IR Notes

The elections held on 25 January in Greece have brought to power the Coalition of the Radical Left , SYRIZA (36.4% of votes), with an almost 10-point lead over the second party, the neo-liberal New Democracy grouping, which had been in power since 2012 (27.81%). This victory of the anti-memorandum movement delivered by SYRIZA and its 40 year-old leader, Alexis Tsipras (whose age in itself constitutes a novelty for the Greek political establishment), is attributed to numerous factors, in particular the Greeks’ weariness with the austerity policies, the cuts in salaries and pensions, the tax rises, the disappearance of the welfare state and the explosion in unemployment. Similarly, the second place obtained by New Democracy can largely be explained, say political analysts, by the fact that the electoral campaign of Antonis Samaras, the New Democracy leader, developed the “shock doctrine”, claiming that the arrival in power of SYRIZA would mean Greece’s exit from the eurozone, falling bank deposits and bankruptcy. These arguments apparently did not convince the electorate. The Greeks, as has been shown by numerous opinion polls conducted in recent years, remain profoundly pro-European. The most worrying phenomenon to come out of this election is not the victory of the radical left, but the fact that the Golden Dawn neo-Nazi party consolidated its strength and secured third place at the polls with 6.28% of votes. This is a substantial result for a party, a large number of whose officials and senior figures are currently in custody and under investigation for extremely serious crimes, following the assassination of a left-wing rapper in September 2013 and their involvement in organised crime and racist attacks against immigrants. In the context of industrial relations, SYRIZA has announced an increase in the minimum wage from 586 to 751 euros and has said, without defining this commitment in any detail, that it will undo the previous reforms relating to collective bargaining and trade unions.

• Easing in monetary policy and of the stability pact: The new direction of the European Commission and no doubt also the fear that the reaction of the Greek people against austerity could spread have led to two decisions in quick succession intended to make more flexible the dogma of European economic policy founded on improving the soundness of public accounts. Thus, the European Commission on 13 January presented a communication (in English) on a more flexible application of the rules of the stability pact, in particular to take account of the positive effects of the reforms undertaken in order to calculate compliance with the 3% deficit reference value (see press release). Then, on 22 January, the European Central Bank announced a vast asset purchase programme (see press release). In the view of the European Trade Union Confederation (ETUC), this measure “is necessary, but will not be enough to stimulate growth or create jobs” (see press release). For the DGB, this decision has come rather late and will not have much impact (see DGB press release , in German). “Monetary policy has reached its limits and it is time to launch a massive programme of investments,” explained Andreas Botsch, advisor to the DGB secretary general, Reiner Hoffman.


• Assistance from the Globalisation Adjustment Fund: The European Commission on 21 January 2015 proposed to pay 1.3 million euros to Belgium from the European Globalisation Adjustment Fund to help 257 former workers of Saint-Gobain Sekurit Benelux to find new jobs (see press release, in English) and also to Poland by way of support for 50 former workers of Zakłady Chemiczne Zachem and its suppliers and downstream producers (see press release, in English).

• Graphical industries: The social partners in the graphical industries (685,000 employees in the EU), with the support of the European Commission, have published a report containing the findings of their project entitled “Future skills of the graphical industry: identifying and promoting best practices in Europe”. The document includes examples of good practices, recommendations for the different players and action plans (the report also exists in Italian).


• Cleaning industry: The social partners in the cleaning industry on 28 November 2014 adopted a joint position regarding the European Commission proposal to establish a European platform to combat undeclared work. In particular, the partners argue for their direct involvement in this platform.

• Ruling on false self-employment: The European Court of Justice has delivered a judgement on the false self-employed (CJEU 4 December 2014, case C‑413/13, FNV Kunsten Informatie en Media). The case concerns a collective agreement signed between social partners in the Netherlands covering substitute members of an orchestra. This document set the minimum fees not only for the substitute musicians it employs, but also for those substitutes who exercise their activity on the basis of a works or service contract. One of its terms provided for the self-employed substitutes to be paid at least the fees negotiated for the employed substitutes, plus 16%. However, the competition authority in the Netherlands stated that this provision governing “undertakings”, that is to say self-employed substitutes, did not qualify for the derogation granted to collective agreements, excluding them from the prohibition of “cartels” envisaged by the laws on competition. The Court of Justice in fact held that a trade union which negotiates on behalf of service providers who are its members “does not act as a trade union association and therefore as a social partner, but, in reality, acts as an association of undertakings”. However, and this is the point at which the judgement becomes interesting, the exclusion granted to collective agreements may be upheld “if the service providers (…) are in fact ‘false self-employed’, that is to say, service providers in a situation comparable to that of employees”. The Court invites the national courts to ascertain whether, apart from the legal nature of their works or service contract, self-employed workers are not “in a relationship of subordination (…) during the contractual relationship, so that they enjoy more independence and flexibility than employees who perform the same activity, as regards the determination of the working hours, the place and manner of performing the tasks assigned (…)”. The court concludes that “a provision of a collective labour agreement, in so far as it sets minimum fees for service providers who are ‘false self-employed’, cannot, by reason of its nature and purpose, be subject to the scope of Article 101(1) TFEU” (prohibiting cartels).

