This newsletter in English                   16th August 2007
Dieser Newsletter auf Deutsch

Welcome to issue no. 2/2007 of EWC News.

 

The training and consultancy network "euro-workscouncil.net"

is there to inform you about the activities of European Works Councils and related subjects.

 

EWC News appears four times a year.
You can download this newsletter as a pdf file
and print it out.

 

You can find past issues in the newsletter archives.

 

  1. The restructuring wave rolls - 
      what does the legislator do?
 

European Parliament demands revision of the EWC Directive

 

The European Parliament in Strasbourg demanded in a resolution on May 10th, 2007 to update the legal provisions for information and consultation and
particularly the EWC Directive. The EU commission shall present a concrete time schedule for this. Already on April 25th, 2007 a discussion took place whereby several members of parliament used current examples (Airbus, Alcatel-Lucent, Delphi Systems, Volkswagen) to highlight the need for action of the legislator. The Parliament thus followed the European Economic and Social Committee, which after a crucial vote in September 2006 had asked for urgent action (see report in the EWC News 3/2006). Since spring 2004 the revision procedure has run without result.

Shortly before the debate in the European Parliament and for the day exactly three years after the beginning of the revision procedure the European Trade Union Confederation (ETUC) convened about 200 European works council members for a meeting in Brussels on April 20th, 2007. In the presence of Commissioner Špidla and the European employers' confederation Business Europe they stressed the demand for a revision of the EWC Directive. At this meeting a documentation on action forms of European works councils in the course of restructuring was presented, which covers General Motors, InBev, RWE Energy and Dim Branded Apparel.

The ETUC congress, which met in Seville (Spain) from May 21st to 24th, 2007 also asked for strengthening the European works councils. It named the key activities in a manifesto:

"fight delocalisation, stimulate negotiations on restructuring and provide a stronger framework of information, consultation and involvement, including involving independent experts on restructuring."

The new person in charge of EWCs at the ETUC

 

At the ETUC congress the head of the ETUC was regularly newly-elected. Since then the Deputy General Secretary Reiner Hoffmann (photo) from Germany is responsible for the topic employee participation, which also includes the European works councils. Our newsletter editor Bernhard Stelzl interviewed him about his priorities and current developments.

More personnel news from Brussels

The education department of the European trade union institute (ETUI-REHS) in Brussels has got personnel reinforcements on July 1st, 2007. A long-standing member and chairman of the European works council of the Dutch Fortis bank, Bruno Demaître, will organize EWC seminars.


 

Survey of IG Metall: The practice is further than the legislator

 

The lived practice is of a decisive importance against the background of a blocked legislation procedure. Besides the Europe-wide survey of Prof. Waddington from the year 2005 (see report in the EWC News 4/2005) IG Metall has also carried out two surveys in Germany. Results of the first survey were already in November 2005 presented at a conference in Hanover (see report in the EWC New 4/2005). The key finding was that out of 85 interviewed EWC bodies 70 were confronted with cross border restructering.

 

At the second survey of IG Metall in 2006 28 European works councils were examined more exactly, which conducted a special meeting on the occasion of restructering – either with the complete EWC body or with the Select Committe. In the opinion of Dr Aline Hoffmann, leader of the EWC team in the national office of IG Metall (see interview in the EWC New 3/2005), the lived practice overtakes the regulations laid down in the EWC agreements. As she explained to EWC News, “the initiative of the EWC members is rather decisive”. In most of the cases a special session was possible at short notice and opened new chances to get locally active. However some weak points became apparent. In some cases there were no internal preliminary meetings of the employees' side, not all locations concerned were included, or there were no interpreters.

 

European works councils don't wait for the legislator

 

To improve their work opportunities, European works committees negotiate often a new EWC agreement. Some of them were listed in the magazine “Arbeitsrecht im Betrieb” in January 2007.

  2. Participation rights after the merger
 
 

New EWC agreement with extended rights

 

The buying up of British BOC Group by the conglomerate Linde (see report in the EWC News 1/2006) did not only lead to an extensive reorganisation of products and locations but also in the composition of the employee committees. While the head office of the gasses and engineering enterprise was transferred from Wiesbaden to Munich and the fork truck division was sold, numerous members left the European works council.

 

The new German and European works council chairman Gernot Hahl (photo) did his best to enlarge the Linde EWC immediately with representatives of BOC and to use the merger for a renegotiation of the EWC agreement. The text signed on June 27th, 2007 provides for three annual meetings. Third-party funded projects, which serve the strengthening of the international cooperation of the workers' representatives are sponsored by the enterprise in future. Our newsletter editor Kathleen Kollewe talked about the course of the negotiations and further advantages of the new agreement with the EWC chairman.

The 28 members of the new EWC will come together for the first meeting in November 2007. The UK gets seven seats, Germany six, the Netherlands and France two each and all other one seat each (Finland, Sweden, Norway, Ireland, Spain, Italy, Austria, Poland, Czechia, Hungary and Romania). The EWC is chaired by a five-headed select committee.

 

Personnel support for the EWC

 

Jacques Bister has worked as a scientific expert for the German group works council and the European works council since April 1st, 2007. Before he was a trade union secretary at the industrial union of mining, chemistry, energy (IG BCE) and has long-standing experiences in the cross border cooperation of workers' representatives. Bister is co-editor of a dictionary of the international trade union work (see report in the EWC New 1/2007).

 


 

After the world's biggest steel merger: New EWC agreement complete

 

The signing of the EWC agreement for ArcelorMittal took place in Luxembourg in the presence of Lakshmi Mittal (photo) on July 9th, 2007. The Indian multi-millionaire will take on the chairmanship of the EWC according to French habits although particularly IG Metall would have preferred the German model with a workers' representative as a chairman.

 

The negotiations about the joining of the two European works councils of Arcelor and Mittal Steel had been concluded in Spain on April 18th, 2007 (we reported repeatedly, last in the EWC News 1/2007). 54 delegates belong to the new EWC from the following countries: France and Poland (nine mandates each), Belgium and Romania (eight each), Germany, Spain and Czechia (five each), Luxembourg (three) as well as Italy (two mandates). The workers' representatives choose a three-headed committee ("office") and a select committee of 25 members. 

 

The new agreement adopts the essential features of the previous Arcelor agreement and meets the demands of the trade unions (see report in the EWC News 1/2006). Besides an employee participation in the administrative board the agreement provides participation rights for the EWC like in the SE Directive which goes beyond the regulations of the EWC Directive at some points. ArcelorMittal thinks about a transformation to a European company.


