IR Notes

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An independent, reliable and impartial source of information on industrial relations and labour law in Europe.

IR Notes 255 – Europe likes social dialogue but trade unions are falling out of favour

  IR Notes 255 – 25 June 2025
www.irshare.eu
 
 
  A question for…
Vincent Vandeloise, Senior Research and Advocacy Officer at the NGO Finance Watch

The Council and Parliament are in the process of scaling down the ambitions of the corporate sustainability reporting and due diligence directives, as they examine the proposal for a directive published by the European Commission, which is itself planning to water down the content of the two directives in question. Is this cause for concern or a welcome simplification measure?
This simplification process is a serious matter in more ways than one. Firstly, whereas the Letta and Draghi reports, which aim to boost the EU’s competitiveness, call for harmonisation of the rules at EU level, the Commission is now moving in the opposite direction, with a fragmentation of the rules. For example, in the context of due diligence, the Commission has abandoned  the notion of public liability at EU level for the companies concerned, and is letting each Member State decide its own sanctions regime.
Secondly, one of the sustainability report’s objectives is to promote comparability between companies on a number of data points. These could have been simplified and made more consistent, but instead, the choice made has been to remove an entire category of companies from the directive’s scope of application. As a result, not only will we lack information on these companies, which will no longer have to go to the trouble of publishing data – including data on employment and the environment, which is useful for workforce representatives – but the quality of the available information won’t be as good, either. And in fact, the information received by larger companies that remain within the directive’s scope, from smaller companies within their own supply chain that will then be outside of it, will be less accurate and less reliable.
Thirdly, the European institutions are emphasising the issue of cutting businesses’ costs to justify taking this huge step backwards by removing vast numbers of companies from the scope of application. Bear in mind that the previous directive covering non-financial information that companies are required to publish, applies to those with more than 500 employees. Yet here, the new version of the text adopted by the Council raises the threshold to 1,000 employees  – or even 3,000, in the case of the draft report being scrutinised by Parliament. Removing 80% of companies from the directive’s scope of application doesn’t mean removing 80% of costs! These smaller companies will still have to provide information to the multinationals they work for. Admittedly, the Commission is proposing that they use EFRAG’s voluntary reporting model, which is a simplified version. However, a number of their business partners, such as their bank, social rating agencies and others, will require them to provide a wide range of information. If these smaller companies haven’t already prepared a sustainability report – which admittedly is a demanding undertaking, though it adopts a standardised format, they’ll then have to spend a great deal of time and energy dealing with those requests. So all in all, it’s unlikely that they’ll actually see their costs coming down!


> Find out more: further information is available from the Council’s press release and negotiating mandate, the European Parliament’s report and the link to Finance Watch.

 
  Diary

 


25 June
Brussels
The European Commission is unveiling the new management framework for State aid.


2 July
Brussels
The European Commission will set out an action plan for the chemical industry.


8 and 9 July
Bordeaux
First Forum on Santé et sécurité au travail des salariés travaillant dans les exploitations agricoles [‘Occupational Health and Safety for Farm Workers’]. The organisers say that this is a neglected area of research.


8 and 9 September
Aubervilliers
International (French language) symposium on the theme of young workers’ occupational health


16 and 17 October
Salamanca
International seminar on “The due diligence directive and human rights following the Omnibus proposal”, organised by the University of Salamanca.

 
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IR Notes is a fortnightly newsletter produced by IR Share and its network of experts, and is available in several European languages (English, French, German, Italian, Spanish). It offers Europe-wide monitoring of employment law, labour relations and employment policy. It is available by subscription for 273 euros per year .


The team : This issue was producaed by Inès Bollet, Victoria Fonseca, Ambre Grenier-Boley, Iris Turlan and Frédéric Turlan. Find out more about the IR Share team on our website.


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  European Industrial Relations Dictionary

In case reading IR Notes inspires you to explore this subject further, we are providing links to the European Industrial Relations Dictionary published by Eurofound. This is updated at regular intervals by IR Share, which publishes IR Notes. The term definitions are available in English and can easily be converted into other languages using on-line translation tools.

 

IR Share is a privately- owned, independent, apolitical company whose aim is to inform and assist all players involved in social dialogue within and outside Europe. It has been the correspondent organisation for France of the European Foundation for the Improvement of Living and Working Conditions since 2009.

