1.
No
layoffs without serious consultation
|
Collective redundancies in Spain once
again canceled in court
On 12 June 2014, the Spanish
Supreme Court for collective labour law (Audiencia Nacional de
España), annulled the layoff of 1,190 employees at four
bottling plants of Coca-Cola Iberian Partners (CCIP). The court ruling
(photo) was a media event in Spain. Once again a Spanish court
interpreted the term "consultation" in the French sense and hereby
considerably strengthened the role of local and European works councils
in restructuring.
At Coca-Cola, just as in the US
automobile supplier Tenneco ruling from February 2014 in northern Spain
(see report
in EWC News 1/2014), the issue concerned the correct
implementation of the consultation procedure. On 10 December 2013, CCIP
announced the closure of four of its eleven filling plants in Spain
(Palma de Mallorca, Alicante, Asturias and near Madrid), which would
have meant the dismissal of 30% of the Spanish workforce. At the same
time, the US-beverage group`s subsidiary recorded a 900 million
€ yearly profit on the Iberian Peninsula. The first 235
redundancies were announced on 1 April 2014.
During the statutory 30-day
consultation period the management showed no willingness to seriously
seek alternatives to the closures. This represented a breach of the law
in the opinion of the Court. Consultation is useless in such a context
and therefore invalid; without valid consultation no redundancies can
take place. At the end of the consultation period on 21 January 2014,
the sites threatened by closure went on strike, which management
proceeded to undermine by relocating production to other sites. In the
opinion of the judges this was a serious violation of the right to
strike which is guaranteed by the Spanish constitution and aimed at
balancing the power of negotiating parties.
CCIP is now refusing to execute
the court ruling and wants to challenge it before the Supreme Court.
But a similar trend could be seen in another case in March 2013
(see report
in EWC News 2/2013). On 4 July 2014 the CC.OO. union
filed a preliminary injunction for the immediate reinstatement of all
dismissed employees.
Trade union
European-wide action day
The events in Spain had
provoked pan-European discussions within the group. Members from the
three European works councils of the Coca-Cola conglomerate and trade
union representatives held a meeting on 20 and 21 March 2014 in Madrid
to establish a European manifesto for a socially sustainable Coca-Cola
System. They called for a European-wide day of action on 5
May 2014. Protest demonstrations took place at the group`s European
headquarters in Brussels, in France, in Germany and in four other
countries.
Thorough consultation process
saves site
Production has now been
resumed on 28 July 2014 at the US automobile supplier Tenneco plant in
the northern Spanish city of Gijón. Production had been at a
standstill for half a year since the plant was due to be closed.
Following tough negotiations, the workforce voted on 17 June 2014 in
favor of a site continuation agreement (photo) which provides for
workforce reduction through an early retirement scheme. 129 of the 216
employees will continue to work in Gijón.
Although it is only a small
site on the outskirts of Europe, the events in the Tenneco case have
European wide significance. The closure could be avoided, because
employee representatives were confronted with inadequate consultation
procedures which could be consistently challenged in court
(see report
in EWC News 1/2014). It was only after all
redundancies had been canceled in court, that the US-management
seriously considered alternatives to the closure. The CEO from the
United States discussed this for the first time on 15 April 2014 in
Rome with a representative of the European Commission. In a meeting
with central management and works councils held on 30 April 2014 in
Brussels it became clear that the site would not be closed. Finally,
after the successful conclusion of negotiations, the US group's vice
president even paid a visit to the site in Spain on 3 July 2014.
Up to now, an in-depth
understanding of the consultation model originating from French labour
legislation and which strongly influenced the relevant EU Directives
has generally been lacking in Germany (see report in
EWC News 3/2011). This is clearly demonstrated by
the US automobile supplier Visteon case, whose EWC tried in vain to
prevent mass redundancies in Spain in September 2011, through legal
proceedings before the Cologne state labour court (see report in
EWC News 3/2011). The question arises as to when
this issue will be resolved by the European Court of Justice.
Forthcoming event: How to
consult properly?
A EWC seminar is being held in
Kassel from 29 September to 2 October 2014 which examines information
and consultation particularly under the aspect of restructuring. The
seminar is also addressed to SE-works councils.
|
2.
German judges restrict EWC work
|
Steering Committee members may not travel
to England
On
8 April 2014 the labour
courts in Lörrach ruled on the rights of a European works
council to make site visits. It prohibited the steering committee of
the Australian packaging group, Amcor, from sending two of its members
to the Cumbria plant (northern England) on 24 April 2014 to directly
inform reps on site.
