This newsletter in English                   31 October 2007
Dieser Newsletter auf Deutsch

Welcome to issue no. 3/2007 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.
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You can find past issues in the newsletter archives.

 

  1. European commission gives green light
 
 

A new EWC Directive shall be adopted in 2008

 

On October 23rd, 2007 the European Commission in Brussels (photo) concluded its work programme for the year 2008. Into this a revision of the EWC Directive is particularly mentioned. It stands to expect that the second phase of the consultation of the European social partners will start before end of the year 2007 what is demanded by the trade unions for over two years (see report in the EWC New 2/2005). The decision of the European Commission is a political preliminary decision of first rank and approaches the demand of the European Parliament which had voiced in favor of the speedy revision of the EWC Directive in a resolution in May 2007 (see report in the EWC New 2/2007).

Social commissioner Vladimír Špidla has already instructed his employees apparently to formulate an outline for a wording of the law. Should the Czech social democrat wants to make a name for himself in this important socio-political question as EU commissioner before the expiry of his period of office (his remarks in the plenum of the European Parliament suggests so) there is not much time left for the final stages of the legislation procedure.

Which contents will the initiative have?

 

To suggest a progress opposite to the current EWC Directive, the Directorate-General of Špidla turns into the document with a great probability

  • increasing the minimum number of annual meetings

  • making the support by experts easier

  • providing a claim to training for EWC members

  • delimiting the participation rights of national and European works councils more clearly

  • define the effects of mergers on the EWC.

Such a suggestion from the European Commission would not only take up important demands of the trade unions but also calm French enterprises, which are made uncertain by numerous judgements. Almost all proceedings since adoption of the EWC Directive were decided in front of French courts and brought as a rule an increase in influence for the employees' side. In 1997 a French court had for the first time stopped the shutdown of the Belgian plant Vilvoorde on application of the EWC of Renault. The more recent verdicts on Gaz de France (see report in the EWC New 4/2006) and Alcatel-Lucent (see report in the EWC News 2/2007) also expel in the same direction.

Meanwhile, this development isn't regarded only by French enterprises as a threat (see report in the EWC News 1/2007) and a legally more precise definition of the rights of the EWC is particulary wanted. Furthermore EU Directives of a younger date like that for the participation in the European company (SE) provide further-reaching participation rights than the relatively old EWC Directive. In front of court this could represent an additional risk for the employers.

 

Employer meanwhile deeply worried

 

While the debate was treated more casually since the beginning of the legislation procedure in April 2004 of employers' side, its lobby work has increased considerably behind the scenes within the last weeks. It was indicated, that it is "getting serious" now. On October 10th, 2007 the German employer president Dieter Hundt (on the photo on the right) wrote to social commissioner Špidla, to prevent the second and decisive consultation phase of the revision of the EWC Directive. It would "damage the social dialog", so Hundt. The DGB federal board consulted Špidla on October 15th, 2007 to encourage him in his plan.

While the holding organization of the European employers' federations (Business Europe) supported its rejection on every change at the present Directive in a meeting on October 19th, 2007 once more the European Trade Union Confederation (ETUC) demanded in a letter to Špidla, on October 29th, 2007 to carry out the announced plan as planned. According to rumour the European Commission has already worked out a "roadmap" which describes the individual steps until the adoption of the new Directive if the employers' federations stay with their attitude saying no.

  2. Mega-mergers aggravate the EWC work
 
 

Hilton hotels taken by finance investor

 

Since October 24th, 2007 the Hilton hotel group rich in tradition with 2,896 houses belongs to the company empire of Blackstone. The "grasshopper" was ready to pay the shareholders 32% above the stock exchange value, altogether 26 bn $ (about 18 bn €). Blackstone could increase the total number of its hotel rooms on 600,000 with that and is the greatest hotelier of the world now. The associated company wants to grow apparently by further acquisitions in the housing trade. The take-over of Hilton is the greatest deal which, till now, the tourism industry has ever experienced.

 

European works council in the spectator role

 

When the German delegates in February 2007 came together to prepare the spring conference of the EWC, nobody suspected the forthcoming events. The sale of the 132 Scandic hotels to the Swedish finance investor EQT for 1.1 bn $ (0.8 bn €) had just been published. After this a strange silence occured on the part of the management until the take-over offer of Blackstone was finally confessed in July 3rd, 2007.

Manfred Monjé (photo), chairman of the works council in Mainz and secretary of the European works council tried in vain within the last months to call for an EWC meeting or at least a meeting of the steering committee with the central management. This was replaced completely by the new owner already on October 29th, 2007 so that the EWC now is facing a completely new manager team. We enquired how Manfred Monjé judges the situation from the view of the employee representation.


