IR Notes

As mentioned in recent communications on the Clean Industrial Deal, its sector-specific implementations (carmaking, steel, etc.) and on the Union of Skills (see IR Notes 248), on 1 April, the European Commission put forward a proposal to amend Regulation (EU) 2021/691 on the European Globalisation Adjustment Fund for Displaced Workers (EGF). This proposal for a regulation seeks to extend the scope of EGF aid, so that it no longer applies solely to workers who have already been made redundant, but also to “workers at risk of imminent job displacement”, so that they can acquire the skills needed to help them to redeploy to other industries or change jobs (see press release). It would apply to workers “whose employment contract or relationship is expected to be ended by redundancy as of the date on which the employer notifies the competent public authority in writing of the projected collective redundancies”, regardless of the type or duration of their employment relationship. For a State to be eligible to seek assistance from the Fund, at least 200 workers must face an imminent risk of losing their job. As is already the case, to receive EGF aid, companies will have to apply for it via the Member State concerned. The Commission also wants to speed up the processing of funding applications by imposing processing deadlines on businesses, States and on itself. This means that the employee representatives of the companies concerned, and the trade unions supporting them, will have to familiarise themselves with these new rules. Furthermore, whereas the Parliament and Council currently have to examine and approve each application for aid individually, under the new arrangements, they would approve the EGF’s budget once a year, and the Commission would allocate this funding to States in accordance with their requirements. Since 2007, the EGF has intervened in 182 cases, and spent 700 million euros on helping more than 170,000 workers in 20 States. The EGF’s annual budget for the period 2021-2027 is 35 million euros but this is currently under-utilised (see European Globalisation Adjustment Fund, the page dedicated to the EGF on the Commission’s website and the list of amounts awarded).
The Commission has also put forward a proposal amending the regulation establishing the European Social Fund + (ESF+) (see European Social Fund), which is the EU’s main instrument for investing in people. The new rules will enable States to invest more easily in the skills required for strategic sectors, such as defence, the ecological transition and the car industry, and for regions affected by Russia’s unjustified invasion of Ukraine.

Sustainability and due diligence : On 26 March, the Council adopted its negotiating position for embarking on a trilogue with the European Parliament, for the purpose of revising the Sustainability Reporting (CSRD) and Due Diligence directives. The Polish presidency has given this proposal absolute priority. The Member States have supported the Commission’s proposal for: 1/ a two-year deferral of the entry into force of the obligations laid down by the CSRD directive in respect of large undertakings that have not yet started to implement them, and of listed SME; 2/ a one-year deferral of the transposition deadline and the first phase of application (covering the largest undertakings) of the Due Diligence directive. The aim is to reach a “swift agreement between the co-legislators”, which will leave them time to agree on substantive changes to both directives (see press release) Two days earlier, the European Trade Union Confederation (ETUC) and five of its federations (EFBWW, EFFAT, IndustriAll Europe, ETF and EPSU) had published a joint press release urging MEPs to leave the CSRD and Due Diligence directives as they are. They call on MEPs to “reject this disastrous package and ensure that the core objectives” of these directives and “the protections provided therein are safeguarded from this deregulation agenda” (see press release).

Oversight of traineeships : On 18 March, MEP Alicia Homs Ginel (S&D) presented her draft report on the proposal for a directive on improving the working conditions of trainees to Parliament’s Committee on Employment and Social Affairs. Her text, which will be debated once all of the amendments have been filed, defines a traineeship as a “period of entry-level work”, which is “limited in time” and aimed at providing “practical and professional skills through significant training to facilitate the transition from education to stable employment, or accessing a profession, based on a written contract between the trainee and the traineeship provider, which is paid in accordance with the Directive (EU) 2022/2041” (on adequate minimum wages). Member States’ representatives, for their part, will discuss this proposal for a directive on 3 April, based on a new compromise proposal submitted on 28 March by the Polish presidency of the Council of the EU.

