Collective Bargaining

The executive board of the Confederation of Enterprise (SA) unanimously decided to uphold the collective agreement signed with the unions in April 2019. The collective agreement covers over 100,000 workers. Valid until November 1, 2022, the agreement raises minimum wage by ISK 90,000 (€550) over the contract period. Due to the current economic crisis, caused by the global pandemic, the Confederation of Enterprise considered the premises for the wage agreement broken.

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Applications for support for the month of September started for employers and enterprises for which the Government's job preservation measures (ORM) were extended until the end of the year. For those enterprises eligible for part-time support, which was introduced in the middle of the year, the deadline for submitting applications for the period from September to the end of the year expired at the end of August, and applications for support start in October.

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The Chamber of Commerce (HGK) informed that Croatia needs a more flexible labour legislation that would put emphasis on teleworking and the possibility to lay off workers more easily than now is the case. Organising remote work in a better manner and flexible employment contracts are to be regulated by the new law, on which the Labour Minister and 35 business people presented their views at a meeting organised by the HGK in Zagreb.

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During the peaceful protests, organized by the trade union confederation CGTP, workers wearing masks and keeping a safe distance urged the country’s Socialist government to raise the national minimum wage from the current €635, the lowest in western Europe, to €850.

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On September 27th, voters in Geneva approved what is set to become the highest minimum wage anywhere in the world. When implemented, workers will be paid a minimum of CHF 23 (€21) per hour in the western canton.It makes Geneva the fourth Swiss canton to have approved a minimum wage, although only two currently have fully implemented one.

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A wide-reaching bus strike in combination with increasing COVID-19 cases is creating concern amongst health services. The strikes, which took place in several locations across the country are set to continue. Many people are likely to have to find other means of transport, leading to concerns as to whether appointments at hospitals can be kept and employees can get to work.

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Young people have been particularly hard hit by the pandemic's disruption to the jobs market. The under-25s saw the biggest rise in unemployment during lockdown, and some graduate or entry level roles attracted thousands more applications than usual.

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Despite the wish of the Association of the Metal Technology Industry (FMTI) to postpone the talks, the negotiations about a new agreement in the metal industry started on September 24, 2020. After one round of negotiations, social partners struck a collective agreement applicable to the sector’s 190,000 employees (40,000 of whom are currently on short-time work). They agreed on a wage increase of 1.45% from November. This is the same as the inflation rate of the past twelve months. Companies that perform well should pay out a voluntary corona bonus of €150 to their employees.

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The government closed a deal with trade unions to gradually close the coal mines by 2049. In response to demonstrations by environmentalists but at the same time pressed by miners’ underground protests against closures, the government and the unions came to a deal. There will be no compulsory redundancies, with workers moving to mines that remain open until they retire. The first mine will probably already close in 2021.

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Two plants with almost 400 employees will be closed as part of the tightened austerity program of auto supplier Mahle. A spokesman of the company did not want to confirm that around 100 temporary workers were also affected by the measure. The company has cut 6,700 jobs worldwide since 2018. The present measure is being negotiated with the works council.

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