IR Notes

On 2 July the European Commission published a communication aimed at “tapping into the job creation potential of the green economy”. Its intention is to secure the ecological transition by connecting the rise of the green economy with employment and job market policies. The Commission underlines that integrated strategies linking green growth and employment “exist in only a small number of Member States, with the majority having a disjointed and fragmented approach” ─ hence this initiative on the Commission’s part. Interestingly, the communication emphasises the importance of sectoral social dialogue in this connection, in particular when it comes to managing restructuring, and also highlights the “emerging risk linked to the development of green technologies” which “needs to be considered”, the Commission explains, indicating that “potential new hazards need to be carefully assessed and integrated in prevention strategies”. The initiative was welcomed by the European Trade Union Confederation (ETUC) in a press release in which the general secretary, Bernadette Ségol, herself stresses that “the European Commission’s Green Growth Package is forward-thinking and progressive” and declares that “Trade unions want to work with the European Commission and employers to create a fair transition to a more environmentally sustainable economy”. On the employers’ side, BusinessEurope is altogether more critical (see press release, in English), in particular concerning the Commission’s target for raising resource efficiency of 30% between now and 2030 (compared to a 20% increase from 2000 to 2011) if businesses increase “the efficiency of production processes”, adopt “innovative solutions to save resources”, develop “new business models” or offer “more sustainable products and services”. In the opinion of BusinessEurope, “The EU should abstain from any target rather than having an inappropriate one”. Moreover, “The use of resources should not be penalised, while the efficient use should be [the] objective” for business.

• Organisation of working time in inland waterway transport: On 7 July the European Commission presented a proposal for a directive concerning the organisation of working time for those employed in inland waterway transport. The text will allow implementation of the agreement of the European social partners in this sector signed on 15 February 2012. These rules, which deviate from the working time directive (2003/88), will apply to 31,000 employees and close to 10,000 businesses in the EU.

• Committee on Employment and Social Affairs of the European Parliament: At its recent meeting on 7 July, the new Committee on Employment and Social Affairs of the European Parliament conducted elections to appoint a chair and vice-chairs. It is Thomas Händel (European United Left), a German MEP of left-wing party Die Linke, who will, in his third term in office, become the committee’s chair, replacing Pervenche Bérès from France (S & D group), who is joining the Committee on Economic and Monetary Affairs. Noteworthy arrivals among the new members are Agnes Jongerius of the Netherlands (S & D group), who has been a researcher at the University of Utrecht since 2012, having been president of the Dutch trade union confederation FNV from 1987 to 2012, along with Claude Rolin (EPP group), who had been general secretary of the Confederation of Christian Trade Unions (CSC) from 2006. Another strong personality is the former labour minister of Portugal, Maria Joao Rodrigues (S & D group). She was a key influence behind the Lisbon Strategy, which aimed to make Europe the most competitive knowledge-based economy in the western world.


• Aid for redundant employees: The European Commission on 11 July proposed to mobilise 960,000 euros from the European Globalisation Adjustment Fund in order to help 280 workers made redundant by 661 businesses in the food and beverage service sector in Aragón (Spain) to find new jobs (see press release). It also, on 10 July, proposed to grant 1.6 million euros to the Netherlands to facilitate the return to work of 475 workers made redundant in the construction sector (see press release).

Civil aviation: On 5 June the European social partners in the civil aviation sector represented on the European sectoral social dialogue committee (within the air crew working group) adopted a joint declaration against EU-based flags of convenience in aviation after Norwegian Air International (NAI), an airline registered in but not operating from Ireland and employing crew on contracts from non-European countries such as Thailand, obtained a licence to fly on transatlantic routes. On 14 June Emmanuel Jahan (CEEP), president of the sectoral social dialogue committee, sent a letter in English to the Directorate General for Employment and Social Affairs of the European Commission overtly criticising the favourable position of the Directorate General for Mobility and Transport towards NAI and the pressures imposed on players in European social dialogue in the sector.

