|
28 December 2015
| 1. Basic EWC and SE
information
| Observatory releases
new facts and figures
There has been a legal basis for European works
councils for approximately twenty years now and since nearly fifteen
years also an EU Directive on employee participation in the European
Company (SE). From the outset researchers from the European
Trade Union Institute (ETUI) in Brussels have been assessing all
developments. An evaluation was released in September 2015. It reveals that there are
currently 1,071 European works councils, with an additional 25 new ones
each year. 9% of all bodies are established as SE works councils under
the SE Directive, and the remainder operate as normal EWCs. Steering
committees exist in 86% of all cases, but only 18% of all EWC
agreements provide for a right to on-site visits. Over the years 240
European works councils have been dissolved, of which 74% due to
company mergers. Nearly 40% all EWC bodies still operate on the basis
of a "voluntary" agreement and are not subject to the EWC Directive. 20% of all European works
councils were established in German companies, closely followed by the
French and the British. From outside Europe, US-companies are strongly
represented in terms of figures with 151 of them already having a EWC.
They have to define an EU member state in which the EWC is legally
established. Germany and the United Kingdom are each chosen one quarter
of the time by the non-European and Swiss companies as well as 20% for
Belgium, followed by France. The employer is chairperson in
more than half of all European works councils, as customary in French
works councils. This model however, is not only common practice in
French companies, but is also gladly adopted for the EWC by Finnish,
British and Japanese employers. On the other hand, German and Dutch
EWCs are usually pure employee bodies. Two thirds of all EWC bodies
have a right to paid experts and in 14% of all cases there is a fixed
budget. Out of 102 existing SE works councils, 80% belong to German
companies and around half of them may also appoint employee
representatives on the supervisory board.
Legal fine tuning prior to
revision of EWC Directive The
European Trade Union Institute published a 200-page legal compendium on
the EWC Directive in September 2015. It is linked to the preliminary
work for another revision of the Directive which is being carried out
by the European Commission, since April 2015 (see report in
EWC News 1/2015). The study is an impact assessment
of the EWC Directive from 2009 in all EU member states on the basis of
clear-cut criteria. The questions include for
example, how the right to training has been specifically regulated in
each country. What rules apply to experts? How is the obligation of
confidentiality for critical company data regulated? How is
the scope of the EWC defined for transnational matters in the
individual jurisdictions? Chapter 4, which analyzes the enforcement of
EWC rights in detail for each country is of particular interest. Can a
European works council take legal action? What sanctions can be imposed
by the courts? Who bears the cost? Forthcoming event The first interim findings of
the impact assessment of the EWC Directive will be presented at the
London conference for European works councils on 7 April 2016. | 2. EU Directives for
managing restructuring
|
Reforms in Brussels postponed for the time
being
A critical issue for employee
representatives is how and to what extent local works councils are
informed and consulted on restructuring. There are three Directives
dealing with the topic which are under debate (collective redundancies,
business transfers, Information and Consultation on the national
level). The European Commission had officially consulted the umbrella
confederations of the European social partners on the matter in April
2015 (see report
in EWC News 1/2015). The European Trade Union
Confederation (ETUC) submitted its opinion on 18 June 2015. It includes
the following suggestions: - The definition of "Information"
should be more closely aligned to the revised European works council
Directive.
- The sanctions are insufficient. For infringements
to these three Directives any implementation of measures should be
suspended until all information and consultation procedures have been
completely finalized.
- The three Directives should
cover the entire supply chain: suppliers, subcontractors and any
controlled undertakings.
- The Directives should include
the right for local employee representatives to have support from
experts, whose cost is borne by the employer.
The employers' confederation
BusinessEurope, submitted its position on 29 June 2015 and stresses
that: - The three Directives are working well and should
not be changed. Changes would lead to more uncertainty putting pressure
on companies and slowing down any decision-making processes.
- Opening up a new debate on the
definition of "Information" and "Consultation" would be accompanied by
a long period of uncertainty and a risk of new legal interpretations.
Neither the trade unions nor
the employers' associations wish to combine these Directives into one
single legal act. Both spoke out clearly against a legislative
initiative from the European Commission, however for different reasons.
The ETUC would like to negotiate changes to the contents of the three
Directives with the employers' associations, whereas BusinessEurope would like
no changes at all. The European Commission has therefore excluded
the topic from its 2016 work program which was presented on 27 October
2015. Consequently, a revision of the three Directives is not to be
expected in the short term.