 

Rio Tinto refuses information

 

Following to the take-over offer of the British Australian raw material group Rio Tinto (see report in the EWC News 2/2007) the EWC of Alcan which represents 31,000 employees of the Canadian aluminium producer in Europe criticizes the unsatisfactory information about the planned sale of the packing division and reorganisation of further lines of business. In late September 2007 a delegation of the EWC was heard by the European Commission in the context of the merger control proceedings and on October 8th, 2007 the workers' representatives of Alcan had for the first time the opportunity to discuss with the management of Rio Tinto. Many questions remained unanswered, so the EWC in a press release.


 

Mega-take-over in the financial community

 

It is the greatest bank merger of economic history. The Royal Bank of Scotland (RBS) has won the running against the also British Barclay's bank at the take-over of the big Dutch bank ABN Amro. RBS will pay 71 bn € in a consortium with Banco Santander from Spain and Fortis from Belgium for ABN Amro. The latter shall be taken to pieces and 19,000 jobs cut. Fortis wants the branch offices in the Netherlands, Santander takes the subsidiary firms in Italy and Brazil.

 

The federation of the service trade unions (UNI) founded a worldwide network in June 2007 which immediately held conversations with the top management of the two bidders to clarify the demands on the employees' side. The result is a self obligation of the new owners, so-called "People Principles", containing ten points. However, the trade unions want to go further and demand an international framework agreement for each of the banks involved also for Barclays. These dispose already since the middle of the nineties about a European works council, merely Banco Santander followed only in 2005. In the course of the take-over the EWC of ABN Amro will be dissolved and the delegates distributed to other councils. ABN Amro has a subsidiary in Sweden which has changed itself into the legal form of the European company (SE) in October 2005 as the Europe-wide first bank (see report in the EWC News 1/2006).

  3. No shyness about the court way
     

 

Second round in the merger poker with the EWC  

 

After the decision of the French president Nicolas Sarkozy to finally complete the merger of the energy groups Suez and Gaz de France (GdF) the works councils want to go to court once more now. The merger had been temporarily stopped on application of the European works council of Gaz de France (see report in the EWC New 4/2006) in November 2006. This time the EWC of Suez, the other merger partner, wants to take up legal measures.

 

The workers' representatives of Suez were informed about the details on an extraordinary meeting in Paris on September 2nd, 2007. On September 4th and 5th, 2007 the steering committee of the EWC met to coordinate its further procedure. With this merger the third largest energy group of the world would emerge, before that the divisions waste disposal and water shall be split-off from the Suez group and sold over the stock exchange. 

On its plenary session on October 9th and 10th 2007 in Barcelona the European works council of Suez authorized its secretary, that is the spokesman of the employees' side, to take legal steps. In a press release it criticizes that the details of the merger were negotiated between the French government and the most important shareholders of both enterprises without obtaining the opinion of the works councils before. This is a violation of the EWC Directive.

EWC of Gaz de France plays on time

 

At an extraordinary EWC meeting on September 12th, 2007 the European works council of Gaz de France also formulated its appeal. It would be a new measure which is different in many points from the plans of the year 2006. A completely new process of information and consultation would therefore be required. In another EWC meeting on October 26th, 2007 the different conceptions of legality already met.

 

The EWC members had got a consultation document covering more than 100 pages only a few days before. They refused to comment on this until everyone has a copy in his mother tongue. The EWC warned the central management to implement one-sided measures before the consultation procedure is concluded. This would immediately lead to a new round in lawsuit. Therefore the central management will have to proceed carefully to avoid a renewed defeat in front of the court. This would delay not only the merger process but also damage politically the new French president.


European trade unions found legal protection funds  

In view of the increasing number of legal disputes in EWC questions the European Public Service Union (EPSU) will establish a legal protection fund. The deputy Secretary General Jan Willem Goudriaan explained to the EWC News, EPSU took a sapper role with that. No other federation has such a fund at its disposal till now.


Success for workers' representatives in Vienna

On January 31st, 2007 the supreme court of justice of Austria decided on the obligation to inform prior to the foundation of an EWC and thus confirmed a judgement from the first instance from January 11th, 2006th. It is the first verdict of an Austrian court in an EWC matter. Since 1996 the German group works council of the logistics company Kühne + Nagel (KN) tries in vain to set up an EWC. It had repeatedly to sue for translation and travelling expenses in court. The KN group based in Switzerland and with that outside the EU wants to prevent the formation of a Europe-wide employee representation with all means. 

 

The lawsuit dates back to a decision of the European court of justice in Luxembourg in January 2004 according to which the German subsidiary of the group has to introduce the necessary steps for the formation of an EWC. However this isn't authorized to instruct its sister companies in other EU countries. Since the central management boycotts the procedure in Switzerland, legal steps had to be taken once more. Kühne + Nagel Hamburg went to court against Kühne + Nagel Vienna, because the Austrian management refused to transmit information to Germany. So the employer sued himself to delay the EWC foundation further. At present, a similar lawsuit is pending in Sweden, too.

