IR Notes

Having presented its new European strategy on health and safety at work (see IR Notes 12), the Commission on 18 June adopted a communication on the “Regulatory Fitness and Performance Programme: state of play and outlook“ (REFIT). While the first document did not announce any prescriptive proposals in the short term, preferring to focus on evaluating the relevant legislation (see interview alongside), the second provides for the proposal to amend directive 92/85, on the protection of pregnant workers and workers who have recently given birth or are breastfeeding, to be withdrawn. This text had caused a rift between the Council and European Parliament, with no hope of a compromise being reached. In a working document which accompanies the communication, the Commission further announces: 1/ Confirmation that the first stage consultation of the European social partners is to begin on consolidating and recasting the three directives granting workers a right to information and consultation: directives 2002/14 (general framework for informing and consulting employees), 98/59 (collective redundancies) and 2001/23 (business transfers). 2/ A new proposal to amend directive 2003/88 on working time (scheduled for 2015). 3/  Evaluation, in 2014, of directives 99/70 and 97/81 on fixed-term and part-time work respectively, followed in the second quarter of 2015 by directive 91/533 (information for employees about their employment contract). Globally these initiatives have been criticised by the trade union world, which sees in them a desire to undermine labour law. The European Trade Union Confederation (ETUC), which found that the health and safety strategy was “too late and too weak” (press release), also censured the REFIT communication. “The Commission is boasting that they are making EU law lighter, simpler and less costly. But for whom?” asked Veronica Nilsson, ETUC confederal secretary, who denounced the withdrawal of the proposal for a maternity protection directive (see ETUC press release). The UNI Europa trade union federation takes issue with the draft Council conclusions which praise the progress made by the REFIT programme on the removal of regulations which are not fit for purpose, and denounces the REFIT communication (see press release), while the stance adopted by European Federation of Building and Woodworkers (EFBWW) is that REFIT “poses a threat to health and safety at work and working conditions”. The tone on the employers’ side is equally forthright. CEEMET, the European employers’ organisation representing the interests of the metal, engineering and technology-based industries, has sharply criticised the health and safety at work strategy, finding it senseless to adopt such a document before the process to evaluate the relevant legislation has been completed; it also believes that existing legislation must be implemented consistently and effectively across all 28 Member States before taking new initiatives (see press release, in English). These positions appear to be an attempt by each party to influence future European social policy, which the next European Commissioner for Employment and Social Affairs will be tasked with implementing.

• Organisation of working time in inland waterway transport: On 7 July the European Commission will propose a directive on the working time of people employed in the inland waterway transport sector (31,000 employees and close to 10,000 businesses in the EU). The text will pave the way for application of the European agreement of 15 February 2012 concerning certain aspects of the organisation of working time in inland waterway transport concluded by the sector’s social partners.

• Little progress at the Council meeting for employment and social affairs: At their meeting on 19 and 20 June, the European ministers in charge of employment and social affairs failed to reach agreement on the three main dossiers on the agenda (see press release, in English) : 1. While all the States are in agreement with the aim of strengthening the presence of women on company boards, as put forward by the European Commission in a proposal for a directive aimed at establishing a 40 % quota for the sex under-represented on such bodies, “opinions continue to differ sharply regarding the best way of achieving it”. Several countries rejected intervention at European level in this connection as well as any binding measures. 2. Another blocking minority prevented a general approach from being agreed on the proposal to establish a European platform for improving cooperation in order to combat non-declared work. Several countries rejected the idea of being obliged to participate in this platform, while others objected to some of its missions.  3. The proposal for a directive on implementing the principle of equal treatment of individuals irrespective of religion, belief, disability, age or sexual orientation was again the subject of a progress report. A large number of outstanding issues remain, making it impossible to forecast when this proposal might eventually be adopted.


• European hospitality and tourism skills passport: On 17 June the European Commission presented the European hospitality and tourism skills passport, which aims to facilitate contact between job seekers and employers in the catering and tourist industries in Europe. The passport will enable employers and employees to overcome linguistic barriers and will allow the former to compare the skills of the latter. The document is provided on the EURES portal and is available in all the Union’s official languages. The Commission added that its sphere of application will be extended to other sectors in due course. The skills passport is an initiative conducted jointly by the Commission and the social partners in the hospitality sector (see press release of the European Federation of Trade Unions in the Food, Agriculture and Tourism sectors (EFFAT) and the press release of HOTREC, the umbrella association representing hotels, restaurants, cafés and similar establishments in Europe).


• Aid from the European Globalisation Adjustment Fund for Greece: On 25 June, the European Commission proposed to provide Greece with 6 million euros from the European Globalisation Adjustment Fund (EGF) to help 484 employees of the Nutriart industrial bakery and its suppliers and downstream producers, as well as 24 self-employed persons whose activity was directly linked to Nutriart, to return to work. In addition, 505 young people not in employment, education or training (NEETs) are to receive assistance under the new EGF Regulation, which allows EGF support to be offered to the same number of NEETs as of redundant workers aided by the Fund (see Commission press release).

