July 2001 Baker & McKenzie Global Employment Law Alert

I am pleased to send you our web-based e-mail "Alert" prepared by Baker
& McKenzie's Global Labour, Employment & Employee Benefits Practice
Group("GLEEB"). The Alert's purpose is to provide our clients and friends
with timely updates - in a short "user friendly" fashion with hyperlinks to
articles with more detailed information on employment law developments from
around the world. Hence, the descriptive title of Global Employment Law
Alert. The July 2001 issue of the Global Employment Law Alert is included
below.

The Alert is organized into six sections - Global, Asia Pacific, Europe,
Africa/Middle East, South America, and North America. The Alert consists of
short, one-paragraph "blurbs," organized by country and region. You can
quickly scan the Alert for items of particular interest, and then click on
the hyperlinks provided for each blurb for additional information.

Please email me back if you would like to be removed from my email list, or
if you would like to receive further information.

If you are not on our mailing list for our quarterly publication, The Global
Employer, which summarizes cutting-edge developments in labor and employment
law around the world, and would like to be, please email me your physical
address and I'll be glad to send you a copy of our latest edition.

If you have any questions, please feel free to contact me.

Jordan W. Cowman
Board Certified, Labor & Employment Law
Texas Board of Legal Specialization
Baker & McKenzie
2001 Ross Avenue, Suite 2300
Dallas, Texas 75201
214/978-3015
214/978-3099 fax
jordan.w.cowman@bakernet.com

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This email contains the latest Global Employment Law Alert!
<http:\\www.bakernet.com\gel<

Baker & McKenzie

<http://www.bmck.com/gel/current.asp?submitbtn=Show+Alerts&area=calert<
GLOBAL EMPLOYMENT LAW ALERT
Baker Events Global Asia Pacific Europe & CIS Africa/Middle East
South America North America

Baker_EventsBaker Events top
VISIT OUR GLOBAL EMPLOYMENT LAW ALERT WEBSITE: To access our Alert program,
including current and past editions of the GEL Alert, please visit our
dedicated website at http://www.bakernet.com/gel. Readers can search the
current GEL Alert by category, or access our complete archive search engine
to review past GEL Alerts by topic, country, region, or date. In addition,
readers can search our Knowledge Base (K-Base) for surveys, resources, and
articles by members of our Global Labour, Employment & Employee Benefits
Practice Group. Alert Date: 7/1/01

NEW PUBLICATION SCHEDULE: Based on feedback of our readership, the GEL Alert
will be disseminated twice per month (on the 1st and 15th day of each month)
beginning in mid-July. This will ensure that our readership receives the
most timely and up-to-date information possible on breaking developments.
Alert Date: 7/1/01

Baker Events: Mexico - On July 12, 2001 a seminar entitled "The Labor
Environment Today: Challenges and Perspectives" will be held in Guadalajara,
Mexico. For further information, contact Laura Garc?a-Cruz at
laura.garcia-cruz@bakernet.com <mailto:laura.garcia-cruz@bakernet.com< .
Alert Date: 7/1/01

GlobalGlobal top
** - INCREASE IN SPENDING ON AGING POPULATIONS: The Organization for
Economic Cooperation and Development recently released a report on the
fiscal implications of aging. The report concludes that the world's
industrialized countries may have to spend an additional 6 to 7 percent of
gross domestic product on pensions and healthcare by 2050 for older workers.
See " OECD <http://www.oecd.org/media/release/ChapIV-EO69a.htm< Calls For
Fiscal And Other Reforms To Offset Higher Spending On Aging Populations."
<mailto:guenther.heckelmann@bakernet.com< guenther.heckelmann@bakernet.com
or <mailto:paul.brown@bakernet.com< paul.brown@bakernet.com Alert Date:
7/1/01

** - AFRICAN UNION LEADERS EXPRESS SOLIDARITY WITH STRIKING WORKERS: On June
5, 2001, union leaders from fourteen African countries signed a solidarity
message expressing disappointment over protracted salary negotiations with
their governments. The message urges African governments to keep promises
made to union workers in prior negotiations. Chief Government spokesman and
Information and Broadcasting Minister Vernon Mwaanga of Zambia described the
message as "irresponsible," explaining that union leaders should not comment
on matters in other countries. See " Union Solidarity In Africa
<http://www.allafrica.com/stories/200106050201.html<; ."
<mailto:andrew.j.boling@bakernet.com< andrew.j.boling@bakernet.com or
<mailto:william.j.dorsey@bakernet.com< william.j.dorsey@bakernet.com Alert
Date: 7/1/01

** - PENSION REFORM BECOMING A PRESSING GLOBAL ISSUE: On June 7, 2001, the
World Bank reported that pension reform is becoming an increasingly
important global issue for developing and high-income countries. Many
countries have basic pension plans in place; however, most only cover 10% to
30% of the working population and impose a heavy strain on economic
development. The World Bank favors a multi-pillar pension plan consisting of
minimal contribution by the lifetime poor, access to various financial
instruments for the large informal sector, and a diversified sector for
formal workers. <mailto:david.w.ellis@bakernet.com<
david.w.ellis@bakernet.com or <mailto:robert.west@bakernet.com<
robert.west@bakernet.com Alert Date: 7/1/01

** - INTERNATIONAL LABOUR CONFERENCE OPENS AND SECRETARY OF LABOUR ELECTED:
On June 5, 2001, the 89th session of the International Labour Conference
opened and elected Ms. Patricia A. Sto. Tomas as President. Ms. Sto. Tomas
is currently the Secretary of Labour and Employment for Philippines. She
emphasized major agenda items of the conference, including adoption of new
international standards on safety and health of workers. See " International
Labor Conference Opens
<http://www.ilo.org/public/english/bureau/inf/pr/2001/18.htm<; ."
<mailto:william.watson@bakernet.com< william.watson@bakernet.com or
<mailto:jorge.de.regil@bakernet.com< jorge.de.regil@bakernet.com Alert
Date: 7/1/01

** - ICFTU REPORT FINDS DISCRIMINATION AND RESTRICTIONS ON THE RIGHT TO
STRIKE IN SIX CARIBBEAN STATES: Recently, in a report on six members of the
Organisation of East Carribbean States (OCES), the International
Confederation of Free Trade Unions (ICFTU) found excessive limitations on
the right to strike for many employees, evident workplace discrimination,
and non co-operation with the ILO. The report coincides with a review of
OECS trade policy by the World Trade Organisation (WTO) and focuses on
respect for internationally recognised core labour standards in Antigua and
Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent
and the Grenadines. See " ICFTU Strike Report
<http://www.icftu.org/displaydocument.asp?Language=EN&;Index=991212906< ."
<mailto:Richard.tuschman@bakernet.com< richard.tuschman@bakernet.com or
<mailto:neil.mcguinness@bakernet.com< neil.mcguinness@bakernet.com Alert
Date: 7/1/01

** - ICFTU LAUNCHES REPORT ON FORCED LABOUR IN PRISONS: Prison labour is one
of the five exceptions stipulated in ILO Convention 29 concerning the
prohibition of forced labour. The issue, which is at the top of the agenda
at the current ILO annual conference, is also the subject of a new ICFTU
report. The ICFTU report states that from joint ventures of private
companies and public authorities to complete privatisation of the prison
system, penal institutions are increasingly being managed like fully-fledged
businesses to the detriment of their inmates, whose basic rights are
regularly violated. See " ICFTU Prison Labour Report
<http://www.icftu.org/displaydocument.asp?Language=EN&;Index=991212917< ."
<http://www.icftu.org/displaydocument.asp?Language=EN&;Index=991212917<
<mailto:Robert.p.lewis@bakernet.com< robert.p.lewis@bakernet.com or
<mailto:brian.s.arbetter@bakernet.com< brian.s.arbetter@bakernet.com Alert
Date: 7/1/01

** - WORKWEEK IN SOUTH KOREA LONGEST, FRANCE SHORTEST: On June 5, 2001,
Roper Reports Worldwide 2001 Global Consumer Study released its findings of
international labour statistics. The average full-time workweek for the 32
countries surveyed is 44.6 hours, with workweeks in South Korea the longest
and France with the shortest. See "International Labour Statistics."
<mailto:Gilles.jolivet@bakernet.com< gilles.jolivet@bakernet.com or
<mailto:carole.a.spink@bakernet.com< carole.a.spink@bakernet.com Alert
Date: 7/1/01

