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20
October 2015
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1.
New
industrial relations in France and Luxembourg
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Social
dialogue to be modernized
A whole package of legal regulations came into
force in France on 19 August 2015 which substantially modifies both
labour relations as well as participation rights on supervisory boards.
The social dialogue and employment bill or "loi Rebsamen", named after
François Rebsamen (photo) who was the socialist employment
minister until recently, aims at modernizing labour
relations. According to the government, French labour relations are
marked by complex and rigid regulations and a "culture of mistrust".
At first negotiations were
planned to allow the social partners to mutually agree on the contents
of legislation. These broke down however on 25 January 2015 and the
government subsequently released its own bill. The legislation is an
important part of their reform program for relaunching the economy and
for reducing unemployment, which, at nearly 11%, is more than twice as
high as in Germany. Changes to works council consultation procedures
had already come into force on 1 January 2014 for restructuring matters
(see report
in EWC News 1/2014).
Lots of supervisory boards with
employee representatives in the future
In France, companies have only
been legally obliged to integrate employee representatives with full
voting rights on administrative or supervisory boards since June 2013.
The threshold was set however very high: codetermination applied only
to companies starting from 5,000 employees in France or to those with
more than 10,000 world-wide (see report in
EWC News 2/2013). Prior to 2013 there had only been
codetermination in public or formerly state-owned companies. The new
legislation lowers the threshold down to 1,000 employees in France (or
5,000 world-wide). The number of companies covered by codetermination
(so far about 200) has therefore considerably risen. The number of
employee representatives will also increase although they are not
allowed to exercise a works council mandate at the same time.
Reform of works council
structures
Up to now, in French companies,
there have been three representative bodies operating in parallel: the
personnel delegates, the works council and the safety and hygiene
committee. In the future, in companies with under 300 employees, these
three bodies are to be combined into one and also on a voluntary basis
in larger companies. The works council consultation rights have also
been simplified. So far there have been 17 compulsory consultations per
year, based on 50 different legal regulations. These have now been
merged into a dedicated chapter of the labour code and are restricted
to three core topics:
- Consultation
on strategic
orientation of the company
- Consultation
on the economic
and financial situation
- Consultation
on social policy,
working conditions and employment
The works council is still
chaired by the employer. For internal discussion similar to German
works council meetings, the employee side always meets for preliminary
briefings. French works council meetings have a strong legal character.
The employer must be able to prove that the consultation procedure has
been correctly carried out. Otherwise the implementation of any
measures can be stopped through court action. In the future meetings
may also be organized as video conferences and employers may record
them. This also applies to central and group works councils as well as
to European works councils under French jurisdiction.
From a French perspective,
consultation has always included a detailed analysis of any subject
matter by external experts chosen by the works council. Only
subsequently does the works council render its opinion and concludes
the consultation. The European Works Council Directive was also based
on this philosophy (see report in
EWC News 3/2011).
Luxembourg changes from Belgian
to German model
Legislation from 23 July 2015 reforming the social
dialogue within companies marks the beginning of a new era for
Luxembourg. It will come into force on 1 January 2016 and introduces
German-style works councils. The Belgian-style works councils which
have existed since 1974 as parity-based commissions of employer and
employee representatives in companies with more than 150 employees, are
to be dissolved. In the future a works council can be established in
all companies with at least 15 employees. Originally the legislation
was due to enter into force in 2013 (see report in
EWC News 1/2013), but was delayed due to a
government crisis.
The works council
("délégation du personnel") has information and
consultation rights which are closely modelled on the text of the new
EWC Directive and in addition also codetermination rights on specific
topics of personnel and social policy in companies with more than 150
employees. There are representatives responsible for occupational
safety and equality and the employer bears the cost of experts chosen
by the works council itself. One works council member is completely
exempted from work in companies with at least 250 employees and two
from 501 employees onwards. A general employee assembly takes place
once a year during working hours. Each works council member has a right
to leave for training. An arbitration board ("commission de
médiation") with a neutral chairperson is provided for the
resolution of disputes.
