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IR Notes 246 – 19 February 2025
www.irshare.eu
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A question for…
Carine de Boissezon, Chief Impact Officer at EDF
At a time when strong pressure is
being exerted to reduce the scope of the CSRD and Due Diligence
directives via an “Omnibus package” (see IR
Notes 244), what are your arguments for convincing
people of the benefits of signing a global
agreement on social and environmental responsibility
(see IR
Notes 245)? At EDF, we didn’t wait for the issue of CSR
to pass into law before we tackled it. We believe there can be no
energy transition unless employees and communities buy into the
idea. Employees are a key stakeholder. A group like EDF, which
invests 25 billion euros every year, can’t deliver sustainable
performance unless our own strategic vision is an integral part of
this, namely decarbonising the economy, sticking to the limits of
what the planet can cope with, and ensuring a just transition.
Investors look closely at the social aspects of how a company is
run. For example, they realised that the businesses that recovered
most strongly after Covid 19 are those that stood by their employees
during that period. This agreement sets a CSR standard within the
group and adds credibility to the steps we’re taking, because
involving employees can resolve the differences between intentions
expressed and operational realities on the ground. It’s very
important for employees to understand CSR issues. Admittedly, the
existing standards need to be simplified, but we must also provide
better signposting for investors, so that they have a clearer view
of corporate sustainability. A business that takes an active
approach to CSR, and showcases its performance and its appeal,
should be able to secure more favourable financing terms.
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Lead
story
European
social legislation is now in “pause” mode
In its work
programme for 2025, unveiled on 11 February, the European Commission
highlights a number of initiatives designed to simplify its legislation and to free
companies from “excessive administrative burdens”. It does not announce any
legislative initiatives concerning social issues, but merely repeats a number of
announcements that had already been made following Ursula von der Leyen’s
re-election: 1/ the new action
plan on implementation of the European Pillar of Social Rights; 2/ the new Pact for Social
Dialogue with European social partners; 3/ the launch of the “Union of
Skills” to tackle “skills and labour gaps”; 4/ the adoption of a “roadmap”
to “ensure quality jobs with decent working conditions, high standards for health
and safety and collective bargaining”. It should be noted that among the new
non-legislative initiatives that may impact the area of employment, there are two
“new strategies” for protecting LGBTIQ people against discrimination and for
combatting racism. They will be preceded by a “Roadmap for Women’s Rights”. So,
nothing new, and the communication confirms that no binding legislation will be
brought forward this year. The Commission will make do with progressing the three
laws that are currently under discussion: the directive on Quality Traineeships, and
revision of the European Works Council Directive and the Carcinogens, Mutagens and
Reprotoxic Substances Directive. The European Trade Union Confederation expresses
its disappointment that “this is the first time since 2019 (…) that the work
programme has not contained any new social legislation”. Furthermore, in the annexes
to the communication, the Commission publishes the list of texts that it
plans to put forward. Here, it announces several “Omnibus packages” aimed at
simplifying and amending various pieces of legislation. The first one, which is due
to be brought forward on 26 February, relates to sustainable development and will
partially emasculate the recent directives on Corporate Sustainability Reporting
(the “CSRD” directive) and on Due Diligence (the “CS3D” directive). Another package
plans to create a new category of company: “small mid-caps”. It would appear that
these will benefit from a reduction in administrative burdens, but it is not known
whether this will impact on social legislation. Another list, which aims to abolish
37 proposals, provides for withdrawal of the proposal for a directive on
implementation of the principle of equal treatment between persons irrespective of
religion or belief, disability, age or sexual orientation. This text, which has been
under discussion for years now, covers a number of fields that are not covered by
the anti-discrimination directive in the area of employment. The Commission notes
that the proposal “is blocked”. Lastly, a list provides for evaluation of dozens of
pieces of legislation, including directives on public procurement contracts. This
would be an opportunity to strengthen social and environmental clauses, and to give
preference to companies that apply collective labour agreements.
