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European Employment Review
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  THE EDITOR'S MESSAGE Issue 405  
  SECTORAL BARGAINING UNDER PRESSURE

A key feature of industrial relations in many western European countries is the primary role of industry-wide collective agreements in setting pay and conditions. However, there are signs that sectoral bargaining may be fragmenting or decentralising in a number of major economies.

In this issue of European Employment Review, we look at recent developments in Germany and Italy.

German bargaining has traditionally been based on “one plant, one trade union”, with a single industry-level agreement for each sector. However, this model is under increasing pressure, notably from the growth in sectional and occupational unions - eg among doctors, train drivers and aviation staff. In some recent cases these groups, unhappy with moderate industry-wide pay deals, have sought separate agreements. Commentators are asking if the German system of collective bargaining and representation is starting to fragment.

In Italy, the social partners in the chemicals sector have agreed to allow company-level deviations from the terms of the industry-wide collective agreement. Management and local unions in companies facing financial difficulties may reach agreements that temporarily opt out of the rules set by the national agreement. The deal has sparked controversy in the trade union movement, with some fearing that the “derogation” scheme could spread to other industries and undermine the primacy of sectoral agreements.

XpertHR Mark Carley,
Editor,
European Employment Review

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  NEWS

European Court of Justice: Five member states fail to implement consultation Directive

In a series of rulings issued between March and September 2007, the European Court of Justice found that Belgium, Greece, Italy, Luxembourg and Spain had failed to implement the 2002 EU Directive on the information and consultation of workers.

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International: ArcelorMittal and unions agree global health and safety programme

In September 2007, ArcelorMittal, the world's largest steel producer, agreed an innovative global approach to improving health and safety with trade unions at a conference organised by the International Metalworkers' Federation.

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France: Government sets out reform agenda

Following the summer break, France’s centre-right government has outlined its plans for major employment and social reforms over the remainder of 2007 and 2008. Increasing employment, extending working time, promoting “flexicurity” and making it easier to terminate employment relationships are among the main objectives.

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Ireland: Four out of 10 multinationals do not recognise unions

A recent survey finds that around 60% of multinational companies operating in Ireland recognise trade unions in at least some of their sites. However, the figure is only 40% among US-owned companies, which form the single largest group of multinationals in Ireland. When multinationals that recognise unions at existing Irish operations open new sites, many of these sites do not recognise a union.

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Poland: Government increases minimum wage by 20%

In September 2007, the government announced that the statutory national minimum wage will be increased by 20.3% from January 2008 - the highest annual increase since the minimum wage was introduced.

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Spain: One employee in five says they have been bullied at work

Recently published research finds that 19% of employees report having suffered psychological harassment, or bullying, at work. Further, 8% of women and 3% of men state that they have been the victims of workplace sexual harassment.

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RELATED ARTICLES ON XPERTHR

EU: Final text of information and consultation Directive

European Works Councils: EWC agreed for ArcelorMittal

International: Two new global accords on CSR and labour standards

France: Overtime pay exempted from tax

Poland: Government to set 2007 minimum wage

International: European minimum wage survey

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  FEATURES

Germany: Bargaining system may be fragmenting

In recent years, the emergence of occupational and sectional trade unions has started to challenge Germany's traditional bargaining model of a single union in each workplace and a single collective agreement for each industry. We review the latest developments and ask if a serious disintegration of collective representation may be ahead.

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Ireland: Workplace biometrics cause controversy

In recent months, Ireland’s data protection commissioner has been expressing increasing concern - shared by some trade unions - about the spread of workplace biometric systems that use data such as fingerprints and handprints to monitor employees’ attendance.

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Italy: Chemicals deal sparks row over decentralisation of bargaining

Trade unions and employers’ organisations in the chemicals sector recently concluded a ground-breaking accord that allows, under certain conditions, company-level deviations from the terms of the industry-wide collective agreement. The deal, welcomed by employers, has caused a major controversy within the trade union movement, with some leading officials fearing that Italy’s industry-based collective bargaining system could be undermined.

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RELATED ARTICLES ON XPERTHR

Germany: Bargaining study highlights pay settlement upturn

Italy: Ground-breaking agreement signed in chemicals

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Also in European Employment Review

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