IR Notes

Jean-Claude Juncker, the president of the European Commission, has just suffered his first setback: the national parliaments of virtually all the “new” member states have deemed that the proposed directive aimed at imposing the principle of “equal pay for equal work” in relation to posted workers does not respect the principle of subsidiarity, and that the European Union should not intervene on this subject. This principle is indeed at the heart of the legislative proposal presented in March by the Commission (see press release). The revision focuses on three points: 1. The remuneration of posted workers will be the remuneration applicable to employees in the host country; this goes beyond simply applying the minimum wage as is currently the case. 2. Temporary workers posted to another country must be employed on the same terms and conditions as temporary workers in the host country, that is to say there must not be any discrimination against them in comparison with employees of user enterprises. 3. The duration of the posting will be limited to 24 months (see IR Notes 49). The text responds to repeated demands from several countries in western Europe that consider the current rules that apply to posted workers (those contained in directive 96/71) to be conducive to social dumping. Poland, which is the prime “exporter” of posted workers in the EU, believes that the revision would be at odds with the principle of the freedom to provide services and fears for its effects on the competitiveness of the country’s businesses that operate in the EU by deploying staff to work in other member states. For his part, Kalle Palling, chairman of the European Union affairs committee of the Estonian parliament, states, “We think that this proposal is in conflict with the principles of subsidiarity and proportionality”. Summing up the position of the “rebel” countries, he explains that “with other member states, we will be giving a clear signal that there is no need to amend the posting of workers directive, and the European Commission should withdraw its proposed directive”. With reference to the countries of western Europe, he continues, “They speak about protecting posted workers, but actually they are protecting their local labour market”. Consequently, at least one-third of national parliaments (Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Denmark) have contested the text, thus triggering the “yellow card” procedure contained in the Treaty on the European Union which requires the Commission to review its proposal. On the basis of this review, the Commission may decide to maintain, amend or withdraw the proposal and must give reasons for its decision. The Commission responded by commenting that its proposal was “balanced and respects the principles of subsidiarity”. At European Parliament level, the employment and social affairs committee on 10 May appointed Elisabeth Morin-Chartier (EPP) from France, and Agnes Jongerius (S&D) from the   Netherlands, both seasoned MEPs, as joint rapporteurs to deal with this sensitive legislation. “For the first time there are two co-rapporteurs from the same committee, concerning what is certainly the most important directive at European level today, and possibly of this parliamentary term,” explains Elisabeth Morin-Chartier in an interview with the regional French newspaper Centre Presse (13.05). The posting of workers is truly an issue that divides the European family!
> Also see the reaction of the European social partners below.

• Directive on mobility inside the EU of third-country nationals for research and study purposes: The European Parliament on 11 May adopted a legislative resolution in support of the Council position at first reading with a view to the adoption of a directive on the conditions of entry and residence of third-country nationals for the purposes of research, studies, training, voluntary service, pupil exchange schemes or educational projects and au pairing. This vote by the European Parliament will allow the definitive adoption of this directive, which will shortly be published in the OJEU. The legislation will allow students and researchers in particular to stay in the EU for at least nine months after completing their studies or research in order to look for a job or set up a business. They will also be able to move around the EU more easily during their stay and have the right to come with their family. For more information, see the note of the European Parliament (also available in Italian and Polish).

European Commission resolves to improve workers’ protection against cancer-causing chemicals: On 13 May, the Commission proposed changes to the Carcinogens and Mutagens Directive (2004/37/EC) to limit exposure to 13 cancer-causing chemicals at the workplace, instead of three at present. These limit values set a maximum concentration for the presence of a chemical carcinogen in the workplace air. The proposal in particular includes exposure to “respirable crystalline silica” (RCS). This chemical had been the subject of the first European multi-sectoral agreement aimed at establishing effective worker protection without setting exposure limit values – an agreement that has apparently not produced the hoped-for results since the Commission now intends to set an exposure limit value in order to protect the some 5.3 million employees exposed to this substance (see Commission press release and the more detailed Fact Sheet). The initiative has been welcomed by the European Trade Union Confederation (ETUC). “This is important news for the health of workers across Europe,” said Esther Lynch, ETUC Confederal Secretary who expects “the Commission to put forward exposure limits for at least 15 more substances by the end of the year” (see press release). However, Laurent Vogel, a researcher at the European Trade Union Institute (ETUI), points out that the number of chemicals covered by the legislation “is far too few in comparison with the demands of the Dutch presidency”. Indeed, the latter had asked the Commission to prepare the introduction of 50 OELs (occupational exposure limits) for the first half of 2016 – a target still well short of the 71 substances or procedures which the ETUC considers should be subject to an OEL (see ETUI press release).
> For further information, see the documents presented by the Commission (in English): the proposal for a directive, annex with limit values for occupational exposure, impact assessment, and a working paper published by the European Trade Union Institute (free, “Cancer risks in the workplace: better regulation, stronger protection“, in English).

