EUROPEAN REVIEW

ISSUE 41 - Page 4

AFTER ACCIDENTS IN ITALIAN WORKPLACES highlighted the poor health and safety record of that country, strikes and demonstrations forced employers and government to take action. In October the crushing of a worker at a DHL transport hub in Bergamo prompted the FILT-CGIL union to call a strike after the company refused to meet them to discuss safety problems. Union spokesperson Marco Sala commented ‘The management has been trying to destroy the strength of the unions in DHL in Bergamo ... DHL has also been cutting corners on safety’. After the action the company agreed to work with the union side and a deal was reached on both safety measures and wages.

EU unions make car deal to manage restructuring

New migrants needed in Germany, Czech Republic

THE EUROPEAN METALWORKERS FEDERATION  have announced a new agreement with employers in the car industry to try to improve the management of change, in particular restructuring which often leads to a loss of jobs. This is no small matter as the sector employs two millon people directly and another 10 million indirectly. It accounts for 3% of the EU economy, exporting  goods worth €60 billion a year and investing €20 billion in research and development, making it the largest private innovator. Growing global competition, the impact of environmental legislation, road safety concerns and the replacement of an ageing, skilled workforce have all contributed to the need for change in the industry. There have been at least three widely publicised cases (Renault, Volkswagen and Delta) in the last few years in which automotive manufacturers did not consult with or inform trade unions sufficiently when a major closure was planned. Now both sides, together with the EU, national and regional governments, have committed to set up a new ‘observatory on change’. This body will keep tabs on best practice in company restructuring especially with regard to increasing skill levels and employability. The EU Commission also promises to keep the industry up to date with the best way to use money from the Research Framework programme, the Structural Funds and the European Globalisation Adjustment Fund. ‘12 million European families depend on the automotive sector for their livelihoods’, said Employment Commissioner Vladimír ·pidla. ‘While the sector faces tough challenges such as increased competition and restructuring, there are also big opportunities. This partnership commits companies, trade unions, governments and regions to act together to better prepare for change and manage it in a proactive way’.

EMPLOYERS IN BOTH GERMANY AND THE CZECH REPUBLIC are complaining of a lack of skilled recruits and seeking to fill the gap with migrants. The Czech government agrees with them and is trying to encourage the immigration of qualified workers. With the departure of Czechs to work abroad since EU entry in 2004, unemployment has declined quickly to 5.3% in mid-2007. The economy also suffers from low worker mobility within the country. These factors have led to a skills shortage particularly in construction and IT; almost 50,000 unfilled vacancies for qualified staff were reported last year. While neighbouring Slovakia and Poland often provide recruits it is more difficult for would-be migrants from further afield because of work permit problems, lack of accommodation and difficulty in obtaining a job while still living abroad. A recent government scheme to fast-track residency applications for skilled employees attracted less than a quarter  of the number for which it was designed. The German government takes a different attitude. Although high-tech companies have around 43,000 vacant posts and it is estimated that an extra 50,000 engineers are required by industry, they have not loosened immigration rules which stayed in place after 2004. According to the president of the IT employers federation Bitkom ‘Some companies have lost entire projects’ and a government study has put the cost of labour shortages to the German economy at €18.5 billion per year. Nonetheless Economy Minister Michael Glos ruled out changes to make it easier to employ foreign workers ‘The next priority is the qualifications of our own workforce’ he maintained.