The Christian trade union
confederation LCGB criticized the legislation since it transfers tasks
for which unions were previously responsible, to the works
councils. The social-democratic trade union confederation, OGBL has
welcomed the new legislation. The employers' confederation took a
negative view. The last works council elections were held in November
2013 in the old legal context. More than 50% of all seats were allotted
to non-union candidates (see report in
EWC News 4/2013). The following texts are only
available in French:
Forthcoming event
The EWC initiation seminar is
being held in Montabaur from 29 March to 1 April 2016 (half-way between
Frankfurt and Cologne, with high-speed train station). It will also
cover different systems of labour relations in the most
important
EU-member states.
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2.
Bargaining systems and labour law in further countries
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Reconstructing
the collective bargaining system in Greece
Under
pressure from the Troika,
Greece has been experiencing a decline of its collective bargaining
system since 2011. Labour legislation standards such as the principle
of "favorability" to the employee as well as government's
right to declare agreements as generally binding have been completely
abolished. Industry-wide collective agreements can hardly be found any
longer.
The
Syriza government, elected
for the first time in January 2015, announced the reconstruction of the
Greek collective bargaining system as one of its most important
priorities and submitted draft legislation in April 2015. This however
failed due to resistance from creditors. In the end though and largely
hidden from the public eye they were able to push forward their
proposals. The third memorandum with creditors from August 2015 makes
provisions for analyzing the development of the collective bargaining
system in collaboration with independent experts and international
organizations (including the International Labour Organization, ILO)
with the goal of accomplishing further reforms which adhere to "EU best
practices". Explicitly excluded is a simple "return to the political
objectives of the past".
Protests against "new social
model" in Lithuania
On 10 September 2015,
Lithuanian unions held demonstrations in front of the Parliament
building in the capital Vilnius, in protest against labour legislation
reforms planned by the social-democratic government. They are to be
adopted in October 2015 and so far have not been coordinated with the
social partners. A new social model is to be introduced to make the
country more competitive and employment and social rights completely
modernized. The notice period for dismissals is to last only three
days, compensation and protection rules for pregnant women and elderly
employees substantially reduced and short-term employment contracts
widely developed. In the future restrictive rules are to apply to trade
union activities. Lithuania has an unemployment rate of 9.6% and was
the last of the three Baltic states to join the Euro-zone on 1 January
2015 (see report
in EWC News 3/2014).
Threats to collective
bargaining system in Finland
A
general strike took place in
Finland on 18 September 2015 in protest against cutbacks in the social
system and restrictions to collective bargaining. The governing
conservative coalition which has been in power since 29 May 2015 in
collaboration with a right-wing populist party, wants to reduce annual
vacation, limit extra-pay for overtime and Sunday work and generally
get rid of the payment for two bank holidays as well as the first day
of paid sick leave.
At
first the government wanted
to conclude a "social pact" with the social partners. This fell through
on 21 August 2015 and on 9 September 2015 they unilaterally announced a
set of measures to reduce labour costs. In the future collective
agreements will no longer regulate minimum but rather maximum terms and
conditions. The trade unions see this as an attack on the freedom of
coalition. Finland has been in recession for years with rising
unemployment, reaching currently 9.7%.
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3. Company
policy disputes make headlines
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SAS
cabin crew take Swedish trade union to court
190 cabin-crew members from the
Scandinavian airline SAS filed legal proceedings on 2 June 2015 against
the trade union, Unionen, before the labour courts in Stockholm. As
part of a recovery plan, Unionen had agreed to a reduction in the cabin
crews' pension scheme in a shop-floor agreement in November 2012. As a
result the pension rights acquired in the foregoing years of salary
concessions have, to a large extent, been lost. According to the
employees concerned, the trade union had acted without their explicit
consent and therefore went beyond its remit. It had treated the money
of the cabin-crew as if it were its own. Unionen argued that without
the recovery plan SAS would have gone bankrupt with the loss of many
jobs.
Ryanair to leave Denmark
The Industrial Court of Denmark
passed a ruling on 1 July 2015 concerning recognition of collective
bargaining at the Copenhagen airport in the Ryanair case. The low-cost
Irish airline had opened its base on 26 March 2015 and has refused to
enter into collective bargaining with Danish unions. The
reasoning behind this is similar to the one already presented in other
countries: all employment contracts in Ryanair come under the
jurisdiction of Ireland where the company has its headquarters. In
France in October 2013, this attitude had almost led to the
confiscation of airplanes by the public prosecutor (see report in
EWC News 4/2013).
