Minutes Madrid 20070917

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EMCEF Training for EWC Coordinators Madrid 17 – 19 Sep 2007


Monday, 16.9. (morning)
Objectives of the seminar
  - EWC co-ordinators: learn to know each other
  - EMCEF motion/Istanbul
  - Trade union involvement in EWC
  - Change of experiences – learning from each other (restructuring)
  - EWC composition and internal co-operation
  - Follow-up, intranet help, information exchange

Agenda
Monday
   - Name game
   - Emcef guidelines for ewc cooperation
   - Involvement of co-ordinators in ewc:
Tuesday
   - explaining experiences of ewc practice (3 teams)
   - 1st issue: company restructuring (mergers, acquisitions, relocation)
   - 2nd issue: i&c – how to improve? Achievements, problems, barriers
   - 3rd issue: renegotiation of agreements, negotiation capacities (IFA, codes, joint texts
      etc.) and role of ewc coordinators
Wednesday
   - internal networking, cooperation/communication, share of information
   - good internal cooperation: role of coordinators
   - emcef role in supporting ewc coordinators


Project
VS/2006/0662 DG EMPL funding
“Training seminar for EWC representatives on how to handle company changes”
2005 rejected, reintroduced (supporting “trade union” structures not applicable),

Why coordinators?
Smaller federations with few mnc‟s don‟t need coordinators
Bigger unions: need for coordination
Other reasons: trade union officers might complement employee reps interests
Formal position: ewc invite an expert, budget, must be included in agreement
Role of Coordinator: provide emcef with information, deliver coordination of trade union
activities, support coherence
180 ewc in emcef – coordinators support coherence amongst ewcs
                                                                                                2

Discussion
   - List of companies without an ewc?
   - Matti: “sleeping ewcs” – role of coordintar to “wake them up”
   - Wolfgang M: „problem für gute koordination ist unterschiedliche aufstellung der
     gewerkschaften, gewerkschaften untereinander sind in manchen ländern zerstritten“
   - Wolfgang G.: (Angestelltengewerkschaft, Chemieföderation): EWC in large
     companies in Austria. Task: supporting a trade union approach/Gewerkschaftszugang
     stärken
   - What is the relationship between trade union officers and ewc reps who are paid for by
     the company

List of EMCEF coordinators
First list approx. 5 years ago: approx. 120 persons. Email contact – very little reply
    - Need to cleanup this list
    - 2006 training seminars: role of coordinators, motion on coordinators role, emcef
         expectations of coordinators
    - March 2007: Emcef ewc committee (yellow list) agreed list of coordinators (blue list)
    - Result: 72 appointed coordinators (covering 115 companies), still 60 companies
         without coordinators
    - Ewc committee: will try to find coordinators in companies without coordinators in
         order to cover all 180 companies with EWCs
    - Corrections: information should send to emcef or national coordinators
    - Matti: National coordination approach: own coordination of ewc work in Finland in
         order to improve efficiencies
116 companies are coordinated (72 coordinators) (see graph in peters presentation page 7)
72 EWCs have not yet coordinators


Role of EWC coordinators
   - Seminars at the beginning of 2006 in bad münder
   - Result: Motion on ewc coordinator‟s role, adopted at the June general assembly in
      Istanbul
   - Madrid: 18 coordinators; Bratislava: 22, Krakow: 25
   - Presentation of the text of the motion: again evaluation on Wednesday

Motion text:
         o Aim & justification: need for coordination, added value of information and
             consultation
         o Role of EMCEF secretariat: continuity and coherence
         o Role of EMCEF ewc committee: 25 members, representing emcef member
             unions, 2 meetings a year
         o Role of ewc coordinators: list endorsed by executive, available on the intranet,
             at least once a year reports to secretariat, coaching role, integrating role, expert
             assistance, follow developments and
         o New EWCs: 260 companies still without ewc, updating the list as a continuous
             tasks. Identify 24 priority companies (of them 15-20 already selected). Three
                                                                                           3

            training seminars in 2008 with 8 companies each seminar (2 reps plus
            coordinators – around 25 persons per seminar). Aim: having 24 new EWCs by
            2009. EMCEF role: inform affiliate on SNB composition, organise written
            demands
          o Respond to transnational restructuring: 1/3 involved in restructuring/merger
            experience (2002-2004) . 1st merger/acquisition, 2nd wave of internal
            restructuring. Anticipate restructuring. Restructuring is a test for information
            and consultation. Support for anticipate change, full transparency in the
            exchange of information and actions undertaken (for members/unions not
            directly involved in the process/action)

Emcef context
        o 130 affiliated trade unions from 35 countries
        o Congress: next congress in Prague, June 2008
        o Executive committee: 50-60 persons, meetings once a year
        o Presidium: 4 times a year
        o 4 committees (until ad-hoc structure, since 2004 permanent bodies, 2 meetings
           a year): Collective Bargaining, Social Dialogue, industrial policy, EWC)
        o Secretariat: GS Reinhard Reibsch, 3 political secretaries (2 vacancies at the
           moment!), 3 staff members (walter, marina, isodor

EWC committee
  - most important function: develop strategies (e.g. SE statute, transnational agreements)
  - monitor information and consultation in ewcs
  - new EWC agreements
  - Integration of representatives not involved yet in ewc practice
  - Organise trade union coordination
  - Follow political developments, opportunities, revision of directives (EWC, SE
     involvement)
  - Each meeting: secretariat report of all committee activities (also on the intranet)


