Labour law reform

Introduction of a Labour Reform Bill: These reforms are under Government discussion and the implementation date is not yet known. The Bill seeks to modernize the labour relations system especially regarding collective bargaining. Its aims to (a) extend collective bargaining to more employees, (b) strengthen unions by recognizing their exclusive ability to bargain collectively, (c) strengthen the role of the Department of Labour as a qualified technical agency.
The Bill’s main aspects include:
(1) the collective bargaining process can be between one or more employers with one or more unions;
(2) the ability to bargain collectively is extended to employees currently excluded;
(3) only trade unions will be able to negotiate collectively, as a general rule;
(4) benefit extensions under collective bargaining agreements (CBAs) will be no longer be a unilateral employer`s prerogative;
(5) no staff replacement will be allowed during strikes; not even reassigning roles within the non-striking personnel;
(6) CBAs will automatically apply to employees who join the union;
(7) the trade union will have rights to receive certain information:
– Periodical information duty: specified financial information should be supplied to the union within 30 days after it becomes available.
– During the bargaining process: specified information should be supplied to the Union within 90 days prior to the expiration of the current CBA.
– Annual information: certain specified information should be supplied when available by the Company.

Action required: Please note that this reform Bill is being discussed in Congress and, therefore, may change as the legislative discussion develops. Employers should nevertheless keep an eye on developments especially where they will clearly be affected by the current proposals.

Collective dismissals

Introduction of a Collective Dismissal Bill: These reforms are under Government discussion and the implementation date is not yet known. The reforms would introduce a collective dismissal concept for dismissals affecting at least 10% of employees in companies with 100 workers or more within a 60 consecutive day period.
Collective dismissals would require prior authorisation based on:
(a) Legal Grounds: unforeseen circumstances, force majeure and needs of the company;
(b) Parties having proposed solutions to avoid or mitigate dismissals;
(c) The employer providing 30 days’ notice of intention to dismiss to all interested parties, giving reasons for the dismissal;
(d) Supply of economic background information supporting the dismissal.

Under the reforms the lack of authorisation carries the possibility of employee re-instatement, employee compensation and fines.