Following
the court ruling the
Danish trade union confederation, LO, called for solidarity actions on
18 July 2015. As a result Ryanair would have been excluded from
refueling, baggage handling and catering services. Solidarity actions
were also announced against Ryanair for 23 July 2015 at the Billund
airport in Jutland. Central management consequently decided on 15 July
2015 to completely withdraw from Denmark and fly in the future from
Kaunas in Lithuania. Ryanair intends to challenge the court decision
before the European Court of Justice in Luxembourg.
Dispute over bargaining unity in
British bank
On 14 July 2015, the major
London-based bank, Lloyds, signed a new company agreement on employee
representation with two trade unions, Unite and Accord. Both are
affiliated to the British union confederation TUC and in the future
will negotiate on all collective matters for the entire British
workforce. Lloyds Trade Union (LTU), the largest union in the company
with its 42,000 members is not affiliated to the TUC and has been
derecognized as a party to collective bargaining. It is therefore
immediately excluded from participating in all representative bodies
and can only represent their members on an individual basis, as would a
private attorney.
Lloyds
Banking Group with
85,000 employees world-wide originated in 2009 following the merger of
Lloyds TSB with the Halifax Building Society and the Bank of Scotland.
The rivalry between the somewhat more militant LTU and the two TUC
trade unions is a direct consequence of this merger, since each union
had their bastion in a different bank. There were negotiations for
three years on a partnership but with no success. The situation reminds
us of the German transport sector where small unions were acting
against the DGB affiliated unions. In Germany "derecognition" has only
been explicitly made possible since July 2015 by means of the
Collective Bargaining Unity Act (see report in
EWC News 4/2014).
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4. Court rulings on EWC
matters
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No right to consultation for
national subsidiary
On 21 May 2015 the Versailles
appeal court rejected the claim of the European works council of
Transdev, a French transport group, to the right for Information and
Consultation on the future of the bankrupt Ferry operator SNCM from
Marseille. The court, situated in a historical building (photo) near
the famous palace, confirmed the first instance ruling of November 2014
(see report
in EWC News 4/2014). Since both companies have their
headquarters in France and SNCM only represents 2.5% of the Transdev
workforce, this is not a transnational matter in the sense of the EWC
Directive.
The
court furthermore dealt
with the question as to who may file a complaint in the name of a
European works council. In this case there were 14 representatives (two
thirds all EWC members). Central management argued that individual
delegates may not go to court in the name of the EWC, since they had
been given no authorization to do so. The EWC should have adopted a
resolution during a meeting with the majority of its members. The
judges however accepted the filing from 14 representatives, since the
convening of an extraordinary EWC meeting would require a considerable
amount of time and therefore prevent a possible infringement from being
resolved in time.
Trade
unions cannot take to court on behalf of EWC
On
17 July 2015 the district court in the Paris suburb of Nanterre
rejected the injunction filing from two trade unions against mass
redundancies planned at Total. The French oil group plans to cut 180 of
the 430 jobs in the La Mède refinery near Marseille and 180
out of the 580 at the Lindsey Oil Refinery in England, on the North Sea
coast. While the CGT in La Mède went on strike for
altogether 48 days (photo) the majority of the staff and the three
remaining trade unions did not participate. Furthermore the
consultation of the EWC did not proceed as the CGT would have liked.
Consequently
the CGT, together with the British trade union Unite, started legal
proceedings against central management. The judges expressly confirmed
the trade unions' right to claim for a correct consultation procedure
before French courts. However, in this particular case, Total's EWC had
been informed in detail about management plans in its last meeting on
the basis of documents. So the majority of the EWC did not support the
legal action taken by the two trade unions. According to the court, in
such a situation trade unions may not substitute themselves for the
European works council. Both of the unions must now equally bear the
legal expenses of 5,000 €. Total's EWC agreement was last
revised in October 2012 and is considered as one of the best in France
(see report in
EWC News 4/2012).
German
EWC legislation before the Federal Labour Court
The
EU Directive on European works councils has been in existence since
1994. Up to now, no legal dispute for infringement of EWC rights has
ever come before Germany’s highest Labour Court. On 12
October
2015, the labour court of the Federal State of
Baden-Württemberg
opened the way for a case before the Federal Labour Court following its
rejection of a second instance injunction filing.