EWC Activities of EMCEF
  - Bad Münder: guidelines, role of coordinators (Jan – Apr 2006)
  - Valencia (November 2006): Gender, restructuring (different interests of different
     worker groups in restructuring operations (permanent, temporary, young, older etc.)
  - Updating list of coordinators
  - Seminars September 2007
  - New project application: establish new EWCs (form 430, 253 without EWC):
     Questionnaire survey addressing 2 persons in each company; research workshop with
     experts end of Feb 2008 in Berlin – identify solutions for developing strategies,
     written demands to establish SNBs, training seminars in September, final conference
     including participants from companies not taking part in the project
  - New motion/action plan: priorities for next four years: each year concentration one
     priority (2008: new EWCs; 2009: joint project with management representatives in
     EWCs – window of opportunity, but only positions of trade unions, stimulate
                                                                                                    4

      expressions of interests of employer organisation on added value of EWCs; 2010:
      negotiation of agreements/renogiation including SEs; 2011: conference with EWC
      chairs and coordinators
  -   Horizontal aspects: further integration of members, restructuring, gender aspects


Afternoon discussion
  -   role of coordinators: national or European interest representation/coordination
  -   competition of sites etc.


First round: company / ewc experience

Information on the background of the companies and EWCs
COMPANY                           Company and EWC information
              COORDINATOR /
              employee
              representative
Bridgestone   Jesus Delgado       Chair of the employee members of the Bridgestone EWC
                                  Japanese company
                                  1998 bridgestone bought firestone = Bridgestone - Firestone
                                  2002: firestone dissapeared in Europe = only Bridgestone
                                  6 plants with 12,200 employees in EU, research centre in rome
                                  corporate centre in Brussels, tyres, wires. Main sites: Italy, Turkey,
                                  Spain (biggest warehouses), Germany, Poland, France, Belgium
                                  New production in Hungary, Poland. In Poland no trade unions, in
                                  Hungary they don’t work yet
                                  Nokia also involved with some shares
                                  Unions suggesting EWC already in 1992. No negotiations until
                                  1996. Voluntary Agreement signed in Brussels 1997. Two
                                  renegotiations: 2002 and 2007.
                                  Restructuring: warehouse restructuring, relocation of centres
                                  EWC: 30 members, 2 meetings per year
Repsol        Montserrat          Oil extraction, healt – interests in Latin America
                                  Repsol is new experience for Montserrat
                                  European Works Council or „Forum for Employees“ since mid 90s.
                                  Unions are interested in World Works council development
                                  Behaviour Problem: CSR problems in Latin America
Johnson &     Montserrat          1996, now new renogiation (3rd)
Johnson       (member)            Paternalistic company culture
                                  No representatives from new member states
                                  Problem: information yes but no consultation; language problems
                                  (not all speak English), closures and shutdowns, relocation to
                                  outside Europe, China
                                  European Shared Service Centre in Budapest
                                                                                                 5



Huhtamäki   Dietmar (GBR)         See also Markku’s information
                                  Plastic packaging, strong competition from low cost countries.
                                  Centralised corporate culture, strong shareholder value orientation
                                  (EBIT 15%). Investments are based on profitability and good
                                  contacts to Finland.
                                  Close connection between sales & production.
                                  Introduction of new software connecting all European sites
                                  Groups Works Council
                                  Needs: 3 collective bargaining agreements in 3 different sites
Novartis    Roland                Anmerkung: Kauf von Hexal – Unternehmen hat neue Dimension
                                  bekommen (neue Sparte). EWC mainly has an alibi-function, no real
                                  political work, symbolic, it is necessary to become offensive
                                  Information in the list is not correct: new colleague is responsible
                                  Kauf von Hexal hat Unternehmen in Deutschland sehr stark
                                  verändert
Adidas      Roland                Adidas: management is cooperation with trade unions
(Coty)      (supervisory board)   EWC does not work because UK and FR are not cooperating. It
                                  seems that there is no interest to participate in EWC practice
                                  EWC chairwomen is not able to invite reps from UK and FR
                                  Need: develop trade union contacts in France and UK at the sector
                                  level (perhaps textile)
Sigma       Peter vd Put          Paint (marine etc.) production. Will be taken over by PPG (EWC but
Kalon                             no coordinator).
                                  16 countries (BE, CZ, FR, PL, NL, UK)
                                  Agreement 2006
                                  Trade Union coordination: example FR: 3 places for France but 5
                                  trade union
Orion       Leena                 Medical company, 3,000 employees (2,500 in Finland), 8-10 other
(Medical)                         countries. From 5 to 2 production companies. Economic stable.
                                  Phases of job losses and expension.
                                  Framework agreement recently
                                  EWC 2004 is rather minimalistic and there is a need to negotiate it.


