Brussels, 14/10/2013 (Agence Europe) - The 40% quota of women on the boards of directors has passed the first stage of the European Parliament. Companies that do not put in place transparent recruitment procedures to achieve this quota could be excluded from public calls for tender. On Monday 14 October, the Parliamentary committees on women's rights (FEMM) and legal affairs (JURI) adopted by a very comfortable majority, the draft report on respecting the philosophy underpinning the controversial draft directive introduced by the European Commissioner for Fundamental Rights, Viviane Reding.
The draft report by Evelyn Regner (S&D, Austria) and Rodi Kratsa-Tsagaropoulou (EPP, Greece) was adopted by the joint committees by 40 votes in favour, 9 against, with 2 abstentions. It maintains the 40% quota of women on non-executive posts on the boards of directors in European companies quoted on the stock exchange. Private companies should reach this quota by 2020 and by 2018 for their public counterparts. It is, however, a “temporary” measure, which is expected to disappear by 2028. MEPs and the committee on the quota “procedure” highlighted the need for a recruitment process that duly took into account gender under representation, rather than a purely quantitative quota.
Despite the insistence of certain MEPs (Greens and socialists), SMEs quoted on the stock exchange will be excluded from the scope of the future directive. Nonetheless, MEPs have called on member states to raise awareness among these SMEs to develop equal gender opportunities at all corporate levels. The FEMM and JURI committees have also ensured that the same quota applies to companies that have fewer than 10% employees (which was excluded from the Commission proposal).
Regner also explained that, “We don't have an exemption for family enterprises or specific sectors, but strengthened the possible sanctions, member states should apply when companies don't fulfil the obligations of the directive”. MEPs have effectively strengthened the chapter in the draft directive on sanctions. They added compulsory penalties instead of indicative ones proposed by the Commission for selection procedures that do not promote employment when gender underrepresentation has been identified. MEPs also insisted that qualifications and merit were rewarded. If this is not the case, companies lacking transparency will have to justify themselves to the authorities of their respective countries, explained MEPs. They could be excluded from public calls for tender, as suggested by MEPs in the list of possible penalties.
This clear support by the European Parliament is obviously seen as a success for Reding, who has been fighting for this draft directive, despite attempts by around ten member states that are still intent on torpedoing it. Following the MEPs' vote, the Commissioner asserted, “we have got the ball rolling”. She also affirmed that, “cracks are starting to show on the glass ceiling” (preventing women from accessing senior posts). Commission figures published the same day on the position of women in the decision-making process reveal that the number of women sitting on the boards of companies quoted on the stock exchange increased by around 1% (from 15.8% in October 2012, the date of the draft directive's presentation, to 16.6% in October 2013). Reding therefore believes that legislative pressure is working. Increasing numbers of companies are competing with each other to attract the best women candidates. They know that if they want to remain competitive in the global economy they cannot allow themselves to ignore the skills and talent of women.
The vote effectively gives a mandate for negotiations to the rapporteurs to begin discussions with the Council. The Commissioner is expecting “swift progress” on her legislative proposal. (MD/transl.fl)