The
legal dispute arose as a result of a plant closure of the Australian
packaging group, Amcor in Neumünster (Northern Germany) at the
end
of 2014 and for which the European works council had not been correctly
informed and consulted (see report in
EWC News 1/2015).
In the end, the courts were only concerned with the conformity of the
transposition of the EU Directive into German EWC legislation. In April
2011, there had been a clear decision of the conservative-liberal
majority of the German Bundestag, at the time, to set a maximum fine of
only 15,000 € for infringement. The former social-democratic
opposition were unsuccessful in pushing through an amendment for
tougher sanctions (see report in
EWC News 1/2011).
Many lawyers consider this as a disregard for the provisions of the
European legislator. The EWC Directive explicitly requires "sanctions
that are effective, dissuasive and proportionate in relation to the
seriousness of the offence". This issue will probably be first taken up
to the European Court of Justice in Luxembourg before the Federal
Labour Court makes a final ruling.
Forthcoming
event
A legal seminar covering
relevant court rulings is being held from 28 to 30 October 2015 in
Hamburg. Last minute registration is still possible.
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5. Mergers setting
the EWC
agenda
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Demands for no-redundancy
guarantee
The
European works council of
the Swiss building materials and adhesive manufacturer, Sika, met at
their Bad Urach production site (South Germany) on 23 July 2015. The
company with 17,000 employees world-wide and controlled by a family
holding is to be sold to the French group, Saint Gobain. In an open
letter to Saint Gobain's CEO the EWC demanded guarantees that no jobs
will be lost for all sites in the first three years following the
acquisition as well as no reductions in wages or site-specific social
security benefits.
The EWC fears that
parts of Sika could be spun-off and sold to compensate for the high
cost of the acquisition. The representatives have made it clear that
"due to these issues which, for us remain unresolved, we are of the
opinion that the best solution for Sika and its employees would be for
it to remain an independent Swiss company". Saint Gobain is one of the
ten largest French industrial groups with 180,000 employees in 66
countries and has already had a European works council in place since
1988 whose agreement was last updated in May 2009 (see report in
EWC News 2/2009). Sika's EWC was established in 1996.
Merger of Coca-Cola bottling
companies
The merger of three major European bottling
companies; Coca-Cola Enterprises, Coca-Cola Iberian Partners and
Coca-Cola Erfrischungsgetränke took place on 6 August 2015
creating a new company, Coca Cola European Partners based in London.
The new company has 50 bottling plants in 13 countries with 27,000
employees, of which 9,500 in Germany. The US parent company produces
only concentrates. Bottling is undertaken by independent, partly
public-listed firms, who only use the brand name of Coca-Cola under
license. Coca-Cola Hellenic Bottling for Italy, Austria and Eastern
Europe is not involved in the merger. It is the only company in Europe
with a European works council under Greek law (see report in
EWC News 3/2012). Out of the three companies
involved in the merger, Coca-Cola Enterprises is the only one to have
had a EWC established in 1998 under Belgian jurisdiction. The
establishment of a new European works council is now pending for the
new company under British jurisdiction and covering all 13 countries.
Spanish workforce once again
makes headlines
Since Coca-Cola Iberian
Partners had only plants in Spain and Portugal, there had been no
initiative for the establishment of a European works council until
recently. The conflict around the closure of four bottling plants
however gained a lot of attention throughout Europe. In June 2014, the
Spanish Supreme Court cancelled the dismissal of 1,190 employees, since
a correct consultation procedure had not been carried out with the
Spanish works councils (see report in
EWC News 2/2014). On 13 July 2015 following further
legal disputes, the judges finally ordered the immediate reinstatement
of all dismissed employees. The Fuenlabrada plant near Madrid was
reopened on 7 September 2015, not as bottling plant, but as a logistics
center.
This conflict did not only make
headlines within the EU and involved the European Parliament. Recently
there was even a report in the New York Times which posed the question:
Can a Spanish court force a multinational company to bottle Coca-Cola
against its own will? Should this issue be taken to the European Court
of Justice in Luxembourg, a fundamental question would be up for
debate, which also concerns many European works councils: what does a
correct consultation procedure consist of and
what consequences if central management does not consult
correctly?
