IR Notes

Following the highly favourable vote by the European Parliament’s Committee on Employment and Social Affairs on 3 December last year, MEPs, at their plenary meeting on 19 December, approved Parliament’s negotiating position based on the report submitted by MEP Dennis Radtke (EPP) (see IR Notes 242). However, unlike the Committee’s vote, when only the far-right was opposed to revision of the directive, the plenary vote reveals a Parliament that is much divided on the subject, given that almost 100 Conservative MEPs from the EPP – the grouping that Dennis Radtke himself belongs to – voted against this revision, as did 22 Renew MEPs. In total, 300 MEPs supported Dennis Radtke’s text, 254 voted against it and 21 abstained. The vote will undoubtedly weaken the position of Parliament’s negotiators, who will find it very hard to maintain certain proposals, such as that of fixing the financial penalties applicable to breaches of the EWC’s right to be informed and consulted, at the same level as those provided for by the GDPR regulation, i.e. a fine of up to 10 million euros or 2% of the company’s worldwide turnover (the higher amount being applicable) or double that figure for a repeat offence. Parliament’s proposal to characterise as ‘transnational’ a plan put forward by a company’s management and which might affect employees in a different Member State from the one where the management team behind the plan has its head office, also seems to be under fire. Nevertheless, once a few problematic provisions such as this one have been set aside, there is a strong likelihood that a common position will be reached. This outcome is all the more likely, given that the two institutions – Council and Parliament – are already in agreement on a number of significant measures condemned by the employers, such as the obligation to renegotiate the so-called opt-out agreements, i.e. those concluded during the two-year period after the 1994 and 2009 directives entered into force (see European works councils).
Even though the division within the EPP indicates that Member States governed by leaders from the parties making up the EPP are likely to adopt a firm stance, the positions adopted by the Council and Parliament on this proposed revision are fairly similar, as can be seen from the document published by the Council on 20 December, which, article by article, compares the Commission’s proposal with the Council’s position and that of Parliament. This document will be used as the basis for work on the trilogue, which is due to commence on 6 February. The chances of the directive’s revision being adopted in 2025 remain high.

• Forced labour : Regulation (EU) 2024/3015 of 27 November 2024 on prohibiting products made with forced labour on the Union market and amending Directive (EU) 2019/1937 (see IR Notes 192, IR Notes 229 and IR Notes 241 has been published.

EU Polish presidency sets out its social ambitions : In its work programme, the Polish presidency of the EU, which began on 1 January, sets outs the issues on which it plans to make progress during the first half of 2025. In the field of working time, it cites “legislative initiatives relating to the use of AI in the workplace and those relating to teleworking and the right to disconnect”, without specifying an objective. The programme devotes a paragraph to social dialogue, making reference to the Val Duchesse Declaration (2024) (see IR Notes 223) and the Recommendation on Strengthening Social Dialogue in the EU (2023) (see IR Notes 201). The Presidency “will take steps to develop social dialogue and emphasise its role, including by continuing work on the revision of the European Works Councils Directive and starting work on a New Pact for European Social Dialogue”. It will also pursue work on the “Traineeship package”, which includes proposals for a directive and a recommendation (see IR Notes 227). The Presidency will also “engage in the 2025 review of the implementation of the European Pillar of Social Rights Action Plan (see European Pillar of Social Rights),, with its three main objectives of increasing employment, strengthening skills and qualifications and reducing poverty among Europeans set for 2030” (see Polish presidency website).

Due diligence : On 10 December 2024, the European Trade Union Confederation and European trade union federations issued a joint statement defending the recent directives on due diligence (CS3D), Corporate Sustainability Reporting (CSRD) and products made using forced labour. The signatories therefore find themselves pitted against the employers’ organisations, which have urged the European institutions to ease the application of these directives (see IR Notes 240). In Germany, after receiving support from four ministers, including the Minister of Labour, Hubertus Heil (SPD), the employers’ position has now been further bolstered by Chancellor Scholz himself, who submitted a long letter to the President of the European Commission on 2 January, requesting among other things that the application of reporting obligations imposed by the CSRD directive be postponed, on the grounds of cutting bureaucracy and easing these obligations. The trade unions are calling on the business community “to stop destabilising democratically adopted legislation and to stop bashing EU law for the so-called sake of simplification, whereas the CS3D brings more legal certainty and predictability, allowing for a level playing field”.