In
the opinion of the Court and
central management, only British representatives are responsible for
passing on EWC information to employee representatives in the United
Kingdom. The EWC cannot decide for itself whether its chairman or any
other member of the Steering Committee should be entrusted with this
task. Although the British representatives had attended the last
EWC-plenary session in October 2013, they are not directly involved in
the work of the steering committee.
The
case raises a fundamental
legal issue for all European works councils. Article 10 of the new EWC
Directive defines the role of representatives. Accordingly they "shall
have the means required ... to represent collectively the interests of
the employees". They not only have the right but the duty to inform
local representatives about their activities. However the
legislator leaves the question open of how this is to be carried out in
concrete terms. The State court of Baden-Württemberg in
Freiburg will shortly have to deal with the matter since the EWC has
filed an appeal against the ruling.
External
trade union representatives may not participate in meetings
On
4 June 2014 the labour court
in Lörrach passed a further ruling. The EWC of Amcor is hereby
not entitled to invite trade union officers to its meetings. This
applies even if there is no cost involved. In the opinion of the Court,
EWC meetings are not open to the public and trade union officers have
no legal right to participate. However, they may request the EWC to
participate as an expert should they have special expertise. Unlike the
provisions of the EU Directive, in Amcor, participation of experts to
meetings is subject to the "approval of both parties", EWC and central
management. In other words, employee representatives' experts must
first pass through a kind of employer "Assessment Center" before they
can start work. The EWC also wants to appeal against this ruling.
The
Australian packaging group, Amcor
The
European works council was
founded in 1998 under German jurisdiction and the EWC agreement last
updated in 2002. It is therefore automatically subject to the new EU
Directive. Amcor has its European headquarters in Zurich and tries very
hard to dispute any room that the EWC has to maneuver. In June 2013 the
same court prohibited employee representatives from publishing a
critical report about the last EWC meeting on the Intranet
(see report
in EWC News 3/2013). There are currently therefore,
a total of three
court proceedings at Amcor with considerable significance for the
entire European works council landscape, assuming they come before the
European Court of Justice in Luxembourg.
Forthcoming
Event
These legal proceedings will be
examined in more detail during a legal EWC seminar being held from 28
to 30 October 2014 in Würzburg. The EWC chairman of Amcor will
also report on the current status on 26 January 2015 at
the conference of the EWC Academy in
Hamburg.
|
3. New court rulings before EWC establishment
|
First
ever EWC court ruling in Italy
For
the first time on 7 May 2014, the Court of Appeal in Turin passed a
ruling on a case concerning Italian EWC legislation. FIOM, the
metalworkers union from the country’s largest trade union
confederation CGIL, was excluded from the constitution of the Special
Negotiating Body (SNB) of Fiat Industrial in 2011. The judges ruled
this as anti-union behavior. The truck and engine manufacturer was
spun-off from the Fiat group in 2010 and was therefore able to
establish its own EWC. Fiat itself has had a EWC in place since 1996.
In
Italy, SNB members are not elected by the employee representative body,
RSU (comparable to a works council), but are appointed by
the unions, and only from those who have signed the industry
or
company collective bargaining agreement. As a consequence of Fiat
abandoning the employers' association and the collective industry
agreement, since 1 January 2011, the only agreements which are valid
are at a company level and were signed by four trade unions, but not by
the militant FIOM. Since then, the FIOM has been excluded from any
workplace involvement at Fiat, and consequently also from the SNB. In
July 2013 the Italian Constitutional Court in Rome declared this
practice to be unconstitutional and the FIOM was given back its RSU
mandates (see report
in EWC News 3/2013). The recent ruling therefore
represents a consistent application of the Constitutional Court's
decision.
New basis for workplace
representation and collective bargaining
In
Italy, the fundamental issues of industrial relations and collective
bargaining are not traditionally settled by the legislator but by the
umbrella confederations of the bargaining parties. The last major
agreement of this kind was a reform of workplace representation as well
as the rules for negotiating company level agreements, in September
2011 (see report
in EWC News 3/2011).
According to a ruling of the Constitutional Court from July 2013
however, this had required some amendments. On 10 January 2014 the
three large Italian trade union confederations signed a new agreement
with the employers' confederation, Confindustria. It can be considered
as a kind of "Collective Bargaining and Workplace
Representation Act" for Italy.
