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 115 – Unilever signs an unprecedented agreement on its future employment policy

  IR Notes 115 – 13 March 2019
www.irshare.eu
 
 
  A question for…
Hermann Soggeberg, Chairman of Unilever’s European Works Council

You’ve just signed a European Framework-Agreement on the Future of Work (see Lead story), within a group that is under growing pressure from activist investors to improve its margins. How did you manage to obtain a commitment from management to fund training and re-skilling programmes?
We waged an intensive campaign called “People before Profit” that enabled us to establish a balance of power. One thing we’re pleased about is the fact that we managed to arrange a meeting between the European Works Council and the group’s new President. It was ten years since a meeting like this had been held, and he committed himself by signing this framework-agreement. We feel that the company has listened to us, and that this framework-agreement is a positive signal in terms of demonstrating that the goal of enhancing the company’s profitability can be reconciled with that of meeting the needs of its employees in terms of their skills. The agreement means that the group will no longer train its workforce to adapt only to changes in the nature of jobs, but will also train employees to cope in the event that their job disappears, so that they can retain or even improve their job prospects in the employment market. The agreement contains a number of innovations in terms of working jointly with management on topics such as the future of work, digitalisation, new forms of employment, etc. The agreement can’t go into detail, as these challenges now have to be discussed by working parties set up at national level, but it will provide funding for any concrete measures emerging from these working parties.

 
  Appointment

Oliver Röpke, Head of the Office of the Austrian Trade Union Federation (ÖGB- Europabüro) (CV) in Brussels, has taken over the Presidency of the Workers’ Group of the European Economic and Social Committee, from Gabriele Bischoff (DGB), who held this post for three and a half years. She has left her post to take part in the European elections campaign, as the SPD candidate in Berlin. (see press release).

 
  Diary

 


13 March
Paris

A conference organised by Paris-Nanterre University (UFR DSP), IRERP and the ‘Master 2 Droit social’ employment law course, entitled “Tempête judiciaire sur le plafonnement des indemnités de licenciement injustifié et sur les plateformes numériques – regards croisés franco-italiens“. [‘The judicial controversy surrounding a) the capping of compensation paid for unfair dismissal and b) digital platforms – comparative views from France and Italy’]


15 March
Brussels

Employment and Social Policy Council


21 March
Paris

Les Débats d’EUROGIP
conference on the theme of “Occupational health and safety: what levers in Europe for a culture of prevention in the workplace?“. The conference reports on the different approaches taken in this area at international, national and sectoral levels; the support offered by insurance companies dealing with accidents at work and occupational diseases in Germany, Austria, Italy, France and Denmark; and the benchmarking systems used for managing health and safety in the workplace.


21 and 22 March
London

Germano-British seminar on European Works Councils
, organised by the EWC Academy, with the participation of Catherine Sarah Barnard, Professor of Employment Law at the University of Cambridge, and Stephen Redmond, Chair of the Central Arbitration Committee (CAC).


2 April
Paris
The CFDT Construction et Bois union is organising a debate and get-together on the theme of “Citoyen et syndicaliste : 2 voix pour agir pour l’Europe“ [‘Citizens and trade unionists: 2 voices to promote the cause of Europe’] that will be attended by Pascal Lamy (Institut Jacques Delors), Marcel Grignard (Confrontations Europe), Werner Buelen (EFBWW), Sylvain Lefebvre (IndustriAll Europe) and Laurent Berger (CFDT).


3 and 5 April
Paris
Annual Employment and Diversity Law Conference of the International Bar Association on the theme of “Employment Law in Difficult Times”.


4 April
Warsaw

Third seminar of the “European Metal Workers’ participation: State of play and best practices on the edge” project, led by the FGMM-CFDT, with the support of Syndex and twelve trade-union federations from EU countries, on the effectiveness of European Works Council consultations. Contact: caroline.blot@fgmm.cfdt.fr


9 April
Brussels
High-level conference on “The Future of Work: Today. Tomorrow. For All.“, organised by the European Commission


16 April
Brussels
Final seminar of the European EWC 4.0 project, on the role of European Works Councils in terms of digitalisation, led by Astrees and IR Share.
Email: c.teissier@astrees.org

 
  Who are we?