Working time of domestic staff : On 19 December 2024, the Court of Justice delivered a ruling indicating that domestic employers will have to establish a system for measuring the length of time worked by every domestic employee on a daily basis (CJEU, 19 December 2024, Case C-531/23, Loredas). In a previous judgment, the Court of Justice ruled that Spain had failed to put in place a system for measuring, objectively and reliably, the number of hours worked by employees (CJEU, 14 May 2019,  Case C-55/18, CCOO, see IR Notes no. 120). Spain then amended its legislation to comply with this ruling, but the courts and administrative practice have interpreted the new law on the basis that it did not apply to domestic workers. In this new case, the Court emphasises that “the judicial interpretation of a provision of national law or an administrative practice (…) under which employers are exempt from their obligation to establish a system enabling the duration of the daily working time of each domestic worker to be measured”, and which therefore deprive these workers of “the possibility of determining objectively and reliably the number of hours worked and their distribution over time, clearly does not comply with” EU law. The Court states that, given that they are in a position of weakness, the worker “may be dissuaded from explicitly claiming his or her rights vis-à-vis his or her employer where, in particular, doing so may expose him or her to measures taken by the employer likely to affect the employment relationship in a manner detrimental to that worker”.  Consequently, “in the absence of a system for objectively and reliably measuring both the number of hours worked by the worker and their distribution over time as well as the number of hours worked in excess of normal working time as overtime, it appears to be excessively difficult, if not impossible in practice, for workers to ensure compliance with the rights conferred on them by Article 31(2) of the Charter and by Directive 2003/88, with a view to actually benefiting from the limitation on weekly working time and minimum daily and weekly rest periods provided for by that directive” (see press release).

Temporary work : On 16 December 2024, social partners in the temporary agency work industry adopted their Joint Work Programme 2025-2027, in which they promise, among other things, to adopt at least two sets of joint recommendations linked to the EU’s social and employment policies, in the areas of participation in the labour market, skills or social protection.

Short-time working : The Federal cabinet has extended to 31 December 2025, the scheme whereby short-time working benefit is payable for a longer period (24 months instead of the previous 12), thus enabling companies experiencing difficulties to retain their skilled employees (see press release). This decision enjoys the support of the trade unions. However, Yasmin Fahimi, the President of the DGB trade union confederation, has emphasised the importance of ensuring that the Federal Employment Agency has the resources needed to manage the anticipated increase in the number of beneficiaries (see press release).  Alexander Bercht, a member of the executive committee of the chemical industry trade-union federation IGBCE, has also called for further urgent measures to speed up the transformation of Germany’s industrial sector and emphasised the need to reinstate easy access to short-time working benefit. He points out how effective this measure was when it was introduced during the Covid 19 pandemic. “The obstacles preventing the payment of short-time working benefit should be minimised”, he argues (s. press release).  The president of Germany’s metalworking industry employers’ organisation Gesamtmetall, Dr. Stefan Wolf, has emphasised the need for structural reforms, including simpler administrative procedures, lowering the tax burden and capping social security contributions (see press release).

• New occupational diseases recognised : On 11 December 2024, the Federal cabinet issued a government order recognising a further three medical conditions as occupational diseases, subject to approval by the country’s federal states (see press release). Rotator cuff injuries, gonarthrosis and chronic obstructive pulmonary disease (COPD) are now recognised as such for certain occupations or under certain specific conditions.

Amazon introduces a works council : A works council has been elected for the first time at national level within the Amazon group (see press release). The vida trade union has welcomed this development and congratulated its new president, Jorge Plaut, who has promised to promote decent and respectful employment within the company.

Company transfers : On 17 December 2024, the social partners concluded Collective Labour Agreement (convention collective de travail or CCT) no. 32/8 on the National Labour Council (CNT). This CCT adds a new chapter to CCT 32 bis on maintaining employees’ rights in the event of a company transfer. The new agreement enters into force on 1 February 2025. It stipulates that when ownership of a company is transferred, employees or their representatives who are affected by the transfer will be entitled to demand that the transferor (the former employer) provides certain information to the identified transferee (the new employer). They can also invite the transferee to introduce themselves in person before the transfer takes place. The CNT emphasises that the aim “is to achieve a high-quality and effective information and consultation process.” (see press release).

Shorter working hours : On 20 December 2024, the government and the two trade-union confederations CCOO and UGT signed an agreement aimed at reducing the length of the working week from the current figure of 40 hours to 37.5 hours, with no cut in wages. This agreement supports the bill “on reducing the maximum length of the ordinary working day, recording working time and the right to disconnect from work”, which the government plans to submit to Parliament. The government justifies this measure by the increased productivity achieved in recent years and the goal of granting employees “freedom spaces where they can enjoy themselves and flourish”. The plan also introduces a right to disconnect and sets out details of the legislation on the breakdown of working time (see government, CCOO and UGT) press releases. The employers are fiercely opposed to this measure and believe that using the law to change matters normally dealt with by collective bargaining “represents interference in the autonomy of collective bargaining” (see CEOE press release).

• Short-time working : On 23 December 2024, the government activated the short-time working scheme (RED) for the car industry, which employs 200,000 people (10% of Spanish GDP). The RED scheme requires companies taking advantage of it to promise to maintain the jobs in question for a two-year period. Applicant companies must submit a retraining plan for their employees, which is designed to enhance their skills and employability in light of ongoing changes in the industry’s production system (new technologies, manufacture of hybrid and electric vehicles) (see press release).

