IR Notes

Working together to build a social Europe

An independent, reliable and impartial source of information on industrial relations and labour law in Europe.

IR Notes 22 – Progress by Europe’s labour ministers on several issues

  IR Notes 22 – 17 December 2014
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  Dear readers,

The IR Notes team will be back with you on 14 January. We wish you a joyous festive season and look forward to accompanying you right through 2015!”

 
  IR Perspectives by Fernando Vasquez
lawyer, former official of the European Commission and expert member of the IR Share network

Which reforms, what labour market, by which means? A few weeks ago, Martin Wolf wrote in the Financial Times (“Radical cures for unusual economic ills”, 25 November 2014 issue): “This (the need to avoid weakening demand) is one of the difficulties with the boilerplate recommendation of labour market reform, which entails lowering wages for a large proportion of the labour force and making it easier for employers to hire and fire. (…) Reforms should promote demand. That is why the eurozone must settle on a balanced package, not excessive reliance on structural reforms.”


Call for an alternative policy. Despite this argument against the current reforms of the labour market from the FT’s principal economic commentator, whose words carry unprecedented weight all over the world, it is unlikely that the EU will change its recent direction on this subject. Every day, political current affairs provide us with images of European leaders extolling the virtues of the search for competitiveness and growth by lowering labour costs – to the point that another influential commentator from the FT, Wolfgang Münchau (“Radical left is right about Europe’s debt”, 23 November 2014), disillusioned with the dogmatic conservatism of the traditional political forces of the right and left, called on the radical parties of the left, Podemos in Spain and Syriza in Greece, to act and offer a coherent vision of an alternative policy in order to spare us “the economic equivalent of a nuclear winter”.


Reforms are probably necessary. Those which have been pursued in recent years nevertheless suffer from two serious flaws which risk making them economically ineffective and being rejected by the majority of social forces: on the one hand, they are based on a growth in inequalities, in injustice, in poverty and in precariousness, and on the other, they ignore any attempt at consensus between the principal social partners, for example by disregarding the collective agreements concluded between the latter. It has yet to be explained seriously and in detail by which mysterious ways competition can be boosted, at least in the medium and long term, simply by lowering labour costs (and purchasing power of course), independent of any consideration of productivity and economic solidity.


Negation of social dialogue. And how can one expect to pursue such reforms in a Europe whose economic prosperity has been built on social dialogue, without getting the employee representatives, who have demonstrated their opposition to this development, to sign up to it by negotiation? It may even appear strange that the EU has wanted to force the pace and has taken this path of refusing to engage (by simply refraining from explaining and justifying the policies proposed) and of isolating the social players when it has embarked upon reforms on a scale never before seen in peace-time.


Importance of the European spirit. All those who have been involved over many long years in devising and negotiating controversial European instruments know the importance, to achieve success, of mobilising what can be termed the “European spirit”, or put less pompously, the simple political will to work together, to focus on shared interests, to translate these into concrete instruments, to mobilise the decision-makers and to do what has to be done to reach consensus or, at any rate, a compromise. Indeed, this vision of a common interest was for a long time shared by governments, the principal European and national political parties and the social partners. It rested on two pillars: the equality of all the players (one state, one vote) and the balance of the solutions pursued.


We are now living in a different world: Political equality between European equals has become an illusion; balance has been replaced by the unilateral imposition of conditions, and the will to work together has vanished. Even the most devoted Europhiles end up believing that action at EU level must remain an exception rather than the rule. When such action is quite clearly essential, its implementation is accompanied by apologies. As for the Eurosceptics, they deny the advantage of acting at this level, without any great effort at justification, having won the argument! The application of subsidiarity and proportionality has become a one-way street that robs these principles of any meaning. The reality is that no-one in the EU wants common and shared projects any more, other than those which, seen narrowly, may be expedient in the light of immediate concerns, or, in economic governance, those which provide ideological, or even political, tutelage.


Loss of popular support. This state of affairs alone can explain why no-one even tries to elucidate and justify the proposed reform measures, or to gain the backing of all the social forces and the citizens. It is no longer possible to do so. It may not even be desirable. More than the direction and the very dubious content of these reforms, the fact that they are being implemented in isolation prevents the search for compromise and leads to a sort of European nihilism which is in the process of draining popular support from the political ideas with which we have been familiar for decades. While this development is perhaps inevitable, are we at least aware of it?

 
  Diary

17 December
Brussels

Adoption of the work programme of the European Commission for 2015


19 December
Strasbourg
Third international conference on the posting of workers entitled: “Directive on the enforcement of Directive 96/71/EC concerning the posting of workers: a look at the news and changes?“, focusing on two key areas: 1. Identification of what is a genuine posting and prevention of abuse and circumvention; 2. Monitoring compliance and employees’ rights. Contact: aurelie.kraft@unistra.fr


20 January
Paris
International conference: “ New modes of production at the global level: opportunities and challenges for the world of work” organised by the French ministry of labour in conjunction with the ILO Research Department and the ILO Office for France.


