IR Notes

Working together to build a social Europe

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

IR Notes 41 – The European Commission presents its work programme for 2016.

  IR Notes 41 – 4 November 2015
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The team This issue was produced by Francisco Gomez Abelleira, Stepanka Lehmann, Märt Masso and Frédéric Turlan.
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  Interview
Aline Conchon, Former researcher at the European Trade Union Institute and recently appointed policy officer at the IndustriAll European trade union federation

You have published studies on worker representation on company boards (see below). Is this phenomenon still relevant today?
Of course, especially since the finger was pointed at poor corporate governance in the context of the financial crisis. Worker representation is one of the levers for strengthening companies’ transparency and governance. Unfortunately, this lever was set aside by European lawmakers in their initiatives to control the financial sector and improve corporate governance. However, countries in which worker representation is most widespread are also those which are coping well despite the crisis, such as Germany or certain Nordic countries.


Is worker representation integral to the European social model?
As the report produced together with the Trades Union Congress underlines, 21 EU countries have in their legislation a recognised system that allows workers to be involved in strategic decisions, as worker directors; they may also have the possibility of playing an active role in the annual general meeting of shareholders or of taking part in the management team, as is the case with “labour directors” (Arbeitsdirektoren) in German companies. As for worker representation on management or supervisory boards, this exists in 18 EU countries plus Norway.


What does this achieve?
We also conducted a European survey on worker directors to which we received more than 4,000 replies. This allowed us to understand what worker directors do, what bodies they sit on, how they articulate their mandate with their trade unions etc., which enabled us to highlight the conditions needed for the presence of worker directors to deliver value-added. Thus, it is essential that the trade unions take an interest, that the worker directors forge links with the European works council, that management involves the worker directors in the decision-making process, and that they benefit from a package of support measures such as training or time off to fulfil their mandate.


Does the trade union movement intend to place this topic on the agenda again?
Yes. This is the point of the initiative by the European Trade Union Confederation advocating a directive on worker involvement which would apply to all European company forms, be it the European Company, the European Cooperative Society or the proposed European single-member company – even if no form of worker representation previously existed in the company or companies adopting one of these statutes.


> Report ”Workers’ voice in corporate governance: a European perspective” (2015)


> Conchon, A. Waddington, J. (2015) “Board-Level Employee Representation in Europe”, 282 pages, £95. The principal conclusions are presented in a policy brief of the European Trade Union Institute (Etui), available as a free download on the Etui website, in English and French, as well as in German on the Hans Böckler Foundation website.

 
  Diary

11-12 November
Luxembourg
The European Economic and Social Committee (EESC) and the Economic and Social Council of Luxembourg (ESC) are organising a Conference on road transport including, on the 11th, a session devoted to social dumping in the road transport sector.


19 November
Brussels
Conference organised by the Dublin Foundation (Eurofound), Cedefop and the EESC on “Work organisation and workplace learning: Creating a win-win environment“.


23-24 November
Luxembourg
Presentation of the First findings from Eurofound’s 6th European Working Conditions Survey organised by the Foundation for the Improvement of Living and Working Conditions (Eurofound).


25 November
Brussels
Conference organised by Confrontations Europe entitled “Energy and digial mutations: the impact on employment and the role of economic and social actors in Europe“.


26-27 November
The Hague
European Labour Law Network seminar on “Digitalisation and labour law“; speakers include Muriel Guin, Jean-Emmanuel Ray, Bernd Waas and Edoardo Ales.
Contact: waas@jur.uni-frankfurt.de


4 December
Paris
The “Great debate” organised by the Droit social periodical entitled “Droit du travail, croissance et emploi : que faire? (Labour law, growth and jobs: what can be done?)”. An item on experience outside France is followed by a discussion of EU policy.


10-11 December
Poitiers, France

Colloquium organised by the Direccte Poitou-Charentes regional directorate for companies, competition, consumption, work and employment, and the University of Poitiers entitled “The works council’s role in the evolution of worker representation“, with a session on works councils in European and global companies.

 

IR Notes is a fortnightly newsletter produced by 
IR Share and its network of experts, and is available in several European languages. It offers Europe-wide monitoring of employment law, labour relations and employment policy. It is available by subscription for 15 euros per month (excluding tax), via the IR Share website. 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 and Luxembourg of the Dublin Foundation since 2009 and for Bulgaria since 2014.

 

Lead story
The European Commission presents its work programme for 2016.

