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23
July 2015
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1.
When
can we talk of collective redundancy?
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Astonishing rulings
from the European Court of Justice
The
European Court of Justice in Luxembourg passed two rulings on 30 April
and 13 May 2015 which define the meaning of collective redundancy. An
EU Directive from 1998 obliges the employer to carry out a consultation
procedure with the works council or union representatives for
collective redundancies.
Collective
redundancies exist when a certain number of employees are dismissed for
economic reasons within a certain time-frame. The EU Directive only
applies starting with ten dismissals in establishments with at least 20
employees. But what is meant by "establishment"? The entire company or
only a local entity? The judges in Luxembourg interpret "establishment"
to be only the local entity. Employees in small branches hereby lose
the right to compensation when they lose their jobs. The ruling is
based on two cases in the United Kingdom and one case in Spain, but are
binding for the whole EU.
The two cases in the United
Kingdom
In
January 2009 following the insolvency of Woolworths, the British retail
chain, all branches were closed down and 27,000 employees dismissed.
186 outlets of the clothing chain, Ethel Austin were also closed due to
insolvency at the beginning of 2010. Since the administrators, in both
cases violated legislation by carrying out dismissals without any
consultation procedures with employee representatives, labour courts
awarded compensation amounting to eight weeks wages to all the
employees involved. However only employees at the headquarters, in the
distribution centres and in larger shops received this compensation.
The dismissed employees in small branches with fewer than 20 employees
were left empty-handed, since they were not covered by the EU
Directive. They took their case up to the European Court of Justice
with support from their trade union, USDAW - without success however.
The Spanish case
The
second court ruling is related to the closure of the Barcelona branch
of Nexea, a subsidiary of the Spanish post office, Correos, in December
2012. The branch office had just under 20 employees. A dismissed
employee filed a claim for compensation since there had been no
consultation procedure carried out previously with the works council.
The Spanish legislation is the only one of all EU countries to use the
term "company" for collective redundancies as opposed to
"establishment". The European Court of Justice however regarded this as
a violation of EU legislation and rejected the claim for compensation.
The implications for European
work councils
The
term of collective redundancies is also present in the EU Directive on
European works councils. Paragraph 3 of the subsidiary requirements
designates collective redundancies to be an exceptional circumstance,
giving rise to a consultation procedure with the EWC. Many EWC
agreements also use the term collective redundancies. This new ruling
from Luxembourg therefore has a direct effect on the competence of many
European works councils. The ruling is of particular significance since
the European Commission announced the revision of the EU Directive on
collective redundancies in April 2015 and has started official
consultation procedures with the social partners on the European level
(see report
in EWC News 1/2015).
Forthcoming event
In
autumn 2015 the EWC Academy is offering two legal seminars: one in
Luxembourg with a visit to the European Court of
Justice, another
in Hamburg on EWC legislation.
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2.
Practical tip: Who is consulted first?
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Coordination between EWC and national
works councils
This
is one of the most sensitive issues in cross-border restructuring: when
and in which order should the consultation procedures begin and how are
they connected with one another? Should the local works council be
informed first or does the European works council begin and its opinion
awaited before the national level negotiates? The legislator has
provided no clear rules on the subject.
On
the contrary, Article 12 of the EWC Directive has left the task to the
parties involved in the workplace: Information and
consultation
of the European works council "shall be linked to those of the national
employee representation bodies". The German EWC legislation in article
1-7 is a little more precise: "Information and Consultation of the
European works council is to take place, at the latest, at the same
time as with national employee representatives". However legal issues
arise here. The few court rulings related to the topic make either no
clear decision or are even contradictory. A significant number of court
decisions have only come from France. In several cases there, the
consultation procedure on the national level was suspended until the
opinion of the European works council was rendered, most recently in
April 2011 for the energy group, GdF Suez. Worth mentioning here is
also the case of Beiersdorf, the German consumer goods group, from the
year 2006 (see report in
EWC News 2/2011).
On 7 July 2015, the Dublin based European Foundation for the
Improvement of Living and Working Conditions published a legal analysis
of the issue.
What
option should works councils choose?
The
basic principle behind European works councils and why they at all
exist, is to be able to influence any strategic decisions at the level
of management hierarchy where the decisions are actually taken. Local
works councils can do nothing but react and endeavour to reduce the
effects of the decision. Furthermore, local management, as the dialogue
partner can hardly modify such decisions and is solely obliged to
implement them.
