1.
Employers clear the way
for negotiations
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New
EWC Directive: setback for British hardliners
The
attention was focussed until last with tension on this building in
Brussels
near the EU institutions: the headquarters of the European
employers' federation BusinessEurope. Its decision was
announced
on 2nd April 2008. Unlike the adoption of the EWC Directive in
1994,
continental European employers' federations could enforce this time a
pragmatic
solution against the resistance of British industry. Now there is time
until January 2009 for direct negotiations with the trade unions on the
wording of the
new EWC directive.
It
was not an easy decision for the employers, but the pressure of trade
unions, European Parliament and the European Commission had
increased in recent months (see report
in EWC News 2/2007). Without willingness to
compromise the
further legislative process would hardly have been influenced by
the employers.
Review:
The second phase of consultations started with delay
Already in early
January 2008
an initiative of the European Commission had been expected (see report
in EWC News 4/2007), but was slow in coming. After
intense lobbying by the employers (see report
in EWC News 3/2007),
which was aimed in particular to weaken the requirements for informing
and consulting the EWC, intense discussions took place behind the
scenes between top officials from the inner circle of Social
Affaires Commissioner
Vladimír Špidla and representatives of trade
unions and employers' federations. The
European Commission was finally ready to make its draft easier
acceptable for employers to pave the way for direct
negotiations between the social partners.
On 20th
February
2008 the European Commission went to the public with
its consultation paper. The European Trade Union Confederation (ETUC)
responded the same day agreeing with a press release.
Accompanying
scientific study
The
European Commission engaged the London-based consultancy firm GHK
Consulting
to calculate the impact of the legislative proposals for companies and
to analyze costs and benefits of the EWC work. GHK Consulting is
currently conducting telephone interviews in 80 companies with
employers' and employees' side (that's one in ten companies
with EWC).
The
French Presidency wants to tie restructuring package
The
revision of the EWC Directive could get an additional dynamic in the
second half of the year 2008, when France takes over the Presidency of
the EU. Under the motto "Anticipation of Change" the French government
wants to convene a forum to discuss early involvement of
employees in restructuring. The European Commission wants
to link all relevant legislative initiatives to a consistent
strategy. Already on February 28th, 2008, Social Affairs Commissioner
Vladimír Špidla had announced several initiatives
for the period of the French Presidency to the European Economic and
Social Committee in Brussels. This includes in addition to the revision
of the
EWC Directive in particular:
-
a
partnership for change between the European social partners along the
lines of the agreed partnership
in the automotive industry of 17th October 2007
-
the
beginning of the legislative process on transnational collective
bargaining.
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2.
Court decisions in EWC
issues
|
No merger without
consulting the EWC
One
of the most Europe-wide significant decisions for EWC
jurisdiction
was made in the Palace of Justice in Paris (photo) on 16th January
2008. The Social Chamber of the highest French Court of Appeal ("Cour
de
cassation") confirmed an interim injunction of the European works
council of Gaz de France. This had stopped the merger with the
French utility group Suez at the last minute in November
2006.
The
ruling states that supervisory or administrative boards of
multinational companies are not entitled to decide on a merger with
other companies unless the consultation of the EWC has taken
place correctly in all
details and has been completed. The process includes a financial
analysis by consulting firms, selected by the EWC itself. The judges
grant an independent right of participation to
the EWC - regardless of the rights of works councils of
individual countries. The decision represents the culmination of a
series of judgments in France, which strengthen the importance of
transnational employee representation.
Also the French
central works council of Gaz de France was not involved
properly. Only a few days later, on 22nd January 2008, the
district court of Paris reinforced its rights as well.
New
consultation process ends with social guarantees
Even
before the conclusion of the dispute, the merger was pushed forward
again in September 2007 against the resistance of the employees' side
(see report
in EWC News 3/2007).
In an EWC meeting on 20th and 21st December 2007 the employees'
representatives of Gaz de France called for additional documents to
have them checked by their consultant and presented a list of 35
questions. Without responding to this, the central
management invited for a further EWC meeting on 8th and 9th January
2008. Its aim to complete the consultation process before the
announcement of the above judgment was however thwarted by the
employees' representatives. In the course of the two turbulent
meeting days they adopted five resolutions on various aspects of the
consultation and asked in particular for
1. more information
about the social and legal consequences of the merger and
2. more time to let
these information evaluate by their consultants.
Another
special EWC meeting on 22nd January 2008 remained also without result.
