IR Notes

On 17 December, by a large majority (451 votes in favour, 45 against and 153 abstentions), the European Parliament adopted the report on Digitalisation, artificial intelligence and algorithmic management in the workplace – shaping the future of work. This report invites the European Commission to put forward an initiative on artificial intelligence and algorithmic management in the workplace, which will apply to all workers (see press release). On 12 November, at the Committee on Employment and Social Affairs, MEPs called on the Commission to put forward a “legislative” proposal (see IR Notes 262), but this qualifier was subsequently deleted from the text adopted at the plenary session, following pressure from BusinessEurope among others.
However, the fact remains that the final document constitutes a “legislative own-initiative report”, meaning that the Commission must respond within three months. It will either have to indicate what measures it plans to take or justify its refusal to put forward an initiative that complies with Parliament’s request. In their report, MEPs argue that “any new deployment or significant change in the use of AI tools or algorithmic management systems in the workplace should be subject to health and safety assessment”. The text also calls for meaningful participation of workers and their representatives “in decision-making processes at all stages as well as provision of information and consultation on and in-work training to facilitate the application of new technologies by all workers”. In addition, the text includes an annex describing the content of a “proposal” that the Commission could draw up. This annex states that “the deployment and use of new systems of algorithmic management, or updates to existing systems, which directly affect workers’ remuneration, evaluation, working arrangements, task allocation or working time” should be deemed to be “decisions likely to lead to substantial changes in work organisation or in contractual relations and as such are subject to consultation pursuant to Article 4(2), point (c), of Directive 2002/14/EC, without prejudice to Directive 2009/38/EC”. This interpretation would clearly assign competence to European Works Councils.
Such consultation should be carried out with regard to: 1/ the objectives of the deployment or update, the work processes and the workers affected; 2/ the workload, work intensity, scheduling, working time, flexibility, renumeration, job content, performance evaluation or contractual relations; 3/ the effects on occupational health and safety; 4/ the types of data collected; 5/ the measures in place to prevent, detect, mitigate and correct bias or discriminatory outcomes; 6/ human oversight and review mechanisms; 7/ training and support measures, including the assistance of experts, for the workers and the managers using such systems. The Commission now has three months to prepare its response. The “Quality Jobs Law”, which is expected by the year end, could be the appropriate vehicle for responding to the concerns expressed by Parliament.

Protection of workers exposed to asbestos : Three days before the deadline for transposition of Directive (EU) 2023/2668 of 22 November 2023 amending Directive 2009/148/EC on the protection of workers from the risks related to exposure to asbestos at work, on 18 December, the European Commission published a communication introducing guidelines to help Member States to comply with this legislation. In the first instance, the directive provides for a reduction in the maximum exposure limit value to 0.01 fibres of asbestos per cm³, i.e. a threshold ten times lower than the current limit of 0.1 fibres per cm³, (see IR Notes 212). However, the European trade union movement and the European Parliament had been seeking a more ambitious reduction, to 0.001 fibres per cm³, i.e. a value 100 times lower than the one currently applicable (see ETUI press release), with a view to cutting the number of asbestos-related deaths, estimated at 90,000 per year. According to the Commission, between 4.1 and 7.3 million workers in the European Union are still exposed to asbestos at the present time. On the same day, the Commission also published an update of its Recommendation concerning the European schedule of occupational diseases. This revision seeks to ensure “consistent recognition of these diseases across Member States” and to promote “necessary support and compensation for affected workers” (see press release).

Corporate sustainability reporting and due diligence : On 16 December, the European Parliament definitively adopted the provisional agreement concluded on 9 December with the Council of the EU, regarding the Omnibus I simplification package. MEPs broadly approved the compromise, by 428 votes in favour, 218 against and 17 abstentions. This text aims to “simplify” the directives relating to due diligence requirements and corporate sustainability reporting, i.e. the CS3D and CSRD directives. The directive resulting from this agreement is now due to be published in the OJEU. Member States will have one year, with effect from publication, to transpose the changes made to the CSRD directive. The deadline for transposition of amendments to the CS3D directive is set for 26 July 2028.