French judges surrender
jurisdiction to London
On
17 July 2014, the Paris district court passed a first instance ruling
on its competency for the establishment of Manpower’s
European
works council. Although the request for the EWC’s
establishment
had been made by employee representatives from several countries on 28
May 2013, the US recruitement company has, up to this day, not yet
convened the Special Negotiating Body’s (SNB) constitutional
meeting. According to trade unions, after expiration of the legally
defined 6-month period, a default EWC should be immediately established
under French jurisdiction. The judges however have ruled that London is
to have jurisdiction for the EWC and rejected the proceedings filed
against the company in France.
In the
opinion of the trade
unions, France with the largest workforce should be responsible for the
establishment of the EWC. Manpower has 95,000 employees in France and
only 48,000 in the United Kingdom. All other countries in Europe are
significantly smaller. British jurisdiction is applicable, according to
the judges, as a consequence of an internal email dated 28 September
2011. This was a request by US central management asking the London
office (photo) to conform to all of the obligations resulting from the
EWC Directive. Employee representatives were however not informed about
this communication. The ruling may be challenged in an appeal court.
This raises two fundamental issues of European wide significance:
1. Can
central management decide on its own which country has jurisdiction?
2.
What happens when the legally defined period for SNB constitution has
expired?
The first issue was the subject of a legal
battle in Germany at the U.S. automobile supplier, Visteon
(see report
in EWC News 1/2012).
The case was settled however without a court decision and the EWC
continues to operate under German jurisdiction. In the Manpower case,
and in parallel with the legal proceedings in Paris, the British trade
union, Unite, requested the intervention of the Central Arbitration
Committee (CAC) in London but has since withdrawn the case.
|
4. British EU referendum and
labour legislation
|
Announced EU referendum coming
or not?
While
the Labour party and the Liberal Democrats are rejecting a referendum
on the fate of the United Kingdom in the EU and the conservative party
has promised one for 2017, there was a surprising turn of events at the
policy conference of the country’s largest trade union,
Unite, on
2 July 2014 in Liverpool. Unite is now also calling for a referendum,
but to remain in the EU. General secretary Len McCluskey said, "the
advantages of EU membership, particularly in terms of social
protections and supporting manufacturing investment, outweigh the
disadvantages".
Since
Mrs Thatcher’s arrival in office as prime minister in 1979,
there
has been no social progress made in the United Kingdom, stemming from
within the country itself. Any progress in social policy over the last
few years has often been a direct result of EU legislation, following
the end of the opt-out from the EU Social policy under the Blair
government, in 1997. European works councils were furthermore only
introduced into British legislation on 15 December 1999.
According
to an evaluation made by the European Trade Union Institute in
Brussels, who for the first time in 2009, established the European
Participation Index (EPI) based on a points system (see report in
EWC News 2/2009),
the United Kingdom was rated with the lowest level of employee
participation of all countries in Western Europe. British workers are
far more exposed to the arbitrariness of the employer than in other
parts of the EU. This invites companies from countries with strong
participation, to treat British workers more poorly. For example, after
25 years of service the dismissal of a car factory employee in France
costs 200,000 euros as opposed to England, where it's only 7,500
euros. Following a withdrawal from the EU, this situation is
likely to continue to worsen. EU membership is therefore a high ranking
social policy issue for British workers.
What
are the scenarios after EU withdrawal?
Should
the UK leave the EU, there are several paths onwards for the period
thereafter. The Norwegian-option and the Swiss-option. In Norway there
was no majority for accession to the EU in the 1972 and 1994
referendums. Norway as well as Iceland and Liechtenstein are however,
fully integrated into the common market as a consequence of the
European Economic Area agreement. In practice, this means that Norway
transposes almost all EU laws into its national legislation, but has
hardly any influence on the legislation. The EWC Directive therefore
also applies to Norway without restriction.
In
Switzerland, the accession to the European Economic Area was rejected
by referendum in 1992. However, in order to benefit from the advantages
of the common market, comprehensive bilateral agreements between
Switzerland and the EU were concluded in 1999 and 2004. By these means,
important parts of the EU legislation have been adopted in the Swiss
national legislation. In order to prevent Switzerland from "cherry
picking", these agreements are inter-connected to one another through a
"guillotine clause"; if a tiny part of an agreement is terminated, all
agreements are automatically terminated. In December 2008 Switzerland
adhered to the Schengen Agreement and abolished border controls with
the EU (see report
in EWC News 3/2008).
Since September 2011 the Swiss franc has been coupled to the euro
exchange rate to avoid job losses in Switzerland. The European Works
Council Directive however does not apply, since there was no majority
on it in Parliament, in June 2012 (see report in
EWC News 2/2012).
Do
British EWC members lose their mandates after EU withdrawal?
