IR Notes

On 8 March, the European Commission presented a proposal for a directive concerning a targeted revision of directive 96/71 on the posting of workers, and a communication that marks the launch of a public consultation on the “European Pillar of Social Rights”. The revision of the directive concerns three points: 1) the remuneration of posted workers will be the remuneration applicable to employees in the host country, which goes beyond simply applying the minimum. For example, if it is obligatory for locally-hired employees to benefit from a meal allowance, this must also be paid to posted employees. This appears to be a move forward, but this undertaking merely restates a decision of the Court of Justice. Another measure, which is still rather unclear, specifies that Member States will be able to make provision so that subcontractors must give their employees the same remuneration as the main contractor. 2) Temporary workers posted to another country must be employed on the same terms and conditions as temporary workers in the host country, i.e. there must not be any discrimination against them in comparison with employees of user enterprises. In other words, it involves making the rules of the directive on temporary work take precedence over the rules of directive 96/71.  3) The duration of the posting will be limited, as is already the case for the coordination of social security systems, to 24 months in order to prevent misuse of posting. This is a token measure which in practice is ineffective because the average duration of postings is four months, and fraudulent practices will make it possible to play with this limit. This proposal (see the press release from the Commission and its question and answer press release) remains very unadventurous in relation to the problems caused by the misuse of posting. It appears to satisfy neither the European Trade Union Confederation (see press release) nor some employer organisations, as a press release (in French) from the Belgian federation of construction industry shows. As for the European Pillar of Social Rights, the objective appears to be to revise the principles of the European social model and to check that they are still relevant in the 21st century (see press release and question and answer press release). The communication specifies two other objectives of the public consultation, which is open until the end of the year: firstly, to reflect on new trends in work patterns and societies, particularly the impact of new technologies, and secondly to discuss the scope and content of this pillar, as well as its role as part of the social dimension of the EMU. The “pillar” would be adopted first of all in the eurozone and open to other countries. Here again, the ETUC is doubtful (see press release). Between a proposal that barely goes beyond the current situation and the early stage of constructing a pillar of social rights, it is not sure that the triple A social rating of the Union has become clearly evident yet to its citizens.

• Inland navigation: The European Commission on 18 February adopted a proposal for a Directive on the recognition of professional qualifications in inland navigation (see press release). The text was welcomed by the European Transport Workers’ Federation (ETF) because it will facilitate labour mobility in the sector, enhance its attractiveness and put an end to illegal practices (see press release).

Analysis of economic and social policies in the member states: The European Commission on 26 February published its annual analysis of the challenges facing the EU. The analysis is carried out for each member state (see the list of “country reports“). It aims “to monitor policy reforms and to point early on to challenges that member states should address”. The Commission thus ensures that they have taken into account the “annual growth survey 2016” and the “recommendation for the euro area“, which set out the priorities at European level. The next stage will be the adoption by the member states of their national programmes in April, which will lead to the formulation in late spring of the Commission’s country-specific recommendations. For its part, the Parliament on 25 February adopted a resolution that welcomes the fact that the annual growth survey underlines the need to pay more attention to social fairness in the context of the new national stability and reform programmes, adding three employment indicators (activity rate, youth unemployment and long-term unemployment) to the macroeconomic imbalance procedure.

• Reform of the European employment services’ portal: The European Parliament on 25 February adopted, by a very large majority, the proposal for a regulation on a European network of Employment Services, workers’ access to mobility services and the further integration of labour markets. The text has still to be formally adopted by the Council before taking effect.

• Application of the insolvency directive to seamen: The European Court of Justice has issued a ruling stating that Greek seamen resident in Greece and hired by a company having its registered seat in a third country but its actual head office in Greece are eligible for the protection conferred by EU law in the event of the company becoming insolvent (CJEU 25 February 2016, C-292/14, Elliniko Dimosio v. Stroumpoulis et al). In this case, the court thus made the directive applicable to employees from the EU working on a vessel flying a flag of convenience (see press release).


• Refusal of social security benefits to EU migrants: Having affirmed 1/ that a member state can exclude EU citizens who have come to that country to find work from certain non-contributory social benefits (CJEU 15 September 2015, case C-67/14, Alimanovic, see press release) ; and 2/ that economically inactive EU citizens who move to another member country solely in order to benefit from social assistance can be excluded from certain social benefits (CJEU 11 November 2014, case C-333/13, Dano, see press release), the European Court of Justice has issued a new ruling that authorises a member state to refuse certain social benefits (such as German subsistence benefits for jobseekers and their children) to nationals of other member states during the first three months of their stay (CJEU 25 February 2016, case C-299/14, Vestische Arbeit Jobcenter Kreis Recklinghausen v. Jovanna García-Nieto, see press release).