• Resolution of the European Parliament on parental leave: The European Parliament on 12 May adopted a resolution on the application of directive 2010/18 of 8 March 2010 implementing the revised framework agreement on parental leave concluded by the European social partners. The resolution recommends to the member states that all possible measures be taken to “enable the directive to be correctly implemented, in a uniform manner, in both the public and private sector”. The European Parliament believes that the Commission should propose measures that “encourage fathers to take more parental leave and that member states should promote a more effective sharing of best practices in this field”. It should also present a new legislative initiative “to promote the reconciliation of work and family” and also envisage a “broad non-legislative initiative” to this end. Also of note is the request to the Commission and to the social partners to consider offering an “appropriate extension of the minimum duration of parental leave from four to at least six months to improve work-life balance”. Finally, the Parliament stresses that “an EU directive on a minimum two-week paternity leave is essential and urgent”.


• Assistance from the European Globalisation Adjustment Fund for Belgium: On 5 May, the European Commission proposed to provide 1.8 million euros to Belgium from the European Globalisation Adjustment Fund (EGF) to help 488 employees made redundant by several manufacturers of construction machinery (Caterpillar, Carwall and Doosan) in the province of Hainaut (Wallonia, Belgium). In addition to these former employees, the planned measures also include support for 300 young people not in employment, education or training (NEETs). (See Commission press release)

• Reactions of the social partners to the “yellow card” (see lead story): In a letter (in English) to commissioner Marianne Thyssen, who is in charge of revising the directive on the posting of workers, the General Secretary of the ETUC, Luca Visentini, demanded that the Commission maintain its proposal and reject the arguments of the countries that delivered the “yellow card” because the latter were “neglecting their own workers”. “We wish to confirm,” he continued, “that all trade unions in Europe, including those in countries whose parliaments have supported the yellow card procedure, are strongly in favour of the revision of the Posting of Workers Directive”. The employers’ organisation BusinessEurope for its part declared itself as having the same opinion as the countries that support the yellow card and called on the Commission to withdraw its proposal (see press release).

Metalworkers’ pay deal: The social partners in the metalworking sector on 13 May reached an agreement on a wage increase of 4.8% over the coming 21 months. The 3.7 million workers employed in the metalworking sector (in car manufacture and the machine-tool and electronic sectors) will benefit from an initial rise of 2.8% starting on 1 July. Prior to that, they will receive a one-off bonus of 150 euros for the months of April, May and June. Wages will undergo a further increase of 2% from 1 April 2017. This agreement, which was concluded in North Rhine-Westphalia, will serve as the basis for all the other regional collective negotiations in this sector (see press release IG Metall and press release Gesamtmetall).

• Proposal for a police force dedicated to supporting the labour inspectorate: In its last report, the Polish labour inspectorate (PIP) noted an increase in the number of breaches of labour law. According to its estimates, 700,000 people are thought to be working without an employment contract; 1.1 million are bogus self-employed workers whose status should rightly be reclassified as that of an employee, while 1.3 million workers are subject to so-called “trash contracts” (piece-work contracts or contracts based on the performance of a particular task) which are not covered by the labour code. Janusz Śniadek, a member of parliament in the governing PiS party, has raised the possibility of creating an employment police force, which would operate as a separate agency from the PIP and could conduct investigations prior to PIP inspections. However, the government does not currently plan to implement this proposal.

• Deutsche Bahn: The European works council of Deutsche Bahn met from 23 to 26 February in Berlin for a plenary meeting dedicated to the restructuring of the group and the partial privatisation of its Schenker Logistics and Arriva subsidiaries. A cross-cultural training event was organised after the plenary (see press release).

• Sixt Leasing: The European Trade Union Institute has placed online the agreement on worker involvement at Sixt Leasing (5,120 employees worldwide), which was signed on 25 February between the management of the German car hire company and a special negotiating body. The signing of this agreement will allow the group to convert to a European Company (SE) with effect from 1 June of this year. The agreement provides for a committee to be established comprising a minimum of three members and a maximum of five representatives.

• Maersk: The International Transport Workers’ Federation (ITF) has welcomed the decision by the Danish maritime transport group Maersk to amend its chartering agreements to include the requirement that the charter vessel owners must undertake to apply to their vessel an agreement that recognises the existence of trade unions and offers protection for crews. Maersk Group operates a total of around 500 owned or chartered vessels worldwide (see press release).

Situation of LGBT people in the workplace: The European Foundation for the Improvement of Living and Working Conditions (Eurofound) has published a comparative study on the situation of LGBTs (lesbian, gay, bisexual and transgender people) in the labour market based on national data collected in surveys and obtained from Eurofound’s network of national correspondents. The document provides a very useful insight into LGBTs’ integration in the labour market and the initiatives taken by way of legislation or by the social partners to protect them from discrimination or to develop a culture of tolerance at the workplace. The article contains very instructive maps and graphics showing the feelings of LGBT employees in the different countries, with large variations in terms of acceptance between countries such as Denmark and the Netherlands on the one hand and certain eastern and central European countries on the other.

• Western models of industrial relations under the test of globalisation: This work, available in French, contains answers from industrial relations experts from several European countries to the question, “How has social regulation evolved in enterprises over the past thirty years?” The book accurately assesses the principal changes that have affected trade unions and social dialogue in enterprises particularly in Europe, notably as a result of globalisation and “its concomitant restructurings and economic adjustments”. The authors found the “emergence of grey areas, that are non-regulated if not without true social rights, although some national models, because of the socio-political cultures underpinning them, have resisted better than others”. Edited by Dominique Andolfatto and Sylvie Contrepois, Syndicats et dialogue social. Les modèles occidentaux à l’épreuve contains contributions from Vassil Kirov and Christer Thörnqvist, two regular contributors to IR Notes.