EMPLOYMENT

NEW ITEMS updated since 15 December 2003Bad luck old timer. You can kiss goodbye to the gold watch. As an  unintentional by-product of new European legislation aiming to outlaw age  discrimination, all perks and rewards for loyalty and long service may  become illegal.  The reason, they say, is that younger employees would be  able to claim that these were privileges that they were unjustly denied  because they were simply not old enough to have earned them.  Some  employers worry that even throwing a party to celebrate a staff member¹s 25  years of service could raise objections. Other benefits, including extra  holiday entitlement or free medical insurance offered after five or so  years of service, are also seen as under threat from the directive, which  is due in 2006. (WHAT HAS THE EU DONE FOR YOU THIS WEEK? WEEK ENDING 4th January 2004 )

Hospitals will have to reduce or close whole wards - including  paediatrics, surgery and accident and emergency - to comply with a new  European law limiting doctors' working hours. Senior NHS managers are  warning that the European Working Time Directive, which will restrict  junior doctors to a 58-hour week from next August, will mean there will not  be enough doctors to provide the current level of medical cover. (EU Weekly News – C Mobray 30/11/03 )

The European Commission is considering changes to EU law on working hours that would make it harder for firms in Britain to avoid its reach.  The European Union executive is to decide by the end of November whether the bloc's so-called working time directive should be revised and is likely to hear arguments for change from its Employment Commissioner, Anna Diamantopolou.   One reason is the law has an opt-out which is so vaguely worded that it allows most employers in Britain to avoid implementing rules that say employees cannot be forced to work more than an average of 48 hours per week, EU sources said on Wednesday. (eu UPDATE 17/11/03 )

The euro area will lose 200,000 jobs this year - the first decline in employment since 1994.   This was one of several gloomy economic predictions presented by Economics and Monetary Affairs Commissioner Pedro Solbes today in the Commission's autumn economic forecasts.   The future for employment in the EU looks anything but rosy, as well. According to the report, "given the sluggish recovery and persisting rigidities, very little job creation is foreseen for next year".   One reason for the poor outlook is that the euro area is still struggling to create economic growth. Growth is expected to be a mere 0.4 percent in 2003 in the euro area. Moreover, there is a wide variation in the growth rates of individual countries - ranging from 4.1 percent in Greece to -0.9 percent in the Netherlands .   The Commission blamed global uncertainties due to the war in Iraq and poor consumer and business confidence for the low level of growth.  Mr Solbes was also downbeat on the prospects for Member States' budget deficits. The budgetary problems of France and Germany have been a source of tension in the EU for two years, but they are expected to be joined in the Commission's bad books by Italy , the Netherlands and Portugal .  Referring to the budgetary situation, Mr Solbes said, "I sincerely hope that every country does better". (EUOBSERVER 29.10.2003)

The upcoming expansion of the EU Working Time Directive to include thousands of additional UK workers will hurt the competitiveness of British firms', according to the Institute of Directors (IoD). From Friday, the Working Time Directive will be extended to cover employees in the transport and the offshore oil and gas sectors, after they were originally omitted from the 1998 directive because of their irregular work patterns. Under the regulations, employees in these sectors will now be legally permitted to work an average working week of no more than 48 hours, receive four weeks paid annual holiday, statutory rest breaks, health assessments for night workers and an eight hour limit on night working. The extension of the rules mean an extra 770,000 British workers will now be protected by the Working Time Directive. The IoD has lashed out at the new regulations, pointing out the government itself has admitted the changes would cost the British economy £264 million a year. James Walsh, parliamentary and European adviser for the IoD, said the extension of the directive was "another blow" to UK competitiveness. "The EU is supposed to be aiming to be the most competitive economy in the world by 2010. Piling extra burdens onto businesses will make it even harder to achieve that objective. "The costs of red tape in time and money continue to escalate inexorably. A little bit here, a little bit there all adds up to a serious headache for business. "The government has to understand that the more costs imposed on business the less competitive the UK becomes," he said.  (Eurocritical 30/07/03 )

New regulations giving wider rights to employees in race discrimination cases risk creating a two tier system, says Mercer Human Resource Consulting.  The regulations, tied to implementation of an EU directive, fail to update the 1976 Race Relations Act in full, the consultants claim. The UK legislation bans discrimination on grounds of "race, colour, ethnic or national origin or nationality" but the EU regulations only cover ethnic and national origin and race. Discriminatory behaviour on grounds of colour or nationality are excluded from the EU rules. Gary Bowker, Mercer's senior employment law consultant, said: "The regulations create a two-tier system that will create confusion, especially where complaints are made on more than one basis. We are now left with two standards for similar cases." He added: "Uniform legislation would have made life a lot easier. There will be pressure for change to bring clarity and simplicity to future discrimination cases." The new rules change the definition of indirect discrimination, define harassment more clearly and change the burden of proof in discrimination cases. Mercer believes the changes mean companies "must now examine their informal practices as well as formal conditions and requirements". The onus of proof in discrimination cases is shifting from employees to employers under the terms of the EC directive. Mr Bowker says: "In future tribunals will be legally required to find employers guilty of discrimination if they cannot prove they didn't commit the discriminatory act." (Daily Telegraph 28/07/2003 )

Older workers who lose their jobs will receive lower redundancy pay than at present under plans drawn up by the government.  Age campaigners have attacked the proposal as another blow for the beleaguered older worker, although the proposal forms part of the forthcoming law on age discrimination.  As the law stands, employees aged 41 and above must receive payment of at least a week and a half pay for every year of service above the age of 41 with their employer. Under the new proposal, that payment would be only one week for each year, which most employees aged under 41 must receive by law if they are made redundant.  The proposal is part of government provisions to put the age discrimination clauses within the 2000 EU employment directive into UK law. The proposals are set to be sent out for consultation this week.  Michelle Mitchell, head of public affairs at Age Concern England , said: "Many over-50s find it impossible to get back into the workplace after losing their jobs and are unable to build up adequate pension contributions." (Financial Times; Jun 30, 2003 )     

Employers in industries where autism rates are high are setting themselves up for a range of tribunal cases especially when the European Union’s discrimination legislation is fully implemented in the UK , it was claimed today. Chartered Clinical Psychologist, Dr David Ruthenberg, told HR Gateway that many employers are passing over Asperger’s suffers for promotion as they lack the ‘soft skills’ demanded of managers: ‘In my experience of working in the “Golden Triangle” around Cambridge , employees are feeling very frustrated by colleagues leapfrogging them into management positions because of their lack of social skills. ‘This is a time bomb waiting to go off, especially when EU legislation is fully implemented in the UK , as there are many ways to help them. BT, for example, actively recruits Asperger’s suffers through the National Autism Society for certain roles and career paths. There is no excuse,’ he said. Currently working with Nortel, Ruthenburg warns that industries such as IT, engineering and pharmaceuticals are some of the most at risk, but many steps can be taken to help sufferers, and not steps that demand a severe amount of company reorganisation: ‘Managers need to be educated on matters of Asperger’s and Autism, while firms could take into account the personality of sufferers. Open plan spaces and networking all go against the Apserger personality. Sitting in a small office undertaking meticulous tasks that need attention to detail is what would suite them. ‘Many firms have the problem that sufferers tend to be very bright, talented people which they end up losing because they do not understand their position. Create roles for them where they can excel and advance so that they are not looked over for promotion,’ he advised. Rates of Asperger’s in the population may be as high as one on 100 although the diagnosis is difficult. It is caused by different hardwiring in the brain meaning social skills, planning and the inability to learn from previous social encounters may be prevalent. Suffers may have mild obsessions about personal behaviour or domestic rituals which could concern colleagues unless they understand that it is necessary to reduce personal anxiety. (HR Gateway Ltd 10 June 2003)  

The EU's financially active population will have dropped from 331 million at the present, to 243 million in 2043, and as far as global production is concerned, it will only cover 12% in 2020, in contrast to 22% that it covers today. The above was stressed by Foreign Minister Giorgos Papandreou in his speech at the Symposium and Meeting of the Political Affairs Committee of the Council of Europe, in Lagonissi, in immigration and political asylum issues. In fact, he called upon research that was carried out for the EU , pointing out that by 2020, the EU will need 30 million immigrants. The Foreign Minister also stressed that EU member-states must be honest towards their citizens and inform them that zero immigration policies are not a solution for the European Union. "I consider the increase in the number of immigrants unavoidable", he added, "but it is completely necessary to properly administrate immigration, so that the European market's future needs are met and the citizens' feeling of security is not upset". ( 10 June 2003 Macedonian Press Agency) NB. Tony Blair has agreed to assign responsibility for immigration policy to the EU-Ed)  

The jobless rate in the 12-country bloc that uses the euro as its currency held at a three-year high of 8.8. (3  Jun 03 BRUSSELS AP)

New legislation allowing religious employers to sack gay and lesbian staff will face its first test today when a powerful committee of MPs and peers challenges the proposals.  The 2003 Employment Equality Regulations, which were drafted by the Government to comply with European Union directives on workplace discrimination, were expected to be passed through Parliament as a formality.  But in an extremely rare move, the joint Committee on Statutory Instruments will ask Whitehall officials responsible for the regulations to explain the rationale behind parts of the legislation.  Gay rights groups, the Liberal Democrats and trade unions have condemned the regulations because they exempted religious groups from anti-discrimination measures.  A clause, inserted after pressure from the Church of England, states that the law will not apply where it conflicts with the strongly held convictions of a "significant number" of a religion's followers.  Because the regulations are secondary legislation, they do not have to be debated on the floor of the Commons and may be subject to only three hours' debate in committee before passing into law.   (Independent 2 June 2003 )  

