1.
Will
codetermination become the EU standard?
|
European trade unions make historical
decision
The
European Trade Union Confederation's executive committee met on 21 and
22 October 2014 in Brussels for a sort of "interim union congress". It
is the highest decision-making organ, which meets between
major
Union Congresses held every four years. According to a report from the
Hans Böckler Foundation there has now been a "historical
break-through”. The long-lasting controversy on
codetermination
on supervisory boards has been settled. The following texts are
available only in German:
In
the past differing opinions within the trade union movement are to be
explained by the very different historical experience with employee
participation in Corporate Governance. While this is common in
Scandinavia even in small companies (Sweden starting with 25 employees,
Norway with 30, Denmark with 35, Finland with 150) and extensive
regulations exist in others (one-third participation in Austria
starting with 300 employees, in Germany with 500, in Luxembourg with
1,000, and parity-based supervisory board in Germany starting with
2,000 employees), there are a number of West European countries with no
practical experience at all in the matter. This applies in particular
to Italy, Spain, Belgium and the United Kingdom. Participation on the
supervisory board in countries such as Hungary, Slovenia, Czechia and
Slovakia is based on the Austrian model. On the other hand Poland and
Romania have taken another path – and are usually completely
without participation.
European Company Directive (SE)
Since
October 2004 companies which do business in several EU countries, have
the choice between the national (German, French, British etc.)
corporate forms and a European Company ("Societas Europaea" = SE). In
order to guarantee employee participation rights on the board of
directors or supervisory boards, in addition to the EU Statute there is
also a EU Directive on the involvement of employees in the SE.
Participation rights are to be negotiated in-house, as with the
European works council, by a specifically established Special
Negotiating Body (SNB). The “before and after”
principle
applies hereby; if 25% of the European workforce is already covered by
participation then it remains in force. A dynamic approach is however
missing, should the company later grow. One single country totalizes
around half of all SE transformations in Europe where employee
participation plays a role, namely Germany. Employee codetermination
"freezing" or avoidance plays a major role in this (see report in
EWC News 4/2011).
While
the SE Directive puts German codetermination under some pressure, other
countries are experiencing an increase in participation possibilities.
Employee representatives from Italy, England, Belgium and Poland have
now consequently found their way onto SE supervisory boards. In 2013,
120 employee representatives from Germany were members of a SE
supervisory board and 36 employee representatives from 15 further
countries. Although these are still quite modest figures, they lead to
new, practical experience and discussions in countries where there was
previously no knowledge of participation.
What is the European Trade
Union Confederation (ETUC) demanding?
According
to the ETUC, EU measures are oriented too unilaterally at removing
obstacles to cross-border business. A European model for Corporate
Governance has so far not been developed. In the "Fitness-Check"
published in June 2014 a strong trend towards deregulation can be
observed (see report in
EWC News 3/2014).
Therefore the newly elected European Commission should put a stronger
focus on the social dimension. The details are as follows:
- Employee
participation should be regulated in one single legislative act, so
that there are no longer any more differences between the SE Directive,
Merger
Directive, etc.
- In
all
companies under the European legal form, apart from the information and
consultation of the European works council or the SE works council,
employee participation on
the board of directors or supervisory board should also be made
compulsory by law.
- The
new legislative act should
also provide the timely information of European works councils and a strengthened
consultation procedure "with a view to reaching an agreement through a
meaningful dialogue before a decision is made."
- In
case of infringement of
these rights, effective and dissuasive sanctions are mandatory
in the opinion of the ETUC.
- The
European Commission should prepare an official consultation on
the subject with the social partners, which represents the first step
in the legislative process.
- Full
text of the ETUC resolution
The situation in France and Great
Britain
In
France, legislation which extends participation rights on the boards of
directors and supervisory boards of large companies came into force in
June 2013 (see report in
EWC News 2/2013).
A part of the seats are occupied by the French works councils and
another part by the European works council of the corresponding
company. In recent months therefore hundreds of employee
representatives have begun their new mandates. Also in the United
Kingdom the topic has spurred a large public debate. In October 2013
the British Trade Union Congress (TUC) started a campaign with
suggestions as to how British employees could be integrated into the
Corporate Governance bodies (see report in
EWC News 4/2013).
In the meantime the topic has also reached Parliament. The Scottish
Member of Parliament, Jim Sheridan, chairman of Unite’s
trade-union group within the House of Commons’ labour
parliamentary group published a report in September 2014 on the subject.
Forthcoming event
Current
developments in European labour legislation are on the agenda of a
European and SE works councils’ conference to be held on 26
January 2015 in Hamburg.
|
Is downsizing a "confidential business
secret"?
On
10 October 2014 the labour courts in Elmshorn (Germany) ruled on
confidentiality obligations for an impending downsizing of the
workforce. The ruling authorized the works council in the Hamburg
suburb Wedel, the German headquarters of the British-Swedish
pharmaceuticals group, AstraZeneca, to inform employees about layoffs
in the sales force. The employer had previously forbidden this.
