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ADAPT International Anticipating change through dialogue
UNI Europa Commerce Sector
European Works Councils
Prepared by David Tarren
February 2011 1
www.adaptinternational.eu
Introduction
This project has been supported financially by the European Commission and aims to generate greater
focus among UNI Europa affiliates about the role and work of EWCs within the European commerce sector.
As part of the project, a series of surveys is being undertaken throughout 2010 and the early part of 2011 of
trade union representatives within the European commerce sector. Throughout the period of this project a
total of three updates have been produced, using the latest information from affiliates contained in the
questionnaires. This report is the final report in the project which contains information drawn from all
returned surveys and the discussions and conclusions from the workshops held in Helsingor, Berlin and
Paris.
When examining the data below it must be borne in mind that precisely because the information came from
a limited number of companies, the findings may not be representative of the entire European commerce
sector. However this report does highlight reoccurring themes and issues, arising from the questionnaire
data and discussions at the project’s European seminars.
To support the policy development of UNI and its affiliates, important issues raised by the research are
highlighted with a * symbol throughout the text of this document and these issues are further elaborated at
the end as Interim Recommendations.
Table 1: Countries of affiliates that responded to the survey
Country No. Country No. Norway 2 Sweden 2 Germany 1 Italy 26 France 7 Spain 15 Finland 1 Netherlands 1 Austria 8 Estonia 4 Belgium 43 Turkey 2 Latvia 1 Romania 1 TOTAL 114
Profile of respondents
All the respondents are employed within the European commerce sector, are trade union representatives,
and almost 80 per cent () are representatives on their company’s European Works Council. All respondents
are employed in workplaces ranging in size from a workforce of 17 (JYSK) to one of 1900 employees (IKEA).
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There were 114 responses in total, with the largest share coming from Belgium, followed by Italy. UNI
Commerce affiliates from newer EU member states responded to the questionnaire, offering UNI an insight
into employment relations and changes within the sector in Eastern Europe.
While respondents were employed across a variety of companies, as the table below shows the majority of
respondents are employed in Metro, followed by IKEA. The gender of respondents was almost evenly split,
with 50.33 per cent female against 49.77 male, and while there was a distribution across a number of
occupations two thirds of those who indicated their occupation are employed as Salespeople within the
sector.
Table 2: Companies from which affiliates responded
Country No. Country No.
Auchan /Alcampo 3 JYSK 1 Aldi 7 Kesko 1 Belgian Sky Shops 1 Leroy Merlin (Adeo Spa) 1 Blokker 1 Lidl 1 Leen Bakker 2 Mavedro 1 Bart Smit 4 Metro / Makro 27 Brico 1 Norbert Dentressangle 1 Carrefour 8 Optimera as (Saint Gobain) 1 Colruyt 5 Praktiker 1 Conway 1 Rewe 1 De Bruycker 1 Rimi Latvia 1 Delhaize 2 Rimi Eesti Foods 1 Easydis (Casino) 2 Sports Direct 1 PPR/ FNAC 4 Socodis 1 H&M 4 Unilever 1 Hewlett Packard 4 Zara Inditex 2 IDB Yoko 1 IKEA 20 TOTAL 114
As the charts below show, two‐thirds of respondents are employed within the retail part of the commerce
sector (66%), and the majority are employed on a full time and permanent basis.
Charts 1 and 2: Type of contract and the sub‐sector of respondents
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Type of contract Full time
Part time
Temp
Sub‐sector
Retail
Wholesale
On a number of occasions there were distinctions between responses in the wholesale and retail sectors.
However it is difficult to determine if this is due to the particular characteristics of these two sub sectors, or
simply a distortion created by the responses due to the concentration of particular companies or of
responses from particular member states.
Workforce characteristics
While agency staff are employed within the sector, their numbers vary enormously ‐ in one case up to a
quarter of the local workforce are employed as agency staff. There are variations too in the trade union
density of the sector, ranging from 3 to 100 per cent workplace trade union density.
Table 3: Scope of collective agreements
Issue % Issue % Pay 10 VET 9 Pensions 37 Work Organisation 30 Holidays 40 Staffing 13 Sickness 22
As the table above shows, the overwhelming number of respondents stated that they are covered by a
collective agreement ‐ almost 80 per cent of responses indicated that their employer has established a
formal structure for the purposes of information and consultation and in all cases this covers pay. In
addition this body covers other issues and these are set out in the table opposite as a percentage of those
respondents who included this information.