Almost half of all companies would cut the number of temporary staff they use if Britain fails to resist plans by European Union member states for sweeping protection of their terms and conditions, according to a survey co-published by the CBI employers' organisation.     Digby Jones, CBI director-general, used the news to attack the European labour market model. He said: "If the EU is serious about economic reform it should not be trying to drag the UK 's flexible and successful labour market in the direction of other countries where they have high employment." (Financial Times June 2 2003 )

Badly drafted legislation that extends protection against discrimination at work risks becoming a charter for litigation, says barrister Marina Wheeler Let's pretend you need a job. And let's imagine that you are white, male, heterosexual, in reasonably good shape for 45 and with a moderate attachment to the Church of England. You scan the appointments section of The Telegraph and here is just the vacancy: a business in Wolverhampton needs a new accounts manager. You reach a shortlist of eight. The others are: Sandra, recently married, who is hoping to land her first job; Said, a Muslim graduate; Roger, a "mature" 55; Hamish, who is openly gay; Horace, a West Indian; Gerald, who has a residual repetitive strain injury and limited use of his left arm; and Patrick, a Jehovah's Witness who makes clear that in an emergency he would refuse medical treatment. The interview process seems fair: all candidates are asked similar questions, focused on their experience and skills for the job. But there is one crucial, invisible difference between you and each of the other seven. Any one of the others, if turned down for the job, could under existing or forthcoming legislation bring a discrimination claim before an employment tribunal. Each has a "protected characteristic" under revised legislation based respectively on gender, religion, age, sexual orientation, race, disability and belief. If you were to be turned down, you - and you alone - would have no grounds for action. Two European directives mean that by December it will be unlawful to discriminate not only on existing grounds of sex, race and disability but also on grounds of sexual orientation and religion or other belief. By December 2006, age discrimination will also be unlawful. (Daily Telegraph 24/04/2003 ) 

The latest German unemployment figures, 4.623 million, are even worse than expected. People are now wondering whether the figure might reach 5 million before the year is out. This latest figure represents a drastic increase of 398,000 in January. The government had expected the figures to remain at the already high figure of 4.2 million. But now the rate has risen from 10.1% to 11.1%. This is the highest January figure for five years. These are seasonally unadjusted figures but the adjusted ones are just as bad. January is usually a bad month because people are sacked in December. But the seasonally adjusted figure rose by 62,000 to 4.274 million. Analysts had expected the seasonally adjusted figure to be only 29,000. Economists said the new figures were catastrophic . [Handelsblatt, 4th February 2003]

 Labour productivity per person employed in the EU fell from 86 percent of the US level in 1999 to 83 percent last year and Prodi blamed "policy inertia and backtracking" for Member States' failure to implement EU laws. ("No" Bulletin 16/1/03)

The euro, they tell us, is good for jobs: 4.2 million jobless Germans might think otherwise. The German unemployment rate has risen by 6.6% since the same time last year, the sharpest rise for five years. The picture is just as bleak in the rest of the euro zone, which has had the single currency for four years now. Unemployment is systemically higher in the euro zone than outside it: the seasonally-adjusted figure for the 15 EU states is 7.7% (as it was last month), but the figure for the euro zone countries is 8.4% (also unchanged from October). Compared to the same time last year, euro unemployment has actually risen: in November 2001, it was at 7.4% for the EU 15, 8.0% for the euro zone 12. Youth unemployment is 15.1% in the EU, 16.2% in the euro zone. These figures all come from Eurostat, the Commission’s statistical office, which is paid to produce figures that put a positive gloss on European policies. But their figures underestimate the true rate of joblessness. For instance, Eurostat puts German unemployment at 8.4%, while the German government itself says its rate is 10.1%. So you can round up Eurostat’s other figures for the euro zone accordingly. [Handelsblatt, 7th January 2003; Die Welt, 9th January 2003] (EID Issue No. 158 9th January 2003

Analysts from the German Institute for Economical Research in Berlin and Kiel are expecting a further growth in German unemployment in 2003 of minimum 100,000 with a risk that the number of unemployed could go as high as 4,5 million in February. (EUobserver.com 6/1/03)

Millions of people from Eastern Europe will be eligible to work and settle in Britain from the moment their countries join the European Union in 18 months, the government has announced. Britain is to waive its right under the accession treaty to delay extending full work opportunities to new members for up to seven years. This could make the country the main target for migrant workers, campaigners said, as Germany and other major economies impose restrictions on movements from the east. The accession treaty, signed by leaders in Copenhagen last weekend, cleared the way for Poland, Hungary, Estonia, Lithuania, Latvia, Slovenia, Slovakia and the Czech Republic to join the European Union. The government said that allowing workers from these countries into Britain at the earliest opportunity would help the economy. But Oliver Letwin, a spokesman for the opposition Conservative Party, challenged the government to explain why it had not made use of the transitional arrangements. "We live on a small and crowded island," he said. "Why does the government consider it appropriate not to have transitional controls when other EU countries have imposed them?" Germany, fearful of a large influx of migrant workers, will strictly control immigrant flow from applicant countries for up to seven years, although there are exceptions for various professions, and additional agreements could allow more in. (Daily Telegraph 19/12/02)

The EU's Working Time Directive was set out on 4 pages. When re-issued by the British government it was expanded to 79 pages. (BBC R4 25/11/02)

The UK government is opposed to the EU directive on agency workers, the Atypical Workers Directive, which requires companies to pay agency workers the same rate of pay and conditions as full-time staff. If the government fails to block the directive through lack of support in majority voting, it intends to seek an "opt-out" to avoid the damaging effects on our employment flexibility. Minister fear the directive could increase unemployment by closing the "gateway" to full employment offered by the ready availability of agency work. This would be an embarrassing U-turn for the government that celebrated a new spirit of engagement with Europe after signing the European social chapter. (Financial Times 27/11/02). Despite the government's strong opposition this did not stop Labour MEPs from voting in the European Parliament not only to support the directive but also to make it tighter still. This was to eliminate a delay of several months before the agency worker gained the full entitlements under the directive. Now agency workers get these from the start of work. Although the government seeks a "blocking minority" in the Council, other countries will scarcely be persuaded to follow the official British Government line when not even its own MEPs support it. (Daily Telegraph 27/11/02)

One in 10 UK companies would stop using temporary workers if European Union’s proposal to give them exactly the same terms and conditions, including pay, as the permanent staff, would come into force, says a recent survey by the Confederation of British Industry. UK businesses have so far employed very many temporary workers, but according to the survey a new EU directive would cause a bureaucratic nightmare for businesses, forcing them to take the full responsibility, reports the Financial Times. Temporary workers make up more than 3 per cent of the UK workforce, which is one of the highest in the EU. The survey showed that one in 10 companies would stop using the temporary workers, another third would reduce agency work sharply, and 16 per cent would cut down a little on the number of temp assignments. (EUobserver.com 8/8/02)

As German unemployment once again went over the 4 million mark (4.047 million in July), unemployment in the euro zone also reached its highest level for two years in June 2002. The last time unemployment was higher than it is now was in April 2000 when it stood at 8.5%. It is now expected that euro-unemployment will continue to rise to at least 8.6%. The figure was 8.3% in May. Naturally, the figures for the EU as a whole are lower (7.7%) if you include the United Kingdom, Denmark and Sweden, the three EU countries who have not adopted the single currency. The countries with the lowest unemployment are Luxembourg (2.3%) and the Netherlands (2.8%). [Handelsblatt, 6th August 2002] (European Foundation Intelligence Digest Issue No. 148 7th August 2002)

The UK has to implement a European directive giving employees entitlement to be informed about their employers economic position, to be consulted on, and informed about employment prospects and consulted and informed about decisions that may lead to considerable changes in the work organisation or contractual relations, which could include transfers or redundancies. Employees and employers will be permitted to agree procedures which do not form part of the directive. The employer has a right to withhold information if to disclose it would be prejudicial or if it would seriously harm it. This directive has to be implemented by 23rd March 2005. The UK will, by agreement, be able to restrict application of the directive to businesses with 150+ employees until 2007, when the directive will capture businesses with 100+ employees. From 2008 all companies with 50+ employees will be affected. Further details can be obtained from: http://www.dti.gov.uk/er/consultation/proposal.htm (E-mail EB 4/5/02)

THE CBI has lashed out at the country's largest private sector union for trying to impose more red tape under the EU's working time directive. Amicus, the engineering trade union, has claimed "a historic victory" after the European Commission's decision to uphold its complaint over what the union called the Government's unlawful and inadequate implementation of the directive, which aims to limit working time to 48 hours a week. The EC has written to the Department of Trade & Industry threatening to commence infraction proceedings. However, John Cridland, deputy director-general of the CBI, will today urge ministers to mount a robust defence against the proceedings. Mr Cridland said businesses would be deeply concerned about Amicus' arguments, which would "be a bureaucratic nightmare" to implement and would switch responsibility for ensuring holidays are taken from employees to employers. "Ministers have struck a balance between giving workers the choice not to work long hours and preserving company flexibility," he said. "Some trade unionists seem totally uninterested in flexibility and choice. They only want to control and nanny how long people can work." (Money Telegraph 29/4/02)

European legislators for the first time agreed a common definition of what constitutes sexual harassment in the workplace and outlawed it as a form of sexual discrimination. The new directive places the burden of proof on employers if harassment cases go to court, and includes provisions for enforcement, compensation without an upper limit and sanctions. Businesses will have to establish systems to prevent unwanted sexual conduct and provide regular "equality reports". "The general level of awareness of sexual harassment in member states is very poor," Mrs Diamantopoulou said. "Now sexual harassment, absent from most national laws today, will finally have a name." But employers' groups criticised the decision. "We don't believe there was any need to revise the law in the first place," said an official at Unice, European employers' federation. "All member states already have procedures to address such issues. Harassment and discrimination are two different problems. This opens the way to potential false claims." Under the new legislation, sexual harassment is "where any form of unwanted verbal, non-verbal or physical conduct of a sexual nature occurs with the purpose or effect of violating the dignity of a person, in particular when creating an intimidating, hostile, degrading, humiliating or offensive environment". The Commission estimates that 40-50 per cent of female employees have received unwanted sexual proposals of some sort. (Financial Times 19/4/02)