** - EUROPEAN UNION MEMBERS AGREE ON MEASURE TO REQUIRE CONSULTATION WITH
WORKERS: On June 11, 2001, the European Union (EU) member states came to a
political agreement requiring companies with 50 employees or less to consult
with workers before implementing lay-offs, decisions related to relocation,
or other economic restructuring. EU ministers also agreed on directives
addressing sexual harassment in the workplace. Finally, EU member states
also approved legislation to set noise limits in the workplace. See "
76/207/EEC
<http://www2.europarl.eu.int/omk/OM-Europarl?PROG=REPORT&L=EN&PUBREF=< ."
<mailto:Christine.obrien@bakernet.com< christine.obrien@bakernet.com or
<mailto:alex.valls@bakernet.com< alex.valls@bakernet.com Alert Date:
7/1/01

** - ICFTU INSISTS THAT "CHILD LABOUR" BE RECOGNISED: On June 15, 2001,
global trade union organisations condemned governments who are beginning to
accept the exploitation of child labour. Activitsts complain that
governments have become increasingly supportive of weakening international
commitments to eliminate child labour, by leaving millions of children in
the workforce and seeking trivial improvements in their working lives. The
global union movement is now urging all governments to recognize the
importance of child labour. See " Global Unions Group
<http://www.icftu.org/displaydocument.asp?Language=EN&;Index=991212987< ."
<mailto:Stewart.saxe@bakernet.com< stewart.saxe@bakernet.com or
<mailto:alex.valls@bakernet.com< alex.valls@bakernet.com Alert Date:
7/1/01

** - EU COMMITTEE COMPROMISES ON PENSION PROPOSALS: On June 19, 2001, the
European Commission's Committee on Economic and Monetary Affairs agreed to a
series of amendments to open up pan-European occupational pension markets to
"pay as you go" schemes. The compromise was reached between those who prefer
to guarantee the security of pensions and those who support opening up
national markets and offering consumers more freedom of choice. See "
Compromise On Pension Proposals
<http://www2.europarl.eu.int/omk/OM-Europarl?PROG=PRESS-NEWSRP&L=EN&PUBREF=-
//EP//TEXT+PRESS-NEWSRP+NR-20010620-1+0+DOC+SGML+V0//EN&LEVEL=1< ."
<mailto:maura.ann.mcbreen@bakernet.com< maura.ann.mcbreen@bakernet.com or
<mailto:robert.west@bakernet.com< robert.west@bakernet.com Alert Date:
7/1/01

** - EXXONMOBIL SUED OVER ACEH RIGHTS ABUSES: On June 20, 2001, human rights
groups accused ExxonMobil, the world's largest oil company, of human rights
abuses allegedly committed by security forces in Indonesia. Eleven villagers
allege that ExxonMobil was complicit in murders, rape, torture, and
kidnapping. See " ExxonMobil Sued Over Human Rights Abuses
<http://news.excite.com/news/r/010621/17/rights-indonesia-exxon< ."
<mailto:william.r.watson@bakernet.com< william.r.watson@bakernet.com or
<mailto:duane.gingerich@bakernet.com< duane.gingerich@bakernet.com Alert
Date: 7/1/01

** - IUF/COLSIBA AND CHIQUITA BRANDS INTERNATIONAL SIGN AGREEMENT ON TRADE
UNION RIGHTS FOR BANANA WORKERS: On June 14, 2001, an agreement on "Freedom
of Association, Minimum Labour Standards and Employment in Latin American
Banana Operations" was signed at the International Labour Organisation (ILO)
in Switzerland. The agreement, signed by representatives from the
International Union of Food (IUF), the Latin American Coordinating Committee
of Banana Workers Unions (COLSIBA), and Chiquita Brands International,
addresses worker health issues, environmental issues, and minimal labour
standards. See " Freedom <http://www.iuf.org/iuf/Press/010614.htm<;
Agreement." <mailto:brian.s.arbetter@bakernet.com<
brian.s.arbetter@bakernet.com or <mailto:kevin.coon@bakernet.com<
kevin.coon@bakernet.com Alert Date: 7/1/01

** - ILO REPORTS ON CHILD TRAFFICKING IN WEST AND CENTRAL AFRICA: On June
15, 2001, the International Labour Organisation released a report focusing
on the rising concerns of child trafficking in West and Central Africa. The
report is the result of the first phase of a project to combat trafficking
in children for labour exploitation in nine countries of West and Central
Africa. See " Child Trafficking Report
<http://www.ilo.org/public/english/bureau/inf/pr/2001/21.htm<; ."
<mailto:andrew.b.cripe@bakernet.com< andrew.b.cripe@bakernet.com or
<mailto:carole.a.spink@bakernet.com< carole.a.spink@bakernet.com Alert
Date: 7/1/01

** - BUSINESSES WAKE UP TO THE THREAT OF HIV/AIDS: On June 23, 2001, the
United Nations Integrated Regional Information Network (IRIN) published a
third report in a series of five special features to coincide with the UN
General Assembly's Special Session on HIV/AIDS. The report reveals that
HIV/AIDS threatens to adversely affect the economic and social progress
achieved to date in Southern Africa. Several large employers have initiated
responses to the issue through programs of prevention and care in Africa.
See " HIV/AIDS Threat
<http://allafrica.com/stories/printable/200106230015.html<; ."
<mailto:andrew.j.bowling@bakernet.com< andrew.j.boling@bakernet.com or
<mailto:william.j.dorsey@bakernet.com< william.j.dorsey@bakernet.com Alert
Date: 7/1/01

** - ILO APPROVES GLOBAL SAFETY AND HEALTH AGRICULTURAL STANDARDS: On June
21, 2001, the International Labour Organisation (ILO) approved a new
international convention setting out the first global standards on safety
and health for agricultural workers. The convention sets out certain rights
for agricultural workers, including the rights to be informed on safety and
health matters, select safety and health representatives, and participate in
workplace inspections through the selected representatives. The standards
also address the handling and transport of materials and the sound
management of chemicals. The convention will take effect once it has been
adopted by two ILO member states. See " Proposed Convention Concerning
Safety
<http://www.ilo.org/public/english/standards/relm/ilc/ilc89/rep-iv-2b.htm< &
Health In Agriculture." <mailto:gina.l.knight@bakernet.com<
gina.l.knight@bakernet.com or <mailto:mary.maher@bakernet.com<
mary.maher@bakernet.com Alert Date: 7/1/01

** - EMPLOYER SUED IN WRONGFUL DEATH ACTION WITH INTERNATIONAL IMPLICATIONS:
In a recent wrongful death suit filed in the United States, an employer has
been joined in an action against its employee who allegedly struck and
killed a teenager while driving and making cell phone calls on company
business. In the first case of its kind, the victim's family sought to
extend an employer's liability to the actions of its employees while talking
on a cell phone about company business after business hours. The employer in
this case did not have a internal policy on cell-phone use. Cases such as
this and increased reliance on cell-phones and other remote technology are
prompting many employers to address this issue on an international basis.
See " Wrongful Death Suit Over Cell Phone Use
<http://www.law.com/cgi-bin/gx.cgi/AppLogic+FTContentServer?pagename=law/Vie
w&c=Article&cid=ZZZQ61SKAOC&live=true&cst=1&pc=0&pa=0< ."
<mailto:gerald.l.maatman@bakernet.com< gerald.l.maatman@bakernet.com or
<mailto:andrew.j.boling@bakernet.com< andrew.j.boling@bakernet.com Alert
Date: 7/1/01

** - ILO ADOPTS CODE ON PREVENTING DISCRIMINATION AGAINST WORKERS WITH
HIV/AIDS: On June 22, 2001, the International Labour Organisation adopted a
new voluntary global code aimed at stopping discrimination in the workplace
against employees infected with HIV/AIDS. The code sets out guidelines on
the prevention of HIV/AIDS and managing and mitigating the impact of the
disease in the workplace. Additionally, the code addresses the support of
HIV/AIDS infected employees. See " ILO To Launch New Code Of Practice On
HIV/AIDS And The World
<http://www.ilo.org/public/english/bureau/inf/pr/2001/24.htm<; Of Work."
<mailto:Carlos.dodds@bakernet.com< carlos.dodds@bakernet.com or
<mailto:christine.obrien@bakernet.com< christine.obrien@bakernet.com Alert
Date: 7/1/01

** - U.S. DEPARTMENT OF LABOR OFFERING US$9 MILLION IN GRANTS TO FUND
HIV/AIDS WORKPLACE EDUCATION EFFORT ABROAD: On June 27, 2001, the U.S.
Department of Labor announced that it was making available approximately
US$9 million to fund HIV/AIDS workplace education programs in other
countries. The DOL plans to award grants to qualified organizations in up to
10 countries. See " Global Workplace Prevention And Education Program
<http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=2001_register&doc
id=01-16131-filedJill< ." <mailto:Gerald.l.maatman@bakernet.com<
gerald.l.maatman@bakernet.com or <mailto:abby.b.silverman@bakernet.com<
abby.b.silverman@bakernet.com Alert Date: 7/1/01