Judges
decide on sanctions On 31 August 2015, the district
court in the Lithuanian capital Vilnius cancelled the unilateral
decision of an employer to create a new business structure with a
reduced number of employees. The Lithuanian labour legislation declares
any dismissals void if the information and consultation procedures with
the company's employee representatives have not been carried out
correctly. The court is hereby conforming to the EU Directive on
national Information and Consultation from 2002, although this does not
make any reference to sanctions. The ruling is a landmark in bringing
forward the rights to information and consultation. The Supreme Court of Justice in
the neighboring country, Latvia, passed an exactly opposite ruling in
April 2013. The judges could not see any reason to cancel dismissals
because of an incorrect or incomplete consultation procedure
(see report
in EWC News 2/2013). In the end the question of
sanctions will probably have to be decided by the European Court of
Justice in Luxembourg. This would not only have consequences for these
two cases in the Baltic, but also for all European works councils. So
far, there has only been one court ruling on the correct flow for a
consultation procedure (see report in
EWC News 3/2009). Forthcoming
event Every year the EWC Academy
organizes a seminar on the consultation procedure in Montabaur Castle.
Next date: 29. March to 1 April 2016. | 3.
News from individual countries
| Czechia:
the end of cheap labour? The Bohemian-Moravian union
confederation ČMKOS launched a campaign under the title "the end of
cheap labour" at a conference held on 16 September 2015 in Prague with
around 1,500 participants from all over the country. In order to reduce
the wage gap with Germany and Austria faster, it is demanding annual
pay increases of 5%. Productivity in Czechia is
around 66% compared with Germany and the gross domestic product already
exceeded 80% of the EU average. As a traditionally industrialized
country, with strong automobile and metalworking industries Czechia has
overtaken Portugal. Salary levels however, are only 28% of the German
or Austrian. The average gross wage amounts to 900 € and to
1,700 € for skilled jobs. It would take one hundred
years to close the wage gap if wages continued to increase at the
current rate. Foreign companies including many from Germany, hereby
secure high profit margins which flow back to the home country. For the
Czech trade unions low wages also hinder investments in new
technologies. Unemployment
at a record low The chances are good for wage
growth, since in October 2015 Czechia had an unemployment rate of 4.7%,
the lowest in the EU after Germany. Business is booming, many
companies have difficulties in finding sufficiently qualified staff.
This particularly applies to the capital Prague which has the lowest
recorded unemployment rate of 2.5% in all regions of the EU
and shares the top place with the greater Munich area. The
social-democratic led government in office since January 2014, is
taking a cooperative approach towards unions, whose membership levels
however still only amount to 17%.
New approach to social dialogue
in Poland The
59 members of the new Social Dialogue Council were officially appointed
on 22 October 2015 by the president of the republic. The council is
composed of representatives from unions, employers' federations and
from government. There were already tripartite commissions on social
and economic matters in place since 1994, in which the unions however
have no longer participated since summer 2013 - in protest against
reforms of the liberal-conservative government at that time.
The
Civic Platform party, who governed from 2007 to November 2015, had
increased the retirement age to 67 and made labour legislation more
flexible. This provoked the largest demonstrations against a government
in Poland since the 1980's, with 100.000 participants in September
2013. In Silesia at the end of 2012, there was a general strike for the
first time since the end of communism. The establishment of the new
council was ratified by the Parliament in June 2015 even before the new
elections which led to the change of government. As chairperson, the newly
elected national Conservative president appointed his political ally
Piotr Duda, who has been secretary general of the catholic trade union
confederation Solidarność, since 2010. With 650.000 members it is the
largest confederation in Poland. There are two only slightly smaller
competing trade union confederations, the social-democratic, OPZZ and
the politically neutral trade union forum, FZZ. Their joint struggle
against the previous government's neoliberal policies has turned the
once bitter enemies of the past into the closest allies.