Fathers across the European Union would, for the first time, win the right to take paid paternity leave in place of their partners under plans being considered by the European Commission. Anna Diamantopoulou, EU employment and social affairs commissioner, is considering legislation following agreement on Tuesday, of wide-ranging changes to a 1976 directive on workplace equality, which for the first time in EU law explicitly mentions paternity leave. The EU's parental leave directive, which came into force in 1999, already offers 13 weeks of unpaid leave to parents. The new plans are expected to call for fathers to be allowed to take the minimum amount of paid leave offered under existing national legislation on maternal leave, officials said. (Financial Times 19/4/02)

According to different sources the number of employees in the European Commission fluctuate from 16 409 to 31 013 persons. The distinction is because a large share of the commission’s staff work as a half-employed or as external experts, stagieres or temporary servants sent by member states’ administration, writes the Slovak daily Sme. (EUobserver.com 18-04-2002)

Nick Brown, Minister for Work, said, "The UK now has the lowest unemployment rate of all the major industrialised countries for the first time in half a century." French unemployment has risen for the last 9 months consecutively and now stands at 9 percent. German unemployment is at its worst level for three years. It currently stands at 4.32 million, or 10.4 percent. ("No" Bulletin 21/3/02)

The European Ombudsman, Jacob Söderman, has refused to sign the decision setting up the European Recruitment Office unless a provision allowing age discrimination is deleted. In a letter to the presidents of the Commission and Parliament, Mr Söderman says: "I cannot agree to sign any decision that does not make clear that the Office must not discriminate on the grounds, including age, that are prohibited by the Charter of Fundamental Rights of the EU". The Ombudsman's refusal is based on Article 21 of the Charter that prohibits discrimination based on any ground such as age. The Ombudsman asks Commission president Romano Prodi and European Parliament president Pat Cox to delete the provision allowing the new Office to use age limits and to replace it by a requirement that the Office respect the Charter's anti-discrimination provision. The office will organise competitions to recruit officials and all of the EU institutions and bodies will be able to choose from the list of successful candidates. The plan is to replace the current system where each institution organises its own competitions. It was hoped that the Office would be set up by the end of 2002, ready to organise competitions in 2003. (Euobserver.com 14/3/02) The European Commission and the European Parliament have both decided to abolish age limits in recruitment with immediate effect, following protests of the European Ombudsman, Jacob Söderman. The Ombudsman has refused to sign the Decision setting up the European Recruitment Office unless a provision allowing age discrimination is deleted. The Ombudsman's refusal was based on Article 21 of the Charter of Fundamental Rights that prohibits discrimination based on any ground such as age. (Euobserver.com 18/4/02).

The European Ombudsman, Jacob Söderman, is not satisfied with the Commission's response to a complaint he received about possible racism in EU recruitment. The complainant - a Dutch citizen - points out that while more than 30 million people of ethnic minority origin live in the EU, hardly any of them are employed in the structure of the European Communities. (Euobserver.com 25/2/02)

BRITISH business leaders are fighting a draft European Union directive that would give millions of temporary workers pay and employment rights comparable with those of permanent employees. Under the plans, thousands of small employment agencies could be forced out of business and Britain could lose its advantage of a flexible labour market. Digby Jones, Director-General of the Confederation of British Industry, has written to Romano Prodi, President of the European Commission, to tell him that a planned directive would be "very damaging to the UK labour market". Far from improving the conditions of agency workers, the costly and burdensome directive would discourage businesses from using temps "to the disadvantage of all concerned", Mr Jones argued. The directive was "socialism coming straight out of Brussels," he told the BBC. It has been similarly condemned by Tim Nicholson, chief executive of the Recruitment and Employment Confederation, who will be "pressing the Commission to strike a balance between protecting vulnerable workers and promoting skilled, flexible labour and job opportunities". The directive would have a disproportionate impact on Britain, which has the largest agency workforce in the EU with more than a million people working as temporary secretaries, clerks, teachers, nurses, caterers and cleaners. The British "temp" workforce is also one of Europe’s fastest growing as employers realise the benefits of tapping a skilled and flexible pool of labour costing less than full-time employees. The directive will force companies that hire temporary staff for more than 6 weeks to compare salaries and conditions when striking deals with agencies. Many believe that that will stop many businesses from taking on temporary staff because the procedures will be as onerous as taking on full-time workers. This could force many employment agencies to the wall. Diane Sinclair, employee relations adviser with the Chartered Institute of Personnel and Development, said: "The EU proposals are wholly inappropriate for the UK. They will restrict flexibility without significant benefit to anybody." The directive "would be very bad news all round," James Reed, head of Reed, Britain’s leading recruitment agency, said. "It is bad news for individuals, particularly for disadvantaged people who find temping the best route to get into the workforce. It is bad news for the UK economy, where the flexible workforce has been a huge asset in keeping unemployment at the lowest level in Europe over the last decade." At present temps are 1.5 per cent of the EU labour market, with Britain accounting for nearly half the total. Use of temps is lowest in Greece, Spain and Italy, where they were until recently illegal. The CBI wants the directive amended so that temps are guaranteed pay and conditions comparable to those of temps in other agencies, not to full-time company employees. It argues that it is the agencies that employ the temps, not the businesses that pay the agencies for the temps’ services. (The Times 19/2/02) This move has been  under consideration since 1998, see below - Ed

Companies in the European Union employing more than 50 people face controversial new regulations on workplace consultation after EU governments and the European parliament on Monday finalised a deal on the long-delayed legislation. The EU's new information and consultation directive will force companies to consult workers on all significant decisions, ranging from restructuring to measures likely to lead to substantial changes in work organisation or contractual relations. Workers must also be informed of the company's economic situation. Companies have the right to protect confidential information, but must provide objective proof that the release of this information would damage their interests. Failure to respect the terms of the directive should lead to "effective, proportionate and dissuasive" penalties. The directive, which took three years to negotiate and comes into force in three years, has pleased trades unions but worried countries such as the UK and Ireland, which have no tradition of formalised worker consultation. In these countries, smaller companies will have an additional three years to put the directive into effect. In a concession to the parliament, the period before the directive comes into force in the UK and Ireland has been shortened by a year, but they will have more time to fall into line than countries with a tradition of worker consultation. (Financial Times December 17 2001)

In his pre-budget statement, the Chancellor also stressed the positive state of the British economy. He said, "For the first time in a century unemployment in Britain is lower than in Japan, lower than in America. And compared with Britain the unemployment rate in the euro area is 50 percent higher - the equivalent of one million more British people in work." Gordon Brown also pointed out that British manufacturing has compared well with other industrialised countries: "With manufacturing output having fallen across the world - by an estimated 5 percent in the G7 countries - British manufacturing output has fallen over the same period by 2 percent after rising by 2 percent in 2000 - and there have been consequent effects for both exports and imports and for business investment whose share of national income nonetheless continues near an all time high." ("No" bulletin 30/11/01)

Prostitutes from Central and Eastern Europe have been granted the right to run their own businesses in the Netherlands, according to a ruling by the European Court of Justice. The judges said prostitutes could be self-employed in any EU country where selling sex is tolerated. This right is given to applicant countries in treaties associating them with the EU. Four women from Poland and the Czech Republic took their case to court after they rented "window rooms" in Amsterdam's red-light district and declared their monthly salaries for 1,800 Dutch guilders but were refused work permission by the Dutch authorities. In the Netherlands, where brothels are legalised, only EU nationals are allowed to earn a living as self-employed sex workers. According to the European Court of Justice, the activity of prostitution pursued in a self-employed capacity can be regarded as a service provided for remuneration. A prostitute profession is not contradictory with national law in at least 10 EU members: the Netherlands, Belgium, Denmark, France, Spain, Luxembourg, Germany, Sweden, the United Kingdom and Italy. (EUobserver.com 23/11/01)

A fierce row has erupted between Britain and the European Parliament after the assembly on Tuesday overturned concessions won by Tony Blair's government on rules for workplace consultation. The assembly's vote on the controversial information and consultation directive angered employers' groups, but delighted trade unions. The parliament threw out a significant concession won by Britain - one that would have seen the smallest companies given up to seven years to implement the directive. Only two years will be allowed. It also wants to broaden the number of issues on which workers must be consulted and give them the chance to postpone decisions with "significant adverse" effects on employees. However, while accepting the principle of sanctions against companies that fail to comply with the new rules, the European Parliament rejected calls from its employment committee for specific and strict penalties to be built into the legis-lation. The Confederation of British Industry reacted furiously, warning that decision-making would "grind to a halt" if the changes became law. The government vowed to fight the proposals, which were introduced after a careful compromise between European Union member states in June. The Department of Trade and Industry said the changes were "unnecessary and unhelpful". (Financial Times October 23 2001) 

Unemployment in Germany increased for the ninth month in a row. Over 100,000 jobs have been lost since the start of 2001. ("No" campaign bulletin 11/10/01)

