Highlights, 11 Jun 2013

11 Jun 2013
Finland: New national agreement talks collapse
Talks have broken down over a new centralised national framework agreement, which would cover 94% of employees in Finland. After three weeks of exploratory negotiations, the social partners found that the positions and preconditions of the trade union confederations and the Confederation of Finnish Industries remained so polarised that there was no basis for discussions. Following this, a high level of industrial action in the autumn is predicted.
11 Jun 2013
Ireland: €12 million plan to rescue Lufthansa pensions
Management and unions at the long-established aircraft maintenance plant, Lufthansa Airmotive Technik Ireland, have agreed a proposed solution to their company pension fund crisis. It involves a phased €12 million injection into the fund by the German parent company, and means a transfer from the current defined benefit scheme to a new defined contribution scheme. This will preserve existing member benefits and allow employees a reasonable prospect of a good pension.
06 Jun 2013
Italy: Solidarity contract saves jobs at major steelworks
Italian steel maker Ilva, which has been at the centre of a court battle over the environmental impact of its Taranto plant, has requested a wage guarantee fund for 6,507 workers at risk of redundancy. Following consultations with the government, the company and trade unions have agreed on a solidarity contract that will reduce the working time of all workers for two years. The company has agreed that at the end of this period, it will not proceed with collective redundancies.
06 Jun 2013
United Kingdom: Government gives the nod to minimum wage increase
The UK government announced in April 2013 that it had approved below-inflation increases in statutory national minimum wage rates, effective from October 2013. The Confederation of British Industry and the Trades Union Congress gave the move a measured welcome. The employers’ organisation said that the impact of the adult rate needed careful monitoring, given low pay increases across the economy, while unions would have liked minimum wage rates to have risen further.
31 May 2013
United Kingdom: Rise in migrant workers impacts workers and employers
A report published by the UK Chartered Institute of Personnel and Development in March 2013 suggests that the rise in the employment of migrant workers, which is often attributed to the better skills or work ethic of these workers, reflects a complex mix of factors and has long-term implications for both young British workers and employers. The report highlights the value of ensuring that career progression paths are set out clearly for entry-level employees.
31 May 2013
EU Level: Postal sector is getting greener
European social partners in the postal sector have been looking at how to minimise the sector’s environmental footprint, and in April 2013 released details of their two-year study. It shows many firms are developing more energy-efficient fleets and buildings. Companies are searching too for alternative fuels and are thinking about reorganising mail routes in order to cut emissions. Efforts are also being made to ensure subcontractors share and respect this commitment.
31 May 2013
Portugal: New austerity measures after Constitutional Court rejects government plans
An austerity package in Portugal, announced on 3 May 2013, includes cuts of €3 billion and will mostly affect civil servants and pensioners. These two groups had benefited from the decision of the Constitutional Court on 5 April 2013 to reject four measures included in the state budget. The package will affect 30,000 civil servants, causing redundancies, wage and pension cuts, longer hours and higher contributions to their health insurance. Their retirement age will also rise.
31 May 2013
EU Level: Report on impact of the crisis on social dialogue
The European Commission published its report, Industrial Relations in Europe 2012, in April 2013. The report on the impact of the economic crisis on social dialogue and industrial relations, focuses on the public sector, and says fiscal consolidation, aimed at cutting government deficits and debt accumulation, has hampered social dialogue. However, it states structured social dialogue is still the best way to ensure the sustainability of economic and social reforms.
24 May 2013
Spain: Job cuts at restructuring flag carrier airline
The Spanish airline Iberia is shedding 16% of its workforce after recording operating losses for the last four years. The company put forward two plans, one in November 2012 that would have led to 4,499 job cuts, and a second earlier this year that reduced job losses to 3,807. Both were rejected by unions, the second triggering threats of strike action. A third plan from a government-appointed mediator has reduced job losses to 3,141 and has been accepted by more than 90% of the workforce.