Altogether 280 of the 900 jobs in Germany are to be cut, and the
employees concerned risk being made redundant. The works council
therefore convened a general assembly for all the sales force on 17
November 2014 and filed criminal charges against management for
obstructing their works council activities. This was because the
managing director had threatened the works council with substantial
consequences, should they violate confidentiality obligations (later
denied by the court). German legislation provides for up to one year
imprisonment or fines for obstruction to works council activities. The
following texts are available only in German:
Even
though these legal proceedings concern a national works council, the
same question also arises for European works councils. What information
is to be considered as confidential? What information can EWC members
communicate to their local works councils? In how much detail and also
how critically is it possible for European works councils to inform the
workforce? There is currently a court case ongoing for the latter
question before the Baden-Württemberg District labour court
(see report
in EWC News 3/2013).
The EWC chairman of the Amcor packaging group, who filed the complaint,
will give a presentation during the Hamburg EWC conference on 26
January 2015.
When does a matter have a
transnational character?
The
Transdev EWC’s right to information and consultation on the
future of SNCM, the bankrupt ferry company in Marseille was denied by a
ruling on 26 November 2014 of the District Court of Nanterre, a Paris
suburb. The company has 2,000 employees and operates in the western
Mediterranean. The French group Transdev, a bus and rail operator
present in 20 countries world-wide, is the majority owner and would
like to sell SNCM. A restructuring plan includes the dismantling of 800
jobs.
The
Transdev European works council was established in July 2012 following
the merger with the transport division of Veolia Environnement
(see report
in EWC News 4/2012).
The EWC agreement fully integrates the new EU Directive standards and
in some aspects even goes beyond. The transnational competence of the
EWC has been extended by including the so-called recital 16,
word-for-word from the Directive’s preamble. As a result the
EWC
is also responsible for matters which concern only one country, but
whose consequences are relevant to all European employees (see report in
EWC News 1/2013). The filing to the
Nanterre District Court expressly referred to this point.
The
judges did not however acknowledge any transnational nature. The entire
SNCM workforce is employed in France and the SNCM and Transdev
managements are also located in France. There are therefore not two
countries involved. Since SNCM represents only 2.5% of
Transdev’s
entire workforce there are no consequences for the whole of the group
with any relevance for European employees. There is furthermore no
transfer of undertakings to other countries to be expected. As a
consequence only the French work councils are to be informed and
consulted, but not the European works council. Following texts are
available only in French:
Forthcoming event
A
legal seminar on previous EWC
case-law is being held from 28 to 30 October 2015 in Hamburg.
|
3.
Collective bargaining – unified by law
|
German
government wants to safeguard the functioning of collective bargaining
On
11 December 2014 the government in Berlin adopted draft
legislation on unified collective bargaining. In the future, only the
agreement of the trade union with the most members will be valid in
companies with several unions. Long since a reality in most other
European countries, in Germany the question has however given rise to
major discussions. The legislative initiative came about as a
consequence of industrial disputes that small unions in the transport
sector (Deutsche Bahn, Lufthansa) had organized for their own
individual interests against large unions. The following texts are
available only in German:
In
the decades following Second World War such legislation was
not
necessary. Firstly, in the private sector, the German trade union
confederation DGB hardly had any serious competitor and
secondly,
the courts supported unified collective bargaining in their decisions.
In June 2010, the Federal Labour Court put an end to this long lasting
principle in a groundbreaking ruling in complete opposition to the norm
in Europe. In contrast, only one month before, French supreme
court "Cour de Cassation" ruled exactly the opposite and
reinforced bargaining unity in France (see report in
EWC News 2/2010).
There was neither a breach of European laws nor of any ILO conventions.
Furthermore, this ruling is particularly remarkable, since France, like
many other Southern European countries, has a long standing experience
with trade-union plurality and its inherent problems.
Legislation
on unified collective bargaining wide-spread in countries
with union plurality
The
most extensive reform of
legislation on collective bargaining since the Second World War came
into force in France
on 1 January 2009 (see report in
EWC News 4/2008).
Following the Spanish model, the legislator has fixed thresholds for
collective bargaining recognition, which are calculated from the works
council election results. Unions, which obtain less than 10% of the
votes, can no longer conclude shop floor agreements. For such
an
agreement to be valid, the signing unions must together totalize at
least 30% of the votes. Hereby union membership levels are of no
consequence. A trend towards bargaining alliances is to be observed
since 2009, since otherwise small unions would risk losing their rights
(see the SNCF
and France Télécom examples in EWC News 1/2010).
Similar
regulations have
existed in Spain
already for many years and have led the competing trade unions to
co-operate constructively in collective bargaining. In Spain all
collective agreements are actually signed together by the CC.OO. and
UGT and small organizations are hardly present at all in collective
bargaining. In Italy,
the
recognition for collective bargaining of competing trade unions was
also reformed in January 2014, as a consequence of a previous ruling of
the constitutional court in Rome (see report in EWC
News 2/2014).
