The economic crisis is starting to have a strong impact on wage bargaining across Europe, pushing down settlements and in some cases driving a wedge between employers and unions.

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European Employment Review
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  THE EDITOR'S MESSAGE Issue 423  
  DOWNTURN HITS PAY BARGAINING

The economic crisis is starting to have a strong impact on wage bargaining across Europe, pushing down settlements and in some cases driving a wedge between employers and unions.

In most countries, the deteriorating economic situation had very little effect on overall pay awards in 2008 but the downturn has now caught up with negotiators. With the EU's economy shrinking by 1.5% in the last quarter of 2008 and the unemployment rate nearing 8% in spring 2009, many employers are demanding pay freezes or only very limited increases. In some cases unions have concurred, but conflicts have arisen in others.

Examples include the following:

XpertHR Mark Carley,
Editor,
European Employment Review

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  NEWS

EU: Chemicals social partners agree on short-time work and lay-offs

EU-level trade union and employers' representatives in the chemicals industry agreed a joint declaration in March 2009 on short-time work and lay-offs, calling for prior workforce consultation, training for the workers affected and public support for companies.

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Germany: Economic crisis hits collective bargaining

The economic downturn is beginning to have an effect on collective bargaining, with some employers in metalworking seeking to defer agreed pay increases. A new collective agreement in the textiles industry allows employers to reduce or cancel wage rises if they face difficulties.

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Ireland: Unions agree to national recovery talks

The Irish Congress of Trade Unions accepted an invitation from the Government on 25 March 2009 to engage in tripartite talks over measures to tackle the economic crisis, and suspended planned nationwide strike action pending the outcome of the negotiations.

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Italy: Government proposes limits on transport strikes

The Italian Government proposed new legislation in February 2009, aimed at cutting the high number of strikes in the transport sector, notably by only allowing larger trade unions to call industrial action.

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Poland: Social partners agree short-time work and hours flexibility

Trade unions and employers' organisations reached agreement in March 2009 on measures aimed at helping companies weather the economic crisis without making redundancies.

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Spain: Government takes emergency action on employment

The Spanish Government approved a set of urgent measures in March 2009, aimed at saving and creating jobs and helping unemployed people, after trade unions and employers' organisations failed to reach agreement on this issue, or on pay increases for 2009.

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RELATED ARTICLES ON XPERTHR

Germany: Metalworking reaches pay deal in face of economic gloom

Germany: Economic stimulus package gives priority to jobs

Ireland: Unions hold strike ballots over compliance with pay deal

Ireland: National pay agreement ratified

Spain: No central pay agreement yet signed for 2009

Spain: Employers and unions sign bargaining framework for 2008

Spain: Government introduces changes to rules on redundancy plans

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  FEATURES

EU: Social partners agree 2009-10 work programme

EU-level trade union and employers' organisations agreed a two-year work programme in March 2009, providing for negotiations and joint work on a range of issues, such as inclusive labour markets, employment, migration and climate change.

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France: Short-time work scheme becomes key crisis-response measure

The French Government took a series of initiatives in the early months of 2009 to strengthen the state scheme that subsidises short-time working in companies, making short-time work a central plank of its strategy to deal with the employment fall-out from the current economic recession.

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Germany: Rules introduced to govern senior managers' pay

The German Government announced new legislation in March 2009 to link the remuneration of senior managers more closely to long-term business development. This includes creating wider scope for reductions where a company performs badly, and greater transparency in management pay setting.

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RELATED ARTICLES ON XPERTHR

EU social partners: New three-year work programme

EU: Social partners set out their three-year work programme

France: Short-time benefit scheme revised

France: Short-time working benefit scheme to be revised

Germany: Government action likely to limit top pay

Germany: New legislation on top managers' pay

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  MORE FROM IRS...

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