  4. New EWC and SE agreements
      

 

Pfleiderer founds EWC

 

An EWC agreement was signed according to German law for the employees of Pfleiderer on August 9th, 2007. The enterprise from Neumarkt (Bavaria) disposes over eight locations in Germany and three in Poland, moreover, a society was taken in Sweden in March 2007. Pfleiderer supplies the furniture industry with wood materials, e.g. chipboards.

 

Germany will get four seats, Poland two and Sweden one in the EWC. Within the next 4 years eight EWC meetings are to take place, per annum at least one. The council is conducted by a steering committee from three members. The constituting meeting is provided for November 2007.

 


 

Two EWC agreements in the construction industry

 

An EWC agreement was for the first time signed for Bilfinger Berger Industrial services (BIS) in Munich on August 30th, 2007. The enterprise, resulted from Rheinhold & Mahla AG, belongs since 2002 to the group Bilfinger Berger and deals with the erection and maintenance of industrial plants. Besides 22 German locations there are branch offices in 15 EU countries and Switzerland. In the constituting EWC meeting which took place on the same day it came to a crucial vote about the chairmanship.

Since 1995 there is a European works council already in the assembly enterprise Kaefer which has a new basis now. On September 11th, 2007 the new EWC agreement was signed in Bremen at the group seat, which includes the new EU countries and more clearly regulates the participation rights of the EWC. The next aim of the EWC is to negotiate minimum conditions for the cross-border assignment of employees with the central management of a group.


 

Former Airbus location with an own EWC

 

For PFW Aerospace in Speyer (formerly Palatinate aeroplane plants) an EWC agreement was signed according to German law on September 6th, 2008. Germany is represented with five seats, France and the UK with two each. The EWC meets twice every year, can set up working groups of its own e. g. on occupational health and safety and has an access right to all European plants. Special meetings take place at unforeseen events. A renegotiation of the complete EWC agreement is provided at mergers with which the new EWC Directive is already anticipated.

 


 

EWC with a Macedonian representative

 

The Europe-wide first agreement which includes Macedonia was signed for the about 10,000 employees of the regional energy supply company EVN with seat in Maria Enzersdorf (Lower Austria) on September 12th, 2007. Next to three representatives each from Austria and Bulgaria one representative from the former Yugoslavian autonomous republic will belong to the EWC.

We have provided further EWC agreements on a separate download page.


Saarland electric manufacturer with SE works council

 

Since June 15th, 2007 the Hager group from Blieskastel operates under the name of an European company (SE). Before an agreement on the employee participation had been signed for the 7,600 employees in Europe on May 23rd, 2007. The origins of the enterprise are located in the Saarland and there are production centres in the Alsace, in Italy, Spain, UK and Poland.

 

Since 1998, Hager has a 17-headed European works council which could meet once per year. This is taken off now by a SE works council which meets twice every year and has stronger participation rights than the EWC. His 22 members, among this six from France and three from Germany, met for the constituting meeting in Obernai (France) on September 18th, 2007. Because Hager has less than 2,000 employees in Germany, the enterprise didn't come under the co-determination law. Therefore there won't be any workers' representatives in the new SE supervisory board.

  5. Worldwide social standards
 
 

International framework agreements about core labour standards

 

Within the last months two new framework agreements were signed about the application of social principles and core working standards in worldwide active enterprises. Contracting parties here on the employees' side are the international federations of trade unions.

 

On September 28th, 2007 an international framework agreement was signed in Brussels for the 14,000 employees of the Belgian metal and chemical enterprise Umicore which covers 35 countries. The agreement deals with human and trade union rights, working conditions, environmental questions and equal treatment. A committee will supervise the compliance with the agreement.

The first international framework agreement in the textile industry for the worldwide second biggest clothing retailer Inditex was signed in La Coruña (Spain) on October 5th, 2007. It provides for the respect of international working standards for the whole chain of production and also for the suppliers. The agreement is supervised every year by a working group from three representatives each of the enterprise and the trade unions. The management of Inditex tries already since some time to get the compliance with minimum standards (see report in the EWC News 1/2007).


 

Success in Brazil

 

In May 2007, the Canadian printery group Quebecor had signed a worldwide framework agreement (see report in the EWC News 2/2007), which shows meanwhile first successes. After a worldwide day of action a social dialog was installed in Ipojuca (Brazil), the local trade union as a negotiating party was recognized, 80 contract workers were emlpoyed fully and the dismissal of workers' representatives was undone.

 


 

ArcelorMittal on the way to the world works council

 

After the successful completion of the negotiations about a European works council for the steel group (see report in the EWC News 2/2007) 150 workers' representatives of 23 countries met for the first ArcelorMittal world conference in Montreal (Canada) from September 16th to 18th, 2007. They signed an agreement on the international cooperation and a letter of intent for the formation of a world works council.


World conference of the Siemens works councils

43 Siemens workers' representatives from 17 countries of Europe, Asia and America met in Frankfurt, Germany on October 25th and 26th, 2007 to discuss the working conditions and global strategies of the group. It was already the third meeting of this kind. The executive board was asked to recognize and to realize worldwide basic standards like the core working standards of the International Labour Organization (ILO) and the guidelines of the Organisation for Economic Cooperation (OECD) for multinational companies.