Brexit
looming? New suggestions from London On 10 November 2015, the British prime minister
presented his suggestions for reforming the relationship between his
country and the EU. Negotiations on the subject are to follow a
referendum on EU membership. Employers and trade unions are in favor of
staying in the EU, although from different viewpoints. In the future
the employers' confederation CBI would like to keep labour legislation
exclusively a national matter, but on the other hand is demanding an
"EU engagement strategy" from the government to develop British
influence in Brussels. The trade unions fear another
"Opt-out" from EU social policy as prior to 1997. On the one hand, the
conservative government wants to strengthen the EU's competitive
position by dismantling bureaucracy but nevertheless explicitly refers
to the major role that the EU plays in the protection of employee
rights. The reduction of burdens on business should take place on an
equal footing for all 28 EU Member States, not through an "Opt-out" of
the UK. The German trade union confederation, DGB and the British trade
union confederation, TUC published a joint declaration on the British
government's demands on 20 November 2015. The motto: Europe must not
just be a free trade area.
| 4. Controversial codetermination
issues before court
|
SE participation agreement
legally challenged Late
August 2015, ver.di trade union filed a complaint with the Berlin
labour court against e-commerce fashion retailer Zalando. The
company was founded by financial investors in 2008 and now has 9,400
employees in 15 European countries. A SE agreement was concluded in
March 2014, which includes one-third employee participation in the
supervisory board but whose provisions lag substantially behind SE
works council standards of comparable companies (see report in EWC
News 2/2014). Through
the conversion to the SE legal form (Societas Europaea), ver.di is of
the opinion that Zalando has used illegal means to avoid employee
participation rights. At the time of the SE conversion, the company
already had substantially more than 2,000 employees in Germany, and
consequently would have had a full-parity supervisory board under
German legislation. Even after the SE conversion employee
representatives would have kept the right to half the seats on the
supervisory board. The reason behind the abandoning of these
codetermination rights was a badly composed Special Negotiating Body
(SNB). Ver.di supposes that "it most probably was composed of mainly
employer-friendly representatives". Normally, German SNB members are
elected by the works council. Since there was still no works council in
Zalando at the time, the election process was carried out in a
non-transparent fashion. As a consequence the results of the SNB
negotiations could be contested. The following texts are only available
in German: Complaint in Austria led to out
of court settlement So
far there has only been one court case in the whole of Europe in
relation to SE conversion. When the Strabag Construction Holding was
converted into a SE in October 2004, it had concluded a participation
agreement only with Austrian employee representatives. Neither the
European works council was involved nor was a SNB established. A SNB
was only established after the filing of a complaint in November 2005
and concluded a SE participation agreement in May 2006.
German
codetermination comes before the European Court of JusticeOn
16 October 2015 the second instance Court of Appeal in Berlin (photo)
decided to take the issue of board-level participation on the
supervisory board of TUI, the German tour operator, to the European
Court of Justice in Luxembourg. The question hereby is whether German
codetermination regulations breach EU legislation, since only employees
in Germany have the right to vote or stand for election in supervisory
board elections. The 40,000 TUI employees working abroad are excluded
from codetermination and only 10,000 in Germany benefit from it. The
supervisory board however, not only takes decisions for Germany, but
for the whole company world-wide. The plaintiff would like to put the
German and the foreign employees on an equal footing and abolish
codetermination. In February 2015, a
regional court in
Frankfurt am Main had passed a completely different ruling. The entire
workforce abroad was included for calculating threshold values within
the EU. Thus the supervisory board of the German stock exchange would
have had to become full parity-based whereas at the time there
was one-third employee participation (see report in
EWC News 1/2015).
In order to avoid a full-parity supervisory board, the German stock
exchange announced its conversion into a European Company (SE) in
September 2015. At present, the question
has become the
subject of a controversial debate within the legal community in
Germany. In the end, the European Court of Justice could confirm German
codetermination, it could restrict it (as wished by the TUI plaintiff)
or extend it (in the sense of the Frankfurt regional court ruling). In
France codetermination has most recently been expanded and
Europeanized, in June 2013. In French companies, the European works
council can elect individual representatives on the administrative or
supervisory boards (see report in
EWC News 2/2013).