The
strongest leverage for defending employee interests comes by putting
the EWC consultation procedure upfront and by reinforcing it, e.g. by
the local work councils refusing to enter negotiations on social plans
until the EWC has rendered its opinion. A remarkable example of this is
the "European Solidarity Pledge" made by all of General
Motors’
local work councils in December 2005, which contains a list of ten
principles for socially responsible restructuring. Although plant
closures could not be prevented in the subsequent years, the paper has
not lost any of its relevance as a benchmark for other companies. The
ten points were integrated by the European trade union federations into
their guidelines starting from 2005.
A
reinforced consultation procedure
If
a European works council wishes to reinforce its influence, a look at
France can be more than useful. France is the motherland of the
consultation model and was used as a blueprint for the EWC Directive
(see report in
EWC News 3/2011).
The basic principles to be respected hereby and how long the procedure
lasts in practice can be best judged from a French perspective
(see report
in EWC News 4/2012).
It is for this reason that more and more European works councils, which
are not based in France, are reorganizing their consultation procedures
from top to bottom, à la française (see examples
in EWC News 4/2013).
Forthcoming event
The
EWC Academy organizes a seminar on the consultation procedure once a
year in Montabaur Castle. Next date: from 29 March to 1 April 2016.
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3. News
from the British Isles
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Preparations
for a new "Opt out" in London
On
15 July 2015 the new British Government announced its plans for
amending collective labour legislation. The goal is to restrict the
right to strike and to make things more difficult for labour disputes
such as in the London underground (photo). Strike pickets are to be
criminalized, employers given an explicit right to employ temps as
strike breakers and a limit put on the financing of the Labour party
through union funding. The rules for strike ballots, adopted during the
Thatcher era, are to be made much stricter.
Critics
regard these as the most radical restrictions in 30 years. The chairman
of ASLEF, the train drivers’ union spoke of methods which
bring
back memories of the Nazi period in Germany at the beginning of the
1930s. In the election on 7 May 2015 the conservative party (Tories)
once again obtained an absolute majority in the House of Commons for
the first time since 1997. The new Secretary of State for Business,
Innovation and Skills, Sajid Javid, a son of Pakistani immigrants, is
considered a fervent supporter of former Prime Minister, Margaret
Thatcher. He was employed in banking since his university graduation at
the age of 22 and most recently as a board member of Deutsche Bank
International.
Even
before the 2017 referendum
takes place on whether the UK should withdraw or remain in the European
Union (see report
in EWC News 2/2014),
the first signs of a retreat from EU social policy are already clearly
visible. The Government no longer wishes to transpose the planned EU
Directives on working time and temporary agencies (employee leasing)
into British labour legislation. This would create a situation similar
to the period of "Opt out" from EU social policy prior to 1997. There
are also rumours about a reform of the British legislation on European
works councils (TICER 2010), to further restrict the little influence
that the employees’ side already has.
The
country’s largest trade union, Unite, has threatened with a
"no"
vote in the EU membership referendum, should the Government opt out of
EU social policy. Meanwhile in Brussels, the European Commission could
postpone any further EU social policy regulations until after the
referendum so as not to upset the British Government.
Comprehensive
reform of labour legislation in Ireland
The
parliament in Dublin has been debating the Industrial Relations
(Amendment) Bill 2015 since 14 May 2015.The goal of this bill is to
reinforce collective bargaining so as to increase the coverage of
collective agreements. In the future, reluctant employers will no
longer be able to avoid shop-floor collective agreement negotiations so
easily. Originally the legislation was already announced for the end of
2013 (see report
in EWC News 4/2013).
It originates from a court ruling in the Ryanair case. By using legal
tricks the airline had continually kept opposing any real collective
bargaining (see report in
EWC News 3/2007).
Further
reform legislation, the Workplace Relations Act 2015, has already been
adopted and is to enter into force on 1 October 2015. It reorganizes
the system of labour courts and the conciliation procedure. In the
future there remains only a first instance "Workplace Relations
Commission (WRC)" and the Labour Court for the appeal procedure. In the
future the responsibilities of the four complaint and arbitration
boards, which were established over the last years on various topics,
are fulfilled solely by the WRC and remain free of charge. There are
only fees amounting to 300 € for the second instance court.
A
grand pro-European coalition between the Conservative party, Fine Gael
and the Labour party has been in government in Dublin since March 2011.
Ireland has a higher level of unionization than the United Kingdom and
the Government traditionally co-operates constructively with the social
partners. In the Irish Republic there has never been an anti-union
climate such as during the Thatcher years.
