IR Notes

The European Commissioner for Jobs and Social Rights, Nicolas Schmit, has announced that the European Commission will put forward its proposal for a revision of the European Works Council directive at the beginning of 2024, after receiving the responses of European social partners to the second-phase consultation (see IR Notes 213). As with the previous revision of the directive in 2008, the employers’ organisation BusinessEurope has said it is ready to negotiate on this subject, whereas the European Trade Union Confederation (ETUC) has called on the Commission to put forward a proposal for a directive (see European works councils). On 4 October, the employers’ organisation, which has been opposed from the outset to a revision of the 2009 EWC directive, expressed its desire for a “mutually beneficial revision of this important directive”, arguing that the “European social partners are the best placed to effectively deal with” this revision. “We call on the ETUC to live up to its responsibilities and engage in negotiations aimed at improving the functioning of the European Works Councils”, said Markus J. Beyrer, BusinessEurope Director (see press release). Ceemet, the employers’ organisation representing the metal, engineering and technology-based industries, has supported the call for negotiations. It believes that “the issue which regards the operation of EWCs should be discussed within the context of the European social dialogue” (see press release). For its part, the ETUC adopted its position at the executive committee meeting on 27 and 28 September, reaffirming its commitment to social dialogue, while at the same time reiterating “its clear demand that the EWC Directive be strengthened by means of a EU legislative act in such a way that the rights enshrined therein are effectively applied and enforced” (see ETUC response). The ETUC believes that the idea of opening negotiations, as proposed by BusinessEurope, is a delaying tactic, which is designed to prevent the current Commission from putting forward a text before reaching the end of its term. Isabelle Schömann, ETUC Deputy General Secretary, comments: “Considering the importance, the timing, and the scope of the initiative, […] a legislative initiative triggered by the Commission remains the most suitable instrument to provide for substantial improvements of the rights of EWCs still in this legislature period” (see ETUC press release). It is to be expected that there will be no negotiations on this issue, which means that the Commission can now put forward a proposal for a directive, as well as a proposal in favour of a non-binding text to cover some of the subjects that, in its view, call for intervention at European level. The Commission’s initiative, which had been announced for late 2023, will probably be unveiled in early 2024. The task of initiating the legislative process will in all likelihood be left to the future Commission, which is due to be established in October 2024. In concrete terms, it is unlikely that a directive will be passed before 2026 or transposed before 2028. This may seem a distant prospect, but on the other hand, the forthcoming text put forward by the Commission will act as a source of inspiration for all EWC negotiations and renegotiations.

Employment and Social Affairs Council : EU ministers for employment and social affairs held a meeting on 9 October to discuss the European Semester and the impact of new technologies on employment (see press release). They reached a political agreement on a recommendation on developing social economy framework conditions (see press release). They approved the Council’s conclusions on mental health and precarious work (see press release), on equal access for Roma to adequate and desegregated housing and on social protection for the self-employed (see press release). The conclusions on mental health, produced by the Spanish Presidency of the EU (see IR Notes 208), call on the European Commission to “reflect on an adequate policy for addressing psychosocial risks at work based on the legal obligations laid down in the Framework Directive 89/391/EEC, adapted to the new realities affecting the world of work” and to consider “the right to disconnect as a measure that contributes to the prevention of psychosocial risks at work”, taking account of the current negotiations involving European social partners (see Psychosocial risks).

• A “turning point for transport” : The Ver.di trade union federation and Fridays for Future climate activists are pursuing their cooperation (see IR Notes 204) and joining forces to secure further investment by the Federal State in public transport infrastructure and to improve working conditions in the sector. On the eve of a meeting of the transport ministers of Germany’s various states (Länder) and of the Federal State, Ver.di organised a press conference with 11 works councils from the public transport sector, to make the case that the current level of funding for this sector is insufficient, at a time of growing needs to cut greenhouse gas emissions and to substantially expand the workforce (see press release).