• A woman who gives up work because of pregnancy is still considered a worker: The European Court of Justice has ruled that the fact that the physical constraints of pregnancy “require a woman to give up work during the period needed for recovery”, following her pregnancy and childbirth, “does not, in principle, deprive her of the status of worker” (CJEU, 19 June 2014, case C-507/12, Saint Prix). The fact that, for these reasons, she is not actually available “on the employment market of the host Member State for a few months does not mean that she has ceased to belong to that market during that period, provided she returns to work or finds another job within a reasonable period after confinement”. Consequently, the Court reasoned that a woman who has been forced to stop work because of pregnancy can legitimately claim the benefit of income support reserved for “workers” within the meaning of Article 45 of the TFEU.

• Support for jobs: In keeping with the legislation on promoting investment, the State has decided to take over the social security contributions of 3,400 people who are to be recruited by 13 major high-tech industrial and service enterprises in municipalities experiencing a high unemployment rate. The Council of Ministers has decided to allocate 10.5 million lev (5.3 million euros) to this programme and, in return, the industrialists have undertaken to invest more than 66 million lev (33 million euros) in increasing their production. The supported investors must maintain the jobs in these projects for at least five years.

• Law on improving the status of trainees: On 26 June the French parliament definitively adopted the law on the organisation of traineeships and improving the status of trainees. From September 2015, the monthly remuneration paid to trainees remaining in a company for more than two months will go up from 436.05 to 523.26 euros for 151.37 hours of work. The wording makes clear that a traineeship agreement must not be signed for the execution of regular work corresponding to a permanent post, or to cover a temporary increase in activity or a seasonal job, or to replace an employee or official who is absent or has been suspended from his employment contract. Furthermore, the number of trainees permitted by the same employer is limited (the limit will be determined subsequently by decree).


• Law concerning posted workers: On 26 June, the French parliament definitively adopted a bill aimed at combating unfair social competition, which amends the legislation on posted workers and the fight against illegal employment. The wording reinforces the responsibility of contractors for their subcontractors. Contractors must ensure that their subcontractors apply social legislation correctly, and the law establishes a mechanism for joint and several liability in relation to wage payments. The text also lays down the conditions for rest breaks by professional drivers. The law provides for the names of companies found guilty of illegal work to be published on the internet. Trade union organisations will have more scope for protecting the interests of posted employees.

• IMF calls for industrial relations reforms: In its 5th review of the intervention programme in Greece (in English), the International Monetary Fund (IMF) has recommended new reforms, including reviewing the supplementary component of the minimum wage based on seniority in the labour market (up to 30% more for 9 or more years’ experience); this brings the minimum wage to an unacceptably high level for the less-educated and long-term unemployed. In the view of the IMF, wage rises should be linked exclusively to increased productivity rather than to seniority. The review regrets that Greece has not amended its legislation on the right to strike and continues to prohibit lockouts as a defensive tool for employers during collective negotiations. The government is requested, by October 2014, to reform the law on collective dismissals (because of their excessive cost) and industrial relations and bring them in line with international best practice. Between now and December 2014, it must adopt a unified Labour Code encompassing all existing legislation relevant for labour and industrial relations.

• Reform of collective bargaining: The government has put forward fresh proposals to amend the collective bargaining system aimed at reducing the survival period of collective agreements (bill 230/XII of 5 June 2014, in Portuguese). In particular, the text limits the survival clauses of collective agreements to three years (instead of five) and reduces from 18 to 12 months the period for renegotiating a collective agreement. At the end of this period, in the absence of a new deal, the collective agreement will become invalid (see IR Share analysis, in English). In other respects, the bill will enable a collective employment agreement to be temporarily suspended by companies in a period of crisis for structural or technological reasons, or because of a disaster or other events seriously impairing the company’s normal operation, for as long as this step is necessary to ensure the company’s viability and to safeguard jobs. Exemption from collective agreements is subject to a written agreement between the employer and the signatory trade unions.

• Taxation of redundancy payments: On 20 June the Spanish Council of Ministers adopted an income tax reform bill which provides in particular for redundancy payments exceeding 2,000 euros per year of service to be taxed. Above this amount, they would be subject to taxation, whereas legal severance pay is currently exempt. Discussions are to be held with the trade unions, which are opposed to this measure, regarding it as a double hardship.


• Exemption from social contributions for research and development: A new regulation that enters force from September 2014 will allow companies to reduce their social security contributions by 40% for employees engaged full time in R&D activities (Real Decreto 475/2014, de 13 de junio, sobre bonificaciones en la cotización a la Seguridad Social del personal investigador, in Spanish). A transitional arrangement will allow businesses which already employ staff dedicated to research and development to backdate this decrease to 1 January 2013.