** - ADEQUATE SAFEGUARDS FOR PERSONAL DATA TRANSFER: The European
<http://www.europa.eu.int/comm/index_en.htm< Commission recently adopted a
decision outlining contractual clauses to ensure adequate safeguards for
personal data transferred from the European Union to countries outside the
EU. The decision requires Member States to recognise that companies or
organisations using standard clauses in contracts concerning personal data
transfers to countries outside the EU are offering protection to the data in
compliance with the Data Protection Directive. See " Safeguard For Personal
Data <http://europa.eu.int/eur-lex/en/lif/dat/1995/en_395L0046.html< ."
<mailto:Andrew.j.boling@bakernet.com< andrew.j.boling@bakernet.com or
<mailto:michael.j.wagner@bakernet.com< michael.j.wagner@bakernet.com Alert
Date: 7/1/01

** - HARMONIZING PENSION SYSTEMS: Commissioner Bolkenstein of the European
Commission recently announced several measures to harmonize the different
pension systems of the 15 Member States of the European Union. Currently 11
Member States apply the fiscal "omkeer-regel," a tax rule meaning that
pension premiums are tax deductible, whilst pension benefits are taxed at
the time of payment. Bolkenstein argues that the Member States that apply
other fiscal rules (Germany, Italy, Sweden, Denmark, and Luxembourg) should
also apply the "omkeer-regel" rule in order to harmonize the different
European pension systems. <mailto:joseph.f.van.vlijmen@bakernet.com<
joseph.f.van.vlijmen@bakernet.com or <mailto:mirjana.maric@bakernet.com<
mirjana.maric@bakernet.com Alert Date: 7/1/01

** - GYPSIES PLAN SUIT AGAINST IBM: On June 21, 2001, an attorney for the
Gypsy International Recognition and Compensation Action (GIRCA) announced
that GIRCA is planning to file a civil suit against IBM, alleging that its
machines helped Hitler identify and send 600,000 members of the group to
their death in slave labour camps during the Holocaust. See " Gypsies Plan
Suit <http://news.findlaw.com/news/s/20010531/holocaustswissibmdc.html<; ."
<mailto:markus.berni@bakernet.com< markus.berni@bakernet.com or
<mailto:alain.stehle@bakernet.com< alain.stehle@bakernet.com Alert Date:
7/1/01

Asia_PacificAsia Pacific top
AU - LABOUR ASKED TO OUTLINE IMMIGRATION DETENTION POLICY: Phillip Ruddock,
the Minister for Immigration and Multicultural Affairs recently announced
that the Labour Government was compelled to outline plans for housing
illegal boat arrivals. Labour is trying to be firm on illegal workers and
those over-staying their visas, but they are sending mixed messages in
planning facilities to detain these over-stayers. See " Labor Outlines
Detention Policy
<http://www.minister.immi.gov.au/media_releases/media01/r01067.htm< ."
<mailto:spiro.mellos@bakernet.com< spiro.mellos@bakernet.com or
<mailto:michael.michalandos@bakernet.com< michael.michalandos@bakernet.com
Alert Date: 7/1/01

AU - LABOUR PARTY OFFICIALS INTERFERE WITH UNION BUSINESS: On June 14, 2001,
two senior Labour Party members, John Della Bosca and Senator Stephen
Hutchins, were accused of interfering in a union election battle to reclaim
power in their party. The president of the Australian Worker's Union
believes the interference was part of a plan to involve the Transport
Workers Union in taking control of the ruling right-wing faction of the
union movement and Australian Labour Party. See " Labor Party Interferes
<http://www.smh.com.au/news/0106/14/national/national24.html<; ."
<mailto:paul.brown@bakernet.com< paul.brown@bakernet.com or
<mailto:spiro.mellos@bakernet.com< spiro.mellos@bakernet.com Alert Date:
7/1/01

AU - UNION BOSS CHALLENGES T.V. STATION OWNER: On June 13, 2001, Union
leader Dean Mighell challenged Channel 7 owner, Kerry Stokes, to pursue him
for $1500 for breach of federal industrial relations laws. Mighell was fined
for breaching the Workplace Relations Act by using unlawful coercion against
Channel 7. Mighell calls the fine inappropriate and says he will not be
rushing to pay it. See " Union Boss Fined For Breach Of Workplace Relations
<http://www.heraldsun.news.com.au/printpage/0,5481,2108751,00.html<; Act."
<mailto:paul.brown@bakernet.com< paul.brown@bakernet.com or
<mailto:mary.maher@bakernet.com< mary.maher@bakernet.com Alert Date:
7/1/01

AU - AUSTRALIAN INTERNET STANDARDS TO FOLLOW EUROPE: On June 5, 2001,
Australia's Internet Industry Association (IIA), its national body for
internet content, commerce, and connectivity, announced that it intends to
target compliance with the EU Privacy Directive as one of the key areas its
privacy code would address. The head of the IIA, Peter Coroneos, said that
the new standard IIA Privacy Code would establish industry benchmarks that
go beyond current Australian privacy legislation. He explained that the IIA
had foreseen EU compliance as a major issue for companies trading on the
internet which, by definition, defied national boundaries. See: " IIA
Privacy Code To <http://www.iia.net.au/index2.html<; Tackle EU Compliance.
<mailto:paul.brown@bakernet.com< paul.brown@bakernet.com or
<mailto:tim.dixon@bakernet.com< tim.dixon@bakernet.com Alert Date: 7/1/01

AU - AUSTRALIAN UNION TO RUN CLASS ACTION CASE ON PASSIVE SMOKING: Recently,
the Australian Liquor, Hospitality and Miscellaneous Workers Union announced
that it had established a register of workers as a first step to gathering
case information for common law cases against employers who they alleged put
their employees at risk from exposure to smoking. The union says it will
also approach insurance companies in the coming weeks warning them that they
face serious insurance losses if they continue to insure companies that are
not smoke-free workplaces. Union representatives said "LHMU members will not
stop until they have succeeded in achieving smoke-free workplaces". See "
Union Announces Campaign For Smoke-Free Hospitality
<http://www.lhmu.org.au/union/381.html<; Workplaces."
<mailto:paul.brown@bakernet.com< paul.brown@bakernet.com or
<mailto:mary.maher@bakernet.com< mary.maher@bakernet.com Alert Date: 7/1/01

AU - EMPLOYER WRONG IN E-MAIL DISMISSAL: On June 13, 2001, the Western
Australia Industrial Relations Commission found that an employer was wrong
to dismiss a worker for storing what amounted to schoolyard dirty jokes in
his email folder. The Commission found that even though the worker had
breached the employer's internet and email policy, the breach was trivial
and the employer's application of the policy was inconsistent with its
conduct elsewhere. The decision highlights the need for employers to be
careful of overreacting to trivial or technical breaches of email policies
and that they need to properly explain to employees what constitutes
inappropriate or offensive material for the purposes of their policy. See "
Alan Victor Wilmott v Bank Of Western Australia Ltd
<http://www.ecruiting.com.au/express/bankwa140601.htm<; ."
<mailto:paul.brown@bakernet.com< paul.brown@bakernet.com or
<mailto:mary.maher@bakernet.com< mary.maher@bakernet.com Alert Date: 7/1/01

AU - TRIBUNAL WARNS EMPLOYERS TO REFLECT DIVERSITY IN ANTI-DISCRIMINATION
POLICIES: A recent decision by the New South Wales Administrative Appeals
Tribunal highlights the importance of taking into account the ethnic
diversity of staff when communicating company anti-discrimination policies.
In the case a school custodian was awarded compensation after her manager
ignored her sexual harassment complaints and then demoted her. The tribunal
found that the worker was not aware of the company's sexual harassment
policy but even if she had it would have been of little value to her as her
command of written English was poor. See: " D v Berkeley Challenge
<http://www.agd.nsw.gov.au/adtjudgments/2001nswadt.nsf/f1a6baff573a075dca256
862002912ec/ce97ad8f5a862ccdca256a5e0009b852?OpenDocument< ."
<mailto:michael.michalandos@bakernt.com< michael.michalandos@bakernt.com or
<mailto:kathleen.thornton@bakernet.com< kathleen.thornton@bakernet.com
Alert Date: 7/1/01

