Collective Bargaining

The government modified the overtime bill without prior consultation and made it possible for employers to unilaterally apply even more flexible working time arrangements. According to the Vasas trade union’s vice president, the government is moving to fully pass the cost of managing the pandemic onto the workers. According to the union, workers will now become completely vulnerable to the multinationals. The employee now becomes indebted to the employer, who can give an advance on wages for one to two weeks or even a month due to downtime and demand the debt be repaid within 24 months.

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The government will increase the amount it pays to companies to cover salaries of employees who have been put on reduced hours, as it fights to lessen the effects of the COVID-19 outbreak on the economy. The government said it would temporarily cover up to 86% of wage and labour tax costs for workers who were partially laid off.

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The construction workers’ union FNV Bouwen en Wonen closed an agreement with construction employers on how to manage COVID-19 risks in the workplace. The agreement was concluded after the union investigated the effects of the pandemic on working in the sector. Only a third of the workers felt safe to continue working during the crisis.

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Trade union De Unie reached an agreement on employment conditions for the 4,000 employees of the online supermarket Picnic. On 17 April 2020 the agreement was accepted by a majority of the employees who voted. The other unions, however, refuse to sign it, as they want Picnic to be under the jurisdiction of the supermarket collective agreement.

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The trade union confederation OGBL is positive about the measures taken to stem the spread of the COVID-19 virus. It also criticises measures which go against the interests of employees and their families such as the authorisation of dismissal for ‘serious reasons’ during a period of incapacity for work, which according to the Labour Code is not allowed in normal times.

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An initiative to help the hospitality industry after the decision by the government to close down the whole sector, also wants to provide those working on the front lines with free accommodation. Around 50 hotels have so far joined the project. The general public can support the initiative by buying vouchers to stay in one of the hotels after the crisis.

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Under Denmark's flexicurity model, employers have been given free rein to hire and fire workers, in order to help businesses adapt to the ups, downs and shifts in markets. But the coronavirus crisis is not about adapting to market changes. Denmark, like many other countries, ordered many businesses to shut down to stem the spread of COVID-19. To encourage firms to not let go of their employees, the government is compensating them for 75% of wages of up to €4,000 per month. For those on temporary hourly contracts, the state will pay 90%.

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The leading energy companies, including Petrol Ofisi and the largest foreign investor SOCAR Turkey, announced that they will make no layoffs and work to secure employment during the country’s fight against the coronavirus pandemic, along with taking all necessary measures to protect employees’ health.

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The football club Partizan Belgrade has slashed player, staff and board wages by 50% for the next three months to cut losses during the coronavirus pandemic. Leagues across Europe have been trying to reach agreements over wage cuts after global sport came to a virtual standstill due to the coronavirus pandemic.

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Amendments to the Labour Code regulating idle time due to the state of emergency and quarantine came into effect. From now on, additional conditions will apply to declaring idle time. Subsidies will be paid to employers who declare idle time because they cannot provide employees with agreed-upon work and if due to the work organisation there is no possibility to work remotely or the employee does not agree to take on another job.

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