In response to the criticism and the judgement which was passed in
the meantime, central management provided all required documents and
faced once more the discussion in the EWC on 21st February 2008. On
11th March 2008 the EWC finally decided on his opinion against the
merger after submission of the consultant studies. At the same time
central management issued a statement on
social guarantees for the merger, which is considered as a success for
the
employees. The following documents are only available in French:
After concessions
from management, the EWC of Suez had already given its opinion on 7th
January 2008, it also rejects the merger. With the legally
correct conclusion of the consultation process in both groups,
the way for the merger is now free.
The future
of the two European works councils
With
the merger, the
EWC of Suez is automatically dissolved and the EWC of Gaz de France
shall represent the entire group. Simultaneously, a
special negotiating body (SNB) is formed, which is to negotiate a new
EWC agreement within a few months. With that more could be achieved
than with Alcatel-Lucent, where central management strictly declined a
renegotiation of the EWC agreement after the merger.
Decision
on election dispute at Schneider Electric
On
18th April 2007, the German Federal Labour Court
(BAG) in Erfurt ruled on the question which
court is competent for the contestation of the election of German
members in the European works council of a French group. The
BAG corrected the decision of the industrial tribunal
Düsseldorf of June 2005 and referred
the procedure back to the Higher Labour Court in
Düsseldorf, where a judgement was made in December 2007.
German and no French industrial tribunals are therefore competent. The
following documents are only
available in German:
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3. Reactions
to factory relocations
|
Nokia disregards EWC rights at
plant closure
Completely
surprisingly the Finnish electronics company Nokia declared on 15th
January 2008 the shutdown of its factory for mobile phones in Bochum
with
2,300 employees to 30th June 2008. Previously the company had got
nearly 100 m. € subsidies and guaranteed a certain
number of jobs until 31st December 2007. The shutdown was announced two
weeks after expiry of this period although the profit had increased by
60% in the 4th quarter 2007. The federal state government in
Düsseldorf reclaims 41 m. € of Nokia.
On
30th January 2008 employee
representatives from European Nokia locations met in Brussels on
invitation of the
European Metalworkers' Federation (EMF). They
condemned the way of acting of the management, demanded an
extraordinary
meeting of the Euro Forum (so the official name of the EWC) and engaged
a legal report for the possible violation of the EWC
Directive. Nokia had already founded its Euro Forum in 1993,
when the adoption of the EWC Directive was still far from certain and
belonged at that time to the pioneers of a social Europe.
On
12th February 2008 a delegation of the Bochum works council held
conversations with the Nokia central management in Finland, however
without achieving the withdrawal of the shutdown decision. One day
later the Finnish unions together with IG Metall and EMF published the "declaration
of Helsinki" to the company policy of Nokia in which
they
demand a fair framework for participation in such restructuring
decisions. Since 20th February 2008 the German group works council
negotiates a compensation agreement with the employer.
The situation in Romania
On 11th February 2008 production
started
in Jucu near Cluj-Napoca with 350 employees, it will go up to
3,500 later. The industrial estate had been set up with 60 m.
€
from the PHARE program of the EU, when still no investor was in sight.
Aid money for business relocations within the EU is not paid
any more since 2007. A German construction company is erecting the
Nokia buildings in
Jucu.
Till
now, the Romanian trade unions haven't succeeded yet to
organize
the workforce and to negotiate a collective agreement. According to
media reports
uniformed watchdogs are engaged to prevent contacts of the newly
hired employees with journalists or trade unions. The metalworkers'
federation of the Romanian confederation Cartel Alfa accuses
Nokia
of
exploitation, because the staff is working 60 to 70 hours per week,
although the law allows only 48 hours. On 5th February 2008 the
company went to the Romanian Minister of Labour Paul
Păcuraru to apply for a change of the labour law. Since 18th March 2008
the Romanian anti-corruption agency checks the contracts between
Nokia and the local authorities, after the mayor of Jucu has already
been arrested in
summer 2007.
Research site of Novartis in danger
On
18th December 2007, the 240 employees of the Novartis research
institute in Vienna (photo) learned by video message of the shutdown of
its
location. The works council wants to use all possibilities to make this
decision reversed. On request of the trade unions, the national
economic commission dealt with the topic on 7th February 2008. It can
check
the company's decision, call for reports and make recommendations.
The
pharmaceutical company Novartis has a European
works council ("Euroforum") since 1995 under Austrian law. The company
headquarters is located in Switzerland. The EWC had accomplished in
2006 a Europe-wide comparison of working conditions as part
of an
EU-sponsored project.