• Modernisation of social dialogue in companies: On 22 January 2015, the social partners recorded the failure of their negotiations on modernising social dialogue. One of the principal sticking points concerned the establishment of worker representation for small businesses, that is to say those with fewer than 11 employees (the threshold at which it becomes a requirement to hold elections of staff delegates), and those in which elections have not taken place (in the absence of candidates or because of insufficient participation), thereby depriving the employees of small enterprises of their right of representation and the right of information and consultation. The government intends to open talks with the social partners to determine the need for legislation on this subject to be drafted.

• Separate agreements between the government and the social partners: In presenting its budget for 2015, which aims to improve the competitiveness of the Luxembourg economy and improve the public finances, the government incurred the wrath of the trade unions, which threatened to call a general strike. Finally, an agreement was signed with the trade union confederations on 28 November 2014 to mitigate the impact of certain measures. This “change of heart” did not go down well with the employers, which consequently also opened discussions with the government. As a result, an agreement was signed on 14 January 2015 between the government and the employers’ organisation, Union des entreprises luxembourgeoises, “with the aim of strengthening companies’ competitiveness and to give them financial, economic and social predictability in order to help reduce unemployment and boost economic growth”. The employers secured a commitment from the government that it would not increase social security payments or taxation during its term in office, as well as an undertaking to open tripartite discussions on the organisation of working time and the promotion of a better work-life balance. The agreement confirms “the principle that wage policy must be linked to the development of productivity”. In return, the employers undertake to intensify their cooperation with the public employment service (Adem), in particular with a view to enhancing qualifications.

• Judgement on the expiry of collective agreements: The supreme court has announced that it has reached a decision, as yet unpublished, on an important measure of the 2012 reform of the labour market. The reform had put an end to the continued application of collective agreements which, until then, had remained valid until a new collective agreement was concluded (ultractividad). The reform set a time limit on this continued applicability: a collective agreement which had expired was to become invalid after one year. However, the court has announced that a majority of the judges believe that the rights granted by a collective agreement which has become invalid form part of an employee’s individual employment contract. As a consequence, the employers will have to respect the provisions of the collective agreement which has expired, unless they choose to review some or all of the provisions by recourse to the procedure for modifying employment contracts (link to source, in Spanish).


• Minimum wage: By decree on 26 December 2014, the minimum wage was increased, by 0.50% as of 1 January 2015 to a level of 9,080.40 euros per year or 648.60 euros per month (over 14 months), for a full-time worker. In the case of companies which pay salaries over twelve months (which is frequently the case with multinationals), the minimum monthly amount is 756.70 euros.


• Health and safety: A decree dated 19 December 2014 has amended the system of worker representation with regard to health and safety in the Spanish public administration, notably by reducing the number of employee representatives responsible for this issue.

• Club Méditerranée: The European works council was convened on 20 January 2015 to attend a presentation of the plans of the future majority shareholder, the Chinese group Fosun. On this occasion, the EWC secured the organisation of training on the various forms of subcontracting in Europe and the opening of discussions with management on this question.


• Lafarge/Holcim: Three international trade union federations – BWI, EFBWW and IndustriAll Global Union – on 15 January 2015 launched a global campaign against the behaviour of the two cement groups Lafarge and Holcim, which are in the process of merging (see IndustriAll press release). At the meeting on 21 January of Lafarge’s EWC – which is convening once a month as part of the merger process – the management stated that it would arrange for consultations with the EWC and the buyers of the parts of the business being sold, once their identity was known. The EWC has demanded that the industrial conditions affecting the employees of the divested companies (in particular a guarantee to maintain their jobs for three years) should be the subject of an agreement between management, the new owner and the EWC. In other respects, according to Jean-Michel Gillet, the EFBWW coordinator, Lafarge’s management was willing to begin exchanging ideas on establishing a future Lafarge Holcim EWC and a future international framework agreement. The EFBWW for its part is continuing to coordinate the activities of Lafarge and Holcim’s EWCs by way of one meeting per month.