3 February
Brussels
Symposium by the European Trade Union Institute on the debt crisis, the EU and the welfare state.


12 -13 February
Paris
The European social partners of the civil aviation sector are organising a conference presenting the results of the study conducted by Ghent University on “non-standard employment of air crews” commissioned by the social partners.


24 February
Brussels
Monthly forum of the European Trade Union Institute on Corporate social responsibility and the trade unions.


26 February
Riga
Conference organised by the Latvian EU Presidency on the Trade union role in promotion of sustainable growth and job creation.


31 March
Riga
Forum of the social partners on The role of social dialogue in ensuring economic growth and qualitative workplaces, organised by the Latvian social partners and the Latvian EU Presidency.

 
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IR Notes is a fortnightly newsletter produced by IR Share and its network of experts, and is available in several European languages. It offers Europe-wide monitoring of employment law, labour relations and employment policy. It is available by subscription for 15 euros per month ; 150 euros per year (excluding tax), via the IR Share website. IR Share is a privately- owned, independent, apolitical company whose aim is to inform and assist all players involved in social dialogue within and outside Europe. It has been the correspondent organisation for France and Luxembourg of the Dublin Foundation since 2009 and for Bulgaria since 2014.

 

Lead story
Progress by Europe’s labour ministers on several issues

During the meeting of the Employment and Social Affairs Council on 11 December, the European ministers of labour arrived at an agreement (“general approach”) on the Proposal for a Regulation of the European Parliament and of the Council “on a European Network of Employment Services, workers’ access to mobility services and the further integration of labour markets” which aims to improve the efficiency of the European employment services (Eures) in order to facilitate labour mobility (see Council press release, in English). The ministers also reached agreement on the directive relating to seafarers, aimed at removing the derogations envisaged by European social legislation, primarily with reference to information and consultation rights (see Council press release , in English). The European Parliament has still to deliver its position on these two texts at first reading. In another advance, the Council has arrived at a political agreement on the proposal for a directive on the organisation of working time in inland waterway transportwhich is based on the agreement concluded by the European social partners in this sector. By contrast, the member states were unable to agree a proposal for a directive “on improving the gender balance among directors of companies listed on stock exchanges and related measures” which aims to establish a quota system in order to ensure better representation of women on company management and supervisory boards by 2020 (see Council press release , in English). Agreement could not be reached despite the flexibility proposals put forward by the Italian EU Presidency (see Council press release , pages 9 and 10). Discussions took place on the proposal for a directive on equal treatment (in English), which has been on the Council’s table since 2008. It is regarded as a priority by the new European Commission. Exchanges also took place on maternity leave, with the ministers agreeing on a leave period of 18 weeks (instead of the 14 currently applicable), including six weeks’ compulsory leave after childbirth and an allowance on a par with sick pay. Ministers are still not ready to accept the European Parliament’s proposal (20 weeks on full pay), which is judged to be “unrealistic” (see Council press release, page 11).


1. European Union
Social update

  • Assistance from the Globalisation Adjustment Fund: The European Commission on 9 December proposed to grant nearly 3.8 million euros to Belgium from the European Globalisation Fund (EGF) to help more than 2,200 workers. This move follows the redundancies of 1,285 employees at Arcelor Mittal Liège and 1,030 workers at Caterpillar Belgium, as well as those at Duferco Belgium and NLMK La Louvière. (See Commission press release)


Sectoral social dialogue

  • Telecommunications: The social partners in the telecommunications sector on 28 November adopted a joint declaration on future skills needs. The signatories call on companies in the sector to cooperate by creating an association or a committee dedicated to professional skills development in the telecommunications sector which would allow them to share their best practices.

  • Postal services: The European social partners in the postal sector on 21 November adopted a joint declaration on matching skills and jobs in the sector in response to the development of new activities and the retraining of personnel involved in classic activities for which demand is declining.

  • Hairdressing: The European social partners in the hairdressing sector on 22 October adopted a resolution on securing employment in the hairdressing sector. After an alarmist analysis of employment in the profession, the signatories insist on maintaining or establishing social and quality standards in all member states, particularly by means of European certifications put in place by the European social partners, based on a certain number of criteria for practising the profession. They call on the Commission to secure employment in the hairdressing trade and not to jeopardise the profession by completely eliminating all regulations on market access based on quality criteria.


Case law

  • Confirmation of a provision aimed at combating abuses relating to the posting of workers: The European Court of Justice has delivered an important judgement concerning the room for manoeuvre available to the member states to monitor the flow of posted workers (CJEU 3 December 2014, case C‑315/13, De Clercq). Action was taken against the directors of a Belgian company following a check by the labour inspectorate which had noted the presence of Polish workers employed by the company’s Polish subsidiary, who had been posted to work in Belgium. They were not in possession of either E 101 forms or of the acknowledgement of receipt issued following the pre-posting declaration envisaged by Belgian legislation. Under the law, contractors must provide the responsible agency with the data allowing posted workers who are unable to present the acknowledgement of receipt to be identified. It was because of failure to comply with this obligation that action was brought against the company directors. The latter claimed that this obligation was a disproportionate restriction on the freedom to provide services. The court noted that this obligation does indeed constitute a restriction on the freedom to provide services, but that it is justified. The court found that “the objectives of protecting posted workers and combating fraud […] are capable of justifying” the legislation at issue, which “constitutes a necessary control measure”.