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4. Examples from the EWC
agenda
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The long road to new EU
standards: yet another EWC dissolved
Since 1 February 2015,
Wärtsilä has been without a European works
council. This engineering group from Helsinki had signed a
"voluntary" EWC agreement in May 1996 not subject to the EU Directive.
Employee representatives gave six months’ notice to terminate
it in July 2014. In such circumstances, according to article 14 of the
new EWC Directive, the procedure for the establishment of a European
works council has to start from scratch. On 27 May 2015, the Special
Negotiating Body (SNB) met in Helsinki for the first time to negotiate
a completely new EWC agreement. Wärtsilä is
the third case where the EWC has been dissolved after the major British
bank HSBC and the US IT group Hewlett-Packard (see report in
EWC News 1/2014).
Wärtsilä
acquired the German based company, L-3 Marine Systems International
(MSI) from a US group in May 2015 with 1,700 employees in 14 countries.
Germany will consequently be the second most important country after
Finland in the future EWC. If the EWC members had waited for this
transaction to give notice to terminate the EWC agreement, they would
have come under the protection of article 13 of the new EU-Directive
("structural changes"), i.e. the old EWC would have remained in office
until the SNB had concluded a new agreement.
Forthcoming
event
A legal seminar is being held
from 28 to 30 October 2015 in Hamburg to examine the effects of
"structural changes" in more detail.
No right to be consulted
despite forthcoming mega-merger
The Finnish group Nokia declared on 15
April 2015 its takeover of French competitor, Alcatel-Lucent. Both are
infrastructure suppliers for mobile, landline telephony and Internet
and each have around 50,000 employees. The goal is to achieve annual
savings of 900 M € and a better competitive position against
China. Alcatel-Lucent originated in 2006 from the merger of the French
Alcatel with Lucent Technologies from the USA and has its headquarters
in Paris. Since the sale of its mobile telephone manufacturing to
Microsoft in April 2014 Nokia is only a supplier of network equipment.
Coincidentally,
the
Alcatel-Lucent European works council met only two days later on 17
April 2015. In a press statement it demanded that management
communicate a clear business strategy and the potential savings
following the merger. It appealed to their social responsibility and
demanded job guarantees. It operates on the basis of a "voluntary" EWC
agreement from 1995 and has no right to consultation in the sense of
the new EU Directive. An attempt to update the agreement during the
merger in 2006 had already failed. In April 2007, a labour court in
Paris ruled on the scope of business reporting for the "European
Committee for Information and Dialogue" (ECID), which is the name of
the Alcatel-Lucent EWC (see report in
EWC News 2/2007). Until today, this is the only
court ruling that has ever been passed for a EWC on this matter in the
whole of Europe.
Nokia's
European works council,
established in 1993, has no right either to consultation in the sense
of the new EU Directive. Although the EWC of the subsidiary, at that
time Nokia Siemens Networks, had secured extensive consultation rights
in a case in 2013 before the "Co-operation Ombudsman", the arbitration
body of the Finnish Ministry of Labour (see report in
EWC News 4/2012). These were however lost again
following the sale of the mobile communications division to Microsoft
and the restructuring of the Nokia group. The reason behind this is an
article in Nokia's EWC agreement which stipulates that it continues to
apply as long as there are no better provisions in a new group
(see report
in EWC News 3/2014). What was originally meant as a
protection, may well prove to have a negative effect on the future
joint EWC of Alcatel-Lucent and Nokia.
European
regional committees forging EWC work
33 representatives from twenty
countries met together in Manchester on 27 and 28 May 2015 for the 20th
plenary session of the Siemens European works council. The "Siemens
Europe Committee" (SEC) was already established in 1995 in
Germany’s largest technology and electronics group.
Although the company is made up of a large number of divisions and
product groups, no European divisional works councils have been
developed, as for example with Airbus (see report in
EWC News 1/2015). On the other hand, so-called
"Cluster-Meetings" for geographical zones in Europe were established in
the EWC agreement in May 2008 (see report in
EWC News 2/2008). These regional committees are to
be further developed, e.g. for the Adriatic region.
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5. New SE
participation
agreements
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Negotiations concluded in only a
few hours
The
software house, GFT
Technologies in Stuttgart, concluded a SE participation agreement for
its 2,800 employees in the European internal market on 16 December
2014. Almost half of them come from subsidiaries in Catalonia. Since
there are only 400 employees in Germany, there is no provision for
employee representation on the supervisory board.