24 May 2013
Poland: First general strike in 30 years
A general strike protesting at the Polish government’s labour policies was supported by around 85,000 workers in the Silesia region in March 2013. All three of the country’s nationally representative trade union confederations and two radical unions were involved with the aim of drawing attention to problems with social dialogue. The unions also oppose plans to make working time even more flexible and to allow the number of ‘junk’ employment contracts to increase.
24 May 2013
France: Renault signs first competitiveness agreement for France
The French car manufacturer Renault signed an agreement with unions in March 2013 intended to improve its competitiveness, avoid the closure of any of its French sites and avert any redundancies. Around 7,500 jobs will be cut through non-replacement of staff who choose to leave voluntarily. It is the first time that the group has negotiated this type of agreement in France, but it has previously signed similar agreements in Spain. Of its 128,653 employees, 42% are based in France.
24 May 2013
Slovenia: Retirement age increase as reforms take effect
An overhaul of Slovenia’s pension system to tighten retirement conditions took effect on 2 January 2013. The changes are intended to cut the cost of state pensions. The full retirement age for both men and women has been increased to 65, or after 40 years of pensionable service if the worker is at least 60. Incentives to encourage people to stay at work beyond state pension age include being able to claim 20% of the pension they would have drawn, in addition to their salary.
16 May 2013
EU Level: Electricity sector training needs agreed
Training and competencies are to become a focus for the social partners of the European electricity sector. In March 2013 they adopted a joint framework intended to anticipate the changes necessary to ease Europe’s transition towards a low-carbon economy. These include making the sector attractive to young people, and equality mainstreaming to guarantee consistent recognition of qualifications throughout the industry, fair access to training and age diversity.
16 May 2013
Germany: Union membership holds up well
According to the latest figures from the Confederation of German Trade Unions (DGB), the combined membership level of its affiliated trade unions declined by 0.1% in 2012. Compared to previous years this meant that the overall consolidation continued. Four out of eight affiliates, among them the metalworkers’ union IG Metall the largest DGB union, increased membership in 2012. Others, most notably the rail- and the construction workers, only managed to slow a downward trend.
16 May 2013
Latvia: Alarm over service pension reform proposals
Wide-ranging reforms to so-called ‘service pensions’ are planned in Latvia. These pensions are paid out early to people who work in professions which are either dangerous, or where their ability to work is heavily dependent on their age and health. The Ministry of Welfare wants to raise the age of eligibility by an average of eight years and exclude a number of professions. The Trade Union of Culture Workers, the Ministry of the Interior and police are all unhappy with the plans.
10 May 2013
Romania: Impact of legislative reforms on industrial relations
The International Labour Organization has called on Romania to make changes to its labour and social dialogue legislation. The move comes after a study on the Labour Legislative Reforms in Romania was published in January 2013 by a group of independent experts. The experts, and a round table meeting that coincided with the release of the study, conclude that labour reform in 2011 had a negative impact on workers. It affected union coverage and access to collective bargaining.
10 May 2013
Greece: New rules for minimum wage-setting and other developments
New legislation has given the Government of Greece sole powers to set the national minimum wage. Social partners will be consulted, but in the past they have been part of a collective bargaining process. In other developments, the Association of Greek Tourism has been recognised as a social partner at national level, and the government has launched a new round of national social dialogue through the re-establishment of the national committees for employment and social security
10 May 2013
Bulgaria: Unions in Bulgaria and Romania establish interregional council
An interregional council representing workers in Bulgaria and Romania has been created. Set up by the Confederation of Independent Trade Unions in Bulgaria and the Romanian National Trade Union Confederation, it will now be open to other trade unions, employers’ groups and non-governmental organisations to join. The aim is to boost employment and to ensure free access to the labour markets of the two neighbouring countries through joint initiatives and measures.
07 May 2013
Greece: How austerity measures have hit jobs
The policy of budgetary adjustment in Greece has had an enormous negative impact on the labour market. The austerity measures have meant a huge number of jobs being lost. Four years after the onset of the economic crisis, questions are being asked about the methods used to tackle the situation. Already unemployment stands at 27%, and is predicted to go higher in 2013. Meanwhile the IMF has admitted the strict austerity programme imposed on Greece was based on incorrect calculations.

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