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EUROPEAN REVIEW
ISSUE 38 - Page 6
How should
labour law catch up with modern work practice?
We are no strangers in the UK to
part-time work, temp agencies, fixed term and zero hours contracts,
sub-contracting, and self-employment, bogus or otherwise, but for many
other EU members these are recent phenomena. Now the EU Commission
wants to update laws which assume that full-time permanent employment
by one employer is the norm.
The traditional model of
employment assumes permanent, full-time relationships regulated by
labour law, with the contract of employment as the pivot and the
presence of a single entity accountable for the obligations placed upon
employers. However, in countries like Spain and the UK and,
increasingly, throughout the EU, what actually happens in the workplace
belies tradition. According to a recent Commission Green Paper: the
percentage of the EU work force engaged in what is known as ‘atypical
work’ increased from 36% in 2001 to 40% in 2005, part-time employment
has gone up from 13% to 18% in the last 15 years and ‘60% of new jobs
created since 2000 have been part-time’ while 31 million workers are
now counted as self-employed. Although these atypical posts can provide
stepping stones into the economy for marginalised groups, the
Commission says ‘part of the workforce gets trapped in a succession of
short-term, low quality jobs with inadequate social protection leaving
them in a vulnerable position’.
The Green Paper asks a number of questions designed to spark a public
debate but also advances ideas of its own on how to update the law. If
nothing is done the future will resemble that outlined in the ‘Kok
report’ of 2003: ‘a two-tier labour market … divided between
permanently employed "insiders" and "outsiders”’. The outsiders would
include disproportionate numbers of women and ethnic minorities. It
therefore puts forward the ‘flexicurity’ approach where workers are
protected, rather than specific jobs, and life-long learning and
flexible social security provisions enable all to keep up with new
skills so that they can switch employment. Member States must also
co-ordinate social inclusion policies to ensure worker mobility.
Recent rulings from
the European Court of Justice
Seniority
not always its own justification
British trade union Prospect has
claimed victory in a case before the ECJ concerning pay seniority.
Bernadette Cadman was an inspector employed by the Health and Safety
Executive (HSE) for thirteen years when, in 2001, she found out that
her annual pay was £5,000 to £9,000 less than her male
colleagues on the same grade. The HSE accepted that she was doing the
same work as the men but pointed out that they had been employed for
longer and therefore benefited from a seniority award. She argued that
as women were more likely to have a shorter length of service than men,
this was indirect discrimination. The UK Employment Appeal Tribunal
decided that previous ECJ judgments allowed employers to use length of
service as a pay determinant without having to justify it. However the
European court has ruled that, if an employee can show that the job is
not performed any better because a worker has been employed for longer
the employer must provide an objective justification for extra pay.
Prospect is expected to bring about 50 cases before UK courts based on
this judgment.
Vaxholm/Laval case to
be heard
The famous action brought by the
Latvian building company Laval against the Swedish trade union Byggnads
is to be heard by the ECJ early this year. Despite the election of a
centre-right government, Sweden is expected to back the union as a
defence of the principle that Swedish collective agreements apply in
Sweden even if they conflict with other EU principles like free
movement of labour. If the union loses the repercussions would be
severe for the whole system of labour relations in Sweden and the
Nordic countries.