Partial shutdown of a steel plant in
Lorraine?
On
16th January 2008 the works council of the ArcelorMittal plant
Gandrange on the Moselle was informed that 600 of the 1,100 jobs are to
be cut. The European Metalworkers' Federation (EMF) in
Brussels calls for the maintenance of an economically viable site and
wants to stand up for an alternative concept together with the European
works council of ArcelorMittal. The consulting firm Syndex,
which
was engaged by the works council, presented its report on 14th March
2008. This is also to be discussed in
the select committee of the EWC in early April 2008 (see report in
EWC News 2/2007 for the EWC agreement of ArcelorMittal).
To
introduce its divergent ideas into the discussion, the trade union CGT
ordered a counter-report from the consulting firm EVS. Such an
"expert battle" between unions is hard to imagine outside
France. The CGT is in
Lorraine in many companies in a minority
position, the CFDT has ranked first there for some years.
Redundancy scheme negotiations
à la française
The
Kléber
tyre plant in Toul (Lorraine), a subsidiary of the
French group Michelin, with 800 employees will be closed 2009. In the
course of the protests, the staff took two HR managers at the plant
under arrest and released them only three days later after agreement on
a social plan. At the same time blockades were set up and tires were
set in fire. An agreement was
reached on 17th February 2008, after the French Labour
Minister Christine Lagarde intervened in the conflict. The
action found a Europe-wide press coverage, the German newspaper
Frankfurter Allgemeine Zeitung
(FAZ) warned: "Who negotiates with French trade unions must dress
warmly."
Protests in Italy
The
household appliances factory of Electrolux in Florence with 900
employees is to be closed. For the 4th April 2008, the Italian trade
unions
therefore call for a full day strike. In a solidarity message
the Spanish union UGT demands uniform minimum standards at
restructuring should apply in all European countries. Electrolux had
already closed the AEG plant in Nuremberg in the year 2006.
Only
in June 2007 a conference on the future of the household appliances
industry in Europe took place in Arezzo (Italy) at which was also
discussed
Electrolux (see report
in EWC News 2/2007). For the Italian sites of the
Swedish household appliances group a framework agreement was concluded
in January 2007.
No
detectable increase
of relocations
On
22nd January 2008, the Hans Böckler foundation published first
results of a survey conducted by the WSI institute among 2,000 German
works
councils. According to this about 8% of all sites were
affected by a relocation. Most is relocated within
Germany, only every fifth relocation went abroad. The following
documents are only available in German:
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4.
EWC agreements are adapted
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RWE
now with holding EWC
The
move to a two-tier EWC structure in the energy group RWE took place on
16th November 2007 when a framework agreement was signed on the
formation of a European Forum on RWE's top holding level. The
special negotiating body (SNB) was formed in
April 2007 and negotiated quickly and constructively.
The
new agreement replaces a
principle arrangement from the year 1995 which expressively
waived a "holding EWC" and provided only for the formation of
divisional European works councils. After the take-over of the British
water
company Thames Water, the "European Water Forum" was initially
established in June
2002. In March 2005 the "European
Energy Forum" for the sales and network division RWE Energy followed
and in January 2006, the
"European Power Forum" for the power generation company RWE Power was
launched.
The
employee representatives of
the respective subsidiaries were informed by central
management of
RWE on European developments and could coordinate their positions
transnationally during the half-yearly meetings. With
the sale of Thames Water in December 2006 however, the "European Water
Forum"
had lost its basis. With the now practised two-tier EWC
structure, RWE is standing in a line with the Swedish paper group
SCA, the aircraft
manufacturer and armament group EADS and the Austrian steel producer
Voest-Alpine (see report in
EWC News 2/2007).
Ambitious
EWC project in a
Danish bank
On 10th December 2007, an EWC
agreement for
Danske Bank was signed in Copenhagen according to Danish law. The
chairmanship lies with the management, the 23 employee representatives
choose the vice-chairman. Once a year there will be a plenary meeting,
extraordinary sessions may be convened by a majority vote of the
EWC. The ten members of the select committee ("exclusive
board") meet three times a year. Thus, at least one meeting takes place
in each quarter.
This
agreement goes at one point far beyond the
status quo of the EWC Directive: The rights of information shall serve
namely to conclude group-wide agreements comparable to the examples
Suez or Schneider Electric (see report
in EWC News 2/2007). The new EWC agreement replaces
the previous
agreement from 2005. To
further strengthen cooperation in the EWC an EU-funded project
for
Danske Bank was launched. From 2 to 4 December 2007, the first
workshop was held in Dublin.
