Collective Bargaining

The European Commission has published an ‘Enhanced surveillance report’ on Greece which provides a comprehensive framework for monitoring economic developments. On page 22 of this document it reports that the new Development Bill of October 2019 introduced a number of changes to the collective bargaining framework. The Bill introduces the possibility of opting out from sectoral-level bargaining for certain businesses. It also amends the procedure for the extension of sectoral agreements that is no longer automatic, but at the discretion of the Minister of Labour subject to specific conditions. Other new elements include the creation of a public registry for employer associations and for trade unions in order to better verify their representativeness, and a restriction to the unilateral recourse to arbitration.

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After having agreed to arbitration following a strike by the cabin crew at the beginning of the month, the UFO union is threatening further industrial action. Lufthansa will have to give in to the union’s wage demands to prevent the strike. Last time the airline had to cancel one in five flights, at the cost of millions of euros. An important part of the conflict is the seeming refusal of the airline to recognise the union. At the end of the month the two parties resumed talks.

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Contractors and other flexible workers should enjoy a higher minimum wage than those with secure employment, the think tank Demos has urged. A higher rate would insulate workers from some of the risk they face as a result of unsecure earnings. The think tank also suggests that banks or trade unions could administer benefits such as holiday pay. The report, financed by NatWest bank, suggested access to loans and mortgages was poorer for flexible workers. Other recommendations include training from the government and banks on managing finances when being self-employed, and automatic pension contributions.

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Workers, employees and executives of the AB InBev sites of Leuven, Hoegaarden, Jupiler and Bellevue, as well as all warehouses, went on strike for 24 hours. It was a trade union protest against the end to job guarantees and the problems with incorrect payment of wages resulting from the outsourcing of the payroll administration to India.

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Íslandsbanki has laid off 20 employees, most of whom worked at the bank’s headquarters in Smáralind. The bank has shrunk by approximately 90 employees, or 10-12% in total, in 2019. Some of these changes today are organisational in their nature. Job descriptions are changing. Íslandsbanki is fully owned by the Icelandic State Treasury. It is not the only bank to have laid off employees this year. In September, Arionbanki laid off approximately 100 employees.

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The Malta Union of Teachers (MUT) has contacted the Secretariat for Catholic Education after it held a meeting with the Ministry for Education and Employment in relation to situations where serving employees are appointed to another grade with the same employer. The MUT stated that changes in the Public Service Management Code earlier this year, together with changes in the sectoral/collective agreements, implied that serving officers who are promoted or appointed to new grades do not start from the first step of the scale but from a higher point.

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By signing the ACT Memorandum of Understanding, Lidl became the first German discounter to commit to ensuring living wages. ACT stands for action, collaboration and transformation and is an agreement between global brands and retailers and trade unions to transform the garment, textile and footwear industry and achieve living wages for workers through collective bargaining at industry level. Hence Lidl will consequently support freedom of association, collective bargaining and responsible purchasing practices in its garment and footwear supply chain.

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Teachers are expanding an ongoing strike, making it nationwide in their demand for higher wages. The strike has been (partially) ongoing since last month, with classes halted in certain municipalities on particular days. Unions said they are now launching a nationwide strike and that they also plan street protests. The teachers’ strike is supported by 47 trade unions out of solidarity and because they believe that defending the education sector is a priority.

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Ceemet and industriAll Europe, the representative European social partners in the metal industry, have long been jointly advocating for first-class vocational education and training (VET) strategies to support the metal, engineering and technology-based (MET) sector in thriving in and adapting to a fast-evolving world. Although many efforts have been made and interesting initiatives delivered by the European Commission over the past years, Ceemet and industriAll Europe stressed that much remained to be done at their meeting with Commissioner-Designate for Jobs Nicolas Schmit.

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The Deputy Prime Minister announced that 2,089 government workers, or 2.6% of the total workforce, will lose their jobs. The reductions will affect all departments. This year the public sector has reduced it’s work force by 860 people since January.

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