Ref. Ares(2015)1505834-08/04/2015 DRAFT Summary Minutes Meeting of Directors General for Industrial Relations 21 November 2014 Radisson Blu Hotel Latvija Riga 1. INTRODUCTION AND ADOPTION OF THE AGENDA Mr A. SILVA (Chair) (European Commission - Director - DG Employment, Social Affairs and Inclusion) opened the meeting and welcomed all participants. The Agenda was adopted. 2. APPROVAL OF THE MINUTES OF THE MEETING OF DIRECTORS GENERAL HELD ON 13 JUNE 2014 IN ROME. The minutes, as modified to take into account SE comments, were approved. 3. PRESENTATION OF THE LATVIAN PRESIDENCY'S PRIORITIES IN THE SOCIAL AFFAIRS FIELD Mr I. ALLIKS (Deputy State Secretary of the Latvian Ministry of Welfare) gave an overview of the priorities of the forthcoming Latvian presidency in the field of employment and social affairs. As a top priority, the presidency will bring support to inclusive and sustainable labour market participation, with increased attention to job quality, long term unemployment and the situation for persons with disabilities. Latvia will prepare Council conclusions on inclusive labour markets. It will also discuss the first results of the Youth Guarantee. The presidency will also focus on the mid-term review of the Europe 2020 Strategy. It will continue the strengthening of the social dimension of the EMU. Regarding legislative dossiers, the presidency will carry on with the discussion of the proposals submitted by the Commission, taking into account the results of the EPSCO Council in December 2014. Finally, the presidency will prepare Council conclusions on the new EU Strategic Framework on OHS and on the issue of gender pay gap in pensions. The following events and dates were underlined: EPSCO Council meetings on 9 March 2015 and 18 June 2015 and EPSCO Council Informal Meeting on 21-22 April 2015 in Riga. 1
4. PRESENTATION OF THE COMMISSION REGARDING THE STATE OF PLAY OF THE REVIEW OF THE WORKING TIME DIRECTIVE AND THE PREPARATION OF THE NEXT IMPLEMENTATION REPORT, FOLLOWED BY A DISCUSSION. Ms GARBEN (legal officer in the Labour Law Unit of DG Employment, Social Affairs and Inclusion of the European Commission) first made a general outline of the Working Time Directive (i.e. Directive 2003/88/EC). She underlined the fundamental points of this Directive regarding its scope, the definitions it entails, the rights it confers to the workers and the derogations that it allows under specific conditions. She underlined also the important clarifications brought by the case-law of the Court of Justice of the EU (for instance, regarding the inclusion of "on-call" time within working time when the worker is at his/her workplace). Ms LAGARRIGUE (Deputy Head of Labour Law Unit of DG Employment, Social Affairs and Inclusion of the European Commission) presented the main issues/themes that could justify a review of the Directive. First, the working patterns have evolved and new forms of employment have appeared or developed. Second, a lack of legal clarity and certainty has emerged following some crucial judgements of the Court of Justice. Third, the implementation of the Directive continues to reveal divergences in transposition in the Member States. Fourth, the Commission receives evidence that some categories of workers are working excessive hours. This might be due to the use of the individual opt-out option. Finally, there are concerns among companies regarding the potential "regulatory burden" that the Directive could represent. She also recalled the attempts for a review of the Directive over the last 10 years, ending in 2013 by a break-up of the EU Social Partners' negotiations. Therefore, the Commission has resumed the analytical work. The EC is currently carrying out different studies and gathering sound evidence. A public consultation will also be launched in December 2014. Four possible ways forward were put to the discussion: 1. no further legislative action, 2. amending legislative proposal which would be limited to specific sectors, 3. amending legislative proposal which would be based on the 2009 conciliation, 4. amending legislative proposal for a broader review of the whole Directive. These options should respect the principle of non-regression and the EU Charter of Fundamental Rights (i.e. its Article 31 which sets rights in relation to working time). Solutions should be sought that are not too disruptive for the existing national legislations. Following the presentation, 15 delegations (SE, DE, NL, BE, ES, UK, MT, PL, IRL, DK, AT, IT, LT, LUX, FIN) took the floor to thank the Commission for this very clear presentation but also for the reflection paper communicated beforehand to the members of the DGIR group. The interventions of the delegations mainly related to the following themes: should the rights conferred by the Directive apply per worker or per contract? Should on-call time be precisely regulated by the Directive? If yes, in which way? Should the individual opt-out be abandoned or modified? Should the reference period be modified? How should we take into consideration the position of SMEs? How should we take into consideration the new work patterns/ forms of employment? Which role for the Social Partners? 2