After
protests: Generali renewed EWC agreement
After
months of conflict-loaded negotiations, a
new EWC agreement for Generali was signed on 18th December 2007 at its
headquarters in Trieste. The role of the trade unions was particularly
controversial, since they had
organized a pan-European protest day in October
2006 together with the EWC against plans of the Italian insurance group
to cut thousands of jobs. The
hereby triggered pressure was not without effect: central management
has committed itself in November 2006 to consult the
employee representatives of all European countries early
before
restructuring (see report
in EWC News 1/2007).
The
now signed EWC agreement gives a new, improved basis to the European
works council founded in 1997. It is based both on the new
social
charter of the group as well as the Italian implementation of the EU
Directive on information and consultation. Provided
are two annual plenary meetings with all 37 EWC members, a
steering committee composed of seven members is running the daily
business. However, the quality of the participation rights is
not
sufficient to match the levels of the Italian bank UniCredit, which had
formed an
EWC in January 2007 following the take-over of the German group
HypoVereinsbank (see report in the
EWC News 1/2007).
Earlier,
the unions opposed the merger of the German
daughters Volksfürsorge and AachenMünchner
insurance. This would eliminate the headquarters of
Volksfürsorge in
Hamburg and 500 jobs.
Revised
EWC agreement for Panasonic
A
new EWC agreement for the Japanese electronics
company Panasonic was signed in Paris on 8th February 2008 - it is
subject to UK
law. The "Panasonic European Congress" (PEC), the
official
name of the 1995 founded EWC, meets once a year chaired by the
employer, it consists of 27 employee representatives
from twelve countries. The new agreement extends the
session by an additional meeting day. From now on all documents are
translated into all relevant languages. A three-member Employee
Representative Committee (ERC = presidium) meets four times a
year. By contrast, a claim to training and to form internal
working groups (on topics such as working conditions and
similar)
could not be reached. The negotiations were accompanied by
Prof Dr Ulrich Zachert of the University of Hamburg, who also acts as a
legal adviser of the training and consultancy network
"euro-workscouncil.net".
One
of Europe's first legal proceedings in an EWC matter took place
in 1998 at Panasonic in the face of a plant closure in Longwy
(France) and the then following relocation to Peine (Germany). The
employee side then lost the trial in the second instance for formal
reasons. To avoid such situations, every
EWC should provide in its standing orders rules of decision-making and
assigning of authority.
Thomas
Cook with a new EWC agreement
On 6th March 2008 a
new agreement for
the tourism group Thomas Cook was signed in Oberursel
(Germany).
The negotiations had become necessary due to the merger with
the
British company My Travel (see report
in EWC News 2/2007). A new election of the EWC
delegates
will be held only in 2010, the two existing European works
councils meet together until then.
The
new agreement
provides for two annual meetings with a duration of three days. The EWC
elects a three-member executive committee which has
a right of access to all European branches. EWC meetings are
attended by a full-time trade union officer from Germany and the UK in
an advisory capacity, additional experts may be called in accordance
with German practice.
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5.
Employers hinder EWC establishment
|
Kühne + Nagel: Company
founder operates legal filibuster
Since
1996, workers'
representatives in the forwarding group Kühne + Nagel tried in
vain to set up a European works council. They failed because of
the aversion of the major shareholder and company founder against any
form
of employee participation, that appeard as early as 1976, when the
German Co-Determination Act was passed: at that time to prevent the
establishment of a
supervisory board with workers' directors, he moved the
company
headquarters unceremoniously from Germany to Switzerland. This
was
also very favorable to avoid a European works council, as the courts
had to deal with the responsibility within the EU for years, until in
2004 the
European court of justice in Luxembourg (ECJ) finally declared the
German subsidiary of Kühne + Nagel responsible.
However, the EWC establishment could not be
accomplished because the central management in Switzerland prohibited
all
European branches from delivering the necessary information to Germany.
A
recent wave of lawsuits led in January 2007 to the first ever judgment
on EWC issues in Austria (see report in
EWC News 3/2007).
In the employer camp the behavior of Kühne + Nagel is
sharply
criticized since such legal precedents would only strengthen the
employees'
side, at the end. Dr Werner Altmeyer, editor of the EWC News, asked the
chairman of
the German group works council, Michael Kalis
(photo), on the background of the running court procedure. Kalis
demands from the legislator to allow sanctions against such unwilling
employers.