Cypriot presidency of the EU : Cyprus, which on 1 January assumed the presidency of the EU for six months, has unveiled its work programme. In the employment field, the presidency is placing the emphasis on “fair wages, safe working conditions, and equal opportunities”. To guide the action it plans to take, it refers to “the International Labour Organisation’s longstanding commitment to social justice as a foundation for peace and prosperity”. Thus “fair employment for social justice” will be one of the main discussion topics at the Informal EPSCO Council taking place in February. In legislative terms, the presidency is keen to conclude the negotiations on the Traineeships Directive and the sixth révision of the Directive on Carcinogens, Mutagens and Reprotoxic Substances. It also wants to continue work on the revision of the Regulation on the European Globalisation Adjustment Fund, to finalise the negotiations on the revision of the Regulation on social security coordination, and to strengthen protection of mobile workers’ rights.

Restructuring : On 9 January, the European Commission announced a proposal to mobilise 7.5 million euros from the European Globalisation Adjustment Fund (EGF), in support of 3,414 workers affected by the closure, in February 2025, of the  Audi plant in Brussels. This aid will be used to fund measures that will help 2,580 former Audi workers and 834 workers from its suppliers to learn new skills and rejoin the labour market (see press release).

Short-time working : The government has extended to December 2026 the period for which short-time working allowances are payable (see press release).  This measure is intended to stabilise the economy, which has been weakened by the current geopolitical instability. Companies can now claim these allowances for their employees for 24 months instead of the current 12-month period. IG Metall and other trade unions have welcomed this decision (see IG Metall press release), though they have also warned that this step may put the Federal Employment Agency under increased pressure (see DGB).

Trade union subscriptions : Parliament has adopted a law designed to enhance the tax-deductibility of trade union subscriptions. These subscriptions were previously included under business expenses and were tax-deductible only if they exceeded a fixed allowance. As most employees were claiming less than this threshold, the amount of this deduction remained limited. From this year onwards however, these subscriptions will be deductible separately from the fixed allowance, meaning that employees will be able to save between 25 and 35% of the cost of their annual union subscription (see press releases issued by DGB and IGBCE).

Minimum wage and invitations to tender : In a judgment pronounced on 16 December, Italy’s Constitutional Court indirectly addressed the question of the country’s statutory minimum wage. Italian domestic law does not set a minimum wage: branch-level collective agreements are used to determine minimum wages, but no extension mechanisms are in place to ensure these are applied across the board. This situation may encourage some companies to select whichever collective agreement is most advantageous for their purposes with a view to cutting labour costs, thereby creating a downward competition dynamic. The Apulia region attempted to curb this trend by adopting a regional law on the awarding of public procurement contracts. It requires any private service providers bidding for such contracts to apply a minimum gross wage of 9 euros per hour. The government then challenged this measure before the Constitutional Court, arguing firstly that a regional law cannot govern employment relationships, and secondly that such a mechanism would breach the principle of the employers’ freedom of association. The Constitutional Court rejected the appeal, holding that the regional law does not set a universal minimum wage, but applies in a specific context only: that of public procurement contracts. The decision is also based on Directive 2022/2041, which acknowledges the role played by public contracts in guaranteeing minimum wages.

Youth employment : On 22 December, the government passed a decree creating employment vouchers for young people. The scheme involves paying a subsidy to companies that hire unemployed workers aged under 30, who have been out of work for at least six months (three months in the case of those with only a basic level of education). The subsidy, of up to 1500 euros per month, covers one half of the young person’s wage for a six-month period (see press release).

Diversity charter : This Charter, drawn up in 2015 by the tripartite body SER, has enabled many of its signatory companies to make progress, especially in the areas of gender and ethnocultural diversity (see press release). The 532 companies that signed it are attempting to create a better reflection of society and of their customer base, while at the same time complying with legislation (see report). Their “diversity” policies are based primarily on recruitment, making changes to job offers and raising employees’ awareness. For example, one half of these companies have set up internal networks to encourage employees to take these issues on board. This initiative has enabled companies to define objectives more clearly and to tackle certain subjects that receive less attention, such as neurodiversity in the workplace. Nevertheless, SER emphasises the problems encountered in reconciling these initiatives with the GDPR, especially when it comes to processing demographic data.

