The forthcoming fifth government Report on Poverty and Wealth indicates that more and more citizens are either very rich or very poor. The rich are getting richer, and the poor are getting, if not necessarily poorer, then more numerous. The report won't be published until early 2017, but preliminary details have been leaked to various newspapers. 4.17 million citizens - some 6.1% of the population - are heavily in debt, and pay in the low-wage sector by no means kept pace with the national average. The number of homeless people went from 223,000 in 2008 to 335,000 in 2014. Some 5.6% of the population are now officially classified as poor, and around one-fifth of the populace is threatened by poverty. Another report of the Cologne Institute for Economic Research Poverty (IW) stresses that it is not just a question of how much money an individual makes, but also what he or she can actually buy with it. The researchers looked into relative income poverty, defined as earning less than 60 percent of the median income. They also calculated the purchasing power residents have in different regions and cities.
English: http://www.dw.com/en/latest-figures-show-poverty-increase …
The IW report (in German): http://www.iwkoeln.de/presse/pressemitteilungen …
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Every two years the trade union confederations and their counterparts on the employers’ side negotiate a general agreement for the private sector. In this overall agreement, an indicative development of wage and working conditions is formulated that is later on the reference for negotiations at sectoral and company level. The trade unions have declared that time is ripe for a serious improvement of wages after a two years’ wage freeze, dictated by the government. The leader of the trade union confederation ABVV/FGTB stated that the government’s policy is contributing to a ‘race to the bottom’ that makes employers lazy. The central economic council (CRB), which includes representatives from both sides of industry, calculated that trade unions and employers have to examine the scope for actual wage increases within a 1% margin.
English: http://deredactie.be/cm/vrtnieuws.english/News …
French: http://www.fgtb.be/-/aip-les-negociations-ont-commence
http://www.cgslb.be/fr/articles/comite-national …
Dutch: https://www.acv-online.be/acv-online/Themas/Sociaal-overleg …
http://www.tijd.be/opinie/algemeen/Loonkostendebat …
In a Barometer of employer share ownership policies in Europe it is concluded that all recent policy developments in Europe, with the exception of France, pave the way towards higher incentives for employee ownership. According to the authors, the development of employee share ownership brings better motivation, productivity, profitability, higher growth, more and better jobs.
English: http://www.efesonline.org/BAROMETER …
The socioeconomic institute WSI published its annual balance of the outcome of the collective bargaining in 2016. The results in the sectors range from 1.5 to 3%, with most branches concentrated around a pay increase of 2.5%. The level of the inflation and the costs of living stayed at the low level of 0.5%. The institute estimates that the increase in real terms of the collective agreed wages ends up to a maximum of 2%.
German: http://www.boeckler.de …
The report (in German): http://www.boeckler.de/pdf …
A two-year pay deal for about 7,400 employees at car giant Nissan was hailed by Unite on 13 December 2016. The workforce accepted the deal by a large majority of 68%, which starts on 1 January 2017, for the staff at NMUK in Sunderland and the Nissan Technical Centre Europe (NTCE) at Cranfield, Bedfordshire. This will mean 2.75 per cent plus a £750 lump sum for year one and in year two, 2.75 per cent from 1 January 2018. An increase in maternity paid leave from 18 to 26 weeks starts in January 2017.
English: http://www.unitetheunion.org/news/two-year-nissan-pay-deal-excellent-news ...
In 2009, an agreement promised to increase public sector wages by 6% per year as soon as the economy grew by 2% on average in two consecutive quarters (see earlier Newsletters). After years of recession, the economy did return to growth in 2015 and the condition thus met. However, the government referred to the fragile budget as a reason for why the increased failed to materialize. Negotiations between the government and public sector trade unions failed to lead to an agreement. The unions demanded the full 6% while the Labour Minister pointed to the protection of state finances as the reason why no agreement was reached. The annual wage increase of six percent would cost the budget up to 1.8 billion kuna, or 0.5 % of GDP.
English: http://www.businessinsider.com/r-croatia-government-and-public-sector-unions ...
The garbage collectors in Budapest are planning to strike, if their demands are not met. Budapest Public Area Maintenance Company (FKF) workers have scheduled a strike for before the Christmas holiday after wage negotiations with the company broke down. The company FKF is responsible for cleaning public areas and clearing snow from areas of the inner city. The company recently granted its workers a 4% wage increase, denying their demands for an 8% rise. In November 2016, the Parliament mandated a 23% increase in minimum wages in the run-up to the 2018 election. However, certain classes of public service workers are excluded from the deal. Local Industrial and City Economy Workers Union, HVDSZ, has turned to a court to agree on the legality of the work stoppage, and to determine what basic functions the FKF must still perform during the strike to ensure ‘sufficient service’, a legal condition for a strike. The court is expected to hand down its decision soon, after which the strike could begin.
English: http://budapestbeacon.com/news-in-brief/budapest-garbage-haulers-to-strike …
After several rounds of bilateral negotiation between trade unions and steel manufacturing giant ArcelorMittal, the government had initiated a tripartite meeting to find a way out. Solutions have been found with regards to the early retirement plan as well as the provision for occupational rehabilitation which the ArcelorMittal wanted to dispense with. Both the unions and the company agreed on the topic of investments.
French: http://www.lessentiel.lu/fr/luxembourg/story/Des-embauches-esperees …
A UK couple agreed to a landmark settlement worth more than £1m in compensation and legal costs for a group of migrants who were trafficked to work on farms producing eggs for high street brands. The deal reached with six Lithuanian chicken catchers is the first settlement of a claim against a UK company in relation to modern slavery, and came after the group became frustrated at the lack of a criminal prosecution. The couple agreed to the compensation deal after a high court ruling found that they had failed to pay the national minimum wage, had made unlawful deductions from wages and had failed to provide adequate facilities to wash, rest, eat and drink. The claimants alleged to the court that they had been threatened and assaulted by Lithuanian supervisors who intimidated them with fighting dogs, and that they were housed in appalling conditions.
English: https://www.theguardian.com/uk-news/2016/dec/20/gangmasters-agree …
Fashion retailer Blanco has announced the closure of its 102 shops and the dismissal of 850 employees. Blanco is declaring insolvency for the second time in Spain (and Portugal) in three years, after the current owners, AC Modus, did not find an ‘ideal investor’ for the business. AC Modus only acquired the company recently. Blanco had told employee representatives in September that it planned to launch a redundancy scheme that could affect a significant part of its workforce. The company said during those talks to respect a 30-day consultation period with the aim to reach an agreement with as many workers as possible.
English: http://www.spanishnews.es/20161210-spanish-fashion-retailer-blanco ...