Competing
collective agreements generally excluded
There
are also precise regulations on recognition for collective bargaining
in many other countries. Frequently criteria are also defined for when
a shop floor agreement is valid or not. The following are some examples:
- In
Poland
shop floor collective agreements are only valid if they are signed
together by all the recognized trade unions. Trade unions, with less
than 10% membership (in some cases 7%), are not considered as
recognized. If no trade union reaches this threshold, then the
agreement is concluded with the largest trade union in the company.
- Also
in Hungary
trade unions are recognized only if they have 10% membership. If there
is no recognized trade union, the negotiating mandate goes to the works
council. Decisions on any crucial matters are taken by majority
voting.
- In
Romania
a trade union requires half (previously one third) of the workforce as
members, in order to conclude shop floor agreements. Only one trade
union can therefore be recognized in each company.
- In
Slovakia
the employer negotiates only with the largest trade union or bargaining
alliance (composed of several unions). The shop floor
agreement
then applies to the entire workforce.
- In
Croatia
shop floor agreements are negotiated not by individual trade unions,
but by a joint bargaining committee, whose composition is defined by
law. Organizations having less than 20% of all union members in the
company (craft unions 40%), have no right to sit on the bargaining
committee. The status of each trade union is evaluated by an external
committee every three years. A bargaining agreement is only valid if
the signing trade unions together represent at least half of all union
members in the company.
- The
only exception in this list
of countries is Czechia.
Previously the same regulations applied as in Slovakia, where only the
largest trade union or bargaining alliance negotiates. This was
declared to be unconstitutional by the constitutional court in March
2008.
Does
German collective bargaining legislation conform to the constitution
and to the EU?
If
one regards the European landscape, then the planned German legislation
falls in line with the regulations of many other EU countries. However
should the legislation not conform (as in Czechia) to the constitution
or even to EU regulations, this would in turn affect numerous
countries. This was possibly one of the reasons why the legal
battle around the French collective agreement legislation did not go as
far as the European Court of Justice in Luxembourg. The European Court
of
Justice for human rights in Strasbourg also plays a role on the
subject. In April 2014 it had to make decisions on restrictions to the
right to strike in Britain dating from the Thatcher times. The judges
accorded a certain discretion to the legislator for implementing the
human right to strike and rejected the complaint filed by the RMT trade
union (see report in
EWC News 2/2014).
Forthcoming event
The
recognition arrangements of French trade unions is on the agenda of a
seminar being held from 14 to 16 September 2015 in Paris (with
simultaneous interpretation).
|
4. Newly established
European work councils
|
EWC for world’s
market leader in meal vouchers
A
EWC agreement for Edenred was signed on 17 September 2014 in the Paris
suburb of Malakoff. The French company who invented the
ticket-restaurant vouchers is present in 42 countries and has about
6,000 employees world-wide. Edenred is subject to the EWC Directive
since its spin-off from Accor, the hotel group and its listing on the
stock-market in 2010. The constitutional meeting of the new EWC took
place on 4 and 5 November 2014 in Brussels.
It
is composed of 13 representatives from 13 countries. As usual in
France, it is chaired by the employer. Plenary meetings are held once
annually. The select committee made up of four employee representatives
and one representative from central management, meets once per year by
video or teleconference in order to prepare the plenary meeting.
Meetings requested by the employee side in exceptional circumstances
are also only held virtually. It remains to be seen whether the new EU
standards for the consultation procedure, which fully apply to Edenred,
can be put into practice by these means. EWC members have in addition a
right to training (see report in
EWC News 2/2012).
Cooperative establishes EWC
The
third largest meal voucher supplier, the French cooperative
Chèque Déjeuner, also signed a EWC agreement at
the
company headquarters in the Paris suburb, Gennevilliers, on 4 November
2014. In contrast with Edenred this is a company which belongs to its
2,000 employees. Furthermore they elect the board of directors (14
members) and receive profit sharing. The works council also elects an
additional three members to the board of directors.
Chèque
Déjeuner is present in 13 countries, including ten EU member
states. The European works council will hold one plenary meeting per
year at the company headquarters and a further meeting in another
country. The select committee meets twice annually, with a preference
on video conferencing as opposed to physical meetings. The EWC can
create its own working groups. Central management bears all costs, but
in addition the EWC has its own annual budget of 5,000 €. Each
EWC
member has a right to 90 hours time-off and the secretary to 120 hours
(in addition to time for meetings). Each EWC member has a right to ten
days training per term of office and is free to choose which training
and which provider is appropriate. Altogether the total training budget
for a four-year term of office amounts to 120,000 € (excluding
language courses). The EWC agreement makes extensive provisions for
experts, which is usual in France (see report in
EWC News 1/2008).
