At the end of an official visit the IMF describes the preliminary findings in a Concluding Statement, the basis of a report on the state of the economy. The IMF estimates that with the actual growth path a return to pre-crisis (2007) output levels will only be reached by the mid-2020s and, as a consequence, the country will stay behind the faster growing euro area average. The IMF praises the reforms and the labour market legislation that is being implemented, in particular the Jobs Act. In the statement it is recommended to build up a new wage bargaining system that helps align wages with productivity, in order to improve competitiveness: by broadening the scope for firms, specifically smaller enterprises as well as many in the South, to engage in effective firm-level negotiations that strengthen the link between wages and productivity.
English: http://www.imf.org/external/np .
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Watch manufacturers are increasing shedding workers. Exports of luxurious watches are slowing as Chinese consumers are buying less, and a stronger currency is also hurting their business. Cuts have been made mostly in administrative jobs so far, but some skilled professionals are starting to feel the pressure, Trade union Unia that has started negotiations to minimise the number of workers to be dismissed admitted that job cuts included not only administrative staff, but also skilled workers who are responsible for major production work. In the watchmaking industry, skilled workers have long been provided sanctuary from job cuts resulting from temporary fluctuations in the market to allow for long-term training.
English: http://asia.nikkei.com/Business/Trends/As-China-slows-Swiss-watchmakers-cut-jobs
Nokia has wrapped up its latest round of redundancy talks, which began on 13 April. The original target of cutting some 1300 jobs has been narrowed down to 1032. Last year, before its takeover of French rival Alcatel-Lucent, Nokia had an average of 6900 workers in its home country. The negotiations covered all of the company's sectors except for Nokia Technologies. The firm says most of the jobs will be phased out this summer, with the rest by the end of 2016. Nokia offers outgoing staff financial support based on how long they worked for the company.
English: http://yle.fi/uutiset/nokia_to_cut_1032_jobs_in_finland .
The lengthy and highly disruptive hotel strike that was reported in last month's Newsletter ended in what the trade unions were calling a victory. Hotels that have been closed by the strike were due to reopen on 21 May. The trade union federation Fellesforbundet reached an agreement with hotel and restaurant employers' organization NHO. Striking hotel workers were jubilant after they prevailed in their demands for the right to local negotiations and higher wages for the lowest-paid hotel workers.
English: http://www.newsinenglish.no/2016/05/21/hotel-strike-over-workers-jubilant/
The government struggles to end a strike an unprecedented strike of prison staff. The dispute, involving penitentiaries in Brussels and the regions, shows no sign of being resolved. Prison wardens rejected a draft agreement between the justice ministry and the unions aimed at ending the strike which began over staffing cuts. The prison system has been condemned as `disastrous' by senior lawyers. The government decision to call in the army to help is controversial. The unions consider a dangerous precedent to use the military forces to sort out a social issue. Dozens of striking workers gathered outside Forest prison on 10 May to call on the government to resolve the conflict. Trade unionists and prison workers demanding an end to austerity and better working conditions organised a demonstration into the justice ministry in Brussels on 17 May.
English: http://www.straitstimes.com/world/europe/unrest-brewing-in-belgiums-prisons
http://www.bbc.com/news/world-europe .
Construction trade union IG Bau and employers in the construction industry agreed a wage increase of around five percent for some 750,000 workers in the sector. The employers' federations, ZDB and HDB, and the IG Bau agreed on a pay increase of 4.6 percent for workers in the west of the country in two stages over a period of 22 months. And workers in the east of the country will receive an increase of 5.3 percent. The deal was later on approved by the union's bargaining committee.
English: http://www.breitbart.com/news/german-unions-bosses-reach-wage-deal .
Wage increases of 10 percent, way ahead of inflation, are now being pledged for health workers as well as teachers. And such sizable increases have been seen in some of the most dynamic parts of the private sector as well. The push to boost pay in the health sector comes against a backdrop of a shortage of doctors and nursing sisters. Promises of 10 percent pay increases for 2017 have been made to teachers, traditionally amongst some of the worst paid graduates in the state sector. However, the actual proposals come up with a five-percent pay rise for teachers. For the teachers' trade unions, the proposal is unacceptable; the unions made clear they would not stand for less than a ten percent increase. The unions have set aside the next two weeks for possible negotiations.
English: http://www.radio.cz/en/section/news/teachers-unions-call-proposed-five-percent .
http://www.radio.cz/en/section/business/double-digit-pay-rises-make-waves .
The Prague Public Transport Company (DPP) workers' trade union has declared a strike alert in reaction to the dismissal of DPP General Director Mr. Duris. He was dismissed by the DPP board of directors on the recommendation of the supervisory board of the company, which is the largest firm run by the city of Prague. The transport union representative said the strike alert is a warning so that a strike did not come out of the blue, if steps towards destabilisation of DPP appeared. The union will terminate the strike alert as soon as all their questions are answered adequately.
English: http://www.praguemonitor.com/2016/05/20/prague-transport-union-strike-alert .
In a trade union blog, the European Commission's consultation on the EU-US trade deal known as TTIP is explained. The EU has commissioned independent researchers to produce assessments of the impact trade deals might have on workers, the environment and society. The European Commission has committed to acting on the recommendations of these impact assessments saying they will `feed into and steer the negotiations.' This creates the opportunity for trade unions to ally across the EU in a special civil society dialogue event. According to the author of the blog, very large risks to public services, health and safety and workers' rights are to be expected, apart from slight wage gains for high skilled workers.
English: http://touchstoneblog.org.uk/2016/05/eu-launches-public-consultation .
The British Medical Association's (BMA) annual conference of LMCs, which represent GPs has voted to ballot on potential strike action, days after junior doctors reached a deal with the administration intended to end their bitter dispute. Hundreds voted in favour of canvassing GPs on their willingness to sign undated resignations and take industrial action in response to what they say is an inadequate rescue package from NHS England to stop services crumbling under unsustainable workloads and a severe recruitment crisis. The deal in the long-running dispute over a new junior doctors' contract has been agreed between government negotiators and the British Medical Association leadership after eight days of talks at conciliation service Acas. The deal includes several major changes in working conditions such as: the basic pay rise; the payment of supplementary hours; extra pay for night shifts (to be reduced from 50% to 37%) and extra support will be made available for doctors who take time out (i.e. maternity leave).
English: http://www.theguardian.com/society/2016/may/20/gp-leaders-vote-ballot-strike .
http://www.bbc.com/news/health .