• Axa: At the plenary session of the Axa Group European works council (CEG) on 11 June in Madrid, the management presented a plan for the group’s digital transformation which will have repercussions for both jobs and skills. “This will be an opportunity for the European works council to implement the European Agreement on the Anticipation of Change which we signed at the end of 2011,” said Olivier Pelras (CFDT), secretary of the Axa Group European works council. As a transnational project, the European works council “will be at the heart of the social dialogue process,” commented the EWC. The CEG secretariat, which met on 24 June, has begun “developing a working method which will be presented at the next plenary meeting in November”. “A key point for the success of our role for the benefit of employees is the best articulation as possible between CEG and staff representative bodies of each entity” (see press release). In other respects, the CEG has welcomed the Axa Group’s participation in the launch of the “Alliance for Youth” initiated by the Nestlé group, which has seen Axa commit to employing 20,000 young people between now and 2018 (including 9,000 in France). Half of these will be employed under fixed-term contracts, while the other half will be engaged on short-term or work-linked training contracts.


• Opel/Vauxhall: In partnership with the British, Austrian and Spanish trade unions and the European works council, the German trade union IG Metall based at the Opel/Vauxhall car-making plant organised a week for young workers employed by the group at Rüsselsheim, the main production site. They met with management and Wolfgang Schäfer-Klug (IG Metall), president of the European works council, and called for an exchange programme between the young workers at the various locations in Europe and a seat for a member to represent their generation on the EWC. In addition, according to IG Metall, they decided to form a new network of young Europeans within the group which will meet at least once a year.

• Danone: The trade unions affiliated with the IUF in Europe representing the employees of the Danone food group on 11 June “told the company in clear terms that they unanimously oppose the closure” of three European factories producing dairy products – in Italy, Germany and Hungary – which will result in the loss of 325 jobs (see IUF press release). In a press release the management stated that, working closely with the social partners, it “intends to take social measures identifying job solutions for each of the employees who might be concerned”. The IUF and the European works council (CIC) have called upon Danone’s management to respect the joint understanding signed in 1997 with the IUF, which provides for a three-month period to allow “trade unions to submit proposals as alternatives to plans by management” when the latter has envisaged changes in business activities affecting employment or working conditions. Otherwise, the European works council has adopted a declaration of solidarity and has decided to commission two expert reports, one on the economic reasons leading Danone to close these three sites and the other on the future of these sites and their employees.

Working time in Europe : Eurofound has published its annual survey on working hours in Europe (Developments in collectively agreed working time 2013, in English). The average collectively agreed working week remained unchanged in 2013 at 38.1 hours, as in 2012. Significant differences persist between the pre-2004 Member States (30 minutes less than the EU average) and those which have joined more recently (90 minutes more than the EU average). France is the country where the working week is shortest (35.6 hours), followed by Denmark (37) and Sweden (37.1). The survey also looked at paid leave and public holidays: together, these total 40 days in Germany and France, compared to 29 in Belgium.

• Actual average hours worked per year in Europe: The French economic institute Coe-Rexecode, which is close to employers, has for its part published a study of actual hours worked in Europe (in French), based on the data contained in the EU Labour Force Survey. Finland emerges as the country where the actual average hours worked by full-time employees are the lowest (1,648 hours), just ahead of France (1,661) and Sweden (1,685). The highest totals were recorded in Romania (2,099), Greece (2,010) and Hungary (1969). Germany’s hours were 1,847, with the United Kingdom on 1,900.


• Job vacancy rate in the EU: On 17 June, Eurostat published quarterly data on the job vacancy rate for the first time (see press release). This new indicator provides demand-side data on the employment market. According to the figures published by Eurostat, the job vacancy rate in the euro area was 1.7 % in the first quarter of 2014, an increase over the 1.6 % recorded in both the preceding quarter and the first quarter of 2013. The job vacancy rate in the EU as a whole was 1.6 % in the first quarter of 2014, up slightly compared to the rate of 1.5 % recorded in the preceding quarter and the first quarter of 2013.


• Working conditions in hairdressing: Eurofound has published a report by the Institute of Employment Studies commissioned by the European social partners on different scenarios aimed at evaluating likely working conditions in the sector in ten years’ time and the strategies which might be implemented by the social partners (“Improving quality of work and employment in the hairdressing sector: Scenarios for social partner cooperation“, in English).

The 28 Member States have thus appointed the former Prime Minister of Luxembourg, Jean-Claude Juncker, as the head of the European Commission for a period of five years. A Christian Democrat politician of considerable experience who speaks several languages, he will have the job of leading this institution which 1/ represents and defends the interests of the EU as a whole; 2/ presents legislative proposals; 3/ oversees the proper application of policies; 4/ implements the EU budget and 5/ monitors compliance with European treaties and laws. Far from being a figurehead, the president defines the Commission’s political direction and appoints the commissioners in liaison with the Member States. The appointment of the latter, as well as of the president, must be endorsed by the European Parliament. Find out more on Europa and in Eurofound’s Industrial relations dictionary (in English).