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1. European
Union
Legislation
Guidelines on AI : Following the
AI Act that came into force on 1 August 2024, the European Commission published guidelines
on 4 February, with a view to ensuring the “consistent, effective and uniform
application” of this legislation within the EU. These non-binding guidelines provide
legal explanations and practical examples to help stakeholders to understand the
requirements of the legislation and to comply with it. They are aimed at prohibited
high-risk AI systems, such as social scoring, biometrics and emotion recognition. In
the latter case, they state for example that using AI recognition systems to “infer
a professional pilot’s or driver’s fatigue to alert them and suggest when to take
breaks to avoid accidents is not ‘emotion recognition’, since emotion recognition
does not include physical states such as pain or fatigue”.
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Social
update
Reactions to the Commission’s work programme :
The European Trade Union Confederation (ETUC) notes with regret
that “workers are largely missing from the 2025 work programme”. As regards the
roadmap for quality jobs, the ETUC would like to have seen several proposals for a
directive on regulation of subcontracting chains, prevention of stress at work, the
right to disconnect and AI in the world of work. In addition, it believes that the
Union of Skills should also include “a Just Transition Directive which gives workers
the right to paid training during working hours” (see press
release). Markus J. Beyrer, BusinessEurope Director General, says that he
sees “positive initiatives, like the Omnibus packages and a simplification agenda”,
but warns of the need to ensure that the impact of the simplification process will
outweigh the impact of the “123 still pending legislative proposals.” (see press
release).
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Artificial Intelligence Summit :
At the Artificial Intelligence Action Summit held in Paris on 10
February, France’s Minister of Employment, Astrid Panosyan-Bouvet, brought several
key players together to discuss AI-related challenges and opportunities.
Participants included Gilbert F. Houngbo (ILO Director-General), Roxana Mînzatu
(Executive Vice-President of the European Commission for Quality Jobs and Social
Rights, and representatives of the International Trade Union Confederation and the
International Organisation of Employers. One of the main outcomes of this conference
was the adoption of a Pledge
for a Trustworthy AI in the World of Work. Its signatories include Airbus,
L’Oréal, Bayer, Renault and KPMG, as well as trade unions committed to promoting an
AI that will benefit workers and businesses alike. The key objectives of this pledge
are: 1/ promoting social
dialogue; 2/ investing in
human capital; 3/ ensuring
occupational safety, health, autonomy and dignity; 4/ ensuring non-discrimination
in the labour market; 5/
protecting worker privacy; 6/ promoting productivity and
inclusiveness across companies and value chains. To guarantee the implementation of
these principles, an international working group will compile a list of indicators
by September 2025, to help companies to assess their progress. These
self-assessments will be consolidated and presented at the 2026 G7 summit in France,
for the purpose of illustrating the collective impact of this pledge.
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AI in the workplace : On 13
February, the European Commission published the results of a Eurobarometer survey
containing questions relating to AI in the workplace. When asked what rules would be
important in addressing risks and maximising the benefits of digital technologies in
the workplace, including artificial intelligence, the main issues cited by
respondents were those of protecting workers’ privacy (82%) and involving worker
representatives in the design and adoption of new technologies (77%) (see press
release).
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Case law
Exposure to titanium dioxide :
In 2023, following an appeal filed by manufacturers and users of
titanium dioxide (TiO₂), the EU General Court handed down a judgment
in their favour annulling the classification of TiO₂ as a carcinogenic substance by
inhalation (see IR
Notes 202). This meant that manufacturers would no longer be obliged to
alert workers regarding the use of powders containing nanometric TiO₂. In 2019, the
scientific experts of the European Chemical Agency (ECHA) deemed this chemical to be
a “category 2 carcinogenic substance by inhalation”, opening up the way for this
classification. However, the effects of this ruling were suspended, because the
French authorities lodged an appeal with the Court of Justice against the General
Court’s ruling, with the support of the ECHA and the Dutch and Swedish governments.