 


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 18 euros per month


The team This issue was produced by Jan Czarzasty et Frédéric Turlan.
Find out more about the  IR Share team on our website


Subscribe to IR Notes Via the 
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Legal notice. Publisher: IR Share SARL – 5, Les Compères – 89520 Fontenoy, France – Tel.: +33 (0)6 81 41 53 95 – share capital 1,500 euros – commercial register (RCS Auxerre): 512 567 959. Managing editor: Frédéric Turlan. Hosting: Ideal prod – 14 rue  Auguste Morel – 89100 Sens – France – Tel.: + 33 (0)3 86 83 21 21


 

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
Unilever signs an unprecedented agreement on its future employment policy

This is an important transnational agreement. Its signatories rightly describe it as “an ambitious and unprecedented initiative and agenda, which will require a very significant resource investment”. In this agreement, the European Works Council reaffirms a position taken previously (Barcelona Agenda Roadmap), which stated firstly that pursuing profit blindly, and ignoring the needs of the workforce, is unsustainable, and secondly, that productivity dividends must therefore also be used to invest in employees. The European Framework-Agreement on the Future of Work, signed on 6 March, between Unilever’s management and its European Works Council, includes measures that management has promised to fund with a “sufficient budget”. These involve: 1/ forming joint working “teams” in every country to establish individual training plans for each site and each employee; 2/ asking these joint teams to draw up “employability programmes” for locations where the deployment of digitalisation is likely to negatively impact job numbers; 3/ engage with employee representatives to explore new models of employment that will simultaneously meet the business’s needs for flexibility and workers’ needs for security. The text encourages local agreements on pilot experiments. The next stage is to arrive at “co-creations”, without in the process challenging either unilateral decisions taken by management or collective bargaining. 4/ engaging, likewise, in discussions on professional transitions, either inside or outside Unilever, again with the aim of “co-creating”. In practice, the signatories are calling for joint working “teams” to be set up within the framework of new forms of cooperation, in order to “identify new solutions” that will deal with “new issues” before their disruptive effects make themselves felt. Every country is therefore being invited to choose to create a joint working team to consider either the topics of training, qualification and employability (points 1 and 2), or those of sustainable employment and the future of work, which includes new forms of employment or the ways in which work or working hours are organised (points 3 and 4). The European Works Council will monitor the work undertaken and any pilot experiments performed. The agreement will be published on line here as soon as we have the green light from the European Works Council.


***Last minute***

Protection for whistleblowers : On 11 March, the European Council and Parliament reached a provisional political agreement on the directive on protection for whistleblowers, approving the position adopted by the European Parliament in November 2018 (see IR Notes 97). The Member States that wanted to force whistleblowers to report information internally on harm done to the public interest, i.e. directly to the organisation they are holding to account, have had to yield. In accordance with the wishes of many NGOs and the trade unions, the text offers the whistleblower freedom of choice when it comes to selecting a reporting channel. “The agreement reached on Monday evening is a major step forward for our democracy”, says Virginie Rozière (S&D), who is the rapporteur for the directive on protection for whistleblowers (see IR Notes 109).


1. European Union
Social update

Civil aviation : On 1 March, the European Commission published a report that sets out a number of actions intended to maintain and promote high social standards in the civil aviation sector (see press release). It does not announce any binding measures but initiates work on several projects and lays down a number of red lines. For example, it indicates that a pilot who works for only one airline and is paid by the latter while operating under its orders, cannot be deemed a self-employed worker.
>
see reactions of the European Transport Workers’ Federation (ETF press release) and the European Cockpit Association (ECA press release).



  • Publication of “country reports”: On 27 February, as part of the European Semester exercise, the European Commission published a communication and the 28 country reports providing a detailed analysis of the economic and social challenges specific to each Member State and the national policies being implemented (see press release issued by the Commission). The European Trade Union Confederation says it is disappointing that “very little reference is made to the need to increase wages” (see press release).


2. Member States
France

  • Posting of workers : By means of an order dated 20 February, the government incorporated Directive (EU) 2018/957 on the posting of workers in the framework of the provision of services, into French law.

Poland

  • Teachers’ strike : The main teachers’ trade union, ZNP, has called for a general strike on 8 April, during the school examination period. The second-largest trade union in the sector, Solidarność, is not yet certain whether it will join in this industrial action, but this looks fairly likely (see article).

Portugal

  • Recruitment of disabled employees : Law n° 4/2019 of 10 January 2019 establishes a quota system intended to boost recruitment of disabled persons in the private sector and in some public bodies. It applies to medium-sized businesses (with 75 or more employees), which will have to ensure that at least 1% of their workforce are employees with disabilities. The rate rises to 2% for businesses with at least 250 employees.