 

Lead story
Europe likes social dialogue but trade unions are falling out of favour

The twelfth edition of the Global Rights Index report produced by the International Trade Unions Confederation (ITUC) highlights the deterioration in the rights enjoyed by trade unions around the world (see report), such as the right to belong to a trade union, the right to collective bargaining and the right to strike. Although Europe is still the best ranked region, its current score is at its lowest level since the index was created. In 2014, 18 European countries achieved the maximum possible score in terms of trade union rights. Today, only 7 countries are in this category. The European Union itself is not spared. Just five of its Member States achieve the highest score, which is awarded to countries that witness only sporadic violations of trade union rights. These are: Austria, Denmark, Germany, Ireland and Sweden. The other two countries with the best rankings are Norway and Iceland. The category below this – i.e. countries seeing repeated violations – includes 12 EU Member States, one half of which are in Eastern Europe. The others are Finland, France, Spain, Italy and the Netherlands. Finnish trade unions deplore the fact that two years have already gone by since their country fell out of the top category, primarily because tripartite cooperation between employees, employers and government representatives has turned into a mere formality under the Orpo government: “trade unions no longer have any real influence over reforms affecting workers’ lives” (see press release issued by SAK and STTK). The next category is countries that are witnessing regular violations of trade union rights. It includes four Member States: Belgium, Bulgaria, Poland and Romania. First place goes to Hungary, which is the only EU Member State to feature among the countries seeing systematic violations of trade union rights – a category that also includes the United Kingdom.
According to the report, the deteriorating performance of European countries is due in large measure to the rise of the far right. This is leading to a wave of repressive policies directed against trade union movements, as emphasised by Wolfgang Katzian, President of the Austrian trade union confederation (ÖGB) and the European Trade Union Confederation (ETUC) (see press release). The report points the finger at the governments led by Orpo in Finland, Meloni in Italy and De Wever in Belgium. The measures introduced by the latter’s coalition government include criminalising acts perceived as infringing the authority of the State during demonstrations. The report also condemns acts of repression imposed during strikes and demonstrations (in France, Belgium, Finland), and abusing the notion of “essential services” in order to limit the right to strike (Hungary, UK). This anti-worker dynamic has also been accompanied by the creation of “yellow unions” supported and controlled by employers, in an attempt to compete with or even replace traditional trade unions, as observed in Greece and the Netherlands.
In point of fact, in Europe, 73% of countries violated the right to strike; 56% of countries violated the right to collective bargaining; 54% limited or prevented workers having access to justice; and 41% restricted the right to join or establish trade unions. These results have not prompted any official reaction at EU level, despite its ongoing advocacy of stronger social dialogue, after rediscovering the virtues of collective bargaining. Yet social dialogue requires active trade unions and protection for workers’ rights, if it is to work effectively. The European Commission should take this reality into account when preparing the forthcoming Quality Jobs Roadmap that it plans to unveil at the end of the year.


1. European Union
Projects

“Traineeships” directive : On 19 June, the Council adopted its position on the directive on improving and enforcing working conditions of trainees and combatting regular employment relationships disguised as traineeships (see press release) (see Traineeship). The directive applies to trainees who have an employment relationship with an employer (whether or not formalised by a contract of employment), but whose traineeship is not of a compulsory nature. It does not apply either to traineeships undertaken within the national education or training framework, or to those organised within the framework of active labour market policies. When it comes to “working conditions, including pay”, the directive calls on Member States to ensure that “trainees are not treated in a less favourable manner than comparable employees”, “unless different treatment is justified on objective grounds, such as different tasks, lower responsibilities, work intensity or the higher weight of the learning and training component”. At national level, the social partners are given the option of “upholding or concluding collective agreements establishing the objective grounds that are considered to justify a different treatment”. Member States must carry out checks and inspections “to identify and combat false traineeships”, based on three criteria (rather than the six contained in the proposal for a directive): 1/ absence of a training component; 2/ excessive duration of the traineeship or multiple and/or consecutive traineeships undertaken with the same employer by the same person; 3/ equivalent levels of tasks, responsibilities and intensity of work in relation to comparable employees. The Council’s text removes the clause listing the information that employers may be called on to provide when checks are made. If national law permits, workers’ representatives will be entitled to engage, on behalf of trainees, in any judicial or administrative proceedings in order to defend or enforce their rights and obligations. Once Parliament has adopted its position, a trilogue will be established, with the aim of reaching agreement on a text at first reading, opening the way to definitive adoption of the directive, which will then be transposed by Member States within two years. The Commission, which put forward this proposal for a directive on 20 March 2024 (see IR Notes 227), hopes that the trilogue may be able to raise the level of ambition set by the text further still, as emphasised by Vice-President Roxana Mînzatu (picture) at the Employment and Social Affairs Council meeting. The Commission will be able to rely on the support of the European Trade Union Confederation, which has criticised the compromise and called on Parliament to intervene in order “to provide the European vision that national governments have failed to offer.” (see press release).