2. Member states
France

  • Law to reboot the economy: The council of ministers on 10 December adopted the “bill for growth and economic activity”, which aims to reboot the economy by means of a large number of different measures, including some with relevance for employment: greater scope for shops to open on Sundays (increased from five to twelve times per year, and all year round in certain tourist areas) and a reform of the conseils des prud’hommes (courts responsible for matters relating to labour law). (See government press release and press pack presenting the bill, in French).


Germany

  • Minimum wage: A regulation of the labour ministry, adopted on 27 November, will allow the new minimum wage package to take effect in the healthcare sector from 1 January 2015 (see ministry press release).


Italy

  • Vote on the “Jobs act”: The parliament definitively adopted the law reforming the labour market, commonly referred to as the “Jobs act”, which will enter force in January. The text introduces a certain number of measures aimed at making it easier to hire staff, with incentives for employers, but also a reduction in the protection for employees – and at decreasing the segmentation of the labour market. However, to gain a detailed insight into the changes brought about by this reform, we must await the decrees which the government is authorised to issue. The Italian trade unions held a one-day general strike on 12 December to mark their opposition.


Sweden

  • Political crisis: Few reforms relating to social affairs can be expected between now and 22 March, when new legislative elections have been called after the present government lost its majority when its finance bill was defeated in parliament. The far-right Sweden Democrats voted for the counter-proposal presented by the centre-right opposition, which put the alliance of Social Democrats and Greens in the minority and rendered it incapable of governing. The Sweden Democrats have announced that they will vote against all bills which do not contain measures to limit immigration.


3. Companies
European works councils

Bayer: The management of the German chemical group Bayer and its European works council – known as the Bayer European Forum — on 13 November signed a joint declaration aimed at providing guarantees to the employees affected by the IPO of the Bayer Material Science (BMS) plastics business unit. In particular, the text provides for the preservation of the European sites and, in the event of manpower adjustments at the future business entity, adherence to the “principles for social compatibility” negotiated within the Bayer group, and a commitment to uphold these until their official expiry at the end of 2020. The text defines the measures to be taken in order to avoid any redundancies on economic grounds. “We have therefore secured measures to safeguard jobs that are valid for a period of six years, which is remarkable,” commented Oliver Zühlke (IG BCE), secretary of the Bayer European Forum.



  • Axa: At its plenary meeting on 26 November, the European works council of the Axa group presented a methodology for the process of information and consultation in connection with the group’s global digitisation project. The objective, accepted by the management during the session, is to establish permanent social dialogue during the meetings of the executive committee and plenaries to accompany the group’s digital transformation. In addition, the EWC will develop the holding of meetings in each country between the national members represented on the EWC and local management with a view to preparing the plenary sessions. This exercise will allow the flow of information about how the digitisation process is progressing at national level, while at the same time bringing in the expertise developed by the EWC at this level.

  • Pernod Ricard: The management of the Pernod Ricard group and the members of its European works council on 3 July reached agreement on a revised version of the agreement which created the EWC. The text in particular provides rules for convening the select committee in the case of exceptional circumstances. The EWC’s responsibility is defined as relating only to transnational projects forming part of a global restructuring plan and affecting at least 100 employees in each of the establishments concerned.

  • UniCredit: The European works council of the UniCredit banking group, which met in plenary session on 28 November in Milan, in a statement called on management to discuss a joint declaration on responsible sales practices. It reaffirmed its commitment to strengthening social dialogue at European and national level.


4. Studies and reports

  • Integration of people with disabilities on the labour market: In 2011, according to Eurostat (see release), disabled people had more limited access to the employment market: while the employment rate of people aged 15 to 64 without disability was 66.9%, this rate was much lower (47.3%) for those with disabilities. The employment rate of disabled people was less than a third in Hungary (23.7%), Ireland (29.8%), Bulgaria (30.7%), Romania (31.8%), Slovakia (31.9%) and Croatia (33%). On the other hand, employment rates above 60% were recorded in Sweden (66.2%), Luxembourg (62.5%), Finland (60.8%) and Austria (60.3%). The rate recorded in France was 56.2 %.


Phrase of the fortnight
Fitness check

This term, more readily associated with the vocabulary of gyms and health spas, has figured in the work programme of the European Commission since 2010. Alongside the application reports envisaged for directives after they have been in force for a number of years, the Commission has also launched fitness checks in order to carry out an overall evaluation of European legislation in specific areas. One of the first sectors to be subjected to a fitness check was the directives providing a right of information and consultation. The outcome of the exercise, carried out under the “smart regulation” concept of rules which simplify legislation and produce an effect while minimising the administrative burden, appeared in a working document published in 2013. The findings were that these directives are fit for purpose, but that there are still some issues which need to be re-examined. On this basis, the Commission has announced a “consolidation” of these documents. See the Eurofound European Industrial Relations Dictionary for further information.

 


Désabonnement

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