IR Notes

On 21 October, the European Commission published its work programme 2026, supplemented by an annex setting out the timetable, the texts under discussion and the texts to be evaluated or repealed (see press release). As far as social Europe is concerned, the programme merely restates a number of announcements that have already been repeated many times. 1/ The quality jobs “package” is duly scheduled, though with no clues whatsoever regarding its content (4^th quarter). The text merely indicates that this “Quality Jobs Act” must “ensure that modern employment keeps pace with the modern economy”. 2/ The other “package” on “fair labour mobility” (3^rd quarter) will include legislative proposals relating to: a European social security pass; strengthening the European Labour Authority; and skills portability. 3/ As for the current legislative process, one awaited text is absent from the programme: the proposal for a directive on telework and the right to disconnect. This should mean that it will be put forward by the end of 2025. As for the proposal for a directive on quality traineeships, it looks set to continue working its way through the legislative process, as do the proposals for a regulation on the declaration of posting of workers, on the revision of the European Globalisation Adjustment Fund and the creation of an EU talent pool. On the other hand, the proposed revision of the directive on the protection of workers from risks related to exposure to carcinogens, mutagens and reprotoxic substances at work may be abandoned. 4/ Several strategies and initiatives are announced to boost citizens’ purchasing power and combat poverty, an area where the EU is lagging behind. The following are announced: an initiative to tackle “issues related to short-term rentals” (2^nd quarter); a “European Affordable Housing Plan” (4^th quarter) and an “EU anti-poverty strategy” to “address structural causes of exclusion and strengthen support services” (2^nd quarter). This will include “a strengthened Child Guarantee that will include investments and reforms to tackle child poverty”. There are also two strategies covering “gender equality” (1^st quarter) and “the rights of persons with disabilities” (2^nd quarter). 5/ Work on the goal of simplification will continue, so as to cut the administrative burdens faced by companies, with a number of new “omnibus” packages on various topics. However these do not affect social legislation – directly, at least. 6/ A number of significant texts that may affect employment relationships are announced: the presentation of a 28^th regime for innovative companies (1^st quarter) that might include a simplification of the social legislation applicable to start-ups; a revision of public procurement rules (2^nd quarter) that might allow a strengthening of the obligation to adhere to social clauses, such as restricting public contracts to companies that apply a collective agreement, an evaluation of the legislation covering market surveillance and compliance of products, and an evaluation of the whistleblower protection directive (4^th quarter).

European Works Council : On 27 October, following on from the Parliament (see IR Notes 260), it was the turn of the Council of the EU to definitively adopt the revision of the European Works Council Directive (see press release). The directive will enter into force as soon as it has been published in the OJEU. After the directive has entered into force, Member States will have to transpose it into their domestic law within two years and apply it within three years.

Domestic violence : On 17 October, the Employment and Social Affairs Council approved Conclusions on Violence against women and domestic violence. Ministers state that “preventing and combating violence against women and domestic violence is a societal responsibility, as violence undermines gender equality and women and girls’ right to equality in all areas of life and hinders their equal participation in society and the labour market, and can lead to serious health or safety consequences and even fatalities”. As far as employment relationships are concerned, these conclusions invite Member States to take initiatives to promote training for “workers in relevant fields” that can accommodate women who are victims of violence; and take actions leading to “awareness-raising and education among the population as a whole, including bystanders (…)”. States are also urged to “support the development of tools and training for healthcare workers, care workers and social workers in order to help them detect cases of violence against pregnant women and new parents, bearing in mind that violence may escalate around the time of pregnancy and birth”.

Restructuring : On 30 October, the European Commission proposed releasing aid worth 8.5 million euros via the European Globalisation Adjustment Fund (EGF), to support 5,800 of the 6,500 employees dismissed following the bankruptcy of electric battery manufacturer Northvolt in Sweden. The Swedish government applied for EGF support in June 2025. Aid accounts for 60% of the budget under the scheme, with the remainder being funded by the Swedish Public Employment Service (see press release).

Social dumping in the transport industry : On 16 October, the Court of Justice handed down a judgment upholding a 2019 Danish regulation that restricts the cabotage operations of non-Danish transport companies to “seven consecutive days in one calendar month” (Editor’s note: cabotage is the transport of goods – including loading and unloading – between two points within national territory, undertaken by a non-resident company). The European Commission’s view is that this regulation restricts transport companies’ freedom to operate within Member States, but Denmark argued that this regulation precisely defined the notion of “occasional services”, as provided for by EU law in the area of cabotage, and was part of the margin of discretion left to Member State when implementing texts. The Court of Justice confirms that the “waiting period” imposed by Denmark “does not go beyond what is necessary to attain the objective pursued by that practice, which is to ensure that cabotage operations by coach and bus are not carried out in such a way as to create a permanent or continuous activity in the same host Member State.” The European Transport Workers’ Federation (ETF) stresses that this represents “a major victory in the ongoing battle against social dumping in the transport sector.” Flemming Overgaard, chairman of the Danish trade union 3F Transport, comments that “the ruling also means that Sweden and other countries are free to copy the Danish rules and put effective brakes on the undermining of wages and working conditions for foreign drivers throughout the Nordic region” (see press release).