3. Companies
European Works Councils

Failure to consult the works council : On 22 February, the Bobigny regional court ordered the French railway company SNCF to pay damages for acting unlawfully in connection with the sale, in 2017, of its logistics subsidiary STVA (2,150 employees), which operates in eight European countries (see judgment). Management only informed the company’s European Works Council of its plans, at the Council’s request, at the plenary meeting held in June 2017, without consulting it. The court held that: 1/ the sell-off was “transnational in nature and [it] came within the scope of the European Works Council’s right to information; 2/ the quality of the information provided to the European Works Council was inadequate; 3/ the decision to privatise the STVA group via an invitation to tender was taken in the last quarter of 2016, i.e. before the European Works Council held its plenary meeting. Consequently, it appears that the works council was “informed late” of the sell-off and also “inadequately, such that the procedure associated with the European Works Council’s right to information was impeded”. The court pointed out that “consultation must be carried out in a timely manner, i.e. prior to the decision to sell off the business”. The court held that because STVA no longer belonged to SNCF but to the CAT group, the sell-off “involved a change of employer for STVA’s employees”, which “substantially affects their interests, and SNCF therefore had a duty to consult the European Works Council”. Secondly, “the means whereby the CAT group promised [, etc.] not to carry out any restructuring linked to the acquisition in France is ineffective”: it can “be rescinded at any time”, applies “only to France” and is valid “only for three years”. The European Works Council has expressed its satisfaction with the judgment on its website (see press release).



  • Brexit: On 19 December 2018, the management of the Suez group (5,600 employees) and the company’s European Works Council signed an amendment to the agreement on the establishment of a European Works Council, with a view to managing the United Kingdom’s exit from the EU. The text is meant to be general in scope and stipulates that the representatives of a company located in a country that is leaving the EU, “may retain full member status in the EWC if their company”: 1/ remains attached to the Group’s European scope; 2/ has an annual turnover that represents a significant portion of the Group’s overall results; 3/ has around 1,000 employees. On the other hand, according to the Safran European Works Council (see press release), the aerospace parts supplier’s management announced, on 5 March, that in the event of a “No Deal Brexit”, the British delegation would no longer sit on the European Works Council (the United Kingdom, with 4,300 employees, is the group’s second-largest country, in terms of workforce size).

  • Restructuring: The European trade-union federation IndustriAll Europe is mobilising to support its affiliates and the Honda employees impacted by the Japanese car maker’s decision to close its plant in the United Kingdom (see press release). For its part, the European Works Council is claiming that it should be consulted on this decision, whereas the company’s management, according to the Secretary of the Works Council, is of the opinion that this is a purely national project that does not need to be referred to the European Works Council.


Trade unionism

Trade-union network meeting : On 26 February, trade unions in the Circle Media Group (5,000 employees in nine Member States) adopted a declaration, expressing their concern at the way the group is being managed and calling for the creation of a European Works Council (see press release). The company’s management reacted to this challenge (see press release), following which UNI Europa called for a meeting to be arranged (see press release).



  • Fundamental labour rights: The UNI Global Union federation has called on the management of the Teleperformance call-centre company (300,000 employees) to show more respect for fundamental labour rights and human rights (see press release).

  • Sexual harassment: On 1 February, at a meeting of the committee tasked with monitoring its international framework agreement, the management of the pen manufacturer Faber-Castell (8,000 employees) indicated that it was drawing up a code of conduct that would include a strong policy on sexual harassment (see press release).


4. Studies and reports

A minimum European income : On 20 February, the European Economic and Social Committee (EESC) adopted an opinion entitled “For a European Framework Directive on a Minimum Income”, prepared by Georges Dassis (see photo), who is a member of the EESC Workers’ Group and a former EESC President, in which he calls on the European Commission to establish a binding framework setting an adequate minimum income, tailored to the living standard in every Member State (see press release).


5. European elections

In this section, our aim is not to influence your vote in the forthcoming European elections, but to inform you of initiatives seeking to open up a debate on the future of the European Union or to put forward proposals here and now.


> In this edition, this time we are highlighting a political initiative: the platform established by French President Emmanuel Macron, called “For European renewal“, which has been – and this is a first – published in all European languages and in many newspapers across the EU. The EU, which “has always defined the standards of progress” and is where social security “was created”, “needs to drive forward a project of convergence rather than competition”. It must provide every worker with “a social shield guaranteeing the same pay in the same workplace, and a minimum European wage appropriate to each country and discussed collectively every year”. Also, a new mobile app, available in 24 languages, has been developed by the European Parliament to tell people how the EU is fashioning our daily lives.

 

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.

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