Largest
Swedish office furniture
manufacturer establishes EWC
On
19 November 2014 a EWC agreement was signed at the Kinnarps
headquarters in Western Götaland. This family business with
2,500
employees, half of which are outside Sweden, has production sites in
Sweden and Germany as well as subsidiaries in almost all European
countries. The EWC meets once per year at the company’s
headquarters, with a further meeting possible at a foreign site. A
steering committee is established with up to five members that
carry out their duties on a permanent basis and develop a training
curriculum for EWC members. The consultation procedure is based on the
new Swedish EWC legislation, which was not however incorporated
word-for-word. Kinnarps is well-known for its high standards of
Corporate Social Responsibility (CSR) and its commitment to
environmental activities. As usual in Sweden, the EWC agreement is
formulated very much on the basis of a social partnership.
|
5. Updated EWC
agreements
|
Belgian chemicals group renews
EWC agreement
Solvay’s
EWC agreement was updated on 12 June 2014 in Brussels. Although the EWC
was already established on the basis of a
“voluntary”
agreement in 1995, it is now fully subject to the provisions of the
Belgian transposition of the new EU Directive (see report in
EWC News 1/2011).
There are extensive provisions on the transnational competence however
in contrast with the Belgian EWC legislation, the employer is chairman.
The
EWC is composed of 21 delegates from nine countries, who meet once per
year. They elect a four-member steering committee, which can hold its
monthly meetings in any European site and meet with local employee
representatives. In exceptional circumstances the whole EWC holds a
meeting not just the steering committee. As a consequence of the
acquisition of Rhodia, the French chemicals group, in 2011, today more
than half of the European workforce is in France; the second largest
country is Germany, followed by Italy, and only in fourth place
Belgium. Rhodia had its own European works council from 2001 to 2011
and from 2010 established an International Health and Safety Committee
(see report
in EWC News 3/2011). Solvay’s EWC had
negotiated a charter on sustainable development in 2008 with central
management (see report in
EWC News 4/2008).
French beverage group off to a
new start
The
European works council of Pernod Ricard held a constitutional meeting
from 25 to 27 November 2014 for a new four-year term at the company
headquarters in Paris (photo). The EWC Academy delivered training on
this occasion. The EWC, first established in 1999, is now subject to
the new EU standards, which were integrated into their EWC agreement on
12 July 2014. The 24 members from 14 countries meet once per
year.
The employer is chairman. The five
members of the
steering committee come from five different countries and meet three
times per year. As usual in French EWC agreements, there are detailed
provisions for time-off. In addition to the time for meetings, normal
representatives have a yearly allowance of 40 hours, members of the
steering committee 60 hours and the secretary (= speaker of the
employee side) 80 hours. The right to training amounts to three days
per term-of-office. The wine and liquor producer has the largest
workforce outside of France in the United Kingdom, where they acquired
Chivas Brothers, the Whisky maker in 2001. Pernod Ricard signed an
agreement on Corporate Social Responsibility in January 2014
(see report
in EWC News 1/2014).
U.S. automobile supplier doubles
number of delegates
Starting
from 1 January 2015 a new EWC agreement enters into force for the Dana
group. It is based on the new EU Directive’s standards,
whereby
the number of representatives could almost be doubled. The steering
committee could also be enlarged from three to five members. The EWC
established in 2000 has its headquarters in Essen, Germany (photo),
where it normally holds its annual meeting. In the future a second
plenary meeting can be held each year in another country. Central
management has committed to inform the EWC as early as possible for
enabling decision-changing discussions and consultation. Consultation
has the goal of achieving "a mutually agreed solution as rapidly as
possible". The new EWC agreement was concluded with the assistance of
the EWC Academy and there was also a seminar on the subject in December
2012 (see report in
EWC News 4/2012).
We have arranged a
selection of EWC agreement texts on a webpage
for download.
|
6. European
works councils following mergers
|
German
automobile supplier merges two EWC bodies
In
May 2013, piston specialist Mahle bought a majority stake in
air
conditioning manufacturer, Behr. Both automobile suppliers have their
headquarters in Stuttgart. Mahle, a family business, grew hereby to
64,000 employees world-wide. There had only recently been an even
larger merger in the same industry: the acquisition of U.S. group TRW
Automotive by the third biggest German automobile supplier at present,
ZF Friedrichshafen (see report in
EWC News 3/2014).
The
two European works councils of Mahle and Behr were combined together
into a common body on 19 November 2014 in a meeting in Ludwigsburg. The
body has altogether 28 representatives from eleven countries
representing the 30,000 European employees. Both councils had already
been established in 1996 and therefore have a long working experience.
With a view to avoiding the loss of seats and a time-consuming
renegotiation of the EWC agreement with a Special Negotiating Body
(SNB), both councils agreed to merge. The steering committee has six
members. In recent years, Mahle’s European works council has
been
involved with layoffs in five countries including Italy, where it was
able to intervene and secure a social plan in 2009 (see report in
EWC News 4/2009).