The
short duration of negotiations between the 13 employee representatives
from six countries and central management is remarkable. Whereas
legislation provides for up to six months, the Special Negotiating Body
(SNB) met only once and unanimously decided to use the legal subsidiary
requirements with the following exceptions: the SE works council can
hold two annual meetings (instead of only one), however the agendas of
management board meetings are not communicated. As compensation, a
quarterly teleconference between the members of the Board of Directors
and the SE works council takes place. All meetings are carried out in
English without interpretation. From the 13 seats in the SE works
council five are allotted to Spain, two each to Germany, Italy and
Poland as well as one each to France and the United Kingdom. A SE
agreement had likewise been negotiated in record time in April 2013 for
the car-hire company, Sixt (see report in
EWC News 3/2013).
Second German media group with no
co-determination
A SE agreement was signed for ProSiebenSat.1 Media
on 27 February 2015 in the Munich suburb, Unterföhring. The
media company operates six German-language television channels and is
present in a further six countries. However only 600 of the 5,000
employees work abroad. It is the second SE conversion in the German
media industry to use special provisions for the protection of
enterprises
in the field of politics, press, education and churches, the so-called
"Tendenzschutz", in order to keep the supervisory board permanently
free from employee representation. The publisher Axel Springer has
already been operating as a European company (SE) since December 2013
and has a supervisory board with no co-determination (see report in
EWC News 1/2014).
The Special
Negotiating Body (SNB) was made up of nine representatives from Germany
with one seat allotted to each of the remaining six countries. The
future ProSiebenSat.1 Media SE works council, the so-called "European
Employee board" (EEB), is composed of up to 15 members, including six
from Germany. Apart from legal information and consultation rights it
also has rights of initiative on Pan-European relevant topics such as
equal opportunities, occupational health and safety, training and
skills development. The EEB holds two annual plenary meetings. The
three-member board is consulted in extraordinary circumstances, i.e. if
at least 5% of the European workforce is involved in two countries. An
ad-hoc arbitration board may be established with three representatives
each from the works council and central management to settle any
disagreements. Both parties must agree on a chairperson, otherwise the
chair is nominated by a labour court. ProSiebenSat.1 Media previously
had no European works council.
French software house becomes SE
A
SE agreement for the 6,000
European employees at Dassault Systèmes was signed on 18
March 2015 in the Paris suburb, Vélizy-Villacoublay. The
world market leader for 3D-software is the second largest SE conversion
in France in this industry after the Atos IT group (see report in EWC
News 1/2013). Employee representation on the board of
directors is not provided for. The French works council may however
participate in the meetings in an advisory role according to the
provisions of French legislation for national public companies.
The
SE works council is composed of 22 members and holds two annual
meetings. Six seats are allotted to France, two to Germany and one to
each of the additional 14 countries. The eight-member select committee,
including its secretary, deputy and treasurer, also meets twice
annually. Following the French model, the employer is chairperson and
bears all the running costs. This includes the right to seven days
training in the first term of office. In addition the SE works council
receives the sum of 71,500 € as an annual budget for further
training or internal meetings as well as 20,000 € for experts.
Additional budgets may be negotiated for extraordinary circumstances.
The time-off work provisions have been precisely defined: the secretary
has exactly 120 hours (15 days) per year in addition to the time for
meetings.
Precise threshold values for
small countries have been defined for cross-border restructuring. For
example in a country with 250 employees the SE works council is not
involved if less than 20% of the workforce is concerned. One
particularly weak point of the agreement are the deadlines in which
consultation procedures have to be finalized. The SE Directive does not
provide for deadlines but they were introduced in January 2014 for the
French works council (see report in EWC
News 1/2014).
Further
information on the
legal form of SE can be found here.
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6. Updated
EWC agreements
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Irish
food group with new EU standards
An
updated EWC agreement for the Kerry Group was signed on 21 May 2015.
The company which is based in Tralee on the Atlantic coast in the
southwest of Ireland has 24,000 employees world-wide. Since Kerry has
considerably grown over the past years through acquisitions, EWC
guidelines for such changes in structure have now been set up.
The
EWC is composed of twelve
members and maintains the same distribution of seats as with the old
EWC Directive. This includes three for the United Kingdom, two for
Ireland and the remaining ten countries share seven seats. The
representatives have a right to training and hold meetings twice per
year, always in Ireland. The distribution of seats on the select
committee (three representatives from three different countries) also
remains unchanged, similar to the old EWC Directive. In extraordinary
circumstances the EWC is consulted before the local works councils.