European works councils continue
to grope in the dark
Although
the merger was already
announced in April 2015 and in the meantime most authorizations have
already been given, both European works councils have only received the
same information as is also available to the press. At a meeting held
in Brussels on 11 September 2015 the trade union coordination group for
Nokia and Alcatel-Lucent criticized the systematic violation of their
Information and Consultation rights. There is neither information on
the time-schedule of the merger, nor on the procedure, nor on the
expected results especially regarding jobs. The acquisition of the
Franco-American IT group Alcatel-Lucent by the Finnish Nokia group is
due to be finalized in 2016. The agreement of the French government is
still pending.
No legal
right on consultation
Since
both European works councils operate on the basis of a "voluntary"
agreement dating back to 1996 and before, they are therefore not
subject to the EU Directive and depend on the exact wording of their
EWC agreements. Although the agreements were revised in the past years,
in both cases no specific right to consultation has been included in
the sense of the new EU standards. However both councils have already
had experience with legal disputes (see report in
EWC News 2/2015).
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6.
(Re-)Negotiation of EWC agreements
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Full-fledged
EWC for Dutch HR service provider
A revised EWC agreement for the
Randstad Holding was signed under Dutch jurisdiction on 10 July 2015.
For the first time, the Platform for Social Dialogue established in
1996 will become a full-fledged European works council legally based on
the new EU Directive. During the last update of the agreement in
November 2011 the new EU standards on Information and Consultation and
a right to training had already been incorporated (see report in
EWC News 1/2012), but it remained as an old
so-called "voluntary" agreement.
In
the future the European works council will meet twice annually at the
company headquarters in Diemen near Amsterdam. All representatives have
an annual time-off work allowance of five days in addition to the
meetings, and the three members of the steering committee seven.
Mandates are allocated in exact accordance with the new EU Directive:
each country in the European Economic Area is allocated at least one
seat for every 10% of the European workforce (or fraction thereof). A
further two seats are allocated to external union representatives and
if necessary experts may also being called in. Randstad is the second
largest Human Resources service provider in the world with 28,000
employees in 39 countries..
Belgian chemicals group clarifies
consultation procedure
A
"Charter on good
collaboration practice" was signed on 11 September 2015 in Brussels
between Solvay's central management and the EWC. It defines the process
of the consultation procedure with the European works council and the
national employee representatives for large projects and in important
aspects of HR policy. The EWC agreement from June 2014 has hereby been
further clarified (see report in
EWC News 4/2014). Central management submits
detailed plans to the EWC's select committee at an early stage and
before a final decision is made. In parallel the information is passed
on to the local work councils of involved countries.
The
EWC and central management
then determine the schedule for discussions at the national level and
the further steps on the European level. Finally the national works
councils adapt any measures to the legal constraints in their
respective countries. This method agreement has a duration of two years
(as a test) and does not apply to restructuring or mergers and
acquisitions. Solvay concluded a globally applicable agreement on
profit-sharing in May 2015 (see report in
EWC News 2/2015).
The
topic of coordination
between the EWC and national works councils is a sensitive issue which
has not been clearly defined by law. The European Foundation for the
Improvement of Living and Working conditions in Dublin published a
report on the subject in July 2015 which also analyzes relevant court
rulings (see report
in EWC News 2/2015).
Forthcoming event
Solvay's EWC chairman and the
author of the report from the European Foundation will give
presentations at the EWC conference on 25 January 2016 in Hamburg.
Spanish hotel
chain establishes
European works council
A
EWC agreement for NH Hoteles was signed on 9 October 2015 in Madrid.
The third largest hotels group in Europe operates over 400 properties
in 29 countries around the world. Besides Spain, the Special
Negotiating Body (SNB) had representatives from Germany, Austria,
Belgium, the Netherlands, Italy and Romania. Further countries will
soon be added when the new EWC is established with 17 representatives
(including four from Spain).They represent around 10,000 employees in
Europe and elect a five-member steering committee.
The
EWC
agreement is based on the new EU Directive and goes beyond its minimum
requirements in some aspects. These include provisions for limiting
precarious employment and combating youth unemployment which are
explicitly mentioned in the document. Such issues are of particular
concern in Spain and other crisis countries. Furthermore, Spain
continues to considerably lag behind in the establishment of European
works councils. A EWC has only been established in a further eleven
companies and most recently in January 2015 for Gestamp, the basque
automobile supplier (see report in
EWC News 1/2015).
We
have compiled a selection of
EWC agreements on a website
for download.