AU - AUSTRALIAN COURTS INCREASINGLY WILLING TO ENFORCE REASONABLE
RESTRAINTS: In a recent decision, the New South Wales Supreme Court has
banned an IT recruitment consultant from working in the New South Wales
recruitment industry for 3 months after she went to work for a direct
competitor. The Court was of the view that the financial hardship she would
have to endure as a result of enforcing her restraint or non-compete clause
will be for a limited time and was the price she must pay for a direct and
flagrant breach of her contract. See " HiTech Contracting Limited v Jane
Lynn <http://www.ecruiting.com.au/express/hitechvlynn180601.htm<; ."
<mailto:paul.brown@bakernet.com< paul.brown@bakernet.com and
<mailto:spiro.mellos@bakernet.com< spiro.mellos@bakernet.com Alert Date:
7/1/01

AU - AUSTRALIAN GOVERNMENT SEEKS TO OUTLAW COMPULSORY UNION FEES: The
Australian Government has recently introduced a new bill into Parliament
which seeks to outlaw the use of "bargaining fee" clauses in workplace
agreements. The proposed legislation will make it unlawful for Australian
unions to charge a "service fee" to be imposed on a worker unless that
individual worker agrees in advance to the service fee. The government
contends that the service fees are an attempt by unions to introduce back
door compulsory unionism. See " Back Door Compulsory Union Tactic Removed
<http://www.dewrsb.gov.au/ministers/mediacentre/printable.asp?show=1819<; ."
<mailto:paul.brown@bakernet.com< paul.brown@bakernet.com and
<mailto:mary.maher@bakernet.com< mary.maher@bakernet.com Alert Date:
7/1/01

AU - IMMIGRANT BOAT CAPTURED OFF AUSTRALIA: On June 15, 2001, Australian
Federal police intercepted an Indonesian boat off Christmas Island carrying
231 suspected illegal immigrants from the Middle East. Five Indonesian
crewmembers were charged with people smuggling offenses, which can carry a
penalty of up to 20 years imprisonment. See " Immigrant Boat Captured
<http://www.cnn.com/2001/WORLD/asiapcf/auspac/06/15/illegal.immigrants/index
.html< ." <mailto:ian.dixon@bakernet.com< ian.dixon@bakernet.com or
<mailto:paulbrown@bakernet.com< paul.brown@bakernet.com Alert Date: 7/1/01

AU - WORKPLACE HEALTH AND SAFETY BECOME KEY ISSUES IN THE WORKPLACE: On June
20, 2001, Queensland Council of Unions announced that workplace health and
safety issues are major items on their agenda. After reports of unhealthy
workplaces, the Council is urging employers and the government to establish
a Minimum Standards Code. See " Health And Safety
<http://www.qcu.asn.au/mr031.pdf<; Become Key Workplace Issues."
<mailto:paul.brown@bakernet.com< paul.brown@bakernet.com or
<mailto:mary.maher@bakernet.com< mary.maher@bakernet.com Alert Date:
7/1/01

AU - INDUSTRIAL RELATIONS MINISTER ACCUSED OF RENEGING ON REFORMS: On June
18, 2001, Australian union members accused the Industrial Relations
Minister, Mr. Della Bosca, of rushing controversial parts if his reform
package through Parliament. Unionists claim Della Bosca agreed to withhold
issues that were still being disputed, such as workers compensation, instead
of sending them to Parliament for a vote. See " Della Bosca Reneges On
Reforms <http://www.smh.com.au/news/0106/18/national/national9.html<; ."
<mailto:kate.temple@bakernet.com< kate.temple@bakernet.com or
<mailto:garry.rich@bakernet.com< garry.rich@bakernet.com Alert Date:
7/1/01

HK - EOC WELCOMES HIGH COURT RULING: On June 22, 2001 the Equal
Opportunities Commission (EOC) announced that it welcomes the Hong Kong High
Court's declaration that the Secondary School Places Allocation System
(SSPA) is discriminatory and therefore unlawful. SSPA was investigated
beginning in 1998 after complaints by parents whose children were allocated
to a lower band than their classmates of the opposite sex with lower
academic achievements. See " Court Rules SSPA Is Unlawful
<http://eoc.vh.hk.linkage.net/textmode/press/220601e.htm<; ."
<mailto:Andrea.lauffs@bakernet.com< andrea.s.lauffs@bakernet.com or
<mailto:paul.tan@bakernet.com< paul.tan@bakernet.com Alert Date: 7/1/01

ID - MASSIVE WORKERS' RALLIES AGAINST LABOUR DECREE ROCK INDONESIAN CITIES:
On June 13, 2001, Indonesian workers held rallies to protest a new labour
decree that favors employers and puts workers at a disadvantage. Under the
new decree, workers dismissed for incompetence or early retirement would
lose long-service payments. The decree came after complaints from employers
and investors about excessive costs incurred in the past year. See " New
Labor <http://sg.news.yahoo.com/010613/1/w72q.html<; Decree."
<mailto:Duane.j.gingerich@bakernet.com< duanej.gingerich@bakernet.com or
<mailto:edmund.leow@bakernet.com< edmund.leow@bakernet.com Alert Date:
7/1/01

IN - CONGLOMERATE OF INDIA-BASED COMPANIES FORMS NEW ONLINE RECRUITING
VENTURE: On June 1, 2001, a consortium of companies based in eastern India
announced the formation of an online recruitment venture. Called
www.pilotyourcareer.com, the venture intends to expand to northern and
southern India, and then to Europe, Australia, and the U.S. This venture is
reported to be the first based out of the eastern part of India. See " India
<http://www.newsbytes.com/news/01/166339.html<; On-Line Recruiting."
<mailto:Andrew.j.boling@bakernet.com< andrewj.boling@bakernet.com or
<mailto:narendra.acharya@bakernet.com< narendra.acharya@bakernet.com Alert
Date: 7/1/01

IN - PEOPLES' UNION IN INDIA PROTESTS SLOW RESTORATION OF BUSINESS
INFRASTRUCTURE FOLLOWING RAVAGING EARTHQUAKE: On June 3, 2001, an Indian
peoples' union called Anjar Group-2001 engaged in angry protests during
Prime Minister Atal Bihari Vajpayee's visit to the earthquake devastated
Kutch district of Gujarat. Prime Minister Vajpayee was there to reiterate
his support for various relief packages for reviving trade, business, and
industrial units, as well as providing temporary shelters to residents whose
homes were lost in the earthquake. The Group's leader, Shyam Sunder, was
quoted as saying, "We have decided to observe a total Kutch shutdown during
the prime minister's visit as a mark of protest against the state
government's neglect and insensitivity to the suffering of the people." See
" People's Union Protest <http://www.economictimes.com/today/01poli01.htm<;
." <mailto:Andrew.j.boling@bakernet.com< andrew.j.boling@bakernet.com or
<mailto:narendra.acharya@bakernet.com< narendra.acharya@bakernet.com Alert
Date: 7/1/01

IN - FUNDED SYSTEM IS THE ANSWER TO REDUCE PENSION LIABILITY: On June 25,
2001, a working group created to review pension liability recommended that
the Indian Government switch to a funded system in order to reduce pension
liability. Currently, government employees do not contribute to their own
pensions. See " Pension Liability
<http://www.economictimescom/today/in03.htm<; ."
<mailto:netima.luerakorn@bakernet.com< netima.luerakorn@bakernet.com or
<mailto:narenda.acharya@bakernet.com< narendra.acharya@bakernet.com Alert
Date: 7/1/01

JP - JAPANESE WORKPLACE VIOLENCE PROBLEMS: On June 8, 2001, a former
employee of a Japanese elementary school returned to the workplace and
killed eight children. This attack has fueled the growing concern of
workplace violence in Japan. See " Violent Crime In The Japanese Workplace
<http://new.bbc.co.uk/hi/english/world/asia-pacific/newid_1377000/1377000/13
77781.stm< ." <mailto:hiroshi.kondo@bakernet.com<
hiroshi.kondo@bakernet.com or <mailto:hideo.ohta@bakernet.com<
hideo.ohta@bakernet.com Alert Date: 7/1/01

JP- NORTH KOREA BLASTS JAPAN FOR REFUSING VISAS FOR RALLY: On June 8, 2001,
a Tokyo-based monitoring agency quoted the official radio Pyongyang blasting
Japan for refusing to grant visas to North Korean officials wanting to
attend a protest in Tokyo criticizing history textbooks that "gloss over"
Japan's wartime aggression. See " North Korea Blasts Japan
<http://dailynews.yahoo.com/h/nm/20010608/wl/japan_korea_textbook_dc_2.html<
." <mailto:hiroshi.kondo@bakernet.com< hiroshi.kondo@bakernet.com or
<mailto:nam.paik@bakernet.com< nam.h.paik@bakernet.com Alert Date: 7/1/01

