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IR Notes 123 – 3
Juy 2019
www.irshare.eu
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A question for…
Claire Berthier,
Head of Social Affairs at the Bel Group
What led you to set up a European Works Council within
your group, which produces cheeses and is active in processing fruit and milk products, and
employs just over 6,000 people in Europe? (see 3. Companies) Our European Council came into being as a result of the shared desire
of local elected representatives (from four different countries: Germany, Belgium, Slovakia
and France) and of Bel Group management. The idea behind this project, which was initiated in
concrete terms 3 years ago with the support of the European trade-union federation, was to
build a European social model consistent with the group’s values: Bel has always clearly
stated its desire for transparency and dialogue with its social partners. With this goal in
mind, the company chose to extend the scope of the works council beyond the boundaries laid
down by law and to include countries such as Ukraine and Switzerland, which are all part of
our ecosystem. The agreement was signed at the council’s first meeting, in the presence of
company managers. The meeting was preceded by a training course organised by the European
Trade Union Institute (ETUI), to help future council members to familiarise themselves with
their role. In addition to the typical subjects works councils deal with, such as the group’s
strategy, health/safety and diversity, we are also planning to deal with subjects close to the
hearts of our representatives and dear to the company, such as reducing precarious employment
and addressing issues related to working conditions.
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Lead story
An international
convention to banish violence and harassment in the workplace
On 21 June, representatives of governments, workers and employers of the 187 Member States of the
International Labour Organization (ILO) adopted the Convention
concerning the elimination of violence and harassment in the world of work by an overwhelming
majority (439 votes for, 7 against and 30 abstentions), thus demonstrating that its values are
universal and that such phenomena will not be tolerated anywhere in the world (see ILO press
release). This convention, the first one adopted since 2011, is accompanied by a recommendation
that is not legally binding but provides guidelines on how the Convention is to be applied. This
second text was adopted with slightly fewer votes – 397 for, 12 against and 44 abstentions – notably
because it contains a number of measures deemed too prescriptive by some employers’ organisations. The
convention defines “violence and harassment” in the world of work as “a range of unacceptable
behaviours and practices, or threats thereof, whether a single occurrence or repeated, that aim at,
result in, or are likely to result in physical, psychological, sexual or economic harm, and includes
gender-based violence and harassment”. Each ILO Member State will have to adopt legislation requiring
employers to take appropriate measures to prevent these phenomena. Protection is extended to all
workers, irrespective of their contractual status, including volunteers and interns, and of the
economic sector concerned (public, private and even the informal economy). Protection covers the
workplace in the broadest sense, including work-related communications based on information and
communication technologies. The convention also calls on States to take appropriate measures to
“recognize the effects of domestic violence” in order to “mitigate its impact in the world of work”,
for example, as the recommendation suggests, by adopting “leave for victims of domestic violence” or
“flexible work arrangements and protection for victims”. This text has been unanimously welcomed by
the trade union movement, which campaigned strongly in favour of the convention (see press releases
issued by the international trade-union federations IndustriAll
Global Union, UNI
Global Union and IUF and the European
Trade Union Confederation).
> The Conference also
adopted the “ILO
Centenary Declaration for the Future of Work”) (see ILO press
release). In this declaration, the ILO plans to develop an “approach to the future of work,
which puts workers’ rights and the needs, aspirations and rights of all people at the heart of
economic, social and environmental policies”.
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1. European Union
Legislation
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Social update
- Strategic agenda 2019-2024 : On 20 June, the
Twenty-Eight adopted a new
strategic agenda 2019-2024, containing several paragraphs demonstrating a level of social
concern. As regards the transition “towards a greener, fairer and more inclusive future”, it will be
necessary “to help communities and individuals adjust to the new world”. For example, the text
emphasises that the climate transformation will have to be conducted “in a way (…) that is socially
just“. States will have to pay “keen attention to social issues” and implement the European Pillar
of Social Rights. (see reaction
of the European Trade Union Confederation).