In
the European Transport Workers' Federation
(ETF), the case of Kühne + Nagel is now treated with highest
priority. On 7th December 2007, a meeting took place in Brussels
involving the consultancy network "euro-workscouncil.net" on
how
to proceed.
Stilke
works council will continue to be without EWC
On
6th December 2007, the regional Labour Court of
Baden-Württemberg
rejected the claim of the Stilke station bookshops' works council to
establish an European works council – for
formal reasons. A voluntary agreement from
1996 stands contrary, which provides only for a written procedure on
information and
consultation. The establishment of an
EWC is therein excluded. The company Stilke is part of the Valora
group, based in Switzerland, which is in continuous conflict with its
employee representatives. The
following documents are only available in German:
The
decision of the German labour court judges is rather unusual in the
European
comparison. In a comparable case, a voluntary EWC
agreement of 1995 was suspended by a French court in October
2006, because only one single trade union (the CGT) had sued it (see report in
EWC News 1/2007). France's highest appeals court
confirmed that decision quite recently on 8th March 2008.
|
6. Employee
representatives set priorities
|
Department
store chain in the criticism
On
28th November 2007 the employee representatives of the European works
council of French retail group Galeries Lafayette called on central
management to convene an extraordinary EWC
meeting. Previously relocations from Portugal
to Poland had become known, without any consultation of the EWC had
occurred. The
group operates department stores in France and Germany as
well as financial services in eight countries. The EWC was
formed in February 2005 under French law.
Comparison
of working conditions in the cement group
26
employee representatives from twelve countries met in Warwick, UK from
28th to 30th November 2007 for the annual meeting of the
Holcim Euro Forum. Since the acquisition of Aggregate Industries, the
UK
with 6,000 employees is the largest country in the Holcim
group. For the first time delegates from Romania and Bulgaria
attended no longer as observers but as full members. The
employee
representatives started a project with support of
the Institute for Industrial Relations in Amsterdam to
compare wages and working conditions in Holcim factories. The
Holcim Euro Forum, so the official name of the EWC, had been
established in 1996 according to Belgian law. The group has its seat in
Switzerland.
Digression:
participation rights of employees in Switzerland
The
trade union Unia recently compared the participation rights of
employees in Switzerland with the EU standards. The documents
are available only in German and can be download here:
IT
service provider violates Belgian law
In
a public letter the EWC of the IT service provider Atos Origin
turned to central management in Paris on 17th January 2008 to
protest
against the violation of collective bargaining and labour law standards
and the
dismissal of employee representatives in Belgium. In June 2007, after
long and arduous negotiations and shortly before the final expiration
of the statutory three-year period, an EWC
has been established at Atos Origin (see report in
EWC News 2/2007).
Guarantee fund for restructuring requested
The
EWC of the commodity group Rio Tinto Alcan at its meeting on
21st February 2008 still not get the necessary
information on the sale of the packaging and processing division
(see report
in EWC News 4/2007).
It calls for an early and regular
information about the progress of planning, sufficient time for a
financial analysis by EWC experts and the set up of a guarantee
fund for redundancy schemes. Europe-wide
actions against the threat of job cuts are planned on 23rd April 2008.
After
the acquisition of the Canadian aluminum producer Alcan by the
Anglo-Australian mining group Rio Tinto, the central management
agreed to integrate the European operations of Rio Tinto into the EWC
of
Alcan. Rio Tinto had not yet established a transnational employee
representation. The Alcan agreement was concluded in March
2006 under French law.
General Motors close to
conclusion of a framework agreement?
For
more than a year the
next Astra generation is being negotiated between the European Employee
Forum of
General Motors and the central management. On 13th March 2008 at a
meeting in Frankfort on the Main, the workers' representatives rejected
new
plans of the group (productivity improvements,
outsourcing) generally. Previously a pan-European framework agreement
should be signed, providing for minimum standards in the case
of
outsourcing
and a waiver of plant closures. Such a negotiation mandate is not
provided in the EWC Directive, it is based on a General
Motors' European solidarity pledge from December 2005.
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7.
Establishment of new European works councils
|
Bearings manufacturer soon with
EWC
On
9th October 2007, negotiations on an EWC agreement were finalized at
the headquarters of the Schaeffler group in Herzogenaurach (Bavaria).