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7.
New
SE participation agreements
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Seed producer avoids full-parity
participation on supervisory board
An
SE-agreement was signed for
KWS Saat, the world's fourth largest seed producer from Einbeck
(Germany) on 16 March 2015. The majority family-owned business with
just under 2,000 employees in Germany (5,000 world-wide) was able to
avoid a parity-based supervisory board by the SE conversion. The board
continues with one-third participation with the employee side obtaining
two of the six seats.
For the first term
of office the supervisory board mandates were assigned by the Special
Negotiating Body (SNB). In the future a pan-European direct election
will be organized for the entire workforce, such as the one already
agreed for Warema, the Bavarian metalworking company in June 2009 (see report in
EWC News 2/2009). The SE works council which is
called "European Employee Committee (EEC)", is composed of eleven
members, including three from Germany and eight from the remaining 16
countries. It meets twice annually and elects a three-member steering
committee. The EEC may establish additional sub-committees. The
agreement has an unusually long duration and runs to the end of 2027.
KWS Saat did not previously have a European works council.
French engineering group
establishes SE works council
A
SE participation agreement was signed for Akka Technologies on 30 March
2015 in Paris. Over the last years the family-owned business has
substantially grown through acquisitions and has today 11,000 employees
world-wide in 20 countries. This includes 5,600 in France and 3,000 in
Germany, where the majority share of MBtech Group was taken over from
Daimler in 2012. Only a few days previously in March 2015, Dassault
Systèmes, the French IT group, had likewise concluded a SE
agreement (see report in
EWC News 2/2015).
In Akka Technologies the SE works council meets twice annually and is
chaired by the employer (French model). A select committee of three
employee representatives carries out the day-to-day business and meets
at least twice annually. There are no provisions for employee
participation on the board of directors.
European call center market
leader becomes SE
A SE agreement for Teleperformance was signed on 9
June 2015 in
Paris. This French company has 182,000 employees in 62 countries
(including 33,000 in the European Economic Area) and is in contact with
20% of the world's population. It is the largest ever SE conversion to
take place in France and one of the largest in the EU.
Negotiations
for the establishment of a European works council had begun on 12 June
2014 in a meeting held in Brussels. Since central management had
announced plans for its conversion into a European Company (SE), the
EWC negotiations were broken off on 18 October 2014. In such cases the
Special Negotiating Body (SNB) composed of 33 representatives from 19
countries has to be completely reelected. After several rounds of
negotiations they reached an agreement on the establishment of a SE
works council but could not obtain any participation on the board of
directors.
This
is the fourth SE conversion in the current year in France, where the
popularity of this legal form is steadily growing. In the meantime,
France holds second place in the number of SE agreements in the EU.
Germany continues however to represent half of all SE conversions in
the whole of Europe (see report in
EWC News 4/2011).
We
have put together further information on the SE legal form on
a special
webpage (in German).
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8. First ever SCE conversion in Europe
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German meat processor becomes European
Cooperative Society (SCE)
A
SCE participation agreement was signed on 21 April 2015 for Westfleisch
at their headquarters in Münster (Germany). It is a premiere
for
the whole of Europe. The Westfalian slaughter-house group has been
operating as a European Cooperative Society (Societas Cooperativa
Europaea) since 31 August 2015. This legal company statute
has
already been available since 2006, but up to now, not a single company
had made use of it. Similarly to the European Company (SE), the
conversion of a national cooperative into a SCE is only possible if
central management establishes a Special Negotiating Body (SNB) with a
goal of reaching an agreement on employee participation. If these
negotiations fail, legal subsidiary requirements apply, as for the SE.
The
Westfleisch SNB was composed of ten representatives from Germany and
the seats belonging to the other five countries remained vacant due to
lack of candidates. Only countries with at least 250 employees will
have representatives on the future SCE works council. Therefore all
nine seats were allotted to Germany with one additional external union
representative. They meet once annually and day-to-day business is
carried out by a 3-member steering committee. Information and
consultation rights are identical to the provisions for a SE works
council. The SCE works council has a right to experts, interpreters and
to training courses. Romania is the only other country with employee
representatives which is not the case for the Westfleisch subsidiaries
in Lithuania, Poland, Hungary and Sweden.