  6. Case studies: Unilever and Volkswagen
 
 

Staff cuts despite record profit

The British Dutch consumption goods group Unilever could increase its clear profit by 16% to 1.2 bn € alone in the second quarter 2007. The central management of a group nevertheless announced the shutdown of 50 of the 300 factories and the reduction of worldwide 20,000 jobs on August 2nd, 2007. Since years now one restructering is followed by the next (see report in the EWC New 4/2005).

The European works council heard about it from the press and addressed all employees on the same day in a circular. On September 4th, 2007 the steering committee met with the central management in an extraordinary meeting, however it didn't get concrete information about the planned measures untill today.

On September 24th and 25th, 2007 the European works council and the Unilever coordination committee founded by the federation of European food trade unions EFFAT came together with representatives from Germany, France, UK, Italy and the Netherlands in Amsterdam to plan Europe-wide protests. Highlight shall be a demonstration in Rotterdam at the group seat on December 4th, 2007.

Only in the Netherlands three of six production centres shall be closed (see graphic). The staff have gone on strike there on October 11th, 2007, to maintain all locations and to achieve a three-year job guarantee. The survivability of all locations had been confirmed before by an external consultancy firm which the works councils had engaged. Since the national managers only execute the decisions of the European headquarter they are no real negotiating party for the employee representation. The European works council however only has consultation, but no negotiation rights. The trade union FNV Bondgenoten documents the events on a web page of its own.

4,000 jobs shall be cut also in France in ten production centres and in the head office. The employees' side discussed it in the group works council on October 18th, 2007. The trade union CGT documents the events on a web page:


 

Judges weaken Volkswagen participation

 

On two successive days courts have decided on the future of the participation in Volkswagens. The Volkswagen law of 1960 was declared illegal by the European Court of Justice in Luxembourg on October 23rd, 2007. And one day later, the labour court Stuttgart dismissed an injunction of the VW works council against the participation agreement of Porsche Automobil Holding SE.

 

The Volkswagen law limits the rights to vote of shareholders to 20% through what the greatest German car manufacturer was protected from a hostile take-over till now. In addition the country Lower Saxony was in principle represented in the supervisory board with two seats. The employees' side always had a majority together with the regional government particularly on the prevention of location shutdowns. The European Commission saw, however, an injury of the free circulation of capital in this. The Volkswagen law prevents private investors to participate in the company and to take part in its administration and control effectively, the Court was judging now.

For Porsche the way is free with that for a take-over of the majority shares in Volkswagens. For this reason Porsche Automobil Holding had been founded as European company (SE) already in July 2007 (see report in the EWC News 2/2007). Previous Porsche AG (as a 100% daughter) and the 31% share in Volkswagens are combined under the roof of the holding. The workers' representatives of Volkswagen weren't involved in the negotiation of the participation agreement which is terminable at the earliest within ten years.

 

The EWC fears dissolving

 

As soon as Porsche increases its VW share on over 50%, the most important decisions wouldn't be made any more in the supervisory board of Volkswagens but in the supervisory board of a new Porsche Automobil Holding SE. The employees of both partial groups shall be represented adequately there -- so the SE agreement. However the 324,000 Volkswagen employees would practically get only three seats just as much as the 12,000 Porsche employees. The European works council of VW to which 27 members belong would be dissolved and Volkswagen would be represented with twenty delegates in the SE works council of Porsche. Porsche also shall get twenty mandates there. This caused a public dispute between the two chairmen of works councils.

The world works council of Volkswagens also supported the review at his meeting in Mladá Boleslav, the headquarters of the Czech subsidiary Škoda, on October 10th, 2007. At present it is still unclear whether this council which had succeeded with a worldwide valid social charter in June 2002 shall also be dissolved.

Since the management of Porsche says strictly no to re-negotiations the works council of Volkswagen applied for an interim injunction against the registration of Porsche Automobil Holding SE. The labour court Stuttgart rejected this application on October 24th, 2007. Thus the way is free for the register court to finalize the registration on November 13th, 2007. The Volkswagen works council has announced to proceed with the normal legal action after that. With that Porsche is the second case in which it comes to such a lawsuit. Already in 2004 the registration of the construction holding Strabag SE had led to a legal discussion which could, however, be settled conjointly without verdict (see report in the EWC New 3/2006).

The IG Metall executive board intervention

 

Dr. Thomas Klebe, head of the department company policy and participation in the headquarter of IG Metall trade union doesn't see the participation in the supervisory board of Porsche Automobil Holding SE weakened by the verdict. In order to smooth out the conflicts between the two works councils, a conversation took place on the invitation of the second chairman of IG Metall, Berthold Huber, in Frankfurt am Main on October 30th, 2007. The Porsche works council had before signalled willingness to compromise with regard to the distribution of seats in the new SE works council.

