There are many big European Union issues at the moment. The Treaty of Nice in 2000 called for a deeper and wider debate about the future of the European Union and this is now happening. A special body – the European Convention – has been set up to examine thinking about the EU’s structure, institutional framework and objectives. The Convention’s report will be discussed at the Intergovernmental Conference (IGC) in 2004. This will have important implications for labour markets, industrial relations and workers’ rights. In essence, the debate centres on the extent to which the EU should attempt to act as one decision-making body on important issues, such as defence and foreign policy.
One big issue is the Charter of Fundamental Rights of the European Union which brings together in a single document the existing body of human rights recognised by the EU. The charter encompasses many areas, including the right to collective bargaining and collective action and the right to fair and just working conditions. The ICG will be deciding whether the Charter should become legally binding. If this happens, European citizens would be able to invoke these rights in national courts and the European Court of Justice (ECJ). It would represent a significant extension of worker rights for some countries with lower propensity to employment regulation than others.
The Convention is also looking at the EU’s future involvement in social matters. This is a difficult area because of the tension between the EU’s economic and social objectives. Tension is particularly evident in the ongoing debate surrounding possible links between EU employment, productivity and living standards. The EU’s high average unemployment rate is commonly attributed to labour market regulation, although unemployment rates differ markedly between member states with some strongly regulated economies performing relatively well. Pressure to further de-regulate labour markets in major EU member states, notably France and Germany where unemployment remains high, is, however, tempered by the relatively strong productivity performance of these countries. A working group is also looking at the way countries vote on (and veto) social policy issues and also the involvement of trades unions in the legislative process.
Different European countries are looking at proposals to implement various aspects of the Anti-Discrimination Framework Directive. The Directive requires EU member states to prohibit discrimination on grounds of sexual orientation and religion or belief (by December 2003) and disability discrimination and age (by December 2006). There is a separate EC Race Discrimination Directive which calls for a broader definition of indirect race discrimination.
The European Commission will be looking again at European level regulation of data protection. It has launched a second formal consultation of social partners on improving the protection of workers’ personal data throughout the EU and aims to have a simpler set of rules, particularly on monitoring and surveillance.
Another area of legislation under review is the Working Time Directive’s opt-out agreements, which let employees work longer if they wish. The Commission has indicated that it would like to remove this provision.
One big area of concern for employers in Europe is labour costs. The EU statistical office (Eurostat) has recently published its regular Community Labour Costs survey. Costs vary enormously throughout the Union. In the year 2000, which the survey relates to, total costs were highest in Denmark and Germany, almost three times as high as in Portugal. Wages and salaries accounted for the highest percentage of total costs in Denmark and Ireland and the lowest in Sweden. Eurostat has also issued information on labour costs in 11 states which will join the EU. This information can be found on the Europa website www.europe.eu.int
The European Parliament has approved the Council’s text on a proposed Directive to regulate institutions providing occupational retirement pensions. The legislation will not directly affect existing national pension systems, but will allow mobile workers to take their pensions with them and multinational companies to pool various existing pension schemes into one fund. This is due to be approved this year and will come into force in 2005. However, across Europe, many pension schemes are in grave difficulties and companies are changing the benefits to employees due to insufficient funds to meet pension obligations.
EAPM update
The Estonian Association for Personnel Development (PARE) has expressed an interest in membership of the EAPM and is likely to make a formal application at the next Executive Committee meeting in June.
Italy will be taking over the Presidency of the EAPM at the end of the Congress in June. AIDP nominated Lucio Toninelli, a member of the Congress organising team and international delegate of AIDP, as their proposed candidate for President and this was accepted by the Executive Committee. Mr Toninelli is an experienced international HR professional with a senior HR role within IBM. At the same time, the Secretariat will pass for four years from CIPD to DGFP of Germany.
AIDP has been working very hard on the planning of the 21st EAPM Congress which will take place in Rome from 25–27 June. The EAPM website (www.eapm.org) is continually updated with speakers as they are confirmed and it is possible to register on-line. One particularly interesting initiative is the Young Talents’ project in which 40 young people from 20 EAPM countries are participating. The participants are working in groups on projects relating to the seminars and will be contributing to all sessions at the Congress. The EAPM Executive Committee has been very impressed by this innovative project and the enthusiasm and professionalism of the contributors, and it is hoped that the network which is developing will continue beyond the Congress.
AEDIPE, the Spanish association, has started working on the 22nd EAPM Congress to take place from 25–27 May 2005 in Seville.
EAPM members are participating in a survey on resourcing issues to benchmark practices across Europe. The objectives of this project are:
- To enable national organisations to strengthen their position and offer additional services to members
- To add value to professional members through services which support, but do not compete with, existing national activities
- To increase EAPM credibility as the European HR umbrella association and raise brand awareness.
- To generate additional means to develop further activities and presence.
Individually, member associations are cooperating through bilateral meetings and attendance at national conferences.