The employee representatives
from ten countries, during the 15-month-long negotiations, dealt not
only with the text of the agreement, but
had already begun in anticipation of the new EWC with its substantive
work. In the special negotiating body (SNB) they exchanged experiences
on flexible working hours and job security. The EWC will
be constituted by June 2008 under German law. The following texts are available only in
German:
French bank set up EWC
On
30th January 2008, an EWC agreement for Crédit Agricole
group was signed in Paris. This is
one of the last major French banks, which has so far not yet founded an
employee
representation at the European level.
The
agreement reveals a distinct French handwriting: it is a mixed
body. The employer side consists of at least
eight delegates, including the president of the bank as chairman
of the EWC. Employee representatives come from 22
countries and are supported by a full-time trade union officer
of
the European federation of service sector trade unions (UNI). They meet
once a year with the employer and can ask for a second plenary
session. The nine members of the steering committee, including
the
secretary of the EWC, meet once a year with the employer
and twice a year internally as well as at current events. All meetings
will be held in Paris.
Although
all costs for the meetings are paid directly by the
employer, the EWC gets its own budget of € 60,000
annually. In addition to the meetings and to time-off in their
countries of origin all EWC members get 30, the members of the steering
committee 60 and the secretary 100 hours per year for personal
disposition. Typical for France is also a very large funding of experts.
U.S.
group founds EWC under Dutch law
On
13th February 2008, an EWC agreement was signed for Nalco. The U.S.
group is working in water treatment and chemical processes for the
industry. The special feature of the agreement: at the end
of each quarter, there is an EWC meeting with all the delegates from 19
countries at the headquarters of the European management in Leiden
(Netherlands), in which the management will provide a report
on
the financial
situation. In addition, special meetings are possible in special
cases. Each EWC member receives a personal time-off allocation of 40
hours, the
secretary of 120 hours and the five other members of the steering
committee of 60 hours per year. Attendance at meetings will not
credited against this.
The
texts of
numerous EWC agreements are available on a download
page.
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International framework
agreements in the service sector
In addition
to the metal
industry, framework
agreements on global social standards are particularly widespread in
companies of the service sector. For the federation of service sector
trade unions UNI this is a focal point.
Reingard
Zimmer of EWC News spoke with Alke
Bössiger (photo) of UNI in Geneva about union
strategies on this subject. UNI had recently signed such an
agreement in the Spanish telecommunications group Telefónica
in December 2007 (see report in
EWC News 4/2007). A hard campaign was needed in the
Canadian printing group Quebecor, until in May 2007 a global framework
agreement was perfect (see report
in EWC News 2/2007).
Yoghurt
factory in the U.S. gets employee representation
The
French food group Danone was already in the 80s one of the pioneers in
signing international framework agreements with
unions. Nevertheless, fundamental labour rights are not
granted
anywhere, such as in the U.S. The 300 employees of the yoghurt
plant in Minster (Ohio) were successful only on 6th December 2007 to
enforce their right to union representation after the management had
previously denied this. The success in the U.S. was made
possible
by support of the
International Union of Food Workers (IUF) in Geneva, who had recently
in June 2007 concluded an agreement on anti-discrimination with Danone
(see report
in
EWC News 4/2007).
Air
France KLM with new Social Charter
On
20th February 2008 a Social Charter was signed at the Paris Roissy
airport between the EWC and the central management of Air France KLM
and
thus extended an agreement for Air France from the year 2001 to the new
group. After the takeover of the Dutch airline KLM by Air
France,
the two European works councils had
merged in February 2006.
The steering committee of the EWC will monitor the implementation of
the charter, which formally applies only within the EU, but is
worldwide regarded as a reference in the group.
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Study on consulting services
for works councils shows large national differences
In
December 2007, the Ruhr University in Bochum together with the Hans
Böckler foundation published an industry study on consultants
for
works councils. In distinction from traditional management
consulting firms, the "labour-oriented
consulting" is directed towards the needs of employees
and their representatives. It originated in the 1980s
and the
then changes in work organization and
technology. Today works council consultants are engaged mainly
at
restructuring and closures, but also for the development of
company agreements on a variety of issues. The boundaries between
consulting,
seminars and applied research are fluid. All following documents are
available only in German:
Of
particular interest for European works
councils is the chapter 5 as it compares consulting services for works
councils on an international scale. The EU Directives on
collective redundancies or on the information and consultation
at
national level stipulate – in contrast to the EWC Directive – no minimum provisions on the
use of consultants.
Everything here depends on national traditions. Thus, for example, the
use
of external experts is most widespread in France and virtually
nonexistent in the
United Kingdom. Germany is in the middle, but has a backlog.
