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HR Exchange Forum July 7th 2004 Royal Holloway University of London

HR Exchange Forum July 7th 2004 Royal Holloway University of London. Developing an HR Strategy to Drive the Business. Carole Marshall Business Solutions. What’s New in Europe ?. Quick review of what’s happening in EU countries Andrew Strathdee. EU. Working Time

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HR Exchange Forum July 7th 2004 Royal Holloway University of London

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  1. HR Exchange ForumJuly 7th 2004Royal Holloway University of London

  2. Developing an HR Strategy to Drive the Business Carole Marshall Business Solutions

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

  4. EU • Working Time • Further to the Consultation raised last time: • (Removal of 48 hour opt out, Extensions by means of collective agreement and introduction of “inactive on-call time”) • Social Partners have 9 months to reach agreement, if no agreement, formal revision of Working Time Directive. • Issues – • Objections from UK • Impact of failure of French 35 hour week • Accession governments want to retain flexibility to attract new companies to their countries.

  5. EU • Equal Opportunity Monitoring • Commission examining reasons why EO has not been made lawful by majority of states • Main Barrier appears to be perceived issues with Data Protection Legislation • EU argues that this is not valid as it does not refer to “identified or identifiable individuals”, so DP law does not apply • Also argues processing is legal for carrying out obligations re discrimination etc.

  6. EU • EU Services Directive Proposed • Services businesses in one state may be allowed to provide these services from a base in another, or to set up operations , allowing staff free flow. • Remove procedures for TCN’s to return home whilst applying for work permits.

  7. EU • EU Works Council Directive 1994 • Promised consultation on review has begun • Points to consider: • How can EWC’s reach “full potential”? • What is role of social Partners? • What should EU level action be? • New countries are implementing (see country items)

  8. EU • Maternity and Annual Leave ruling at ECJ • Case of woman who completed maternity leave, but refused permission to take annual leave on return as shut down had taken place during maternity leave. • Ruling – Employee should be able to take annual leave outside shutdown period

  9. Austria • Unemployment rate currently 4.2% • Recent industrial settlements set at 2.2% from 1st May

  10. Belgium • Unemployment rate currently 8.6% • Action on Health and Safety – the “Pharaon” scheme to be implemented by 2006: • Legislation (17 different) replaced by single Act • Introduce universal open-source metrics • Negotiation on accident prevention methods • Improve cooperation by clarifying responsibilities esp. contactors • Accident prevention incentive scheme for SME’s with Insurers.

  11. Cyprus • Has implemented European Works Council Regulations • Unemployment currently 4.2% • Nothing further to report

  12. Czech Republic • Implemented Works Council Directive • Current unemployment rate 8.4% • Nothing further to report

  13. Denmark • Unemployment Rate 6.0% • Collective bargaining round concluded • 80% of employees covered (100% public, 60% private) • 3 year agreement increases min wage by DKK2.25 ph in each year • Apprentice rates increase by 4.5% a year • Premium rates for O/T etc increased by 3.0% pa

  14. Denmark • Pensions (Third tier) • Contribution rates rise by 0.9% pa for white collar to max of 10.8%, 1/3rd employee paid • Sick Pay • Full pay period, where agreed extended by 2 weeks • Overtime after industrial action • Work to catch up for two weeks receives no premium

  15. Denmark • Maternity/Paternity/ Parental leave pay • Full pay agreements now 4 weeks before and fourteen after, 2 weeks for fathers • From 1st July, additional 6 weeks parental leave in immediate succession to maternity leave must be permitted, for either parent, paid in full up to DKK120 ph. • Sectoral Fund to finance it.

  16. Denmark • New law to allow employees to keep stock options if dismissed, or resign and claim constructive dismissal.

  17. Estonia • Unemployment rate currently11.1% • Amendments to Working and Rest Time Act and Holidays Act amended to bring in line with EU Directive

  18. Estonia • Estonia plans to achieve EU objective to reach the total employment rate of 67% and employment rate among women to 57% by 2005. • By 2010 the objective is 70% and 60%. (In 2001, the total employment rate in the EU was 64% and that of women – 54.9%. In Estonia the rates were 61.1% and 57.3%) • Improvement programmes – Introduction of • Occupational Health Scheme • Lifelong Learning Programme • Work quality and encouraging “Active Aging!”

  19. Finland • Unemployment currently 9.1% • New working Life programme to boost productivity (Tykes) • Target to combat ageing population and shrinking workforce • Tools – career development, workplace relations and employee well being • Investment of €25m, 50% from industry

  20. France • Unemployment currently 9.4% • National Minimum Wage to increase by 3.7% compared to 2% from the index as political decision • 35 Hour week • All Party working group denounces 35 hours week as anti-competitive and “Deleterious to working conditions” • Has cost €10 billion to public finances • Does not propose repeal, but that the 2003 amendment to permit greater flexibility from collective agreements be extended

  21. France • Private bill introduced to extend negotiating period for settling disputes on redundancy with Government support, extending current suspension of Social Modernisation Law from July 2004 to sometime in 2005.