JP - JAPAN PASSES LANDMARK PENSION BILL: On June 22, 2001, Japan enacted a
version of the U.S. 401(k) retirement savings plan that will, for the first
time, allow working individuals to choose how to invest part of their
pension monies. See " Japan Passes Landmark Pension Bill
<http://www.chinadaily.net/cndy/2001-06-23/15757.html< ."
<mailto:hiroshi.kondo@bakernet.com< hiroshi.kondo@bakernet.com or
<mailto:hideo.ohta@bakernet.com< hideo.ohta@bakernet.com Alert Date:
7/1/01

JP - MONTHLY LABOUR SURVEY RELEASED: On June 19, 2001, the Japanese Ministry
of Health, Labour, and Welfare published its Monthly Labour Survey for April
of 2001, which reported statistics based on cash earnings, hours worked, and
number of people employed. See " Monthly Labour Survey
<http://www.mhlw.go.jp/english/database/db-l/1304fr/mk1304re.html< ."
<mailto:hideo.ohta@bakernet.com< hideo.ohta@bakernet.com or
<mailto:niroshi.kondo@bakernet.com< hiroshi.kondo@bakernet.com Alert Date:
7/1/01

KR - POLICE IN KOREA ARREST UNION LEADERS AS SECOND AIRLINE STRIKE NEARS
END: On June 16, 2001, four Korean Air union leaders were arrested for
heading an illegal strike. Korean Air Lines Co. had agreed with unions to
withdraw the arrest warrants as part of a deal to end a two-day strike by
the pilots; however, the police decided to carry out the warrants anyway.
See " Police <http://sg.biz.yahoo.com/010618/1/10m0q.html<; Arrest Union
Leaders In Korea." <mailto:nam.h.paik@bakernet.com< nam.h.paik@bakernet.com
or <mailto:narenda.achayra@bakernet.co< narenda.achayra@bakernet.com Alert
Date: 7/1/01

MM - RIGHTS GROUP SAYS MYANMAR STILL USING FORCED LABOUR: On June 11, 2001,
Human Rights Watch reported that despite an official ban, Myanmar was still
using forced labour. Human Rights Watch reported that migrants entering
Thailand from several divisions of Myanmar said they had personally taken
part in or witnessed forced labour as recently as May. The migrants reported
harsh labour and violence by supervising military police. See " Forced
Labour in Myanmar
<http://new.findlaw.com/international/s/20010612/rightsmyanmardc.html<; ."
<mailto:prachern.tiyapunjanit@bakernet.com<
prachern.tiyapunjanit@bakernet.com or
<mailto:anurat.tiyaphorn@bakernet.com< anurat.tiyaphorn@bakernet.com Alert
Date: 7/1/01

MY - TEACHERS IN MALAYSIA TOLD TO HAVE BABIES ON THE HOLIDAYS: On June 24,
2001, Deputy Education Minister Abdul Axix Samsuddin urged woman teachers to
plan their pregnancies around their classroom schedules. Since the Ministry
does not provide substitutes for teachers on maternity leave and most
teachers are women, Samsuddin fears that if too many teachers go on
maternity leave at once, the classrooms will be shorthanded. See " Have Your
Babies On The Holidays
<http://www.japantoday.com/e/?content=news&;cat=7&id=37946< ."
<mailto:duane.j.gingerich@bakernet.com< duane.j.gingerich@bakernet.com or
<mailto:guenther.heckelmann@bakernet.com< guenther.heckelmann@bakernet.com
Alert Date: 7/1/01

NZ - NEW ZEALAND WATERSIDE WORKERS WIN LANDMARK CASE BUT CALL OFF STRIKE
ACTIONS: Waterside workers in Auckland called off strike action which was to
occur on June 28, 2001, despite winning a landmark case which would have
allowed the action to go ahead. Their employer, Ports of Auckland, argued in
the New Zealand Employment Court that the proposed strike action of up to
250 workers breached the new good faith provisions under the Employment
Relations Act. However, the Court ruled that there was no evidence that the
strike notice had significantly undermined the talks and was unconvinced
that the action breached good faith provisions. See " Court Backs Walk-Out
<http://www.nzherald.co.nz/storydisplay.cfm?storyID=197260&;thesection=news&t
hesubsection=general< ." <mailto:paul.brown@bakernet.com<
paul.brown@bakernet.com or <mailto:kathleen.thornton@bakernet.com<
kathleen.thornton@bakernet.com Alert Date: 7/1/01

NZ - COURT SLOWS IMPACT OF REFORM LAWS IN NEW ZEALAND: A recent full bench
of the New Zealand Employment Court has overturned a decision of the new
Employment Relations Authority to prohibit cross-examination during a
hearing. The Authority had relied on the new Employment Relations Act's
guidelines that it was to focus on practical solutions and conduct quick
fire investigations. However, the Court found that cross examination was a
necessary ingredient of the principles of natural justice. See " Judges
Upset Quick-Fire Hearings
<http://www.nzherald.co.nz/storydisplay.cfm?thesection=business&;thesubsectio
n=&storyID=192556< ." <mailto:paul.brown@bakernet.com<
paulbrown@bakernet.com or <mailto:kathleenthornton@bakernet.com<
kathleen.thornton@bakernet.com Alert Date: 7/1/01

PH - UNICEF ENVOY DECRIES CHILD SEX TRADE: On June 8, 2001, Agnes Chan, a
Hong Kong- born singer and ambassador for the United Nation's Children's
Fund (UNICEF) urged the international community to help stop the sexual
exploitation of children in the Philippines. At least 20,000 homeless
children roam the streets where they are beggars, child prostitutes, petty
thieves, and drug couriers. Even worse, between 60,000 and 100,000
Philippine children are victims of the country's sex trade. See " UNICEF
Envoy Decries Child Sex Trade
<http://www.inquirer.net/brk/2001/jun/08/brkpol_5-1.htm< ."
<mailto:romeo.salonga@bakernet.com< romeo.salonga@bakernet.com or
<mailto:akira.ito@bakernet.com< akira.ito@bakernet.com Alert Date: 7/1/01

PH - GOVERNEMENT WORKERS GET SALARY HIKE: On June 8, 2001, Philippine
President Gloria Macapagal-Arroyo signed a law granting salary increases to
government employees who have been surpassed by workers in the private
sector in terms of compensation and benefits. The bill will upgrade all
national government salaries by 5%, including teachers, and will also
increase the wages of the Philippine National Police with a 12% increase.
All salary increases are effective on July 1, 2001. See " Government Workers
Get Salary Increase <http://www.inq7.net/brk/2001/jun/08/brkpol_21-1.htm< ."
<mailto:romeo.salonga@bakernet.com< romeo.salonga@bakernet.com or
<mailto:gil.zerrudo@bakernet.com< gil.zerrudo@bakernet.com Alert Date:
7/1/01

PH - PHILIPPINES NBI CLAMPS DOWN ON CYBERTHIEVES: The Philippine National
Bureau of Investigation recently reported it will formally charge two former
employees of the Thames International Business School for allegedly breaking
into the school's computer system and stealing digital material. The former
employees are the first to be charged with hacking and piracy under the
Philippines E-Commerce Act. See " Hacking And
<http://www.newsbytes.com/news/01/16678.html<; Piracy Charges."
<mailto:romeo.l.salonga@bakernet.com< romeo.l.salonga@bakernet.com or
<mailto:gil.zerrudo@bakernet.com< gil.zerrudo@bakernet.com Alert Date:
7/1/01

TW - GOVERNMENT TO RELAX RESTRICTIONS ON PENSION FUND USAGE: The Council of
Labor Affairs (CLA) of the Taiwan Government recently passed three important
resolutions. CLA announced that within three months, the relevant rules will
be amended and become effective to enable: (1) a company to pay severance
out of part of its pension fund; (2) a company to allocate part of its
pension fund to its subsidiary company's account if employees will be
transferred to such subsidiary; and (3) the city and local county
governments to set up committees to approve payment of pension to retirees
without the retirees involving in legal action or stamps for approval from
the pension fund committee of a company. See " News From Taiwan
<http://www.bakernet.com/gel/articles/article-pension fund usage.doc< ."
<mailto:Seraphim.mar@bakernet.com< seraphim.mar@bakernet.com or
<mailto:remington.huang@bakernet.com< remington.huang@bakernet.com Alert
Date: 7/1/01