Prior
to 15 December 1999 there was no EWC legislation in the United Kingdom.
Nevertheless, at that time many large British companies had established
a EWC. The EWC agreement was then, for example under Belgian, German or
French jurisdiction. Usually the United Kingdom workforce was also
integrated into the European works council. In companies with
headquarters in Switzerland the local workforce is represented on the
EWC in over 70% of the cases. This suggests that in practice, a massive
loss of British mandates will probably not happen. The situation is
different in EWC agreements under British jurisdiction. It remains
entirely uncertain, as to whether or not they will continue to apply or
have to be completely renegotiated.
Forthcoming Event
The legal situation following a
possible EU withdrawal will be covered in our annual EWC meeting in
London on 23 October 2014.
Limitation
of the right to strike - no breach of human rights
On
8 April 2014, the British laws on strike rights dating from the
Thatcher years was the subject of a ruling from the European Court of
Human Rights in Strasbourg, for the first time. The case had been filed
by the RMT Union (see report in EWC
News 4/2012).
In the court’s opinion the prohibition of solidarity strikes
("secondary action") in the transport sector is compatible with the
freedom of association. The national legislators have herein a certain
degree of flexibility. The European Trade Union Confederation (ETUC) in
Brussels also published a legal opinion on the hearing. The decision is
surprising, since the Court had ruled favorably in a similar case in
April 2009, against Turkey (see report in
EWC News 2/2009). The ruling can be challenged in the Grand
Chamber.
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5. Newly
established European
Works Councils
|
High EWC standard in US Company
A
EWC agreement for PerkinElmer, the US-laboratory outfitter, was signed
on 28 May 2014 in Brussels under British jurisdiction. It fully
integrates the standards of the new EWC Directive. Transnational
competence begins already if only one country is significantly
affected. Any restructuring involving at least 30 employees within 90
days in two countries, is considered as exceptional circumstances
triggering a consultation procedure. The precisely defined structure of
the procedure is remarkable for a British EWC agreement. Short
deadlines have however been fixed: the EWC has to render its opinion
within 10 working days.
The most important European
countries
within PerkinElmer are Finland, Germany, Italy and the United Kingdom.
Small countries with fewer than 25 employees are not represented in the
EWC. Plenary sessions take place once a year in Brussels. The select
committee is made up of five representatives from different countries.
EWC members have the right to communicate with the entire workforce of
those countries having no central or group works council. Although
training takes place during EWC meetings, individual members may
however participate in external events.
Another EWC established in
US-company
A
EWC agreement for Emerson Electric was signed on 18 June 2014 in
Brussels. The conglomerate has over 130,000 employees in 150 countries.
The agreement is under British jursidiction and the EWC composed of 27
members from 22 countries. The consultation procedure has been
carefully structured with tight deadlines. Two experts may be
designated independently of each other. The EWC is involved, if within
a 120-day period, at least 300 employees are affected by restructuring
in two countries.
The existing European works
councils in some
subsidiaries are however now being dissolved, such as the EWC of the
air-conditioning division established in 2004 or the Leroy Somer EWC in
2011 (see report
in EWC News 2/2011).
EWC established in Japanese
automobile supplier
A
EWC agreement for U-Shin was signed on 18 June 2014 in
Bonneuil-sur-Marne near Paris, under French jurisdiction. The Japanese
group acquired the door and steering wheel locks manufacturing from the
French company Valeo in May 2013. The EWC agreement was negotiated in
just half a year. It is closely aligned to the agreement of the former
owner, Valeo, where a EWC has already existed since 1999.
The
European works council of U-Shin will include five countries. More than
half of the workforce represented belongs to Slovakia. According to
French custom, the council is chaired by the employer. The employee
representatives elect a steering committee made up of five
members. Each representative has a right to four days training during
the four-year term of office. The EWC has to render its opinion within
a "reasonable" period. An exact time limit is not foreseen in the EWC
agreement in order to ensure an in-depth consultation procedure.
We
have compiled a selection of EWC agreements on a download
page.
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Market
leader in online fashion shopping operating as European Company (SE)
An
SE participation agreement was signed for Zalando on 17 March 2014 in
Berlin. The company, which was founded in 2008 with the help of
financial investors, has expanded very rapidly and currently employs
5,000 employees in 15 European countries. Since 2012, it has been
setting up its own retail outlets, the first of which was in Berlin
(photo). Central management could only avoid a joint
parity-based
Supervisory Board, through a timely SE conversion. This reasoning plays
an important role in many German companies (see most recent
examples in EWC News 2/2013). Germany represents half of all
the SE conversions in Europe, which are related to employee
participation (see report in
EWC News 4/2011).
