IR Notes

Inflation is galloping away and cutting employees’ purchasing power across Europe, so this is a “transnational” topic par excellence. However, the question of setting pay is, by nature, either a national or a local issue, and is restricted to collective bargaining. So, are EWCs nonetheless tackling this question? We conducted a micro-survey among the EWCs we monitor. The answer is:  Yes! EWCs are mobilising. For Vinci EWC members, the finding is “unanimous”: “concerns about wages are reaching a level never seen in the past, across all European countries”. Philippe Lecocq, who is a member of the works council steering committee, says: “our vision at Vinci is that wage policy is a matter for EWCs”. This finding appears to be shared by most of the works councils we contacted. Action is being taken at three levels:

• Submitting a wage claim: The Scor SE EWC included the following item on the agenda of its meeting on 11 October: a “request for payment of an allowance for employees to offset inflation and energy costs”. At the meeting, “we also discussed the need to envisage a general increase, given that inflation is running at 10% in the euro zone”, emphasises Christophe Lefebvre, EWC secretary. In a declaration made at a plenary session on 29 June, Carole Bourner, secretary of the Generali EWC, called for “an allowance of at least €500 for everyone, both to thank them for the efforts they made during the health crisis and to help employees with the reduction in their purchasing power, without prejudice to any actions taken at local level”. In their letter to management, Vinci EWC members formulated “a simple request: that no Vinci group employee should lose any of their purchasing power”. The topic of adapting wages and salaries to keep pace with inflation is also on the agenda of the next Verizon EWC meeting. At this stage, the responses given by the various company managements to EWC members tend to be unfavourable, although Scor is planning to “consider the matter”. The reasons for management saying ‘no’ vary from one company to another, e.g. the matter has to be dealt with at local level (Safran); it is up to each business unit to do what it sees fit (Generali); or that this is not a matter for the EWC (Verizon).

• Requests for information: Requests for information regarding the measures taken in countries to offset inflation are being submitted either at a steering committee meeting or a plenary session. For example, after asking management in vain for information about the wage measures being taken in the various countries, the Generali EWC secretary will organise a round table session at the next steering committee meeting, to find out what measures may have been negotiated at national level. “An overview of economic assistance linked to inflation (energy and cost of living) is on the agenda” of the next Veolia EWC executive committee meeting, explains its secretary, Michaela Sofer-Ayadi. A search for transparency is apparent on the Safran EWC. Two questions were added to the agenda of the plenary session held on 25 October:  What average pay rises have been granted by the group in 2022? What other measures (types and amounts involved) have been put in place to help employees cope with inflation? Another question was put to management at the start of the year: “how does the group plan to enhance its employees’ remuneration, to ensure that they can not only maintain their purchasing power but also receive a fair reward for the efforts they made during the health crisis, and thus make our offers of employment more attractive in relation to the competition?”. We need to be able to put questions to management. For example, as a result of rising energy costs, the Sanofi EWC executive committee asked for “two questions to appear on the agenda of its latest executive committee meeting”, explains its secretary Aline Eysseric: “What help does Sanofi envisage providing for its employees?” and “What impacts might there be on the company’s real estate footprint and on work management?”. Management removed the first question from the agenda “because the situation is different in each country”.

• Pressure on management: Wages were reviewed on 1 July this year at Dassault Systèmes, as a result of the group’s favourable results, and pay rises of 1% to 2% were granted in countries where inflation was at average levels and rises of 2% to 4% in those where it is higher. However, in light of the way inflation gathered pace from September onwards, employees subsequently decided this was not enough. The EWC then decided to set up two working parties. One was tasked with carefully analysing the group’s financial results in recent years and the other with comparing trends in the company’s various operating costs and the dividends paid, in relation to wages and salaries. The EWC also wants to try and exert a greater influence over the executive committee by pushing this subject actively onto the agenda and sharing real-life stories of employees who are struggling to make ends meet. “As you are aware”, explains Nariman Aga-Tagiyev, EWC secretary, “we cannot impose whatever we like on management: all we can do is to influence it through the stories we tell”. Establishing a link between increased dividends paid to shareholders and low pay rises is also an argument being developed by other EWCs (Safran).

• Access to employment for Ukrainian refugees : On 10 October, the European Commission unveiled an online tool (the EU Talent Pool Pilot) created by the European Labour Authority, which is intended to facilitate access to job offers for Ukrainian refugees in a number of EU Member States (currently six) (see press release).