Racism and hate crime in the workplace : The government has adopted a new plan to combat racism, placing the emphasis on four areas, including working life (see press release). This plan, which has been put forward by Paulina Brandberg, the Minister for Gender Equality and Working Life (photo, Kristian Pohl), includes measures to provide employers and other labour market actors with tools and information for enhancing procedures for combatting racism and discrimination in the workplace.

Agreement renewed : On 2 October 2024, the management of the Mobivia group (22,000 employees) and its European Works Council renewed their European Works Council agreement of 16 July 2020 (see IR Notes 150), while keeping in place most of the resources provided under the previous agreement.  However, the new agreement transforms one of the four annual meetings provided for under the previous agreement into a select committee meeting (comprising 5 members). EWC members are granted 7 days per year to discharge their duties. Select committee members have 15 days. Select committee members are also granted a further 12 days per year to undertake site visits. The main countries covered are Germany (9,126 employees), France (8,298 employees) and Spain (2,286 employees).

Agreement revised : On 30 October 2024, the management of the Finnish group Nokia concluded an agreement on the functioning of its EWC, which had previously operated on the basis of the directive’s subsidiary requirements. The CFE-CGC trade union reports “significant progress in several areas”. The agreement confirms the practice of holding two annual meetings, and granting access to experts and to the trade union coordinator, although Nokia will not cover their travel expenses. The CFE-CGC has expressed satisfaction, commenting that: “The agreement stipulates that if a new European directive is passed and transposed into Finnish law, it will automatically be incorporated into the agreement without the need for renegotiation” (see press release).

Virtual meeting : On 23 December 2024, the Central Arbitration Committee (CAC), which is the UK authority responsible for resolving disputes involving EWCs, handed down a decision on a case brought by the British Council’s EWC against the management of this government institution, which is responsible for promoting the English language around the world. The case in question involved the EWC established under UK law prior to Brexit, which continues to function alongside the EWC set up in Ireland, after Brexit. The two bodies continue to function in parallel. The EWC’s view was that in principle, an exceptional EWC meeting taking place under the subsidiary requirements should be held in person, not on line, unless otherwise agreed between the central management and the EWC. The CAC points out that UK law (TICER) is “silent as to the format of that meeting and as to whether that format needs to be agreed between the parties”. The CAC’s opinion is that “it can be open to an employer to unilaterally impose an online meeting upon an EWC”, but it would be “good practice for an employer and EWC to seek to agree the format of the meeting”.

Harassment and violence against women : The Spanish textile group Inditex (161,200 employees worldwide, including 125,800 in Europe)  and its EWC have issued a joint statement against violence against women and harassment in the workplace, which includes undertakings by the group to put in place actions linked to providing information, training, internal communication (among other things to make the International Day for the Elimination of Violence against Women), mechanisms for reporting harassment and providing victim support. The EWC’s Equality working party is responsible for monitoring the statement’s application (see press release).

Sexual harassment : On 6 September 2024, the Lipton Teas and Infusions group (17,000 employees) and the IUF international trade union federation signed a Joint Commitment on Preventing Sexual Harassment. The text is particularly aimed at “women workers, particularly contingent, temporary and/or migrant workers, such as those in agricultural supply chains”, who may be more vulnerable than other female workers, especially “in a situation where exposure to harassment is perceived as a condition of employment”. The text states that the group must “ensure that sexual harassment does not occur in its supply chain”. The signatories are putting in place a procedure to stop sexual harassment in the workplace which, among other things, makes it clear that “in cases of sexual harassment, it is the perpetrator and not the person making the complaint who will be redeployed”. All units will have to establish a “clear and precise local policy on sexual harassment, complaints procedures and mechanisms for dispute resolution/grievance handling based on international standards and national legal and collective bargaining law and practice.”

National social dialogu : On 18 December, the ILO published the second edition of its Social Dialogue Report, entitled “Peak-level social dialogue for economic development and social progress”. It focuses on social dialogue established at the highest level within countries, and sets out global and regional trends in this area. The report shows that Europe is characterised by having a high proportion (92%) of permanent national social dialogue institutions (NSDIs). These organisations, which are usually made up of tripartite representatives – employers, workers and governments – sometimes include civil society organisations. They are run by a secretariat, which is often managed by the Ministry of Labour, and are frequently chaired by ministers or heads of government. The report emphasises that young people are under-represented on these bodies. Social dialogue that includes young people has declined since the pandemic. On the other hand, the report demonstrates that social dialogue has helped to mitigate the effects of inflation. It also indicates that only a quarter of social dialogue processes conducted at peak level between 2022 and 2023 touched upon themes relevant to the twin (environmental and digital) transition.