Since October 2014 the European Trade Union Confederation (ETUC) is
demanding employee participation rights on the administrative or
supervisory boards for all EU member states (see report in
EWC News 4/2014). The following texts are only
available in German:
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5. Critical moments in
corporate policy
|
Luxembourg shipyard boom Although the Grand Duchy only
has the Mosel as inland waterway, one of the world's largest shipyards
for cruise liners has located its headquarters there since 3 September
2015. The Meyer-Neptun group from northern Germany relocated the legal
headquarters from Rostock to the Luxembourg airport. The real reason is
the company owner's aversion to representation of the workforce in a
supervisory board. The case reminds us of the logistics group
Kühne + Nagel from Hamburg who fled to Switzerland for similar
reasons at the end of the 1970's. Meyer
shipyards which were founded in 1795, has the largest shipbuilding hall
in the world located at their headquarters in Papenburg on the river
Ems (photo). Following the acquisition of the Neptun shipyard in
Rostock dating back from GDR times, the main office was transferred
there in 1997. Although the workforce hereby grew to over 3,000
employees, it was decided not to establish a full-parity supervisory
board. There was a standstill agreement between shipyard management and
the IG Metall trade union. As a consequence of the acquisition of STX,
the Finnish shipyard in Turku by the Meyer-Neptun group in September
2014 (see report
in EWC News 2/2014), a supervisory board could
subsequently no longer be avoided under German law. The only way out
was the relocation of the Holding to Luxembourg confronting however the
workforce with a fait accompli. Publicly expressed criticism of the
situation ended up in the dismissal of the works council chairman. Avoidance of supervisory board
codetermination on the increase This
is not an isolated case. Whereas in the year 2000, only three companies
in Germany used a foreign legal entity to keep their supervisory board
employee-free, the figure rose to 94 in the middle of 2014. This
includes 51 companies which would normally fall under full-parity
codetermination just as in the Meyer shipyard. These figures were
released by the Hans Böckler Foundation in February 2015
(see report
in EWC News 1/2015). The relocation of the Meyer
Shipyard Holding had to take place so rapidly that the conversion to a
European Company (SE) was no longer possible in time. If a European
works council were now be established it would have to be negotiated
under Luxembourg jurisdiction.
Threat of legal action reveals
plant closure Central management of Reckitt Benckiser only
announced their plans to relocate production of Finish brand name
dishwasher tablets from Germany to Poland at the beginning of October
2015, under the threat of legal proceedings. As a consequence the plant
in Ladenburg (Germany) is to be closed by 30 June 2016. This British
group with German roots is well known for its cleaning and household
products and has 36,000 employees world-wide in over 60 countries.
The
chairman of the European works council, established in 2001
under British jurisdiction, works himself in Ladenburg. The workforce
has been reduced there over the last five years from 500 to the now
remaining 240 employees and on several occasions equipment dismantled
and relocated to Italy or Poland. Management did not take up any of the
IG BCE union offers for employee concessions in return for safeguarding
the site. For employee representatives it appears to be "a long-term
strategy for increasing margins". In order to carry out an in-depth
consultation procedure, the EWC chairman has requested information on
the assumptions and calculations on which the plant closure is based
and what are the possible alternatives. Locally however negotiations
are already underway on a social compensation plan. The following texts
are only available in German:
Small break-through in the US
Southern States The first employee
representation is soon to be established at the Volkswagen plant in
Chattanooga (Tennessee). In a ballot organized by the National
Labor Relations Board (NLRB) on 3rd and 4th December 2015, a 71%
majority of skilled maintenance workers voted in favour of recognizing
the US trade union United Automobile Workers (UAW) as a collective
bargaining party. Company management had tried to hinder this by all
possible means and engaged one of the country's most famous anti-union
law firms. Even if the vote only involved
11% of the whole workforce, this small step is however highly symbolic.
On the one hand the USA is the only country where Volkswagen has no
employee representation. On the other, for the first time in many
years, UAW has hereby succeeded in gaining a foothold in a
traditionally trade union-hostile Southern State. The first attempt for
a ballot of the whole workforce in February 2014 was just lost by the
UAW, following massive intervention from conservative lobby groups
(see report
in EWC News 1/2014). Forthcoming
event A conference for works council
members in US companies is being held for the fourth time running from
2 to 4 May 2016. There will be an exchange of experience on
"Compliance" issues and on Anglo-Saxon management culture.