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Case law
Protection for a witness of discrimination : a
female store manager employed by a chain of clothes shops in Belgium accepted an application for a job
as a salesperson from a woman who stated during the course of the interview that she was 3 months
pregnant. In the manager’s opinion, the applicant possessed all of the skills required. However, the
Human Resources Department rejected the application on the grounds that the young woman was pregnant.
After notifying her line management, to no effect, that such a refusal to hire due to pregnancy was
prohibited by law, the manager then informed the applicant that her application was being rejected
because of her pregnancy. The applicant lodged a complaint with the authorities on the grounds of
discrimination. The manager in question, whom the company’s management blamed for being the cause of
the complaint, subsequently had her contract of employment terminated. Various reasons were given,
including her lack of respect for safety regulations. The manager herself then lodged a complaint and
applied to avail herself of the protection against retaliatory measures, granted under Belgian law,
claiming that she had appeared as a witness in the investigation of the complaint. The Belgian court
to which the case was referred held that she was not entitled to enjoy the protection provided for
witnesses in disputes relating to equal treatment of men and women on the grounds that the law calls
for specific formalities to be complied with, i.e. the witness statement must be presented in the form
of a dated and signed document. The question referred to the CJEU was to establish whether Article 24
of Directive 2006/54 of 5 July 2006, relating to equal treatment of men and women and offering
protection to witnesses of discrimination, precludes the strict criteria imposed by Belgian domestic
legislation. The Court of Justice rules that this legislation contravenes Article 24 of the directive,
which must “be interpreted as meaning that it precludes legislation (…) under which, in a situation
where a person who believes to be discriminated against on grounds of sex has lodged a complaint, an
employee who has supported that person in that context is protected from retaliatory measures taken by
the employer solely if that employee has intervened as a witness in the context of the investigation
of that complaint and that that employee’s witness statement satisfies formal requirements laid down
by that legislation.” (CJEU
20 June 2019, case. C-404/18, Hakelbracht).
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2. Member States
France
Paternity leave granted on the grounds of a child’s
hospitalisation : a decree
dated 25 June has created paternity leave to be granted in the event of a child’s immediate
hospitalisation following its birth, and which is available to the father, the mother’s spouse or a
person linked to her by a civil partnership or living in a conjugal relationship with her. This leave
will last for a maximum period of 30 consecutive days and must be taken within four months following
the birth. During the course of this leave, the person concerned will receive social security benefits
under the same conditions as those applicable to paternity leave. These new arrangements will apply to
the parents of babies born from 1 July 2019 onwards.
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United Kingdom
jurisprudence regarding choosing the law applicable to
negotiation of an agreement : following a demerger that took place in 2015 within
Hewlett-Packard, the management of one of the new entities, Hewlett-Packard Enterprise (HPE), embarked on
negotiations with a view to creating a European Works Council. The group appointed its UK subsidiary
to set up a special negotiating body. However, one year later, due to Brexit, the group decided to
place the negotiation under the auspices of Irish law, and appointed its Irish subsidiary to pursue
these discussions. In 2018, a member of the Special Negotiating Body (SNB) applied to undergo training
on the UK legislation applicable to European Works Councils, by virtue of the UK transposition law.
Management denied them permission to receive this training, as the legislation applicable to the
negotiation process was Irish law. The SNB disputed this decision and argued that the group could not
unilaterally change the subsidiary appointed to represent it. On 18 June, the UK legal authority
responsible for resolving collective bargaining disputes, the Central Arbitration Committee (CAC),
issued a decision stating that HPE was able to
terminate the appointment of its UK subsidiary. The CAC states that a multinational company acting in
good faith, which appears to be the case here, is at liberty to change the subsidiary acting as its
representative agent, provided that it continues to honour its obligations to inform and consult its
employees. A multinational company acting in bad faith might however have the appointment of a new
representative overturned. The CAC also states that the company is at liberty to opt for whichever
legislation it chooses (the directive does not stipulate any imperative provisions on this point),
even the one that it considers to be the most favourable, in the sense that it provides less onerous
obligations to inform and consult. The CAC justifies its position by upholding the principle of
freedom of establishment and relies on an EU Court of Justice ruling on registered office relocations
