social security system of their State of residence, when a worker carries out a substantial proportion of their work in this State and the rest of it in another State. In the case of telework, with the employee’s agreement, an employer can therefore submit a request for the employee to come under the social security legislation of the Member State in which the employer has their registered office or operational headquarters, if the employee’s cross-border telework in their State of residence represents less than 50% of their total working hours (see Telework).. The agreement applies only between its current 19 signatory countries (see the federal public service website of the Belgian social security system, which is responsible for monitoring the agreement).

Due diligence in the energy sector : A document on “Potential human rights risks along supply and value chains in the energy sector” has been adopted within the framework of the “sectoral dialogue in the energy sector” established in January 2023, which brings together representatives of companies, associations, trade unions, civil society organisations and the German Institute of Human Rights (see press release). It is coordinated by the Federal Ministry of Labour within the framework of the National Action Plan for the Economy and Human Rights. The publication, which analyses supply chain risks for six sectors (photovoltaic energy, battery storage, wind energy, natural gas, electricity and hydrogen networks), provides “an initial benchmark for performing risk assessments within the meaning of the law on due diligence”, according to the Ministry.

Positive impacts of collective labour agreements : The trade union GPA has commissioned the Economica research institute to evaluate the economic effects of collective labour agreements at individual level (see press release). This study will strengthen the European Commission’s determination to raise to 80% the number of employees who are covered by a collective bargaining agreement, in order to combat low wages. According to the study, which covers agreements concluded from the third quarter of 2022 through to June 2023, the average wage increase was 8.7%, whereas year-on-year inflation over this period was 7.75% on average. The study evaluates the difference between the effect of the increases obtained over this period on an employee’s entire career, compared to the effect of giving them a one-off payment. It demonstrates that receiving a general increase is much more advantageous than a one-off payment.

Sustainability report : On 28 September, the government put forward a bill amending the law on accounting practices, the law on auditing and certain related legislation. This text transposes Directive 2022/2464 of 14 December 2022 on Corporate Sustainability Due Diligence. The legislation is due to enter into force on 31 December 2023 and to apply from financial year 2024 onwards, with the first reports being published in 2025, as provided for by the directive. The bill adapts the directive to the Finnish context, by including cooperatives within its scope of application, in addition to listed companies. These cooperatives play an important role in the country’s economy (see press release).

Disputed labour law reforms: : In August, the government put forward bill no. 5053/2023, which incorporates Directive 2019/1152 of 20 June 2019 on transparent and predictable working conditions in the EU, which should already have been transposed into domestic law. This bill also contains a number of provisions that are perceived as an attack on workers’ rights and working conditions. The bill is facing criticism for legitimising exploitative practices such as “zero hour contracts”. In addition, Article 9 of the new bill makes it legal for employees to work for longer than the 8 hours/day limit, by having a second employer. This provision allows a person to do a full day’s work (8 hours) for one employer and to simultaneously hold a second part-time job, working for up to 5 hours/day, with a different employer, i.e. to work for a total of 13 hours during a given 24-hour period. This provision is nonetheless still compliant with presidential decree no. 88/99, which prescribes a minimum continuous rest period of 11 hours for workers; this requirement remains binding. The new provision is designed to take account of a reality in the labour market, by encouraging workers to declare part-time contracts, rather than continuing to work on a self-employed basis (a phenomenon associated with undeclared work and the underground economy). However, other provisions of the bill strengthen the digital card mechanism, with a view to logging working hours and overtime in real time. Employers face heavy fines in the event of a discrepancy between the amount of work actually undertaken and the number of hours registered on a worker’s card. Lastly, Article 31 of the bill undermines the right to strike, by criminalising acts that impede unrestricted access for workers arriving at or leaving their place of work. As a result, anyone who physically or psychologically intimidates workers who want to work or who participates in workplace occupations during strikes will be liable for a minimum prison sentence of six months and a fine of at least 5,000 euros. This new bill therefore introduces several major changes. While some provisions have been well received, others have aroused debate and controversy, or have even been firmly opposed by the trade unions (see GSEE confederation press release), reflecting the complexity of the challenge of achieving a balance between flexibility and worker protection in a dynamic labour market.