Fortum      Matti                 Two historic strands: Rebuilding energy sector in Finland after WW
                                  II: state owned company. Petro-chemical company set up between
                                  Finnish and Russian government. Merger of two companies and
                                  established Fortum few years ago: Dealing with anything of energy.
                                  Old EWC was a bad experience – new approach
                                  “Fortum Nurdem” – cooperation of all Nordic unions in Forum.
                                  Developing joint strategy for EU level activitites and demands
                                  regarding EWC practice and politics.
                                  Unions plan to renew the agreement, signed in 2005
                                  Extra training for trade union members of the EWC
                                  Problems: information flows between local trade unions and ewc
                                  members; coordination of EWC communication and international
                                  trade unions; language problems (Swedish not spoken by Finnish
                                  members)
                                                                                          6



Kemira        Annemarje    Agreement 1996, renewed agreement 2006
                           Negotiation of a framework agreement recently
                           Petrochemicals, Annemarje only recently overtook European
                           issues, before that national coordination
                           Good company culture. In Finland several companies – good
                           coordination.
Huhtamäki     Markku       EWC 2000
                           Very Finnish company
                           Approx. 6,500 employees
                           In Finland 1,000. 2,500 DE, 800 UK, 500 FR, IT 300, NL, 300, ES
                           200, CZ 200, NO
Metsetissue   Markku       EWC 1998. Based on big co-operatives in forestry. 5 paper mills in
                           Finland and one in Uruguay.
                           Belongs to the same cooperative as M-Real. Founded already in
                              th
                           19 Century
                           1,000 in Finland 1,000 in Germany, 500 in Poland, 600 in Sweden,
                           500 Slovakia
M-Real        Markku       Belongs to the
                           EWC: Fist 1995, renegotiated in 2003. Finland, Sweden and other
                           European countries. One of the best agreements in Finland
                           (permanent secretary = trade union).
                           Strategy: to be a different type of company
                           Follow-up agreements on the agreement every year.
                           Ca. 10,000 employees (2006: 1,000 dismissals). Cooperation is
                           paying restructuring processes – on the private market it might not
                           survive
                           Problems: Solidarity
Total         Wolfgang M   Mid 90s establishment of EWC at ELF Oil (German initiative).
                           TOTAL overtook ELF – no structures at the European level –
                           another initiative to establish an EWC which was formed in 2001
                           with 45 members, 12 member strong liaison office in Paris.
                           Commission of 19 members focussing on CSR issues.
                           84,000 employees in 332 companies in Europe, 25 EU countries.
                           Nearly 6,000 employees in Germany in ca. 20 companies
                           Coordinators role: wolfgang mainly involved in coordination works
                           councils in Germany. Europe is difficult (strongly dominated by
                           French influence/public influence)
                           Need: Cooperation of trade unions
Sanofi        Wolfgang M   Ownership: 2/3 LOreal, 1/3 ELF
Aventis                    Acquisition of Hoechst.
                           Coordination of German works councils from Berlin and Frankfurt
                           European Coordination is a problem – exchange information
                                                                                               7



Ardagh        Jens             Rexem experience : IGM didn’t took part in the supervisory board,
(dec 05)                       parity membership though only 1,800. Rexem still exists – plastics
                               division. Very good resources/structures
                               Jens is Member of the supervisory board
                               Ardagh Glass has bought Rexem glass division in June 2007. 3,500
                               employees plus 1,900 employee (Resem) in Europe. Family owned
                               business – five managing directors for Ardagh Glass Germany.
                               Investment decisions of the past are renegotiated – very uncertain
                               future of the company in Germany.
                               26/27 September meeting with management on EWC issues
                               2/7 production sites in Germany: surviving crises with strong
                               concessions of employees.
                               Uncertain future of employee representations at transnational level
General       Martin           Since 2002 IG BCE is trying to bring together GE works councils
Electric                       and establish a groups works council, GE strongly opposed this
GE plastics                    attempts. 5 years of negotiations. GE interests: symbolic body, no
                               real consultation. Consolidation of German works council
GE health
                               networking. Good experience of trade union practice. Many
care
                               consultants are working with GE management.
GE
                               Restructuring, mergers, acquisitions in a very quick tempo – huge
specialty
                               challenge for EWCs.
mat
ENI           Dario            EWC 1995 established. Art. 13 EWC. Special features: signed by
                               the trade union federation. Elections of delegates every 3 years,
                               several negotiations and improvements. Good practice in
                               information and consultation
                               Remark: 3 federations in italy in the chemical sector have to decide
                               who will play the role of the coordinator
Marazzi       Angelo           Angelo followed Dario as the coordinator.
(96)                           EWC 1997 (one of the oldest EWCs in Italy), renegotiated recently.
                               Largest tiles producer in the world (IT, ES – China, India, US etc.)
                               More than 4,000 workers. ES: employees are not organised by the
                               chemical workers union but another
                               Small EWC: 14 people, active EWC (e.g. working group on health)
Prysmian      Angelo           Formerly pirelli, production of tyres, ten years ago wire section was
(pirelli)                      sold to US company. Prysmian was established. Successful
                               company development
                               7,500 workers, wires production for telephone production (IT, DE,
                               FR)
                               EWC 2006 established. First meeting 2007, Angelo is an expert to
                               the EWC.
Cabot         Jiri             EWC ca. 10 years. US-amerikanisches Unternehmen. 1,200
                               mitarbeiter in EU (GB, NL, DE, FR, BE, CZ). EWC resources are ok
                               but decisions are made outside Europe. Industrial relations are quite
                               ok.
CES           Jiri             Unternehmenskäufe in RO, BG, PL, SK. Öffentliches Unternehmen,
                               10% privatisiert. EWC was established after investments in other
                               Eastern European Countries.
Novartis      Wolfgang Greif   Austrian EWC law, Austrian colleague in steering –comittee,
                               wolfgang was an expert
                               Needs: emcef should support a strong EWC coordination,
                               improvement of trade union strategies is needed; 1/3 new members
                                                                                                8