There is however one major hurdle: it is only competent if at
least 45% of all employees at two sites in different countries are
involved. The flow of the consultation procedure has been defined
precisely in the new agreement: the opinion is to be rendered, whenever
possible, within 15 days following the communication of all
information. The company bears all the costs of conciliation or legal
proceedings in the case of any disputes. Since the EWC was established
in 2006 and the agreement had not been modified in the meantime, the
standards of the new EU Directive apply fully.
French
environmental group
clarifies EWC competency
An updated EWC agreement for
Veolia Environnement was signed on 8 June 2015 in Paris. The French
group with 179,000 employees world-wide does business in energy, water
and waste management and transport and has had a European works council
in place since 2005 with outstanding provisions. The EWC agreement had
even been further improved, most recently in October 2010 (see report in
EWC News 1/2011).
With
immediate effect a seat is attributed to each country with at least 300
employees; previously the threshold was at 500. Consequently, the
Netherlands, Denmark and Portugal are represented among the 36
representatives from 18 countries. The largest countries beside France
(six seats) are the UK and Germany with four seats each. In the future,
EWC competence begins already when 1,000 employees are affected by
restructuring in only one country. This corresponds to about 1% of the
European workforce. Recently in November 2014, a French labour court
ruled a threshold of 2.5% as "none-substantial" for the involvement of
the EWC (see report
in EWC News 4/2014).
Apart from
the permanent funding of experts, which is much more common in France
than in any other country, the EWC has a right to paid training and an
additional annual budget of 10,000 € for its own use. The
transport division of Veolia Environnement no longer falls under this
agreement, since they established their own European works council
following the merger with Transdev, in July 2012 (see report in
EWC News 4/2012).
Italian noodle manufacturer with
new EWC agreement
An
updated EWC agreement was signed on 10 June 2015 at Barilla’s
group headquarters in Parma under Italian jurisdiction. It adopts the
definition of information and consultation from the new EWC Directive
without however structuring the consultation procedure more precisely.
The
European works council, established in 2000, is composed of 14 members
from five countries who hold meetings once annually. One Italian
particularity is the provision for larger countries (Italy, France,
Germany and Sweden) to send one additional external trade union officer
each to the plenary meetings. A select committee of five
representatives, one from each country, carries out the day-to-day
business. It meets twice per year and in extraordinary circumstances.
The right to training for all representatives is new. In the case of
major restructuring the EWC is also competent if only one country is
involved. The competency hereby is further confirmed by the
word-for-word transcription of the so-called Recital 16 of the EU
Directive.
We
have compiled a selection of EWC agreements on a website
for download.
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7.
Newly established European works councils
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Italian cardboard manufacturer
puts an end to works council’s absence
A EWC agreement was signed on
26 March 2015 at the headquarters of Reno de Medici in Milan. There had
previously been a European works council in place from 1996 to 2008,
however it had no longer held any meetings since the acquisition of the
European sites of the Canadian group, Cascades. As part of this
acquisition, the German manufacturing plant in Arnsberg joined the Reno
de Medici group in 2008. The German works council was largely the
driving force for initiating the reinstatement of the European works
council.
Whereas
the old EWC was still based on a
"voluntary" agreement, the standards of the new Italian EWC legislation
(see report
in EWC News 3/2012) now apply. Reno de Medici has
altogether 1,500 employees in Europe who will be represented by 13 EWC
members. Seven seats are attributed to the four Italian sites, three to
Germany, two to France and one seat to Spain. One plenary meeting is
planned per year, to which external Italian trade union officers are
also invited. In addition there are two meetings of the select
committee composed of three members (Italy, Germany, and France). One
weak point of the EWC agreement is the small budget provided for
experts and training, which is mainly to be financed not by the
company, but through EU funding.
EWC establishment through legal
proceedings?
Employee representatives from
Italy, Germany, Britain, France, Spain, Belgium and Sweden held a
meeting in Pisa on 6 and 7 May 2015 to demand the establishment of a
European works council for Sofidel. This family business from Tuscany
is the second largest manufacturer of toilet tissue in Europe and has
5,000 employees in eleven EU countries, as well as in Turkey and the
USA. In recent years Sofidel has grown considerably through acquisition
of European plants of the US group, Georgia-Pacific and the Swedish
paper manufacturer, SCA (see report in
EWC News 1/2012).