Report on kerosene emissions : The Health Council, which is an independent scientific advisory body for government and parliament, has launched a public consultation on the health hazards associated with kerosene engine exhaust (see press release and report). This evaluation, which was commissioned by the Ministry of Employment and several Nordic European authorities, highlights the serious risks faced by airport workers, including flight officers, baggage handlers and crew members.

Pay transparency : Within the framework of transposition of Directive 2023/970, the government has adopted the law on equal pay for men and women for equal work or work of equal value (see press release). This law grants employees new rights in terms of pay transparency, such as providing them with access to information on their pay and enhanced protection against discrimination. Once every three years, companies with more than 100 employees will have to submit a report to the Ministry of Labour, describing how they have been implementing this law, and they will face severe penalties if they do not comply.

Sick leave : The law on additional intervention measures in the field of healthcare, which entered into force on 30 December, introduces a number of new rules applicable to persons on sick leave. Among other things, these measures concern authorisations to travel, instances of suspension of sick pay and checks conducted by non-professionals (see press release).

Employment of older people : The government has instructed the Equality Ombudsman (DO) to work with social partners on combatting age-based discrimination in the workplace. This mission is designed to propose measures that will boost the efforts made by employers to combat age-based discrimination, through preventive and promotional initiatives. Its report will be submitted by 31 March 2027 (see press release).

Labour law reforms : The Employment Rights Act, passed on 18 December, has been hailed by social partners and civil society as the biggest step forward for workers’ rights in 50 years (see government press release and factsheet). This law enacts some major changes, including: 1/ banning exploitative zero-hours contracts; 2/ protecting workers from harassment; and 3/ entitlement to sick pay from day one (see TUC press release). It constitutes a historic moment, by boosting job security and making concrete improvements to the working life of millions of people. The trade unions have stressed the importance of social dialogue, which will continue via multiple consultations scheduled in 2026, to ensure that the Act is being properly applied.

Artificial intelligence : On 15 December, the management of the chemicals group Solvay, its global works council (the Solvay Global Forum) and its European Works Council adopted an Addendum regarding Artificial Intelligence Systems to their Global Framework Agreement on Digital Transformation, signed in 2020. This agreement “provides a framework and a set of principles” to address the issues that arise in connection with the development, use or implementation of such systems. The agreement establishes a four-stage procedure: 1/ Initial and ongoing inventorisation of AI and autonomous systems (both internal and external); 2/ Risk assessment to categorise AI solutions by risk levels; 3/ Setting up procedures to manage compliance and risks associated with these tools; 4/ Providing proper training both on the use of these tools and on the procedures, rules and regulations surrounding them. Employee representatives are closely involved in monitoring the agreement. The progress of projects related to AI and autonomous systems will be a permanent item on the Solvay Global Forum agenda. The European Works Council will also be informed of any major initiatives involving the use of artificial intelligence or autonomous systems.

Collective labour agreements and low wages : A study published by Eurofound, on 19 December, analyses and compares the content of 94 collective agreements in three low-wage sectors in 11 EU Member States and Norway. The results of this painstaking work show that collective labour agreements enhance the job quality of workers in these sectors, even though the question of work intensity is not fully addressed. The study confirms the importance of strengthening collective bargaining in the States concerned.

Equal pay : The principle of equal pay means that when two jobs are deemed to be equivalent in terms of skills, effort, responsibilities and working conditions, they must carry equal pay. Relying on 16 case studies, a report published by Eurofound, on 15 December, examines how this principle is implemented. At a time when employers are adapting to the imperatives of the pay transparency directive, there is much to be learnt from this document.

Artificial intelligence : The DIGILARE research project, focusing on the challenges to workers’ collective rights posed by the digital transformation, offers a comparative legal analysis of four of the issues involved here: 1/ Who is covered by workplace representation? 2/ Which national Member State’s rules apply in a crossborder context? 3/ How are employee participation rights guaranteed in a digital world of work? 4/ What needs to be regulated to provide for quality working conditions? The project has resulted in a series of deliverables: two synthesis reports covering the project’s four topics (first report, second report); an analysis of the EU acquis in terms of workers’ collective rights and a Policy paper proposing regulatory changes at European level.