The
SE agreement provides for three employee representatives on the
Supervisory Board (one-third representation), but is otherwise not very
employee friendly. The size of the SE works council is as such limited
to nine members. Since Zalando does not yet have any local works
councils, the German members are elected directly by the workforce. A
similar solution was also adopted by Warema, the Bavarian metal-working
company in 2009 (see report in
EWC News 2/2010).
The SE works council may hold meetings twice per year. Whereas the
right to training and the size of the three member steering committee
have been restricted to exactly fulfill the legal provisions, the
competence of the SE works council has been defined below the legal
mimimum standard. An extraordinary consultation procedure is foreseen
for circumstances affecting 1% of the total European workforce. It is
almost certainly the first SE agreement in Europe containing the
following clause: "The SE works council shall not be entitled to file
injunction proceedings against measures". It is thereby permanently
retrograded into playing a "song and dance act" which is surely not
compatible with EU legislation.
Zalando = Slaveando?
The
company came under heavy critisism during a television documentary on
14 April 2014. Using a hidden camera, an undercover-reporter exposed
working conditions in the logistics department: pressure from
supervisors and health risks due to exploitation up to the performance
limit. After unmasking the reporter, Zalando started legal proceedings
for "disclosure of business and company secrets". A site near Potsdam,
where a works council has been elected for the first time, is to be
closed. The following texts are only available in German:
Fast outcome to negotiations for
French electrical engineering group
An
SE participation agreement for the 50,000 employees of Schneider
Electric in Europe was concluded on 10 June 2014 in Rueil-Malmaison,
near Paris. This long-etablished company has 150,000 employees
worldwide in 190 countries and the agreement therefore represents the
largest SE conversion that has ever taken place in France. It was ready
for signing after around three months, even though the Special
Negotiating Body (SNB) was composed of 30 representatives from 25
countries. The details were assigned to an eleven member "technical
committee" which met three times.
The
European works council, established in 1998, is replaced by a SE works
council including also Switzerland. It is composed of 38 members,
including six from France, as well as three each from Germany, Spain,
Italy and the United Kingdom. The employer is chairperson according to
French custom. The select committee is made up of ten members
representing seven geographical zones who meet together four times per
year. There is one plenary meeting a year, with an optional second
meeting. The workforce of Invensys is also represented by the
SE
works council and the EWC of this British technology group established
in 2000, is to be dissolved. Invensys was acquired by Schneider
Electric in July 2013.
The
SE works council shall be consulted in circumstances affecting 10 %, or
more than 150 employees, in any country. It can establish its own
working groups on specific topics. A time-off work allowance has been
defined; select committee members for example, receive 100
hours
per year in addition to time-off for meetings. Each representative has
a right to five days training per term of office and can even visit all
the sites in his/her country once per year. All running costs
(interpreters, travel expenses, experts etc.) are borne by central
management. In addition, the SE works council has its own annual budget
of around 30,000 € for financing additional experts
or
training.
Employee representatives on the
Board of Directors
Six
SE works council representatives are included on the SE’s
Board
of Directors with a consultative voice. Since France represents 36% of
the European workforce (more than the statutory 25% threshold), the
usual French standards of employee participation could be maintained on
the SE's board. What’s new is now the distribution of these
mandates over several countries. In 2007, Schneider Electric had
already concluded a ground-breaking agreement for a pro-active and
socially sustainable corporate policy with unions at the
European
level (see report in
EWC News 2/2007).
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7.
Examples of EWC consultation procedures
|
No dismissals for operational
reasons until the end of 2016
On
14 April 2014, the Airbus Group’s European works council
concluded the consultation procedure on planned restructuring
of
the space and defense divisions, including the elimination of some
5,800 jobs, at a meeting held at the Ottobrunn site near Munich.
Central management had submitted their plans in December 2013 and had
been waiting since then for the official opinion of the EWC, because
such measures could only be implemented after the completion of a
formally correct consultation procedure (see report in
EWC News 3/2011). The EWC had familiarized itself
with the intricacies of the procedure at a workshop held in January
2014 in Bremen (see report in
EWC News 1/2014) and rendered its opinion only once
compulsory layoffs had been excluded.
After
the completion of the European-wide consultation procedure,
negotiations started within the countries involved. On 21 May 2014, IG
Metall announced the contents of the agreement for Germany and on 22
May 2014 the French central works council’s consultation
procedure was completed. Whereas the outcome of the negotiations was
largely welcomed by the German works councils, French trade unions
expressed very different opinions. Compliance to the agreement will be
overseen every three months at the national level and at each meeting
of the European works council. An evaluation is then to be made in
November 2016.
