West Thames HR Exchange Club October 7th 2003 Royal Holloway University of London

1. West Thames HR Exchange ClubOctober 7th 2003Royal Holloway University of London

2. Agenda 9.00 Welcome, merger with HR4BIZ, minutes of last meeting • Jacquie Mahoney, CHRP 9.10 Works Councils and the Communications Process • Mary Ahmad, CHRP 9.40 European Legislation - Update • Andrew Strathdee, CHRP 10.15 Coffee Break 10.30 Occupational Health in the Workplace • Melanie Miles, Well Aware Occupational Health Services 11.00 Round Robin – general discussion of current ‘hot topics’ 12.00 Coaching • Lynn Dowding 12.30 Any other business, upcoming seminars and masterclasses, and items for the next meeting 12.45 Lunch

3. European Works Councils and all that! Mary Ahmad Corporate HR Partners Ltd

4. Background • European Works Council Directive adopted in September 1994 and implemented 1996 • UK had not signed up to Social Charter • UK signed up in June 1997 and new Amsterdam Treaty came into force May 1999

5. EWC Directive • Requirements for informing and consulting employees at European level • At least 1000 employees across Member States and at least 150 employees in two or more • Written request from at 100 employees in two or more Member States

6. EWC Directive cont….. • Management refusal to negotiate for six months or no agreement after three years the statutory model comes into effect • Agreements before December 1999 (UK) are exempt from directive • No request and no desire – no EWC

7. EWCs Status October 2002 • European Trade Union Institute (ETUI) figs • 600 companies have set up EWC • 1800 meet threshold requirements • US, UK and German companies 15% each • France 10%

8. UK EWC Situation • Legislation • Valid Request • Special Negotiating Body (SNB) all employees • Company has six months to commence neg. • Three years to conclude written agreement • Complaints to EAT • Penalty up to £75,000 • Confidential information can be withheld • SNB/EWC Members have protection

9. UK EWC Experience • Management view: • Benefits • Improved cross-business co-ordination • Better thought out corporate strategy • Less positive • Bureaucracy to set up and run EWC • Unfulfilled employee expectations

10. UK EWC Experience cont….. • Typically EWC meets twice per year, once soon after financial results • Topics • Top-level company strategy • Operational matters eg new technology • Costs • £150K - £250K per year

11. Information and Consultation of Employees Regulations 2005 • Intent to develop High Performance Workplaces • Head office or principal place of business in Great Britain • Implementation • 150 or more employees March 2005 • 100 – 149 employees March 2007 • 59 – 99 employees March 2008 • Under 50 not affected (97% of UK Companies)

12. Trigger…… • Valid request made by employees • In writing and dated • Supported by 10% of employees • Management iniative • Further requests cannot be made for 3 years • Six months to reach agreement

13. The Agreement • In writing and dated • Cover all employees • Give circumstances in which employees will be informed/consulted • Be signed by employer • Be signed by employee representatives • Approved by 50% of employees – writing/ballot

14. What must be shared • Recent/future business development and economic situation • Structure and future development of employment • Decisions that could lead to substantial changes in work organisation or contractual relations

15. How must consultation take place….. • Appropriate timing method and content • On basis of information provided by management or opinions expressed by representatives • Representatives to meet with relevant levels of management • With a view to reaching agreement • Confidential information can be withheld

16. Issues…. • Disputes on implementation go to Central Arbitration Committee (CAC) • Penalty of up to £75,000 • Employees protected in respect of unfair dismissal • Employees cannot contract out or be contracted out

17. Pre-existing Agreements • Agreements must be • In writing • Cover all employees • Have been approved by employees • Say how consultation will take place • Must be re-negotiated if 40% of workforce want it

18. Anticipated Benefit • Establish trust • Reduced resistance to change • Increase employee morale and motivation • Reduced absenteeism • Lower turnover

19. What should we do now….. • Consider establishing pre-existing agreement • This takes time

20. Where are we now? • Let’s share what we are doing or what we may be thinking about doing.

21. What’s New in Europe ? Quick review of what’s happening in EU countries Andrew Strathdee

22. EU • Membership • New members: • Czech Republic – Referendum approved June • Poland – Referendum approved June • Latvia – Referendum approved September • Estonia – Referendum approved September • Cyprus – No vote planned – accepted entry

23. EU • Works Council Directive • Review of Directive commenced in September • Consultation phase under way requiring any submissions.

24. EU • Pensions • 2nd Stage consultation paper re portabilityof supplementary pension rights in occupational schemes • Aimed at those who change employment to another EU country • Issue, moving requires freezing contributions in current fund and joining new scheme • But major problems will need to be solved

25. EU • EU favours cross-sector collective agreement to address: • Maximum length of qualifying period • Vesting periods • Choice between preservation or transfer • Preservation of preserved rights • Method of calculation of transfer values • Proposal for social partners to act otherwise, legislation.

26. EU • More on Pensions! • More research approved to look at: • Policies to protect and maintain 2nd and 3rd pillar schemes (Occupational and private) • Choice of defined benefit vs defined contribution • Gender dimension (equal retirement ages and actuarial valuations)

27. EU • Working Time • September ECJ Ruling • German case re hospital Doctor Jaeger – is “on call” a rest period? • Ruled that time spent in Hospital on call constitutes “is in its totality, working time, even when doctor is permitted to rest when not required.” • Requires Germany to amend working time legislation • Inmplications EU wide since ruling continued: • This covers when an employee is called upon to remain apart from their family and social environment and has less freedom to manage the time when services not required • Overnight Business Trips?