Telework allowance : On 21 September, the government announced that telework costs will not be liable for tax or social security contributions, up to a value of 22 euros per month (i.e. for 22 days’ work). This amount can be increased by 50% (33 euros for 22 days’ work) via a collective agreement (see press release).

Towards a law on payment of wages: : The Ministry of Labour and Social Solidarity is currently working with World Bank experts, who are providing technical support as it prepares a law on payment of wages. The aim is to eliminate wage inequality levels and find ways to boost employees’ performance in every area of the public sector. The Minister of Labour and Social Solidarity, Simona Bucura-Oprescu, is continuing to consult with representatives of the authorities and the trade unions (see press release).

Renegotiation : The crop protection product and seed producer Syngenta (32,761 employees, just under one half of whom are in Europe) has renewed its Employee Consultation Council Agreement which, on a number of points, takes its inspiration from the discussions currently under way on revision of the directive. The agreement replaces that of 2010 and remains a so-called pre-directive agreement, which is subject to Article 13 of the 1994 directive. Decisions taken within one country covered by the agreement which have material effects on employment relationships in another country, are a matter within the EWC’s competence. Information and consultation “shall take place in an appropriate timeframe before a final decision has been reached to allow the EWC to understand the issue and proposed solutions and come to an opinion, which may be considered in the decision-making process”. The agreement explicitly adds care for the environment to the list of subjects that require consultation. The EWC must receive a reasoned written reply to its opinion from central management within a reasonable period. To determine how long the procedure should last, the text refers the reader to a detailed timetable to be agreed on a case-by-case basis between management and the select committee. On the matter of confidentiality, the text states that before sharing any confidential information, management will indicate the reasons for the confidentiality and to which part of the oral and/or written information confidentiality is applicable, and who is currently aware of the information. It will also indicate for how long the information will remain confidential and whether the information can be divulged to certain persons.

• Renewal : The Norwegian construction group Veidekke (8,500 employees) has renewed its global framework agreement with the global trade union federation BWI (see press release).

Intelligence artificielle : Several recent publications throw interesting light on the issue of AI (see Artificial intelligence). Eurofound examines the ethical issues raised by “digitalisation” and their impacts on working conditions and terms of employment (Ethical digitalisation at work: From theory to practice). The report highlights the relevance of collective bargaining at company level for the purpose of achieving consistency in relation to the ethical needs identified. The OECD has published a theoretical and practical guide that aims to help stakeholders understand and analyse the impact of AI in the workplace (Defining and classifying AI in the workplace). It clarifies the definition of AI and proposes a classification system for AI systems in light of their workplace impacts. The initiative prompts consideration of AI’s possible effects: on the volume and quality of jobs, as well as on the risks of digital exclusion. The ILO looks at the main trends in changes in employment linked to the use of generative AI software, such as ChatGPT (Generative AI and jobs: A global analysis of potential effects on job quantity and quality). The aim is to assess the extent to which jobs, and their component tasks, are exposed to the effects of generative AI, both from a quantitative and qualitative viewpoint. The authors call for particular vigilance with regard to impacts on the quality of employment, including the aspects of work intensity and autonomy at work. They also point out areas that call for vigilance, inviting those in charge to regulate the deployment of these technologies, to ensure that a dialogue is maintained with employees and to invest in training. Lastly, Cracked Labs explores how the software marketed by the German start-up company Celonis works. This software is designed to analyse, standardise and optimise workflows in order to make them more productive and efficient, whilst at the same time cutting costs (Monitoring, streamlining and reorganizing work with digital technology). And to get to grips with this subject, we recommend a publication produced by the ETUI, which will help with social dialogue (AI: discovering the many faces of a faceless technology) and the Guide to Artificial Intelligence at the workplace published by the European Economic and Social Committee.