Socially-responsible
transnational workforce reductions
On
22 May 2014, the Zurich Insurance Group’s European works
council
and its central management concluded a memorandum on minimum
requirements for socially responsible restructuring and guidelines for
social plans. The largest insurance company in Switzerland wants to cut
up to 800 jobs. The memorandum provides for an on-going consultation
process with the EWC, so that it is continuously informed on the
procedure and able to make constructive contributions. The role of
local employee representatives will also be strengthened in the paper,
which has a particularly positive effect in the United Kingdom and
Switzerland.
The
Zurich Insurance Group’s European works council was
established
in September 1996 on the basis of a "voluntary" Article 13 agreement
under Belgian jurisdiction, even though it does not even have one
single Belgian representative due to the small workforce numbers. The
largest countries are the United Kingdom (six seats), Switzerland and
Germany (four seats each). An "Implementation Agreement" was
concluded in July 2010, as an addendum to EWC agreement to more
precisely define the operation of the consultation procedure.
Forthcoming event
A
member of the Zurich Insurance Group’s EWC steering committee
will give a background report at the Hamburg EWC conference on 26
January 2015.
Digital transformation on EWC
agenda
The
biannual meeting of the European works council of Axa, the French
insurance group, was held from 10 to 13 June 2014 in Madrid. The 50
representatives participating from 15 countries held discussions
focused on the forthcoming digital transformation of the entire company
and its impact on personnel policy, in particular with regards to
working conditions and skills management. The implementation is to
start in 2015 and last until 2020.
The
European works council considers itself hereby, as
management’s
central dialogue partner, since it concerns a transnational issue of
the highest importance. Axa was the first company in the insurance
sector to conclude a Europe-wide framework agreement on proactive
workforce planning with the EWC in September 2011 (see report in
EWC News 3/2011),
and which is now taking effect. The EWC select committee started on 24
June 2014 by developing an action plan to ensure employee involvement
in the digital transformation.
Forthcoming
event
One
of Axa's EWC select committee members will give a report on
the
EWC’s work during a conference to be held in London on 23
October
2014.
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8. Business practice in critical moments
|
Swedish household
appliance manufacturer stays in Italy
At
a meeting with employee representatives from its four Italian sites,
held on 27 January 2014 in Venice, Electrolux management had announced
its intention to relocate part of the production to Poland and Hungary,
if there was not a 40% reduction in labour costs. Electrolux employs
3,900 workers in Italy for the manufacture of household appliances. The
plans included the complete closure of one of the four plants, and a
reduction in size of the other sites.
After
strikes and protest actions, the Italian Government stepped in and
finally a compromise was reached with their help. The signing of the
agreement took place on 15 May 2014 in the Chigi Palace in
Rome,
the official residence of the Italian Prime Minister. Electrolux is now
to make no redundancies and will even invest 150 million euros in the
four Italian sites. In return, the group receives tax relief, wage
standards are to be lowered and short-time working introduced. To
ensure compliance, the agreement will be overseen at a meeting held
every six months between employee representatives, management and the
government. The events at Electrolux in Italy received a large media
coverage and represent a symbol for the Italian industrial crisis.
US-car manufacturer to remain in Germany
On
6 June 2014, Ford’s German central works council concluded a
site
continuity agreement for the Cologne and Saarlouis plants until 2021.
Previously there had been speculations about a relocation to Romania.
The workforce had to make concessions on bonusses, more flexible
production methods and the elimination of night shifts. Compulsory
redundancies are excluded until the end of 2016. At the same time the
Spanish plant in Valencia is to receive new products, which now means,
according to the EWC chairman, that all West-European car manufacturing
plants have a secure future and the new plant in Romania good
opportunities for developement. The Belgian plant in Genk will however
be closed as planned, at the end of 2014 (see report in
EWC News 4/2012).
List of demands before Finnish
shipyard takeover
Meyer
Werft shipyard’s works council in Papenburg (Germany)
presented a
list of demands to management on 18 June 2014 under the title "Our
position on European Strategy". It lists ten conditions which
should be met before the takeover of the Finnish STX shipyard in Turku.
In addition to a guarantee for safeguarding German sites, employee
participation rights for the Finnish shipyard have also been demanded.
A working group made up of works council members from both countries is
to be established, since there is currently no European works council.
