Company policy and EWCs, Economic Policy, Europe

As the trend towards public sector pay cuts began to take hold across Europe, EPSU decided it was important to monitor the impact of those cuts and the way they were being implemented. Two major reports produced by the Labour Research Department set out not just the facts and figures in 10 countries where cuts were imposed but also provide case studies to show what those cuts have meant for individual public sector workers.

EPSU has made considerable progress in bringing together trade union representatives from across Europe in two social care multinationals - Orpea and Korian. Company networks are being built in both organisations while steps have already been taken in Orpea towards setting up a European works council, with the first meeting of the Special Negotiating Body taking place on 25 April. Both companies are French-owned and have expanded rapidly in recent years with subsidiaries now operating in several European countries.

The European Trade Union Institute has published an updated analysis of the treatment of social issues in the European Semester - the process of economic policy coordination. This reveals, for example, the extent to which the country-specific recommendations address the question of collective bargaining, with the European institutions calling for reforms in many countries, with the accent on decentralisation of bargaining despite the lack of evidence that this produces any economic benefits.

On 29 April EPSU signed a landmark agreement with the French-based Korian social care multinational to set up a European works council (EWC). The agreement comes two years after EPSU took the initiative to bring together affiliates that organise in the company to form a network with a view to establishing an EWC. EPSU believes this is an important step in improving information and consultation in the company and sets the standard for other multinationals in the fast-growing social care sector.

(April 2017) The International Labour Organisation has issued new guidelines for multinational enterprises. The revision has added to the longstanding ILO declaration by adding principles addressing specific decent work issues related to social security, forced labour, transition from the informal to the formal economy, wages, access to remedy and compensation of victims. The principles have been agreed with employers, trade unions and governments and set out responsibilities for public authorities.

(May 2017) Trade unions representing prison workers across Europe met in Brussels on 10 May to discuss a range of issues relating to continuing austerity, collective bargaining and trade union rights. Key issues that emerged during the meeting included the increase in violence against prison staff, problems of understaffing and developing issues around digitalisation and, in some countries, radicalisation of inmates. The meeting was part of a two-year project run by EPSU with the next meeting in December focusing on childcare workers.

(May 2017) Trade union reps from subsidiaries of the social care multinational Orpea came together in Brussels on 4-5 May to discuss common problems and how to improve coordination and potentially initiate moves to setting up a European works council. Participants debated the pressure of increased workloads and the role of profit-seeking multinationals in providing social care.

(March 2017) A policy brief from the European Trade Union Institute examines the role of European works councils (EWCs) in restructuring. It finds that not only is there a problem ensuring that existing EWCs play a full role in the information and consultation process but that a significant number of major restructuring are carried out where there are no EWCs. The briefing highlights the need for better rights for EWCs as well as for a stronger role for trade unoins.

(October 2016) A new study from the ETUI trade union research insititute argues that the EU Takeover Bids Directive needs to be revised, as it does not provide an adequate level of workers’ rights in its current form.The report includes case studies of takeovers as well as analyses of national legal frameworks regulating takeovers and of transversal issues related to takeovers.

IPSO, the main union representing staff at the European Central Bank (ECB) has published the results of a survey of employees revealing around two-thirds of workers had concerns about the ECB policy on pay, inflation and interest rates. Widely reported in the media, the union says that it was not just unhappiness about the 4% pay increase awarded to ECB employees (less than half the current inflation rate in Germany) but also the bank’s reliance on interest rises as a tool to control inflation. IPSO’s message to staff said that the ECB policy of wage moderation was in its view biased against

Using figures from the Eurostat statistics agency, the European Trade Union Confederation (ETUC) shows that the price of the most basic food stuffs is still rising up to seven times faster than wages. The price of olive oil is 75% higher than it was in January 2021, while there have been substantial increases in the price of potatoes (53%), eggs (37%) and butter (27%). By contrast, the ETUC shows that nominal wages have increased by 11% in the EU and 10% in the Euro area over the last three years. The confederation has also challenged the International Monetary Fund over its analysis of wages