Tripartite Social Summit : On 19 March, European social partners met with representatives of the Council and the European Commission, on the eve of the European Council, within the framework of the Tripartite Social Summit, which is a twice-yearly forum for dialogue at the highest level, held on the day before the Council meeting. The partners delivered their key messages: BusinessEurope called for a burden reduction programme and lower energy prices, while the European Trade Union Confederation wanted to boost domestic demand through higher wages and investments, in order to “provide immediate protection against job losses”. The social partners issued a joint statement on the geopolitical context, which was ignored in the Pact for Social Dialogue signed on 5 March (see IR Notes 248), calling on the European institutions and Member States “to keep social partners at both European and national level fully involved in all relevant deliberations following the geopolitical uncertainties and transformation processes.” (see press release).

• Restructuring: On 26 March, the Commission proposed mobilising 8 million euros from the European Globalisation Adjustment Fund (EGF) to support 2,400 workers who were dismissed following the bankruptcy of Belgian coach manufacturer Van Hool (see press release).

Due diligence : On 20 March, the Uni Global Union federation, in association with IndustriALL Global Union, the DGB trade union federation and the Friedrich Ebert Fondation, announced the creation of a Competence Centre for Human Rights Due Diligence, in the form of a foundation based in the Netherlands (see DGB and UNI Global Union press releases). This centre will pursue three key objectives: strengthening trade unions’ capacities, supporting strategic interventions and advocating for implementation of due diligence legislation – in particular, the EU Due Diligence Directive (see IR Notes 226) and the German act on corporate due diligence obligations in supply chains. The centre is due to be operational by the end of 2025.

Reconciling work and retirement : This year, 1 April marks the entry into force of the final phase of the pension reforms (decree-law 11/2024 of 23 December 2024) concluded via an agreement between the government, employers and trade unions. These reforms introduce new measures concerning access to retirement pension, including a dual subsidised rate for people who concurrently draw a gradual and a deferred retirement pension, and changes in access to drawing a partial retirement pension. 1/ Gradual retirement pension: previously, workers needed to have paid at least 36 years and 6 months’ worth of contributions in order to qualify for this. However, this option has now been expanded to include people with shorter careers. 2/ Deferred retirement pension: the rate of increase has been raised to 2% every six months, i.e. 4% per year (compared to the previous rate of 2%). These increases can now also apply concurrently with a gradual retirement pension, thereby offering a dual remuneration, whereas previously, the two schemes were incompatible. 3/ Partial retirement pension: as of today, it will be possible to retire three years before the statutory retirement age (compared to two years, previously). In addition, the employee taking the retired person’s place (who would usually be on a temporary contract) will now have to be on a permanent, full-time contract of employment.

Representation of women on management bodies : On 28 March, the government passed a draft law setting a quantified gender balance target for directors of listed companies, for the purposes of transposing Directive 2022/2381 of 23 November 2022. From now on, listed companies with their registered office in Luxembourg will have to ensure that by 30 June 2026 at the latest, members of the under-represented sex hold at least 33% of all of their directorships, whether executive or non-executive (see press release). On 31 March, the government also adopted a National action plan for gender equality, which includes a number of initiatives relating to the world of work (see press release).

New agreement signed : On 30 October 2024, the management of Nokia and a special negotiating body signed a European Works Council agreement replacing the EWC that had previously operated on the basis of the directive’s subsidiary requirements. The agreement provides for the creation of a select committee made up of 5 members, but no secretary. The negotiators wanted to prevent any special relationship developing between management and one of their number. Two annual meetings are provided for, together with other meetings in exceptional circumstances. To qualify for this description, a plan must have a “significant” impact, resulting either from collective redundancies or from substantial changes affecting at least 100 employees in at least two Member States. In terms of resources, the EWC is entitled to use the services of experts paid for by management, and of a trade union coordinator, though management will not pay for the latter. In view of the automatic translation and generative AI tools now available, the agreement stipulates that management will pay translation costs only in exceptional circumstances. The text also regulates the disclosure of confidential information. “There are still some gaps in the agreement”, explains Linas Maknavicius, an EWC member who belongs to France’s CFE-CGC trade union, “but our social dialogue is quite good, and we’ve been able to set up a working group on sustainability reporting (ESG), even though this is not provided for in the agreement. This working group has been able to provide feedback on the sustainability element of Nokia’s 2024 annual report.”