Japanese electronics firm prefers
British jurisdiction
A
new EWC agreement for Canon was signed on 30 September 2014. In 2010
the Japanese group took over Océ, the Dutch printer
manufacturer. In both companies there had been a European works council
in place since 1996 under Dutch jurisdiction. Since both agreements
were signed shortly before the 22 September 1996 deadline, they were
subject neither to the old nor to the new EU Directives.
In
the process of integrating 24,000 Océ employees into the
substantially larger Canon group, the European work councils also had
to merge. They reached an agreement with central management and used
the legal right to renegotiation for "changes in the structure of the
undertaking", in order to secure itself the full legal status of the
new EWC Directive (see report in EWC
News 4/2011). The only concession to the employer was the
change from Dutch to British jurisdiction, as often seen more recently
(see report
in EWC News 1/2012).
The negotiations were conducted by both steering committees and started
in December 2012 without the establishment of a Special Negotiating
Body.
The
two plenary meetings belong to the positive aspects of the new EWC
agreement. Moreover the seven member select committee meets at least a
further three times per year with management. Each year there is one
day training for the entire EWC and additional training is possible.
The transnational competence of the EWC goes beyond the specifications
of the EU Directive. A fixed EWC budget is negotiated between the EWC
and central management. On the critical side however is the fixed
duration for the consultation procedure: it should not last longer than
five weeks.
Forthcoming event
A
seminar is being held in Hamburg from 28 to 30 October 2015 covering
the new EU legislation as a basis for the re-negotiation of EWC
agreements. The legally defined procedures for mergers, spin-offs or
relocation of company headquarters ("structural changes") will also be
covered.
|
7.
Pan-European company agreements
|
Legal proceedings avoided at the
last minute
On
5 November 2014, the French government agreed to the acquisition of
large parts of the formerly state-owned company, Alstom, by General
Electric (GE), the US conglomerate. There had been a threat of missing
the acquisition deadline due to Alstom’s European works
council, which only rendered its opinion on 28 October 2014. Without
this opinion the acquisition could have been challenged in court, as
demonstrated in the Gaz de France case in 2006 (see report in
EWC News 1/2008).
The
European works council only
rendered its opinion once both companies had committed to an agreement
closely resembling a pan-European company agreement. Negotiations on
the matter had begun on 21 October 2014 under considerable time
pressure and constant press coverage. Alstom was already experienced on
the subject since the EWC had already negotiated a 3 year job-security
agreement for all European sites in 2010, following the acquisition of
Areva’s energy network (see report in
EWC News 1/2010). The participation of a U.S.
company in such negotiations was however a complete novelty.
Negotiating mandate for
restructuring
The
charter first describes the
remaining proceedings for the information and consultation procedure up
to the completion of the transaction on 30 June 2015. General Electric
has formally committed to fulfill not only the legal obligations of the
consultation procedure but also to "negotiate" alternatives to
redundancies. Furthermore discussions will immediately begin on the
future structure of Alstom’s European works council, which
will be reduced in size and only cover railway engineering (including
the TGV high-speed train manufacturing). A temporary EWC
structure ("Structure de Représentation Temporaire") is to
be established for up to three years for those divisions which are no
longer under the control of Alstom. This body will receive a monthly
report on the progress of the integration. Apart from the EU countries
there are also representatives from Norway, Switzerland and Turkey. In
the energy division a new working group is to be established between
the EWC and the top management of both companies which will closely
follow the forthcoming restructuring.
Forthcoming event
The
EWC Academy’s annual consultation seminar is being held from
7 to
10 April 2015 in Montabaur Castle under the title, "Song and dance act"
or full-fledged European works council? A similar seminar for
English-speaking participants will take place from 2 to 4 September
2015 in Manchester.
EWC secures social framework for
IPO
On
13 November 2014, Bayer’s European Forum, as the EWC of the
chemicals group is named, signed a joint declaration with central
management on the socially responsible spin-off of its plastics
division with its 17,000 employees. The decision to list Bayer
MaterialsScience (BMS) on the stock-market had been taken in September
2014. BMS would then be the fourth largest chemicals group in Europe.
The
long-standing social policy is to be continued in BMS. In all European
sites restructuring is to be carried out according to the standards of
the new EWC Directive. The relevant definition has been literally
incorporated into the text of the declaration. There are
“principles of social responsibility” that apply to
any
downsizing until 2020. This includes open and transparent
information and consultation procedures with employee representatives
on the local level in each individual country. Measures for securing
jobs have priority and redundancy is to be considered only as a last
resort. The Bayer EWC was already established in 1994, long before the
adoption of the first EWC Directive.
Quality
of life in the workplace
A
transnational agreement was signed on 27 November 2014 in Paris for the
improvement of quality of life in the workplace for the French energy
supplier GdF Suez. A Special Negotiating Body composed of 18 EWC
members from nine countries was specifically established to negotiate
the agreement in the course of four meetings with central management.
