Wednesday, July 31, 2013

Emerging trends

The short-time working programme in Germany, known as ‘Kurzarbeit’, is supposed to ensure that companies across all sectors keep workers employed in times of crisis or low demand by reducing working hours and consequently wage costs. The Federal Employment Agency provides funding for short-time working based on business cycle and economic reasons, providing that certain conditions are met. The agency tops up reduced wages by a certain percentage and subsidises social security contributions on short-time wages by 50 per cent (up to 100 per cent during qualification programmes and after seven months). The programme existed before the crisis, but was extended because of it. The incentives to encourage employers to retain workers by reducing working hours instead of firing them were originally due to expire in 2010-end. According to the German government, the scheme has proved itself during the economic crisis by keeping unemployment lower than in many of the country’s trading partners.

Organising union activities in transnational firms
Between 2007 and 2008, Romania’s Free Trade Union Federation of Commerce (FSLC) carried out activities in companies operating in Romania, with the support of other trade organisations. FSLC concentrated on organising employees in transnational companies. The main companies targeted were Metro Cash & Carry, Carrefour and Billa-Rewe. As a result, FSLC and the newly established Metro union ‘Solidaritatea’ signed a collective agreement in April 2008 for Metro Cash and Carry.

The agreement improved working conditions and wages for the employees at Metro. An information and consultation forum for social dialogue at Metro Romania was also established, and the Romanian employees won a seat on Metro’s European works council. The Metro collective agreement gave a 9.5 per cent increase in wages, a loyalty bonus after five years of employment, and a 10 per cent bonus for work on Saturdays and Sundays. It also provides three paid days each month for union representatives, and stipulates that employers have an obligation to focus on improving working conditions. Click here to read more...

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