Support
The vast majority of representatives said that they received good support from their national trade union
and the vast majority of respondents stated that they had heard of UNI and that they would like the
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federation to increase its support for ‘transnational co‐ordination’ more in the future. This suggests that
there is greater scope for the federation to offer a co‐ordinating role for EWCs within the commerce sector.
European Works Councils
Almost three quarters of respondents are employed within
companies that have EWCs (74 per cent) and the majority of
these are EWC representatives. The survey asked a number of
questions about the EWC in their company and the results are
summarised in this section. The age of EWCs ranged from 16
years at H&M (the oldest agreement in the responses) to two
years at Unilever. According to the EWC Directive all EWCs
must meet at least once a year and this is the case in just over
a quarter according to the responses. However nearly three‐
quarters (74%) of EWCs in the sector meet twice annually, which is an improvement on the original
Directive. While the number of representatives upon
EWCs range from 7 (KESKO) to 36 (HP) the average
number is 25 representatives.
Companies without an EWC ALDI LIDL Belgian Sky Shops Mavedro Blokker Metro Bart Smit Rimi Leen Bakker Socodis Colruyt Sports Direct Conway ZARA Inditex De Bruycker IDB Yoko TOTAL 16
Companies with an EWC Auchan / Alcampo JYSK Brico Kesko Carrefour Leroy Merlin Delhaize Makro / Metro PPR / FNAC Norbert Dentressangle H&M Unilever Hewlett Packard IKEA TOTAL 14
Table 4: Companies employing respondents with and without European Works Councils
A total of 65 per cent of respondents stated that they had received training for their role on the EWC.
However this does not suggest that all of those respondents who replied positively to this question belong
to an EWC that contains provisions for training. In fact a number of representatives stated that they had
received training on a national basis for their work on their domestic Works Council, rather than specific
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EWC training. This suggests that a significant number of trade union EWC representatives do not receive
training for this role. The content of individual training programmes, as set out in the table below,
highlights that although financial aspects of a company’s performance are an issue for discussion at EWC
meetings, this topic is covered in training in only just over 50 per cent of cases.
Table 5: Topics of training received by EWC representatives in the Commerce sector
Topic % Finance 53 Communications 56 Special Meetings 31 Definitions of I&C 76 Legal rights 60 Procedures for breaches 17 Strategy generally 56 Handling the Media ‐ Languages 21
The number of days permitted per year for training for commerce sector EWC representatives ranges from
2 to 14 days and in the majority of cases (73%) trade unions organise this training. But in a very large
number of cases (64%) the trade unions also pay for this training. In all cases those who said they received
training were released from work with pay to attend and the right to training, without loss of pay, is now
contained within the EWC recast Directive 2009/38.
Interestingly most EWC respondents from within the wholesale sub‐sector stated that they received help
and support from experts, but the figure was just below 50 per cent for those employed in retail. The vast
majority of EWCs have a Select Committee, however there were subtle differences between those
employed in the wholesale and retail sub‐sectors (50 per cent and 100 per cent respectively). As far as
employer representatives upon EWCs are concerned, HR personnel tend to fulfil this role on behalf of the
employer. The majority of EWC provide language interpretation at the main EWC meetings, but less than
half of EWC representatives stated that they receive documentation in different languages.
Activity
Surprisingly, when asked questions about the activity of their EWC, less than a quarter of respondents (21%)
stated that their EWC had issued a public statement and slightly less said that their EWC had co‐ordinated
trade union collective action. These two findings suggest that there is scope to increase the activity of
EWCs in the sector and, combined with the responses for ‘support’ above, there is an opportunity, and a
need, for UNI to play a higher profile role in this
area.
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Throughout academic literature, one of the issues
raised by researchers is that EWC representatives can
find it difficult to reconcile their ‘European’ role on the
EWC with that of their domestic relationship with
their workplace constituents, and at times
this latter relationship can act to prevent a wider view
being taken at the European level. The initial
results from the surveys suggest that almost two‐
thirds (65%) of EWC representatives within the commerce sector find it difficult to reconcile these two
relationships. Ensuring there is a connection between the national information and consultation process
with that at the European level is now an obligation of EWC representatives, subject to employer support,
contained in the recast EWC Directive*.