Tuesday was the day when transport workers in several hundred harbours in the EU and EEA countries went on strike for two hours between 13.00 and 15.00. The strikes were in protest against a proposed EU directive saying that there must be at least "two completely independent contractors" in each harbour. And these should have the right to "employ personnel according to their own choice", as stated by Norwegian Trades Union newsletter LONytt in August. The strike was organised by the International Transport Workers' Federation (ITF) because it fears that the directive will lead to an undermining of the working conditions and jobs of European transport workers, whose jobs may be taken over by underpaid workers and probably also by sailors, who are often underpaid men from poor countries. "This would lead to social dumping on the work, and we may be carried back to the times when people were standing outside the gate crying for work," says Terje Samuelsen, spokesman for the dockers in Kristiansand, Norway. The employers' and shipowners' organisations in Norway maintain that they have to be more cost efficient and support the proposed directive, which they see as a necessity if more transport is to be moved from roads to the seaways. In Denmark, 1200 workers went on strike during the two hours. In Norway, where only 6-7 harbours are big enough to be immediately affected by the directive, no less that 45 harbours took part in the strike with the support of not only their own Trade Union but also that of the local members of the organisation for employees in the public sector, Norsk Kommuneforbund. In Oslo, Per Østvold, leader of Norsk Transportarbeiderforbund (Norway's Transport Workers' Union), was satisfied with the result of the strike, as he thought that the ITF had succeeded in attracting attention to the issue.(EUobserver.com 26/9/01)

WORKING HOURS IN EUROPE AND THE US

(Daily Telegraph 9/8/01)

A preliminary ruling from the EU Court in Luxembourg on Tuesday held that the British government was in breach of European employment law rules by denying freelancers and people working on short-term contracts the right to paid holidays. Short-term workers are entitled to four weeks paid holiday a year. The case was taken to the High Court of Justice in Great Britain by BECTU (Broadcasting, Entertainment, Cinematographic and Theatre Union) a trade union with about 30,000 members working in the broadcasting, film, theatre, cinema and related sectors in the United Kingdom. Most of the workers represented by BECTU are engaged on short-term contracts - frequently for less than 13 weeks with the same employer. Consequently such workers have no right to paid annual leave under United Kingdom law. The EU Court of Justice in Luxembourg observed in the preliminary ruling on Tuesday that the Community Charter of the Fundamental Social Rights of Workers (9 December 1989), which was taken into account in the Community Directive concerning certain aspects of the organisation of working time, provides that every worker in the European Community must enjoy satisfactory health and safety conditions in his working environment and that he is therefore entitled to paid annual leave. The Confederation of British Industry said it was "disappointed" by the judgment. "The ruling will be an inconvenience for employers and employees," said Susan Anderson, director of human resources, to the Financial Times. (EUobserver.com 27/6/01)

Pregnant women on short-term contracts cannot have their employment ended because of pregnancy, according to the Advocate General. Ironically, such a decision could affect millions of EU workers and boost employment for agency workers, who are not usually entitled to maternity leave. The Secretary General of the Federation of European Employers said "the case will have a major impact across Europe. Fixed-term contracts no longer provide the cost advantage and flexibilities that originally made them such an attractive option for employers". In future an employer has to demonstrate that refusal to renew a contract was not because of the woman's pregnancy. (Irish Times 15/6/01) The decision has been ratified by the European Court. (EUobserver.com 11/01/01)

The European Commission proposed sanctions this week to deter firms from laying off workers. Anna Diamantopoulou, the employment commissioner, said violators would be punished if strict new rules were breached. "We must have teeth," she said. The proposal is part of a "consultation and information directive" that aims to give workers a say on key management decisions. It has prompted protests from the Confederation of British Industry and the Institute of Directors, which say it will force small firms to adopt German-style labour rules. The directive goes further than existing European Union law, which covers only big firms with pan-European operations. It would hit small businesses with as few as 20 employees (or 50 if the workforce is scattered). The draft text says firms must give workers facing redundancy extra "employee training and skill development", raising the cost of hiring and firing. It would also authorise the EU to rope small firms into the final stage of monetary union by requesting "supportive measures". The issue is politically charged because Tony Blair promised before the last election that he would "pick and choose" on EU social legislation. But after signing up to the EU's Social Chapter in 1997, he finds himself powerless to stop legislation he does not want. The Government has fought hard to block the law. Internal EU documents show that British officials have raised "scrutiny reservations" on almost every clause. A vote was originally set for May but has been postponed until June 11. The Tories have accused EU officials of delaying the vote for a month to spare Mr Blair an election headache. (Daily Telegraph 12/5/01).Tony Blair has agreed to accept the employee consultation directive (after the election) which involves workers in management decisions and threatens UK competitiveness. The Director of the CBI, Digby Jones has sounded dire warnings that the growing power of trade unions will divert investment by overseas businesses away from Britain. (Sunday Telegraph 17/6/01)

EU employment ministers agreed unexpectedly on Monday that firms which employ more than 20 workers in one place, or more than 50 across several sites will have to inform and consult their employees about key business decisions. The UK and Ireland won a seven-year exemption from the directive, reports the BBC. Both countries had criticised the plans as putting an unnecessary burden on companies. (EUobserver.com 12.06.2001)

There are two ways of measuring GDP per head: either a straight measurement using present currency values or "purchasing power parity" (PPP), which tries to smooth out exchange rate movements. Both measures show that we are above the EU average and have overtaken France and Italy. On the PPP measure, preferred by the euro lobby, we are catching up with German standards of living and on the straight measure we are already ahead. GDP per head, however, is only a proxy measure of living standards. For example, it cannot measure the impact of the Eurozone's higher taxes on individual workers. Eurozone taxes are a sixth higher than in Britain. The combination of high wages and low taxes mean that the take-home pay of a British person is the second highest in Europe after Luxembourg, and far higher than other large EU countries including Germany. Take home pay for the average production worker is $19,906 in Britain, compared to $17,147 in Germany and $14,766 in France. ("No" bulletin 7/4/01)

 German unemployment has risen for the third month in a row, to 3.99 million. The rise is another demonstration of the gap between the rhetoric on economic reform expressed by Eurozone leaders and the reality of high unemployment in the Eurozone, nearly twice the level in the UK. German employers have explained that it is still simply too expensive to create jobs. Ernst Voss, managing director of Ross Europa, said: "We have to be very careful about employing people...We have to fill out no end of forms, to evaluate the individual places where people are working. You have to measure air draughts, relative humidity, and it makes you think twice about doing that" (BBC News Online, 3 April 2000).

 The lack of labour market reform in Germany has come under the spotlight this week. Unemployment has risen in Germany for the last two months. On Monday 12 March, the Federal Association of German Banks (BdB) said that reform had actually gone backwards: "No progress has been made on urgently needed labour market reforms. On the contrary, restrictions on temporary work contracts a legal right to part-time work and planned changes to the role of workers' councils in companies are clear backwards steps." On Tuesday 13 March, four German employer's organisations said: "The jungle of labour market rules is getting thicker." ("No" bulletin 17/3/01)

The EU has ruled that every parent with a child under five must have the right to 13 weeks of unpaid leave. Ministers must rewrite laws on parental leave, which only allow employees with children born after Dec 15 1999, to take time off. The legal change followed a challenge by Cherie Blair, acting for the TUC. Now one month can be taken off work every year, up to the child's fifth birthday. Business leaders said that although the leave was unpaid it could cost industry £20m a year from having to pay replacement staff and could send many businesses to the wall. (Daily Telegraph 26/4/01)

The euro lobby has consistently argued that Britain will put jobs at risk if it stays outside the euro. For example, the director of the euro lobby has written: "Save the pound and lose your job." (New Statesman, 12 June 2000). The euro lobby's launch literature said that jobs created by inward investment "will be put at risk if we stay out of the single currency." But British unemployment has fallen in every month since the launch of the euro, and on Wednesday 14 March fell below one million for the first time since December 1975. David Blunkett, the Secretary of State for Education and Employment, called the event a "major milestone". ("No" bulletin 17/3/01)

 EVERY morning a van drives up to the side entrances of Berlin’s best hotels and loads wicker baskets brimming with dirty sheets. Within two hours the laundry has arrived at a run-down, coal-fired power station in western Poland, where a local entrepreneur has installed heavy-duty German washing machines in an underground steam room. Ironed by unemployed Polish stokers, the crisp sheets are decking the beds of film stars in Germany’s capital the next day. Poles travel to eastern German farmsteads to pick asparagus or strawberries; they come to Berlin to install the electric wiring of houses, to double-glaze or seal a roof. They also come to shop and to study, but the financial logic is: earn in the European Union, live outside. Old people need help at home and are not getting it. So Polish nurses drive from Szczecin and meet the demand. Geography naturally favours the Poles, but there are Czechs and Slovaks too. Ukrainians are fast becoming the new servant class; bright, impoverished, architecture students from Kiev do the washing up, clean windows and walk the poodles — and pick up more in three months than a Ukrainian surgeon can hope to earn in a year. Despite this mutually profitable relationship, ordinary Germans appear to be terrified of Poles joining the European Union. Figures released yesterday by Deutsche Bank Research show that German approval for EU expansion had dropped from 38 per cent (in 1999) to 34 per cent. The numbers are similar across Europe. Britain is more upbeat, but even so support has dipped from 44 per cent in 1998 to 40 per cent in 1999, reaching 35 per cent last year. French approval is at the very bottom of the scale — 26 per cent — a sad reflection on a country which once viewed itself as sentimentally attached to Poland. Distrust of enlargement is thus outstripping scepticism about the euro in most EU countries. This matters with Europe, and in particular France and Germany, on the brink of general elections. Immigration is one of the few issues capable of rousing voters at present, so fears about East Europeans are already being wrapped up together with the more general alarm about refugees and the supposed swamping of "national" cultures. (The Times March 14 2001)

Under theEU Working Time Directive regulations it is now impossible for staff to carry forward any unused holidays into the following year. (Dept Employment)

Unemployment stood at 8.8 per cent in January 2001, according to new figures from Eurostat, the Statistical Office of the European Communities. It was 8.7 per cent in December 2000 and 9.5 per cent in January 2000. The unemployment is lower in the three countries outside of the eurozone, leading to a total EU15 unemployment rate of 8.0 per cent in January 2001, the same as in December of last year. In January 2000 the unemployment rate was 8.8 per cent. (EUobserver.com 1/3/01)