In September 2013, an exemplary company agreement was concluded in the
Meyer shipyard for Eastern European subcontractors (see report in
EWC News 3/2013).
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9. The view
beyond Europe
|
Demands for new IBM global
strategy
Members
of IBM’s Global Union Alliance met on 15 and 16. April 2014,
on
the shores of Lake Geneva, in Nyon, to select a new steering group and
to adopt a joint strategy platform. The Alliance was established in May
2011 by union representatives from 15 countries as a precursor to a
World works council but has not yet been recognized by central
management, in the United States. IBM has a European works council
since 1999. For the first time in ten years the workforce is to be
reduced worldwide in 2014, in spite of the company making profits. IBM
employs altogether 430,000 people.
Exemplary framework agreement
in the textile industry
The
Spanish Inditex group, operating under different brand names (see
photo) has grown over the last few years, to become the world's largest
clothing retailer. On 29 April 2014 a compliance report was released
for an international framework agreement which was concluded in 2007
with the trade unions. Since then it is overseen once a year by a
working group composed of three representatives each from the company
and the trade unions.
The
report contains case studies from several countries and was prepared in
cooperation with the Global union federation IndustriALL. The framework
agreement includes the entire production chain and covers approximately
one million employees, including suppliers.
Global
Occupational Health and
safety
An
agreement on occupational health and safety with worldwide scope was
signed on 13 May 2014 in Antofagasta (Chile) between the French energy
company GdF Suez and three international trade union federations. The
text is based on a similar agreement that the European works council
had concluded in February 2010 for Europe, but which, since then, had
already been implemented worldwide. Since November 2010 there is now
also a worldwide agreement on fundamental rights, social dialog and
sustainable development for GdF Suez (see report in
EWC News 4/2010).
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Siemens' European works council
In
May 2014, the Siemens Europe Committee (SEC), the official name of the
EWC, launched an EU-funded project to develop a strategic action plan,
"Siemens 2020". In the coming months, a European action
program
with long-term prospects for innovation and employment is to be
developed. The SEC has already created its own website.
Works
council in the USA?
The
Volkswagen employees in Chattanooga, Tennessee, may have
rejected
the establishment of a works council by a small majority in February
2014, after political lobby groups had intervened massively to prevent
a precedent in the anti-union southern states (see report in EWC
News 1/2014).
However, this situation should not last a long time, since it is the
only Volkswagen plant without representation in the whole world. On the
United Auto Workers' (UAW) website, the works council model is clearly
explained.
Worldwide data on trade unions
available
An
online trade union database was launched on 25 May 2014. It contains
numerous figures by country, region, industry sector and national
income for all countries of the world. The database is to be further
developed. It is managed by the New Unionism Network, an Association
established in 2007 with 700 members from 47 countries, mainly from
North America, the United Kingdom and Australia.
Multilingual Platform for workers
from other countries
The
Fair Mobility project was launched in October 2011 by the German
Confederation of Trade Unions (DGB) and offers information and expert
advice for foreign workers in the German labour market. The website is
available in German and four other languages. In addition to flyers,
seminar modules are available online.
We
have gathered together many
other interesting websites into a collection
of links.
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Advanced training
manual for European works councils
This
handbook for training multipliers was developed by the IG BCE
trade union in Germany together with partners in an EU-sponsored
project and released in October 2013. It focusses on improving
intercultural skills, team building in the EWC, evaluating the
day-to-day work in the EWC, the development of an action plan, as well
as on the decision-making processes and conflicts within a EWC.
Numerous ideas for seminars and sample agendas are shown in detail. It
is also worthwhile reading for EWC members who do not deliver training.
One chapter for example is devoted to the legal and organizational
framework of EWC work. The 80 page manual is available in English,
German and French.
European comparison of
occupational health and safety reps
In
January 2014, the European Trade Union Confederation (ETUC) released
this brochure on occupational health and safety, as a result of an
EU-sponsored project. It includes a presentation of the different
models of health and safety representative bodies in the individual EU
countries. About half of the 68 page booklet, published in five
languages, consists of training documents and bulletins for health and
safety representatives. The aim of the project is to promote
cross-border strategies for the prevention of health risks.
Transnational Company
Agreements
This
report to the European Trade Union Confederation (ETUC) was published
in March 2014. It examines the framework for the judicial safeguarding
of transnational company agreements which was demanded by a large
majority in the European Parliament in September 2013 (see report in
EWC News 3/2013).