• Solvay: The management of the Belgian chemical group Solvay (14,500 employees) and its European works council have entered discussions with a view to concluding a charter establishing relations between the European body and the works councils at local level. According to Albert Kruft (IG BCE), secretary of the EWC, the aim is to sign the charter at the EWC’s annual meeting next June. One of the objectives is to reinforce the legitimacy of the opinions formed by the EWC thanks to the information exchanged with the national bodies, while at the same time improving the way the national bodies are informed about the group’s situation.
  > The agreement of 13 June 2014 concerning the EWC of the Solvay group is available on IR Share.


• Training programme for managers responsible for EWCs: The French association Astrées, IR Share (editor of IR Notes) and the Dutch consultants FNV Formaat have secured funding from the European Commission to develop a European project whose purpose is to organise three seminars for managers responsible for European works councils around three subject areas: definition of transnational issues (Paris, April 2015); coordination of European and national-level information and consultation procedures (Amsterdam, June 2015); management of confidential information (Brussels, October 2015). The objective is subsequently to produce recommendations which will facilitate social dialogue on these three sensitive issues (for information contact: c.teissier@astrees.org).

Total: The French oil and gas company Total on 22 January 2015 signed its first global agreement, on corporate social responsibility, with the IndustriALL Global Union trade union federation (see press release of the Total group and of IndustriAll. Besides the issues mentioned in the press releases, the global agreement in particular provides for: 1/ Accountability of the supply chain: the group expects its subcontractors and suppliers to respect the fundamental social rights outlined in the agreement and to ensure that “their own contractors respect principles equivalent to the above”. These principles will be “communicated and promoted” among these companies and, “if the principles are not respected”, Total “will take the necessary action, which may go as far as terminating the contract”. The same applies should any contractor company patently fail to observe the rules with regard to safety, health or protection of the environment. 2/ As regards health and safety at the workplace, the parties provide that “no project development or product launch may be undertaken without a risk assessment covering the entire life of the project or product”. Furthermore, when entities do not have an official joint body where information regarding health and safety can be exchanged, the parties “agree on the need to facilitate discussions between management and employee representatives in order to determine a framework for ongoing dialogue on these subjects.” 3/ Under a life insurance scheme provided by the agreement, in the event of an employee’s death, his (freely chosen) beneficiaries will receive an amount equivalent to two years’ salary. 
4/ With regard to organisational changes, the agreement states that “sales contracts include previously negotiated commitments pertaining to the resulting social consequences for its employees”.

• Telefónica: The management of the Spanish telecoms group Telefónica (120,000 employees) and the UNI Global Union international trade union federation and its Spanish affiliates CCOO and UGT have renewed the international framework agreement first signed in 2000. In the text, Telefónica undertakes to apply the agreement to its suppliers and subcontractors and to ensure that human rights are respected along the entire supply chain (UNI Global Union press release).

• Employment trends in 2015: The International Labour Organisation (ILO) has published its report on the World employment and social outlook – Trends 2015, which contains predictions relating to unemployment levels throughout the world and explains the factors underlying these trends, including widening income inequalities and the decline in the wage share. The report points out that more than 201 million people were unemployed in 2014 around the world, over 31 million more than before the start of the global crisis. Global unemployment is expected to increase by 3 million in 2015 and by a further 8 million in the following four years. One chapter deals with the risk of social unrest, in particular in the regions where youth unemployment is high.


• Industrial relations and working conditions in 2013: The Foundation for the Improvement of Living and Working Conditions has published its annual report on industrial relations and working conditions. This report, which serves as a benchmark, outlines the major trends in this area at European Union level, as well as in the member states.

Starting essentially from the early 2000s, multinational companies began to negotiate elements of their industrial policy for group-wide application. This was done either at European level, if they were predominantly based in Europe, often in conjunction with european trade union federations and occasionally also with European works councils, or at world level, with the involvement of global trade union federations. Find out more from the European Industrial Relations Dictionary (in English). You can also find such agreements on the IR Share or in the European Commission’s database of transnational company agreements.