                                 from new EU member states, still a symbolic EWC
OMV           Wolfgang Greif     Biggest oil-producting company in Austria, ca. 4,000 employees one
                                 of the biggest companies in Austria, 2005 bought biggest Romanian
                                 oil-company (Petrom). Other activities in Eastern Europe
                                 EWC since 1996 – renegotioan of agreement – significant
                                 improvements
 Cytec        Wolfgang Greif     us-amerik. Company, in several EU-countries, niche-products,
                                 special colours; mostly small companies (Europe: ca. 2,000
                                 employees, single companies not more than 300 each). Initiative
                                 EWC: 2006 by management
                                 Needs: employee representatives with little experience
                                 Restructuring: no large restructuring plans expected



Second round: Involvement

Company information: Table
COMPANY                        Preperation     Meeting       Follow       Select        Inbetween
              COORDINATOR
                                meeting          With          up       committee       meetings
              / employee
                                             Managment      meeting      meeting
              representative

Bridgestone   Jesus Delgado         -              -            -            -              -

Repsol        Montserrat                  Would be now problem – no experience yet

Johnson &     Montserrat            X              -            ?            ?             ?
Johnson       (member)

Huhtamäki     Dietmar
(GBR)

Novartis      Roland               Es gibt „Unternehmensbeauftragten“ – no information on
                                                       involvement

Adidas        Roland                      Strong need to make EWC business going
(Coty)        (supervisory
              board)

Sigma         Peter vd Put          X              -            -            x             X
Kalon

Orion         Leena            No meetings yet but no obstacle to attend the meetings (but also
(Medical)04                                            no guarantees)

Fortum        Matti                 X              -            x            x             X

Kemira        Annemarje                   No experience yet but it should be possible

Huhtamäki     Markku                           Getting information is not so easy

Metsa         Markku
Tissue

M Real        Markku            2 annual meetings and 4 working group meetings per year – it is
                                 not possible to attend these. Good information basis on EWC
                                                            matters
                                                                                                    9


Total         Wolfgang M                  Coordination is carried out by French companies

Sanofi        Wolfgang M           s.o.
aventis

Ardagh        Jens                New agreement: trade union rep participation not foreseen
(dec 05)

General       Martin
Electric
GE plastics
GE health
care
GE
specialty
mat

ENI           Dario                 ?                ?            ?           ?                ?

Marazzi       Angelo            Only experts foreseen in the agreement, participation is not that
(96)                                                         easy

Prisma        Angelo            Only experts foreseen in the agreement, participation is not that
(pirelli)                                                    easy

Cabot         Jiri                  x                x            x            x               x

CES           Jiri                  ?                ?            ?           ?                ?

Novartis      Wolfgang Greif   Not foreseen In agreement, participation in employee meetings no
                                                           problem

OMV           Wolfgang Greif            Trade union participation no problem, but problem is
                                                     multiunionism (3 unions)

Cytec         Wolfgang Greif   too new experience, in preparatory meetings no problems so far –
                                                           let’s see
                                                                                                  10


Tuesday, 17.9.
Presentation EV on restructuring
Peter introduction
    - Background EU internal market creation: EWC directive
    - Joint project of EMCEF and Employers on restructuring – November big conference
        on restructuring in Lisbon
    - Picture: airplane/world turning moving

Experience of restructuring
 COMPANY                             Experience of Change
               COORDINATOR /
               employee
               representative
 Bridgestone   Jesus Delgado         Positive changes: expansion of market share with positive impact
                                     on employment
                                    Abandoning of products, overproduction of production
                                     Restructuring in operational networks – internal reorganisation,
                                     movement of workers to other parts of the company
                                     Warehouses: relying more on contract labour
                                     Former Firestone plants: situation remains stable, opening new
                                     plants, increase of employment in new member states
                                     Market share is increasing
   Repsol      Montserrat            High investments in latin America which might have an impact on
                                    Europe

 Johnson &     Montserrat            Big restructuring programme 2006 – 2010
  Johnson      (member)              Relocation of pharmaceutical plants in Europe to low-cost countries,
                                    concentration of plants,
                                     Outsourcing of services (India, South Africa)
                                     Employment effects: big
 Huhtamäki     Dietmar (GBR)         Seit 2002
                                    Companies which were bought have not been restructured yet
                                     Change of internal cooperation of local companies, improving
                                     internal value chain processes
                                     Slight job creation: 15% more employment creation since three
                                     years with increase in productivity at the same time
  Novartis     Roland                Purchase of Hexal will change the structure much. Hexal has many
                                     production sites
   Adidas      Roland                Since 2004 member of the supervisory board
   (Coty)      (supervisory board)   Worldwide 16,000 employees
                                    Germany: Headquarter 2,800
                                     Logistic: 300 employees
                                     Special production: 400 employees
                                     Processes of change:
                                     Salomon group was sold (clothing production) 2005
                                     Reebook was bought in 2006
                                     Employment effects: job creation in Germany approx. 300 in
                                     administrative
                                                                                           11

  Sigma       Peter vd Put   Takeover of small factories, expansion in
  Kalon                      Poland: From 1,000 to 8,000 people
                            New

