IR Notes

Nearly a month after the European Commission launched its first-stage consultation of the European social partners on how to ensure fair minimum wages within the Union, several publications now throw further light on this issue. Eurostat has updated its annual minimum wage statistics in 2020, emphasising the disparity between minimum wage levels within the EU. This shows there is a sevenfold difference between the lowest (Bulgaria, 312 euros) and highest (Luxembourg, 2,142 euros) minimum wage. When purchasing power parity is taken into account, the gap comes down to a factor of three. One bar chart deserves particular attention: it shows the level of each country’s minimum wage as a proportion of its median gross full-time earnings. The Commission has suggested that the minimum wage should be 60% of this median earnings figure, which corresponds to the poverty threshold. Of the 19 countries that have a minimum wage and for which data is available, just three are above this threshold (Slovenia, France, Portugal). As a result, most States will have to make a significant effort if they are to meet this target, especially those five in which the minimum wage represents between 40% and 50% of median earnings. For its part, the European Trade Union Institute (ETUI) has published a working document entitled (“The European minimum wage on the doorstep”), advocating a pragmatic approach to the 60% threshold. This formula would have to be tested in each country, for example using a basket of specific goods and services, defined in conjunction with the social partners, to check that a minimum wage of 60% of national median earnings really does equate to a wage guaranteeing a decent standard of living. The European Foundation for the Improvement of Living and Working Conditions (Eurofound), which is due to publish a full report on 20 May (Minimum wages in 2020: Annual review), has already published some information in its blog. The author reminds us of two conclusions reached by previous research: minimum wages probably do not harm employment a lot (at least not substantially as a whole), but they tend to have a more limited impact on fighting in‑work poverty. Lastly, we should also mention another study, this one performed in the USA, which was published on 7 January in the Journal of Epidemiology and Community Health. It establishes that increases in the minimum wage seem to reduce the suicide rate among people educated to upper secondary level or below.

2020 work programme : On 29 January, the European Commission adopted its work programme, setting out the actions it will be taking in 2020, among those already referred to in its communication dealing with a “strong Social Europe for just transitions” (see IR Notes 133). This year, the Commission will present several “strategies”, i.e. sets of measures combining non-binding instruments with European funding, to promote gender equality, boost workers’ skills and digital education, and to support LGBTI people. The programme contains few binding texts in the area of social policy, other than an instrument seeking to establish a European minimum wage and measures imposing greater wage transparency on employers in relation to men’s and women’s pay (see press release). The programme can also be analysed in terms of what it leaves out: there is nothing in it about either the new strategy on occupational safety and health, or procedures for informing and consulting workers, or legislation requiring multi­national companies to follow due diligence and exercise responsible business conduct. The European Trade Union Confederation has expressed its regret at these omissions (see press release). Proposals to improve the working conditions of workers employed by digital platforms have been postponed to 2021, to allow time for consultation to take place this year.

• Minimum wage: Reacting to the first-stage consultation of European social partners on how to ensure fair minimum wages, launched by the European Commission on 14 January (see IR Notes 133), the employers’ organisation BusinessEurope has stated that it is “strongly opposed to EU legislation on minimum wages.” (see press release).


• Gender pay gap: In a resolution on the gender pay gap adopted on 30 January by a very large majority, MEPs called for an ambitious strategy, including binding measures to reduce the gender pay gap. They also want to see “collective bargaining restored, defended and promoted” (see press release) and for “strong enforcement policies”. MEPs are thereby indicating to Member States that they will have to deal with a Parliament that is united and determined to take forward the issue of equal pay for equal work.

Urban Public Transport : On 29 January, the European social partners in the urban public transport sector (UITP and ETF), renewed their Joint Recommendations for Combating Violence and Insecurity (see ETF press release). This is a joint undertaking to apply the recommendations made in two existing texts: 1° the 2007 Framework agreement on harassment and violence at work; 2° the joint statement issued in 2015 by their counterparts at international level (UITP and ITF) regarding Recommendations for Combating Violence and Insecurity on Urban Public Transport, which “modernises and firms up” the joint recommendations on insecurity and feelings of insecurity adopted by the UITP and the ETF in 2003. Violence, aggression and other forms “anti-social behaviour at work” discourage “new workers from joining, most particularly women who are already under-represented in the transport sector”, and deter “people from using urban public transport”, despite the fact that developing public transport is a key factor in combatting climate change. The social partners are calling for these texts to be implemented by means of workshops, conferences and monitoring their application at national level. These recommendations can also provide direct inspiration for social dialogue within companies faced with these phenomena, even companies outside the urban public transport sector.

• Holiday pay entitlement : Is there an entitlement on the part of a worker to paid annual leave in respect of the period from the date of dismissal to the date of reinstatement where it is established that such a worker has been unlawfully dismissed from that employment? That was the question answered by the Advocate General of the Court of Justice. In his opinion, which the Court of Justice usually follows, the Advocate General emphasises that the employee has not been able, for reasons beyond his or her control, to exercise the right to paid annual leave before termination of the employment relationship. He or she is therefore entitled to financial compensation, which must be calculated so that the worker is put in a position comparable to that he or she would have been in had he or she exercised that right during the employment relationship. (CJEU, Opinion, 29 January 2020, case C-762/18 and C-37/19).