Revision of the European Works Council directive : At a quick round table session devoted to current legislative initiatives during the Employment and Social Affairs Council meeting on 19 June, two countries expressed their satisfaction with the provisional agreement reached by the trilogue, on 21 May, on revision of the EWC directive (see IR Notes 253). Germany described it as a “very important” text and Spain, which would have liked to see a “higher level” text, stated that this revision should merely be viewed as “an initial step towards an in-depth review of the European framework for informing and consulting workers, and enabling worker participation”. The Polish presidency of the EU explained that the provisional agreement was now in the hands of lawyer-linguists, and that it would be back before the Council “after the summer break” for formal adoption, concomitant with its scheduled adoption at a European Parliament plenary session.


Social update

Danish presidency of the EU : Denmark, which takes over the presidency of the EU on 1 July, has set out its political priorities and its programme. The Presidency wants to “promote social cohesion, combat social exclusion, and ensure inclusion for all citizens”. The Danish government, which brought an action for annulment of the directive on adequate minimum wages before the Court of Justice, warns that any initiatives will be taken “while respecting national labour market and welfare models, as well as the role and autonomy of social partners”. This means that no major legislative progress should be expected. The programme mentions several employment-related matters: free and fair movement, including for posted workers and third-country nationals; the sixth revision of the directive on exposure to carcinogens, mutagens and reprotoxic substances at work; the recommendation and the directive on better working conditions for trainees; social dialogue between social partners; the forthcoming Quality Jobs Roadmap; and the voluntary digital declaration for the posting of workers.



European Pillar of Social Rights : On 18 June, the European Commission opened a public consultation, lasting until 10 September, on the 2021 action plan to implement the European Pillar of Social Rights (see European Pillar of Social Rights), and a call for evidence on the launch of a new action plan by the year end, in parallel with consultations undertaken with European social partners.  The consultation questionnaire seeks to identify the “main barriers or emerging challenges for improving working conditions”, by asking respondents to rank five options according to their level of relevance. These options are: increased stress at work; inadequate information and consultation about job dismissals; inadequate wages (including minimum wages); use of AI tools for monitoring, surveillance, evaluation and task assignment; and insufficient support for cross-border mobility. Based on the same principle, respondents are invited to rank the “most burning social issues” that need to be addressed by the future action plan. The proposals include: addressing automation and AI in the workplace; introducing a right to disconnect; and addressing mental health at work. All citizens are entitled to respond to this consultation, as are employers’ organisations and trade unions, works councils, European Works Councils, etc.


> See also: The European Economic and Social Committee has adopted an own-initiative opinion calling for an ambitious new action plan (see press release) which, among other things, includes “a directive on psychosocial risks and the right to disconnect”.



Gender equality in the AI age : On 19 June, the Council adopted Conclusions on Advancing Gender Equality in the AI-Driven Digital Age (see press release). The text calls on Member States to take appropriate measures to ensure that AI systems “do not produce discriminatory outputs”, including “by ensuring the use of clear, representative, high-quality data in a transparent manner, by regularly evaluating AI systems” and “by installing human oversight”.



Artificial intelligence : After the European Economic and Social Committee published its opinion on “pro-worker artificial intelligence” on 22 January this year, it is now the European Parliament’s turn to intervene on this issue, with the preparation of a resolution on “recommendations to the Commission on digitalisation, artificial intelligence and algorithmic management in the workplace”. The resolution is accompanied by a proposal for a directive that “lays down minimum requirements for the transparent use of algorithmic management in the workplace”. Among other things, this text would oblige employers to provide, on or before the first working day of the employment relationship, a number of items of information concerning the use of algorithms, such as “a clear indication of whether the data collected is used to carry out automated decision-making, and, where applicable, a description of the nature and scope of such decisions.”