Issues raised in EWC % Finance 83 Closures / redundancies 57 Employer’s strategy 93 New technology 34 Capital investments 34 Transfer of work 40 Work organisation 58 Research and development 60 Training 77 Working time 53 Mergers and acquisitions 42 Health and safety 83
Issues discussed in EWC meetings
As the table below shows, when presented with a list of topics most commonly discussed at EWC meetings
and asked to rank them in importance to them, respondents gave a wide range of views. However, the
issues of finance, closures and redundancies and their employer’s strategy were, on the whole, ranked as
more important. Using the data from the topics on which respondents stated they were offered training, it
is possible to suggest that although finance was a key issue for all EWC representatives, only 53 per cent
received training on this issue. This ought to be considered by UNI and its affiliates in terms of changes to
EWC training programmes.
Table 6: Issues discussed at EWC meetings
Rating information and consultation from your employer
Respondents were presented with the definitions of information and consultation as set out in the original
EWC Directive and asked to rate the quality of both information and consultation offered by their employer,
where 1 represents the information and consultation being ‘poor’ and 5 being ‘very good’.
Using the responses it is possible to rate UNI commerce EWC representatives’ perception of the
effectiveness of their employer at undertaking information and consultation and the figures are presented
in the table below.
Table 7: The effectiveness of information and consultation Information Consultation
2.27 (out of 5) 1.63 (out of 5)
The results contained in the table above are average scores assigned by respondents to the quality of
information and consultation within their company. The most startling finding here is that EWC
representatives rate their employer’s ability to provide information so low. This finding suggests that
employers within the commerce sector are not providing trade union representatives with adequate
information*.
Next the survey sought to measure the capacity for EWC representatives to influence the EWC meeting
agenda, to receive the appropriate information from their employer, to understand the information
presented to them and to have time to respond to the employer’s proposal. Surprisingly only slightly over
half (53%) of EWC representatives who responded said that they were able to influence the agenda for the
main EWC meeting. However the research cannot identify in which cases representatives are unable to
influence the agenda purely due to the fact that they do not have a seat on their EWC’s Select Committee,
which in many cases is where the agenda is agreed. In addition over three quarters of respondents stated
that they did not have enough time to respond to employers’ proposals. This is an important finding and
this deficit of influence is one that UNI and its affiliates ought to consider tackling*.
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Perhaps the definitions of information and consultation, as contained within the recast Directive will
provide unions with more scope to increase the time between the point at which employers are required to
present their proposals to the EWC, for the EWC to consider these proposals and for the EWC to formulate a
response. From the survey it is clear that this is an area UNI and its affiliates ought to consider further,
given the opportunities presented by the recast*.
When asked about the issues EWC representatives are consulted on, the answers ranged across a number of
issues. However, according to the survey results, the most common topics for consultation at commerce
sector EWCs are restructuring followed by the organisation of work and closures (same scores).
The survey asked respondents to consider when they have been consulted in the past (Table 7) and to state
whether this process tended to be carried out before or after a decision was made (Chart 3). In less than 10
per cent of cases did respondents state that the EWC was consulted before a decision was made and by far
the overwhelming response was that EWCs were consulted after a decision was made. In a high proportion
of cases the members of commerce EWCs are being consulted on issues after the decision has been taken,
and frequently after the decision has been made public. Again, this tends to suggest a fundamental failure
by employers to undertake the process of consultation in good time, to allow a response to be made prior to
decisions being taken and presents UNI and its affiliates with a challenge*.
Table 8 On which topics are you consulted ?
Topics % Topics %
Restructuring 59 Movement of work 29
Job losses 41 Work organisation 53
Training 41 Closures 53
Finance 41
Chart 3 When is your EWC consulted ?
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Before decision taken After decision taken
Before made public After made public
Overall evaluation of your EWC
The survey then asked respondents to rate the overall effectiveness of their EWC to achieve a number of
things such as provide information, to enable them to express their opinion and as a means to help them
understand their company better. Respondents were asked to award points, on the same basis as before (1
poor, 5 very good) and the overall results are shown in the table below.
Table 9: Rate the effectiveness of your EWC at ...
