IR Notes

On 16 September, on the occasion of her first State of the Union speech, the President of the European Commission, Ursula von der Leyen, set out the European Commission’s priorities. She announced the speeding-up of the Green Deal, with a proposal to increase the 2030 target for emission reduction to at least 55% (instead of 40%) in order to “put the EU firmly on track for climate neutrality by 2050”. This ambition will breathe new life into the demands for an ecological and social transition, by earmarking additional resources for the Just Transition Fund (see news section, below). Another major ambition announced was the desire to “build a […] European Health Union” with the support of the European Parliament to “remedy the cuts made” by the European Council (see Council of the EU). Ursula von der Leyen also talked about updating the EU’s industry strategy and its competition policy, as well as a new Carbon Border Adjustment Mechanism. In terms of employment, she highlighted the importance of short-time work schemes (see Short-time work), which have benefited 40 million Europeans, and of the Sure initiative, thanks to which “16 countries will soon receive almost 90 billion euros (…) to support workers and companies” (see SURE initiative). She also confirmed the adoption of “a legal proposal to support Member States to set up a framework for minimum wages.” The goal is for every worker to “have access to minimum wages either through collective agreements or through statutory minimum wages.” Without revealing what this text would look like, she tried to offer reassurance, pointing out that she was “a strong advocate of collective bargaining” and stating that “the proposal will fully respect national competencies and traditions”, particularly those of the six member states where minimum wages are set exclusively through collective bargaining (see ETUC press release). The Commission plans to establish “a set of rules” in the area of artificial intelligence “that puts people at the centre”, so that “algorithms” are not “a black box”. Lastly, Ursula von der Leyen placed considerable emphasis in her speech on the rule of law and on fighting racism, by announcing an action plan, including legal instruments and the appointment, for the first time, of a “coordinator” who will be in charge in this area. She also wants to tackle discrimination more vigorously “in areas such as employment, housing or healthcare” (via budgetary actions). A specific strategy will be adopted to strengthen LGBTQI rights; the parts of Poland in which these rights are denied are described as “humanity-free zones” which “have no place in our Union”.
> See also: press release issued by the Parliament and the full text of Ursula von der Leyen’s speech.

Just Transition Fund : On 16 September, by a substantial majority, MEPs adopted their negotiating position with the Council and the Commission on the future Just Transition Fund. They called for a significant increase in the resources earmarked for the Fund in the 2021-2027 EU budget, i.e. to 25.3 billion euros instead of the 11.2 million proposed by the Commission (see press release). For its part, the European trade-union federation IndustriAll Europe warns that the fund “is already insufficient to cope with the decarbonisation of coal-dependent regions. If other sectors like automotive and energy-intensive industries were to be included in the mechanism, it would amount to a pitiful sprinkle of support.” (see press release).

• Restructuring: On 11 September, the European Commission adopted a proposal for a decision to award Spain 2 million euros from the European Globalisation Adjustment Fund (EGF), in order to help 500 workers made redundant in sectors ancillary to shipbuilding in Galicia, to find a new job (see press release).


• Integration of migrants and refugees: On 7 September, the Commission, the trade unions, Chambers of Commerce and employers’ organisations issued a joint statement renewing their cooperation to enhance the integration of migrants and refugees into the labour market (see press release).

A possible challenge to the dockers’ monopoly: : On 10 September, the Advocate General of the CJEU (Advocate General of the CJEU) delivered his opinions in two Belgian cases that will make waves, both in European ports and among dockers (CJEU, opinion, 10 September 2020, case C–407/19 and C–471/19 not available in English). “Ports are not a law-free zone”, he warns (point 6.1). If the Court takes the same view, “the verdict could heavily hit the Belgian port sector, representing a threat to the safety of Belgian dockers and to their social protection”, says the European Transport Workers’ Federation (ETF) (see statement).

• Draft law to extend short-time working : On 16 September, the Federal cabinet passed a draft law to protect jobs in the wake of the Covid-19 pandemic and two draft orders to extend the national short-time working scheme (Kurzarbeit) to cover the whole of 2021. These texts will enter into force on 1 January 2021.
  > Find out more: press release issued by the Federal Labour Ministry.

Agreement to extend short-time working schemes : To enable them to continue supporting businesses and employees in the context of the Covid-19 crisis, the social partners agreed, on 14 September, to extend the collective labour agreement (CCT) on the “economic unemployment” [temporary lay-off] regime and the “transitional corona regime” through to the end of 2021 (see FEB press release, and press release issued by the FGTB). This agreement provides for a further freeze in the system of gradual reductions in the amount of unemployment and integration allowances paid to job seekers.
> Find out more: article published in l’Écho (14.09)

• New short-time working scheme : Following consultation with the social partners on ways of using the European funds provided by the SURE programme, which are intended to finance short-time working schemes, the government has adopted a new mechanism, which will be in force from 1 July to 31 December. It concerns companies in all sectors, with 10 or more employees and whose monthly turnover has fallen by at least 20% in relation to the comparable month of 2019.
  > Find out more: piece written by our correspondent, Predrag Bejakovic (in English).

