IR Notes

On 18 September, the management of car manufacturer Stellantis and a special negotiating body assisted by the IndustriAll Europe trade union federation, signed an agreement on the establishment of a European Works Council within this group, formed in 2021 from the merger of PSA and Fiat Chrysler Automobiles (see IndustriAll Europe press release). The new agreement, which will be governed by Dutch law, dissolves the three existing EWCs of the group’s various entities. The text, which is one of the few concluded within a very large group in recent years, is important insofar as some of the negotiations were conducted on the basis of texts linked to revision of the European Works Council directive, and because it is likely to be used as a benchmark during forthcoming renegotiations of agreements, taking account of the future revised directive. This EWC is competent to deal with transnational issues that have “a significant impact on the Group’s employees’ interests, if they affect at least 5% of the employees in each of at least two of the referred Countries”. The council’s remit includes powers to deal with environmental concerns, decarbonisation policies, digitalisation and the main outlines of the group’s social policy and HR plans. It comprises 37 members, including two UK members who have a consultative role. The agreement establishes a 12-member select committee, on which the number of seats assigned to each country is pro rata to the size of its workforce, and each national delegation is required to choose the members who will represent it on the select committee. The EWC will meet twice a year (for at least 2½ days), as will the select committee. The select committee’s powers include exercising the EWC’s information and consultation prerogatives where exceptional circumstances arise, if the select committee and management can agree on this. The EWC will also “have the right to express an opinion on any matter which has not been submitted for a formal consultation procedure, but which the employee representatives have identified as being relevant and of international importance”.
Members will benefit from a minimum of 2 and a maximum of 6 days of collective training for each four-year term of office they hold, based on a training plan drawn up by the select committee at two-yearly intervals. The agreement’s confidentiality clause is fairly specific, and emphasises that the confidentiality obligation is not applicable between full and deputy members, nor to employees’ local representatives or trade union officials, “who will however need to respect the same non-disclosure obligation as imposed on the EWC members”. The member protection clause stipulates that the EWC must be informed of any disciplinary measures taken against a member and that it will have “the possibility to discuss the matter with Management before any sanction has been decided”. The European Works Council has no budget of its own. Members will be granted a 4-day time credit to discharge their mission (this figure rises to 8 days for select committee members and 16 days for the chairperson, deputy chairperson and secretary. The council may be assisted by a representative of IndustriAll Europe, and Stellantis management will cover travel and accommodation costs, and also “fees”, which as far as we can tell, is a first for EWC agreements, at least explicitly. The council may also be assisted by a chartered accountant, for the purpose of analysing financial statements, and if necessary, by an expert of its choosing, in the case of “exceptional topics” linked to a consultation process. Lastly, the agreement’s termination clause envisages the EWC surviving, on the basis of the directive’s subsidiary requirements, if attempts to negotiate a further agreement are unsuccessful.

The new European Commission : When, on 17 September, Ursula von der Leyen, President of the European Commission, unveiled the photo gallery of her future commissioners to the European Parliament, she caused consternation among trade unions and left-wing MEPs. For the first time, the Employment and Social Affairs portfolio is disappearing from the landscape. “Scrapping the Commissioner for Jobs and Social Rights […] sends entirely the wrong message to working people about the priorities of the new Commission”, says Esther Lynch, who calls on Ursula von der Leyen “to urgently reinstate the Commission portfolio for Quality Jobs and Social Rights” (see ETUC press release). The Jobs and Social Rights Commissioner portfolio, previously held by Nicolas Schmit, is being replaced, in part at least, by the portfolio held by Vice-President Roxana Mînzatu, who was formerly Romania’s Minister of European Funds. The socialist becomes the Commissioner for “People, Skills and Preparedness”. Despite this job title seeming to be one dreamt up by a firm of consultants, she will in effect be taking over Commissioner Schmit’s remit in the area of labour law. Her mission letter is consistent with the roadmap put forward by Ursula von der Leyen ahead of her re-election (see IR Notes 236). In the second sentence of this letter, the Commissioner is informed that she will also be responsible for “the portfolio of skills and education, quality jobs and social rights.” The emphasis is on skills and training workers. Another of her tasks will be to “embed a new culture of preparedness that can help people to adapt to change and to risks that exist in our society.” However, she will also be expected to strengthen the European Pillar of Social Rights via a new action plan and to develop a “Quality Jobs Roadmap” in order to ensure a “just transition for all”. Her missions also include: a new Pact for Social Dialogue with European social partners (early 2025); a European strategy to address the root causes of poverty and an “Affordable Housing Plan”. She is also requested to “focus” on the impact of digitalisation in the world of work, which will include an initiative on algorithmic management, and introducing the right to disconnect. In addition, she will have to work on “improving” Europe’s approach to occupational health and safety, to ensure healthier workplaces and mental health at work.

A research institute for employers : On 1 October, thirteen sectoral employers’ organisations representing members at European and national level, created the European Employers’ Institute (EEI). The EEI seeks to be the employers’ equivalent of the European Trade Union Institute (ETUI), and will serve as “a central hub for cross-industry research on topics of common interest to employers, providing robust data and insights to inform EU policy decisions on social and employment matters.” (see press release).