Please rate the effectiveness of your EWC at: Average score (Out of 5) Allowing you to understand your company (financial position etc) 3.30 As a means to express an opinion 2.52 Offering you a genuine discussions with the company 2.22 Giving you an in depth analysis of company 2.22 For information 2.88 For consultation 1.87 Checking on management information 2.00 Securing greater influence at work 1.60 As a means to influence management decisions 1.40 As a means to implement your trade union policies 1.35
If we take a score of 2.50 as an indication that the EWC is operating adequately, then from the results above
it is possible to conclude that the perception of respondents who answered this question is that they
consider their EWC to have very little capacity for improving the influence of the workforce generally and in
particular to influence management decisions at work. However, as a body to improve the workforce’s
understanding of their company EWCs within the commerce sector, on average, are operating a little more
than adequately. As a means to express an opinion it seems that the EWCs represented in the responses do
generate opportunities for discussion with employer representatives. It will be important for UNI and its
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affiliates to discuss these findings in particular and to introduce plans to strengthen EWCs within the
commerce sector*.
Finally in this section, respondents were asked to rate their knowledge on the new ‘recast’ EWC Directive.
While a number of respondents stated that their knowledge was very good, the majority stated that they
knew very little of the revision and this could be something UNI and its affiliates consider, given the
Commission’s timetable for the transposition of the new legislation*.
Developments in the sector over the last 12 months
This research also seeks to highlight some of the key trends within the European commerce sector
throughout the financial crisis and the final section of the survey asked questions about changes in the last
12 months. Respondents were asked to highlight all the changes they had experienced in their workplace
over the last 12 months and the table below ranks this information in terms of the amount of respondents
highlighted the issue. So for example, the most widely experienced trend in the last 12 months was
recruitment freezes.
Table 10: Changes in your workplace over the last 12 months.
Issue Ranking Increase in workload 1st Increase in stress and violence and work 2nd Job losses 3rd Changes to shop opening: late, night and/ or Sundays 4th Restructuring 5th Recruitment freezes 5th Decrease in working time 6th Increase in the use of agency workers 7th Increase in working time 8th Salary decrease 9th Wage freezes 10th Divestments 11th Shop closures 12th Mergers 13th Collective redundancies 14th
Outsourcing
In recent years there has been a trend within the commerce sector companies to outsource particular areas
of their business and the next section asked respondents to identify those areas currently being outsourced.
According to the responses the most commonly cited areas of the business to be outsourced, in order of
frequency, are security, cleaning and transportation, followed by other less frequently cited areas such as
suppliers placing stock in the shop, I.T, the bakery, check out work, checking stock and the delicatessen.
Table 11: What operations has your company outsourced?
Outsourced operation Rank Security 1st Cleaning 2nd Transportation 3rd Suppliers stocking the shop 4th I.T 5th Bakery 6th Check‐out 7th Checking stock 8th Delicatessen 9th
Other work
Cleaning fridges, Children’s play area, Warehouse work, facility management, part replacement of merchandise, shopping cart collection and dishwashing in restaurant
Conclusions
While it is important not to generalise from this first sample of responses, it is possible to suggest areas
where UNI and its affiliates could consider improving the current situation and these are detailed below as
recommendations. The responses to the questionnaire have demonstrated that EWCs within the
commerce sector are experiencing identical problems and challenges. UNI’s programme of establishing
and supporting EWC co‐ordinators ought to strengthen the existing infrastructure and offer further
opportunities for improving the effectiveness of EWCs to generate a body in the workplace with the
capacity to challenge and influence management decisions.
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Recommendations
∗ EWC Training should support EWC representatives in understanding their role on the EWC and how
they balance the interests of their own local workforce with that of their company as a whole
∗ EWC training programmes should include sessions on how to understand financial documents
∗ It is clear that EWC representatives need more support to ensure their employers provide them with
the right information at the right time and this failure, on behalf of employers, is reducing the
effectiveness of EWCs.
∗ Employers need to give sufficient time for EWC representatives to consider written material, to make
an informed opinion and to respond to the employer’s proposals. The recast Directive may offer
trade unions the opportunity to strengthen this aspect of their EWC’s role.
∗ In many cases EWCs are merely a body in which employee representatives are able to express and
opinion or better understand their company. UNI and its affiliates should consider how to improve
this situation.
∗ There is insufficient knowledge of the recast Directive and, given the timetable for renegotiating
agreements, this should be given attention
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Recommended