   Orion      Leena          Different experiences of job losses
 (Medical)
  Fortum      Matti          Typical example of restructuring in the energy sector:
                            Good old days have changed
                             Classical company organisation has changed (Central Headquarter,
                             production, distribution, administration)
                             New chairman: only aim is to raise the shareholder value (from 8 to
                             12 Euros/share, today 32 Euro)
                             Massive change in organisational structures: Creation of Business
                             Units (4) and structuring of sub-companies according to Business
                             Unit
                             Consequence: negotiation framework of trade union has changed
                             (much more different entities)
  Kemira      Annemarje      Reduction of state owned shares (today still 16%)
                            Workforce reduction: some outsourcing but in general no big
                             troubles
Huhtamäki     Markku         Tradition of Food industry, pharmaceutical, packaging
                              st
                            1 : Dividing the company in different sector/divisions (food,
                             pharmaceutical, sweet)
                              nd
                             2 : sold out of divisions (food – Unilever, pharmaceutical –
                             Schering)
                              rd
                             3 only packaging industry is left now but only one production plant
                             Concentration on packaging industry
                             Employment effects: 2,000 jobs lost
                             Schering has bought pharmaceutical plants, now Schering has
                             been sold
                             General view: positive development in the packaging sector
Metsetissue   Markku         Is not part of the core business and should be sold out
                            Special feature of ownership (co-operative of owners)


  M-Real      Markku         Framework conditions (rising energy costs, falling wood costs) for
                            doing business have worsened
                             Decision to close paper mills in Central Euorpe and Sweden
                             Finland: Closure of production lines
                             Dismissals
                                                                                            12



   Total      Wolfgang M   Minol (9,800) von ELF übernommen (reduction of employees)
                           Many social plans with ELF
                           ELF was bought by TOTAL (which before has bought FINA)
                           From 2,000 to 870 employees
                           Oil raffineries: 800 employees
                           Staff reduction in administration: Framework Agreement for Berlin
                           Shell: Concentration of administration and relocation to Poland
                           Total has to integrate new companies, new fuel stations etc.
                           ongoing restructuring
                           Social responsible restructuring: early retirement (55 and over),
                           possibility to start own business (fuel stations)
                           All instruments regarding restructuring have been deployed
                           Location/job security agreements, 40h week, agency labour, 12h
                           shift work
                           Contract labour: no minimum wage (6,80 contract labour – 11,00
                           Euro employment)
 Sanofi       Wolfgang M
 Aventis
  Ardagh      Jens         Restructuring of glass industry in Germany, Flaschenpfand – over
 (dec 05)                  capacity
                          Restructuring processes in former phases
                           Today: overheads, double administration staff
 General      Martin       GE very heterogeneous structure, group structures
  Electric                 Corporate strategy: Buying and selling of companies
GE plastics                4-5 business divisions
GE health                  No possibility to influence plant decisions at the local level
   care
    GE
 specialty
    mat
     
   ENI        Dario        Internationalisation of ENI with beginning of 2000
                          Downsizing of workforce – in some areas workforce expansion
                           Concentration of core business – expansion in these areas.
                           Downsizing of other business areas.
                           Expansion: Oil production, acquisition of a French company with
                           3,000 employees
                           Structure of the Holding company has changed – autonomous
                           divisions
                           Daily experience of change/reorganisation
 Marazzi      Angelo       Business expansion in both companies, positive shareholder value
  (96)                     development
                          Consolidation of companies, outsourcing, change of employment –
                           recruitment of agency labour
                           Cost reduction – by workforce reduction or alternative plan
                           Workers mobility
                                                                                            13



Prysmian     Angelo           Big challenges: logistics and warehouses, threats of workplace
 (pirelli)                    reduction and relocation
                             Business unit structures: management fashion, cyclus of
                              organisational change
                              Negative results of former restructuring processes (quality
                              problems)
 Cabot       Jiri             Economic situation is well, supplier to Russia and local automotive
                              companies
  CES        Jiri             Privatisation, Internationalisation of company structures,
                              investments in other Central European Countries, EWC
                              establishment
Novartis     Wolfgang Greif   Novartis = Sandoz and Ciba Geigy (merger of two EWCs)
                              Deficit: no overview of company developments as a whole
                              Hexal = entering generica business
                              Other business areas were sold (e.g. food) - no/very late
                              information of EWC
                              Outsourcing, selling out business areas
  ÖMV        Wolfgang Greif   Mid-90s more than 8,000 employees – today 4,000 employees
                              Privatisation (from 100% to 20%), selling of not-core business,
                              concentration of oil, fuel stations
                              Strong trade union structures
                              Massive investments in Central and Eastern Europe (competition
                              with MOL), 2006 acquisition of Petrom (12,000 employees) in
                              Romania
                              Future: Buying MOL?, being sold to a bigger multinational
                              companies
 Cytec       Wolfgang Greif   No relevant restructuring
                                                                                           14


Working Groups
1: Angelo, Dario, Montserrat, Jesus (Translation)
2: Wolfgang Greif, Jiri, Roland, Dietmar (German)
3. Jens, Peter, Markku, Jens (English)
4. Matti, Annemarje, Wolfgang (English)


Tasks:
   - EWC as a tool to handle restructuring?