Schröder gave unions the right to meddle in the affairs of small private companies by increasing the power of works councils. Schröder bulldozed a new law through his cabinet requiring all firms with more than 200 staff to employ full-time works-council members and give them paid time off to carry out union business. The size of works councils was also increased. Anyone in Germany running a business with more than 51 employees is obliged to run works councils - either paid or part-time - with a minimum of five elected members. In practice most works- council members are never seen doing a job. Councils must be consulted on all matters that affect the workforce - everything from shopfloor practices to ordering a pair of new shoes. "If you want a job for life, get on the works council. You cannot be sacked," says Peter Dussmann, head of Dussmann, one of Europe's biggest contract cleaners, and a fierce critic of union domination. "I see all these union officials driving around Germany going from meeting to meeting, but to what effect? I could not tell you." Businessmen who have to start a works council now face an additional bill for labour alone of at least £100,000 a year. Official estimates put the burden on companies at an extra £900m. But this is disputed by businessmen who have first-hand experience of what it means to have a works council. "Those are only the direct costs. The hidden costs easily double the bill. That's for time off, losing efficiency and losing markets". (Sunday Times 18/2/01)

"My brother has been trying to join the police in Leicestershire and recently has his final interview. One of the questions went something like this "How would you feel if we recruited French or Spanish nationals if we couldn't find enough recruits of the right standard in Britain?" (Eurofaq posting D Stowell 19/2/01)

Before tax, according to the OECD, we are still behind the Germans in earnings, although above France and the euroland average. But average British take-home pay, after tax, of $20,000 dollars now puts us well above Germany, at just over $17,000. The only EU country ahead of us is Luxembourg, thanks to its high proportion of EU-employed residents paying tax at 11 percent. So we not only have the world's fourth largest economy but take home more than almost any of our euroland competitors. But that is one of many facts we will not be hearing from Robin Cook and Co., as they embark on the dreary litany of how poor, struggling little Britain needs to join the hugely successful euro to survive. (Sunday Telegraph 11/2/01)

Part of Denmark's planned employment reform was a job-rotation system aimed at getting employed back into the workforce. The system was supposed to be funded by the Danish state and the funding was approved by the Danish Parliament as part of the 2001 Budget. But according to Danish daily Jyllands-Posten, the employment reform may suffer a serious setback, after the EU Commission has decided that the funding is in conflict the EU Treaty's provisions for state aid. (EUobserver.com 26/1/01)

The European Union faces a shortage of information technology trained workers. Unless the union is willing to endure slower growth and higher inflation, it will need to drain Central Europe of qualified personnel. The International Labor Organization, an arm of the United Nations, warned Dec. 11 that Europe was facing an information technology labor shortage. The shortage will slow European growth and increase inflation on the Continent, but stimulate immigration from Central Europe into Western Europe. Over the long term, the increased immigration will improve the EU's economic performance but undermine Central Europe's. (http://www.stratfor.com/ 21/12/00). The European Union is preparing new rules to make it easier for foreign workers to migrate and take jobs legally in Europe. The pressure to ease immigration comes from EU countries such as Germany, which have labour shortages and an ageing population. At the same time, co-operation among EU nations in fighting illegal immigration is to be increased, the EU's Home Affairs Commissioner, Antonio Vitorino, announced at a press conference yesterday. (Daily Telegraph London 12/7/01)

The German labour marked will be closed for Eastern Europeans seven years or more after the enlargement of the European Union. This has been decided by the German government. (Berliner Zeitung/EUobserver 18/12/00)

Leading employment lawyers are expecting an influx of cases this autumn following new legislation that attempts to guarantee the same rights to part-timers that their full-time colleagues enjoy. Less than two months since the EU's Part Time Workers' Directive came into force in the UK, a growing number of employers are questioning if it possible to comply fully with the new law. Job cuts among Britain's 6 million part-timers are inevitable. The legislation guarantees part-timers pro-rata terms, conditions and benefits. The new rules add to the burden of red tape that will cost £14.7m to implement. The cost of the pro-rata benefits and the likelihood of court cases will deter employers from hiring part-timers. The John Lewis Partnership says the cost of pro-rata bank holidays will cost them £1.2m a year. A City law firm asks how a two-day-a-week employee can be given two-fifths of a company car, or private medical insurance? Employers will be attracted to the advantages of casual staff who are not covered by the legislation. Part-timers are now sitting ducks when it comes to redundancy plans. (The Independent on Sunday 27/8/0)

The result of the low rate of R&D Expenditure is, as the European Commission (1996) itself reports, much higher production costs in the EU than in the US and Japan, particularly in basic production coefficients such as energy, communications, and transport. Moreover scientific research personnel constitute 0.47% of the workforce in the EU compared with 0.74 percent in the US and 0.80 percent in Japan. The foregoing leads to the conclusion that the EU, thus far, has taken advantage of the benefit of cheap labor to enter international markets at the expense of other countries, without converting these profits into new jobs, since it is precisely the advantage of the low percentage of the workforce in employment that secures these profits. This explains why over the last twenty-five years the European Union has created 50% fewer new jobs than Japan and less than 20% than the US (European Commission 1996). To sum up, the backwardness of Europe in the critical sectors of investment, capital formation, R&D and job creation has led to a rise in unemployment in Europe at the levels of the '30s. (Institute of International Relations) http://www.idis.gr/people/pelagidis3.html

A charter of fundamental rights being drawn p by the European Union is turning into a federal constitution that could undermine British sovereignty and put an end to the UK’s flexible labour market. The CBI says the process has been hijacked by lobby groups seeking to extend EU social regulation, and federalists who see the charter as an embryo constitution. It is worried about pressure for the inclusion of political aspirations such as the right to a job, fair remuneration and adequate social security provision. The charter is also likely to include clauses that would allow a court to challenge British labour law such as restrictions on the right to strike, on union recognition, and on worker consultation. (FT 29/3/00)

The implementation of the EU directive on part-time employees is delayed beyond Brussels April 7 deadline because officials are still working on amendments. The cross-party education and employment committee said that the DTI had made substantive errors in a regulatory impact assessment intended to measure the directive’s likely effect on business. (FT5/4/00)

EU employees who are no longer needed because their projects or departments have closed are transferred to the "Bureau de Passage". Here they are paid a full salary and provided with secretarial services to help find another job. (Statement on Today Program by P van Buitenen Jan 2000)

Two publicans have won a settlement of claims that they were unfairly required to work more than 48 hours a week, in a case that suggests most middle managers are covered by the working time regulations. Bass Retail Leisure fought the case on the grounds that the men were "managing executives" and so exempt from the 48-hour limit. (FT 22/2/00)

Nestle have made clear that there is no risk to current jobs at the company's York factory from the sterling-euro exchange rate, as suggested by union officials. A company statement, issued on 10 July, said: "Reports of widescale job losses or threats to the factory are completely untrue." (BfS Briefing 13/7/00)

On Wednesday 12 July, the Prime Minister highlighted new figures on manufacturing employment, which has stabilised over the last three quarters at around 4,275,000 jobs. He also rejected calls to bring down the sterling-euro exchange rate artificially, saying that it would cause even greater economic difficulties for manufacturing by putting economic stability at riskThe Prime Minister also announced that unemployment has fallen to a twenty-year low, making even more ridiculous the claim that jobs are at risk if Britain is outside the Eurozone. (BfS Briefing 13/7/00)

"The United States has been fortunate in the openness of its markets and the degree of economic freedom it has encouraged. One result has been a job-creating machine the likes of which the world has never seen. In the past 30 years, more than 50 million private sector jobs have been created. Let me emphasize private sector! And the vast majority of these new jobs have been managerial and professional, not day-labor work. Contrast that with the 15 countries of the European Union. In the same 30 year period - with approximately the same increase in the working-age population, there has been no net increase in private sector employment. The only increase in jobs has come in the public sector." (Speech by Robert Eaton, a Director of Daimler-Chrysler to the Herrhausen Society, Spring 2000)

The OECD has analysed the differing performances of the major nations in economic growth and job creation. The report notes that Europe has not created any net private sector jobs since 1970, whereas the US had created an additional 50 million jobs (A New Economy?, OECD, 2000)

The latest Government figures have shown that Britain's unemployment is at its lowest level for 20 years, and that there are over 900,000 more people in jobs than in Spring 1997. On 13 June 2000, an American company Capital One opened a new headquarters in Nottingham, creating 1,200 jobs. Ironically Stephen Byers, who has continually raised fears over jobs and inward investment, opened the headquarters. These figures disproved claims by Ken Clarke that Britain is losing jobs due to being outside the euro. He claimed that Britain is losing 300 jobs a day outside the euro. In fact unemployment has fallen by 450 jobs a day over the last year.It is ludicrous to claim that Britain is "losing jobs" when Britain's unemployment rate is half that of the Eurozone. (BfS briefing 15/6/00)

The Social Partners will meet to discuss rules on temporary work - the last and probably most difficult round of talks on "atypical" working conditions. Agreeing common rules to govern the triangular relationship, which includes an employment agency, will inevitably be more difficult. (European Voice 11/5/00)

We have 3.2m employed in work on exports to the EU and they have 3.7m jobs involved in trade with us. (April 2000 National Institute of Economic and Social Research (http://www.niesr.ac.uk))

A 62 year-old lady from Soham, Cambridgeshire, applied to the Cambridge Enterprise Agency for free computer training. The offer of IT training had been proudly announced in the Cambridge Evening News as funded by the European Social Fund. Several weeks later the Agency manager phoned up to say that under the EU European Social Fund rules, she was too old! No free training could apparently be offered to any woman over 60. The Campaign for Independent Britain took her case to an Industrial Tribunal. Just before it was due to be heard, the Enterprise Agency caved in and Offered the lady £2,500 compensation for the failure to provide appropriate training. (Independence, Journal of the Campaign for Independent Britain, Issue Number 41)

Although the EU is not yet attempting to control conditions at home for "teleworkers" it is thinking about it - Ed: The European Commission report to be published later this month on 'Strategies for Jobs in the Information Society' will examine ways of ensuring more European citizens become more 'e-literate'... The report will also touch on the complex question of how to apply the Union's health and safety rules to the increasing number of Europeans who use IT to work from home. While 'telework' has been hailed by many as a godsend, which has allowed millions of people to strike a better balance between their private and professional lives, it does have a down side. Some employee's organisations have, for example, expressed concern that it is almost impossible to check on the working conditions of people who carry out their professional activities at home. Commission officials stress that the institution will not be putting forward formal proposals for regulating telework at this stage, but will try to feed ideas into the debate over how new working practices should h e controlled in Europe "We want to encourage telework and other flexible working practices without setting off a rush to the bottom (sic)", said one. (European Voice, 6 - 12 January 2000.)