Two European trade union federations are signatories.
The
agreement provides for an evaluation at the local level in all
countries of the European Economic Area and based on a list of six
criteria. Action plans are subsequently developed in collaboration with
local employee representatives and are implemented according to a
pre-determined three-step model. Transnational agreements of this kind
are to be found more frequently in French-style companies e.g. in the
energy group, Areva (see report in
EWC News 3/2012) or in Lafarge, the building
materials group (see report in
EWC News 2/2013).
|
8. Works Council Statistics
|
Evaluation of German
works council elections
During
the months of March until May 2014 all works councils were newly
elected for the next four years. Whereas in France, for example, each
company may define its own election dates independently, German law
prescribes one single country-wide period. Exceptions to the rule are
only allowed in exceptional circumstances.
A
first evaluation of these elections was published on 26 August 2014 by
the Hans Böckler Foundation. Since the German Ministry of
Labour
has no official figures and no legal obligation to provide them, the
evaluation represents the only data available. In contrast, in
countries such as France or Spain an official evaluation of works
council elections, provided by the government, is indispensable since
it is the legal basis for granting collective bargaining rights or
disqualifying small trade unions (see report in
EWC News 2/2013).
Stable workforce representation
The
average voter turnout of almost 80% continues to remain high and stable
in German companies. Around two thirds of the elected representatives
belong to a trade union within the German Trade Union Confederation
(DGB), and about 25% are non-unionized. Therefore competing trade-union
confederations do not play a significant role in terms of figures. The
strong position of this one single confederation distinguishes Germany
from many other countries, particularly in southern Europe.
The
election results were particularly good for IG BCE, who won around 80%
of all works council seats in the chemical and pharmaceuticals
industries. They are closely followed by IG Metall with approximately
75%. In comparison the results for ver.di, the services trade-union,
with 61% of all mandates are bad but still comparatively good on an
international level. In Germany each of these trade unions has its
particular industry-specific field of competence, and therefore they do
not present candidates mutually against one another. In comparison with
the last elections in 2010, the percentage figures have hardly changed.
The following texts are only available in German:
Works council resources in France
On
12 November 2014, DARES, the research arm of the Ministry of Labour,
published the results of an analysis of French work councils. It shows
that there is a striking difference between unionized works council
bodies and those composed of non-union representatives.
The
better working conditions and resources of unionized works councils is
demonstrated by the following figures: almost half of these works
councils (46%) make regular use of the assistance of experts, as
opposed to only 18% in non-unionized works councils. 75% of unionized
works councils dispose of their own offices in the company and only 48%
in non-unionized councils. In unionized works councils 72% of all
members have taken part in training, in comparison to 17% for
non-unionized representatives. There are also major differences in the
provisions for time-off work.
Works council
work in France
significantly more difficult than in Germany
French
legislation does not make provisions for 100% time-off for individual
mandate holders as in Germany but rather defines hourly allotments. In
companies with more than 500 employees the study shows that 75% of all
works council members have more than 35 hours per month time-off. As
opposed to Germany, general assemblies of the workforce are not
compulsory by law, but nevertheless take place in 60% of the companies
investigated. A third of all works council members consider that their
mandate hinders their professional development; as a consequence there
is a lack of sufficient candidates in 38% of the companies analyzed.
The work of the works councils is well appreciated by employees,
although there is criticism on the little influence that the council
has on the employer’s decisions. In every tenth French
company
the employer forbids the works council to communicate electronically
with the workforce. Following texts are available only in French:
Forthcoming event
A
seminar on French industrial relations is being held from 14 to 16
September 2015 in Paris (with simultaneous
interpretation).
A visit to a French works councils’ trade fair is also
planned.
New figures on European works
councils
On
2 December 2014, the European Trade Union Institute (ETUI) in Brussels
published a new statistical evaluation of European works councils. It
is based on the data from the Institute’s on-line database
that
it has been maintaining since 2005 with EWC agreement texts. At present
there are 1,070 European works councils in 987 companies. There are
currently negotiations underway for the establishment of a EWC in 56
companies.
On 25 September 2014, the Hans
Böckler
Foundation had already published a country by country comparison (per
location of company headquarters) as well as by industry based on this
on-line database. Germany with over 200 EWC bodies comes well before
France and the UK with just 120 each. The metal industry remains the
most important sector with a lot of catching-up to be done for the
establishment of European works councils particularly in the services
and transport sectors.
|
9. The view
beyond Europe
|
Hennes & Mauritz: social
responsibility in the supply chain
On
15 September 2014, the Swedish clothing retailer signed an
accord on social responsibility
in the global supply chain with the International Labour Organization
(ILO) in Geneva. As a specialized agency of the
United Nations, the ILO is responsible for promoting social justice as
well as human and labour rights.