• National Covid-19 protocol : On 17 September, the Ministry of Employment published an update of the “national protocol to protect the health and safety of company employees in the face of the Covid-19 epidemic”, together with “questions and answers” regarding the wearing of masks and recourse to teleworking.

Challenge to guaranteed wage : The Czech Finance Minister, Alena Schillerová, wants to abolish the statutory guaranteed wage from January 2021 onwards (see Article 112 of the Employment Code). This “guaranteed wage” sets the lowest wage payable for a job, based on the level of its complexity and responsibility, and the difficulty of the work performed. It applies to all employees, with the exception of those whose wage is negotiated as part of a collective agreement. The guaranteed wage is divided into eight levels, with the lowest level being no lower than the statutory minimum wage. The minimum wage, which is currently 14,600 crowns (550 euros) might also be raised significantly next year. The communists have responded to this plan by threatening to no longer support the government. The trade unions are against the proposal, whereas the employers are delighted with it. The plan will be discussed at the next tripartite meeting.

Revision of the European Works Councils Directive and democracy at work : At its annual conference on European Works Councils, held on 9 and 10 September, the European Trade Union Confederation (ETUC) launched an offensive to strengthen democracy at work and to secure a revision of the European Works Councils Directive. The ETUC believes that it now enjoys a positive political climate: 1/ The current European Commission seems more favourably disposed to social dialogue than its predecessors. 2/ The Council is currently chaired by Germany – whose Minister of Work, Hubertus Heil (SPD), plans to take the lead on this subject, in association with the forthcoming Portuguese presidency of the EU, which is represented by one of Europe’s few left-wing governments. 3/ The European Parliament is being proactive on the matter, as it has decided to start work on adopting two own-initiative reports, which have been entrusted to heavyweights on the Committee on Employment and Social Affairs. One of these reports (overseen by Dennis Radtke, EPP) deals with revision of the European Works Councils Directive. The other (overseen by Gabriele Bischoff, S&D) will relate more broadly to the theme of democracy at work, and seeks to boost workers’ involvement in the decision-making process. 4/ The recent series of restructuring announcements linked to the Covid-19 crisis seems to leave little room for consultation, a factor emphasised by Livia Spera, General Secretary of the European Transport Workers’ Federation (ETF), who denounced the many companies that are using the crisis as an opportunity to impose harsher working conditions and are not respecting workers’ rights to social dialogue and to consultation, citing the examples of British Airways, Aer Lingus, P&O Ferries, Avia Partner, Swissport and EasyJet among others (see ETF press release). The recent succession of closure announcements, such as Bridgestone in France (830 employees) and Continental in Germany (1800 employees), will increase the pressure on the Commission to act. In a context like this, ETUC Confederal Secretary Isabelle Schömann has a strong hand to play in terms of making her claims heard. However, Member States still have to be convinced. This will be no easy task. Speaking at the conference, Nicolas Schmit said that, at the request of the ETUC and of the European Parliament, the subject would be discussed at the December meeting of the Employment and Social Affairs Council. This is an initial (small) step. Lastly, just as they did during the 2008 crisis, the employers’ organisations will hammer home the message that there is no point in increasing the burden on companies and slowing down their decision-making process at a time when they are facing up to the worst economic crisis in their history.

Dispute over lack of consultation : On 10 September, the European Works Council of the telecommunications group Verizon submitted an application to the London Employment Tribunal for the group’s management to be fined for failing to consult its EWC. The EWC had previously won its case before the Central Arbitration Committee (CAC), which ruled that management had not honoured the EWC’s rights to be informed and consulted, and ordered Verizon to pay the EWC’s legal fees (see IR Notes no. 128, 3. Companies). However, as the CAC has no powers to impose any financial penalties, the EWC was obliged to take its case to the employment tribunal to have the company punished for its wrongdoing. A decision is expected shortly.

Three European Works Councils face the prospect of a merger: In the trial of strength that looks set to unfold between the two French groups Suez and Veolia, the European Federation of Public Service Unions (EPSU), which represents workers at Veolia, Suez and Engie (which owns part of Suez’s share capital), notes that the merger “does not stem from the need to create more jobs, nor to ensure existing workers receive higher pay and better conditions” (see press release). Veolia’s European Works Council has kept a low profile so far, but the Suez EWC, acting in conjunction with the company’s France group works council, has made it known that it is “totally opposed” to the proposed merger (see press release) and has called on all employees in France, Europe and at international level to take part in a two-hour stoppage on 8 September (see press release). Meanwhile, Engie’s EWC has published a statement expressing its opposition to the new strategy adopted by management, which has announced its “decision to sell […] its shares in various businesses”, including Veolia. Members “fear a break-up of activities in the medium term which will call into question the current integrity of the business and have strong consequences on employment.”