TW - PROFESSIONALS ARE IN DEMAND IN TAIWAN: A recent survey reported by a
local Taiwan media source suggests that professionals in the areas of
finance and securities, business administration and marketing, and IT
engineering are in high demand in Taiwan. See " Professionals Needed In
Taiwan <http://english.peopledaily.com.cn/200106/22/eng20010622_73287.html<
." <mailto:remington.huang@bakernet.com< remington.huang@bakernet.com or
<mailto:seraphim.mar@bakernet.com< seraphim.mar@bakernet.com Alert Date:
7/1/01

TW - TAIWAIN WORKERS USE ELECTRONIC VISAS: Taiwanese workers traveling to
Hong Kong will be granted an electronic visa beginning in the next Lunar New
Year. See " Electronic Visas
<http://hk-imail.singtao.com/inews/public/article_v.cfm?articleid=24625&intc
atid=1< ." <mailto:seraphim.mar@bakernet.com< seraphim.mar@bakernet.com or
<mailto:william.kuo@bakernet.com< william.kuo@bakernet.com Alert Date:
7/1/01

Europe___CISEurope & CIS top
BE - MARKS AND SPENCER CLOSINGS IN BELGIAN COURTS: On June 1, 2001, a report
issued by the Belgian Government concluded that the closings of four Marks
and Spencer stores which resulted in the cutting of 315 jobs was unlawful
and broke employment legislation. Belgian law requires that companies
provide adequate notice of closure plans to trade unions and works councils
before acting on such a decision. Marks and Spencer said that the stores
sustained heavy losses and they had no choice but to close the stores. See "
M <http://www.guardian.co.uk/Archive/Article/0,4273,4197006,00.html<; &S
Escapes Belgian Courts." <mailto:francois.gabriel@bakernet.com<
francois.gabriel@bakernet.com or <mailto:anne.laurent@bakernet.com<
anne.laurent@bakernet.com Alert Date: 7/1/01

DE - GERMAN UNION AIMS FOR WAGE BOOST IN 2002: On June 5, 2001, the German
service-sector union, Verdi, announced it will seek significant wage
increases during the next round of negotiations despite calls for greater
labour-market flexibility in the German economy. Most unions accepted
moderate pay settlements in 2000 which are due to expire late next year, and
recent mergers of many unions and increased clout and political power are
expected to make upcoming negotiations very contentious. See " Verdi Aims
For Wage Boost In 2002
<http://www.handelsblatt.com/hbiwwwangebot/fn/relhbi/sfn/buildhbee/cn/bp_art
ikel_e/docid/427611/strucid/PAGE_201098/pageid/PAGE_201098/SH/0/depot/0/inde
x.html< ." <mailto:guenther.heckelmann@bakernet.com<
guenther.heckelmann@bakernet.com or <mailto:claudia.heins@bakernet.com<
claudia.heins@bakernet.com Alert Date: 7/1/01

DE - GERMAN AIRLINE AVERTS STRIKE: On June 8, 2001, German airline Lufthansa
averted a strike with its disgruntled pilots, frustrating other union
leaders and possibly ruining the company's finances in the process. The
strike was ended by an agreement which guarantees a three year pay increase,
with a nearly 30% raise in the first year of the agreement. Although the
strike cost Lufthansa US$23 million, the pay raises are set to cost
Lufthansa almost US$99 million in the first year alone. The settlement and
the procedures to reach it have drawn fire in Germany, a nation where
management and labour groups usually broker moderate compromises. See "
Lufthansa Averts Strike
<http://dailynews.yahoo.com/h/ap/20010608/bs/germany_lufthansa_49.html< ."
<mailto:guenther.heckelmann@bakernet.com< guenther.heckelmann@bakernet.com
or <mailto:markus.kappenhagen@bakernet.com< markus.kappenhagen@bakernet.com
Alert Date: 7/1/01

DE - CYBER PROTEST COULD TOPPLE LUFTHANSA WEBSITE: On June 20, 2001, human
rights activists in Germany planned a cyber demonstration in an attempt to
crash the German airline Lufthansa's web site. The activists threatened to
flood the site with requests for information in protest of the airline's
role in the deportation of illegal aliens from Germany. See " Airline
Protest To Crash Website
<http://www.newsbytes.com/cg.../im.display.printable?client.id=newsbytes&;sto
ry.id=16699< ." <mailto:Markus.kappenhagen@bakernet.com<
markus.kappenhagen@bakernet.com or <mailto:claudia.heins@bakernet.com<
claudia.heins@bakernet.com Alert Date: 7/1/01

DE - VOLKSWAGEN SCRAPS JOBS PROGRAM: On June 25, 2001, Volkswagen AG revoked
an offer to create 5,000 new jobs in Germany after disappointing talks
between company management and trade union IG Metall. See " VW Scraps Jobs
Program
<http://www2.handelsblatt.com/hbiwwwangebot/fn/relhbi/sfn/buildhbee/cn/bp_ar
tikel_e/strucid/PAGE_201095/pageid/PAGE_201095/docid/434016/SH/0/depot/0/ind
ex.html< ." <mailto:guenther.heckelman@bakernet.com<
guenther.heckelman@bakernet.com or <mailto:markus.kappenhagen@bakernet.com<
markus.kappenhagen@bakernet.com Alert Date: 7/1/01

DE - NEW WORKS CONSTITUTIONS ACT IN GERMANY: On June 22, 2001, the German
Parliament adopted the new Works Constitutions Act 2001. The most important
innovations under the law are: (i) the simplification of the election
procedure, (ii) the establishment of additional representative bodies
besides the Works Council, which is thought to lead to a wider spread of
employee representation particularly in small and medium size enterprises,
and (iii) its extension of co-determination rights in the field of
environmental protection. See " German Parliament Works Act
<http://www.bundestag.de/<; ." <mailto:Bernhard.trappehl@bakernet.com<
bernhard.trappehl@bakernet.com or <mailto:claudia.heins@bakernet.com<
claudia.heins@bakernet.com Alert Date: 7/1/01

DE - NEW TAKE-OVER-DIRECTIVE: On June 6, 2001, the new European
Take-Over-Directive was adopted to simplify and harmonise the European
company laws with respect to take-overs. The German Government strictly
opposes the harmonisation and regulation of management behaviour in
take-over situations and will probably use the full length of the transition
period until 2007 to incorporate the Directive into German law.
<mailto:bernhard.trappehl@bakernet.com< bernhard.trappehl@bakernet.com or
<mailto:guenther.heckelmann@bakernet.com< guenther.heckelmann@bakernet.com
Alert Date: 7/1/01

DE - NEW BILL TO CHANGE THE SOCIAL COURT PROCEDURE ACT: The German
Government has introduced a bill to provide for alterations of the
provisions on fees, enhancements of preliminary relief, and acceleration of
the legal proceedings. Although the changes of the statute on fees still
includes the exemption from costs for insured persons and recipients of
benefits, it introduces provision that fees will be calculated according to
the amount in dispute pursuant to the "Gerichtskostengesetz" (Court Fees
Act). <mailto:gabriele.mastmann@bakernet.com<
gabriele.mastmann@bakernet.com or <mailto:christian.reichel@bakernet.com<
christian.reichel@bakernet.com Alert Date: 7/1/01

ES - IBIZA TROUBLED BY PLANE STRIKES: On June 25, 2001, the Spanish Airline
Pilot's Union announced that its workers plan to go on strike, one day a
week, throughout the entire summer until pilots reach a better labour
agreement. See " Pilots Strike In Spain
<http://www.burnitblue.com/news/news.asp?News=869<; ."
<mailto:choncha.martin@bakernet.com< choncha.martin@bakernet.com or
<mailto:fermin.guardiola@bakernet.com< fermin.guardiola@bakernet.com Alert
Date: 7/1/01

ES - SPANISH BANK TO CLOSE 1,000 BRANCHES: On June 26, 2001, Banco Santander
Central Hispano (BSCH), Spain's largest bank, announced plans to close 1,000
branches, sell the land, and request half of the senior staff take an early
retirement in an effort to increase profits over the next two years. See "
BSCH Closes Branches
<http://news.bbc.co.uk/hi/english/business/newsid_1408000/1408913.stm< ."
<mailto:alex.valls@bakernet.com< alex.valls@bakernet.com or
<mailto:eduardo.garcia.calleja@bakernet.com<
eduardo.garcia.calleja@bakernet.com Alert Date: 7/1/01