• Audiovisual and live performance sectors: The trade union federations in the audiovisual and live performance sectors (UNI MEI, FIM, FIA, EFJ) have adopted a European recommendation on improving the work-life balance (see UNI Europa press release, in English).


• Metal industry: The European employers’ organisation for the metal industry, CEEMET, has published a brochure entitled “Industrial competitiveness for a social Europe” (in English) which contains a blueprint for restoring competitiveness. The document highlights in particular all the European initiatives in the field of industrial policy which should not be implemented, such as a legislative proposal on managing restructuring, and the protection against musculoskeletal disorders (MSD).

• Application of the directive on fixed-term work to seafarers: The European Court of Justice has delivered a judgement (CJEU 3 July 2014, cases C-362/13, C-363/13 and C-407/13, Fiamingo) which rules that seafarers employed under fixed-term contracts on ferries operating between two ports located in the same Member State, do fall within the scope of directive 1999/70.

• Law on the minimum wage passed: On 11 July the Parliament definitively adopted the law on establishing a national minimum wage applicable to the whole of Germany (Gesetz zur Stärkung der Tarifautonomie (Tarifautonomiestärkungsgesetz), but with more exemptions (e.g. for certain categories of employees, allowance of transition periods) than the initially envisaged bill. The minimum wage will be introduced on 1 January 2015 and has been set at 8.50 euros gross per hour. At first, it will apply to workers who are not covered by an industry-level collective agreement, then to all employees from 2017 onwards. Starting in 2017, the minimum wage will be reviewed every two years by a commission formed for this purpose comprising representatives of the social partners, without political interference.

• Programme of the new government: The new government led by Prime Minister Alexander Stubb published its programme (in English), on 24 June. In particular, it provides for a reform of pensions in 2015, with the aim of reducing the deficit and prolonging the continuation of working life, a reform of vocational training, better social protection for self-employed workers and measures to curtail the use of zero-hours contracts.

• Endorsement of most of the employment-related measures directed by the Troika: The Council of State on 24 June issued a ruling (No. 2307/2014) which judged that law 4046/2012, which transposed a series of measures envisaged by the second memorandum of understanding between Greece and the Troika (ECB-European Commission-IMF), does not comply with the Constitution in only one respect: that it cancels the trade unions’ option of unilateral recourse to arbitration before the national mediation organisation. All the other measures are found to comply with the Constitution and international social law, including the reduction in the minimum wage by 22% to 32% in the case of employees aged under 26; cancellation of the marriage bonus; restriction of the scope of collective bargaining (including the minimum wage, which is no longer negotiated by the social partners) and even the time limit imposed on collective agreements.


• Endorsement of the decision to close down the public service broadcaster: The Council of State, in a ruling (No. 1901/2014) has judged that the decision taken by the government in 2013 to close down the ERT public service broadcaster (see article published by Eurofound, in English) complies with the Constitution and European law. In the opinion of the court, ERT is regarded as a state employer which is exempted from the scope of directive 75/129 and law 1387/1983 on collective redundancies.

• Reform of student grants adopted: The Parliament definitively adopted a reform of student grants (draft law 6670 and press release, in French), after the preceding arrangement was judged to be discriminatory by the Court of Justice, which found that children of cross-border workers should not be excluded from this support. The financial allowance is made up of two parts: one comprises a loan, the other a grant (commonly known as the ‘Subsid’) consisting of different elements (basic amount, mobility, social criteria, etc.).

• Youth guarantee scheme and employment policy: On 4 July the government approved a royal decree (Real Decreto-ley 8/2014, de 4 de julio, de aprobación de medidas urgentes para el crecimiento, la competitividad y la eficiencia) which puts in place a youth guarantee scheme (articles 87 to 113). However, the text also makes significant changes to several elements of employment policy, such as the activity of temping agencies, private recruitment companies and the public employment service.

