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European Employment Review
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  THE EDITOR'S MESSAGE Issue 404  
  MULTINATIONALS SIGN CROSS-BORDER AGREEMENTS

Increasing numbers of multinational companies are signing agreements of worldwide or European scope with European Works Councils and international trade union organisations. The content ranges from general labour rights principles to specific HR policies.

In this issue of European Employment Review, we look at recent transnational agreements at Suez (utilities) and Schneider Electric (engineering), dealing with forward-looking management of employment and skills, profit-sharing, anticipating change, and equality and diversity. Suez in particular has arguably gone further than any other multinational in developing transnational negotiations on key HR policies.

The list of companies involved remains relatively short but is lengthening steadily. With collective bargaining becoming more decentralised in many countries, the move towards negotiations at international level may seem paradoxical. The most important factors explaining such cross-border bargaining appear to include the presence in a multinational of: a high degree of transnational integration of company operations and structures; a strong employee-side bargaining party; and issues and policies in relation to which a negotiated European or global framework brings benefits to management – these might include a reduction in the “transaction costs” of conducting separate negotiations in each country or subsidiary.

XpertHR Mark Carley,
Editor,
European Employment Review

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  NEWS

EU Commission: Consultation launched on European Private Company Statute

The European Commission has started a public consultation exercise on the idea of a European Private Company Statute – a standard form that privately owned firms could use to operate across the EU. The consultation includes the issue of employee involvement arrangements.

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EU social partners: Partners will evaluate parental leave and work–life balance

In July 2007, the central EU-level social partner organisations announced that they will evaluate their 1995 framework agreement on parental leave, along with other arrangements supporting parents and work–life balance. The move comes in response to a consultation by the European Commission.

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International: Companies issue shares to employees worldwide

During summer 2007, three multinational companies headquartered in France – Rhodia, Société Générale and Thomson – introduced or extended schemes offering shares to their employees around the world. The aim is to increase employee commitment.

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France: Transport strike law adopted

The French parliament adopted government legislation on dispute prevention and minimum services during strikes in public transport on 2 August 2007, despite parliamentary opposition and trade union protests.

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Germany: Minimum wage will be set for postal sector

The conservative–social democrat coalition government has decided to extend the Posted Workers Law to the postal services sector, which will allow a binding minimum wage to be set for this industry.

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Italy: Agreement signed in tourism sector after long delay

On 26 July 2007, after lengthy negotiations, a new collective agreement was signed covering more than 1 million employees and 300,000 companies in the tourism industry. The previous agreement expired in December 2005.

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RELATED ARTICLES ON XPERTHR

EU: European Company Statute adopted

EU: Commission wants action on work–life balance

France: Minimum services proposed during public transport strikes

Germany: Coalition agrees minimum wage compromise

Germany: Posted Workers Law to be extended to cleaning sector

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  FEATURES

EU: Commission plans to tackle the gender pay gap

With statistics indicating that women continue to earn on average 15% less than men across the EU, the European Commission has outlined measures aimed at narrowing the gender pay gap. The plans include a possible strengthening of the EU legislative framework on equal pay.

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International: Schneider Electric signs Europe-wide agreement on 'anticipation of change'

Schneider Electric, the France-based power and control engineering multinational, signed a European-level agreement on "the anticipation of change" with the European Metalworkers' Federation on 12 July 2007. The innovative accord promotes information and consultation on future organisational change within the company and aims to develop and adapt employees' skills in advance of such change.

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International: Suez signs three transnational agreements

Suez, the France-based utilities multinational, has negotiated three transnational agreements with its European Works Council. Agreements on a supplementary profit-sharing scheme and on equality and diversity cover all Suez operations worldwide, and an accord on forward-looking management of employment and skills covers European operations only. Suez is at the forefront of developing new forms of cross-border bargaining.

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RELATED ARTICLES ON XPERTHR

EU: Commission wants action on work–life balance

EU: Social partners agree joint text on gender equality

France: Employment and skills agreement at PSA Peugeot Citroën

International: EWCs taking on bargaining role?

International: Europe-wide restructuring agreement signed at RWE Energy

International: Global agreements – state of play

International: Areva European equality agreement

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  MORE FROM IRS...

Also in European Employment Review

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IRS conference: Equality and Diversity

This one-day conference, to be held on 17 October 2007, will look at how organisations can manage diversity to enhance corporate reputation, support culture change and boost competitiveness. It will feature three case studies: Harlow District Council, KPMG and The Co-operative Group. Find out more...

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