(CJEU,
25 October 2017, case C-106/16, Polbud).
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3. Companies
European works
councils
New agreement : On 20 June, the
management of the French cheese-making group Bel, which is also active in processing fruit and
dairy products, signed an agreement
on the establishment of a European Works Council with a special negotiating body assisted by the
European trade-union federation Effat. The manufacturer employs 12,600 people, of whom 6,646 are in
Europe (mostly in France, where it has 3,874 employees). This is one of the few agreements that also
covers the Ukraine (342 employees). Moreover, the countries covered by the agreement will continue to
form part of it even if they leave the EU, so this clause will keep the British on board. The
definitions of information and consultation stipulated by the directive have been improved (management
responses to opinions and alternative solutions put forward by the European Works Council). The
deadline set for consultation “will be agreed on a case-by-case basis, depending on the scale of the
measures envisaged”. It also includes the possibility of using videoconferencing, with the council’s
agreement, and operating resources that are deemed appropriate by the Effat union, given the group’s
size.
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Transnational
agreement
Global framework agreement renewed :
On 21 June, the management of the Italian energy group Eni (31,000 employees in 67 countries) and the
IndustriAll Global Union federation renewed their global
framework agreement (see press
release). The improvements relate to the human rights due diligence process, the prohibition of
any form of violence or harassment, improving working conditions in supply chains; sustainable
development and environmental protection; introducing the principle of a “just transition” and
granting 10 working days with 100 per cent of their annual salary to all fathers and mothers working
in the company when a child is born. Lastly, for the first time, a list
of indicators has been added to the annex of the agreement for the purpose of monitoring its
implementation, as well as a dispute resolution mechanism for dealing with possible conflicts.
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Company agreement
Accompaniment for Industry 4.0 : On 21 June, the
Italian group Luxottica, which has initiated a
merger process with the French company Essilor, signed a major company
agreement covering the 11,430 employees in Italy, with the trade unions representing them (FEMCA
CISL, FILCTEM CGIL, UILTEC UIL) and the group’s unitary trade union representative body (or “RSU”).
This agreement stipulates that the company’s 1150 temporary workers will be given permanent contracts
of employment from July 2019 onwards, but also accompanies its large-scale adoption of new 4.0
technologies requiring a rethink of how work is organised. In particular, the text provides for: 1°
The adoption of strategic and organisational participation systems with the creation of specific joint
committees within each establishment, dealing with subjects such as health and safety, training, job
classification and catering. 2° The adoption of organisational participation groups made up of the
teams responsible for continuous improvement (Kaizen), which are tasked with suggesting improvements,
initiating experiments and reporting back to the RSU on their work. 3° Arrangements covering training
and well-being at work, involving the transposition of the European agreement on violence and
harassment in the workplace. 4° The introduction of financial incentives to encourage employees to
achieve objectives. 5° The creation of a high-level participation committee, made up of managers and
trade union officials, which will be able to issue opinions on the company’s strategy.
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4. Studies and reports
Report on the future of industry :
On 28 June, the European Commission published a report on “A vision for
the European Industry until 2030“ resulting from the high-level roundtable set up in December
2017 and bringing together trade unions, employers and experts with a view to preparing a European
industrial strategy. The report has been welcomed by the European Trade Union Confederation (see press
release) and IndustriAll Europe (see press release).
- Report on artificial intelligence: On 26
June, following on from an initial report on “Ethics
Guidelines for Trustworthy AI ” (see interview with Thiébaut Weber, IR Notes 117), the high-level experts
group on artificial intelligence submitted a second report, this time containing “Policy
and investment recommendations for trustworthy Artificial Intelligence”. The document, which
is one of very high quality, states in particular that workers (not only employees but also
independent contractors) “should be involved in discussions around the development, deployment or
procurement of algorithmic scheduling and work distribution systems, to ensure compliance with
health and safety legislation, data policy, working time legislation and work-life balance
legislation. Social dialogue plays a key role to enable this.”
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