Europe: Unions seeks closer cooperation and mergers
The economic downturn is encouraging many trade unions across Europe to rethink their approaches to labour relations and attempt to increase 'solidarity' across national borders. A recent agreement was reached between the Greek Confederation of Labour and the Confederation of Autonomous Trade Unions of Serbia. In Finland, Matti Huutola, the vice chairman of Finland's largest union confederation SAK, has proposed that closer cooperation should be sought between Finnish and Estonian unions with a view to their eventual merger into cross- border super-unions.

Ballots amongst members of Finland's two largest unions covering the metalworking and chemical sectors have resulted in majority support for a proposed merger of six unions to form a general industrial union. Delegates from the Graphical Workers Union and the Wood and Allied Workers Union have already approved the merger and a final decision has yet to be made by the Railway Workers Union and Electrical Workers Union.

Greece: Challenge to fixed-term work decree
The court of first instance in Athens, Greece has referred a number of questions to the European Court of Justice concerning the compatibility of the Greek law on fixed-term contracts (presidential decree 164/2004) with the EU framework Directive on fixed-term employment (1999/70/EC).

The Greek court is seeking advice on the wording of the decree, which appears to offer "imprecise and non-exhaustive list of exemptions" to the maximum limits for successive fixed-term contracts and to apply penalties that have previously been found ineffective. It is also asking whether it is consistent with EU law to require disputes about fixed-term work arrangements to be handled by the administrative courts. Before the passing of the decree, such disputes were handled by the less formal civil courts, where costs were much lower for claimants (C-519/08).

Netherlands: Draft law on dismissal compensation
The Dutch social affairs minister, Piet Hein Donner, has submitted a bill to the lower house of parliament that establishes an upper limit to compensation of one year's salary for dismissed employees earning EUR 75,000 or more.

One of the ruling coalition members, the PVDA, has proposed that a limit of EUR 75,000 should be applied to all dismissal compensation awards issued by courts and not just to awards for those earning above that threshold. Whatever option parliament takes, there is no suggestion that the limit should apply to dismissals that do not involve court approval. In addition, courts will retain powers to award higher levels of compensation in cases of unfair dismissal.

Slovakia: Support package hit by budget shortfall
A revision of the law on investment assistance has passed through the Slovak Republic's parliament at second reading.
This will open the way for the government to provide financial support for companies (possibly through cuts in payroll taxes) during the period from 1 April 2009 to 31 December 2010.

Slovakia's MPs have also approved bills increasing the tax-free proportion of personal incomes, providing tax rebates for minimum wage earners, and cutting the period for VAT refunds from 60 to 30 days.

Earlier this month, the parliament approved measures to help employers in serious financial difficulties. This will be achieved by the state taking over mandatory health and social insurance contributions for workers who have been temporarily laid off. The government is also introducing subsidies for employers taking on additional workers and incentives for unemployed workers to find new jobs.

Scope for further support and incentives is now limited following last week's forecast that tax revenues in the Slovak Republic will total EUR 11.428 billion this year, compared with the 12.146 billion previously forecast in November 2008.

Other European news in brief

Bulgaria:
The cost of mandatory state health insurance in Bulgaria has recently risen by 50 percent. The total contribution now amounts to 9 percent of gross pay, with employers responsible for around two-thirds of the cost.

Czech Republic:
The number of individuals with private pensions in the Czech Republic rose by 6.9 percent in 2008. 4.2 million now contribute to such schemes, of which 1.2 million also benefit from payments by the state to top up their own contributions.

Denmark:
Denmark is the latest country to introduce curbs on executive pay in the financial sector. The Danish Act on State Capital Injections into Credit Institutions prohibits credit institutions that have received capital injections from introducing, extending or renewing stock option plans for members of executive boards. It also limits the variable element in all executive pay to 20 percent of basic salary. The Danish Act on Financial Stability also limits executive pay to 50 percent of basic salary in financial institutions not receiving state support. In future, financial institutions will only be able to offset half of their executive pay bills against corporate taxes.

France:
The Court of Appeal in France has redesignated a CDD temporary contract as permanent even though it appeared to be concluded legitimately, without specifying a precise term, to cover for an absent employee. This ruling was possible because, in France, the conclusion of a CDD without a precise fixed term is only lawful if the contract specifies a minimum duration. In this particular case, no minimum duration had been agreed (Appeal 06-46055, 14 January 2009).

France:
The basic average hourly remuneration of operatives increased in France by 3.1 percent over the year to Q4 2008. At the end of December 2008, the average collectively-agreed working week was 35.5 hours.

Germany:
The German labour minister, Olaf Scholz, has announced that Germany will not remove current labour market restrictions on workers from the new EU member states (except Cyprus and
Malta) until the end of 2011. In the case of Bulgarian and Romanian workers, the restrictions are likely to remain in place until 31 December 2013.

Netherlands:
The Dutch Cabinet has agreed to allow pension schemes with coverage ratios of less than 105 percent to issue recovery plans that extend over a five-year rather than a three-year period. This relaxation of pension rules will assist many of the country's ailing funds. It was recently revealed that the 600 principal schemes now have an average coverage ratio of just 96 percent.

Norway:
An amendment to S7(3) of Norway's Holidays Act (1988) has been implemented. This removes the necessity for companies to have concluded a collective agreement with employee representatives in order to establish the right of employees to transfer up to 12 annual vacation days to the following holiday year.

Poland:
The Polish Supreme Court has ruled that an employer may not unilaterally terminate an employee on the grounds that they have reached the normal retirement age and have gained the right to draw a pension. Termination purely on such grounds will constitute age discrimination.

Portugal:
Per capita private sector labour costs in Portugal rose on average by 3.8 percent (on a constant hours basis) over the year to Q4 2008. The highest increases were in the regions of Oporto, Lisbon and the Azores (+4.1 percent) and the lowest increase was in Madeira (+1.8 percent).

Romania:
Renault's Romanian subsidiary, Dacia, is planning to increase production by 10 percent from 9 March 2009. This is largely a result of rising demand for its Logan and Sandero models in France and Germany. As a consequence, the company has reversed its earlier announcement to lay-off all 3,000 workers on its third daily shift.

Spain:
The number of foreign workers making contributions to the Spanish social security system fell last month for the sixth successive month. Foreign workers now make up around 10 percent of the Spanish workforce, and their principal countries of origin are Morocco (238,888), Romania (234,198) and Ecuador (215,481). Half of these workers are employed in the hotel, construction and motor vehicle repair sectors.

Sweden:
The general counsel to the Swedish equal opportunities ombudsman is currently carrying out a review of cases heard by the labour court (Arbetsdomstolen) to find out why no ethnic discrimination claim has ended in favour of the claimant since 2003. This includes 12 cases brought by the former office of the ethnic discrimination ombudsman.

United Kingdom:
The UK government has suspended part of its points-based immigration system to ensure that no foreign nationals from outside the European Economic Area (EEA) can come to the United Kingdom and work in low-skilled jobs. From 1 April 2009, non-EEA migrants will have to hold at least a masters degree and have had a minimum previous salary of BPS 20,000 (EUR 22,480) a year to qualify for tier-1 highly-qualified work permit status. Furthermore, employers will only be permitted to hire non-EEA workers with tier-2 skills after first advertising through Job Centres and giving first choice to UK citizens or other residents with existing rights to work.

Copyright: FedEE Services Ltd 2009