Never full-parity participation
on Supervisory board
Henceforth
Westfleisch's supervisory board will have 13 members including five
staff representatives (currently four out of 14). The cooperative has
4,200 farmers as members. Employee representatives are elected by the
SCE works council from a list of candidates proposed by the steering
committee and taking into account the size of individual subsidiaries.
The SCE works council can adopt or reject this list of candidates
(block vote), but cannot make any changes to it. In Germany Westfleisch
has 1,930 employees, and would have had to establish full-parity
participation if exceeding the threshold of 2,000. Through the
conversion to a SCE central management was able to avoid this - which
is also the underlying motivation for a great deal of SE conversions.
Similarly to the consumer research group GfK in 2009, the works
councils were able to obtain more than one-third participation through
negotiation (see report in
EWC News 1/2010).
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9. The view
beyond Europe
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Global network at Finnish
packaging manufacturer
On 1 June 2015, unions from
eight countries where Huhtamäki has production sites
established a world-wide network, a sort of forerunner to a World works
council. Central management also participated in the meeting and gave a
presentation. There was a clash when it came to address the situation
in the USA. Local management of a factory in California had
commissioned so-called "anti-union consultants" to prevent the
establishment of employee representation. Central management however
did not wish to discuss the topic in Helsinki and left the meeting.
European companies often do not comply to the social standards
prevalent in Europe in their sites in the USA (see report in
EWC News 3/2010).
Global social standards in ABN
AMRO bank
On 1 September 2015 an
international framework agreement was concluded at the bank’s
headquarters in Amsterdam. It strengthens the social dialogue with
trade unions world-wide and promotes a new model of "sustainable
banking". Compliance to the agreement is overseen once annually by a
monitoring committee made up of union and management representatives.
It is the first agreement of its kind in the Dutch financial industry.
As a result of the financial crisis ABN AMRO bank has been in ownership
of the Dutch State since 2010.
African
mining company sentenced in Paris
On 10 September 2015 an appeal
court in Paris sentenced the manganese producer,
Comilog, subsidiary of the French mining company Eramet, to
pay compensation to 600 former employees from the Congo. They were
dismissed in 1992 without notice or compensation following a blockage
caused by an accident on a railway line and the subsequent halt in
production. The ruling is unique and a legal sensation after many years
of legal battling. Never before has a company been held financially
liable by a court in France for its staff policy in Africa.
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European works council with own
Internet site
The European works council of
the IT group Econocom, based in Brussels, was established in 2007. Over
the last years it has developed its own Internet site in five
languages. It includes the minutes of meetings, reports on its
activities and seminar materials. After the conversion of Econocom into
a European Company (SE) the European works council will be converted
into an SE works council. This was on the agenda of an extraordinary
meeting of the select committee held on 21 July 2015, where central
management presented the plan for SE conversion for the first time. In
2009 the EWC had concluded a transnational agreement on social
consequences of a relocation of business activities to Morocco.
Other
European works council
websites:
Europe in figures
The Federal
Statistics Bureau
in Wiesbaden regularly publishes current statistics on the European
Union and Germany in a country comparison on its Internet site. It
shows Germany had the lowest unemployment rate of all EU member states
in August 2015 and Greece and Spain the highest. The website is also
directly linked to the country profiles of the European Union's
statistics bureau (Eurostat) in Luxembourg. This enables statistical
comparisons to be made between any two EU member states.
Stop letter-box companies
The European Federation of
Building and Wood workers in Brussels has demanded the European
Commission to close loopholes in legislation so as to prevent in the
future the establishment of fake companies in other EU countries with
the goal of avoiding social security contributions. To this end it has
started a campaign and a dedicated website. The question is not only
relevant for social security contributions, but also concerns
codetermination on supervisory boards (see report in
EWC News 1/2015).
Labour law in 76 countries
The
WageIndicator Foundation
has been maintaining a website on wage comparisons for 15 years. This
union-friendly institution of the University of Amsterdam analyzes
developments in wages and bargaining policies in many countries in
collaboration with the Hans Böckler Foundation in Germany. The
"Collective Bargaining News" to be found on the website covers the
bargaining policies of many EU member states. There is furthermore a
collection of the most important characteristics of labour legislation
in 76 countries throughout the world.
We
have gathered together many
other interesting websites into a collection
of links.
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Eastern European trade
unions on course for EU?