Central
management allowed the deadline of six months for convening the Special
Negotiating Body (SNB) to expire. In their opinion EWC meetings are to
be held only as a video conference in English and without
interpretation. In a press conference the Italian trade
unions threatened to legally impose the establishment of a EWC on the
basis of the subsidiary requirements of Italian EWC legislation. It
would be the first case of its kind in Italy. Following documents are
available only in Italian:
A EWC for Eastern Europe
A EWC agreement for Raiffeisen Bank
International was signed on 1 July 2015 in Vienna. This
Austrian financial institution has 55,000 employees and a strong
presence particularly in Central and Eastern Europe. Besides the two
Austrian representatives, all eight of the Eastern EU member states
(except the Baltic States) are represented in the European works
council with one or two seats. The four-member select committee from
four different countries have a right to visit all sites and to hold
meetings if necessary. A plenary meeting is held twice per year. The
EWC can establish its own working groups and has a right to training.
Although the legislator provides up to three years for the
negotiations, this result was able to be reached in less than six
months. The agreement is based on Austrian EWC legislation,
which is considered as one of the best in the EU (see report in
EWC News 1/2011).
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8. Pan-European company agreements
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Demography agreement for French Catering
and Facilities Management provider
A European agreement for the
prevention of workplace age discrimination was signed on 4 March 2015
by central management and the European works council of Sodexo at the
company headquarters in the Paris suburb, Issy-les-Moulineaux. Sodexo
provides community catering and facilities’ management
services for companies, authorities, educational institutions and
hospitals in 80 countries and is ranked 18th of the world’s
biggest employers. The agreement aims at maintaining an aging employee
population longer in work and motivated. To this end, within a year,
all European sites with more than 300 employees are to establish an
action plan for the development of senior employees. The implementation
is monitored once annually by the EWC board.
Up
to now the issue of
demography has only been treated marginally by European works councils.
Only the EWC of the French PPR Holding, the parent company of Gucci,
the luxury goods group and of Puma, the sports article manufacturer,
had concluded a similar agreement in October 2008 (see report in EWC
News 4/2008). A global framework agreement on fundamental
social rights was also concluded with the trade unions for Sodexo in
December 2011 (see report in
EWC
News 4/2011).
French water and waste group promotes
equal opportunity
On 31 March 2015 in Paris the European works
council and central management of Suez Environnement signed a European
agreement on equality between women and men. Before the end of 2018 the
proportion of women with permanent work contracts and in executive
positions is to be increased to 25%. The agreement includes a section
on wage policy as well as on the prevention of sexual harassment. All
subsidiaries with more than 150 employees are to establish an action
plan on the subject. The agreement will be monitored by the
"employment and training" working group of the European works
council.
The EWC was established in July
2013 after the spin-off of the water and waste division from the former
parent company, Gaz de France Suez (see report in
EWC News 3/2013). They had already concluded a
Pan-European agreement on occupational health and safety in June 2014
(see report
in EWC News 3/2014).
Italian bank commits to
responsible sales business
A joint-declaration was signed between
UniCredit’s central management and its European works council
on 27 May 2015 in Milan. It represents the first ever European level
agreement of its kind to be signed in an Italian company. It lays down
general principles e.g. on sustainable products, promotion of
occupational training as well as a fair and transparent business
culture. The EWC had already reached an agreement on the guidelines for
training and skills development in December 2008 (see report in EWC
News 1/2009) followed by an agreement on equal treatment and
anti-discrimination in May 2009 (see report in
EWC
News 2/2009).
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9. The view
beyond Europe
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French car manufacturer
establishes World works council
On 24 March 2015,
Renault’s central management signed an agreement on a World
works council with union representatives and its European works
council. It is composed of 40 members who meet once annually and is
based on an updated EWC agreement. The European works council has now
been expanded by nine representatives from other parts of the world,
including two each from Morocco and Brazil. The world works council
also complements the international framework agreement on social
standards from July 2013 (see report in
EWC News 3/2013).
Global profit-sharing agreement
in Belgian chemicals group
A profit-sharing agreement for
26,000 employees in 52 countries was concluded between management of
the Solvay group and its World works council on 29 May 2015 at the
company headquarters in Brussels. The World works council ("Solvay
Global Forum") was only established in March 2015. After the
acquisition of Rhodia, the French chemicals group, Solvay had adapted
its EWC agreement in June 2014 to the new EU standards and in previous
years had already concluded some exemplary transnational agreements
(see report
in EWC News 4/2014).