• Occupational healthcare : A Royal Decree of 12 January 2020 has been published, amending the list of occupational exposure limit values to chemical agents (see press release). This text, which transposes Directive (EU) 2017/2398 of 12 December 2017, adds “works giving rise to exposure to alveolar crystalline silica dust derived from work processes” to this list. As a result, this type of substance “is unambiguously defined as carcinogenic”, according to the Ministry of Employment.

• Labour market reforms : The new government has embarked on a social dialogue with the social partners, aimed at revisiting the 2012 employment reforms (see the European Trade Union Institute’s Background Summary of the 2012 reforms on the Reformwatch website. The main subjects for discussion are as follows: 1° Prioritising company agreements over sector-based collective labour agreements. 2° Extending collective labour agreements beyond their expiry date. 3° Use of subcontracting and fixed-term employment contracts. 4° Changes to working conditions. 5° Dismissal. Discussions are due to last until the summer. The government has announced an immediate rescinding of the right to dismiss employees on absenteeism grounds. This right entitles employers to dismiss employees provided they pay them redundancy money representing 20 days’ wages for each year worked, in cases where the employee has been absent from work a number of times over a given period, even if this is for valid reasons. This practice punishes employees who go on sick leave at frequent intervals and for very short periods of time.

Family leave : The Finance law has raised the period of entitlement to compulsory paternity leave on full pay to seven days (in place of the previous allowance of five days). This must be taken during the first five months of the infant’s life. The option of adding an extra day is maintained, provided the mother foregoes one day of her maternity leave. The government is also examining the financial feasibility of extending the term of compulsory paternity leave to one month.

Quality of life at work : The MENSEN association has secured funding from the government, enabling it to pursue the work it began in 2019, to encourage companies to obtain “menstrual certification” following an internal audit, to organise training courses and adopt action plans (see interview with Klara Rydström, in IR Notes n°131). MENSEN emphasises that “the aim is to help create a working environment that is equal, safe and fair, in which the various needs of employees during menstruation periods are recognised and respected”. The project is supported by the Body Shop and the trade union Akademikerförbundet SRR.

Three levels of extraordinary consultation : Following three years of negotiations, the management of Coca-Cola European Partners (22,500 employees) and the European trade-union federation Effat have signed an agreement establishing a European Works Council at this company, which was created by a merger, in 2016, of the Coca-Cola Company’s three European bottling operations, two of which already had their own European Works Council (Coca-Cola Enterprises and Coca-Cola Iberian Partners) (see Effat press release). The first meeting is scheduled to take place at the end of March, at Heathrow (United Kingdom). The agreement contains very detailed provisions regarding consultation in the event of exceptional circumstances; three different scenarios are envisaged, depending on the number of employees impacted (under 100 employees, 100 to 300, over 300). The thresholds change the number of meetings (from one to three), the body convened (select committee or plenary body) and the timetable for proceedings (a maximum of eight weeks). An agreement signed on 28 January at the French subsidiary specifies the composition of the French delegation to the European Works Council (four representatives, two of whom are entitled to attend extraordinary meetings of the select committee).

• Post-Brexit clauses : A supplemental agreement dated 16 October 2019, to the European Works Council agreement of the Canadian group Bombardier, published on line by the European Trade Union Institute, seeks to keep the British representatives on the council, even if the United Kingdom leaves the EU or the European Economic Area and if the European Works Council Directive no longer applies to the UK. Something else worthy of note in the Coca-Cola European Partners European Works Council agreement is an explicit clause (Article 4.6) maintaining all the effects of the agreement in the UK, where it has a 3,625-strong workforce: the British representatives will continue to be accredited EWC members and the European Works Council will remain competent to deal with all transnational matters concerning the United Kingdom.

Agreement renewed : On 5 December 2019, the Italian manufacturing group Cementir (3,000 employees), whose head office is in the Netherlands, renewed its European Works Council agreement under the auspices of Italian law. The council, on which 7 employee representatives sit, will be entitled to invite observers representing non-EU countries to sit in on its meetings. The council’s secretariat comprises five representatives, one of whom is a coordinator appointed jointly by the Italian trade-union federations.

> Further agreements: a number of new agreements have been published on the European Trade Union Institute’s website: Berckers & Colart, Österreichische Bundesbahn (ÖBB), Wilsonart.

Fundamental Social Rights : On 31 January, the cosmetics group L’Oréal (86,000 employees) announced the launch of its new “Employee Human Rights Policy“. The group commits “to uphold a set of universal human and social rights standards for all its employees worldwide, regardless of their geographic location or position in the Group” (see press release). This text is similar to a global framework agreement, other than for the fact that it has not been drawn up jointly with a trade union partner. Article 9 on Wages, Hours, Leave and Benefits provides for “a minimum maternity leave of 14 weeks paid at 100% of the salary and a minimum paternity leave of 10 days paid at 100% of the salary”. Employees (or their families) will receive “at least twenty-four months’ salary in the event of death or permanent incapacity and access to major medical treatments” guaranteeing reimbursement of “at least 75% of related costs”.