IR Notes

MEPs on 5 October adopted, by a large majority (472 for, 103 against, 99 abstentions), a resolution on the “Need for a European reindustrialisation policy in light of the recent Caterpillar and Alstom cases” in which they call on the European Commission “to consult the social partners on the effectiveness of legislation on collective dismissals in the light of” these two cases. While deploring the “gradual financialisation of the real economy, focused on a short-term financial outlook”, the MEPs define their position on collective redundancies. They add that the Commission should “consult the social partners on the opportunity for a revision of the existing legislation”. Such a review should in particular examine “the involvement in the procedure of all workers and subcontractors, and effective measures to avoid unlawful collective dismissals that are not based on real economic reasons, including the possibility of sanctions – for example, suspending access to EU-funded programmes or demanding the repayment of public aid granted”. The MEPs also call upon the task force set up by the Commission in connection with the Caterpillar case “to investigate the way in which the consultation procedure with the European Works Council (EWC) has been carried out”. The Commission will then have to “to consider the need to revise the EWC Directive”. Finally, regarding the European Globalisation Adjustment Fund (EGF), from which Belgium will seek compensation for the closure of the Caterpillar site, the resolution gives its full backing to this tool, which is currently being evaluated by the Commission. The resolution also addresses the players involved in restructuring: companies “must fulfil their legal obligations” by “prioritising the information and consultation of workers and the opportunity to review alternatives put forward by the social partners”. Any restructuring operation should “be explained and justified to stakeholders, where appropriate, including with respect to the choice of measures envisaged”. The text also advocates “a local dialogue comprising all stakeholders to discuss the best possible arrangements in cases of restructuring”. The MEPs underline “the importance of a sustained social dialogue” permitting “consensual solutions and common perspectives in the prediction, prevention and management of the restructuring process” to be found. In this connection, there is a “need to protect the workers affected, in terms of their health and working conditions, social security, requalification and reintegration into the labour market”. Although this resolution is naturally without binding effect, it underlines that the Parliament will be defending a very protective attitude towards employees when it comes to discussing the revision of the EWC directive, the Quality Framework for Restructuring, the European Globalisation Adjustment Fund and the recasting of the three directives providing a right to information and consultation.

• Preparation of Parliament report on a European Pillar of Social Rights: The Commission communication presented last March on a “European Pillar of Social Rights” is the subject of a parliamentary report prepared by the Portuguese MEP Maria Joao Rodrigues (S & D). The communication is currently the subject of a public consultation which will be concluded at the end of December. This report, which will be submitted to a vote of the Committee on Employment and Social Affairs of the European Parliament in December before being presented at a plenary session at the beginning of 2017, calls for concrete measures aimed at reconciling citizens and workers with the EU. In particular, the text calls for “the enactment of a directive on fair working conditions for all forms of employment, ensuring for every worker a core set of enforceable rights” applicable to employees as well as to “all workers in non-standard forms of employment” (on-demand work, self-employment, crowd-working, internship or traineeship etc.).


• Europass: The European Commission on 4 October presented a proposal for a decision “on a common framework for the provision of better services for skills and qualifications (Europass)” with a view to enhancing and modernising the tools offered by Europass (such as the European CV) (see press release).


• Youth guarantee: The European Commission on 4 October presented a communication (in English) which assesses the application of the Youth Guarantee since its creation in 2013 and suggests ways in which the scheme can be improved (see press release).


• National productivity boards established: The European Council on 20 September published a recommendation calling on the Eurozone member states to establish national productivity boards (see press release). A recommendation recital aims to reassure the social partners, indicating that the boards will “respect the national practice and institutions for wage formation” and that their “functioning should not affect the right of workers and employers, or their respective organisations, to negotiate and conclude collective agreements at the appropriate levels or to take collective action”.

• Relaunch of social dialogue: The European social partners in the metalworking sector (Ceemet and IndustriAll Europe) on 19 September adopted a declaration concerning the relaunch of social dialogue, as initiated by the European Commission in March 2015. The declaration emphasises the role of sectoral social dialogue, defending the social partners’ results even if they have not culminated in binding agreements, as well as the need for autonomy of the social partners.


• Joint declaration on retail banking: The European social partners in the banking sector (UNI Europa Finance and ESBG) on 13 September published a joint declaration to defend regional retail banking networks, particularly in the light of the new capital and liquidity standards envisaged by the Basel III agreement (see UNI Europa and ESBG press releases).

IndustriAll Global Union congress: The IndustriAll Global Union international trade union federation held its congress in Brazil from 4-7 October. The new president is Jörg Hofmann, currently president of the German metalworkers’ federation IG Metall. He replaces Berthold Huber. The Brazilian Valter Sanches (of the Brazilian metalworkers’ union, CNM/CUT) was elected general secretary (see press releases on the composition of the new executive committee and congress decisions). The congress amended its statutes to increase women’s participation within the organisation and welcomed the Union of the Metalworkers and Mechanics of Iran (UMMI) as an affiliate.

• Return to civil law contracts in students’ cooperatives: The employment relationships between students and students’ cooperatives – which are akin to temporary employment agencies – were previously governed by the Labour Code. The legal framework has been modified and, since 1 September, the activities performed by student members of the cooperatives are carried out under a service contract, coming under the Civil Code, which provides for only limited social rights such as paid leave. Consequently, apart from a few exceptions, students will no longer benefit from the protections afforded by the Labour Code.

• Remuneration for working at night: Until now, employees working at night were paid at the same minimum wage rate as their daytime colleagues. With effect from 1 January 2017, the 20% allowance linked to working at night can no longer be incorporated when calculating the minimum wage. As a result, those working nights will receive the 20% premium envisaged by the law on top of the minimum wage.