The
study points to
the
legal framework for some countries:
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In
Germany, France, Belgium and the Netherlands the works council can
call in experts at the expense of the employer, in Italy this applies
only to the RSU (a kind of works council, which is not yet established
in all
companies).
-
In
Britain, Ireland, Denmark,
Luxembourg and Spain, there is no rule that the employer must bear
costs of external experts.
In
Germany, the legal basis is
sometimes disputed, as a judgment of the Regional Labour Court in
Cologne in October 2006 shows, that exempts the employer from
reimbursement.
Consulting
for European works councils
The
EWC Directive states in the subsidiary requirements the claim to call
in an expert, what is most strongly used in French companies. The
smallest is the expert support in Anglo-Saxon companies. Only 60% of
all EWC agreements provide for the presence of experts in all EWC
meetings, in some cases, the employer
is not obliged to assume the costs.
For
this reason the advisory mandate is often taken by full-time trade
union officers free of charge. Here can be spoken of a hidden
subsidization of
the employer by membership fees of the unions. The present EWC
Directive shows an unsharpness in the distinction between union
officers and experts, that is why the European Trade Union
Confederation is arguing for an independent right of unions to
participate in EWC meetings in addition to assume the costs for
experts.
Final
report from Austria
On
28th January 2008, the University of Linz presented the final report of
a research project, which had examined in cooperation with the Austrian
Trade Union Confederation (ÖGB) success factors, barriers and
challenges for European works councils. Case studies highlight the EWC
work in Austria Tabak, Semperit, MAN and other companies. The
study
defines corner points on the way to an active and successful European
works council and identifies problems such as the
unsatisfactory
staffing capacity of the unions for EWC support. The following
documents
are only available in German:
In
previous editions of EWC
News we had already presented results of the research project. The
researchers have classified the role of the central
management by type:
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10.
Interesting web pages
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Nordic trade unions
inform about EWC topics
Under
the umbrella of Nordic IN 22 trade unions from the industries metal,
energy,
chemistry, paper and textile from Sweden, Denmark, Finland,
Norway and Iceland have joined forces in order to strengthen its
influence
in Europe. The website provides also latest news on industrial
relations and European works councils, partly in English.
European works councils in
small EU countries
This
website is an excellent example of the transparent documentation of
an EU-funded project, led by unions from
Malta, South Cyprus and Estonia in 2007. Project
management as well as research and seminar planning can be found in
detail.
French
EWC with its own bulletin
The
European works council of the French bank BNP Paribas publishes from
time to
time its own bulletin on its work. The files
are available on a website of the trade union CGT-FO.
Regional
networking of trade unions
Regional unions
of Lower Saxony, Andalusia, Greater Poland and Normandy connect
with each other with this EU-funded project.
Information about scheduled workshops and topics to be dealt
with
in the project, are available on the website.
We
have arranged numerous
further interesting
links in a link
collection.
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Rules
for financial investors
In October 2007 the
confederation
of service sector trade unions (UNI) presented a brochure on
financial investors. Investment companies
(private equity and hedge funds) should be required, with an
eleven-point program, on socially
responsible behaviour, especially to comply with applicable collective
agreements and outsourcing agreements. The
brochure is available in five languages and illustrates concrete
cases, for example the entry of Blackstone at Deutsche Telekom
or the dialogue of the British trade union GMB with Permira.
UNI Global Union
Private Equity. Why
this matters to trade unions
Nyon 2007, 44 pages
Legal
manual for business transition
In
February 2008, the third
edition of a guide for works councils, who are confronted with
various forms of restructuring, has been published. Shown are the legal
consequences of business changes to the works council, the
participation in the supervisory board, the validity of
collective agreements, the individual employment contract as well
as company pension schemes. Newly inserted are both the EU Merger
Directive and the SE legislation. The book is only available in German.
Michael Bachner/Roland
Köstler/Volker Matthießen/Wolfgang Trittin
Arbeitsrecht bei
Unternehmensumwandlung und Betriebsübergang
Baden-Baden 2008, 3. edition,
499 pages, ISBN 978-3-8329-2592-5, € 58,-
Radical change of
Polish labour law
At the end of 2007, this
dissertation was published, dealing with the transformation of
Polish labour law in the years after 1989. An
important aspect is the role of trade unions, who had initially claimed
a monopoly in representing interests in the workplace (similar
to
the UK). Only the transposition of the EU Directive on
information
and consultation into Polish legislation led to the establishment of
works
councils in Polish companies starting from 2007. The prehistory of
recent developments is shown by the author as well as the
implementation of the EWC
Directive and the consequences for the Polish industrial relations. The
book is only available in German.