 

As a protest against the unfavourable participation regulation the work rests in all six West German VW plants on October 31st, 2007 for an hour. Strikes aren't possible in Germany due to the no-strike clause. Though the Works Constitution Act gives the works councils the right to carry out such information events during the working time.

 

  7. Workers' representatives put signs
      
 

Interim results at General Motors

 

On July 4th and 5th, 2007 the final meeting of the project GMEECO ("Requirements and Perspectives of the General Motors Europe Employees Cooperation") took place in Frankfurt, Germany. The aim of this project which started in December 2005 and which was sponsored financially by the EU was to develop a Europe-wide coordinated strategy of the employee representations against location competition (see report in the EWC New 1/2006). However, an imporrtant goal the conclusion of an Europe-wide framework agreement for the future production distribution into countries and locations couldn't be obtained in the short project running time.

 

At the meeting conclusions were drawn from the previous cooperation and discussed about the necessity of a revision of the EWC Directive. A meeting documentation is now online availably, as well as a 10 point catalogue for an improved EWC Directive.


 

Strike against virtual IBM branch offices

 

The employees of IBM have developed a new form of action in Italy. With a virtual strike on the popular Internet platform "Second Life" they protested about the cut of an annual profit-sharing of 1,000 € and strengthened the negotiation position of the Rappresentanza Sindacale Unitaria (RSU = Italian works council) with that.

 

With support of the international federation of the service trade unions (UNI) and the International Metalworkers’ Federation (IMF) the first virtual strike which was reported comprehensively in the press took place on September 27th, 2007. Almost 2,000 people from over 30 countries participated in the action and went to the platform which uses the IT company to speak to new customers. The protest day led to the resignation of the chairman of the executive board of IBM Italy. The European management had feared a loss of image and queried the dealing with the Italian works council. The U.S. group invests about 10 m. $ in the virtual world every year and is particularly vulnerable at this kind of protest.


 

A Spanish bank group promotes equal gender treatment

 

A directional agreement on the equal treatment of the sexes for the worldwide active financial service provider Banco Santander in Madrid was concluded on October 8th, 2007. It is based on the equal treatment and antidiscrimination law which became effective in Spain on March 24th, 2007 and commits all enterprises with 250 employees to do so. A comparable agreement was also concluded for the French enterprise Areva in December 2006 (see report in the EWC News 4/2006).

 

  8. Anglo-Saxon works constitution
 
 
Ireland goes other ways than the UK 

Ireland is linked with Great Britain through a long history, the work relations are also similar. Since 1922 the Republic of Ireland is independent and became a member of the EU in 1973. With its 4.2 m. inhabitants (as much as Saxony) Ireland takes part in the monetary union unlike the UK and has introduced the euro as a means of payment from the beginning. Formerly the island was one of the poorest regions of the EU, but it could make up time considerably after joining the EU. Because of its high growth rates and strong fall in unemployment (with 4% the third lowest quota in Europe today) the country is regarded as “Celtic tiger".

About 70% of all foreign investments come from the USA, among this many high tech enterprise and financial service provider, which practice a strongly anti trade union strategy. Nevertheless the degree of trade union organisation is with about 35% higher than in the United Kingdom (28%). 81 individual trade unions which can also be found in Northern Ireland belong to the Irish Congress of Trades Union ICTU. On the other hand British trade unions like Unite which has arisen from the merger with Amicus and T & G in May 2007 also organizes members in the Republic of Ireland. The system of collective bargaining has always been promoted by the Irish government unlike in the UK under Thatcher. The bargaining agents work together with the government in tripartite bodies such as the Labour Relations Committee, which can engage in industrial disputes.

Local works councils 2006 introduced by EU right

Many Irish employers oppose the introduction of works councils which are in their opinion a relict from 60s and seventies. Today's speed of industrial change requires a direct communication with the employees and not over the detour of a works council. To fulfil the requirements of an EU Directive from the year 2002 which obliges enterprises as of 50 employees to information and consultation of the staff in social and economic questions the Irish government had to act and to disregard this criticism, however. With the Employees (Provision of Information and Consultation) Act 2006 works councils were therefore for the first time introduced. Only trade union members whose association represents at least 10% of the staff are allowed to vote in the election. An election by the complete staff only takes place when there isn't any trade union with a 10% membership (see report in the EWC New 2/2006).

European works councils in Ireland

After calculations of the European trade union institute only six of 50 enterprises from the Republic of Ireland had founded an EWC in the year 2006, among these in 1996 the packing group Smurfit (see report in the EWC New 2/2006) and the state airline company Aer Lingus. Guiness was also one of the EWC sappers, though the Irish tradition brewery (see photo) was bought in 1997 by the worldwide biggest spirits manufacturer Diageo from London. Delegates from Ireland are represented in every third EWC (in 298 of 816) today.