Extractive industries : On 23 September, European social partners in the extractive industries adopted Joint recommendations for the next European Mandate (2024-2029) to defend their activities by strongly calling for actions to avoid deindustrialisation in Europe and ensuring good quality jobs (see IndustriAll Europe press release).

• Climate change : The flooding caused by Storm Boris has prompted several trade unions to call for greater protection for workers. At the present time, employees who notify their employer that they are unable to reach their place of work as a result of natural disasters – either because it is impossible to travel or they have to stay at home to protect their property – are still entitled to be paid (see practical guide Arbeiten Im Klimawandel published by the Chamber of Labour). The Vienna Regional High Court has also ruled in favour of continuing to pay employees who provide assistance to their family in an emergency situation where their immediate intervention is required (see article in Der Standard). For its part, the ÖGB confederation points out that members of its various federations are entitled to claim compensation from its “disaster fund”, to cover property damage suffered during severe weather events. They are entitled to claim 250 euros where the damage is valued at up to 4,000 euros, and 400 euros for higher amounts (see for example, PRO-GE’s information sheet). The Vida federation has put forward two demands, calling for all employees to remain on full pay during emergency operations, when they are either: 1/ providing assistance to their families, neighbours or other persons affected, at the time of natural disasters; or 2/providing support to the emergency services, on a voluntary basis, by taking part in such operations. At the present time, they continue to be paid only if the situations in question meet “major disaster” criteria, i.e. an event that mobilises more than 100 people for at least eight hours. According to the PRO-GE federation, the cost of paying these employees’ wages could be met from the emergency fund, which was recently boosted to the sum of 1 billion euros by the federal government, in response to the storm (see press release). In light of the growing number of climate change-related natural disasters, these proposals seek to provide better protection and financial security for workers and volunteers who find themselves caught up in crisis situations.

Discrimination on grounds of pregnancy : According to a report commissioned by the Ministry of Social Affairs and Health, one in four pregnant women suffers discrimination related to their pregnancy (see press release). The survey reveals that nearly half of all pregnant women are having to deal with negative situations, such as the fear of losing their job. Termination of fixed-term employment contracts is the most common consequence of this discrimination. According to the survey, just 1% of those questioned had reported their case to an anonymous workplace discrimination reporting channel. One in ten people had reported a case of discrimination to a trade union. Although there is greater awareness of such reporting channels in 2023 than there was in 2012, victims’ confidence in them has declined, indicating that the fear of repercussions has increased. For the first time, this report offers comprehensive data on this subject, thereby highlighting the need for greater protection for the employment rights of pregnant women, says the ministry.

Misuse of traineeships : The Dutch labour inspectorate has ordered the airline Transavia to pay a fine of 46,000 euros for breaching the law on minimum wages and periods of leave (see article on NOS website and press release issued by the Ministry of Social Affairs). Between February and June 2022, 60 students from five vocational training colleges (MBO) held the same responsibilities, worked the same hours and carried out identical tasks to those performed by commercial flight crew. The labour inspectorate’s intervention forced Transavia to retroactively pay these students an equivalent remuneration to that earned by the company’s permanent employees.

Unfair competition : On 20 September, the Siemens Energy EWC and the IndustriAll Europe trade union federation published a Joint appeal, expressing their concern that the European wind industry is facing aggressive competition from Chinese manufacturers. “We expect politicians to stand up for us, the entire wind value chain and for our jobs”, says the EWC’s Chairwoman, Nadine Florian, emphatically.

Interpreting and AI : After becoming aware of the first attempts to use AI to perform interpreting at a European Works Council meeting, the French branch of the International Association of Conference Interpreters (AIIC), the Association française des interprètes de conférence indépendants (AFICI) and the Société française des traducteurs (SFT) jointly signed an open letter (EN) on 22 April, and sent it to various authorities, to alert them to “the risks posed in the short term, by developments in the field of artificial intelligence, to the quality, linguistic reliability and confidentiality of international exchanges”. Subsequently, on 13 June, the SFT published a well-argued statement on the same issues.

Support with parenthood : On 16 September, the German bank ING-DiBa and the Verdi service industries trade union announced an agreement regarding their next collective bargaining agreement, which will apply to around 5,000 employees and enter into force in 2025 (see press release). Innovative measures in this agreement include a four-week “family start-up time”, to be introduced for the second parent at the time of a child’s birth, or when they adopt a child or take on the role of guardian. This initiative goes some way towards meeting the requirements of European directive 2019/1158, which seeks to bring about an equitable distribution of family responsibilities. The German federal government is currently working on the task of transposing this law. Kevin Voss, secretary of Verdi’s banking sector, commented: “It’s essential for young families to spend as much time together as possible when the family unit is expanding.” He believes this is “excellent news for the company’s future parents and demonstrates our commitment to corporate social responsibility” (see press release).

The European Foundation for the Improvement of Living and Working Conditions (Eurofound), of which IR Share is a member, has published an article on the effects of the #MeToo movement, which has led to changes in the law in several countries. Based on information gathered from Eurofound’s network of European correspondents, researcher Sara Riso reviews the various approaches taken in Member States to combat sexual harassment and highlights recent policy changes. She notes that national legislations are increasingly adapting to the rapid evolution of social media and to the growing prevalence of online activities in the workplace, which may constitute a fertile breeding ground for sexual harassment (see full report).