Sectoral social dialogue

2. International news

A new ILO convention : At the 113th International Labour Conference (ILC), held in Geneva from 2 to 13 June, Member States of the International Labour Organization (ILO) adopted Convention no. 192 concerning prevention and protection against biological hazards in the working environment. This is supplemented by a non-binding recommendation providing detailed guidelines for its implementation. According to the ILO, these two instruments “offer a powerful, adaptable framework to prevent biological risks in every type of workplace, now and into the future”. It is expected that they will be supplemented, at the 2027 ILC, by a new convention on exposure to bacteriological risks. The next ILC, which is due to be held in 2026, is expected to complete the work that began earlier this month in Geneva, with a view to adopting a convention on decent work in the platform economy, to be supplemented by a recommendation. The ILC also adopted a resolution to reduce informality and support the transition to formal work. This text calls for urgent action to improve working conditions, extend social protection and create decent jobs. Opportunely, at a time when the EU is seeking to pare back the directive on due diligence, the text highlights the importance of respect for the principle of due diligence in supply chains. (see ILO press release). One issue that produced heated debate at the ILC during the adoption of the ILO’s budget, was pressure from a number of countries, led by the USA, for any mention of “gender equality” to be systematically removed and replaced by the wording “equality between men and women”.
(Photo: adoption of ILO convention no. 192, Pierre Albouy / ILO)


3. Member States
Spain

Preventing exposure to excessive heat in the workplace : On 9 and 10 June, the Ministry of Employment sent out 112,260 letters to businesses operating in certain sectors, especially those most exposed to high temperatures (i.e. laundries, street cleaning services, catering). Fines of up to one million euros can be levied if these companies fail to comply with the legislation. With a view to ensuring health and safety in the workplace, the government issued a total of 11,500 fines in 2024, compared to just 704 in 2021. The Ministry of Employment has also published a guide to taking action for the benefit of the inspection authorities (see press release).


Finland

Platform workers : The Supreme Administrative Court has handed down a decision declaring that food delivery riders and drivers are employees within the meaning of employment contract law (press release). In this particular case, the occupational health and safety authority had asked the platform to keep a register of hours worked and wages paid to these delivery workers, in the same way as this has to be done for employees. Among other considerations, the Court took into account EU Court of Justice case law, which concluded that the concept of an “employee” should not be interpreted restrictively (see press release).


Portugal

Labour market reforms : A vigorous debate began in Parliament on 17 June concerning revision of the Employment Code, around proposals that were absent from the election manifesto of the head of government, Luís Montenegro. The measures envisaged include: changes to the right to strike, i.e. seeking to restrict the right to exercise this in certain key sectors (in response to a nationwide rail strike by Comboios, the Portuguese rail operator); granting employees the right to “sell” their days of paid leave, in exchange for remuneration; and simplifying dismissal procedures.


4. Companies
European Works Councils

Sustainability reporting : European trade union federations have published joint recommendations on sustainability reporting, aimed at trade union coordinators and members of European Works Councils or European company Works Councils, to help them respond to the European Commission’s plans to water down the directives on sustainability reporting and due diligence. These recommendations also contain advice on how to ensure that workers’ representatives are involved in the process of compiling a company’s sustainability report, inviting EWCs to use all of the tools available to them (the services of experts, training, contacts with other EWCs, etc.).



Renegotiation : On 14 April, Bouygues group (200,000 employees) management and EWC members signed a European Works Council renewal agreement, following the acquisition in 2022 of Equans (75,000 employees), a subsidiary of the Engie group. The new agreement provides for the creation, by no later than 2026, of three committees forming part of the EWC: two of these are subject-specific (Health-Safety and Climate-Environment) and the third is tasked with monitoring the social undertakings given by Bouygues’ management at the time of Equans’ acquisition. The agreement provides for a new consultation procedure applicable to proposed social undertakings given at European level on cross-cutting issues, which might give rise to the conclusion of a European agreement with the European trade-union federation EFBWW.


5. Studies and reports

Employee directors : On 16 June, the Centre d’étude de l’emploi et du travail [‘Centre for Research into Employment and Labour’] (CEET-Cnam) published a study examining the extent to which employee representatives sitting on boards of directors in France are able to influence the strategic directions taken by their company. Riyad Manseri, a post-doc researcher at CEE-Cnam, notes that “when all is said and done, their powers appear to be limited, and decision-making largely remains in the hands of directors representing shareholders and, to an even greater extent, with companies’ executive management”.


> See also: His previous study of employee directors’ compensation.

 


Désabonnement

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Each issue includes:

  • An interview with someone working in the field of industrial relations who offers their unique take on a current social issue, an agreement, or an example of best practice.
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  • Lastly, IR Notes keeps you informed about the main studies and research carried out on the world of work.

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The IR Notes newsletter gives everyone in Europe access to an independent, reliable and impartial source of information on topics involving industrial relations

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