 

Merger leads to the loss of supervisory board seats

 

On May 4th, 2007 the European Commission had allowed the take-over of the British tour operator MyTravel by the German tourism group Thomas Cook. The new society will have its seat in London and will be based on British law. The functions of the executive board and the supervisory board are then united in a management board which does not know any workers' directors.

 

The workers' directors in the previous German supervisory board of Thomas Cook lose their mandates through this. All the more important will be the role of the European works council in future. Negotiations of its working conditions started at the beginning of August 2007. At Thomas Cook an EWC was already installed in 2003, at My Travel in 2006. Recently the recognition was renewed for the more than 1.000 employees at Thomas Cook in the United Kingdom and an Employee Consultation Forum (ECF) was founded, which is comparable with a group works council. The following texts are only available in German language:


 

Restructuring without works council?

 

In the course of the merger of the network divisions of Siemens and Nokia 9,000 jobs shall be cut. The company Nokia Siemens Network (NSN) set up on April 1st, 2007 does not have any EWC which could be consulted over the restructuring plan yet (see report in the EWC News 1/2007).

 

After protests of the European Metalworkers’ Federation (EMF) the central management of the enterprise explained for the first time its workers' representatives the plans on May 25th, 2007 in Brussels. Though it is not clear yet to which degree which countries and locations will be affected by the reduction, first signs speak of figures of 1,700 in Finland and 2,900 in Germany primarily in the research and development area. A further downsizing is feared in Belgium, Spain and the Netherlands.


On June 12th, 2007 the EMF organized a Europe-wide day of action. However, the NSN staff protested about the restructuring plan in Düsseldorf and Berlin, Espoo in Finland, Cassina and Marcianise in Italy, also in Spain, Belgium, France, Austria and the Netherlands. A few days later the central management of the enterprise agreed to enter into negotiations on the establishment of an EWC.

  3. Reports from the courtroom
     

 

Federal Labour Court permits union agreements on plant level

 

On April 24th, 2007 the Federal Labour Court (BAG) in Erfurt clarified: Collective agreements negociated by unions have priority before works council agreements. The core of the decision was dealing with the issue whether the peace clause as laid down in the Works Constitution Act (a German feature to be explained abroad only with difficulty) basically applies during restructering or whether the freedom of association including the right to strike applies. This BAG decision brings the collective labour law in Germany closer to the European normality (see report in the EWC New 1/2006). The following texts are only available in German language:


 

Information rights of the EWC: Judges draw up criterias

 

A court in Paris defined on April 27th, 2007, which information the employer must disclose to the European works council in case of Europe-wide restructuring. The European Committee for Information and Dialogue (ECID) of the telecommunications supplier Alcatel-Lucent where after the merger several thousand jobs are to be eliminated had gone to court. The central management of the enterprise had not justified this reduction and pointed out to "synergy effects" only generally (see report in the EWC New 1/2007).

 

The employer argued in front of court that the ECID is merely a committee of the social dialog and not a full European works council. As such it would not be entitled to the rights of information and consultation in accordance with the EWC Directive because the committee had been founded 1996 on a "voluntary" basis before the national EWC laws came into force. Until present such agreements enjoy the right of continuance according to article 13 of the EWC Directive. The court followed this position, the workers' representatives also cannot refer to the EU Directive on information and consultation from the year 2002.

 

"The management of Alcatel-Lucent was sentenced!"

 

The court nevertheless came to the opinion that the central management has not complied with its duties of information and consultation sufficiently. The verdict was immediately published by the French trade unions in a common handbill (click on the picture on the right for extending). The employer must present the following:

  • a precise, figured report on the reasons for closure, shift and merger of business activities

  • a precise, figured exposition of the calculation method and the elements which were used for the calculation of the alleged staff overhang

  • the number of planned job cuts, and to be more precise for every division and for every country, separated into employee categories

  • exact and figured grounds for this distribution and the time schedule for the planned downsizing.

This information must be "complete and precise enough, to explain the development of the employment on an European level to the EWC and to allow for an exchange of views and dialog with the management in view of full knowledge of the facts". At the earliest 15 days after disclosure of all information mentioned above a special session of the EWC can take place to decide on a statement. According to this verdict the central management of Alcatel-Lucent is not obliged, however, to present a redundancy scheme to the EWC, because firstly this is not a component of the EWC agreement and secondly, results from the participation rights of the works councils in single countries. The EWC does not enjoy any priority compared to the national works councils. In the opinion of the court participation and consultation rights in countries concerned may not be put off on the grounds, the EWC must be informed completely first.

Only restricted expert support

 

After it had come to protests again at the general meeting of the enterprise in Paris on June 1st, 2007, the central management finally presented the information demanded by the court in the middle of June 2007. The ECID does not have any claim to an expert of one's own, however. It can only count on experts who advise the French group works council. A sound evaluation of the presented economic data is only restrictedly possible with that. The ECID handed in a statement about the restructurings on July 4th, 2007.

Newsletter of the EMF explains judgements

 

The European Metalworkers' Federation (EMF) explains some judgements in EWC matters in the "newsletter on company policy".


 

A Finnish enterprise must bear redundancy scheme costs in France

 

The highest French court of justice ("Cour de cassation") condemned the Finnish electronic enterprise Aspocomp to bear redundancy scheme costs in the amount of 11 m. € for its former factory Évreux in the Normandy on June 19th, 2007. The dismissals had been justified with economical reasons in 2002, been carried out in opinion of the court, however, improperly. The central management in Helsinki must pay now for costs which would have had to be borne by the meanwhile insolvent French subsidiary.

 

The verdict is based on EU law and was only possible because the enterprise has its headquarters in the European single market. In comparable cases of insolvency, e.g. the glass plant of LG.Philips Displays in Aachen (see report in the EWC New 1/2006) or the German locations of the mobile telephone manufacturer BenQ, the top managements of a group could abscond from their responsibility in Asia. This shows which significance the EU legislation has as an example to socialy arrange globalisation.

 


 

A British verdict strengthens rights of information

 

For the first time a court in the UK adjudicated on the basis of the EU Directive on information and consultation on July 24th, 2007. The Employment appeal tribunal in London decided on application of the trade union Amicus against the newspaper publishing house Macmillan, a subsidiary of the German Holtzbrinck group. The British management has refused insistently to recognize an employee representation and to disclose economic information for years (see report in the EWC New 2/2006). Since it came neither at the completion of a company agreement nor to the compliance with the legal minimum regulations then being valid, Amicus started legal steps in March 2006.