FR - FRENCH POLICE CLASH WITH WORKERS AS PROTESTS HIT PRISONS: On June 8,
2001, protests at prisons across France resulted in outbreaks of violence as
police clashed with disgruntled workers who were demanding more staff and
improved resources to ensure their safety. In some instances police were
forced to use batons and tear gas to disperse prison workers who were
blocking access to the jails and had to use truncheons to remove many
protestors. The protests were called by three national trade unions in
reaction to a failed jailbreak in which two guards were taken hostage by
armed inmates at a prison in suburban Paris during May of 2001. See " French
<http://sg.news.yahoo.com/010607/8/tbvl.html<; Prison Workers Clash With
Police." <mailto:denise.broussal@bakernet.com< denise.broussal@bakernet.com
or <mailto:gilles.jolivet@bakernet.com< gilles.jolivet@bakernet.com Alert
Date: 7/1/01

FR - THOUSANDS IN PARIS PROTEST AGAINST MASS LAY-OFFS: On June 10, 2001,
thousands of Parisians took to the streets to protest against mass lay-offs,
pressuring the French Government to strengthen planned labour law reform
legislation. Paris has been the site of many such protests in recent months
following massive lay-offs by many French employers. Estimates ranged from
15,000 to 20,000 participants in the protests. See " Thousands Protest Mass
Lay-Offs <http://www.latimes.com/news/nation/20010610/t000048482.html<; ."
<mailto:christine.lagarde@bakernet.com< christine.lagarde@bakernet.com or
<mailto:gilles.jolivet@bakernet.com< gilles.jolivet@bakernet.com Alert
Date: 7/1/01

FR - U.S. AND FRANCE AGREE ON TAXATION OF FRENCH SOCIAL SECURITY: Recently,
the United States and France reached an agreement on tax contributions to
and from French social security plans. The agreement clarifies the
application of Article 18 of the Convention between the U.S. and French
governments to avoid double taxation. See " U.S.-France Agreement On Taxes
<http://ftp.fedworld.gov/pub/irs-news/ir-01-54.pdf< ."
<mailto:Kerry.a.weinger@bakernet.com< kerry.a.weinger@bakernet.com or
<mailto:denise.broussal@bakernet.com< denise.broussal@bakernet.com Alert
Date: 7/1/01

FR - FRANCE INCREASES MINIMUM WAGE: On June 26, 2001, union and business
leaders in France agreed that the minimum wage increase to take effect July
1, 2001, is disappointing. Union leaders are looking for a more significant
increase; however, business leaders sought a lesser increase this year, as
many French companies are struggling with the workweek reduction and the
pending currency conversion. See " France Increases Minimum Wage
<http://www.travail.gouv.fr/actualites/declarations/dagenda.html<; ."
<mailto:gilles.jolivet@bakernet.com< gilles.jolivet@bakernet.com or
<mailto:denise.broussal@bakernet.com< denise.broussal@bakernet.com Alert
Date: 7/1/01

FR - MARKS & SPENCER EMPLOYEES IN PARIS MARCH IN PROTEST: On June 26, 2001,
the staff of Marks & Spencer, set to lose their jobs do to closure of all
French stores by the end of the year, marched through central Paris
demanding bonus payments. The protesters want an immediate bonus of f12,000
each in recognition of their work. See " Paris Protest March
<http://erope.cnn.com/2001/WORLD/europe/06/26/markspenc.strike/index.html<;
." <mailto:gilles.jolivet@bakernet.com< gilles.jolivet@bakernet.com or
<mailto:deinse.broussal@bakernet.com< denise.broussal@bakernet.com Alert
Date: 7/1/01

FR - DISMISSAL ON ECONOMIC GROUNDS WILL BECOME MORE DIFFICULT IN FRANCE: A
recently drafted bill, in the French Parliament, which addresses regulations
regarding dismissals and collective dismissals based on economic grounds,
will soon make employee dismissals more difficult. The bill provides for a
mediator to resolve conflicts as well as a works council to make alternative
proposals in the event of a disagreement. See " Job Dismissal in France Will
Become More Difficult <http://www.bakernet.com/gel/articles/France -
Dismissal On Economic Grounds.doc< ." <mailto:sophie.cahen@bakernet.com<
sophie.cahen@bakernet.com or <mailto:gilles.jolivet@bakernet.com<
gilles.jolivet@bakernet.com Alert Date: 7/1/01

FR - EMPLOYERS MUST PROVIDE EMPLOYEE TRAINING: French Labour law provides
that an employer has a general and permanent obligation to adapt an employee
to their position, by means of professional training. Most recently, French
case law has determined that an employer must ensure the adaptation of its
employees to the evolution of their positions; however, the employer is not
obligated to provide initial job training. See " Employers Must Provide
Training <http://www.bakernet.com/gel/articles/France - Employee Training
.doc< ." <mailto:christine.artus-j?gou@bakernet.com<
christine.artus-j?gou@bakernet.com or <mailto:gilles.jolivet@bakernet.com<
gilles.jolivet@bakernet.com Alert Date: 7/1/01

FR - FRENCH FINANCE MINISTER QUESTIONS NEW EMPLOYMENT LAW: The French
Finance Minister has recently raised concerns over a new employment law that
will make it more difficult for French employers to fire their staff.
Measures of the new law include mandatory pay out for all employees that are
let go, a right to employee retraining under full contract, and an increase
in the power of works committees. See " New French
<http://sg.biz.yahoo.com/010614/1/xdyq.html<; Jobs Law."
<mailto:oliver.vasset@bakernet.com< olivervasset@bakernet.com or
<mailto:denise.broussal@bakernet.com< denise.broussal@bakernet.com Alert
Date: 7/1/01

FR - PAID PATERNITY LEAVE FOR NEW FATHERS: On June 11, 2001, French Prime
Mister Lionel Jospin announced that his Socialist-led coalition government
will create a two-week paid paternity leave for new fathers by January 1,
2002. The legislation will be added to existing French labour laws that
offer all new fathers three days of paid leave in the three months following
a new birth. See " Paid Paternity <http://www.frenchduncan.co.uk/News.htm<;
Leave For Fathers." <mailto:Denise.broussal@bakernet.com<
denise.broussal@bakernet.com or <mailto:oliver.vasset@bakernet.com<
oliver.vasset@bakernet.com Alert Date: 7/1/01

FR - CONTEMPLATED CLOSURE OF PRODUCTION UNITS IN ALCATEL: On June 27, 2001,
Serge Tchuruk, Alcatel's Chairman, announced that his group will keep only a
dozen out of the 120 production units which are currently operating within
the group. He indicated that Alcatel will become "a company without
factories." The Alcatel group employs a total of 130,000 employees, out of
which 38,000 are working in France. <mailto:Gilles.jolivet@bakernet.com<
gilles.jolivet@bakernet.com or <mailto:maxime.pigeon@bakernet.com<
maxime.pigeon@bakernet.com Alert Date: 7/1/01

FR - CANCELLATION OF COMPANY SOCIAL PLAN WITHIN MOULINEX-BRANDT:
Moulinex-Brandt recently announced the closure of its factory located in the
north of France, which employs 670 employees. On June 14, 2001, the Labour
Administration ("DDTE") cancelled the social plan drafted by the employer
for the closure of this factory ("constat de carence"). The consequence of
such a decision is the obligation for the company to reinitiate the entire
dismissal procedure and to draft another social plan which will take into
account the DDTE's observations. <mailto:Gilles.jolivet@bakernet.com<
gilles.jolivet@bakernet.com or <mailto:maxime.pigeon@bakernet.com<
maxime.pigeon@bakernet.com Alert Date: 7/1/01

GR - GREEK AIRLINE UNION SET TO STRIKE: On June 9, 2001, Greece's civil
aviation authority workers announced they would conduct strikes in an effort
to demand a new work agreement. The Greek union OSPYA announced plans to
conduct a 24-hour strike on June 15 and a 48-hour strike on June 29 if a
comprehensive work agreement is not signed to ensure Greece's civil aviation
workers additional benefits and better pay. The strikes are expected to
disrupt flights during Greece's busiest tourist season. See " Greek
<http://sg.biz.yahoo.com/010608/8/ttzk.html<; Aviation Union May Strike."
<mailto:corrado.bartolli@bakernet.com< corrado.bartolli@bakernet.com or
<mailto:geza.kajtar@bakernet.com< geza.kajtar@bakernet.com Alert Date:
7/1/01

IE - IRISH SUPERMARKET WORKERS ANNOUNCE PLANS TO STRIKE: On June 8, 2001,
more than 9,000 workers at the Tesco supermarket chain throughout the Irish
Republic announced plans to strike. The anticipated stoppage is expected to
result in picketing at all of Tesco's 75 stores throughout Ireland. The
workers are represented by the Mandate trade union and Ireland's Services,
Professional Technical Union. See " Tesco Workers Set To Strike
<http://www.ananova.com/business/story/sm_321409.html< ."
<mailto:michael.ingle@bakernet.com< michael.ingle@bakernet.com or
<mailto:christine.obrien@bakernet.com< christine.obrien@bakernet.com Alert
Date: 7/1/01