Stopping work in a heatwave : Since 2019, construction workers have been allowed to stop work and take “heatwave leave” when the temperature outdoors rises above 32.5°. After consulting the works council, the employer can place its employees on “heatwave leave” and then pay them 60% of their normal wage. This amount is reimbursed to the employer by the Austrian holiday pay fund BUAK. However, the trade unions believe this arrangement is not working properly: during the summer of 2023, only one building worker in four was granted this leave, according to Josef Muchitsch, federal president of the Bau-Holz trade union. If labour law isn’t adapted to meet the current climate conditions by next summer, “as a trade union, we’ll cooperate with climate movement activists and blockade any sites that don’t allow workers to stop work, despite the heat reaching dangerous levels”, warns Josef Muchitsch, whose federation has just concluded an alliance with climate activists from Fridays for Future and System Change not Climate Change. The alliance is calling for changes to labour law (allowing heatwave leave to be taken when temperatures reach 30°, performing a risk assessment when the temperature rises above 25°, etc.) and for climate targets to be set (expanding public transport, environmentally-friendly infrastructure, etc.) (see ÖGB press release).

• Minimum wage : The government has announced that the minimum monthly wage will rise to 933 leva (477 euros) on 1 January 2024, i.e. an increase of 19.6% on its current value, under a legal rule fixing the minimum wage at 50% of the average gross wage over a 12-month period (see press release).

Mental health : The UGT trade union confederation has issued a report on mental health and work that contains some “extremely serious data”, according to UGT General Secretary, Pepe Álvarez. In 2023, the report records 451,646 cases of sick leave taken for mental health reasons up to 1 October, with a record high figure in May, when there were 56,600 workers on sick leave, i.e. more than the figure of 51,000 seen during the Covid lockdown months in 2020. Sick leave days attributable to mental health problems already represent 15% of the total (17% among women, 12.4% among men), and these absences last for an average of 108 days. Only tumours and circulation problems account for longer periods of absence (see press release).

Occupational disease : Decree no. 2023-946 of 14 October 2023 revises and supplements the occupational disease charts by recognising, for the first time, cancers of the larynx and ovaries caused by inhaling asbestos dust. The decree sets out the conditions of eligibility for treatment plus a list of jobs likely to give rise to these pathologies. Such recognition means that the workers concerned will qualify for better compensation and support packages.

A “sufficient” minimum wage : At a time when the question of introducing a statutory minimum wage is at the heart of the political debate, the Court of Cassation [Corte di Cassazione] (ruling no. 27711 of 2 October 2023) has joined in by affirming that the courts can fill in the gaps left by Parliament and go even further than the pay scales set by collective labour agreements. Its reasoning is based on Article 36 of the Constitution, which grants workers the right to receive a remuneration that is both “proportional” to the quantity and quality of the work performed, and “sufficient” to ensure that the worker can live in dignity. Traditionally, case law uses this article to apply the minimum pay levels provided for by branch-level collective agreements at companies where no agreement is applied. In this particular case, the employee was already covered by a branch-level collective agreement signed by the representative trade unions, and according to the employer, this meant that it complied with Article 36. However, the Court of Cassation points out that the “sufficiency” criterion must be complied with independently of that of “proportionality”, which means taking into account not only the pay scales set, but also the actual cost of living. The Court bases its decision on the objectives set by the recent Directive 2022/2041 on minimum wages, which extend beyond a mere subsistence guarantee and cross-reference a series of statistical and economic indicators. The Court also takes a position on the political debate, by affirming that a law that is limited (as proposed by some) to requiring employers to pay the minimum wages set by the main collective agreements in each sector signed by the most representative trade unions, would not meet the need to ensure that the minimum wages set by collective agreements match the cost of living.