The President of the European Commission, Jean-Claude Juncker, on 27 October presented the Commission work programme for 2016 (see press release). Apart from “initiatives on better migration management”, the programme contains a major social component, with a “new skills agenda for Europe” and “a new start for working parents”. As indicated by an annex, outlining the 23 initiatives that will be taken, this will comprise a “set of legislative and non-legislative measures to better address the challenges of work-life balance faced by working parents and support the participation of women in the labour market”. The programme also puts forward a key measure announced by Jean-Claude Juncker, a “pillar of social rights as part of a deepening of economic and monetary union” which, according to the annex, “will address gaps in existing legislation and identify common principles and reference benchmarks with a view to a greater convergence of employment and social performance over time”. The programme envisages a review of the quality of current EU legislation (REFIT initiatives) including in particular: 1/ REACH legislation (protection against exposure to chemical products); 2/ health and safety legislation, with a view to making sure it is “workable and will be enforced”; 3/ directive 2008/106 on the training of seafarers. A further annex states the “priority pending proposals” intended to speed up the work of the parliament and the council, such as the proposed directive on the presence of women on boards or the decision establishing a European platform on undeclared work. “It is far from clear what is concretely proposed, but some of the commitments are at least encouraging,” commented the new general secretary of the European Trade Union Confederation Luca Visentini (See ETUC press release). BusinessEurope did not publish a press release on the new work programme.


1. Union européenne
Social update

  • Communication aimed at deepening the single market: The European Commission on 28 October presented a communication entitled “Upgrading the Single Market: more opportunities for people and business” accompanied by a Commission staff working document (“A digital single market strategy for Europe – analysis and evidence”) and a report “on the integration and competitiveness in the EU and its member states”. This is a roadmap that will guide the Commission in its preparation of initiatives to remove the barriers still obstructing the smooth operation of the internal market, but also to adapt the internal market to “innovative business models”. The aim is to act to provide an environment that will allow the emergence in Europe of future Googles or Facebooks (see press release). The Commission wishes to develop a European agenda for the collaborative economy while making sure that “labour law is complied with” and that it “protects workers” – which was welcomed by the European Trade Union Confederation (see press release). It envisages that any measure posing a barrier to the internal market for services that has not been notified to the Commission should be considered void. The communication confirms the adoption of a “mobility package” in order to ensure “better coordinated social security systems” and to conduct a “targeted review of the posted workers directive”. Another priority will be to simplify the cabotage rules in the road transport sector and to ensure adequate working conditions in this industry. BusinessEurope welcomes the Commission’s initiative (see press release) and urges it to proceed rapidly. The organisation mentions a study by the European Parliament which finds that completing the single market could add up to 5% to the EU gross domestic product.

  • Four social directives to become law in 2016: The Commission’s work programme for 2016 (see above) is rounded off by the list of legislation that becomes applicable in 2016, including four directives with a social content: directive 2014/54 on the freedom of movement for workers; directive 2014/67 on the enforcement of directive 96/71 concerning the posting of workers; directive 2013/35 on the protection against exposure to electromagnetic fields; and directive 2014/112 implementing the European agreement on working time in inland waterway transport.


Case law

  • Transfer interpreted as a breach of freedom of association: The European Court of Human Rights on 22 September ruled on a case concerning two Turkish teachers who had been transferred from their schools after taking part in an unauthorised demonstration (ECHR 22 September 2015, application Nos. 22685/09 and 39472/09, in French, and press release). The Court recognised this as a violation of article 11 (freedom of assembly and association) of the European Convention on Human Rights.


Sectoral social dialogue

  • New work programme in the chemical industry: On the occasion of the tenth anniversary of their European social dialogue committee, the European social partners in the chemical sector on 14 October adopted a roadmap 2015-2020, a work programme 2016-2017 and an addendum to their framework agreement on competence profiles of 2011. The two partners announced that they intend to enter negotiations on sustainable employment and career development in 2016 with a view to concluding a voluntary framework agreement. The document will include chapters on young people, older workers and women.

  • Sugar industry crisis: The European social partners in the sugar sector on 26 October adopted a declaration calling on the European authorities to set up a “restructuring fund” to mitigate the impact of the unprecedented crisis currently affecting the sugar industry (see EFFAT press release).


2. Member states
Estonia

  • Minimum wage to go up: Following the intervention of a state-appointed mediator, the social partners arrived at an agreement on an increase in the legal minimum wage, which will rise from 355 euros to 430 euros at the beginning of 2016 and then to 470 euros in 2017. It was set at the level of approximately 40% of the median monthly earnings (1,082 euros in the second quarter of 2015).