After these interventions, the Commission's delegation gave further details on the current work of the Commission on the topic of working time and in particular on the studies it currently carries out. 5. PRESENTATION OF THE EUROFOUND 2014 REPORT: "PAY IN EUROPE IN THE 21ST CENTURY" FOCUS ON MINIMUM WAGE POLICIES AND LEVELS IN EUROPE, AND REFLECTIONS ON THE POSSIBILITY OF COORDINATION Mr C. VACAS SORIANO (Eurofound, Research Officer) presented the results of the recent Eurofound Report PAY IN EUROPE IN THE 21ST CENTURY" in its section related to the possibility of the EU coordinated minimum wage. He first outlined the pros and cons of a possible EU coordinated minimum wage. There is an increasing debate about this issue although the EU has no competence regarding harmonisation of pay. He described broadly the different systems and levels of minimum wage existing within Member States. He presented the impact that would have a minimum wage fixed, in each Member State, at the level of 60% of the national median wage. The impact is measured in reference to the change it would bring both to the level(s) of the minimum wage and to the national system regarding pay setting. Following the presentation, 13 delegations (SL, SK, NL, SE, BE, PL, DK, IRL, UK, LUX, DE, IT, AT) took the floor. Most of them underlined the important differences existing between Member States when it comes to minimum wages setting, each country having its own specificities. Although the issue is recognized as deserving a debate, the delegations expressed in general the feeling that an EU coordinated minimum wage would hardly respect these specificities, keeping in mind that the EU has in any case no competence for this. The goals of the possible EU coordinated minimum wage were also questioned: would it be a mean of fighting against poverty or social dumping or a way of promoting growth? Mr SILVA commented that the goals of a possible EU coordinated minimum wage could in principle be (i) to increase social protection (fight against inequality and poverty) and (ii) to improve the functioning of the Eurozone (macro-economic impact). Mr SILVA confirmed that the EU has no competence for pay harmonisation but reminded that the EU gives recommendations on wages. Mr VACAS SORIANO gave some additional elements from his study in relation to the comments of the delegations. 6. PRESENTATION BY LITHUANIA OF THE RESULTS OF THE CONFERENCE "HOW TO MAKE FORMAL WORK ATTRACTIVE?" HELD IN VILNIUS ON 17 AND 18 SEPTEMBER 2014. Ms E. RADISAUSKIENE (Deputy Director, Labour Department, Ministry of Social Security and Labour of the Republic of Lithuania) gave a presentation of the Conference "How to make formal work attractive?" held in Vilnius on 17 and 18 September 2014. The aim of the Conference was to discuss the issue of informal work and the transition to formality, facilitate the sharing of information and exchange of best practice, other policy approaches and measures that national authorities have implemented to tackle the problem. 3
7. PRESENTATIONS AND INFORMATION BY DELEGATIONS ON RECENT DEVELOPMENTS REGARDING LABOUR LAW AND INDUSTRIAL RELATIONS IN THE MEMBER STATES 7.1. Bill on Combating Bogus and Sham Arrangements in Netherlands Ms H. VLUG (Ministry of Social affairs and Employment, Netherlands) explained the features of a new draft Bill on Combating Bogus and Sham Arrangements. In order to combat such practices (bogus self-employment, semi-permanent posting jobs, evasions of obligatory payment of Dutch statutory minimum wage, disproportionate deductions of expenses of behalf of the worker, etc.), Netherlands has drafted a new Bill which central principle is "equal payment for equal work in the same place". Among others, the Bill provides for detailed information on payslips and requires that wages should be paid via bank account. The Bill will be sent soon to the Dutch Parliament and could be implemented in July 2015. 7.2. Current initiatives in Norway fixed term work and fight against work related crime and social dumping Ms M. NAESS (Ministry of Labour and Social affairs, Norway) gave a presentation on the initiatives currently developed in Norway by the new Government in the fields of (i) fixed term work and (ii) fight against work related crime and social dumping. 7.3. Italy the new "Jobs Act" The Italian delegation made some observations about the new "Jobs Act" in Italy. 8. PRESENTATION BY THE COMMISSION ON CURRENT AND FORTHCOMING ACTIVITIES IN THE FIELDS OF: 8.1. Social dialogue As for the cross industry social dialogue, Mr. SILVA referred to a) the Tripartite Social Summit of 23 October 2014, b) the ongoing EU Social Partners' negotiations on an in-depth employment analysis, c) the EU Social Partners' new multiannual work programme, dedicating an important place to youth employment and d) the Social Partners' consultation on the 2015 Annual Growth Survey. He also presented the state of play regarding sectoral social dialogue agreements and the sectoral social dialogue publications. 8.2. Labour Law Ms M. GUIN underlined the state of play on the main on-going activities in this field by referring to the following legislative initiatives: a) the Seafarers Directive, b) the Inland Waterways Directive and c) the EU platform between labour inspectorates and other bodies to prevention and deterrence of undeclared work. She also commented on the follow-up of the 'Fitness Check' of the 3 directives on Information and Consultation, mentioning a possible 1 st stage consultation of the Social Partners on the matter. Ms GUIN recalled the evaluations and studies that are starting or being developed currently in the field of (i) fixed-term work and part-time work, (ii) working time, 4
(iii) European Works Council, and (iv) individual information obligations on working conditions (Directive 91/533/EEC). Finally, she mentioned the Calls for Proposals in the field of (i) information, consultation and participation of representatives of undertakings and (ii) posting of workers. 9. ANY OTHER BUSINESS The LUX delegation invited the members of the Group to the next DGIR meeting that will take place on 8 May 2014 in the city of Luxembourg. 5