• Air France KLM: The management of the Air France KLM group and its European works council on 12 June renewed the protocol for the European works council within the Air France KLM group. The document provides for a specific consultation procedure on “strategic” issues having a major impact on the organisation of the group, its subsidiaries and/or its employees. They will be submitted to a “group strategy commission” of the EWC which will be consulted “at an appropriate time, that is to say in advance, by suitable means and with relevant content”, allowing the management “to take into account the comments, observations and opinions of the staff representatives”. The members of the EWC further have access to an “internal computer library” containing all the information issued by the management.


• Manpower: A case has been brought before the high court of Paris (Tribunal de Grande Instance de Paris) involving the American recruitment company Manpower and the UNI European trade union federation, the French CGT and the British Unite The Union. The matter was heard on 3 July before the court, which is due to return its ruling on 17 July. The CGT and the three Italian trade unions (CGIL, CISL and UIL) on 23 May 2013 sent a request to the management of Manpower France, the country with the largest number of employees in Europe, in order to obtain the information needed to justify the establishment of an EWC. In the absence of a reply within six months, the trade unions delegated the management to set up an EWC on the basis of the fall-back rules contained in directive 2009/38. However, as the Unite union had also approached the British management of Manpower to request the establishment of such a body a short time after the French and Italian unions, the group believed it was still within the deadline. It therefore asked all the European trade unions represented in the group to appoint negotiators as members of the special negotiating body. The issues to be determined are whether the set deadline for replying to the trade union request has been exceeded or not ─ which would oblige the company to set up a “statutory” European works council, without negotiation ─ and whether the EWC is to be constituted, with or without negotiation, under the law of France (the country with the most workers) or of Great Britain (the seat of European management identified by the group).


• Recently added online, agreements on employee involvement at SAP SE and Schneider Electric SE. European works council agreements of Gras Savoye and PerkinElmer.

• Coca-Cola Iberian Partners: The Spanish high court (Audiencia Nacional) has quashed the restructuring decision taken by Coca-Cola Iberian Partners, which closed 11 sites and laid off 1,190 employees (see press release, in Spanish). The judgement requires the company to reinstate the workers who lost their jobs in April and to pay them the salaries owed since their dismissal. The court criticised the management for failing to meet its information and consultation obligations relating to transfers of undertakings. The judgement has come under criticism and could be overruled by the supreme court, to which the matter has been referred by management. A former labour minister has been appointed to attempt mediation.

• Inditex: The Inditex textile group, which is based in Spain, on 8 July renewed its global framework agreement (GFA). The accord provides for the application of fundamental rights to all the company’s employees and to those in its supply chain, in total roughly one million workers employed by some 6,000 subcontractors around the world. “This agreement is a model of mature industrial relations with a multinational corporation,” commented Jyrki Raina, general secretary of IndustriAll (see press releases of IndustriAll and Inditex).


• Unilever: The Unilever group and its European works council in January 2014 adopted guidelines to be respected with regard to anticipating and managing restructuring.

• EU social review: As happens every year, the European Trade Union Institute and the European Social Observatory have published a review of “Social developments in the European Union” (in English) which assesses the effects of the austerity policy and presents analyses of the proposed introduction of a European minimum wage and pan-European unemployment insurance scheme.


• Mobility in Europe: The European Commission has published a document on recent trends in the geographical mobility of workers in the EU (in English). The report illuminates the fall in immigration in the countries affected by the economic crisis (down by 51% in Portugal and Slovenia, and by 49 % in Spain) and a strong surge in the countries which were spared and have low unemployment (up by 71 % in Germany and by 24 % in Austria).

This acronym has since 2004 stood for the European employers’ organisation of the technology-based and metal industries (Council of European Employers of the Metal, Engineering and Technology-Based Industries), first created in 1962 under the name Western European Metal Trades Employers’ Organisation (WEM). Its role is to defend the industrial policy interests of the around 200,000 employers which are members of one of its affiliated national organisations and which employ some 13 million people in Europe. CEEMET has been a member of the European social dialogue committee for the metal sector since it was founded in 2001 and has as its social partner the IndustriAll Europe trade union federation. Its positions are closely examined because of the significance of the metal sector in Europe. See Eurofound’s European Industrial Relations Dictionary (in English) for further information.