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European Employment Review
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  THE EDITOR'S MESSAGE Issue 430  
  NEW GERMAN GOVERNMENT’S EMPLOYMENT AGENDA
NEIL RANKIN

Germany has a new conservative-liberal coalition Government, following the general election in September, and we examine its plans in the employment field.

High on the new administration’s agenda will be the issue of minimum wage setting, which has proved contentious in recent years. By 2011, the Government will conduct a review of the current complex system for setting binding minimum rates in specific sectors. The arrangements will be retained or abolished, in the light of evidence on their impact on job creation, the protection of employees and competitiveness. At the same time, there are plans for a statutory ban on pay rates that are less than two-thirds of the usual wage, as set by collective agreement or custom and practice, in any given sector.

The conservative-liberal coalition also intends to:

  • strengthen legal protection of employee privacy;
  • relax the rules on re-employing workers on fixed-term contracts;
  • increase the scope for employee financial participation;
  • raise the labour force participation rate of women and of older workers;
  • encourage equal pay audits and higher numbers of women in senior company positions; and
  • review the financially troubled system of employment-based health insurance.

Overall, the new Government’s employment agenda is not radical. The Chancellor, Angela Merkel, has resisted pressure to weaken the enhanced dismissal protection for staff in companies with more than 10 employees, and there will be no changes to Germany’s distinctive system of employee representation on company boards.

XpertHR Mark Carley,
Editor,
European Employment Review

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  NEWS

EU: Czech Republic gains rights Charter opt-out

At a European Council summit on 29 and 30 October 2009, the Czech Republic was given an opt-out from the EU Charter of Fundamental Rights, clearing one of the last obstacles to the entry into force of the Lisbon Treaty on 1 December 2009.

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International: Danone EWC becomes global body

In October 2009, Danone, the France-based food multinational, extended its European Works Council (EWC) to include representatives of its employees around the world.

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France: Training law adopted

The French Parliament adopted a new law on vocational training on 14 October 2009, aimed at modernising the system and meeting changing labour market needs.

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Ireland: Subsidy scheme protects vulnerable jobs

The Irish Government has set up a scheme to subsidise jobs in export-oriented firms that are in difficulty because of the economic crisis, and by September 2009, 561 companies had applied for the assistance - worth up to €200 per employee per week.

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Italy: Unions divided over metalworking agreement

In October 2009, two of the main trade unions in the Italian metalworking industry signed a new sectoral collective agreement, providing for pay increases of 5.9% over three years. However, Fiom-Cgil, the largest metalworkers’ union, has rejected the deal and called for protests.

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Spain: Unions offer long-term pay framework

Spanish trade unions have proposed a national bargaining framework to employers for 2010-12, providing for a degree of wage moderation, on the condition that current problems affecting bargaining are resolved. The two sides set up a joint group to examine these problems in October 2009.

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Ireland: Government proposes employment subsidy scheme

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Italy: Union calls strike as metalworking talks reach deadlock

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  FEATURES

International: Bargaining on CSR and workers’ rights at Inditex

Inditex, a major Spain-based fashion multinational, signed a worldwide agreement on workers’ rights in its commercial and distribution operations in October 2009. In 2007, it had signed a similar accord for its manufacturing operations, including external suppliers, and the new agreement underlines the company's commitment to engaging trade unions in its global corporate social responsibility approach.

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France: President announces youth employment measures

On 29 September 2009, the French President, Nicolas Sarkozy, announced a plan aimed at cutting the very high unemployment rate among young people, and giving them more independence and responsibility. Measures include a minimum income for young workers, a right to training or a job for all those aged between 16 and 18, and stricter rules on work placements.

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Germany: New Government's employment agenda examined

Following the general election in September 2009, Germany has a new conservative-liberal coalition Government. The main employment-related issues on the Government's agenda include minimum wages, fixed-term work and increased labour force participation.

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RELATED ARTICLES ON XPERTHR

International: Inditex agreement on supply chain labour standards

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France: Government proposes guaranteed minimum income

International: PSA Peugeot Citroën CSR/global council agreement

Germany: National minimum wage?

Germany: Minimum wage laws passed

Germany: Employee surveillance scandals hit major companies

Germany: Health reform law passes all stages

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  MORE FROM IRS...

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