Patrizia Chwalisz
Die Transformation des
polnischen Arbeitsrechts und die Gewerkschaften
Frankfurt am Main 2007, 248
pages, ISBN 978-3-631-56518-6, € 51,50
Trade unions in Russia
This
booklet
having been published in January 2008 examines the history of
the
Russian trade union movement after 1992 as well as the current
situation in the metal industry and the chemical industry. It describes
exemplarily the regular exchange of experience between the German and
Russian workers' representatives in the Henkel group.
DGB-Bildungswerk and Others
Gewerkschaften in
Rußland heute
Düsseldorf 2008, 55
pages, € 3,50
In May 2006 the European
Federation of Public Service Unions (EPSU) presented a study on the
Russian Gazprom group, one of the largest employers in Europe.
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12. Training and consultancy
network "euro-workscouncil.net":
Examples of our work
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European
Forum of Roche starts new term of office
Since
1996, the Swiss pharmaceutical group Hoffmann-La
Roche has a European Forum. 27 members
from 13 EU countries and Switzerland met in Brussels from 10th to 14th
March 2008 to the constituent meeting for the next four
years. Since about half of the delegates are new in
office, the training and consultancy network "euro-workscouncil.net"
conducted a workshop on EWC work and industrial relations in the EU
countries.
A
major point of discussion was the ongoing revision of the EWC
Directive, which could potentially lead to an adjustment of the EWC
agreement with Roche. This provides
for one annual meeting with the central management, a coordinating
committee meets twice a year. As a voluntary agreement
according
to article 13 of the EWC Directive it enjoys continuance protection
until now; it is subject neither to the Swiss nor the law of a
EU
country. Positive feature is the inclusion of the two divisions
pharmaceuticals and diagnostics; each subsidiary with more than 150
employees appoints at least one delegate per country to the
EWC.
Restructuring
in the energy industry in Western and Eastern Europe
What
strategies pursue energy companies in the
European single market? How can employee representatives react to it
nationally and European? How can the role of European works councils in
energy companies be strengthened and a common platform be
developed, which is in Western and Eastern Europe equally sustainable?
Energy workers' trade unions from Romania, Hungary, Czechia,
Germany, Austria and Italy want to face these topics. A corresponding
EU restructuring project is currently being prepared by the Training
and Consultancy Network
"euro-workscouncil.net" in cooperation with the European Federation of
Public Service Unions (EPSU) in Brussels.
Completed
projects: Reports now available
The
Training and Consultancy Network "euro-workscouncil.net" participated
in an EU-funded project, which was initiated by the Italian research
institute CESOS and the CISL trade union confederation, in the
preparation of case
studies in the chemical industry. In the companies Smurfit Kappa, Kion
and ContiTech, the influence
of German works councils on restructuring in the light of
the new EU Directive on information and consultation was examined
empirically (see report
in EWC News 2/2007).
All documents are now available on the research project website,
including case studies from France, Hungary, Italy, Spain and Romania.
As
part of the LINKS project ("Possibilities and Limitations for European
Works Councils in the Port Sector"), the Training and
Consultancy Network "euro-workscouncil.net" presented a case study on
the European works council of Dubai Ports World.
This had been established in May 2007 following the acquisition of the
British ferry and port
company P&O by the Arab group, and
replaced the EWC of P&O existing since the year 2000
(also see report
in EWC News 2/2007). The document contains interesting
details of legal proceedings from the year 2002, the only litigation of
a European works council on British soil up to now. Therein the
unresolved question
of the legal status of British EWCs becomes exemplarily clear.
Recent
articles in professional journals
On
the main topic "Trade unions on the rise?"
in the magazine spw
in December 2007, Kathleen Kollewe is involved with an article titled
"What is Good Work?". Labour relations in Sweden are being illuminated
in a
country report by Dr. Werner Altmeyer and Olle Hammarström in
the
journal der betriebsrat
in January 2008 under
the title "Union representatives instead of works council". Also in
January
2008, Bernhard Stelzl reported in the magazine Mitbestimmung
about the WSI fall convention "WSI to poverty, wealth and welfare
state"
and Dr. Werner Altmeyer explained the recent court ruling on the
preliminary
stopped merger of Gaz de France with Suez ("Supervisory
board must consider EWC rights", see also point
2 above). All texts are available only in German:
More
publications can be found on our publications
page.
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