• Joint position of Polish and German trade unions on the remuneration of truck drivers: During the VIIth Polish-German trade union forum, the three Polish trade union confederations NZZ Solidarnosc, OPZZ and FZZ, together with the German trade union confederation DGB, signed a joint letter (in English) to Violeta Bulc, the European Transport Commissioner. The signatories demand that the German minimum wage be applied to Polish truck drivers pursuing their activity in Germany, including when in transit and performing cabotage. Piotr Duda, president of the Polish trade union NSZZ Solidarnosc, asserts that Poland “must move towards wage equality in the European Union”.

• Fight against modern forms of forced labour: Law 28/2016 of 23 August, which came into force on 22 September, introduces the tenth amendment of the Labour Code. It aims to combat modern forms of forced labour by extending responsibility for the payment of salaries, social contributions or fines to players other than the “direct” employer, such as companies in which the direct employer is a shareholder, companies that use temporary agency workers or other subcontractors. This joint and subsidiary responsibility applies not only to the companies but also to the administrators and those in charge of these companies.

Legrand: The management and members of the European works council of the Legrand group (36,000 employees), which specialises in electrical and digital infrastructures for buildings, on 22 June 2016 signed an amendment (in French) to their EWC agreement dated 30 September 2013. The text grants greater resources to members, provides the EWC with an operating budget of € 6,000 and revises the consultation process. According to Thierry Chanteraud (CGT), EWC secretary, “the amendment will allow the European works council to be informed and consulted more regularly”.

• ArcelorMittal: The three working parties established by the EWC of ArcelorMittal (employment, health & safety, sustainable development) are currently finalising their joint work on the problem of subcontracting in the group. The final joint report is due to be adopted at the next plenary meeting which will be held before the end of the year.


• Metro: The management of Metro (200,000 employees) has decided to change the group’s structure between now and mid-2017 by splitting its activities between two companies: while one will subsume the wholesale and food business (Metro Cash & Carry), the other will be responsible for the distribution of electronic products to the general public (Saturn). As a result of this transformation, the current European works council will be maintained within the company carrying out the distribution of electronic products, while negotiations will begin on establishing a new EWC at the Metro Cash & Carry entity. A meeting between the management, trade unions and UNI Europa is scheduled for 3 November to set the timetable for negotiation.
  
  > Prevention of psychosocial risks: The European trade union federation EFFAT has placed on its website resources intended for European works councils so that they play an active role in preventing psychosocial risks (access to the resources is restricted to affiliates only).

Caterpillar: Representatives of trade union organisations from Caterpillar sites in Belgium, the United Kingdom and France on 26 September attended a coordination meeting organised by IndustriAll (see IndustriAll press release). The trade unions agreed on a series of joint actions to be carried out, including a “European action day”. European social legislation appears to have been complied with, the EWC having been notified in advance before the announcement was made on the site, with a forthcoming extraordinary meeting being called. On the other hand, the employee representatives denounce the fact that the information provided to the EWC relates only to the Belgian location, the management taking the view that the closure of the British site does not form part of the same restructuring plan and is separate from the shut-down of the Belgian plant, something contested by IndustriAll.

• H&M: The international trade union federation IndustriAll, its Swedish affiliate IF Metall and the management of the H&M textile group on 29 September renewed their global framework agreement signed in 2015 for one year, making it permanent. According to the press release from H&M (in English), the agreement has already allowed national committees to be set up to monitor the smooth progress of collective bargaining in Bangladesh, Myanmar, Indonesia and Turkey.


• Tchibo: The international trade union federation IndustriAll Global Union and Tchibo on 27 September signed a global framework agreement that authorises the workers of suppliers of non-food consumer products to Tchibo and the trade unions active within the supply companies to engage in collective bargaining of wages, social benefits and working hours at the companies and throughout the sector.

• Shell: Trade union officials from IndustriAll Global Union affiliates in 18 countries attended the second Global Union Network meeting on 19-20 September to discuss the situation for workers in countries in which Shell operates (see press release). A survey (see press release, in English) has uncovered the abusive and widespread use of precarious work at Shell. A letter (in English) has been sent to the management of Shell with a call to engage in global social dialogue.


• SKF: The SKF World Union Committee met on 20-22 September to discuss labour relations within the group. The participants had an exchange with management, which outlined the strategy and challenges associated with the “fourth industrial revolution”. They called for social dialogue to be strengthened at both local and global levels to support the announced changes (see press release, in English).

“Labour and social transformation in Central and Eastern Europe”. The thrust of this work edited by the French economist Violaine Delteil and the Bulgarian sociologist Vassil Kirov is to gain a bettering understanding of how the economy and industrial relations function in eastern European countries, not just those most frequently studied, such as the Czech Republic, Poland or Hungary, but also more distant nations such as the Balkan states. With contributions from highly respected academics such as Guglielmo Meardi, Jan Drahokoupil, Martin Myant and John Geary, as well as some up-and-coming researchers, this work underscores the persistent weakness of social dialogue in these countries. At the end of the day, the European Commission has applied very little pressure on the new member states to adopt the relevant acquis communautaire and has even undermined industrial relations by its intervention during the 2008 crisis to promote reforms, as happened in Romania for example, which led to an erosion of the Labour Code and decentralisation of collective bargaining. Finally, since enlargement, the differences in terms of industrial relations between western Europe and these countries have not merely persisted, but have become more acute. However, this is not the only aspect of this book, which also expands the concept of dependent capitalism and examines inter alia the impact of the European Social Fund (ESF) and the transfer of migrant remittances to the forenamed countries in amounts that sometimes exceed those of foreign investments.
> Labour and social transformation in Central and Eastern Europe