IE - CALL ON GOVERNMENT TO ADOPT RADICAL STRATEGY FOR ADULT LEARNING: Irish
Tanaiste, Ms. Mary Harney T.D., recently launched the joint Council of
Directors of the Institutes of Technology, the Conference of Heads of Irish
Universities, and the Irish Business and Employers Confederation Report on
lifelong learning. See " Government Urged To Adopt Radical Strategy To Adult
<http://www.ibec.ie/ibec/Press/PressPublicationsdoclib3.nsf/966008fe067c28d8
802569420055bc17/747e98390c91b98c80256a5c005a77bb?OpenDocument< Learning."
<mailto:christine.obrien@bakernet.com< christine.obrien@bakernet.com or
<mailto:ellen.temperton@bakernet.com< ellen.temperton@bakernet.com Alert
Date: 7/1/01

IE - IRISH LABOUR UNION SETTLES GUINNESS PLANT CLOSING DISPUTE FOR 10-YEAR
SUPPLY OF BEER: It is common in the beer industry worldwide for employees to
enjoy beer privileges in the form of employer-supplied weekly beer
allotments. However, the Services, Industrial, Professional & Technical
Union ( SIPTU <http://www.siptu.ie/<; ), Ireland's largest labour union,
recently invoked the beer allowance in a unique way in settling a plant
closing dispute with Guinness <http://www.guinness.com/<; , the well known
Irish beer maker. Guinness' announcement to close its Dundalk plant led to a
longstanding dispute and strike. The company and the union recently settled
their differences by agreeing that laid off workers will receive severance
packages of between 37,000 and 137,000 Irish pounds (US$40,000 and
US$147,700), and the continuation for up to 10 years of benefits, including
the beer allowance. <mailto:christine.obrien@bakernet.com<
christine.obrien@bakernet.com or <mailto:shona.newmark@bakernet.com<
shona.newmark@bakernet.com Alert Date: 7/1/01

IE - IBEC CALLS FOR RIGHT TO WORK FOR ASYLUM SEEKERS: On June 20, 2001, the
Irish Business and Employer's Confederation (IBEC) called on the Government
to grant asylum seekers the right to work after six months, even if their
applications have not been approved within that timeframe. See " Right To
Work
<http://www.ibec.ie/ibec/Press/PressPublicationsdoclib3.nsf/966008fe067c28d8
802569420055bc17/ae99d68911d44a2880256a710032fcee?OpenDocument< ."
<mailto:john.evanson@bakernet.com< john.evanson@bakernet.com or
<mailto:michael.ingle@bakernet.com< michael.ingle@bakernet.com Alert Date:
7/1/01

IE - IBEC SAFETY GUIDE WILL HELP EMPLOYERS PREVENT ACCIDENTS: On June 6,
2001, the Irish Business and Employer's Confederation (IBEC) published a new
guide on Occupational Safety and Health, which is intended to inform
employers on measures to prevent accidents, bad health, and injuries at
work, as well as how to meet legal responsibilities. See " IBEC Safety Guide
<http://www.ibec.ie/ibec/Press/PressPublicationsdoclib3.nsf/966008fe067c28d8
802569420055bc17/c4bde05ac0643be280256a63005e5bd1?OpenDocument< ."
<mailto:christine.obrien@bakernet.com< christine.obrien@bakernet.com or
<mailto:nigel.moss@bakernet.com< nigel.moss@bakernet.com Alert Date:
7/1/01

IT - MIGRANTS INTERCEPTED OFF ITALY: On June 25, 2001, authorities in Italy
reported capturing nearly 200 assumed migrants from Bangladesh and
Afghanistan off the southern tip of the country. See " Migrants Captured
Near Italy
<http://news.bbc.co.uk/hi/english/world/europe/newsid_1405000/1405983.stm<
." <mailto:cristina.capitanio@bakernet.com< cristina.capitanio@bakernet.com
or <mailto:riccardo.sensi@bakernet.com< riccardo.sensi@bakernet.com Alert
Date: 7/1/01

IT - EMPLOYEES CAN CHALLENGE THEIR DISMISSAL ALSO BY MEANS OF A TELEGRAM
DICTATED ON THE PHONE BY A THIRD PERSON: On June 5, 2001, the Italian
Supreme Court ruled that an employee can validly challenge their dismissal
by means of a telegram if this is actually dictated and sent by the
telephone set of a third per
son, provided that the telegram clearly states
the name of the employee and there is evidence (to be given in Court) that
the latter had previously entrusted the third person with this charge. See "
Decision 7620 <http://www.legge-e-giustizia.it/< ."
<mailto:massimiliano.biolchini@bakernet.com<
massimiliano.biolchini@bakernet.com or
<mailto:paolo.soo.invernizzi@bakernet.com< paolo.soo.invernizzi@bakernet.com
Alert Date: 7/1/01

IT - PRIVATE INVESTIGATIONS ON EMPLOYEES: The Italian Supreme Court ruled
recently that employer can legitimately engage a private detective to
conduct an investigation on an employee's working activity when there is a
serious suspicion of any illegal activity against the employer (as in the
case of insider trading, breach of confidentiality, theft, etc.). Until
recently, the engagement of a private detective in labour investigations had
been permitted by judges only to the limited purpose of checking the
truthfulness of the employee's purported sickness, but not in other cases,
since the collection of any information which is not strictly related to the
performance of the employee's duties is severely banned by the law as a
criminal offence. See " Decision <http://www.legge-e-giustizia.it/< 14383."
<mailto:carlo.marinelli@bakernet.com< carlo.marinelli@bakernet.com or
<mailto:umberto.percivalle@bakernet.com< umberto.percivalle@bakernet.com
Alert Date: 7/1/01

IT - REGIONAL ALLOCATION OF WORK PERMITS FOR NON-EU CITIZENS: The Italian
Ministry of Labour recently enacted an internal <http://www.minlavoro.it/<;
regulation which allocates to each Italian Regional administration the
number of work permits to be issued in favour of non-EU citizens. According
to law decree dated April 9, 2001, the total number of permits to be granted
at the national level for the current year is 50,000 for non-seasonal
self-employed and employed workers and 33,0000 for seasonal workers. See "
Work Permits
<http://www.comune.jesi.an.it/MV/gazzette_ufficiali/2001/113/3.htm< ."
<mailto:massimiliano.biolchini@bakernet.com<
massimiliano.biolchini@bakernet.com or
<mailto:paolo.petrosillo@bakernet.com< paolo.petrosillo@bakernet.com Alert
Date: 7/1/01

IT - EMPLOYEE PRISONERS' RIGHT TO ANNUAL PAID HOLIDAYS: The Italian
Constitutional Court
<http://www.giustizia.it/cassazione/giurisprudenza/giuris.html<; recently
ruled that article 20, paragraph 16 of Law 354/1975 is unconstitutional
insofar as it does not grant a right to paid annual holidays to prisoners
who carry out any working activity within the jail's administration (as hard
labour was abolished in Italy decades ago). The Court determined that
article 35 of the Italian Constitution protects "every kind of working
activity" and that article 36 provides that "all employees have a right to
annual paid holidays that cannot be waived," irrespective of the peculiarity
of the working relationship and the conditions of its performance.
<mailto:massimiliano.biolchini@bakernet.com<
massimiliano.biolchini@bakernet.com or
<mailto:alessia.raimondo@bakernet.com< alessia.raimondo@bakernet.com Alert
Date: 7/1/01

NL - IT COMPANIES FAIL TO MEET STATUTORY REQUIREMENTS ON WORKS COUNCILS:
Many newly established IT companies have been found to have breached the
statutory requirement on setting up a works council. According to Dutch law,
a works council must be established when a company employs 50 or more
employees. Approximately 40 companies were recently inspected, more than
half of which failed to comply with the Dutch statutory requirements on
works councils. It also appears that many IT companies are unaware of Dutch
statutory requirements regarding the establishment of a works council.
<mailto:mirjam.a.de.blecourt@bakernet.com< mirjam.a.de.blecourt@bakernet.com
or <mailto:mirjana.maric@bakernet.com< mirjana.maric@bakernet.com Alert
Date: 7/1/01

NL - INCREASE OF FEMALE EMPLOYEES: Recent reports state that the expansion
of jobs in Holland in the second half of 2000 is attributable to the female
workforce. During this period the total number of jobs increased by almost
60,000 to reach a total figure of 7.4 million jobs. On the other hand the
workforce is confronted with problems with lon