In a clash reminiscent of his war with Militant Tendency in the Eighties, Neil Kinnock walked into a bruising confrontation with a new left-wing enemy, the the powerful staff unions in the Brussels bureaucracy. They threatened to bring the EU's civil service to a standstill in protest. They accused him of attempting to drive through a "Thatcherisation of the European public service". Mr Kinnock said he was astonished to discover that 25 members of the commission staff were working full-time for internal unions, at huge cost to Europe's taxpayers. Another 25 work for staff committees, who assist bureaucrats with day-to-day administrative inquiries. Social dialogue between unions and the commission frequently involve up to 100 people. Rather than discussing real reform, the meetings often end up in tortuous debate on trivial subjects. He said unions would from now on have to provide proof of their membership figures before the could take part in negotiations on staff conditions and rules. Any union with less than 5% of the 21,000 total of commission staff would be excluded from talks (Daily Telegraph 20/10/99)

More than 400,000 migrants arrived in Britain last year, among the highest number on record, to take advantage of the low unemployment rates. Most were job seekers from other European Union countries who are able to work in Britain without restriction under the open borders policy. If the 58,000 refugees and asylum-seekers and 16,000 detected illegal immigrants were added that figure, the total would be nearer 500,000. With unemployment in Britain close to 6%, residents from Italy and Spain are arriving to look for jobs that are harder find in their home countries. No single event or period in history has brought so many people to these shores in one year. During 1998, however, about 224,000 people left Britain, leaving a net migration figure of 178,000, nearly double that for 1997 and 1996. (Daily Telegraph 1/12/99)

A family man with two children and a working wife on two thirds of average wages takes home the following pay:

(OECD/ Sunday Telegraph 17/10/99)

Part-time employees are to be given more generous legal rights and entitlements than required by European Union law, under draft government regulations. The proposals are certain to anger British employers already concerned about rising costs and red tape. The Department of Trade & Industry has calculated the regulations will add up to £30 million to annual business costs. The document proposes that employees who believe their rights have been infringed can ask their employer for a written statement of reasons for their treatment, which must be supplied within 14 days. Failure to do this will count against the employer in a tribunal. (FT 26/11/99)

Employing a nanny is costly enough already. But it is set to become even more expensive following the implementation of a little publicised clause in the European Working Time Directive. This clause lays down that all UK employees, including nannies, have entitlement to four weeks paid holiday year. In addition to providing paid holidays, employers must pay National Insurance contributions on the nannies' behalf. (FT 20/11/99)

Total costs of employing someone, including employer's National Insurance, etc.

Table published in Capital, French business monthly, August 1999. (Eurofacts 8/10/99)

CAPTAIN David Austin, a senior commercial pilot, sat at home in Suffolk last week watching the furore over France's refusal to accept the European Union's decision to lift the beef ban with a weary sense of deja-vu . He is one of several hundred British airline pilots recently made acutely aware of France's insouciance towards EU rules, because it has put them out of work. On July 1 new Europe-wide rules came into effect, confirming that aircraft commanders could continue flying until they are 65. But, at almost the last minute, the French government announced that it refused to accept this rule. The age-limit must be 60. Furthermore, no airliner commanded by a pilot over 60 could fly over French air space.- (C Booker Eurofaq posting 3/11/99)

The Red Mill Snack Company BV in the Netherlands received the Dutch government's instructions on the Working Time Directive with three pages of advice on how to meet its requirements. Red Mill Snack Foods Ltd in Staffordshire received its instructions from the Department of Trade & Industry on the same directive on 134 pages. (Sunday Telegraph 18/7/99)

The requirement for the company to observe stock exchange rules overrides its obligation under European Union legislation to consult employees on redundancies as a result of a merger, according to an UK employment tribunal of ruling. The ruling is the first test of EU legislation on collective redundancies in Britain. The tribunal upheld Refuge Assurance's contention that it was not breaking the law when it did not consult its employees over redundancies before notifying the Stock Exchange in its merger with United Friendly three years ago. MSF, the technicians union, intends to appeal against the judgement and to complain to the European Court that the UK has not properly transposed be EU directive into its domestic law. (Financial Times 26 June 1999)

Employment agencies' association, FRES, reports that the Government wants to ban fees for introducing temporary workers as permanent staff. As there is no dissatisfaction with the current system, it comes as a very strange move. In fact, "170,000 people find jobs this way each year", said Christine Little of FRES. It gives both parties a chance to see if they're suited. Agencies will have to avoid the income drop by finding people 'permanent' work (from scratch), even though neither employers nor temps might want a 'permanent' situation. It doesn't totally ruin the 'temp' market, but it will impact it - again, who benefits? This proposal does not prejudice "European Level Agreements". (Southern Cross, No 562, 28 July 1999) Is this another harmonisation measure - Ed?

Part-time employment in Germany's retailing, wholesaling and catering industries fell by 106,000, or almost 6%, in a single month following new rules on lower paid employment introduced by the centre-left government. Part-time employment in the hotel and restaurant industry was 14% lower than in April a year before. The figures will fuel industry concern that the rules on the so-called DM630 jobs are seriously competing labour market flexibility and stifling service industries. The German hotel and restaurant association yesterday reported employees were quitting en masse in the sector. The new law is bureaucratic, complicated and counter-productive, said the association's director. Some 10% of retailers had reduced opening hours because of labour market in flexibilities. DM630 jobs have been liable to social security contributions, as well as tax rates of up to 50% if those employed have income from other sources. (Financial Times 9 July 1999)

The European commission announced that it would take Spain and Italy to the European court of justice over their refusal to recognise lawyers, architects and doctors from other EU countries. The commission is taking action after complaints from foreign professionals that they encountered too many obstacles to setting up shop. (Financial Times 13 July 1999)

RJB Mining has been confronted by legal challenge from a group of key underground workers over the way it operates working time directive. In what is believed to be the first case of its kind since the introduction of the controversial EU measure, Nacods, the mining union representing the deputies has started a High Court Action, alleging that RJB is breaching the terms of the directive by asking them to work longer than 48 hours. A company spokesman said "we feel it is unreasonable for the union to use this legislation in support of pay demand." (Daily Telegraph 4 February 1999)

William Marshall's working day starts at 7 a.m. when beer is delivered to the Toby Jug pub in Castle Bromwich, that he manages. It ends a punishing 17 hours later, aligning midnight, when the bar staff leaves. He is taking legal action against his employer, Bass Taverns. The test case will be an important indication of the extent to which rules limiting the working week to 48 hours applied to senior managers. If he wins, it will not only affect publicans; other industries will find it harder to argue that staff with management responsibilities are exempt. The year after the working time regulations were introduced generated slightly more than 2, 500 claims to employment tribunals. Less than 5%, but still a headache for some employers. He locked of the white-collar workers do overtime simply as a result of their workload, the guidelines now make clear such work will count towards the 48-hour limit. The requirement to work very long hours may also be used in a discrimination claim. A working mother successfully claimed against South African Airlines because it regularly made her work 16-hour shifts. The tribunal said this amounted to indirect discrimination because it did not allow the employee to meet childcare obligations. But employers who offer working mothers flexible hours may come under attack from employees forced work long shifts because they are not parents. (Financial Times 21/12/99)

EUROPEAN trades union leaders are threatening mass industrial action unless employers comply with their demands for higher wages and better conditions for 60 million members. In what constitutes the biggest threat to the competitiveness of European companies since the introduction of the European Union's Social Contract, the Confederation of European Unions (ETUC), which includes the British TUC, last week created a Euro-wide bargaining committee to negotiate higher and more equal wages for its members. Trades union leaders attending a conference in Helsinki to mark the start of Finland's six-month presidency of the EU signalled their determination to create a "single European Trade Union" to complement the single currency. And in a move that will send shudders through the boardrooms of Europe's leading companies, union officials threatened to initiate "cross-border sympathy action", including strikes, if their demands are not met. Talk of a Europe-wide trades union prompted a furious response from British politicians and employers. (Sunday Telegraph 4 July 1999)

The former chairman of Thompson RCM, a French company, was fined £9,000, having been found guilty of allowing his executives to work overtime. He had neither recorded the overtime they worked nor had he paid them for it. (The Times Business News 24 June 1999). Job inspectors staked out his factory and discovered his employees worked too hard. Their methods include hanging around company car parks, noting number plates. They also check computer records and office diaries for evidence. The inspector's raids marked a break with a long-held assumption that cadres - skilled salaried professionals- are above the rules governing the working day. In one instance, the inspectors tried to make Alcatel pay 3,000 fines, each of more than £500, after noting down every daily and weekly infraction of the employment conventions. (D Telegraph 12/1/99)

The European commission is to ask the European Court of Justice to impose a fine of more than £67 million on France over its refusal to annul legislation banning women from working at night. If approved by the court the fine will grow by more than 142,000 euro for each day that France fails to end the ban. According to the Commission, the ban violates European Union laws on equal treatment for women in the workplace. (Financial Times 22 April 1999)

The German government has drawn up controversial plans for a European wide incomes policy to solve the continent' s continuing unemployment crisis. It urges that wages be harmonised across EU member states to boost growth and employment. It carries an uncomfortable echo of the incomes policy pursued by the Labour government in the Seventies which ended in the Winter of Discontent. The plan will be presented to an thing employment summit in June. Albert Bruckner of the German Institute for Economic Research in Berlin said ultimately the this could achieve the opposite of what the government wants and actually increase unemployment. (Sunday Telegraph 28 March 1999)

Responding to the call for greater flexibility in working arrangements the Commission has proposed a directive on fixed-term working contracts, as follows:

1) Member States. shall… introduce in a manner which takes account of the needs of specific sectors and/or categories of workers, one or more of the following measures:

a) Objective reasons justifying the renewal of such contracts or relationships;

b) The maximum total duration of successive fixed-term employment contracts or relationships;

c) The number of renewals of such contracts or relationships.