Macmillan ignored, however, the ruling of the Central Arbitration Committee, an independent arbitration board which in actuality proceeds as the first instance concerning industrial law in such matters. Therefore the London court condemned the publishing house to the payment of a punishment of £ 55,000 (€ 81,400), maximum penalty would have been £ 75,000. The judges wanted to set an example and to deter other enterprises from seeing violations against EU employee rights as peccadillos.

  4. Recently formed EWCs
      
 

TV chain of Berlusconi founds EWC

 

On December 14th, 2006, an EWC agreement was signed according to Italian law in the Italian media group of Mediaset in which the finance holding Fininvest of the former prime minister Berlusconi is involved substantially. Six members from Italy and two from Spain which meet once a year belong to the EWC. One delegate each per country coordinates the cooperation between the meetings, they form a kind of "mini-committee". Germany is not affected by this agreement because the take-over of the TV station chain ProSiebenSat.1 Media by Mediaset had failed in November 2006. In May 2007 Mediaset bought a share in the Dutch TV producer Endemol ("Big Brother"), what could possibly lead to an expansion of the scope of the EWC agreement. Endemol is represented in five European countries, among them in Germany.

 


 

Negotiations completed successfully in the Bauer publishing house

 

On the same day as in the case of Mediaset an EWC agreement was also signed for the Bauer publishing house group in Hamburg. The negotiations had been dragged and were indicated by a heavy blockade attitude of the employer for more than two years. So e.g. the chairwoman of the special negotiation body (SNB) received a official reprimand because of participating in a seminar for the EWC formation (see report in the EWC New 1/2005). The agreement became effective on February 1st, 2007 and foresees an eight-headed EWC with a three-headed steering committee. Besides Germany (three delegates) France, Spain, UK, Poland and Czechia are represented with one delegate each. The constituting meeting is planned for December 2007. The following documents are only available in German language:


 

After the sale: Turbine manufacturer founds EWC

 

On pressure of the European Commission the French electric facilities manufacturer Alstom had to hive off some lines of business (see report in the EWC News 2/2004). So was the production of power station turbines with 3,000 employees in Germany, France and Great Britain (formerly ALSTOM Power Conversion, now Converteam) sold to a British finance investor. Since January 24th, 2007, there has been an EWC agreement according to French law which provides two annual meetings for the nine EWC members in the enterprise with its seat in Massy near Paris. These choose a steering committee of three, which can initiate working groups within the EWC, comparable to the regulations of Stadtwerke Leipzig (see report in the EWC New 2/2005) and to the Italian bank UniCredit (see report in the EWC New 1/2007).

 

A training took place at Paris airport for the members and substitute members on May 22nd and 23rd, 2007 some weeks before the constituting meeting. On suggestion of the French trade union CFDT and the European Metalworkers' Federation (EMF) Dr Werner Altmeyer and Dr Heiner Köhnen of the training and consultancy network "euro-workscouncil.net" arranged an intercultural and communicative base for the work in the future EWC.


 

Pragmatic text in special chemistry

 

An agreement on the formation of an European works council for the 1,900 employees of the U.S. enterprise Cytec in Europe was signed on June 19th, 2007 in Graz. The wording is – typically of many Anglo-Saxon texts – pragmatically, the management showed itself definitely obliging at some points. So two meetings per annum take place, in unusual circumstances an additional special session is called on application within two weeks. Not only the twelve EWC members but also further workers' representatives from locations concerned take part in it.

 

Three delegates are sent by Belgium and Austria, two from Germany and one mandate each goes to Spain, Italy, Netherlands and Norway. France shall join at the end of 2007, the staff is increased there at the moment. Between the meetings the business is run by a three-headed steering committee whose members come from different countries. Furthermore the agreement provides training measures, expert support and a method to solve disagreements outside the court. It is subject to Belgian law.


 

IT service providers have difficulties with European works councils

 

Speed is regarded as an entrepreneurial necessity exspecially in the software industry. If the central management of a group negotiates, however, about the inclusion of its employees in cross-border restructurings, the processes turn out extremely tough. Just before the end of the legal negotiation deadline of three years an EWC agreement was signed for the French IT service provider Atos Origin in Brussels on June 28th, 2007. Two annual meetings as well as expert support are scheduled. Based on the French modell the EWC is a mixed committee to which employers’ and workers' representatives belong.

The three-year period was not enough in the U.S. software enterprise Oracle however to reach an EWC agreement. The negotiations failed between the central management and the special negotiation body (SNB) in May 2007. Thus Oracle is besides the engineering group Körber in Hamburg one of the few cases where an EWC is founded by virtue of law (see report in the EWC New 4/2005).

 


 

An Italian cement manufacturer founds EWC

 

On July 4th, 2007 an EWC agreement was signed in Rome for one of the ten greatest Italian industrial enterprises. Italcementi is the fifth biggest cement manufacturer of the world with market leadership.in the Mediterranean region.

 

The 26 EWC members meet once a year, when required a second plenary session can take place. Eleven mandates are allotted to Italy, eight on France, two each on Belgium, Spain and Bulgaria and one on Greece. Aditionally one representative each of the three Italian trade union federations CGIL, CISL and UIL and the European Federation of Building and Woodworkers (EFBWW) takes part in the meetings. The EWC is chaired by an office composed of four members (Belgium, Italy, France, Spain), which meet twice every year. The chairmanship lies with an Italian trade unionist who is nominated jointly by the three confederations from Italy. When required an expert can be consulted, this one however only takes part in the preliminary meetings of the employees’ side but not in the meetings with the central management.

 

  5. Company agreements on social standards
 
 

Three agreements alike in a French utility group

 

Since August 2006 there have been intensive negotiations at SUEZ between the central management of a group and the EWC about the international human resource policy (see report in the EWC News 3/2006). Although the parties have not reached an agreement in all points yet, three international framework agreements were signed on July 3rd, 2007 about a financial participation, about a foresighted staff development planning and for the promotion of equal treatment and diversity. For the first time all group employees worldwide will get a financial participation. 


