2.2.3.1. Rules for shop stewards in the LO/DA field
As Denmark has no industrial unions, large workplaces may have up to 20 - 30 national trade unions which have concluded agreements with the enterprise. To look after the interests of the national trade unions at the individual workplace, the individual trades establish joint trade union clubs, the chairmen of which function as shop stewards. These may elect a joint union delegate.
Each national trade union (industrial workers union, unskilled workers' union, etc.) has concluded agreements with the employers concerning rules for shop stewards.
The shop steward is authorised to enter into agreements with the employer on local pay and working conditions. If this does not result in a satisfactory arrangement, the shop steward may refer the case to his/her trade union. A shop steward can only be dismissed if absolutely necessary. The employer has to appear at a mediation meeting with the trade union for the purpose of proving that the dismissal is justified. If a shop steward is dismissed without good cause, the dismissal may be declared void or the employer may be ordered to pay him/her up to 9 months' wages in compensation.
2.2.3.2. The Education Fund
The employer pays a small amount per hour of work for the educa-tion of shop stewards. The money is administered by the Trade Unions' Education Fund.
2.2.3.3. The Co-operation Committee
Agreement on co-operation and co-operation committees of June 1986.
Co-operation between management and employees within the enterprises
The Danish Employers' Confederation (DA) and the Danish Federation of Trade Unions (LO) concluded a revised Co-operation Agreement in 1986 as the basis for co-operation between management and employees within enterprises in the private sector. Similar agreements cover the public sector.
The central organisations are agreed that continued improvement of the corporate sector's competitiveness and employees' job satisfaction are prerequisites for the continued development of enterprises and for promoting the welfare and security of their employees.
Development and increased efficiency are joint aims for management and employees. The use and development of new technology are vital to competitiveness, employment, working environment and job satisfaction.
The parties have agreed to achieve these aims through systematic co-operation between management and employees at all levels.
In enterprises with 35 employees or more, day-to-day co-operation should be promoted and observed by a co-operation committee composed of representatives of management and employees.
For the purpose of the work performed by the co-operation committee, management shall keep the committee informed about the following matters of relevance to the enterprise:
– its financial position and future prospects, including the volume of orders and market conditions, as well as production matters;
– employment prospects;
– major changes and any reorganisation planned, e.g. the application of new technology to production and administration, including the introduction of computer-aided technology and systems.
In order to ensure that all employees are kept informed about the work performed by the co-operation committees, the committee shall develop and promote specific communication methods.
The co-operation committee has the following objectives:
– To establish principles for the local working environment and human relations, as well as principles for the personnel policy pursued by the enterprise towards the employees represented in group B of the co-operation committee.
– To establish principles for training and retraining employees who are to work with new technology.
– To establish principles for in-company compilation, storage and use of personal data.
– To exchange viewpoints and consider proposals for guidelines on the planning of production and work and the implementation of major changes in the enterprise.
– To assess the technical, financial, staffing, training and environmental consequences of the introduction of new technology or changes made in existing technology, including computer-aided technology and systems, where the introduction of such technology or changes is extensive.
– To inform employees about proposals for incentive pay schemes, including particulars about their basic structure, effects and application, and to inform them about the possibility of setting up funds for educational and social security purposes.
Where the introduction of new technology (cf. above) results in redundancies, the enterprise shall seek to transfer or retrain the individual employees for other work functions in the enterprise.
Employees who are dismissed due to the introduction of new technology shall be given adequate time off to participate in a labour market introduction course, as arranged in consultation with the Public Employment Service during the period of notice. The duration of the course may not exceed 4 weeks.
For persons employed continuously with the same enterprise during the preceding 12 months, course fees and any loss of wages shall be reimbursed by the enterprise in so far as such expenses are not covered by the public authorities.
In dealing with special matters in both co-operation committees and subcommittees, either party may call in experts on the matter in question.
Enterprises employing 35 persons or more within the same geographical region shall establish a co-operation committee where proposed by either the employer or a majority of employees.
The co-operation committee is a joint body with equal representation of management and employees.
In groups with separate subsidiaries which co-operate in sales and production, it is recommended to set up a group committee to be composed of representatives from the subsidiaries' co-operation committees.
Group committees shall discuss matters of common interest to the subsidiaries.