Boosting EWC resources : On 21 September, the management of the Safran group (83,000 employees) revised its European Works Council agreement. The text extends the consultation period for major issues from 4 to 10 weeks, and boosts the council’s resources. Its annual budget is raised from 40,000 to 60,000 euros; interpreting costs for select committee (“Bureau”) meetings are no longer charged to this budget; the time credit granted for EWC work is increased (from 120 to 160 hours for the secretary, from 60 to 120 hours for select committee members and from 21 to 40 hours for other members); and the expert assistance budget is raised from 50,000 to 60,000 per annum. In addition, more is made of the role played by EWC members and they are given a higher profile. New measures include: an interview for members at the beginning of their mandate; raising local line management’s and HR’s awareness of the role and limitations of an EWC mandate; and taking into account the experience gained by EWC members in terms of professional development.

Representation for “small countries” : The agreement establishing the European Works Council of the Bel group (5,784 employees in the EU + United Kingdom and Switzerland) has been renewed. The main change in the new agreement relates to the consultation procedure applicable in exceptional circumstances, when a reorganisation concerns countries in the European Economic Area that are not represented on the EWC (countries with fewer than 20 employees). In this case, these countries are entitled to be represented at EWC meetings dealing with the plan in question, by a volunteer employee, who has a right of discussion only. If several employees volunteer to take on this role, it will be assigned to the employee with the longest service.

Telework : The European Works Council of the ArcelorMittal group (158,000 employees, including 60,000 in Europe) issued a Statement on 21 September, denouncing management’s unilateral decision to allow only one day of telework per week from 1 January 2024 onwards, instead of the three days allowed since the Covid-19 crisis. Emphasising that “this new way of working has been an asset for ArcelorMittal in attracting young talent” and that it promotes employees’ well-being, the select committee denounces a “regression” and calls on management to start negotiations “with a view to reaching a common agreement to meet the legitimate demands of ArcelorMittal’s European employees”.

> See also: Cytiva European Works Council agreement of 1 February 2023 (creation date), and Amendment No. 1 of 20 July, relating to the revision of ADP’s European Works Council agreement, both published on line.

Global agreement strengthened : On 9 October, the management of the Crédit Agricole S.A. bank (75,000 employees) and the UNI Global Union federation renewed their global agreement (see press releases issued by UNI Global Union and Crédit Agricole). The new agreement includes a chapter devoted to telework and another to the duty of vigilance. This chapter stipulates that every year, management will meet with the UNI delegation to set out how the vigilance plan is drawn up and implemented in respect of the topics covered by the agreement. At the end of the article on prohibition of all forms of discrimination, the signatories have added an undertaking by the group to “ensure that the ways of working adopted are not a source of discrimination”. They have strengthened the provisions covering health and safety, with an undertaking guaranteeing “physical and mental health as well as employee safety at work, including in a digital and/or remote working context”. To this end, the group “ensures compliance with working hours as well as the right to rest time and to disconnect, and the prevention of psychosocial risks (PSR)”. Moreover, in particular through social dialogue and/or collective bargaining, it will work “to identify, prevent and mitigate the potential negative impacts” of new technologies, “including Artificial Intelligence (AI) and monitoring tools” on the health, safety and privacy of employees, as well as on their career path. Lastly, the signatories encourage the group’s entities “to promote measures to support their employees who are victims of domestic violence”. The agreement also introduces 28 days’ paid paternity leave for all group employees.

A minimum level of social protection : The Axa group (110,000 employees) has announced the launch of a minimum level of social protection for all of its employees worldwide, which incorporates the rights already introduced in Phase II of the Charter for a Global Health and Well-Being Program (see IR Notes 178). The new measures include doubling the length of fully paid co-parent’s leave from 4 to 8 weeks; additional paid leave and flexible working arrangement to help employees who are receiving and recovering from in-vitro fertilization, or in the case of pregnancy loss; 5 days per annum of fully paid leave for employees caring for immediate family members; and a policy of supporting employees who are victims of domestic, intra-familial and sexual violence. They will be entitled to adopt flexible working arrangements and take five days of fully paid leave (see press release).