 

European agreement on anticipation of change

 

On July 12th, 2007 the French group Schneider Electric signed an agreement on the foresighted and socially compatible design of the strategic company policy with the European Metalworkers' Federation (EMF). The employer had seized the initiative in December 2006. The agreement is valid in the same countries as the EWC agreement and contains rules for the competence development of the employees, to the early inclusion of the European works council prior to cross-border restructurings and to the procedure in case of job reduction.


 

Worldwide framework agreements on core labour standards

 

Within the last months a number of framework agreements were signed again on the application of social principles and core labour standards in worldwide active enterprises. Contracting parties on employees' side are as a rule international federations of trade unions, in some cases also the EWC.

On April 13th, 2007, a worldwide framework agreement was signed for the Dutch group of Brunel which has particularly specialized in project management and staff recruitment for the oil and gas industry. The adherence of fundamental social standards, a claim to a company based further education and a punctual consultation of the employee representatives in case of restructuring is assured to the 5,300 employees.

On May 4th, 2007 a further worldwide framework agreement was signed on the edge of the EWC meeting in Barcelona for the 35,000 employees of the Canadian printery group Quebecor on the compliance with international core labour standards. In November 2006 it almost would have come to a legal discussion because the EWC was ignored prior to several transnational restructurings (see report in the EWC New 4/2006).

The German WAZ group is taking on the role of pioneering. Within the last few years it has purchased numerous enterprises in Eastern Europe and on the Balkans. The framework agreement signed on July 4th, 2007 in Essen is worldwide the first one in the media sector. In this agreement the enterprise commits itself to respect fundamental social rights at work and to establish a forum where once a year representatives of all countries meet. The agreement was presented together with EU Commisioner Viviane Reding in Brussels on July 9th, 2007.


Rheinmetall boycotts monitoring

The German car supplier and armour group Rheinmetall had concluded an international framework agreement in 2003 and obliges itself to observe worldwide core labour standards and to provide equal opportunities and health protection. The International Metalworkers' Federation (IMF) organized a meeting of European and South American workers' representatives in Neckarsulm on June 12th and 13th, 2007 to discuss the compliance with the agreement. However, this meeting was not supported by the employer, which the chairman of IG Metall, Jürgen Peters, described as a violation of democratic rules of the game and even as a breach of the agreement. It was only after the press had reported that the central management of a group offered a delegation of the European works council to visit Brazilian factories. The EWC chairman Peter Winter wants to accept the offer, however, doesn't consider it a substitute for worldwide monitoring meetings.

  6. Negotiated participation in the SE
 
 

Software enterprise without employee participation

On December 7th, 2006 the company Mensch und Maschine Software AG with seat in Weßling near Munich has changed to a European company. The 300 employees in Germany, Austria, Switzerland, France, Italy, UK, Belgium, Sweden and Poland know neither works councils nor an employee participation in the supervisory board. The situation reminds a little of the substantially larger rival company SAP before the formation of the works council was forced there (see report in the EWC New 1/2006).

In the course of the transformation into a SE the statutory consultation of the staff took place, but however the staff did not show interest in a participation. The separation into executive board and supervisory board was lifted in the new legal structure of the company. There is now only one management board modeled on British example. The company founder has already announced that he would transfer the seat of the corporation abroad, if he should be forced to employee participation in Germany. This also reminds of statements of the SAP management before the formation of the works council.


 

Reinsurer as a SE pioneer in France

On May 14th, 2007, the three special negotiation bodies at Scor have come to an agreement to form one common SE works council for the three European companies. This is not only the first case of a SE agreement in France but also a completely new legal construction. There are two societies below the Scor holding: one for life assurances and one for the other insurance business. The employee participation is perceived by a common SE works council ("Comité Commun des Sociétés Européennes") consisting of 19 members which quarterly meets. The employees' side can in addition send two representatives to the administrative board of the holding.


Fresenius concludes an exemplary participation agreement

Shortly before expiry of the legally predefined period of six months the negotiations about a participation agreement were completed (see report on the beginning of the negotiations in the EWC News 1/2007) in the medical group Fresenius on July 13th, 2007. The supervisory board which is equally represented will be comprised of 12 people (the trade unions had voiced in favor of 20 members) of which four workers' representatives will be from Germany and one each from Austria and Italy. Among these are four works council members and two full-time trade union officers (one from the German service sector union ver.di and one from the chemical sector union of the Italian confederation CISL).

The SE works council consists of 29 members among them seven from Germany and one each for the 22 other countries. From its members it chooses a chairman, two representatives and another four members who form the select committee. While the SE works council meets only once a year and special meetings are only possible with restrictions the select committee has the right to three meetings per annum - one can serve to visit a foreign plant location - and is informed in extraordinary circumstances on time. Workers' representatives from countries or locations concerned by concrete measures then can be invited to such meetings in addition.

The new SE works council has the power of initiative in the range of topics: equal opportunities, health and safety at work, data protection as well as in training and further education policy. The employer bears seminar costs, pays up to two experts and permits the participation of two representatives of European trade union federations. Possible disputes can be solved fast in an arbitration board.


Formation of Porsche Automobil Holding SE

The supervisory board of a new Porsche Automobil Holding SE constituted itself in Stuttgart on July 24th and 25th, 2007. A participation agreement had been negotiated between the central management and the special negotiation body (SNB) before. The SNB had constituted itself on May 10th, 2007, 17 members belonged to it from Germany, France, Spain, UK, Ireland, Italy, Austria and Czechia as well as representatives of IG Metall. In the new agreement the competences and the electoral procedure of the future SE works council and the representation of the employees in the SE supervisory board are arranged.

While in a German public limited company the number of the mandates would rise with an increasing number of employees and thus more and more workers' directors would move to the control committee, this remains unchanged with twelve members in the SE supervisory board. This question plays a central role in many SE foundations of German enterprises while the equal representation in the supervisory board is accepted. The German group works council chairman Uwe Hück became deputy chairman of the SE supervisory board.

The hitherto existing Porsche AG (as a 100% daughter) and the 31% share in Volkswagen are run under the roof of the new holding. However, workers' directors of Volkswagen only then get a claim on seats in the new supervisory board, if Porsche increases the VW participation by more than 50%. As a third column a new lorry group could be integrated later after the planned merger of MAN and Scania (see report in the EWC New 3/2006). The following texts are only available in German:


SE negotiations at BASF started

 

After the decision of the general meeting on April 26th, 2007 to change BASF into a SE the special negotiation body (SNB) constituted itself in Heidelberg on June 12th, 2007. It will conclude a SE participation agreement with the central management not later than November 2007. The 29 workers' representatives from 23 countries elected Robert Oswald, the chairman of the German group works council, as chairman of the SNB and engaged a negotiation commission of twelve representatives from Belgium, Germany, France, UK, Italy, Poland, and Spain as well as a representative of the executive employees to do the detail work.


