Included: Court side-steps treaty pay exclusion, Sarkozy unwraps his new social contract, Spain's largest retailer loses discrimination case and latest European labour force survey (LFS) also reveals that an average EU employee's working week is 33.5 hours for women and 40.9 hours for men.

ECJ: Court side-steps treaty pay exclusion

The European Court of Justice (ECJ) has recently ruled on a Spanish case that questioned whether equal treatment for fixed-term workers should also apply to levels of remuneration.

In the text of the judgement, the court argued that Article 137 (5) of the EC treaty specifically excludes questions relating to pay and that, in drawing up the treaty, it was 'considered appropriate to exclude determination of the level of wages from harmonisation'. Having made such an observation, it would have then been logical to conclude that the treaty did not provide a lawful basis for the EU Fixed-Term Workers Directive (1999/70) to set down specific provisions relating to pay. However, this would have meant that the court had to challenge the very basis of the directive and open up other directives to subsequent challenge. It therefore took up case law challenges raised by the Spanish, Irish and UK governments to pursue a different line of reasoning out of which it could advance through a non- sequitur to conclude that pay does come within the scope of the directive.

The ECJ has frequently had problems with the interpretation of treaty exemptions and general clauses applicable to the social and employment dimensions. As a consequence, it continues to mount up case law that is often based on false readings of the treaty and flawed logic (Case C-307/05, September 13th 2007).

France: Sarkozy unwraps his new social contract

French President, Nicolas Sarkozy, has proposed a number of reforms as part of his 'nouveau contrat social'. The principal changes are:

• Tax penalties for retirement before the age of 65 and incentives for workers who wish to continue to work beyond the normal retirement age.
• The removal of a facility enjoyed by unemployed workers aged over 57 to draw unemployment benefits without actively seeking further employment.
• The further easing of working time restrictions and greater scope to exceed the 35 hour standard working week through workplace collective agreements.
• The merger of the ANPE state employment agency with the UNEDIC unemployment insurance system.
• Relaxation of rules relating to employment contracts and the simplification of dismissal procedures.

The two sides of industry have been given four months to come up with proposals to reform the labour market. If they do not, President Sarkozy has warned that the government will press ahead with its own legislative agenda. Meanwhile, studies are underway to determine the scope for reducing the number of government employees. Current estimates suggest that as many as 100,000 civil service jobs could be scrapped within the next five years.

Spain: Largest retailer loses discrimination case

Spain's largest retailer, El Corte Ingles, has been found guilty of discrimination by Social court 13 in Barcelona for failing to promote women in four of the company's stores. The civil suit against the company was brought by trade unions and Catalonia's labour inspectorate. Although the case dates back to 2005, the timing of the judgement makes it the first of its kind under Spain's new far-reaching gender equality law.

El Corte Ingles has issued a statement saying that it will appeal, noting, 'We promote fewer women because our hours are long and many women, particularly mothers, do not want the extra responsibility and longer hours because they have to look after their children. We are a very large company and reflect society in this respect.'

Other European news in brief

EU: 
In the European Union, 31.6 percent of women and 7.8 percent of men work part-time, whilst 14.6 percent of women and 13.5 percent of men are subject to temporary contracts of employment. The latest European labour force survey (LFS) also reveals that an average EU employee's working week is 33.5 hours for women and 40.9 hours for men. Although the overall employment rate for women in the EU is 57.4 percent compared with 71.5 percent for men, the female employment rate is much higher in Sweden (70.2 percent), Denmark (72.4 percent), Norway (72.8 percent) and Iceland (81.0 percent)

Germany:
 An original dismissal letter signed by the employer, or the employer's representative, must be handed to an employee for their dismissal to be valid. The Higher Labour Court in Düsseldorf has ruled that the presentation of a photocopy of a dismissal letter is not sufficient for a dismissal to be effective, even if the employee was shown the original letter (Az.: 12 SA 132/07).

Hungary:
Year-on-year private sector wage growth in Hungary was 10.8 percent in July 2007, down from 11.4 percent in the previous month. With HICP consumer prices rising by 8.3 percent over the same period, the real increase in spending power was 2.5 percent.

Irish Republic:
The decision by the Vatican to alter the official date for St Patrick's Day in 2008 has caused some confusion for Irish employers. The change has come about because the traditional date for St Patrick's Day falls in Holy Week next year. However, although the Church festival will take place on Saturday, March 15th, the bank (public) holiday on March 17th will remain unchanged.

Slovakia:
The Slovak labour ministry has drafted a parliamentary bill increasing the parental allowance for a first born child from 11,000 koruny (325 euros) to 20,440 koruny (603 euros). When added to the existing childbirth grant the total allowance would be 25,000 (738 euros).

1 October 2007

Copyright: FedEE Services Ltd 2007