The statement in the compromise that was vote through the ECON Committee on Monday June 14 are very similar to the proposed wording from NFU. The formulation concerns social partners’ absolute right to regulate variable pay through collective agreements. The formulation, which was supported by all main political groups in the Committee, reads:

“The provisions on remuneration in point 22 are without prejudice to the full exercise of fundamental rights guaranteed by the Treaties, in particular the right of social partners, in accordance with national laws and traditions, to conclude and enforce collective agreements;”

NFU began working with this issue already in the summer of 2009, when it became evident that the European Commission aimed at regulating variable pay in banks in a revised Capital Requirements Directive (CRD). Although the formulations in the Directive aims at curbing bonuses to top management, the potential implications for the right to free collective bargaining were vast. Together with staff at its member unions, NFU began an intense lobbying effort to change the formulations.

NFUs proposal has already been endorsed by the European Parliament Committee for Employment and Social Affairs. The entire compromise proposal on CRD will be up for voting in the European Parliament plenary in July, and since both committees support the NFU view, success is likely.