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6. New European works councils
|
Dutch-Italian
commercial vehicle manufacturer with default EWC
The
European works council of CNH Industrial held their constitutional
meeting from 24 to 26 November 2015 in Turin. The three year
negotiation period for the conclusion of a EWC agreement had already
expired in March 2014 without success. The constitution of the EWC
based on the Dutch legislation subsidiary provisions then took a little
longer, since the election of the UK and Italian representatives had
not been carried out in time (both countries together represent 25% of
the mandates). There had already been disputes between the Italian
unions concerning membership of the Special Negotiating Body which
could only be settled by a court ruling in May 2014 (see report in
EWC News 2/2014). CNH
Industrial has its headquarters in Amsterdam and 41,000 employees
throughout Europe in 34 locations. The group was established following
the merger of Fiat Industrial with the Dutch company, CNH Global (Case
and New Holland). Whereas under the old EWC Directive, the
establishment of a default EWC would have been rather disadvantageous
for employees, the subsidiary provisions in force since 2011 are more
than acceptable. The airline easyJet is one of the positive examples of
this (see report
in EWC News 3/2012). Employee representatives from
several countries also demanded the constitution of a default EWC for
the paper manufacturer, Sofidel, in Tuscany in May 2015 (see report in
EWC News 2/2015). Finnish sanitary fittings
manufacturer establishes EWC A EWC agreement was concluded
on 1 October 2015 at the headquarters of Oras in Rauma on the west
coast of Finland. This family-run business has 1,400 employees and
manufacturing plants in Finland, Germany, Czechia and Poland. Oras came
under the scope of the European works council Directive in September
2013 as a consequence of the acquisition of the German company, Hansa
Armaturen in Stuttgart. A Special Negotiating Body (SNB) was
subsequently established and held several meetings on a rota-basis in
various countries. The future EWC ("Oras Group European Forum") will
meet once annually. Finland and Germany have four seats each, Poland
two and Czechia one. Each country appoints one member to the working
committee which meets twice annually and in extraordinary
circumstances. The various provisions (issues of consultation, time-off
work, training, experts) comply with the latest EU standards.
Third South Korean company
establishes EWC On
24 November 2015, a EWC agreement was signed for Hanon Systems under
German jurisdiction in Kerpen (near Cologne). This automobile supplier,
manufacturer of air conditioning technology and based in Daejeon was a
subsidiary of the US group Visteon until June 2015. As an independent
company Hanon Systems now gets its own EWC. The result was reached in
record time, since the Special Negotiating Body (SNB) was established
on 24 September 2015. Most recently a EWC agreement was concluded in
November 2014 for the Doosan conglomerate from Seoul under Belgian
jurisdiction (see report in
EWC News 1/2015). Also Samsung has a European works
council that was already established in 1996 operating under British
jurisdiction. Fixed duration for consultation
procedure To
a large extent the Hanon Systems' EWC agreement adheres to the
standards of the new EWC Directive. However, consultation procedures
for restructuring have been defined and should preferably be concluded
within a time frame of around two to three months and involve a maximum
of three meetings. The nine members of the EWC come from seven
countries, two seats each are attributed to Czechia and
Hungary. The Plenum meets once annually and elects a three member
steering committee. The limitation on costs for experts, who are paid
only for the time they participate in meetings, is somewhat unusual for
German EWC agreements. An annual budget of 6,000 € is provided
for conducting analyses. Central management reserves the right of veto
on training, whereby the costs are always borne by the respective
national company. The
European works council of Visteon, which now only covers the
electronics division, will initially continue to operate as previously.
In addition, a SNB has been established, since this restructuring
represents a "change in structure" in the sense of article 13 of the
EWC Directive. A dispute on EWC rights had led to legal proceedings in
Visteon in July 2011 (see report in
EWC News 4/2012).
| 7. Updated EWC agreements
|
French railway-vehicles
manufacturer restructures EWC A revised version of the Alstom
EWC agreement was signed on 15 July 2015 in Paris. It came into force
on 2 November 2015, after the completion of the sale of the power
division to General Electric. The size of the workforce of the former
state-owned Alstom was hereby reduced by two thirds. The structure of
the "European Works Forum" (EWF), which was established in 1996,
therefore came again under debate. In October 2014 the
consultation procedure on the group's restructuring could be concluded
with important guarantees given by management (see report in
EWC News 4/2014).
No fixed duration for future
consultation procedures First
of all, the EWC agreement adopts the definition of Information and
Consultation literally from the new EU Directive. Particularly
interesting is the provision according to which national consultation
procedures may only be terminated once the EWC consultation has been
finalized. No deadline has been defined for this. Plenary meetings are
held regularly three times per year and the five-member select
committee meets every quarter. There are also extraordinary meetings
upon request of the employee representatives. Further special working
groups can be established. The EWC agreement not only includes a
catalog of consultation topics but also combines them with a time
schedule. The employer is chairperson since it is an agreement under
French jurisdiction. In the future the 19,000 European employees are
represented by 18 delegates from ten countries, including five from
France and two each from Italy, Germany, Spain and the United Kingdom.