There is strong opposition from employers against any legal
regulations, although the number of such agreements is steadily
growing. Whereas at the beginning there were still only "soft" issues
such as gender equality, further education, occupational health and
safety, now "hard" restructuring matters are increasingly the subject
of such agreements. But so far there has been no certainty about their
legal enforceability.
Survey of German Trade
Unions since the crisis
The
Friedrich Ebert Foundation released this publication on the German
Trade Union Confederation (DGB) in April 2014. It analyses developments
in membership, the scope of collective bargaining agreements
(bargaining coverage) and the dissemination of works councils in a
variety of industries. A separate chapter examines German trade union
policies since the outbreak of the financial markets crisis, in
particular the campaigns to curb sub-contracting and for the
introduction of a statutory minimum wage. The 33-page study is
available in six languages. A new study on trade unions in Europe was
also released in April 2014.
We have
gathered a collection of further
literature into a compilation.
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12. The EWC Academy:
Examples of our work
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German Tourism group on the way
to new EWC Standards
On
15 and 16 May 2014, the select committee of the TUI European Forum met
together with central management at the company headquarters in Hanover
(photo). With the support of the EWC Academy, they held discussions on
the implementation of the standards from the new EU Directive. In
addition to updating the EWC agreement a clear and structured process
flow is to be developed for the consultation procedure, as is currently
being developed or is already implemented in other companies
(see report
in EWC News 4/2013).
The
tourism group, which is the largest in Europe, had already established
its European Forum in September 1996 on the basis of a "voluntary"
article-13-agreement which was last updated in 2008. In addition, there
was an agreement in 2002 to establish a dedicated airline committee for
the group's airlines, which meets twice a year.
Consumer
Goods Manufacturer: benchmarking on consultation
A
plenary session of the Unilever European works council was held from 26
to 28 May 2014 in Rotterdam (photo). The council includes 35
representatives from 18 countries. The Anglo-Dutch company is one of
the world’s largest manufacturers of food, cosmetics and
household products. The EWC Academy was commissioned to make a
comparison of the work of the Unilever EWC with other companies and to
give suggestions for future improvements.
The
EWC was
established in September 1996 under Dutch jurisdiction and last updated
its "voluntary" article-13-Agreement in 2010. Already in 2008, it had
developed earlier than other bodies, a protocol with central management
to define more precisely a well-structured consultation process divided
into several stages. The EWC’s coordination committee is
composed
of up to eight members and meets once a month. This puts Unilever in a
leading position, which can only be surpassed in French companies, such
as for example, in the Axa insurance group (see report in
EWC
News 2/2009).
The EWC developed its own "Barcelona Agenda", an alternative model to
the short-term profit strategies of central management and was
distinguished with the German Works Council Award in 2013.
Communication
skills in packaging company
The
annual training week for the DS Smith EWC members was held from 2 to 6
June 2014 at the University of Warwick in the Midlands. The goal of
this training, which was carried out without interpreters, was to
improve language skills, and to strengthen the EWC profile from a
content viewpoint. The EWC Academy provided suggestions on the role of
individual representatives and on the use of new EU standards for
information and consultation. Following the acquisition of the Swedish
SCA group’s packaging division, the British recycling company
signed a EWC agreement in March 2013, which is among the best in
England (see report
in EWC News 1/2013).
Experience
with US management culture
The
second meeting for works councils in US companies was held on 30 June
and 1 July 2014 in the America House Munich. Whereas the first US
meeting in 2013 was limited to a small circle of participants (see report in
EWC News 2/2013),
this time 31 participants from 15 companies (photo) took part. There
was a focus on reports on the situation at Volkswagen in Tennessee
(see report in
EWC News 1/2014) and on the dissolution of the
Hewlett-Packard European works council (see report in
EWC News 1/2014). The third US meeting is planned
for summer 2015.
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13.
Current Training Schedule
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The
EWC Academy and its forerunner organization, have been organizing and
delivering conferences and seminars for the members of European works
councils, SE works councils and special negotiating bodies since
January 2009. So far, 567 employee representatives from 220 companies
have taken part, including many of them for several times. This
represents around 19% of all transnational works council bodies in
Europe - not yet including the numerous in-house events of the EWC
Academy.
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EWC
News is published by:
Authors
collaborating on this
issue:
Werner Altmeyer, Rita da Luz, Tea Omeragić
Distributor
of the German
version: 20,246 readers
Distributor of
the English version: 3,284 readers
Distributor of
the French version: 3,134 readers
Newsletter
archive: www.ewc-news.com
We are always pleased to
receive comments and suggestions in relation to this newsletter as well
as reports on your EWC activities. Please write us at: info@ewc-academy.eu
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