A selection of the latest European HR news from the Federation of European Employers (FedEE).

New EWC provisions

The EU's recast European Works Council Directive (2009/38/EC) must be transposed into national legislation across all EU member states by 5 June 2011. This measure amends the former Directive in a number of important ways:

• Transnational matters are clarified. They relate to either the community-scale undertaking as a whole or "at least two undertakings or establishments of the undertaking or group situated in two different Member States". However, there may also be matters that need to be discussed at an EWC level because of the "scope of their potential effects or which involve transfers of activities between Member States".
• The timing of information to be given to employee representatives has been potentially extended by requiring employers to provide it in time for representatives to make "an in-depth assessment" and prepare for consultations. The consultation process must also begin before final decisions have been made by employers. This will slow down decision making and no doubt increase costs when major changes are being proposed.
• The Directive also places an obligation on employers to inform European trade unions and employers’ organisations when negotiations commence. Employee representatives on special negotiating bodies may also request that trade unions be involved in meetings with employers.
• EU member states are required to ensure that negotiations on transnational changes are conducted at the EWC level as well as at a national level.
• there is a new specific obligation on the central management of transnational enterprises to provide the EWC with the means required to fulfil its duties.
• Members of Special Negotiating Bodies (SNBs) and EWCs have a right to receive necessary training and to take time off for that training.
• Existing EWC agreements must be renegotiated if significant changes occur that are not expressly catered for in the current agreement or "there is a conflict between the provisions of two or more applicable EWC agreements" - as in the case of a merger between two enterprises. However, old "article 13" agreements are only affected by the revised Directive if there is no provision in the agreement for renegotiations to take place. To trigger a new request for renegotiation a written request must be submitted, signed by at least 100 employees/employee representatives in at least two locations in different member states.

Whether these changes will give the EWC Directive more teeth has yet to be seen. The UK government, for instance, is leaving existing agreements concluded before December 15th 1999 to continue under unaltered previous regulations. The new rules will only apply to agreements concluded after 4 June 2011 or recent agreements where they were revised in the two years prior to 5 June 2011.

In spite of these uncertainties it remains a good time for multinational enterprises to review their current employee participation arrangements and to plan for any necessary changes to HR policies and practices.

Social networking strike calls unlawful

Social networking sites are becoming increasingly important as the focus for collective action by individuals and disparate social groups. Recently over 100,000 people in Finland joined forces through an online forum to protest against what they regarded as generous pay increases being given to Members of Parliament. Curiously, however, anyone taking strike action on the day agreed by participants could face dismissal for unauthorised absence because the action was not called by a trade union or another form of employee representative organisation.

Other European news in brief

Portugal: Tax-take will reduce net incomes in 2011

The Portuguese Ministry of Finance has warned that because of changes in the ceilings applied to benefits and tax deductions net incomes will fall from January 2011 for most taxpayers. The additional revenue from income tax will amount to EUR 800m.

Switzerland: Growth in multiple jobs

A study carried out by the Swiss federal statistical office has discovered that the proportion of workers with more than one job rose from 4 percent in 1991 to 7.4 percent in 2009. In 2009 10 percent of women had more than one job compared with 5 percent of men and the highest incidence of multiple jobs was in the age group of 40 – 54 years.

Denmark: Extension of expatriate tax advantage

The Danish Minister for Foreign Affairs Lene Espersen has voiced concerns about the current time limit on fixed-rate income tax charges for highly skilled foreign workers. The 25 percent flat rate tax charge on such workers currently extends for up to three years, after which higher paid workers may find their tax payments suddenly double. Espersen would also like to make it easier for non-EEA citizens to take up employment in Denmark.

France: Commission order France to comply with free movement rules

The European Commission has given the French government until 15 October to rectify its laws in order to permit freedom of movement for Roma people originating from other EU countries. In July 2010 President Sarkozy ordered a clampdown against Romanian and Bulgarian Roma immigrants. Since then more than 1,000 have been expelled and over 100 camps have been demolished.

Netherlands: Concerns about ageing workforce

A survey carried out by the Dutch social benefits organisation UWV has found that 45 percent of companies expect to increase the size of their workforces during the coming year. 38 percent of companies cited their ageing workforce and 32 percent retention of key staff as the most important challenges facing their enterprise.

Germany: Regional wage differentials

Twenty years after German reunification 67 percent of the population of west German states and 91 percent of east German states believe that no wage differential can be justified between eastern and western German states. However, the fact remains that east German workers have wage levels that are only 75 percent those of their west German neighbours.

Belgium: Private use of company mobile phones

The way that the private use of mobile phones is treated under Belgian social security rules has been uncertain ever since the beginning of this year when the government withdrew its Royal decree applying a special levy on such use.

Now the National Social Security Office has decided to apply the levy. This means that if an employer has in place a valid way to distinguish between business and private calls then social security will only be charged on the private call element. If no such system is in place then an employee's income for social security purposes will be raised by EUR 12.50 per month and contributions charged on the total sum.

Russia: Government to trim jobs but maintain real salary levels

The number of state employees in Russia will be reduced by 20 percent over the next three years. According to the 2011 budget presented to the Duma (parliament) earlier this week, this will allow the government to maintain welfare obligations and index salaries in line with price inflation for those public servants who remain in post.


Copyright: FedEE Services Ltd 2010