Types of restructuring:
   - Mergers & Acquisitions (Hexal, PPG, ÖMV, Pirelli-demerger)
   - Expansions (Bridgestone, Sigma Kalon, Orion)
   - Downsizing (Ardagh, Johnson&Johnson, Kemira-Outsourcing)
   - Changes in strategy (Fortum, OMV, CEZ, GE, Huhtamäki, Novartis, Addidas-
     Solomon)
   - Relocation (Bridgestone, Johnson&Johnson, Pirelli)


Concrete questionsHow the EWC
  - How the EWC anticipates these changes and supports preparation
  - How EWC influences restructuring operations when they happen and contributes to
     problem solving



Working group reports to the plenary session

Introductory Question: “Do you need different instruments/approaches:
   Answer: 9 No, 5 Yes”

   -   (Dario) anticipate change: it is necessary to have the capacity to analyse structuring
       change
   -   Risk and opportunity analyses before restructuring changes are taking place: therefore
       capacity is a necessary condition for dealing with different types of restructuring
   -   In practice: different problems need different instruments
   -   (Martin): strategy is similar: transparency of local information, overcoming local
       interests, developing common perspectives
   -   (Jens): important is to better use the existing instruments
   -   (Wolfgang): common toolbox with different tools in it. Toolbox = EMCEF, EWC
   -   (Matti): one common strategy – different tactics
                                                                                         15

Anticipation
   - different approaches depending on sectoral/company frameworks, different national
       frameworks
   - Mergers/Acquisitions: anticipation is not possible because

Report WG 1: Angelo, Dario, Montserrat, Jesus (Jesus)
   - what can the EWC do confronted with restructuring?
   - Different enterprise systems: Every enterprise has a different structure, internal
       organisations, management styles
   - Clear and transparent information, dialogue between management and EWC member
   - Training for EWC members in order to better assess the situation of the company
   - Conclusion: Trust, Competences, Training in order to develop a strategy
   - Methodological approach:
   - Conclusions: Training, Knowledge



Report WG 2: Wolfgang Greif, Jiri, Roland, Dietmar (German)
   - different restructuring situations but one approach
   - Basis: Katalog der Informations und Konsultationsrichtlinie
   - Praxis der Information und Konsultation
   - Einfordern der minimalen Informations- und Konsultationsrechte
   - EBR muss ernst genommen werden, EWC as a player in the process taken seriously
       (based on negotiation power = membership in supervisory boards)
   - Wie schafft es der EBR, eine wichtige Rolle zu spielen?
   - Beispiel General Motors: Public Campaigning, offensive
   - It is important to be realistic: restructuring has massive effects on employement and
       labour conditions; competition of locations
   - EWC are representing national employee interests: overcoming national interests and
       develop joint strategies
   - Wishes: EWCs are not enough, further tools are necessary: European framework for
       co-determination, European Social Plans, negotiating frameworks, strengthening of
       trade

Report WG 3. Jens, Peter, Markku, (English)
   - problems: co-operation in EWCs, internal diversity (union member and no-union
       members) not enough transparency, not enough unity
   - more unity is needed, also more information from national works councils
   - exchange of information
   - Problem: most people are thinking locally
   - Need: Find a way to think and work globally, overcome cultural divisions
   - Need: Right information at the right time, obligations are not followed
   - Information, consultation, role of steering, role of unions = part of the toolbox
   - Problem: competition of locations – solidarity is needed
                                                                                                16



Report WG 4. Matti, Annemarje, Wolfgang (English)
   - EWC has no negotiation role
   - Members don‟t have the same resources
   - Competition of locations
   - Positive factors: have a structure for creating exchange
   - EWC for itself is nothing – trade union involvement, sidelining activities of unions are
       important
   - Each EWC should be surrounded by trade union networks
   - Exchange of information from various national resources – EWC has the role to gather
       this information and exchange it with other members
   - TU platform: has a role for anticipation, preparation
   - EMCEF role: co-ordinate company platforms
   - Each country should co-ordinate EWC information and send it to EMCEF
   - Resources: Funding – should also include support for dealing with restructuring
       operations
   - Abstimmungsprozess auch mit anderen Branchengewerkschaften (ETUC)

Quetion: “Are you happy with the way the EWC is handling restructuring?”
   - No!

“What can trade union coordinators do to improve the situation of handling
restructuring?”
    - (Dario): EWC must play an active participating role – its not playing this role at this
       morning
    - Who is dealing with restructuring: Unions, works councils
    - Develop employee decision making body at the transnational level – role of unions
    - What is the relationship between trade unions and ewc members?
    - Welfare measures, European social plans at the transnational level


Afternoon session: Information and consultation
Peter:
   - Information / Consultation: decides whether or anticipation is possible
   - Anticipate: ok, but you also need to have the means

Question: What can a trade union coordinator do to improve information/consultation?