Signature of a competitiveness pact: The social partners have just signed an agreement (competitiveness pact), secured after ten months of frequently-interrupted negotiations, under pressure from the prime minister. To restore the country’s competitiveness, the latter had threatened to use legislation to impose drastic measures, such as leave and wage cuts and an increase in social security contributions. The agreement obtained and approved by the government proposes to improve companies’ competitiveness by imposing a wage freeze until 2017, a 24-hour increase in annual working time, a 30% reduction in holiday pay in the public sector (including the health service system and local authorities), an increase in social security contributions for employees of more than 2% and an equivalent reduction in employer contributions. The agreement saves the Finnish collective bargaining system (see press release from the trade union SAK, in English).

• Opposition to Labour Code reform plans: The government has decided to postpone until 24 March the adoption of the bill aimed at reforming labour law in order to allow time for discussion with the social partners. The unions are divided: some, such as the CGT, are calling for the text to be withdrawn, judging it to be too closely aligned with employers’ demands; others, including the CFDT, wish to use their influence to amend the wording. Several trade union and student organisations have called for a day of action on 9 and 31 March.

• IG Metall trade union seeks across-the-board pay increase of 5%: The executive of the German metalworkers’ and engineering union on 29 February officially adopted its pay claim ahead of the negotiation of a new collective bargaining agreement. It is calling for an increase of 5% for the next 12 months (see press release).

• Difficulties in negotiations on working hours: The tripartite meeting between the government and the social partners on 18 February ended in disagreement on a reform of working hours. The employers wish to have greater flexibility to extend the so-called reference period, during which working hours can be varied, from one month to four. This demand is unacceptable to the trade unions, which are calling for a reduction in working hours by introducing a sixth week of paid leave. The government must submit a draft document for consultation by the social partners on 21 March.

McBride: The management of the British McBride group, the leading supplier of retailer own-brand household and personal care goods (4,195 employees including 245 outside the EU), on 26 January 2016, signed an agreement to set up a European works council. The signatories say it is “impossible” to define a list of subjects for consultation “as this will depend on the circumstances which may change over time”. However, “whatever subjects are chosen, they need to be relevant, clearly defined and geared to the needs of the organisation and its employees”. As regards the EWC composition, the signatories state that no employee responsible for human resources or having a management function can be a member of the employee representative group.

• Brink’s: In a resolution adopted on 23 February, the members of the European works council of the valuables transportation group Brink’s “once again find that the management of Brink’s persist in their disregard for social dialogue” after the group decided to close its Irish cash-in-transit operations “without even waiting for the recommendations of the expert consultant engaged by the European works council on 27 August 2015”.


• Emerson: Available as a download from the IR share website is the decision taken on 19 January 2016 by the Central Arbitration Committee (CAC) – the British statutory body in charge of disputes relating to European works councils. It concerns the case brought by the EWC of the automotive supplier Emerson (see agreement) against the management of the group, which has 22,000 employees in the EU. The CAC found that there had been a breach of the information and consultation rules following the announcement of a major restructuring.


• General Electric: The interim representative structure (IRS), formed to represent employees of the former Alstom activities acquired by General Electric, on 10 February suspended talks with management concerning the restructuring of the former Alstom sectors. The IRS noted “that that first steps in implementing the plans have already been taken by the management” in several countries, which, according to the body, is “in complete breach of the agreement that was signed” with management (see IRS press release, in French, and IndustriAll press release).


• LafargeHolcim: In a press release dated 19 February, the French trade union FNCB-CFDT and the European Federation of Building and Woodworkers (EFBWW) warned about the employment situation at LafargeHolcim. The two organisations recalled that the Lafarge and Holcim groups “had announced that the production sites would not be affected by the merger”. In fact, “successive procedures to scale down activities are taking place” in several countries, and a shared service centre is due to be created in Slovakia. According to the European works councils of both groups, “hundreds of jobs are going to be put on the line in the coming months”. However, while the management has agreed to open an information and consultation procedure on the shared service centre, “it refuses to do so on the reductions in activities, considering these to be national measures.”

• SWISS: According to a report carried by the daily newspaper Tribune de Genève, the Swiss personnel of the airline SWISS are complaining about only being informed at a late stage about restructuring plans decided at the level of their parent company, the German airline Lufthansa. While German and Austrian employees have already received information, this is not the case for the Swiss workers, according to three Swiss trade unions, which denounce the fact that there is no Swiss representative on the European works council set up by Lufthansa in 2011.

In-depth study on working time in the EU. The Foundation for the Improvement of Living and Working Conditions (Eurofound) has published a report on “Working time developments in the 21st century” (in English), with contributions from IR Share and its partners for Bulgaria (ISSK) and Luxembourg (LISER). The report shows that working hours continue to vary widely in Europe. A clear split can be seen in this regard, with collective bargaining playing an important role in fixing working hours in the older member states, whereas in central and eastern member states working time standards are more likely to be established through legislation. The report, as underscored by the study’s coordinator, Jorge Cabrita, on his blog (in English), suggests that if working time standards are mainly left to legislation or to be set unilaterally by employers, people will still tend to work longer hours. On the contrary, if the working time standards are negotiated through collective bargaining, employees tend to work fewer hours on average, with the impact of work on their health and wellbeing being reduced as a result.