• European Year of Skills : On 12 October, the European Commission adopted a proposal for a decision on a European Year of Skills 2023. According to the Commission, giving citizens the skills needed to cope with the green and digital transitions “empowers individuals to successfully navigate labour market changes and to fully engage in society and democracy”.

Central government : On 6 October, the EU social partners for central governments adopted a European agreement on digitalisation, covering teleworking (see Telework), the right to disconnect (see Right to disconnect) and the use of artificial intelligence. One provision also addresses the impact of domestic violence on working life. European social partners at cross-industry level are currently embarking on negotiations aimed at reaching a European framework agreement on teleworking (see IR Notes 193), and the European trade-union federation EPSU believes that this agreement can act as a starting point. The signatories have asked the European Commission to submit their agreement to the Council, so that it can be covered by a European directive to make its provisions binding in all Member States (see EPSU press release).

Wearing the veil : The Court of Justice has issued a new ruling concerning the wearing of items of clothing with religious connotations at a company (CJEU, 13 October 2022, Case  C-344/20, L.F. v. SCRL) (see Discrimination on the grounds of religion or belief). A woman who wears the Islamic headscarf applied for an unpaid internship at a company engaged in the letting of social housing. Her application was shortlisted, and at the interview, the employer asked her if she would agree to comply with the strict neutrality rule featuring in the company’s internal rules. These rules prohibit not the wearing of conspicuous, large-scale signs, but rather the wearing, in the workplace, of any visible sign of political, philosophical or religious belief. She refused and was not taken on. A few months later, she applied again, and offered to wear “another type of head covering”. The management explained that no type of head covering was permitted on its premises, be it a cap, a hat or a headscarf. Once again, she was not taken on. The Court of Justice holds that the rule laid down by the internal rules, “provided that it is applied in a general and undifferentiated way, does not establish a difference in treatment based on a criterion that is inextricably linked to religion” or to religious, philosophical or spiritual beliefs. However, it “may constitute a difference in treatment that is indirectly based on religion or belief”, if “the apparently neutral obligation it encompasses results, in fact, in persons adhering to a particular religion or belief being put at a particular disadvantage”. This difference in treatment would not however constitute indirect discrimination “if it were objectively justified by a legitimate aim and the means of achieving that aim were appropriate and necessary”.  The Court states that “the mere desire of an employer to pursue a policy of neutrality – while in itself a legitimate aim – is not sufficient, as such, to justify objectively a difference in treatment indirectly based on religion or belief, since such a justification can be regarded as being objective only where there is a genuine need on the part of that employer”. It is the employer’s responsibility to demonstrate this “genuine need”. The Court justifies its position in the following terms: “That interpretation is inspired by the concern to encourage, as a matter of principle, tolerance and respect, as well as acceptance of a greater degree of diversity, and to avoid abuse of a policy of neutrality established within an undertaking to the detriment of workers who observe religious precepts requiring the wearing of certain items of clothing.” (see press release issued by the Court).

• Vaccination leave : The government has decided to reintroduce an entitlement for workers to take a brief absence from work for the purpose of receiving a vaccination against Covid-19, without any loss of earnings. The arrangement, which came to an end on 30 June, will enter into force retroactively on 1 October and will remain in force until 31 December 2022 with the option of an extension, by royal decree, until 31 March 2023 at the latest (see press release).

Towards a reform of industrial relations : The government has presented the report of the high-level group on collective bargaining and industrial relations, which was set up in March 2021 to examine the collective bargaining landscape in Ireland and to formulate recommendations for improving this. The report is also about preparing to reach the target of 80% of employees being covered by a collective agreement, as provided for by the new European directive on minimum wages (see government press release), whereas the current figure in Ireland is around 34%. The recommendations, which have been made by academics, government representatives and social partners, have been welcomed by the trade-union confederation ICTU (see press release) and the employers’ confederation IBEC (see press release).

• Domestic violence leave: While the government has proposed the introduction of an entitlement to five days’ paid leave per year for victims of domestic violence (see IR Notes 193, Lead story), the employers’ confederation IBEC has expressed reserves, arguing that employers should be allowed to ask for “proof”, to prevent any “potential abuse” by victims taking paid leave. The employers fear that businesses, especially SMEs, which are already dealing with “unprecedented increases in family leave in the last 12 months” – will experience “significant adverse implications”. IBEC has therefore asked the government to provide an economic impact analysis (see article in The Independent). For its part, the SIPTU trade union has strongly condemned this position. Its Deputy General Secretary, Ethel Buckley, emphasised that “Financial independence from abusers is the key to escaping and building a better life. Workers should not need to prove abuse to an employer.” Consequently, she argues, “there should be no requirements for proof which would discourage take-up of the entitlement” (see press release).