Global
social standards in major French bank
An international agreement on
social standards as well as on human and trade union rights was signed
on 2 June 2015 at the headquarters of Société
Générale in the Paris suburban office park, La
Défense. It is the first agreement of its kind which UNI,
the global union federation for skills and services, was able to
conclude with a French bank. Although it applies to 148,000 employees
in 76 countries, in practice it will however play a particularly
important role in central and North Africa. A working group composed of
trade union and company representatives will monitor compliance once
annually. UNI had previously established a trade union coordination
group ("Global Alliance") for Société
Générale in a meeting in Marrakech (Morocco) on
14 April 2015.
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Introducing the European works
council on the Internet
The European works council of
Safran, the French aerospace manufacturer of engines and electronics
based in Paris, has its own website. Besides current news it also
includes the contact details for the select committee and all EWC
members. The website is available in French and English. The current
EWC was established following a merger in July 2008 (see report in
EWC News 3/2008). Since then, several exemplary
transnational agreements have been signed, most recently in March 2015,
on skills development and career promotion (see report in
EWC News 1/2015).
More
European works council
websites:
For
the first time new statistics also take SE works councils into account
On 19 June 2015, new
statistical data on European works councils was published by the
European Trade Union Institute in Brussels. It originates from the
on-line database of EWC agreement documents which the institute has
been maintaining since 2005. It shows that there are currently 1,071
European works councils in 1,007 companies. At present there are
negotiations on the establishment of a EWC in progress in 55 companies.
Germany with 134 European works councils is still in the lead, followed
by France with 118 and the UK with 111. The USA is represented with 163
European works councils, with various national jurisdictions within the
EU.
78 of the 99 SE works councils
recorded in the database are based in Germany. Hereby, avoidance or
freezing of co-determination rights on supervisory boards during SE
conversions often plays an important role (see report in
EWC News 1/2015). Nine SE works councils are based
in France and the remaining twelve are distributed over a further nine
countries. In the whole of Europe, Germany consequently represents
around 80% of all the SE conversions which are relevant to the issue of
employee involvement. The only country besides Germany where a slight
increase in the number of SE conversions can be observed is France.
Employee rights in the United
Kingdom
The British Trade Union
Congress (TUC) provides information about basic legal conditions for
employees in the United Kingdom in a manual available on-line in 13
languages. The manual is aimed at migrants in particular from Eastern
Europe and the Mediterranean countries. It was developed as a joint
project with trade unions from Hungary and Romania with financial
support from the European Commission.
Employee rights in the global
economy
On 1 June 2015 the Global
Labour University started a new on-line course on globally applicable
employee rights and how they can be implemented. The individual
training modules are delivered in English by university academics from
Berlin and Kassel in Germany, from South Africa and the USA as well as
by the International Labour Organization (ILO).
We
have gathered together many
other interesting websites into a collection
of links.
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European works
councils in the services sector
This
research paper released in
December 2014 and sponsored by the Hans Böckler Foundation
analyzes EWC activities in six companies. The case studies include Axa,
the French insurance group, whose EWC is dealing with the digital
transition within the company (see report in
EWC
News 2/2014), the packaging company DS Smith with one of the
best EWC agreements in the United Kingdom (see report in
EWC News 1/2013) and the Austrian packaging
manufacturer, Meyr-Melnhof, where a spectacular conflict was provoked
by the closure of an English plant in 2012 (see report in EWC
News 2/2012). The authors from the University of Fulda have
been evaluating the development of European industrial relations for
many years (see report in
EWC News 4/2009). The book is only available in
German.
European works councils in Poland
This thesis published in May
2015 deals with the effects that European works councils have on the
working environment in the Polish sites of five multinationals. Since
there are only 15 Polish companies which come under the scope of the
EWC Directive and only one European works council was established under
Polish jurisdiction, the author has analyzed companies with foreign
ownership. Currently there are representatives from Poland in one in
every five EWCs with headquarters in another European country. Besides
the impact of Polish EWC members in their site of origin, the study
also presents the perspective of Polish management. In Poland,
legislation on works councils which was previously highly controversial
has been in force since 2009 (see report in
EWC News 3/2009). The book is only available in
German.