(Wolfgang): no examples
(Annemarje): Example for framework
(Matti): role of the coordinator: cooperation of Nordic meeting of trade unions (develop joint
strategies)
                                                                                             17

(Dario): Directive is vague on information and consultation rights. More concerte rules in SE-
Directives, Information&Consultation Directives. Practical level: depends very much on the
relationship with the management.
Role of coordinator: disseminate good practice, influence renegotiation of new agreements
(Jesus): positive experience – threat of closure of a plant. Joint strategy to improve the
profitability. Situation often is illustrated through gestures.
(Wolfgang): Auslagerung aus dem Bereich des Bankensektors – Versuch, Einfluss zu nehmen.
Instrumente
(Angelo): 20,000 outsourcing project worldwide, centralisation of offices, Unilever EWC
members from Italy. Dialogue and convincing
(Roland): Information is not the problem – but how to deal with this information? There is no
structure to deal with this information
(Jens): “Kanibalismus unter Betriebsräte” – Rolle der Betreuer. Schulungen für europäische
Betriebsräte.
(Peter):
(Peter) Role of the coordinator
Preparation meeting:
    - organise an exchange of national experience
    - reformulate national comments into transnational issues/questions for the plenary
        meeting = improves information
    - distinguish on the list of questions: some questions might be given to the management,
        some questions might be raised only at the plenary meeting
    - ask certain types of standard information, e.g. regarding in order to follow up
        company developments

General meetings
Evaluation meetings

(Dario) Role of the coordinator
   - participation in meetings is not always the case
   - in most EWC an expert can attend the meetings
   - problem of competition of locations = interest conflicts, also at national level there are
        conflicts.
   - Role of national trade unions have to play an important role in finding a common
        platform
   - Coordinators should share the experiences
(Matti):
   - Coach SNBs, inform them about good practice agreements
   - Informing all unions that are involved in the EWC
   - Support democratic selection process for nominating EWC delegates (NMS)
   - Coordinator is not a decision maker but develop frameworks and support structures
(Peter):
   - supporting/helping the EWC in handling things, not directly involved EWCs
                                                                                          18

(Markku):
    - basic material for all EWC members despite the unions they are in, joint website,
        resources and instruments
(Jesus):
    - coordinator = coach
    - support efficiency
    - role: observer, following things
    - need for training




Wednesday, 18.9.
Walter presents the intranet
  - database on companies, ewc coordinators
  - ewc committee minutes, documents etc.
  - Other committee information
  - List of ewc agreements, companies negotiating an ewc
  - Collective bargaining agreements, in English and some other languages
  - Information on the trace project, ewc database reports of peter
  - Access for trade union officers only – not available for consultants and others

Comments/Discussion:
  - (Angelo): information on certain sectors? Information on basic economic data of
     individual sectors (i.e. glass industry)
  - EWC specific activities on energy, tyres. Specific sector information also in industrial
     policy
  - Paper: Draft Joint Paper on „Biomass‟, second draft paper
  - Social Dialogue Information: Chemical Industry (Restructuring, training), Electricity
     (involving also EPSU), Mining and Extracting
  - (Markku): there is special information on economic data on finnish companies
  - (Wolfgang Greif): it might be useful to have some more information on the companies;
     role of the co-ordinators?
  - (Wolfgang): there is a need of updated information, concentrated and documents in
     order to get information quickly; web-master responsibilities are important; perhaps
     there should be the possibility to upload documents and information by national
     coordinators
  - (Peter): documents which might be made available in any case: current agreements,
     tables of employee structures and ewc representatives‟ names and contact details
  - (Dario): there should be information on reference trade unions involved in the ewc,
     concentrated company information should be included in the website (links), the
     information sources on individual sectors are very different (e.g. many information on
     energy and sectors with social dialogue)
                                                                                             19

Comments/Discussion:
  - Last agreement (all available languages, English translation)
  - Table with number of employees per country
  - Reference trade unions


Presentation of the Finnish web site for ewc’s
Joint site of the council of industrial unions from three different federations
Many resources for ewc members and people interested in ewc issues in FI
Monthly meetings and exchange of information on ewcs, companies etc.
Organisation of training courses
Information on:
    - Multinational companies (company dossiers)
    - Ewc dossiers
    - Coordinators and experts
    - List of ewc agreements
    - Register of ewc members

Suggestion: link on emcef website


Other comments/information
   - Peter/Netherlands: cooperation of the three main unions on ewc, exchange of
      information on high level, now they started to establish networking, contact details at
      company level
   - Other initiatives: IG BCE will improve information, attempts to improve national
      coordination in Austria
   - Spain: agreement with CC.OO on EWC delegate appointment, but no joint national
      coordination yet – they work on that
   - Italy: 3 main federations in the chemical sector are quite cooperative. There also exists
      an agreement on ewc delegation procedures. It would be good to have one central
      reference centre on ewc issues, information
   - One central reference point/resource centre: Finnish practice is the ideal – in other
      countries it might not so easy to implement
   - Dario: he‟s the one to be contacted for all Italy but not able to speak for all three trade
      unions, Italian unions jointl have to decide on ewc coordinators – that‟s not always
      easy
                                                                                       20


Final round: Objectives of the seminar, evaluation

Presentation Peter: Information on current activities

ETUC activities on improving employee participation
  - ETUC working group on employee participation, Reiner Hoffmann responsible for
     employee participation, after Sevilla a task force on EWC was established (including
     ETUI, SDA) – soon a newsletter will be published, campaign for the revision of EWC
     directive. Next meeting 20/09 in Brussel
  - SE directive: 8th October report of Commission on need to revise/updating the
     Directive
  - Norbert‟s work: many SEs don‟t have works councils, are not functioning (UFO, shelf
     SEs) = letter to Spidla/McCreevy. Demand: Registration of Shelf-SEs
  - Further information updates: Political information on EWC debate/revision will be
     regularly delivered by EMCEF to coordinators

