IR Notes

In October each year the European Commission presents its work programme for the following twelve months, thereby announcing its intentions. In the field of social policy, its 2017 programme, which was presented on 25 October in the form of a communication (see press release), prioritises the presentation, in the first quarter of 2017, of a proposal for a Pillar of Social Rights, accompanied by “related initiatives”, such as measures “to address the challenges of work-life balance faced by working families” and “on access to social protection” (see Annex I on key initiatives). As part of the Refit programme, which is designed to improve and simplify European legislation, the Commission intends to begin work on the revision of directive 91/553 establishing the employer’s obligation to inform employees in writing of the conditions applicable to their contract or employment relationship. To this end the Commission must begin by consulting the European social partners. Changes to European legislation are also afoot with the revision of directive 96/71 of 16 December 1996 concerning the posting of workers in the framework of the provision of services which is one of the “priority pending proposals” awaiting adoption by the Council and the European Parliament. On the other hand, a revision of the working time directive is not scheduled (see annex Refit scoreboard, in English). Following an initial attempt at recasting which failed owing to a lack of consensus between the Council and Parliament, the Commission intends to avoid a second setback. It is therefore announcing the simple publication of a guide to facilitate the implementation of the directive on working time without going down the legislative route. Furthermore, it makes no mention of presenting a directive to implement the agreement on health and safety for workers in the hairdressing sector, an omission denounced by the European trade union federation UNI Europa (see press release). On this issue the Commission will receive the evaluation of the legislation on health and safety at work by the end of the year, but it is not announcing any revision at this stage, simply a communication that will summarise the evaluation and propose subsequent initiatives if required. In 2017 the Commission will continue with its revision programme, giving particular priority to the social legislation applicable in the road transport industry (directive 2003/59, regulation No. 561/2006, directive 2002/15 and directive 2006/22) in order to ensure a level playing field in this sector and adequate working conditions (see Annex II: Refit initiatives) . It has also announced an evaluation of the directives on fixed-term work and part-time work. The Commission says it will continue its consideration of a “consolidation/recast” of the three directives covering information and consultation rights in conjunction with the request of the European social partners in the sector of central government administrations to transform their European agreement on this subject signed in December 2015 into a directive. It does not mention the evaluation of the directive on European works councils in its programme, although this has been concluded.

Resolution on corporate responsi-bility for respecting human rights: The European Parliament on 25 October adopted, with a significant majority (569 votes for, 54 against, 74 abstentions) a resolution on corporate responsibility for serious human rights abuses in third countries. The MEPs believe that, “if companies are found to have caused or contributed to harm, they should take moral but also legal responsibility and must provide for or participate in effective remedy processes for the individuals and communities affected”. They welcome “the practice of incorporating responsibility for respecting human rights into binding contractual requirements between companies and their corporate and private clients and suppliers”. They recall that “states, acting within their jurisdiction, have a duty to protect human rights, including against abuses committed by companies, even if they operate in third countries” (also see EurActiv article).

• Trade union reaction to the 2017 work programme of the European Commission: The European Trade Union Confederation (ETUC) expressed its position on the Commission work programme in a press release. While it emphasises a number of positive points, it is “dismayed by the absence of any reference to workers’ representation on boards, European works councils, protecting workers’ health and safety”. The ETUC is also “disappointed” that the Commission “has ignored the repeated request of employers and trade unions for the development of an ambitious industrial policy to be included in the work programme”. The European trade union federation UNI Europa (see press release) for its part denounced the absence of any mention in the work programme of adopting a directive to implement the agreement on health and safety at work concluded by the social partners in the hairdressing sector.


• European Commission aims to close the gender pay gap: On 3 November, European Equal Pay Day, the Commission stated that it will come forward with a proposal for working families in 2017 now that consultations with the social partners are closed. Its objective will be to allow “not only (…) working parents and carers to find the right balance between their private and professional life”, but also to “increase women’s participation in the labour market”. The Commission indicates that “more equality in the uptake and choice in leave schemes is needed, as well as flexible working arrangements and more affordable childcare” (see press release).

• A guide for European works councils in the audiovisual industry: The European trade union federation UNI Europa has unveiled a guide for European works councils in audiovisual media companies based on the results of a European project funded by the European Commission (see press release).

Annualisation of working hours and donation of leave days. The government approved a bill, on 28 October, that modify some aspects of social legislation (see press release). The bill is subject to consultation before following the conventional legislative procedure. In particular, it will be possible for work time to be annualised at company or sectoral level by way of a collective labour agreement or an amendment to the workplace regulation. At present, flexibility of working hours is allowed only for a period of three months. Another provision allows for the donation of leave days. A parent with a sick child who has exhausted all the available leave options can ask their employer to activate the system. The employer then informs his staff. Only days not included in the twenty statutory leave days can be considered for a donation. The donation is anonymous and must be provided for by a collective labour agreement or a clause in the (internal) workplace regulation.

• Reformed mechanism for sectoral wage increases: On 28 October the government approved a bill, amending a 1996 act, that provides for the social partners every two years to agree the overall margin of wage increases (disregarding automatic indexation) that can be negotiated in the sectors. This serves as a ceiling not to be exceeded in wage negotiations (see press release). The trade union confederation FGTB sees in these measures an “institutionalisation of pay restraint” (see press release). For the employers’ organisation FEB, the bill will allow the differences in labour costs compared to Belgium’s neighbouring countries to be resorbed and “any new wage cost overruns arising in the future to be avoided and/or corrected more quickly ” (see press release).

• Conciliation service for collective labour relations: As part of a European project funded for three years by the European Union, the Hungarian social partners have set up a free service to resolve legal disputes concerning collective labour relations. The members of the service are experts in employment law chosen by the social partners. They can give advice, act as conciliators or mediators, or assist with certain arbitration cases.

• Increase in minimum wage: The Luxembourg cabinet on 14 October adopted a bill aimed at increasing the social minimum wage by 1.4% on 1 January 2017, thereby adjusting the social minimum wage rates in line with the rise in average earnings in 2014 and 2015.

Verallia: An agreement establishing a European works council at the world’s third-largest glass packaging company, Verallia (close on 6,000 employees in the EU), was signed on 23 September by the social partners at this former division of the French Saint-Gobain group, which was sold in October 2015 to the American investment fund Apollo. The European works council has at least one representative per country and additional seats according to the number of employees, without an upper limit being set. “The number of members can therefore be increased if companies are acquired within the EU,” explains Dominique Spinali (CGT), who chaired the special negotiating body. The agreement (which we cannot yet add to our IR Share database) provides for a select committee of five members to be set up, which will allow a social dialogue to be maintained at regular intervals with management. It will ensure “EWC rights to information and consultation between annual meetings”. It will therefore be consulted in case of exceptional circumstances, and its composition can be enlarged so that EWC members are included in the process as appropriate, depending on which sites are likely to be affected. The select committee can decide to call upon the services of an expert and also has a budget of € 30,000 per year for an annual expert report. In the event of consultation, the committee must deliver its opinion at the end of the meeting.

• Marazzi Group: The annual meeting of the EWC of the Marazzi Group, a multinational leader in the ceramic tiles sector founded in 1935 and controlled by Mohawk Industries Inc., took place on 27-28 October in Sassuolo (near Modena, Italy). The programme on 27 October was devoted to marking the 20th anniversary of the EWC’s creation. The aim was to strengthen the EWC’s role and, with support from SindNova, to train the new council members.