  22. Germany • Unemployment currently 9.8% • New Apprentice Law Introduced • All companies with 10 or more employees must provide 1 three year apprenticeship for each 15 workers, or pay training levy • Effective Autumn 2004 • Big employers aim to use this to train Eastern European workers saving money on the levy

  23. Germany • Pay negotiations in Banking underway with unions seeking 4%, but employers resisting

  24. Greece • Unemployment currently c 9.3% • Won Euro2004! • Nothing else to report

  25. Hungary • Unemployment currently 5.9% • Has implemented European Works Council Regulations • Problem with implementation of Working Time Directive • Collective agreements can reduce continuous daily rest period from 11 to 8 hours without compensatory time off

  26. Ireland • Unemployment currently 4.5% • Last year pay movement for Blue collar was 6.9% including an increase in hours worked of 1.5% (5.3% basic) • White collar and managerial 4.3% • Electrical Contracting agreement settled at 89cents ph (approx 5%) to set the pace.

  27. Italy • Unemployment currently 8.5% • State statistics show pay increased by 2.1% in 2003 compared with inflation at 2.7% • Sectoral differences – public services at 3.6%! • Following abandonment of national incomes policy, Unions have set up pay-setting committee, with external specialists invited to participate, meets shortly – watch this space

  28. Latvia • Unemployment currently 10.6% • Has implemented Works Council Directive • Recruitment • Nodarbinātības valsts aģentūra izsludina konkursu uz vakanto Informācijas tehnoloģiju departamenta direktora vietu.Sīkāka informācija par vakanci sadaļā par mums>vakances

  29. Lithuania • Unemployment currently 11.5% • Has implemented the Works Council Directive • May 2004 – 16500 vacancies registered, 13300 permanent. Compared to May 2003 demand increased 7.1 %. • From beginning of 2004, 41500 vacancies for permanent and 12400 thousand vacancies for temps.  • But Job seekers declined about 14 %. (gone abroad?) • Dept of Employment offer service to get jobs abroad!

  30. Netherlands • Unemployment currently 4.9% • Reform of pensions and long term disability beset by disagreement • Government wishes to implement more stringent plan that agreed with social partners • If disagreement continues, Unions will pull out of pay freeze deal (2004 and 5)

  31. Norway • Unemployment currently 4.3% • Nothing further to report

  32. Poland • Current unemployment18.9% - worst in Europe. • Programme to “rationalise” social expenditure • Pre-pension allowances available to redundant workers, females aged 50 with 30 years employment, males aged 55 with 35 years • Retirement ages 60 F, 65 M • Pre-pension limits to be raised to 56 F and 61 M with 25 years service (allowance equal to 60% of OAP)

  33. Portugal • Unemployment currently 6.6% • Governments “Social Contract” in jeopardy • Objective higher productivity , more & better paid jobs • Problems with the tools – collective bargaining reform, social security reform, investment all remain victim to disbelief in ability to deliver • Issues with Foreign companies pulling out due to lack of economic progress and cheaper labour available in East

  34. Russia • Good economic news • Economy grew at rate of 8% in first quarter 2004 • Trade surplus announced of $24.3Billion in first four months. • Nothing further to report

  35. Slovakia • Current unemployment 16.4% • Have implemented Works Council Directive • Nothing further to report – information still not available in English!

  36. Slovenia • Unemployment currently 6.4% • Have implemented Works Council Directive • Developing strategic employment policy • Reduce unemployment • Develop SME’s • Increase and protect employability • Educational and training development • Building employment institutions • Develop the Regions

  37. Spain • Unemployment currently 11.1% • New Government putting in proposals • Extend working lives by scrapping early retirement incentives • Raise minimum wage from €460 to €600 over 4 years • Crack down on temporary employment contracts • Reduce workplace accidents • Improve prospects for women, disabled and immigrants

  38. Spain • Major problem with number of local and Foreign companies pulling out due to lack of economic progress and cheaper labour available in East – estimate 10% of jobs will go in next 5 years, plus Spanish offshoring to Morocco and Argentina • Major problem with volume of immigrants from retirees to low grade workers, now 5% of population (registered) with unknown number unregistered - 45% increase in 2001/2 and continuing, 66% from outside EU – Latin America and Africa.

  39. Sweden • Unemployment currently 6.7% • Still problems with increasing redundancies and cutbacks as economic problems persist • Earnings rose by 3.4% in 2003, compared to inflation of 1.3% • Labour market actions on training , equal opportunities etc being applied

  40. South Africa • No Major changes due • Concentration on the same issues as affect other developing countries • Poverty • Unemployment – development of SME’s • Education and Training – Major programme • Social Equity

  41. Switzerland • Two Referendums • Rejected proposal to cut taxes, increase VAT and increase retirement age for women from 64 to 65. • Next referendum in September on introduction of statutory minimum maternity leave period of 14 weeks

  42. Coffee

  43. The Phone as a Learning and Development Medium Hedda Bird Managing Director 3C Associates

  44. Round Robin

  45. Any Other Business?

  46. Lunch

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