Nine further countries with smaller employee headcounts do not get any
seats.
Italian
confectionary manufacturer revises EWC agreement A revised EWC agreement for
Ferrero was signed at a meeting of their European works council on 7
October 2015 in Marche-en-Famenne, close to the Belgian manufacturing
plant in the Ardennes. This family-run business in Piedmont has already
had a EWC in place on a "voluntary" basis since 1996. Information and
consultation rights now come close to the new EU Directive standards,
although still lag somewhat behind them. In
contrast to Italian legislation the employer chairs the Ferrero EWC.
The annual plenary meetings always take place on a rota-basis in the
proximity of different manufacturing plants. The 16 employee
representatives come from six countries, with five from Italy
(including the secretary). Germany has four representatives. Three
representatives coordinate operations between the meetings and meet if
necessary. A permanent working group is established for occupational
health and safety, with one EWC member from each country. 35,000 people
work for Ferrero world-wide.
Dutch bank with binding EWC
regulations
A new EWC agreement for ING Groep was signed on 26
November 2015 in Frankfurt am Main. It enters into force on 1 February
2016. Although the EWC was established in 1996 on the basis of a
"voluntary" agreement, in the future it will be subject to Dutch EWC
legislation. The bank which is based in Amsterdam, had spun-off its
insurance and investment management divisions in July 2014 into an
independent company with 11,500 employees listed on the stock market.
This "change in structure" in the sense of article 13 of the EWC
Directive enabled employee representatives to change the legal
status of their European works council. Three
permanent working groups
Even after the
spin-off, ING still has 53,000 employees in 40 countries throughout the
world and is the largest private commercial bank in the Netherlands.
The future EWC is composed of 27 members from 15 countries including
five from the Netherlands, four from Belgium and three from Poland. At
present, a works council member from Germany is chairman. There are two
annual meetings for both the plenary assembly and the four-member
select committee. The EWC establishes three permanent working groups
which hold half-yearly internal meetings with the competent managing
directors: Chief Executive Office (in charge of internal business
processes), Commercial Banking and Retail Banking. The transnational
scope of the EWC is extensively covered since the recital 16 of the EU
Directive has been integrated, and there is no duration specified for
consultations. We
have compiled a selection of EWC agreement texts on a website
for download.
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8. Pan-European company agreements
|
Minimum social standards at German railway
operator In a meeting held in Rotterdam
on 28 October 2015, central management and the European works council
of Deutsche Bahn signed a European agreement on minimum standards which
are to apply to future transnational relocation of jobs.
Discussions on the topic began when central management informed the EWC
in October 2013 about the establishment of a Shared Service Center in
Bucharest (see report
in EWC News 3/2014). In Germany this entailed the
loss of approximately 250 jobs. The agreement now includes
provisions for an internal pan-European job market, priority for
continued employment in the home country, qualification programs, a
hardship fund and early retirement possibilities. A parity-based
arbitration committee is established for the settlement of any disputes
arising from the agreement. The Deutsche Bahn European works council
was established in 2005. The rights of the EWC were extended following
the acquisition of Arriva, the British transportation group, in March
2012 (see report
in EWC News 2/2012).
Social standards for Swiss insurance
following mergerCentral
management and European works council of Helvetia, the
insurance company, signed a European agreement on minimum standards on
2 December 2015 in Frankfurt am Main. It includes regulations on social
dialogue, data protection, equal opportunities and occupational health
and safety. Another important aspect are measures to ensure socially
compatible solutions for company acquisitions. Helvetia
expanded its workforce in May 2015, from 5,000 to 7,000 following the
acquisition of its Swiss competitor Nationale Suisse. The
agreement explicitly refers to the social partners agenda and its joint
declaration on demographic challenges signed in the European insurance
industry in 2010 in Brussels. This includes topics such as work life
balance, organization of flexible working hours, part-time,
home
and telework. A new joint declaration by the social partners in the
insurance sector on telework was adopted in February 2015.
