Collective Bargaining

At a meeting between the trade union confederation, employers and the government where all agreed to share the responsibility in fighting COVID-19, the unions said that employers were not taking the situation seriously. IG Metall (the metalworkers’ union) demands that employees receive wage subsidies in addition to short-time work benefits. IG BAU (construction workers’ trade union) started a petition to call for an increase on of the short-time work allowances from 60% and 67% to 90%.

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The government has approved a package of employment-related measures to cope with the economic and social impact of COVID-19. This package includes measures that employers can impose unilaterally, such as temporary suspension of contracts and reduction of working time by between 10% and 70%. Employees would be entitled to unemployment benefits to (partially) compensate the decrease of salary.

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Banking staff who are working without adequate protection against the coronavirus epidemic may be forced to go on strike to ensure their safety, the head of the sector's main union FABI said. Faced with the outbreak of the new coronavirus, Italian banks have closed hundreds of branches and cut opening hours. But Italy's elderly population, especially in the south, is heavily dependent on help from tellers, and unions fear a surge in branch visits because of pension payments.

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The government announced that they will provide €2 billion, equivalent to 4% of GDP, to help the economy and its citizens overcome the impact of the coronavirus outbreak. Many companies have had to stop production because of a lack of components or as part of measures to try to slow the coronavirus outbreak. Until the end of May, the state will pay a basic income to the self-employed whose business has been affected. Hourly wages of professionals, such as doctors and nurses working to fight the epidemic, will be increased by up to 200%, while the salaries of government officials will be reduced by 30% while the outbreak continues.

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Several measures have been implemented in order to minimise the economic impact of the COVID-19 virus. The Ministry of Labour and Social Protection issued a series of recommendations in order to make labour relations more flexible. The measures include the right to parental leave for one of a child’s parents in the case of the temporary closure of schools, in which case the parent receives an allowance of 75% of their wage. An employee who is in forced quarantine will also receive an allowance of 75% of the wage. If an employment contract is suspended at the initiative of the employer, the employer should pay an allowance of 75% of the wage.

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The OECD released a new web portal in response to the COVID-19 virus outbreak, “Tackling the coronavirus – Contributing to a global effort”, that provides useful policy analysis and lists short-term policy solutions to cushion the impact of the crisis. One of the policy papers published considers the options for an immediate employment and social policy response, including measures to support employment and wages.

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Employer representatives proposed to the government measures to mitigate the impact of the lockdown that has been imposed to contain the coronavirus epidemic, including full coverage of sick leave in relation to the virus, partial pay compensation for workers who currently do not have work, and financial injections for companies.

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Three metalworkers unions in the Lombardy region, FIOM, FIM and UILM, said they would strike to protect the health of their members, because a government decree temporarily shutting many businesses due to the coronavirus contains too many loopholes and exceptions. The unions declared in a statement that the list of companies that can continue working has been extended and allows for too many exemptions. The unions announced a one-day strike.

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Due to the spread of COVID-19, ten companies have submitted collective lay-off notifications to the State Employment Agency (NVA), informing the agency of a planned lay-off of 1,660 workers. Lay-off notifications have been received from the transport, storage, accommodation and catering sectors, as well as wholesale and retail trade industries. Companies working in water supply, and sewer processing and waste processing industries have also reported plans for lay-offs.

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More than 100,000 people have been temporarily laid off in Norway because of the coronavirus crisis. Emergency legislation has allowed businesses to dismiss their staff with just two days’ notice. Employees can be temporarily laid off from their job. The employer is then temporarily exempt from pay obligations, but the employment relationship continues, and it is assumed that the work stoppage is only temporary.

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