The
agreement is the first ever of its kind concluded with the ILO. It is
not only considered as exemplary, but also sets a new benchmark for the
entire industry. Well-functioning labour relations are to be developed
in a combined effort throughout the production chain. For example the
Swedish trade union, IF Metall, is assisting H&M suppliers in
Cambodia by their first implementation of regulated collective
bargaining. The textile industry stands under intense scrutiny,
following over 1,100 deaths as a result of the collapse of a factory
building in Bangladesh in April 2013. Leadership was handed over to the
ILO for the development of an internationally coordinated
transformation plan for fire and building safety (see report in
EWC News 3/2013).
Spanish construction groups
sign global framework agreements
On
29 October 2014 three of the largest Spanish construction and
infrastructure groups signed international framework agreements with
the UGT and CC.OO trade-union confederations. They secure minimum
social standards, core labour standards and trade union rights in all
subsidiaries throughout the world. This includes Acciona with 35,000
employees world-wide, Sacyr Vallehermoso with 20,000 employees
world-wide and Dragados, a subsidiary of the ACS group, to which the
German construction group, Hochtief has belonged, since 2011
(see report
in EWC News 1/2011).
Despite the collapse of the property markets following the financial
market crisis of 2007, Spanish construction companies continue to be
very active. Apart from banking it represents one of the few
industries, in which Spanish companies play an important role on an
international level.
Agreement
on occupational health
and safety strengthens Africa
A
global agreement on occupational health and safety was signed on 21
November 2014 in Paris for 160,000 employees of Orange. The
telecommunications group, which had recently changed its name from
France Télécom to Orange, is present in over 20
African
countries where this agreement will have a particularly high
significance. The company has had a European works council since 2004
and established a Global works council in 2010 (see report in
EWC News 2/2010).
In 2006, France Télécom had already signed an
international framework agreement on minimum social standards, on which
the new agreement is based (see report in
EWC News 1/2007).
|
Global occupational health and
safety
The
first edition of an occupational health and safety newsletter was
published on 16 October 2014. It is edited by the International Trade
Union Confederation (ITUC) in Brussels, whose website has a section
with up-to-date news on the subject.
New look for Country profiles
The
new look for the Internet website of the European Foundation for the
Improvement of Living and Working Conditions in Dublin has been on-line
since 5 November 2014. It includes country profiles and labour
relations of all 28 EU-member states as well as Norway which is updated
every two years. In addition there are the former republics of
Yugoslavia, which do not yet belong to the EU.
Dedicated website for European
Skills Councils
Social
dialogue, an exchange on social policy matters between employers'
associations, trade unions and the European Commission, has been in
operation for many years and is a fundamental principle laid down in
the EU treaties. As such, there are currently dialogue forums in 40
industries. Two of them, i.e. the textile, clothing and leather
industry as well as the wholesale and retail trade, have already
established their own Skills Councils which examine the employment
situation and the required skills in their sectors. The establishment
of such Skills Councils is currently in progress in a further 14
industries.
On-line training module for
Corporate Social Responsibility
In
May 2014 the training center of the International Labour Organization
(ILO) in Turin published this training module which puts into practice
the Declaration on Multinational Enterprises and Social Policy through
case studies and practical exercises. The Declaration of Principles was
adopted for the first time in 1977 and last updated in 2006. It defines
core labour standards (industrial safety, equal chances, freedom of
coalition etc). Signatories are the member states of the ILO, a
specialized agency of the United Nations.
We
have arranged many further
interesting websites into a collection
of links.
|
Empirical case study
on European works councils
A
research paper was published in March 2014 which examines life inside
the European works councils of five companies. The authors, who were
sponsored by the Hans Böckler Foundation, have analyzed the
key
points which help in establishing identity and in promoting mutual
co-operation. According to works council researcher Hermann Kotthoff,
"the most important point is that the EWC should have dialogue with
management on as many important topics as possible and also be taken
seriously by them". The cases examined include the French
pharmaceuticals group, Sanofi (see report in
EWC News 2/2010) and Unilever, the consumer goods
manufacturer (see report in
EWC News 2/2014).
Legal stance of transnational
company agreements
A
book was published in March 2014 which undertakes a legal
classification of transnational agreements negotiated by European works
councils on topics such as data security, profit-sharing,
non-discrimination or on the consequences of restructuring. Since there
are still no legal safeguards for such agreements, a large majority of
the European Parliament requested a framework Directive on the subject
in September 2013 (see report in
EWC News 3/2013).
It is still unclear whether the new European Commission will take up
this initiative. There is substantial resistance from the employer
side. The book is only available in German.
Forthcoming event
A
seminar is being held from 23 to 26 March 2015 in Brussels and will
cover the role of European works councils in such cross-border company
agreements.