|
9. The view beyond Europe
|
Global framework agreement for
French supermarket chain On
30 September 2015, central management of Carrefour and the union
confederation UNI signed a framework agreement on social dialogue and
equal treatment as well as on core labour standards and occupational
safety, on the sidelines of a European works council meeting held in
the Paris suburb of Boulogne-Billancourt. It covers 380,000 employees
in 35 countries and replaces a previous agreement from 2001. Carrefour
holds the second place in the retail trade in Europe (after Lidl)
and third place world-wide. An action plan was drawn up on the
basis of the new agreement by the UNI Carrefour Global Alliance, a
forerunner body to a world works council, at a meeting held from 20 to
21 October 2015 in Nyon (Switzerland). Carrefour's Director of Social
Relations also participated in the meeting.
Belgian materials technology
group revises agreement The international framework
agreement on sustainable development was revised on 20 October 2015 at
the group headquarters of Umicore in Brussels. The company has been
closely cooperating with trade unions on an international level since
2007 and is considered as a positive example for its compliance to
minimum social standards. Most recently, this was once again made clear
through a visit of a delegation to the Philippines in February 2015.
The group has 14,000 employees in 38 countries.
Global network for French
construction group Union representatives from
France, Belgium, India, Thailand, Indonesia and Brazil met in Paris on
27 and 28 October 2015 to establish a global network for Saint-Gobain.
The employee representative's spokeswoman from the European works
council and the group's labour relations director also participated in
the meeting. Whereas Saint-Gobain was one of the pioneers at the
European level in establishing its EWC in 1992, central management has
so far refused to conclude an international framework agreement for
other parts of the world. Representatives reported on violations by
local management of the core labour standards of the International
Labour Organization (ILO). Saint-Gobain belongs to the world's oldest
industrial companies and was founded in 1665 as a manufacturer of glass
to equip the hall of mirrors in the Versailles palace. Today the group
has 190,000 employees in 64 countries throughout the world. |
Employee posting in the
construction industry A website has been created
under the initiative of the European umbrella organizations of social
partners in the construction industry and sponsored by the EU.
Information on posting of workers which is important for
employers and employees is available for 27 EU member states. It
includes minimum wages, regulations on maximum working hours, health
and safety etc.
Industrial hubs The "Industrial Hub Program"
was launched at a conference held in the Scottish port of Grangemouth
in October 2015, on the initiative of Unite, the British trade union,
together with two global confederations. The goal is to
interconnect the different industry sectors which are concentrated all
around the ten busiest container ports. Later the project is also to be
extended to airports or inland freight terminals.
Newsletter on European labour law The Hugo Sinzheimer Institut
for labour law (HSI) at the University of Frankfurt am Main has been
publishing a legal newsletter since 2013, reporting on relevant legal
proceedings before the European Court of Justice (ECJ) and the European
Court of Human Rights (ECHR). It can be downloaded on the institute's
website and is released several times a year in German language.
No partnership without social
standards Various religious and
development organizations participate in the Rhineland-Palatinate -
Fujian working group together with the German trade union confederation
DGB and the IG BCE trade union to critically accompany the business
partnership which has been in place since 1989 between the German
federal state of Rhineland-Palatinate and the Chinese province Fujian.
Central issues hereby are labour and social standards. Up-to-date news
from China and the situation in the province of Fujian is also
available on the website. We have arranged numerous
further interesting websites into a collection
of links.
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Brochure on Corporate
Social Responsibility (CSR)
The European Trade Union
Confederation (ETUC) in Brussels released a toolkit on Corporate Social
Responsibility in June 2015, to support members of European works
councils. The brochure presents the existing standards applicable to
CSR and contains a set of checklists to evaluate for example a
management report on CSR. Another goal is how to make the supply-chain
more transparent. The toolkit finishes with examples from companies
where international framework agreements or pan-European employment
agreements have been concluded on this topic. The brochure is available
in seven languages.
Does the supervisory board
employees' bench have any power?
In October 2015, the Hans
Böckler Foundation published a summary of the results of a
survey of employee representatives from sixteen countries on their
experience in supervisory boards. It mainly reveals that the lack of
power cannot be put down to a lack of information. Much more
crucial are the strength of the legal basis for employee representation
and the question of whether strategic decisions (e.g. for dependent
subsidiaries) are actually taken by the supervisory board. The study
should be viewed in the context of the resolution taken by the European
Trade Union Confederation in October 2014, when for the first time, all
trade unions in Europe took a positive stance to codetermination on
supervisory boards (see report in
EWC News 4/2014).