Diversity and inclusion : On 26 March the Veolia group and the European Public Service Union (EPSU) signed a European Diversity and Inclusion Framework Agreement. This text contains a number of binding commitments on equal treatment, anti-discrimination policies and support for workers facing domestic or workplace violence. It follows on from the “letter of commitment” signed on 16 June 2021 by the group’s HRD and the EWC on “changes in the business lines and the diversity and inclusion policy” of the group. In the event of workplace or domestic violence, the agreement grants “leave of absence with full pay to enable employees who are victims of violence and harassment at work, and who so request it, to take the necessary steps, especially administrative formalities such as filing a complaint”. The signatories grant an employee the right “to refuse a move to a country where their rights would be further restricted or threatened because of their sexual and emotional orientation and/or their membership of the LGBTIQ+ community”. Paola Panzeri, Deputy General Secretary of the European Public Service Union (EPSU) comments as follows (see A question for…): “Even though some of the rights granted by the agreement apply to only one person or just a few people within the group, such as the employee’s right to take paid leave in connection with domestic violence, to reject a move to a country that is hostile to the LGBQI+ community or the right for an employee to have their chosen name or adopted family name used in the company’s internal communications, this will already be a very positive change, as these are genuine rights, and they can make a big difference to these people”. An oversight committee is being set up and will have access to a set of key performance indicators (KPI) (see EPSU press release).

Dispute settled : On 28 March, the Uni Global Union federation issued a press release concerning the settlement of a dispute between the management of BNP Paribas Taiwan and one its employees, who had sent a number of emails to his colleagues with a view to forming a trade union. The Taiwan Federation of Financial Unions (TFFU), which is a trade union affiliated to UNI, provided its support to the employee throughout the process and requested UNI Global Union’s intervention through the global agreement. UNI Global Union is pleased that the dispute has been resolved, thanks to the global agreement (see press release).

Platform workers’ health : Following a formal request from the CGT trade union confederation to conduct a risk assessment, the French National Agency for Food, Environmental and Occupational Health & Safety (ANSES) examined the working conditions of the 71,000 self-employed delivery riders and drivers working for platforms in France, most of whom spend their time delivering food, and published an opinion on 26 March (see also report). The document analyses the short, medium and long-term effects of the algorithmic management system used by platforms. In addition to the short-term risks posed by traffic accidents and musculoskeletal disorders, the study also identifies harm caused to these workers’ mental health (stress, fatigue, burn-out), linked to the constant pressure of notifications, isolation and the lack of stable working relationships. In the longer term, ANSES notes that they are likely to suffer from sleep disorders and from metabolic, respiratory or cardio-vascular diseases linked to their non-standard working hours and their working environment (urban pollution, noise, etc.). Among other things, ANSES recommends that these self-employed workers should be subject to the Employment Code, as it would guarantee levels of health and safety protection equivalent to those enjoyed by employees.

Telework and mental health : On 27 March, the study and research department of France’s Ministry of Labour published a study based on a review of literature focusing on the risks associated with telework. This practice, which applied to 26% of employees in 2023, identifies three main categories of risk: a distancing of social relationships, an intensification of work and difficulties in managing the separation of employees’ work and personal lives.

Keeping older workers in the labour force : On 31 March, the European Foundation for the Improvement of Living and Working Conditions (Eurofound) published a study entitled Keeping older workers in the labour force. The report, which analyses national policies designed to keep these older workers in employment, and the responses given by social partners, notes that caring facilities and social support are vital for older workers, and especially women, many of whom exit the labour market prematurely in order to look after family members.