Accompanying research for the formation of the Allianz SE

Since October 2006 the insurance group of Alliance operates under the name European company (see report in the EWC News 3/2006). The Allianz participation agreement was the first Europe-wide in such a large enterprise and could become an example for many others. For this reason the European federation of service trade unions (UNI) had engaged the IMU institute in Munich to do a scientific accompanying study of the course of the negotiations. Works councils and trade union representatives in several countries were questioned. The results were presented at a workshop in Brussels on May 8th and 9th, 2007. 

Further enterprises which have already transformed themselves into a European company (all documents are only in German):

  7. Case studies: Aluminium and household appliances industry
      
 

Gigantic merger wave at raw material enterprises

 

The high metal prices, a result of the increasing demand from China and the accelerating world economic situation light the take-over wave in the primary industry. Through the buying up of competitors, market shares can be increased faster and more economically than by building new factories. How do the works councils behave in such situations? Do they remain passive spectators or do they intrude on the event?

 

Alcoa and Alcan were world market leaders in the aluminium industry for years but since the merger of two Russian groups recently they are not any longer. Therefore the U.S. enterprise Alcoa tried in spring 2007 to take over the Canadian competitor Alcan hostilely and to reconquer the world's top position. When these take over plans were disclosed the EWC of Alcan voiced against the merger at its meeting in Paris on May 29th and 30th, 2007. Such mega-mergers are not only a danger for the staff of the taken enterprise but also for those of the buyer. The EWC fears that the European aluminium industry will lose more and more competence centres and research sites by doing so.

 

On June 1st, 2007, workers' representatives of Alcan and Alcoa met in Brussels on invitation of the European Metalworkers' Federation (EMF) to discuss the effects of such a merger on the jobs: the German EWC chairman of Alcoa, the French EWC secretary (spokesman of the employees' side) of Alcan as well as two trade union officers, which assist the EWCs on behalf of the EMF. After the first conversation in the little circle further EWC members of both groups came together in Brussels from seven countries on June 21st, 2007 and agreed on a common procedure. They demanded the strict observance of their participation rights, the inclusion in the process of EU merger control and the immediate convening of a common special meeting with central management of the two groups.

"White knight" prevents a hostile take-over

 

It actually came to an EWC special meeting in Zurich on July 25th, 2007 but only for the EWC of Alcan. The CEO had arrived from Canada personally to inform the workers' representatives in Europe about the merger with Rio Tinto. The British Australian raw material group based in London had stood in on July 12th, 2007 as a "white knight" to prevent the hostile take-over by Alcoa. The deal will have the same dimension as the take-over of Arcelor by Mittal Steel in June 2006.

 

The central management of Rio Tinto will explain to the EWC of Alcan its plans more exactly in the middle of September 2007. The sale of the packing division of Alcan, which makes up 23 per cent of the group’s turnover is particularly scheduled. The EWC demanded an economical expert opinion to be able to assess the effects on the jobs more exactly. For French shaped European works councils such comprehensive advisory services are at the agenda - differently than in British or German enterprises. Great anxiety triggered the merger in Switzerland (texts available only in German):

Alcan emerged from numerous take-overs, particularly from the Swiss Alusuisse-Lonza and the French Pechiney group and additionally disposes over important production centres in Germany and the UK. Already since 1996 there were European works councils in these enterprises. After conclusion of the mergers a new EWC agreement was concluded according to French law in March 2006 (see report in the EWC News 2/2006).

 

Rio Tinto does not have any EWC yet since large parts of the locations are outside Europe. In Australia the enterprise is confronted with heavy criticism of trade unions and environmental groups because of violations of employee rights and safety regulations. It remains to be seen how this anti trade union attitude will become apparent in the European locations of Alcan. The EWC of Alcan will well represent the European employees of Rio Tinto in future.

 

The hunter could now become the chased himself

 

The take-over of Alcan by Rio Tinto - Deutsche Bank functioned as an adviser in the background - will fundamentally change the enterprise landscape of the raw material industry. In stock exchange circles is speculated, the inferior bidder Alcoa could himself become an aim of a hostile take-over, possibly by ArcelorMittal (see report further above). Alcoa has an EWC according to Dutch law since 2001 and is strongly represented in Spain, Italy and Hungary.


 

Restructurings in the household appliances industry

 

From June 27th to 29th, 2007 representative of trade unions, enterprises and science from the new and old EU countries met in Arezzo (Italy) to discuss alternatives to the current restructurings in the household appliances industry (see report in the EWC News 4/2005). A survey done by the Istituto per il Lavoro in Bologna shows the dramatic extent of the shift in low wage countries and the loss of workplaces. The shutdown of the AEG plant at Nuremberg (see report in the EWC News 1/2006) had caused special attention in Germany. Measured in terms of the employee numbers this industry sector still takes second place in Italy, Spain and some Central European countries after the motor industry.

 

Originally the "white goods" was mainly produced in Germany, Sweden and Italy. But already in the middle of the eighties a shift took place to Southern Europe. While small equipment like iron, coffee machines or vacuum cleaner is almost only produced today in Southeast Asia, the production of the big equipment (washing machines and dishwashers, dryers, ovens) drifted towards Middle and Eastern Europe including Russia and Turkey where the market steadily grows and the wages are still low. How shall trade unions and European works councils behave at such restructurings?

 

At the conference different approaches were discussed using case studies and the challenges also judged for the new EU countries. Already some product lines shall be shifted from Eastern Europe to China. Which role did the European works councils of Electrolux, Whirlpool, BSH and Indesit play in the production shifts dated back? In all these cases a considerable lack of a cross-border coordination was noticed. How have employee representatives behaved locally? Also about this there were two case studies: the enterprises Arctic from Romania and De' Longhi from Italy. At the end of the meeting Prof. Bierbaum from the INFO-Institut in Saarbrücken introduced a suggestion for a better coordination of the EWC work in this sector. All presentations and documents of the meeting are available in the Internet on a special website.