The Advocate General of the Court of Justice delivered her opinion
on 6 February, finding in favour of France and of the Commission. This was because
the General Court should have accepted the ECHA’s interpretation of the scientific
data, and it should not have overturned the classification of TiO₂ as a carcinogenic
substance on the pretext that titanium dioxide does not present the “intrinsic
property” to cause cancer, whereas it is an accumulation of that substance that may
be hazardous. The Court of Justice is therefore invited to set aside the General
Court’s ruling and to refer the case back to the General Court, so that it can
validate the classification of TiO₂ as a carcinogen by inhalation, which will
require employers to abide by their obligation to provide information (see Veille
Nanos article, published
by the AVICENN association).
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2. Member
States
Germany
Access to employees’ email addresses :
On 28 January, the Federal Labour Court issued a ruling on
whether IGBCE, the trade union signatory of the collective agreement applied by
Adidas, was entitled to demand that this employer provide it with the email
addresses of its workforce of around 5,400 employees, so that the union could try to
recruit new members. The trade union had claimed access to this digital data under
Article 9 paragraph 3 of Germany’s Basic Law covering freedom of association. In
principle, this trade union freedom entitles the unions to use employees’ work email
addresses for communication and information purposes. However, when interpreting the
law governing trade union freedom, the courts must also take into account the
fundamental rights of both the employer and of employees, as well as Article 8 of
the Charter of Fundamental Rights of the European Union. This led the Court to
conclude that the employer is entitled to refuse to hand over all of their
employees’ email addresses to the trade union (see press
release).
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3.
Companies
European
works councils
Shared services centre : On 11
February, the management of the steelmaking group ArcelorMittal informed the EWC
select committee that it was intending to explore “opportunities to optimise its
business processes, to provide centralised and cost-effective services for the
Europe segment”. The company’s management set out a plan to “study the possibility
of further centralising certain business support activities, by extending our
business services hub to carry out some of these activities in India”. It did not
place a figure on the number of jobs in question, but several European countries
will be affected, and there will probably be several hundred job losses. The select
committee has called for the launch of an information and consultation procedure.
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Transnational agreement
Work-life balance : On 17
January, the management of Safran
(60,000 employees in
Europe) and the IndustriAll Europe trade union federation officially signed their family-friendly
“Family Life and Working Life” European framework agreement (see IR Notes
242). This is the third European framework agreement signed by the aircraft
equipment manufacturer, following those covering the development
of skills and safeguarding of career paths and professional
integration of young people (see European Framework
Agreement). And
as far as we are aware, this is the first-ever European agreement to specifically
address the issue of family life, with a view to offering “a framework of goodwill
that reflects a positive perception of parenthood and support for relatives” (see Work–life balance).For
example, the text states that the Group is committed to “promoting flexibility and
adaptability in the organisation of working hours for employees” who are involved in
“medically assisted procreation or adoption procedures”. It provides for paid leave
during absences linked to medical appointments, both for the person involved in
assisted procreation and their spouse/partner. Pregnant employees are entitled to
“paid time off per day”, the number and conditions of which are to be defined
locally. Measures are provided to offer support for pregnancies that are not carried
to term, including a five-day paid leave of absence if the pregnancy ends after the
third month of pregnancy. These five days are also granted to the employee’s
spouse/partner. In addition to maternity (16 weeks) and paternity (3 weeks) leave on
full pay, the agreement provides for “parental presence” leave for employees whose
dependent child “suffers from a particularly serious illness, disability or
accident, making it essential for the parent to be present at all times and to
provide significant care. It may be split up, converted to part-time or renewed”.
The text leaves each country to define “a harmonised approach” for the purpose of
introducing this leave. Various flexibility formats are organised for the working
hours of young parents (part-time at 80% of full-time hours for two continuous
months, paid at 90%), single-parent families and parents of children with
disabilities (option of working part-time on a 50% to 80% basis), and for employees
who are caring for a child with disabilities, with chronic diseases or a “dependent
relative” (parents and parent’s spouse, spouse, brother or sister, adult child). A
monitoring committee is established to oversee the agreement, and a brochure
presenting the agreement will be available in various languages and supplemented by
a webinar.
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