This
research report was
published in May 2015 and examines the integration of trade unions from
the six largest Eastern European acceding countries (Bulgaria, Poland,
Romania, Slovakia, Czechia and Hungary) into the EU policy system of
Brussels. It is their participation in the social dialogue bodies which
is of primary importance according to the report (see report in
EWC News 1/2014). The authors also highlight the
role of Eastern European trade unions in European works councils. Trade
unions from the new member states generally perceive the EU in a
definitely positive manner and its influence on national policies
mostly as useful. The study was sponsored by the Hans Böckler
Foundation in Germany.
Skills development on the EU
agenda
The July 2015 edition of the
Social Agenda magazine from the European Commission deals with
vocational training and employee skills development. The magazine for
example presents projects from Portugal and Czechia which are sponsored
by the European social fund. The European Commission is currently
working on a new strategy to optimize existing instruments and
subsidies. An important cornerstone hereby is in particular the
modernization of vocational training as well as a comprehensive
development of skills and qualifications. It can already be observed
today that youth unemployment is lower in those EU member states with
an efficient system of vocational training.
Organizing global value chains
In August 2015 the Friedrich
Ebert Foundation published this analysis on the challenges of global
production and supply chains on trade unions policies. It includes a
definition of global value-added chains and provides examples of the
increasing power of multinational companies in new sectors of the
economy, including the US e-commerce company Amazon (see report in
EWC News 3/2014). Union demands can only be enforced
here by taking into account the entire value-adding chain beyond
national borders. The study also provides some positive examples of
international solidarity like the US campaigns at the Ikea group, the
Swedish furniture manufacturer (see report in
EWC News 2/2011) or at Deutsche Telekom
(see report
in EWC News 2/2011).
EWC case studies for
automobile suppliers
The results of
a research project from the Ruhr University in Bochum (Germany) which
deals with European works councils in the car suppliers' industry were
published in August 2015 (in German only). Five companies were analyzed
including Bosch
(see report
in EWC News 2/2010) and Continental (see report in
EWC News 1/2012). Central question hereby
was how and whether the European works councils was able to affect
company strategies concerning distribution of production volumes
and hereby defend interests of employees. The same research
institute had already compiled a report on car manufacturers in 2010
(see report
in EWC News 1/2010).
We have
gathered a collection of further
literature into a literature
compilation.
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12. The EWC Academy:
Examples of our work
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Textile chain prepares SE
conversion
The EWC Academy organized a
seminar for the German works council members of the fashion company,
Tom Tailor Holding, on 28 July 2015 at their headquarters in Hamburg.
Guidelines for the planned SE conversion were discussed as well as the
establishment of the Special Negotiating Body (SNB).
Tom
Tailor with over 7,100 employees is present in 14 EU countries, besides
Germany mostly in Austria and the Netherlands. Since there are around
5,000 employees in Germany and therefore more than the legal threshold
of 25% of the European workforce, negotiations are underway on the
establishment of a parity-based supervisory board. The establishment of
a SE works council will also be part of the negotiations. Up to now,
Tom Tailor has not had a European works council.
Visit
to European Court of Justice in Luxembourg
From
28 September to 2 October 2015 the EWC Academy held a seminar in
Luxembourg on EU labour law and its effects on German labour
legislation. During a visit to the European Court of Justice (photo
shows some of the participants) the role and tasks of the institution
were explained. A further item on the agenda of the seminar week was a
visit
to the manufacturing plant of Japan Tobacco in Trier, where the
co-chairman of the European works council reported on its activities.
Communication training for French
parcel service
The
European works council of GeoPost met on 15 and 16 October 2015 in
Prague. The agenda included a communications training for the delegates
from nine countries organized by the EWC Academy. GeoPost is the second
largest parcel delivery provider in Europe and operates the parcel
division of French state-owned La Poste as DPDgroup. The EWC
was
established in May 2008 (see report in
EWC News 3/2008) and in 2013, signed a European
Social Charter with central management (see report in
EWC News 3/2013).
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13.
Current seminar schedule
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The EWC Academy and its
forerunner organization,
have been organizing and delivering conferences and seminars
for 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 councils in Europe. In addition there are numerous in-house
events and guest lectures organized elsewhere.
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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: 20,188 readers
Distributor
of the English version: 3,435 readers
Distributor
of the French version: 3,354 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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