Demands of unions for Revision of Directive:
  - definition of consultation, especially on extraordinary circumstances
  - information adapted to needs
  - training for EWC members, competence development
  - 2 annual meetings
  - Recognising trade union role
  - Increase compliance rate
  - Include representatives from new member states

EWC Revision: Current Development
  - April 2004 first social partner consultation
  - Reaction of Employers: Study good practice and research
  - 31 March 2005: Communication of the Commission (Second Consultation round)
  - Feb 2006: Cottigny Report: Critique of second phase of consultation – proper
     consultation is necessary (art. 138 Treaty)
  - EP Resolutions
         o 15 March: Resolution on restructuring & employment
         o 6 July: GM closure Portugal
         o 29 November: VW Vorst-Belgium
  - 13 Sep 2006: Opinion of the EU Economic and Social Committee
         o 3 points: Harmonising information and consultation provisions in Diretives
             2001/86, 2002/14, 2003/72; recognition of trade union members as members of
             SNB, adjustment of maximum number of SNB (at the moment: 18)
  - Technical revision of EWC (20.11.2006 = 2006/109/EC) on SNB member adjustment
  - Court cases: Beiersdorf (F) 13/10 (no information of EWC on restructuring), British
     Airways (B) 6/12
                                                                                           21

   -   Gaz de France (F) 21.11.2006: Consultation rights in merger cases, Gaz de France-
       Suze merger, verdict confirmed in appeal: no further steps in merger before
       information and consultation obligations have been fullfilled


Discussion: What info and support is needed from EMCEF EWC secretariat?
Dario: Four directions are important:
    - ensuring a rotation/succession of coordinator, coaching of new coordinators.
       Continuity in the work of coordinator
    - representing of national unions in EWCs – make trade union presence easier in EWC
       (identifying national union contacts for EWC members)
    - support coordinators with good practice examples, assistance in negotiation of new
       agreements, information exchange
    - supporting a reflection on the role of EWC (beyond the revision process): normative
       question: Which role EWC should play in corporate industrial relations now and in the
       future? Which are strategic objectives of EMCEF regarding information/consultation,
       transnational bargaining/negotiations (experience of framework agreements)
Peter: many things are done already (document good practice, new project on priority
companies without EWC)
It might be helpful to draw up lists of EWC members and information on backgrounds etc.

Wolfgang M.:
   - national framework conditions of EWC delegation, involvement of trade unions and
      role of EWCs are very diverse. Therefore national coordination of EWC involvement
      and trade union involvement is necessary.
   - Support individual EWC members by EWC secretariat EMCEF: updated information
      on revision, court cases (ETUI-REHS project on court cases), effects of the Service
      Directive, cases of good practice
   - Updated list of EWC agreements, table workforce numbersemployee members

Wolfgang G.:
   - Updated information on revision is very useful, EMCEF has better access to
      information and developments as national trade union
   - Documentation of good practice is very important: innovative examples of dealing
      with restructuring and other issues: examples from good practice in renegotiated
      agreements, transnational bargaining (mobility agreements, IT)
   - Check of EWC/SNB members: trade union or employers affiliations? “Independent”
      members, information on new member states trade union structures etc.
   - EWC and trade unions: in NMS without any employee interest representation
      structures, social dialogue the role of EWCs are very important for structures (“hidden
      agenda”), example UNI-Finance

Other suggestions:
   - SDA approach might be interesting for many EWCs, it might be interesting to invite
       reps from SDA for one of the next training (Dario)
   - Information on funding programmes for EWC‟s
                                                                                              22

   -    List of companies which are covered by the Directive but have not yet established an
        EWC
   -    Peter: there will be additional lists: EWCs without coordinators, companies without
        EWCs (new project objectives). By the end of the year a list of 250 companies should
        exist. National coordinators should name 2 names for each company – who will be
        addressed by a questionnaire survey in the context of the next project
   -    Dietmar: EMCEF website might include an calendar of EWC relevant events and
        space for other national activities. It is important that many national partners/EWC
        will regular send information


Evaluation of the training

Good:
   -    exchange of experience with other colleagues
   -    flow of information is important
   -    discussions opened the horizon a bit, getting known to each other
   -    information on other solutions (Finland)
   -    new experience, many new information
   -    some ideas on basic tasks, objective etc. of an EWC coordinator
   -    possibility to develop contacts
   -    information of the seminar might be useful for national training activities as well
   -    meeting new people
   -    training seminar improves the motivation for working with EWC
   -    building contacts
   -    speak together
   -    illustrates different backgrounds of coordinators
   -    exchange of critical analyses
   -    learning about different “philosophies” of coordination
   -    training team
   -    atmosphere

Negative:
   - better define objectives, targets of the training
   - define aims of various debates
   - information of the first day was very basic – for some participants not really new
   - one should have better information before the training, concrete expectations
   - mostly information exchange, development of critical capacities has to be developed
   - participants should get more information on what to prepare for the training
   - Working group methodology (more time for the groups and more time for reporting on
       results)
   - Better define objectives of group works, restructuring, clear tasks for working groups,
       methodology to present restructuring information (scenario building, case examples,
       role of coordinators)
                                                                                        23




Suggestions:
   - make results available for all participants
   - composition of the group, individual backgrounds was not clear to some participants.
       next time: better information on composition of the group, national backgrounds

				
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