France

  • Regulation of traineeships: More than one year after the law of 10 July 2014 on the regulation of traineeships was adopted (see article published by Eurofound), the government on 26 October passed a decree (in French) that limits the maximum number of trainees that can be engaged to 15% of the workforce in organisations having more than 20 employees, and to three in those with fewer than 20. A single mentor is not allowed to supervise more than three trainees.


Germany

  • IG Metall opens its doors to self-employed workers: At its 23rd congress, the IG Metall metalworkers’ and engineering union amended its constitution to extend membership to one-person businesses – in particular crowdworkers pursuing their activity via crowdsourcing platforms (see press release, in German). It will now be possible for self-employed individuals to become members of IG Metall provided that they themselves are not employers.


Spain

  • Protection of personal data: The supreme court annulled a clause used by a call centre in all its employment contracts whereby any communication relating to the employment relationship could be sent to the employee by text message or email. The employee was obliged to advise the employer immediately of “any relevant change to these data”. In the eyes of the court, this clause violated employees’ fundamental rights insofar as it obliged them to communicate their personal data. Furthermore, it found that the employee’s consent could not be regarded as valid insofar as the clause appeared in all employment contracts, leaving the employee largely powerless to renegotiate this provision.


3. Companies
European works councils

Deutsche Bahn: Deutsche Bahn and its European works council on 28 October arrived at an agreement on the guarantees offered to around 1,000 European employees affected by the creation of a shared service centre for accounting in Bucharest (see press release of the German trade union EVG and press release from Deutsche Bahn). The agreement, “secured after a year of difficult negotiations,” says EWC chairman Joerg Hensel, “provides minimum standards for all the employees affected by this relocation”. “According to our lawyer, Manfred Bobke-von Camen, this is one of the first agreements of its kind in Europe.” The document provides a right to redeployment within the employee’s original company or, failing this, within the entire group, either in his own country or in the EU, thanks to the establishment of an internal job market at European level. “The agreement,” Joerg Hensel points out, “also provides for payment of relocation expenses if transferred, compensation for a reduction in pension for employees eligible to take early retirement, a right to training or retraining in order to apply for a different position within the group and the creation of a hardship fund should an employee face particular financial difficulties”.



  • NH Hotel: The Spanish hotel group NH Hotel (9,818 employees) on 9 October concluded an agreement (available in Spanish) with a view to establishing a European works council (see press release of the European trade union federation EFFAT).


Transnational agreement

Umicore: The management of the Belgian Umicore group (14,000 employees) and the IndustriALL Global Union trade union federation on 20 October renewed their global framework agreement on sustainable development of 2007 that was previously amended in 2011. The new agreement covers fundamental human and social rights, health and safety, as well as environmental considerations. The IndustriALL press release contains details of monitoring missions carried out as part of the agreement’s implementation (also see Umicore press release, in Dutch).
> Also see: The request drawn up by the new global trade union network at the Saint-Gobain group, calling for negotiation of a global framework agreement (see IndustriAll press release). Last minute: H&M and IndustriAll have signed an International framework agreement (see IndustriAll press release).


4. Studies and reports

Falling proportion of employees covered by collective agreements: The International Labour Organisation has published a summary (ILO, “Labour relations and collective bargaining”, Issue Brief No. 1, October 2015) (in English) of the number of employees covered by collective agreements (“collective bargaining coverage”) derived from its industrial relations database IRData. Between 2008 and 2013, the ILO found a drop in bargaining coverage (–4.6%) together with an average decline in union density (–2.3%). The bargaining coverage in the 10 countries of the EU most severely affected by the crisis fell by an average of 21%, particularly under the influence of the Troika’s recommendations in favour of decentralised collective bargaining (see press release, in Italian).

 

IR Notes

An introduction

IR Notes is an independent, reliable and balanced briefing note on industrial relations and labour law in Europe.

Published in 6 languages and sold by subscription, this newsletter gives you access to concise, targeted and practical information on the major themes of both social Europe and transnational social dialogue.

With our experts and national correspondents, we adopt a dynamic, practical and useful approach to European social monitoring.

As a result, we select the most relevant topics, which are a source of cross-disciplinary and inspiring ideas.

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.
  • Updates on EU legislative and case law developments.
  • Monitoring of labour law developments in EU Member States.
  • Updates on the latest developments concerning European Works Councils and SE Works Councils.
  • Lastly, IR Notes keeps you informed about the main studies and research carried out on the world of work.

IR Notes
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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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