EWC communications network manual
The European Trade Union
Institute in Brussels (ETUI) published this new manual in April 2015 in
eight languages. In the authors’ opinion, the communication
of EWC members among themselves plays a decisive role in the strength
of the whole chain, especially communication between meetings. Hereby
the select committee is considered as a "pace-setter". It should be
able to communicate in a cross-border, cross language and a
cross-cultural manner. The brochure also includes a sample
questionnaire for the internal reporting system and an interpretation
etiquette for employee representatives, in order to facilitate working
with interpreters. A manual from the same series was already published
in February 2012 covering organization and conducting of efficient and
successful EWC meetings (see report in
EWC News 2/2012).
Manual on Corporate
Social Responsibility (CSR)
In June 2015,
Eurocadres, the Council of European Professional and Managerial Staff
within the European Trade Union Confederation (ETUC) published the
results of a project on corporate social responsibility (CSR). The
brochure is available in seven languages and therefore is also very
useful for European works councils. In particular there is a discussion
on the issue of middle management who often “sit on the
fence”. There is also a discussion on possible ways for works
councils and trade unions for promoting the topic of CSR. The
Eurocadres Council also analyzed the functioning of European works
councils in 2013 (see report in
EWC News 4/2013).
We have
gathered together a collection of further
literature into a compilation.
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12. The EWC Academy:
Examples of our work
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Third meeting of works councils
in US companies
This
time the annual EWC
Academy meeting with a focus on the USA took place nearby Checkpoint
Charlie in Berlin on 11 and 12 June 2015. Many of the 17 participants
came from companies in the IT and electronics industries including
amongst others, Cisco, Oracle and Hewlett-Packard. Hermann Nehls,
Counselor for Labour and Social Affairs at the German embassy in
Washington,
gave a first-hand report on labour relations in the USA. The role of
European works councils in US companies was highlighted under the
moderation of the former EWC chairman of General Motors, Klaus Franz.
Frank Nobis, EWC chairman in the US telecommunications group, Verizon,
reported on the activities of their council. The next US meeting will
take place in summer 2016.
Training
for newly-established French EWC
On 11 and 12 June 2015, the European works council
of Edenred held its second meeting in Brussels. On this occasion, the
EWC Academy delivered training on the duties of a EWC and on corporate
social responsibility. Edenred is the world market leader of meal
vouchers and was able to establish its own EWC after its spin-off from
the Accor hotel group (see report in
EWC News 4/2014).
Another restructuring in the
Zurich insurance group
A
renewed reorganization of the group was on the agenda of the Steering
Committee meeting of the Zurich European Forum (ZEF) held from 7 to 9
July 2015. Ten employee representatives from the eight largest
countries in the group made the journey to Zürich. Central
management had already publically announced its plans on 21 May 2015 at
an Investors’ Day. 700 jobs are to be slashed.
The
ZEF, which is the name of the EWC of the largest insurance group in
Switzerland, had developed minimum standards for socially responsible
restructuring and guidelines for social plans for the first time in May
2014 (see report
in EWC News 2/2014).
The further restructuring is now to be used to develop rules for a
structured consultation procedure. The ZEF has been assisted by the EWC
Academy since November 2014 (see report in
EWC News 4/2014).
On-line questionnaire
for European works councils
Since
April 2015 a research team commissioned by the European Commission has
been examining the practical implications of the changes to the EWC
Directive in 2009. One goal of this analysis, to which the EWC Academy
in Hamburg is also contributing, is the preparation of a report planned
for June 2016 and including concrete propositions for amending the text
of the Directive (see report in
EWC News 1/2015).
Interviews
are currently underway in companies who established their European
works councils starting from 2011. With a view to comparing
these
results with older European works councils, there is an on-line
questionnaire aimed at both employee as well as management
representatives. Only companies whose EWC operate according to article
6 of the EU Directive are concerned. These are all European works
councils established between 22 September 1996 and 4 June 2009 and
whose agreements were not modified during the period between 5 June
2009 and 5 June 2011. The questionnaire is available in three languages
and takes about 15 minutes to complete.
Forthcoming event
The
results will be presented during the European works council conference
to be held on 7 + 8 April 2016 in London. The original date in October
2015 has been cancelled.
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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 625 employee
representatives from 236 companies have taken part including many of
them for several times. This represents around 19% of all transnational
works council bodies in Europe. In addition there are numerous in-house
events and guest lectures given to other organizations.
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EWC
News is published by:
Authors
collaborating on this issue:
Werner
Altmeyer, Katharina Barrie, Rita da Luz
Distributor
of the German version: 20,259 readers
Distributor
of the English version: 3,441 readers
Distributor
of the French version: 3,335 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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