 

Further industry-specific reports in earlier editions of EWC News (most in German):

 

  8. Turkey: a topic for the EWC?
 
 

On October 3rd, 2005 the negotiations on the accession started between Turkey and the EU. Already since 1963 the country is associated with the European economic community, the precursor of the EU, and joined in 1996 as the only not EU country the customs union. Since 2002 Turkey experiences a small economic miracle with growth rates of six per cent annual and record influxes to foreign investments. Till now, 1,500 German enterprises have established themselves, of this a third from the metal industry. The most important export industry is the textile and clothing industry, followed by motorcar suppliers and home appliances. A third of all TV sets sold in the EU are from Turkey. With 73 m. inhabitants it would be the second largest member country after Germany, its most important trading partner, when joining the EU.

From the 20 m. employees only about 14% are organized in a trade union (what corresponds to the standard of Spain), the majority in the confederation Türk-Is. The legislator has set the trade unions high hurdles: they can conduct wage negotiations only if they organize more than 50% of the employees of a company whereas every single membership must be verified notarially. The majority of the employees in Turkey therefore is not covered by collective agreements. The working week is generally 45 hours. There are not any works councils, however, the formation of a plant trade union representation is possible by recognition agreement like in the UK. Turkey ratified the social charter of the Council of Europe in September 2006, what is regarded as an important signal in the context of the EU joining negotiations.

After calculations of the European Trade Union Institute any eighth enterprise which falls under the scope of the EWC Directive had a branch office in Turkey in 2006 (altogether 270 enterprises). If, today, Turkey were already a member of the EU, Turkish delegates could move in into 152 European works councils already existing. At present, five delegates and three observers from Turkey are involved on a voluntary basis in some few EWC bodies.

On April 24th and 25th, 2007 the European Metalworkers' Federation (EMF) carried out a meeting in Istanbul "social dialog and social corporate responsibility in South-east Europe" which was thought also in response to numerous cases of hindrance of trade union activities in Turkey. According to the EMF the Turkish labour law does not comply yet with internatinally valid rules, which apply everywhere in the EU. 600 participants of a May demonstration were arrested in Istanbul few days later on May 1st, 2007.

For further reading (in German language):

The DGB Bildungswerk together with IG Metall published in 2005 a booklet worth reading on the history, the economy and the social system of Turkey as well as on the current problems of the Turkish society with regard joining to the EU.

DGB-Bildungswerk/IG Metall:

Länderprofil: Türkei

Tradition und Wandel

Düsseldorf/Frankfurt am Main 2005, 52 pages, € 3,50


The euro zone will be enlarged

Another two countries may introduce the euro as a means of payment on January 1st, 2008: Malta and South Cyprus. The EU Council of Ministers decided on it under the chairmanship of the German Chancellor of the Exchequer Peer Steinbrück on July 10th, 2007. The Maltese lira and the Cyprian pound are then exchanged at a fixed exchange rate in euro coins and euro banknotes. The former Yugoslavian autonomous republic Slovenia had introduced the euro already at the beginning of 2007 as the first of the EU accession countries.

In future the euro zone will thus cover 15 of the 27 EU member states with about 320 m. inhabitants. But already in 2009 Slovakia could join, in 2011 the three Baltic states and Bulgaria. On the other hand, the economically most important countries in Middle and Eastern Europe (Poland, Hungary and Czechia) will satisfy the criteria for the monetary union at the earliest in 2012, Romania only 2014.


Previous focuses on countries in EWC News (mostly in German language):

  9. EWC research
 
 

Management and EWC, a relationship full of contradictions?

 

Since January 2006 a research project about European works councils in Austria (see report in EWC News 4/2006) has been conducted by Institute for Society and Social Policy at University of Linz. EWC members, trade union secretaries and representatives of the management have been questioned in twelve groups. The Linz researchers have identified several models similar to those of the German study of Prof. Kotthoff (see report in EWC News 3/2006). They examined the role of central management and ordered it into types. We continue today to present selected results.


Type 2: The EWC as a presentation forum for politics of the group

At the type 2 no well-adjusted cooperation could develop between management and EWC for long time, the relations have remained contrary. The central management informs the EWC selectively and little transparently. The EWC meetings are obviously dominated by the papers of the management: abstract charts and management business data show the performance of the enterprise. These partly very effortful presentations belong to the professional routine of the top managers, serve the image advertising and are constituent of the "marketing strategy of the group".

 

Provided that restructurings are justified and explained at all, they shall increase the understanding of the delegates and defuse the risk of cost-intensive industrial disputes. Comments of the EWC members are desired as long as they do not contradict the positions of the management. Neither compromises are developed nor a critical dialog on human resource issues is possible.

The core problem of the EWC of type 2 is that the orientation at the shareholder value principle does not open any room to move for a participation of the workers' representatives. Monetary and quantitative targets form the basis of corporate control, the management exclusively decides on aims and strategies on the basis of the owners’ interests. European works councils of the type 2 can be found frequently in Anglo-Saxon enterprises and in a weaker form also in individual continental groups.


The further types are:


Analysis of the conduct of negotiations in the EWC

„Intercultural competence and robust transnational solidarity advance in times of the globalisation to strategic key resources of trade union representation.“

This central statement is from a research outline of the institute for sociology of the University of Erlangen Nuremberg which draws one's attention to a delicate "internationalization deficit" of the employees' side compared to the management. Under the title "communication and solidarity in cross culture employee cooperation" surveys have started there in several multinational enterprises at the beginning of 2007. 

The project employees Matthias Klemm and Dr Jan Weyand are particularly interested which concrete conditions an intercultural communication are successful in the EWC. Besides expert interviews - one took place under participation of Dr Werner Altmeyer, training and consultancy network "euro-workscouncil.net", in Erlangen on April 14th, 2007, - negotiation courses are recorded and analysed in interculturally combined works council meetings. Before, the project team "cross cultural solidarity" had already carried out German Czech comparable studies in multinational enterprises on communication. The following texts are only available in German language:


 

EWC research in the motor industry

 

A research project about European works councils started at the Ruhr University of Bochum in the motor industry on March 1st, 2007. The team around Prof Dr Ludger Pries would like to develop an EWC typology, to examine structural conditions of its work and to analyse the results of negotiations between EWC and management. The empirical study will cover production sites in Germany, France, UK, Spain and Poland of the following groups: DaimlerChrysler, Volkswagen, General Motors, Ford, Renault and PSA Peugeot Citroën.