What role do works
councils play in the United Kingdom?
In November 2015, the London branch of the
Friedrich Ebert Foundation and the British Involvement and
Participation Association, IPA, released this analysis of over 10 years
of practice with Information and Consultation in the
workplace. The British labor legislation, with the so-called
"ICE regulations", first introduced a form of "works council light"
based on a EU Directive of 2002. In practice however it is not very
widespread: only 25% of all employees in the United Kingdom are
represented by such a committee. There were also cases, in which the
employer refused to establish a committee as revealed by an overview of
legal proceedings (see report in EWC
News 2/2012). Forthcoming event Current developments in British
labour law are on the agenda of the German-British works council
conference on 7 and 8 April 2016.
How do interregional
trade union councils (IRTUC) work?
This study
which evaluates trade union co-operation in cross-border regions was
released in December 2015. The Saar-Lor-Lux region established in 1976
was the first of the now 45 interregional trade union councils (IRTUC).
The study, sponsored by the Hans Böckler Foundation, focusses
on its origins and activities. Also included in the analysis are the
problems of intercultural communication and the interaction between the
different trade unions involved. Additional case studies highlight the
activities of the interregional trade union council Euregio
(Baden-Alsace-Palatinate), Elbe-Neisse and Burgenland and West Hungary.
The authors also point out opportunities for developing these bodies.
Following texts are only available in German: We have collected further literature into a compilation
of publications.
| 12. The EWC Academy:
Examples of our work
| Autumn Seminars in the Harbour
Hotel Hamburg
The yearly European works
council workshop on legal questions took place from 28 to 30 October
2015. Topics were previous case-law, including current rulings in the
Transdev transport group under French jurisdiction and in the packaging
group Amcor, under German jurisdiction (see report in
EWC News 3/2015), as well as the application of the
EU regulations in cases of legal uncertainty. For the second time running a
seminar was held in parallel, dealing with the global interconnection
of IT systems and data security in the international company. The focus
here was on the question of what possibilities do works councils have
to control or restrict the transmission of employees' personnel data
abroad. With altogether more than 30 participants both autumn seminars
were very popular and will be organized again in 2016.
In-house
training on EU labour law
The EWC Academy held a training
on 16 November 2015 for the Wall company works council in Berlin on EU
labour legislation and its effect on German labour law. Wall, with
1,000 employees, is specialized in the development and production of
street furniture and the marketing of outdoor advertising space. Since
2009 Wall has been owned by the French group JCDecaux who has, up to
now, not yet established a European works council.
Belgian-American
automobile supplier wants to close down sites Since 18 November 2015, the EWC
Academy has been supporting Wabco’s European works council in
a consultation procedure which is underway. This manufacturer of truck
brake systems wants to cutback 320 out of the 6,000 jobs in Europe. On
23 September 2015, central management in Brussels announced the closure
of two factories in the Netherlands and in France. Since then, EWC
Academy advisors have participated in several meetings in Hanover and
Brussels and analyzed the business figures which have been presented by
central management to justify the closures. The European works council
was established in October 2008 following the spin-off of Wabco from
the US group American Standard and is under Belgian jurisdiction
(see report
in EWC News 3/2008).
Frozen food manufacturer about to
establish EWC The German central works council of Frosta
discussed the first steps to establish a European works council on 24
and 25 November 2015 at the headquarters in the fishing port of
Bremerhaven (photo). The EWC Academy provided background information.
With a workforce of 1,500 employees, Frosta is the market leader of
frozen foods in
Germany. Currently one third of their revenue is generated in Eastern
Europe. Apart from the three German manufacturing plants there is
another factory in Poland and sales offices in six further countries.
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13.
Current seminar 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 644 employee
representatives from 238 companies have taken part including many of
them for several times. This represents around 20% of all transnational
works council bodies in Europe. There are in addition the numerous
in-house events and guest lectures at other events. | The EWC Newsletter is published
by:
Participating
in this edition:
Werner
Altmeyer, Katharina Barrie, Reingard Zimmer
Distributor
of the German version: 20,287 readers
Distributor
of the English version: 3,449 readers
Distributor
of the French version: 3,388 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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