28. EU • Agency Workers Draft Directive • Draft text has been amended, but still no agreement on the “common position” • Opposition mainly from UK and Germany • Main problem over “qualifying period” before which equal terms have to be granted – UK and Germany holding out for 6 months. • Discussion continues……….

29. EU • Anti-Spam regulations may have unexpected effect in HR and soon - Oct 31st! • HR emails could contravene if an email to a job applicant contains background product literature as an attachment or links to marketing materials, or company slogans!

30. EU • Equality legislation overhaul – consultation paper • New countries requires greater legislative certainty as current law is found in several Directives • Proposal to : • Consolidate into a single text without changing current law • Producing new legal code to consolidate • Recast legislation completely and introduce changes

31. EU • Race Equality • Deadline for transposition into National Law was July 2003 • NO notifications from any Members State have been received to confirm compliance! • Despite well established laws in many states still need to implement new parts on harassment and provision of Discrimination board • New States must include by May 2004 • EU five year campaign to increase awareness

32. Austria • Anti- Discrimination Legislation • Consultation ended September • Transposition of EU Directive due December • Prohibits discrimination on • Sex • Race/ethnic origin • Religion • “world view” • Age • Sexual orientation • Creates Ombudsman and extends role of Commission • Excludes disability, but this is covered by regional legislation

33. Belgium • Educational Leave • Workers entitled to time off for education paid through national fund supported by contributions from State and employers • Receive normal pay up to ceiling, indexed • From September 2003 increased to €1960 from €1920 • Limit of €2500 unindexed for employees over 45 or made redundant

34. Belgium • National Labour Council • Agrees extension of agreement to statefunded early retirement to bridge those aged 56 or over and with 33 years service AND 20 years in nightwork up to normal retirement age. • Extended pay agreement for white collar workers not covered in sector agreements, triggered by Automatic indexation – 2% in April. • Predicted 2% in June 2004, +€22 to the minimum wage and all pay for those covered by the agreement

35. Cyprus • EU has given Cyprus a warning about progress on Anti-discrimination Directive • Must be implemented before entry will be permitted – i.e. by May 2004

36. Denmark • Closed Shop Agreements • Bill to outlaw closed shops failed to gain sufficient parliamentary support • Been part of programme since 2001, introduced 2003 • Postponed due to opposition by one Opposition party which holds balance of power! • Claims closed shop protects Danish workers against cheap labour imports. • Government is embarrassed as currently defending closed shop in two cases at European Court of Human Rights

37. Denmark • Gender Pay Gap persists • Review of Equal Pay shows gender pay gap • Blue collar – 14 – 15% • White Collar 20% • Even after “fair” factors taken into account, gap is 4% and 7%

38. Denmark • Temporary Agency Workers arbitration • Arbitrator found in favour of claim that temps should be paid same as Perms on same work at same company • Action brought by electricians union against employer • Decision was that collective agreement for employer should apply – these were NOT subcontracted staff

39. Estonia • As reported last time, EU continuing to place pressure on Estonia over perceived failure to implement social and employment directives before accession next May • Has only implemented Working Time Directive • Anti-discrimination laws not yet ready • Nothing else to report

40. Finland • Proposed extension of Parental Leave • Proposed that employees who have 6 months service over twelve months will be entitled to partial leave to care for child until end of year 2 of secondary school. (This increases current entitlement and reduces qualification) • Parents may share care but both cannot be off work at same time

41. Finland • Bullying and Harassment • New legislation under H&S legislation introduced in January making employers responsible for preventing • Fivefold increase in cases reported, but blamed on increased awareness rather than increase in harassment.

42. France • Pensions • New law mentioned last time was adopted in July and came into force on 21st August • Minimum Wage • Increased 28th June by 5.3% to €7.19 per hour

43. France • 35 Hour Week • Suggestions that “U” turn possible on 35 hour week and that public holiday be given up! • Only ten sectors have implemented • Small employers have been able to find ways to continue 39 hour week • Employers claim negotiations not worth effort

44. France • Headscarf Ruling! • Ruling on case involving “religious symbols in secular state”! • Female telesales employee allowed to wear Muslim headscarf whilst in non customer facing employment. Transferred to customer facing and was dismissed for refusing to remove headscarf • Found dismissal unfair • She had some customer contact in telesales • Contract included mobility clause permitting transfer to direct customer facing position, so company had partly condoned.

45. Germany • Health Reform Reform Agreed • Current legislation by payroll deduction 50:50 employer / ee • Objectives for legislation are: • Reduce costs and payroll deductions by 1.4% by 2006, funded by increased patient contributions • For proposed changes see next slide • Major objections as employees carry brunt

46. Germany • Proposed changes • Patients to pay 10% of cost, min €5, max €10 • €10 for all doctor/dentist visits • €10 per day inpatient treatment to 28 days up to 2% of income • Employees to pay for sickness benefit and dentures by insurance payroll deduction • Removal of death and birth grants from current state benefits • Increase in “Healthcare efficiency”

47. Germany • Recovery of Company Property • Court ruling permits companies to require return of company property (eg laptops) before notice period ends.

48. Germany • Protection against dismissal legislation • Due January 2004 • Redundancy criteria can only be • Length of service • Age • Number of dependents • Employees agreeing to accept can have ½ years salary for each year of service • New businesses can have fixed four year contracts for first four years (currently 2 years)

49. Greece • Nothing to report

50. Ireland • Redundancy Pay Act • First six months of operation • As a result of increased entitlements, employers have started to treat company ex gratia payments as inclusive of state statutory payment. • (reminder – state entitlement is now 2 weeks per year of service) • National Pay Deal Disputes • Three disputes started…. • Watch this space….