Transgender issues : Reacting to the Dutch section of the European study entitled “Inclusion4All – Trans, intersex and non-binary people at work” (see project website), the trade-union confederation FNV and the NGO Transgender Netwerk Nederland, have urged the government to introduce a law enacting “transition leave”, to allow an employee to attend meetings linked to their transition. IKEA, Unilever and the Dutch Railways all introduced this leave for their employees a year ago. Both organisations are calling for this leave to be extended to all employers. They also want employers to commit to signing more inclusive collective labour agreements, to ensure that companies constitute a safe workplace for everyone (see FNV press release).

• Tripartite agreement : On 9 October, the government, several employers’ organisations and UGT (one of the country’s two main trade-union confederations) signed a Medium-term agreement to improve incomes, wages and competitiveness, which will remain in force until 2026 (see government press release). This agreement has four aims: 1/ rebalancing the share of national wealth represented by wages and salaries, by raising this from 45.3% to 48.3% (EU average), with an average annual pay rise of 4.8% from 2023 to 2026 and an increase in the minimum wage from 760 euros in 2023 to 900 euros in 2026; 2/ strengthening business competitiveness (cutting social security contributions, etc.); 3/ retaining young talent by setting up a recruitment support programme that will assist 25,000 young people over a four-year period; 4/ helping families and businesses to cope with the crisis, in particular by limiting energy price rises. The CGTP confederation has refused to sign the agreement, saying that “increases in the private sector cannot be enacted by decree. Wages are set via collective bargaining!” (see CGTP press release).

Menopause : IR Notes has noted a number of innovative initiatives being taken, mainly in Sweden and the United Kingdom, with the aim of making workplaces more welcoming for women by taking account of the suffering they endure in connection with periods, endometriosis and the menopause, difficulties linked to child-bearing (IVF cycles, miscarriages) and domestic violence. In the UK, the menopause has become a major public health issue (see IR Notes 176, IR Notes 184 and IR Notes 186). The trade unions have published practical guides for their members (see guides published by the TUC and Unison), while several organisations have issued recommendations for employers (see guides published by the NHS, ACAS and the CIPD). Even though the menopause is unlikely to become one of the grounds of discrimination mentioned in the Equality Act, the law firm Lewis Silkin, which advises businesses, has published a briefing inviting employers to pay special attention to their female employees who may be going through the menopause. These companies need to be aware of the risks they face at a legal level, in terms of discrimination and of health and safety. The briefing, which is entitled “menopause and work“, emphasises that problems linked to the menopause can give rise to discrimination claims based on sex, age and/or disability. It also suggests preventive actions that can be taken (training, communication, having a menopause champion within the company, etc.) to adapt the working environment.

European and global dialogue : The management of the Swedish group SKF, its European Works Council and its World Union Council (WUC) held a face-to-face meeting in Gothenburg, from 3 to 6 October, to discuss the company’s strategy and its future. Among other things, the EWC focused its attention on SKF’s environmental footprint, the energy crisis and the consequences of the war in Ukraine. The forty or so trade-union officials present included a Ukrainian delegation. At the request of WUC chairman Kenneth Carlsson, management promised that the WUC would be informed and consulted on strategic discussions and decisions (see press release issued by IndustriAll Global Union).

Eliminating violence and harassment : On 5 October, at an EWC meeting, the management of the retail group Carrefour (321,000 employees) renewed the global framework agreement signed with UNI Global Union. This agreement, which was first signed in 2001, had already been renewed and enhanced in 2015 and 2018. The new text, which will remain in force until October 2025, contains: 1/ new provisions governing application of the principles of IOL Convention 190 on eliminating violence and harassment in the world of work; 2/ and, in appendix, the Joint declaration on protective measures for workers and customers in the food retail sector during the Covid-19 pandemic, which was signed by UNI, Carrefour and Auchan Retail in 2020 (see UNI Global Union press release).

• Strengthening trade unions : The Global Union Committee of the Inditex group, which was established by the global framework agreement signed in 2019, met from 3 to 6 October. It adopted a new protocol that “furthers social dialogue by reinforcing the committee and its coordinating bodies, specifically establishing new mechanisms for cementing the role of the local unions” (see IndustriAll Global Union press release).