Presumed discrimination : The Bundesarbeitsgericht (BAG – Federal Labour Court) has delivered a ruling pointing out that a difference in pay between men and women for work of equal value creates a presumption of discrimination, which must be corrected by the employer (see press release). In this particular case, a female employee had denounced a pay gap with one of her male colleagues (without taking account of a comparable group of male employees), on the basis of a dashboard released by the employer, in accordance with German pay transparency law. The regional labour court had initially rejected the claim on the grounds that comparing her salary with a group of comparable male employees and a group of comparable female employees did not reveal any unjustified pay gaps. However, the BAG partially quashed this decision, aligning itself with EU Court of Justice case law and validating the comparison made only with the male employee cited by the complainant. The DGB trade-union confederation has expressed its satisfaction with this decision (see press release) and calls on Germany to rapidly transpose the pay transparency directive.

Occupational health : The Ministry of Labour and Social Affairs wants to reduce the amount of bureaucracy faced by companies in the area of occupational health and safety, thereby cutting administrative burdens by around 200 million euros per year (see press release). Among other changes being made, companies with fewer than 50 employees will no longer be required to appoint a safety manager. Three packages of measures will gradually be implemented during the current government’s term of office. The first one is due to enter into force in November.

Caring, an arduous occupation : The work of nurses, carers and care assistants will be recognised as an arduous occupation in 2026 (see GPA and ÖGB press releases). The measure, which is supported by the trade unions, is intended to enhance working conditions in a sector dominated by female employees and experiencing a labour shortage. Part-time workers who work at least half-time will also benefit. As of next year, nurses will only have to perform 12 physically demanding supervisions per month, rather than the current figure of 15. This reform means that almost two thirds of professionals should be retiring by the age of 65 (see press release).

End of career : At the National Labour Council [Conseil National du Travail – CNT] meeting on 21 October, the social partners signed several collective labour agreements concerning end-of-career jobs, making these jobs more accessible for women and workers who are covered by specific schemes (strenuous occupations, construction, night-time work, etc.).  A number of other collective labour agreements, such as those providing for an employee’s right to receive an allowance paid during a career break [allocation d’interruption] or a supplementary early retirement allowance paid by their former employer [complément d’entreprise], were also renewed, extending their validity to June 2029 (see press release). The Confederation of Christian Trade Unions (CSC) expressed its delight at the decisions taken, and plans to conclude further agreements moving in this direction in 2026 (see press release).

Free childcare : The government has launched a public consultation on a draft law allowing working parents to enjoy (almost) free childcare from 2029 onwards (see press release). The State will pay childcare benefits directly to host organisations, thereby bringing the current deferred reimbursement system to an end. Benefits will also gradually be raised, especially for sectors experiencing labour shortages. As a result, an extra day’s work will no longer lead to a benefit cut, which will make work more remunerative.

Employee share ownership : The management of the Clariane group has introduced a share allocation plan for its 69,315 employees, who are spread across six EU countries. The plan has been approved by the European company’s works council, which represents the group’s European employees. On 2 October, every employee who had been working for the company for at least three years, regardless of their country, occupation or status, was awarded 50 Clariane shares free of charge. Employees will acquire permanent ownership of these shares if the company meets its performance target, i.e. if the customer satisfaction level in 2027 and/or the average customer satisfaction level in 2025, 2026 and 2027 meets or exceeds the group’s target (see press release).

Basic rights : On 17 October, the management of retail group Carrefour and the Uni Global Union federation renewed the global agreement first signed in 2001. The new text was signed on the final day of the annual meeting of Carrefour’s EWC (known as the ‘CICE’), which, says UNI Global Union, “has played a crucial role in strengthening the GFA through supporting documents addressing gender equality, violence against women and other key issues” (see press release). The federation is delighted that “despite recent changes to its global footprint, the company has maintained its commitment to the agreement’s due diligence obligations, including throughout its franchise network”.

Exporting workplace accidents : Progressive Policies has published a report commissioned by the European Trade Union Confederation, which wants to have a better understanding of the impact on workers’ health and safety resulting from free-trade agreements concluded between the EU and third countries. Séverine Picard, Director of Progressive Policies, points out that “virtually no research has been conducted on this subject to date” (see ‘A question for’… opposite). However, two types of work are now under way: 1/ Legal work, involving the mapping of all current EU free-trade agreements, to examine their health and safety provisions (see the report’s Annex). Among other things, this work shows that the weakest trade agreements, in terms of protecting workers’ health and safety, are the agreements concluded with countries that export the largest quantities of hazardous products to the EU. 2/ Research of a more qualitative nature, examining whether or not the increase in trade flows has any influence on workers’ health and safety. The report reaches its conclusion at a fairly early stage, and the answer is that it does, firstly due to waste being exporting to third countries, and secondly because Global South countries are seeing a major boost to their trading opportunities. The mathematical consequence of this situation is more accidents and more deaths at work, in response to our needs for agricultural products and rare minerals.

Algorithmic management and AI in the workplace : On 21 October, the European Commission published a survey of 70,000 workers in the 27 EU Member States, performed between late 2024 and early 2025, showing that artificial intelligence (AI) tools are being extensively used in the workplace (see press release). 30% of the workers surveyed had used AI-based tools at least once during the previous 12 months. The uptake of AI varies widely within the EU, ranging from 45% in Denmark to 13% in Greece. The AI tool used most heavily by workers in the EU is clearly ChatGPT (21%), which is well ahead of Copilot and Gemini. The survey also reveals that digital monitoring is quite common: Digital monitoring is used to track the working hours of 37% of EU workers, and the workplace entries and exits of 36% of EU workers. The survey also measures the use of algorithmic management, emphasising that 24% of EU workers have their work schedules allocated automatically.