2.Member States shall determine under what conditions fixed-term employment contracts or relationships:

a) Shall be regarded as "successive";

b) Shall be deemed to be contracts or relationships of an indefinite duration. (Week in Europe 25/3/99)

Fixed term contracts are used in many EU countries as a way of giving employment where the cost of employing staff full-time is prohibitive, e.g. Spain. It is also the preferred method for freelance workers who value their independence. They will be denied this freedom. The objective of greater flexibility is contradicted. (Various sources and FT letter 1 Feb1999)

Employers considering new EU laws such as those affecting working time are taking precautions. These come in the form of legal protection insurance policies which provides them with proper legal defence if they fall foul of the law. Clarke Roxburgh Insurance Brokers in Worcestershire is running a series of client seminars explaining the requirements and difficulties posed by the new laws. (Hereford Times 20/11/98)

The Advertising Standards Authority accused the government of misleading the public over its claims that a 48-hour week will make workers more productive. The ASA has ruled that while the new legislation should improve safety and workers health, it'll have no impact on productivity. The dominant purpose of the European legislation was to protect safety and health, not directly to improve business productivity. The claim is misleading. (Sunday Telegraph 11 April 1999)

A detailed costing of the Maastricht Social Chapter and Working Time Directive by the Centre for Policy Studies arrives at a business burden of £4.6 billion a year, with an increase in unemployment of approximately 800,000 taking British levels of unemployment up from 6.3% to 9.2%, much closer to the EU average. (Sunday Telegraph business 13 June 1999)

The Working Time Directive is a nightmare for employment agencies. Temps are entitled to holiday pay but they often registered with several agencies. The cost of keeping records of holiday entitlement could put some agencies out of business. It is illegal to reduce pay rates in order to fund the holiday pay. The Department of Trade and Industry, however, refused to say who should pay the holiday pay. It will be for the courts to decide. (Guardian 28 September 1998)

Lord Haskins, chairman of the Better Regulation Task Force said the lack of charity and inadequate consultation meant the Working Time Directive was going to be a dog's dinner at the end of the day. But the problem was the rushed way the EU directive was transferred into UK legislation. The task force made extensive comments but was not listened to. There is little doubt the government will have to come back to it. Stephen Byers, Trade Secretary, said the rules will be rewritten to make them far simpler to comply with. (Daily Telegraph 21 April 1999)

The government claimed that the working time directive did not apply to schoolchildren. Downing Street dismissed the suggestion as pretty absurd. However the European commission insisted the directive entitled newspaper delivery boys and girls to four weeks paid holiday. The Commission said the EU working time directive covered all workers, regardless of age, including the UK's 30,000 newspaper delivery boys and girls. (Financial Times 12 February 1999). Charter of Fundamental Rights states plainly that "the employment of children is prohibited", and that the earliest teenagers can work, even part-time, is at the minimum school leaving age. (The Scotsman 15/11/00)

Perks for Eurocrats, which cost British taxpayers millions, are to be axed according to a report on the biggest overhaul of the Brussels gravy train for 40 years. Golden farewells, which give officials 70% of their salaries for 5 years after retirement, are to go, along with generous travel allowances. The jobs-for-life status will go. There will be a watchdog scheme for the observation of professional inadequacy. Invalidity benefits, which allow people to retire on ill health grounds to receive a full pension as though they worked to 65, will be reviewed. (Independent on Sunday 15/11/98)

Unemployment rates

Standardised data from Standard & Poor (European 17/8/98)(FFP)

The UK has one of the smallest pay gaps in the EU between top-paid managers and the lowest paid employees. Top managers in the UK earned 2.47 times the lowest paid. Italy had the largest gap at 3.99 times the lowest paid. The smallest gap was in the Netherlands with 1.94. (The Week In Europe 9/8/98)

Padraig Flynn the Social Affairs Commissioner has stated that if the so-called European Social Partners, employers and unions, cannot agree binding rules on consultation of employees including sanctions against offending firms, he will force through legislation anyway. The proposed law would force companies to reinstate workers laid off without first being consulted. The law would be part of the Social Chapter. The UK government said it would resist measures that create new burdens and costs for business. (Daily Telegraph 5/11/97). Sanctions would make legally null any decisions taken without following standard consultation procedures. This regulation will apply to all workers in the EU. (FT 5/11/97). Works Councils will have to be created by any business of more than 20 employees. Sanctions will be taken against companies disobeying the proposed directive. (FT 21/7/98)

Companies who need to lay off workers would have to pay all the costs of retraining them to find new jobs. The extra bills, effectively a tax on job losses, could deal a deathblow for a struggling firm. Those who failed to pay up would face fines. (D Mail 23/11/98)

Gordon Brown, Chancellor of the Exchequer, claims that Europe is listening and following Britain’s example in reforming labour markets by introducing flexibility. In France and Italy labour flexibility is a dirty word, synonymous with nasty Anglo-Saxon capitalist excesses. These countries have rammed through 35-hour weeks accompanied by increased powers for labour inspectors and hundreds of extra rules allowing employers to be policed, charged and fined. (Eurofacts 19/6/98) — France's conservative-dominated parliament voted on Thursday to alter labour laws so that many employees will again work a 39-hour week instead of the 35-hour week introduced under Socialist legislation in 1998. (Dec. 19, 2002)

A consortium of Zeneca, Kvaerner and lawyers Eversheds is to challenge all EU countries’ opposition to pan-European pension schemes. They intend to bring a test case to the European Court of Justice. National tax authorities will oppose them out of fear that they would lose by allowing tax relief on contributions and be unable to tax the pensions when they are paid out. The proposed EU directive on pensions will not address the tax problems at all owing to the Commission’s experience of 36 defeats by member states. Tax authorities are very worried that companies will be able to shop around for the best place to operate pension funds. (FT 24/6/98)

Tony Blair has made enormous efforts to reassure business that New Labour does not wish to burden employers with unnecessary regulations that might erode competitiveness. By the end of 1999 the UK will have the most intricate and comprehensive framework of labour legislation it ever had. The barrage of legislation signifies a break with the so-called voluntarist tradition in UK industrial relations. Gone are the non-legally binding deals between companies and unions that kept the law and the state at arms length from workplace practice. Britain will shift from the flexible US model to the social model developed in Europe. (FT 18/6/98). Under the Social Chapter it would be impossible for a government to abolish the national minimum wage. (Eurofacts 7/8/98)

Working days lost due to strikes in 1995, per 1000 workers:

(Labour Market Trends HMSO 1997)

The Government’s White paper Fairness at Work will move the UK much closer to the system on the European mainland. Employment rights will be extended to part-time workers, agency workers, homeworkers and sub-contractors. Family friendly policies will have to be introduced. Employers can expect to face bankruptcy if vexatious and litigious workers pursue claims for high compensation from industrial tribunals. (FT 23/5/98)

Employers should be punished financially if they fail to train workers to make them more employable says a Commission report for the Heads of Government. (FT 27/4/98)

The Commission launched a drive against moonlighting that is estimated to be worth up to 16% of the EU’s GDP. This corresponds to up to 28 million jobs. (CEC Week in Europe 9/4/98). The Black Economy is deeply entrenched in Europe. It has one straightforward cause: crippling taxes. It is accepted practice in Europe because whole swathes of the political world in France, Belgium and other countries are corruptly financed. In the 1980’s it was revealed that the overwhelming bulk of the French Socialist Party income came from "false bills", or payments made for building permits. In Belgium to hire a painter costs Bfr1,218 an hour, of which the worker gets only Bfr287. Nearly 80% should be paid in tax and social security. Even VAT is charged on the social security payment! In France it costs Ffr160 to pay a gross salary of Ffr100 an hour, of which the worker will receive only Ffr55 net. If the Commission succeeds in imposing greater penalties for moonlighting it will only penalise the poor. (The European 6/4/98)

The black economy in Sweden employs up to 800,000 people, 14.5% of the working population, and deprives the government of up to £3bn in tax revenues. Sweden has the second highest tax burden in the developed world, after Denmark; the top marginal rate is 59%. (FT 27/5/98)

The EU Commission is trying to persuade the French to allow qualified foreign ski instructors to work in France under the mutual recognition of professional qualifications. The response of the French is to impose Olympic standard slalom and dangerous off-piste mountain safety tests before allowing them to teach in French resorts (FT 8/2/97)