Lawsuit around employee representation at Ryanair

Since works councils were / are not existing in Ireland as well as in many other Anglo-Saxon countries the shop stewards play a decisive role in the companies. However they have to be recognised at first by the employer in a collective agreement ("recognition agreement") as a negotiating party. Despite the high organisation degree there are enterprises in Ireland which refuse this such as the airline company Ryanair. Since 1998 legal disputes took place here over and over again.

A law revealed the right to the trade unions in 2004 to represent their members also in enterprises without employee representation in so called "non union companies" like Ryanair. Nevertheless the management opposed with reference to the “Employee Representation Committee" (ERC), a substitute employee representation founded by Ryanair without a trade connection. The supreme court of justice decided on the bargaining ability of the ERC on February 1st, 2007. Because of lacking proof (nobody was ready for a testimony from the Ryanair staff) the lawsuit was referred back to the labour court, but the court made clear that Irish staff is entitled to an adequate collective representation. Already in 2006 Ryanair had received a punishment of 1 m. € because leading managers had made wrong statements in front of the court.


Historical step for Vodafone UK

The recognition of a trade union plays a central role also in the British system. A directional agreement was concluded for the regional branch offices of the mobile telephone provider Vodafone on October 11th, 2007. The management agreed to recognize a trade union (in this case the communication trade union Connect) and to install an employee representation for the first time in the company history. The new agreement only applies to about 500 of the altogether 11,600 British employees, though. Furthermore the remaining staff must do without collective protection.

The step was not carried out voluntarily, because only after intervention of the independent Central Arbitration Committee the management agreed to sign the agreement. In a comparable case a London industrial tribunal had sentenced the newspaper publishing house Macmillan to a fine in July 2007 (see report in the EWC News 2/2007).


"Trade union hunter" in the food industry

The situation at the food manufacturer Kettle Chips is more difficult. There the management engaged "union busters" from the USA in September 2007 (they describe themselves more kindly as "Labour relation consultants") to stop the legal procedure for the erection of an employee representation. The 340 employees in the production centre Norwich should be stopped from joining the trade union Unite. The conflict had arisen at the payment of overtime and led to a media campaign and a consumer boycott against the enterprise.

At the end the advisers from Malibu (California) could nevertheless score a success. A large part of the staff - about 40% are immigrants from Eastern Europe - were intimidated so much that they voted against the trade union in a ballot. The British Trades Unions Congress TUC has announced now to train trade union secretaries especially to hunt the hunters in future ("to bust the busters"). The governing Labour Party sees a violation of the British labour law in the behaviour of the factory management. There also should be a violation of EU norms.


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

  9. EWC and authoritarian corporate culture
 
 

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). We present the third part of our series today.


Type 3: The marginal EWC in the authoritarian corporate culture

A distinctive distance and formal routines characterize the relation between central management and EWC in the type 3. Mostly this are groups with seat in south European countries in which a participation of the employees' side hardly exists. The management behaves strictly legalistically in authoritarian corporate cultures opposite the EWC. The verbal reports of the top managers confine themselves to the minimum specifications of the EWC agreement, frequently stay with demands of the workers' representatives unansweredly. The central management of a group argues with missing formal EWC rights, the CEO surrenders more information than the other managers, though this one be obliged by him on a restrictive politics.

 

The legalism has two consequences: on the one hand, there aren't any despotic acts of single managers as in the case of the type 2 who differ from the formal minimum standards of the EWC agreement. On the other hand, the central management doesn't grant the EWC any informal participation possibilities, how are stamping them for type 1. If single delegates formulate positions to the group strategy, these are taken note of but not commented on in greater detail by the management. Policy units design e.g. codes of conduct which are put into operation by the employer without including the EWC in the front-end. The employees' side therefore isn't tied into the monitoring either.

 

The prerequisites for a cooperation are rather unfavourable at the type 3. Is no doubt particularly for Italian or French top-managers that they can steer the group by virtue of their authority. Such a style of management provokes, however, industrial disputes which in turn are considered as legitimate form of the discussion by workers' representatives of Mediterranean countries. Since the European works council seem suitable only little as a platform for spontaneous, militant actions, the delegates from south European countries at the EWC of type 3 are more interested in the action possibilities at a national level than at the EWC.

The further types are:


 

Corporate culture in the safety and cleaning sector

 

About 70 trade union representatives came together from 16 European countries in La Roche (Belgium) from October 7th to 9th, 2007 to discuss the EWC work in the safety and cleaning sector. The companies Falck, Group 4 Securicor, ISS, Rentokil Initial and Securitas, which have already established an EWC were in the focus.

 

The federation of the service trade unions (UNI Europe) judged the presented cases as “largely disappointing." So some employers prefer trade unions of their own, which don't have any democratic identification, frequently also management representatives are sent into the EWC. Particularly in the new EU Member States the situation is particularly problematical.


 

Guaranteing democratic electoral procedures

 

There aren't problems not only in the safety and cleaning sector the assignment of delegates in the EWC is full of problems. Here two examples how they also can appear in other sectors:

  • The delegates from UK are sent by a "forum” which the employer installed as a substitute for an employee representation to avoid the legal recognition of a trade union. Shall works councils from the Continent accept this?

