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Rulemaking‑
Public Policy
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Very high level of Government mandated
benefits ‑ Tends to limit scope of bargaining
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35 hour week since
2000
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Has to be implemented by collective
bargaining agreements
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Unions actually objected to the 35-hour law
since it allowed employers to introduce more flexible working hours and it
involved a temporary pay freeze for many workers
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Employers fiercely opposed to 35 hours and
have lobbied hard to rescind it
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Law has already been amended to reduce its
impact on small employers with fewer than 20 employees
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Government has also proposed letting the
parties agree to longer hours in collective bargaining
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Limits on hours
apply to managers as well
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Labor inspectorate raids employers looking
for managers working extra hours without adequate records or overtime pay
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Limit on annual
overtime of 180 hours
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Government is hoping to raise this to 220
in 2005
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11 paid holidays
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More holiday and vacation time than any
country in course but Germany
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Overall second lowest annual hours of work
in the course after Germany
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Retirement at age 60
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Has created real pension problems for
government which is looking for ways to reduce costs
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