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EUROPEAN REVIEW

ISSUE 19 - Page 2

 

EU agrees on post deregulation but UK forces the pace

THE EU COUNCIL OF MINISTERS recently adopted a new directive on liberalising postal services in the community. Anxious to open up the usually state-run monopolies to competition, the European Union has gone for a staged introduction which, while not exactly pleasing British trade unions, has been seen as more acceptable than the more gung-ho approach of the UK regulator, Postcomm.The EU competition timetable looks like this: letter delivery for items weighing more than 100g or costing more than three times the price of a standard letter by 2003 (at the same time there is an option to open up all cross-border post); letter delivery for items weighing more than 50g or costing more than two and a half times the price of a standard letter by 2006. Full de-regulation could take place by 2009 if a report to be carried out by the European Commission in 2006 recommends it.

Meanwhile the same question was being discussed in more heated terms in the UK. Postcomm has put forward proposals which are considerably more radical than the EU's. They would start liberalisation in just a few weeks time with bulk deliveries of 4,000 items or more, representing 40% of the market. This would be followed, in 2004, by another 30% and full market de-regulation would be achieved by 2006. The Communication Workers Union maintain that these proposals are far too precipitant While not opposed to change the union said that the Postcomm plans were less controlled, less gradual and more rigid than the European ones. They predict that the uniform tariff (paying the same rate for the same letter wherever you are in the country) and universal service (guaranteed delivery and collection from rural areas) will be watered down under the proposals.

Furthermore, they state that if both the European and the British proposals go ahead 'Postcomm will be in the curious position of allowing overseas postal operators access to the UK market, when the UK Post Office will not be able to compete in a similar manner in Europe'. In an opinion poll conducted by NOP 75% of respondents were against the Post Office having to compete with private companies for letter delivery. Whatever the results of the British negotiations the EU measures will go ahead. Internal Market Commissioner Frits Bolkestein said: 'Implementing the Internal Market for postal services is one of the major structural reforms that Europe needs. The new Postal Services Directive sets out a clear path towards achieving this in a gradual and controlled manner, so that all market players can prepare properly for the changes ahead. I am delighted that the European Parliament and the Council have, on the basis of the Commission's proposal, agreed a way forward which will deliver a modern and dynamic postal sector while making sure everyone in Europe can continue to benefit from a universal postal service'.

At last, new anti-discrimination law clears last EU hurdle

WE REPORTED IN THE European Review last year (issue 15) on the imminent arrival of an EU directive on discrimination at work. This has taken rather longer than we anticipated to become law but with its joint adoption by the Council of Ministers and the European Parliament in April Member States will have to implement it in national laws by 2005.

For the first time it defines sexual harassment as well as direct and indirect discrimination. It also places responsibilities on employers to take preventive action, such as annual equality plans, to discourage sexual harassment and to ensure there is no discrimination on issues such as the return on women to their post after maternity leave. Compensation for employees is made unlimited by the new legislation. Andrew Fielding, a commission spokesman, rejected employers' complaints that they could be penalised by the legislation. 'Smart businesses will not be unduly troubled by this legislation, because they will be taking preventive measures anyway'. On sexual harassment the Employment Commissioner Anna Diamantopoulou commented, 'The general level of awareness of sexual harassment in member states is very poor. Now sexual harassment, absent from most national laws today, will finally have a name'.

Bargaining round-up

THE CURRENT PAY round in the Netherlands has turned nasty with an unprecedented wave of strikes. A disagreement over travelling time in the construction industry has led to 45,000 lost work-days without a settlement and trouble is predicted in the engineering sector. Added to this, the giant electronics firm, Philips suffered a one-day stoppage by 30,000 workers which persuaded it to increase its pay offer from 2.5% to 3.25%. This was enough to secure agreement at Philips although the other disputes were rumbling on at the time of writing.

THE SWEDISH PRINT industry managed to solve its problems more quietly. A 3% pay increase this year will be followed by a 2.5% one next year. On top of this a 12 minute-a-week cut in working time will come in at the same time. The whole deal is estimated by the GFM union to be worth 6.2% over 25 months.

THE BELGIAN government needed to step in after a draft agreement by the social partners on a number of topics, including industrial disputes, was challenged by the ACV-CSC union which complained that it went too far in restricting workers' rights to strike. Labour Minister Laurette Onkelinx added several points of clarification to a voluntary code of practice to be reviewed after a year.

These facts come from IDS Employment Europe - May issue.

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