In the context of this research project a workshop took place in Bochum with scientists from six countries from July 9th to 14th, 2007 to examine different aspects of the EWC research. Particularly interesting were the country studies of European works councils which were introduced by speakers from Poland, UK, France and Spain. In his contribution Dr Werner Altmeyer from the training and consultancy network "euro-workscouncil.net" followed the question whether European works councils need codetermination rights or better negotiation rights.

  10. Interesting web pages
 
 

Employee participation in Europe 

This new topic side of the European Trade Union Institute provides background information about numerous aspects of employee participation: European works councils, participation in the European company, information and consultation at a national company level, EU legislation, social dialog at European level and special features of industrial relations in each of the 27 EU member countries. Particular aspects, e.g. collective bargaining systems, health and safety or participation rights, can be compared "at the touch of a button" between the countries. Unfortunately, the Internet presence is only available in English.


British mega-trade union merger

The United Kingdom has a new trade union since May 1st, 2007: Unite with two million members has resulted from the merger of two multi-industrial unions – Amicus which is strongly represented in numerous branches among others in the metal industry (see Amicus sectors), and the transport workers’union T&G which is already grown beyond this sector (see T&G sectors). Unite wants to concentrate on the recruitment of younger employees (10% of the complete budget is provided for this) and the international cooperation.

Unite is not only the largest British trade union but also leading in the processing industry, in the transport sector, banks and insurances, in the food industry and in the print industry. It has also a strong membership base in the building and construction industry and in some services sectors, e.g. the cleaning and safety trade. In the private industry there is only another individual trade union with GMB, which is besides Unite numerical of importance. The merger shall be completed until November 2008, after that mergers are planned at an international level: with the steelworkers union of the USA and Canada (USW). Unite does not have its own web page yet, but all information can be found at Amicus and T&G.


Foreign dispatch made easy

The Council of European Professional and Managerial Staff EUROCADRES has published a manual for foreign use on the Internet. It is aimed at all employees who work in another member country of the EU or want to return from there. For every EU country information can be retrieved about the stay and contract of employment right, the appreciation of professional qualifications and diplomata, the national insurance system, the taxation, trade unions and working conditions up to tips for the search of a flat and looking for work.


Italian EWC portal

With the financial help of the EU the Italian trade union confederation UIL has put a side of its own for European works councils (Italian: Comitati aziendali europei - Cae.) into the net. Besides EWC information topics like the EU Directive on information and consultation, the European company and transnational collective negotiations could also be found there.

We have arranged numerous further interesting links in a link collection.

 

  11. New publications
 
 

Which identity does a European works council have?

 

This English-speaking anthology, which deals with the question about the collective identity of European works councils has been published in May 2007. Authors from several EU countries examine different aspects of the current EWC research. How do workers' representatives perform their work as an EWC member with a different cultural background?

 

Michael Whittall/Herman Knudsen/Fred Huijgen (eds.)

Towards a European Labour Identity

The case of the European Work Council

London/New York 2007, 233 pages, ISBN 978-0-415-40396-2, € 98,50

-> Further information          -> Online order

 


 

Basis knowledge concerning EU topics

 

This work book treats the political system of the EU (organs, competences), the economic integration (domestic market, euro zone, Europeanization of the economic policy) and its social consequences (pay, social systems, taxes, migration, plant shifts). A special attention is put on the problems of the Eastern enlargement and the prospects of the European social model. The book is suitable as a reference book as well as for adult education. It emerged in the context of the project "work and prosperity in an enlarged Europe" (see report in the EWC News 4/2005). The training and consultancy network "euro-workscouncil.net" contributed some texts on European works councils.

 

Alexandra Baum-Ceisig/Klaus Busch/Claudia Nospickel
Die Europäische Union
Eine Einführung in die politischen, ökonomischen und sozialen Probleme des erweiterten Europa

Baden-Baden 2007, 371 pages, ISBN 978-3-8329-2138-5, € 14,90

-> Table of contents          -> Online order

 


 

Moderation of cross-border meetings

 

A book which provides valuable suggestions also for European works councils has turned up for the German French cooperation in May 2007. The authors do not only give practical tips how meetings or project teams can be presented with French, Luxembourg, Swiss and German participants but moreover, deliver also scientifically sound instructions to the intercultural understanding. Using many case studies they show dangers, which can lead interculturally projects to misunderstandings, disturbances and possibly even to failure. The intercultural guide is a kind of "toolbox" and was composed by experts of the intercultural cooperation from the German French Euro-Institut in Kehl.

 

Euro-Institut, Institut für grenzüberschreitende Zusammenarbeit (Hrsg.)

Interkultureller Leitfaden

zur Moderation grenzüberschreitender Sitzungen

Baden-Baden 2007, 108 pages, ISBN 978-3-8329-2477-5, € 19,-

-> Further information          -> Online order

 


 

Labour law manual with an European part

 

The new edition of this manual does not only represent comprehensively material labour law and labour court procedures in Germany from the employee view but contains one section each of the international labour law and of the European community law. Here basic knowledge can be looked up (hierarchy of norms, implementation of Directives etc.) however, information about all important Directives concerning labour law is also found. A chapter deals separately with the collective European labour law and among other things with the European works council and the SE works council.

 

Michael Kittner/Bertram Zwanziger (Hrsg.)

Arbeitsrecht

Handbuch für die Praxis mit CD-ROM

Frankfurt am Main 2007, 4. edition, 2.993 pages, ISBN 978-3-7673-3773-3, € 189,-

-> Further information          -> Online order

 

  12. Training and Consultancy Network "euro-workscouncil.net":
         further examples of our work

 

New faces in EWC advice and research 

 

The growing demand for supplies from the training and consultancy network "euro-workscouncil.net" required reinforcements of our team. Two new members have joined in spring 2007, both very familiar since years with international trade union work and industrial relations.

 

After studies at the London School of Economics and Political Science (LSE), a PhD thesis on trade unions in the UK and teaching at the University of Hamburg Dr Carmen Bauer (photo) worked at the national office of the German postal workers union. She then became the personal assistant of the chairman of the German Industrial Union of Construction - Agriculture - Environment (IG BAU) Klaus Wiesehügel and later political secretary with the Brussels based European Federation of Building and Woodworkers (EFBWW). In the training and consultancy network "euro-workscouncil.net" she is in charge of the practice of European works councils, arrangements of EWC agreements and European health and safety at work.