  • What to do if in central and Eastern Europe no operating employee representation exists and delegate seats remain unoccupied?

To put the work of an European works council on an acceptable basis, the highest vigilance is therefore advisable in the election of delegates. This doesn't only apply to regular elections but starts already before the EWC formation. So all members of the special negotiating body (SNB) must get their mandate on a democratic basis. The rules for the election of delegates for all 27 EU countries is now presented concisely in the "newsletter for company policy" of the European Metalworkers’ Federation (EMF). It also containes the new provisions for Romania and Bulgaria.

  10. Interesting web pages
 
 

European tourism portal

On October 24th and 25th, 2007 the new Internet portal of the trade unions in the tourism sector was introduced to the public at a meeting in Portimao (Portugal). The web page provides special information for workers' representatives in travel and tourism companies and has an area of its own for European works councils. The contents are further completed within the next months and are available in English, French and German.


Goodyear network

The trade unions have founded networks in many multinational enterprises to exchange information between workers' representatives worldwide, a preliminary stage to the world works council. There is such a network organized by the international federation of the chemistry trade unions (ICEM) at the U.S. tyre manufacturer Goodyear since 1999. News and comments can be found in different languages on a Blog established specifically on the Internet. The network sends a newsletter out under the title "Global Solidarity" in English, French, Spanish and German once till twice every year.


New web page to the European social fund

Since 50 years the European Social Fund (ESF) hasn't only supported structurally weak regions at the creation of new jobs but also persons looking for employment at the further education. The European Commission has set up a web page in 23 languages now. With a click on the map it can be found out to which countries money flows and which projects are sponsored.


Project Oder region

Already since October 2005 the DGB country district Berlin-Brandenburg maintains an internet page on European political topics (see report in the EWC New 4/2005). Here one can also find information about an EU project, which wants to bring together the economy region western and eastern the river Oder. Together with Polish trade unions questions for example of the labour market and social policy are dealt with.

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

 

  11. New publications
 
 

Training guide for European works councils

 

The trade union advisory committee (TUAC) at the Organisation for Economic Cooperation (OECD) in Paris has presented a guide for the execution of seminars under the title “European works councils and the OECD principles for multinational enterprises". The principles are a constituent of the worldwide social responsibility of enterprises and are frequently taken up at the conclusion of international framework agreements. The booklet delivers basic knowledge about European works councils, international trade union structures and rules for multinational companies. Charts which can be used for lectures are also contained. The guide is available in English, French, German and Czech.


 

Background Knowledge to Private Equity

 

The international federation of the food trade unions (IUL) in Geneva has presented a booklet on finance investors in May 2007. It explains what Private Equity is, how it works and which dangers it brings about for employees. Possible strategies for negotiations with Private Equity funds are shown and a number of instances represented. A list of the 50 largest participation companies is found in the appendix. The booklet is available in German, English, French, Swedish and Spanish.


 

Cross-border participation in the SE

 

Since February 2007 the third, revised edition of a guide on the European public limited company (SE) from the Hans Böckler foundation is available. It contains a summary of the foundation forms, the participation of the employees and the course of the negotiations about an agreement on the participation. The complete text of the Allianz SE agreement is printed (also see report in the EWC New 3/2006). New in the booklet are remarks on the merger Directive, which was converted into German law in December 2006. It regulates the cross-border fusion of public limited companies (see report in the EWC New 4/2006).


 

Paperback to the labour law with an international viewpoint

 

This standard book of Prof. Däubler is now available in the 16th edition. Against previous editions it has been extented in one point: the look over the edge of the plate of the national events isn't treated as an independent chapter but is included in all topics. Thus the author has finally abandoned the idea that the globalisation leaves the labour law untouched. The cost-push, which starts out from cheap suppliers, the codes of conduct of American groups, which 'chop' on the German subsidiaries, the threat with production shift – all these are challenges, which one cannot avoid any more. Also for European works councils the "guide for employees" is a recommendable reference book.

 

Wolfgang Däubler

Das Arbeitsrecht 1

Leitfaden für Arbeitnehmer

Reinbek 2006, 16. Auflage, 864 Seiten, ISBN 978-3-499-61966-3, € 16,90

Further informationen          → On-line order

 

  12. Training and consultancy network "euro-workscouncil.net":
         further examples of our work

 

Negotiations for the EWC creation in a Chinese company

 

Motorcar supplier Johnson Electric seated in Hong Kong will found an European works council. Workers' representatives came together from six countries in Bremen from September 16th to 19th, 2007 to discuss the further steps towards the formation of a special negotiation body (SNB). The event had been co-arranged by the training and consultancy network "euro-workscouncil.net". The central management in Switzerland will accompany the EWC creation constructively. Since 1992 the enterprise is represented in Germany and since 2003 in Italy, since then numerous production centres in Western and Eastern Europe had been purchased. Johnson Electric will most likely be the first Chinese enterprise with an EWC.