Trade unions in Sweden
and Norway
The
Friedrich Ebert Foundation recently published two current country
analyses on Scandinavia: in August 2014 on the "Swedish model" and in
November 2014 on Norway. In both countries a decrease in the high
levels of union membership is to be observed. While white-collar
employees in Sweden remain faithful to trade unions, the level of
unionization for blue-collar workers has sunk from almost 90% in the
middle of the 90's to 68%. In contrast to the rest of Scandinavia,
union membership in Norway amounts to only 52% but remains however
relatively stable. Membership in Finland has also fallen below the 70%
mark (see report
in EWC News 1/2013).
Production
chains and working conditions in computer manufacturing
This
report was published in October 2014 by Electronics Watch, a monitoring
organization for fair working conditions in global computer
manufacturing. It describes working conditions in the manufacturing
plants in Southeast Asia, Mexico and Brazil. Altogether twenty large
computer brand subcontractors are analyzed as well as the structure of
contract manufacturing for products ranging from electronic components
through to smart phones, printers, photocopying machines and servers.
The fast growing electronics industry and its complex production system
is increasingly gaining the attention of trade unions and
non-governmental organizations. The study was carried out with
financial support of the European Commission.
We have
gathered together further documentation
into a collection
of literature.
|
12. The EWC Academy:
Examples of our work
|
Fourth EWC conference in London
The
annual EWC Academy conference was held on 23 and 24 October 2014 in
London. Apart from current developments in labour legislation there
were also discussions on the consequences of a possible withdrawal of
the United Kingdom from the EU on European works council activities.
Professionals reported on information and consultation procedures on
the British level and EWC activities in the insurance company Axa
(see report
in EWC News 2/2014)
as well as the turbine manufacturer Rolls Royce. Apart from German and
English participants there were also three further countries present.
The next London conference, planned on 22 and 23 October 2015, will
cover the program of the new government, since in May 2015
parliamentary elections will take place.
Seminars on
labour legislation
and EWC work in Manchester
In
2015, the EWC Academy will further increase its seminar offering in the
United Kingdom and has started co-operation with the Trade Union
Education Unit at Manchester College. The training facility is highly
specialized in workplace employee representation and was awarded a TUC
prize for quality in 2012 (comparable to the German works council
award). A seminar is being organized for the first time from 23 to 25
June 2015 on labour legislation and industrial relations. The British
system will be presented in German; in parallel there will be a seminar
for English-speaking participants on the German co-determination
system. A further seminar is being held in Manchester from 2 to 4
September 2015 aimed at EWC members who wish to work more proactively
in the future (in English, and on request German simultaneous
interpretation).
Data-protection
in international companies
In
the former Hamburg dockside area, HafenCity, from 3 to 5 November 2014,
discussions took place on the extent to which national and European
works councils should be involved in the transnational processing of
personal employee data. The seminar which was organized for the first
time by the EWC Academy met with great interest and included 27
participants from Germany, Great Britain and France. Apart from a
further seminar to be held from 28 to 30 October 2015 in Hamburg, the
EWC Academy also offers expert counseling on the subject.
Swiss insurance - EWC plenary
meeting
The
Zurich European Forum (ZEF), as their European works council is named,
met from 10 to 12 November 2014 in the company training center in
Zurich. Following a memorandum agreement between employee
representatives and central management in May 2014 defining minimum
standards for socially responsible restructuring and guidelines for
severance plans (see report in
EWC News 2/2014),
the EWC Academy has now been commissioned to assist in providing
opportunities to develop EWC activities and a structured flow for the
consultation procedure. With 60,000 employees world-wide, the Zurich
Insurance Group is the largest insurance group in Switzerland.
Forthcoming
event
A
member of the Zurich Insurance Group’s EWC steering committee
will present a report on their EWC work during the Hamburg conference
on 26 January 2015.
Improved consultation
procedure for U.S. Company
The
annual plenary session of the Avaya European works council was held
from 8 to 11 December 2014 in Frankfurt. The company provides
communication technology solutions for business customers and has
subsidiaries in nearly all countries of the European Internal Market.
The largest sites are to be found in Germany, Ireland and in the United
Kingdom.
Avaya has had a EWC in place since 2004
under German
jurisdiction. Since the EWC agreement has not been modified since 2007,
the U.S. company is therefore automatically subject to the new EU
Directive. The representatives have now elected a new steering
committee enlarged from three to five members. The new EWC chairman
comes from Germany and the EWC Academy has been commissioned as the
advisory firm. The plan is to develop a structured consultation
procedure as a guideline for future restructuring. In 2011, the Avaya
EWC had won, at the time, a particularly exceptional pan-European legal
battle, following repeated difficulties with the time-off for British
representatives (see report in
EWC News 1/2011).
|
13.
Current training schedule
|
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 605 employee representatives from 228 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. Following texts are
only
available in German:
|
EWC
News is published by:
Authors
collaborating on this
issue:
Werner Altmeyer, Manfred Bobke, Rita da Luz,
Reingard Zimmer
Distributor
of the German
version: 20,270 readers
Distributor of
the English version: 3,403 readers
Distributor of
the French version: 3,209 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
|
|