 

Bernhard Stelzl (photo) is just about to finish his PhD thesis on social standards of German enterprises in Brazil. Since 1992 he is working as a trainer in international seminars, as project manager and free journalist. His main emphase of work is on the cross-border cooperation of workers' representatives, international company codes of conduct on working and social standards as well as communication and conflict training. He will strengthen both the publication and also the research activity in the training and consultancy network "euro-workscouncil.net".


 

Active EWC work in an Austrian steel group

 

Voestalpine has a similar past like Volkswagen: founded at the Nazi time the state-owned enterprise was after the war noted as a focus of the trade union movement and for outstanding company benefits. To day Voestalpine is a very profitable, listed processing company with its parent plant in Linz at the Danube (photo) with a steel base of its own and an exemplary EWC agreement. The workers' representatives from the four areas steel, train systems, cars and profile forms carry out cross-border division meetings with the respective division line. Such regulations exist only in few enterprises e.g. in the aviation and aerospace group EADS (see report in the EWC News 1/2006) and in the Swedish packing group SCA (see report in the EWC News 4/2005).

 

The training and consultancy network "euro-workscouncil.net" organized a workshop for the European works council in Linz on April 16th, 2007. In working groups it was for example acquired how one can anchor the EWC better in the workforce, use the office as an information turntable or develop the EWC further to a transnational negotiating party. The following texts are in German language:


 

IG Metall pushes EWC formations at the lower Rhein region

 

There is still a considerable backlog demand for the formation of European works councils in the metal and textile industry as well as in wood-processing. To push this process in smaller and medium enterprises which are seated at the Niederrhein, a meeting took place in Krefeld on April 30th, 2007, which was co-organized by the training and consultancy network "euro-workscouncil.net". The initiative started out from IG Metall which is responsible for these sectors in Germany.

 


 

Workshop for the EWC formation at the black sea

 

About 25 workplace representatives and full-time trade union officers of the transport sector from six countries met from May 5th to 8th, 2007 in the Romanian seaport Konstanza to inform themselves about the possibilities and limits of European works councils. The workshop took place in the context of a project sponsored from EU means with support of the European Transportworkers' Federation (ETF). Speakers of the event were besides Werner Altmeyer of the training and consultancy network "euro-workscouncil.net", Philippe Alfonso of the ETF in Brussels and Erika Young a deputy chairwoman of the International Transportworkers' Federation (ITF) in London. The port of Konstanza is regarded as the "Rotterdam of the east" because of its strategic situation at the Rhine-Main-Danube route and the considerable volume handling.


 

Restructurings in the chemical industry

 

On July 3rd, 2007 Dr Werner Altmeyer and Bernhard Stelzl from the training and consultancy network "euro-workscouncil.net" took part in a conference in Rome to report about the rights of the German works councils at restructurings. The meeting is part of an EU sponsored project on the implementation of the Directive on information and consultation which is managed by the Italian research institute CESOS and the trade union confederation CISL. Within the next months empirical results are collected in some enterprises of the chemical industry. The CESOS has already published case studies from France, Hungary, Italy, Spain and Romania and also from other sectors on its web page.


 

Our publication activities

 

In April 2007 Bernhard Stelzl dealt with the topic "taking on responsibility - Corporate Social Responsibility in Germany" in an article for the "Personalmagazin". In May 2007 Werner Altmeyer and Lionel Fulton presented in the magazin "der betriebsrat" the current situation of workplace representation in the UK. And Reingard Zimmer examined Europe-wide antidiscrimination agreements in the magazine "Arbeitsrecht im Betrieb" in July 2007.

With technical support of the training and consultancy network "euro-workscouncil.net" the Frankfurter Allgemeine Zeitung published a report on current trends of
the EWC work particularly at restructurings on July 21st, 2007.

You find additional publications at our publication page.

 


ver.di/GPA newsletter: new edition

On June 4th, 2007 the third issue of the EWC newsletter, which is jointly published by ver.di in Germany and the GPA in Austria was released. Topics of the issue 1/2007 were the new EWC agreement at UniCredit with an interview of the chairman of the German group works council of Hypovereinsbank, Peter König, a report on the establishment of European works councils in the finance sector, European works councils in the tourism sector (particularly the situation at Thomas Cook after the merger with MyTravel), the Europe-wide EWC-networking in media companies, accents in the energy sector and a report of the meeting of the services sector trade unions (UNI) in Athens.


 

Courier, package and express services: Study on EWC formation

 

At present, the training and consultancy network "euro-workscouncil.net" is working on an analysis of EWC agreements in the area of the courier, package and express services. The study is financially promoted by the European Commission and serves to support the formation of EWCs in this sector, e.g. at GeoPost (see report in the EWC News 4/2006). The report shall be published in autumn 2007 and deals particularly with the companies DHL (Deutsche Post), FedEx, Securicor, TNT, UPS and Wincanton.

 

  13. Details of seminars planned
 
 

Registration for the following seminars and workshops that we have co-designed can now be made:

 

Europa for trade union officers of IG Metall

Institutions, European Works Councils and related politics

08. -- 10-10-2007 in Bad Orb

-> Further details about this workshop (in German language)

 

Formation of European works councils in the port sector

24. -- 26-10-2007 in Livorno (Italy)

-> Further details about this workshop

 

Works council activities in Europe, the Euro Works Council (EWC)

Legal basis, foundation, intercultural communication

04. -- 09-11-2007 in Hamburg

-> Further details about this seminar

 

In-house events

Please find a survey of the subjects of in-house events here:

-> Subjects of In-house seminars

-> Subjects for in-house lectures

 

  14. Imprint
 

EWC News is published by:

 

Training and consultancy network "euro-betriebsrat.de" GbR

Von-der-Tann-Straße 4, D-20259 Hamburg
www.euro-betriebsrat.de (German)

www.euro-workscouncil.net (English)

www.euro-ce.org (French)

 

Authors collaborating on this issue:

Werner Altmeyer, Carmen Bauer, Kathleen Kollewe, Bernhard Stelzl, Reingard Zimmer

 

Distributor of the German version: 8,589 Empfänger

 

Newsletter archive: www.ewc-news.com

 

You can obtain or cancel EWC News here.

 

We are always pleased to receive comments and suggestions in relation to this newsletter as well as reports on your EWC activities. Please write us at: info@euro-workscouncil.net