 


 

Dubai Ports World: EWC study

 

After a bidder competition the state owned port company from Dubai (DP World) took over the Britisch tradition enterprise Peninsular and Oriental Steam Navigation (P&O) with its worldwide 29 container terminals in March 2006. DP World has thus become the third largest port company of the world. In Europe the enterprise operates important terminals in the UK, Belgium (Antwerp), Romania (Konstanza) and Germany (Germersheim).

 

P & O founded already in 2000 an European works council, which has been continued under the roof of DP World on an improved basis since May 2007. It can meet now twice every year. With support by the European Transport workers Federation (ETF) the training and consultancy network "euro-workscouncil.net" will provide a case study about the arrangements of the new EWC agreement. First results are introduced at the end of November 2007 at a meeting in Livorno (Italy).

DP World had tried in 2006 to take over the Hamburg port company HHLA and failed in doing so just like Deutsche Bahn. As a protest against the privatization plans in the Hamburg port the work rested repeatedly (see report in the EWC New 4/2006). Both DP World and the Hamburg HHLA are being part privatized over the stock exchange in November 2007.

 


 

Restructurings and finance investors

 

At present members of the training and consultancy network "euro-workscouncil.net" are examining restructuring at Smurfit Kappa. The group based in Ireland arose by the merger of two packing groups in spring 2006 (see report in the EWC New 2/2006). The exclusion of the fork truck manufacturer Kion from the Linde group and the sale to an American finance investor is also examined. The works council of Kion was involved in the selection of the new owner. The case studies are part of an EU sponsored project, which is based at the research institute CESOS in Rome (see report in the EWC News 2/2007).


 

Negotiation competence: Coaching for EWC members

 

An extension of the strategic actionability of European works councils in view of different traditions and cultures of industrial relations is the aim of a new coaching offer, which was developed by the training and consultancy network "euro-workscouncil.net" together with EWR Consulting in Frankfurt am Main and introduced to the public now. Before his adviser activity Rudolf Reitter, the initiator of the concept, was working as a scientific assistant at the European works council of the motorcar supplier ZF Friedrichshafen for several years and knows the problems from the practice: “The early exertion of influence during location competition requires a solid negotiation strategy, supported by economical know-how". Three interlocked modules shall prepare the EWC members for this challenge.


 

A German market leader enlarges training offer for European works councils

 

The institute for the further education of works councils (ifb) organizes about 2,100 seminars for more than 26,000 participants to 270 different topics every year. Since 1998 seminars for European works councils conceived by members of the training and consultancy network "euro-workscouncil.net" are also part of it. Due to the growing demand the two-part seminar row was extended to three steps from 2008. Besides a basic seminar, “the road to an European works council” there is in future an advanced course “Ensuring legal compliance for EWC agreements -- work effectively in the EWC" and a deepening and refresher course for professionals.


 

Trade unions in Germany and France

 

Dokumente, a magazine for the German French dialog, presented in August 2007 an edition with the thematical focus on trade unions. Several contributions about industrial actions, member development and the cross border cooperation are found in it. Horst Mund and Kai Burmeister from IG Metall headquarter write on trade unions before the challenge Europe, the cooperation of European works councils is represented by Werner Altmeyer of the training and consultancy network "euro-workscouncil.net". At the same time the French magazin "Documents" also took up this topic, numerous articles were therefore published in both languages.

Further magazine contributions

 

In July 2007 a contribution on French works council advisors in comparison with German trade union officers was published in the magazine Mitbestimmung and an overview of current EWC judgements in France was presented in the magazine Arbeitsrecht im Betrieb. All texts are in German:

You find additional publications at our publication page.

 


ver.di/GPA newsletter: new issue

The fourth edition of the German Austrian EWC newsletter of ver.di and GPA which is made by the training and consultancy network "euro-workscouncil.net" has been published on October 22nd, 2007. It contains an interview with the divisional director participation from the ver.di federal administration Martin Lemcke on the new participation agreement at Fresenius, reports on the creation of European works councils, including an interview with Paul Hofer, newly elected EWC chairman of the Austrian energy group EVN, furthermore the presentation of the international work of the ver.di department of financial services, background information on France and current judgements as well as notes on events and Internet sources.

  13. Current seminar appointments
 
 

Registrations are possible for the following seminars and workshops co-made by us:

 

Creation of European works councils in the port economy

18 -- 24-11-2007 in Livorno (Italy)

→ further information about this workshop

 

Works council activity in Europe, the Euro works council (EWC)

Europe for trade union officers of IG Metall

Institutions -- Political fields -- European works councils

16 -- 18-04-2008 in Bad Orb

13 -- 15-10-2008 in Bad Orb

→ further information about this workshop

 

In-house events

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

→ Topics for in-house training

→ Topics 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: 9,050 readers

Distributor of the English version: 932 readers

 

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