The Luxembourg summit agreed that the level of unemployment is not the responsibility of the Union, but a task to be accomplished by each country separately. At the same time they have taken away from member countries all the tools of demand management. Fixed exchange rates and full capital mobility prevent central banks from fixing interest rates. Narrow budget limits make fiscal policy impossible. The European Commission has no resources to spend on Union-wide investment projects and the European Central bank is enjoined exclusively to aim at price stability. The sterilisation of demand policy tools seems to reflect the view that unemployment is mainly due to labour market inflexibility. Even removing the rigidities will not restore employment without a recovery of investment. (FT Personal View Jan 1998)

The EU regulations limiting the hours that can be worked by young people is to be applied to pony-mad girls who spend their spare time helping out in stables. Anyone under 13 is forbidden to work at all. Although they are keen volunteers the National Child Employment Network says they are better off not frequenting stables. This is a bitter disappointment to children who cannot afford their own ponies. The regulations may also apply to any other voluntary work, such as hedge clearing, or bob-a-job tasks by scouts. (BBC 1 TV Country File 9/11/97)

Stena Line of Harwich only use Dutch crews because EU approved tax breaks were increased for shipowners. Hundreds of UK jobs have been lost. (BBC R5 15/10/97). A directive from the Commission stipulates that ferry services must pay non-EU crewmembers exactly the same as EU citizens. This is to counter a fall in the employment of EU nationals of 37% in 10 years. (CEC 30/4/98)

Six million part-time workers will now get the same benefits as full-timers. They will also carry the same social costs creating widespread unemployment amongst employees of small firms. (BBC R4 Europe Now 5/10/97). The new regulations grant part time workers holiday pay, sickness pay, pensions and security of employment (FT15/12/97)

After taking account of national differences in pricing and purchasing power the average UK employee receives a higher net hourly income than most of the EU, including France, Germany and Sweden. This is due to the lower amounts UK workers pay in taxes and welfare contributions. (FT 11/8/97)

A London tribunal has ordered a small businessman to pay £2,000 compensation to a woman who applied for a job for which she was considered unsuitable. She was pregnant and the job involved heavy lifting. Although the woman was not offered the job she was entitled to compensation under EU law. The European Court of Justice has ruled that it is unlawful to dismiss a person just because she is pregnant. The rule applies equally to a person refused employment on such grounds. (Sunday Telegraph 31/8/97)

At a time of increasing concern about ageism, the prevention of employment of older people, the EU Commission has a policy of never employing persons over the age of 35 in full time jobs. (FT 13/9/95). The EU Ombudsman is now investigating this policy. It contradicts express anti-discrimination clauses in the Amsterdam Treaty. The Commission is to lift the age ban from 32 to 45 after complaints from the Parliament and the European Ombudsman. (D Telegraph 23/1/98). Even though it is not clearly defined in the staff regulations, the EU institutions have accepted a common practice, which means that anyone over the age of 45 are excluded from recruitment competitions just because of their age. The victims of the EU practice have in most cases been women. The age limit only apply to certain positions classified as junior-positions. According to the EU Ombudsman the common practice is very close to being age discrimination, which is in conflict with the EU's own Charter of Fundamental rights. The EU age limit is also in conflict with the EU employment strategy created by Commissioner Anna Diamantopoulou and accepted by the Council, which clearly states that the EU wants the European labour market to be open and attractive to citizens over 50 years old. However, according to the EU Ombudsman Jakob Söderman the real tragedy is that the victims of the EU age limit in most cases are women. (EUobserver.com 23.11.2000)

Part-time lecturers on adult education courses all get a redundancy warning in June. It is a precaution which colleges must take following EU regulations. This is because a few may not have courses to run in September if the take up is too low. These notices are causing considerable distress to teachers and colleges have to try to persuade them they are just a formality (The Journal 13/7/94).

Members of the Association of Foreign Lecturers in Italy suffer discrimination based on nationality. Italy downgraded lecturers who teach and examine students to the status of laboratory technicians and denied them acquired rights for years of service. The Commission held secret meetings with the Italian State while telling the Association that no meetings had taken place. The Association has obtained a copy of a telex confirming that such meetings did take place. The Association, as the principle complainant, was denied the possibility to challenge manifestly false data sent to the Commission by the Italian government. (European Voice 4/5/00)

Britain sues Italy in European Court of Justice. Up to 1,500 foreign lecturers (600 of them British), suffering widespread discrimination throughout Italy, have received a major boost to their campaign for equal treatment in the single market. Foreign Secretary, Robin Cook informed them this weekend that the Foreign Office in conjunction with Helen Liddell minister responsible for the single market at the Department of Trade and Industry have informed the European Commission of the British government's intention to intervene in favour of the foreign lecturers in the fourth discrimination case currently pending in the European Court of Justice in Luxembourg. The foreign lecturers have gained the support of the European Parliament in two resolutions and have won three cases in the Luxembourg court - but parity of treatment with their Italian colleagues still evades them. Scots born Chairman of the Lecturers' Association, 48 year old David Petrie, said: After years of constant harassment we are delighted with the government's position. We have been sacked, denied access to teaching posts and denied increments for years of service over a period of 12 years - in more than 25 universities - a disgrace and the clearest mass systematic breaches of the treaties in the history of the EU. Colleagues refusing to be bullied out of rights conferred upon them by the treaties have been persistently dragged through courts in Verona, Bologna, Salerno, and Naples. In Verona the Italian supreme court recognised that myself and others should be paid salaries equivalent to associate professors - but the university then fired 22 of us for "insubordination" for refusing to be downgraded to laboratory technicians. I am expecting the same supreme court to quash the sackings allowing us back into our respective faculties by January, if not before. Now that one government is intervening in the Luxembourg Court we expect it to be easier to engage EU ministers directly. (PRESS RELEASE The Association of Foreign Lecturers in Italy 15/11/99). THE English novelist and ex-English teacher Tim Parks is one of six former lettori to be awarded £100,000 by a Bologna judge. The award covers backdated salaries to associate professor level, and full legal expenses. Parks' novel "Europa Europa" involves the lettori cause and was shortlisted for the prestigious Booker prize. In a further escalation of the long-running lettori dispute, a Scots MEP Neil MacCormick, who is championing the lettori's claims, has raised the possibility of punishing Italy by suspending some of the rights it enjoys as an EU member state. (EL Gazette (London) April 2000)

Young persons aged 15-18 are "adolescents" if they have left school or "children" if they have not. (D Telegraph 7/4/93)

The EC Pregnant Workers Directive will make employers contribute to the cost of maternity pay currently paid by the government. This will make it more expensive to employ women than men will. (Chamber News Jan 1993).

Youngsters to be forced to give up their paper rounds (CEC). This is denied by the CEC but the EEC will introduce restrictions on working hours, including a ban on weekend working (STele 17/4/94). The UK has a four year exemption from the ban on teenagers working for more than 12 hours a week (CEC). Article 31 of the Charter of Fundamental Rights says: "The employment of children is prohibited. The minimum age of admission to employment may not be lower than the minimum school-leaving age." This could end the teenage paper-round and even Bob-a-Job. (Daily Telegraph 21st September 2000)

The Working Time Directive, 93/104/EEC, limits the working week to 48 hours, the working day to 13 hours and a night shift to 8 hours in 24. Night workers must have regular free health assessments. (Dire Directives Jan 96). The European Court has ruled that it is legal to use health and safety legislation, which only requires qualified majority voting, to pass measures that involved improvements in the working environment. This nullified the UK opt-out of the Social Chapter and means a wide range of social measures can be introduced by another route. The working hours directive is only the first of many which will raise our labour costs to EU levels. (FT 12/7/96) The UK Conservative government has vigorously, but vainly, opposed the Working Time Directive. The cost to UK businesses will be £2.3bn a year; small businesses will face particular difficulties according to the government (FT7/12/96). The directive will have a severe effect on boarding schools many of which will be forced to close because of the cost of employing all the extra staff to cover for night duty and weekend work. (S Telegraph 9/3/97). The Engineering Employers Federation have accused the government of gold-plating the directive by applying criminal law. Although it resisted the new EU laws the government has provided for compensation to workers of £11,300 if required to work for more than 48 hours. The directive does not specify such a heavy penalty, it simply implies that compensation should be for the actual loss suffered. (FT 7/3/97). An EC White Paper recommends a huge extension of the working hours limit to exempt sectors such as transport, fishing, air travel, etc. All workers except non-mobile staff will be covered. (D Telegraph p4 11/4/97). Editor's note: the working hours directive has a hidden agenda, to make-work. It is hoped that the measure will create more employment. The French have taken the policy much further with a make-work scheme that limits the working week to 35 hours. The Italians are considering similar measures. The tragedy is that the regulations are aimed to hit the UK that has the longest working hours but some of the lowest unemployment. UNICE, the employers organisation said of the French 35-hour week, a durable strategy for employment cannot be built around working less hours. (D Telegraph 13/2/98). The government was accused of short circuiting the parliamentary process. MPs should have 40 days to scrutinise the new regulations. They were published a week before the parliamentary recess. (FT 24/7/98). The regulations include workers on temporary contracts and the self-employed. The regulations are extremely complex and practical application in some situations may be impossible. A worker willing to work more than 48 hours must sign a written agreement. It is possible for an employer to refuse to employ a person who will not sign such an agreement but this concession will be reviewed in 2003. It is quite likely that it will then no longer be possible for a worker to work more than the average of 48 hours a week. (FT 3/9/98)

Britons work 1,875 hours a year compared to the Germans who only work 1,525 hours. British shops are open 96 hours a week, the highest in the EU, compared to only 68 hours in Germany. (D Telegraph 13/2/98)

The working time directive does not define what is working time. It is possible that time spent on business on a train, in hotels or even playing in the company cricket team can count towards the 48-hour target. When people work for more than one employer both jobs seem likely to count towards the 48 hours. An employee who works in a bar in the evening and decides to reduce his d