2.2.3.4. Co-operation on the working environment
According to the Working Environment Act, which came into effect in 1977, matters concerning health and safety are to be dealt with by the enterprises themselves under the guidance of employers' and employees' organisations, and under the guidance and supervision of the National Labour Inspection Service.
The Act, which applies to all sectors of trade and industry, including the public sector, is essentially a framework act which authorises the Minister of Labour to lay down more detailed rules for the various areas of activity. These rules, however, must be laid down in co-operation with the employers' and the employees' organisations. This takes place within a body called the Working Environment Council.
According to the Act, it is the employer's duty to guarantee a safe working environment in the company in co-operation with the employees. In companies with 10 or more employees (for clerical activities more than 20), the employees elect special advisers as their representatives in matters concerning the working environment. These safety representatives, together with the supervisors in the department or area of activity, constitute a safety group. In companies with more than 20 employees, a safety committee is set up comprising one responsible employer representative, two representatives of the supervisors and two of the safety representatives.
Safety representatives are protected against dismissal in the same way as shop stewards, e.g. in the form of a longer period of notice.
Health and safety at work has always had a high priority in Danish labour market policy. The Government, in cooperation with the social partners, has drawn up an action plan ,Clean working environment by the year 2005" in order to underline that it is not only a matter of creating more jobs, but also better jobs. This action programme is based on seven visions about a clean working environment. In order to promote a better working life the Ministry of Labour has set aside DKK 105 million for the period up to the year 2000 for projects which aim at improving the working life of employees and at the same time strengthening the flexibility and development potential of enterprises.
2.2.3.5. Employee participation at board level
The board of directors is required to have at least three members elected by the shareholders' general meeting. It is responsible for the overall policy and proper management of the company. It appoints a board of one or more members, who are responsible for the day-to-day management of the company.
According to the Limited Companies' Act (1974), employees in all companies which have had an average of at least 35 employees during the preceding three years, are entitled to elect a number of representatives to the board of directors corresponding to half of the number elected by the shareholders' general meeting.
According to an administrative order of December 1980 the procedure shall be the same in groups of enterprises, though the number of workers' representatives on the board of directors of groups of enterprises shall be not less than three, and the election shall take place by indirect ballot of members of an electoral college.
Employee representation at board level is not automatic. The decision of the employees to elect members to the board of directors must be made by secret ballot. If at least 50% of those entitled to vote, vote "yes" election becomes compulsory. Similarly, where participation does exist, a ballot may be demanded to discontinue the arrangement.
Nomination and election of members to the board of directors takes place outside the union machinery. To be eligible, a candidate must be of age (18 years) and have been employed in the company for at least 12 months. The election shall be by written and secret ballot. The employee representatives are appointed for a period of four years and must resign if they cease to be employed in the company. They enjoy the same rights and obligations as the shareholder representatives on the board and the same protection against dismissal as shop stewards.
2.2.3.6. The Act on European Works Councils
With the establishment of a European Works Council or introduction of a consultation and information procedure it is now possible to provide uniform information and consutation about decisions which affect employees in several member states in parts of or the whole undertaking or group. Consultation means exchange of views and establishment of a dialogue between employee representatives and the central management or any other appropriate management level.
The objective is to ensure that employees in multinational undertakings and groups are informed and consulted about the activities of the undertaking or group so that they are in a position to estimate the consequences of these activities for employees in different member states.
It is up to the management and the employees in the individual undertaking or group to agree on the form of cooperation they want in the individual undertaking or group. They can freely negotiate whether they want a cooperation committee or any other form of information and consultation procedure, how the composition of the cooperation committee should be, the powers that should be vested in it, its functioning and the financial resources that should be made available to it.
The Act also covers agreements on the information and consultation of employees concluded before the Act came into force if these agreements cover all employees and concern information and consultation of employees on matters which affect undertakings or enterprises in several member states.
In accordance with the Danish traditions of labour market regulation, the Act does not apply if the social partners have concluded an agreement which is at least as favourable in relation to the employees as the Directive on which the Act is based.
The Act does not prejudice existing Danish agreements about cooperation committees, etc. even though the subject-matter of information and consultation under the Act covers more or less the same matters that are usually discussed by Danish cooperation committees.
The Act on European Works Councils (Act No. 371 of 22 May 1996) came into force on 22 September 1996.
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