EU leaders and the European social partners met in Brussels on Wednesday 18 March for a new tripartite social dialogue, largely dominated by concerns over energy costs in the context of the war in the Middle East, as well as by plans to simplify legislation and boost competitiveness.
Among these, the new proposal for a regulation on the 28th regime (see other news) is of particular concern to European trade unions, as the Irishwoman Esther Lynch, General Secretary of the European Trade Union Confederation, highlighted.
The social partners, represented in particular by BusinessEurope, SGI Europe and SMEUnited, agreed with the Presidents of the European Council and the Commission, António Costa and Ursula von der Leyen, on joint messages at the end of the meeting.
“Our social market economy is what protects Europe’s social fabric in these volatile times. And we must strengthen it even further. As the war in the Gulf drives energy prices up again, our immediate focus has to be on protecting our most vulnerable consumers and businesses. With short-term relief for those who urgently need it. And by strengthening our independence thanks to the phase-out of unstable fossil fuel imports. As we design solutions, it is vital to engage closely with the social partners”, commented Ursula von der Leyen.
The discussion also focused on quality jobs. “In Cyprus there is a long tradition of social dialogue. By working side by side with social partners, our government ensures that employment policies are not simply imposed, but constructed together”, said Cypriot President Nikos Christodoulides. “A strong social dialogue is a major pillar of our Union’s competitiveness and a priority for the Cyprus Presidency” of the EU Council, he also commented.
Employers “count on the European Council to agree an ambitious roadmap with concrete measures and timelines. The need to act without delay is greater than ever”, commented Fredrik Persson, President of BusinessEurope.
On energy, the President said it was “essential to avoid an abrupt ETS end game” (see other news). “Secondly, it is crucial to integrate responsible management of free quotas. I hope and expect we will hear from the Council on this matter”.
For her part, Esther Lynch called, on behalf of the workers’ unions, for “investments to speed up the transition to renewable energies, as this will reduce our dangerous dependence on oil and gas. We said that the Commission should present options to move beyond the system where fossil fuels determine overall electricity prices because we have seen in many Member States who are doing that that they are already making savings”.
European workers “are already paying the price of successive shocks, with cost-of-living crises and job losses mounting across the economy. The EU must urgently bring in crisis management tools to protect jobs and production in strategic sectors, building on the success of SURE, and stronger internal demand through higher wages and bargaining coverage”.
But Ms Lynch focused her message on the new draft 28th regime, because “it is quite fearful for workers who are afraid for their jobs to hear the idea that we are going to make it quicker and easier to close companies”.
The ETUC “completely supports the idea that people should be able to open a company without being stigmatised or barred from ever getting a loan or lifelong debt relief”.
At the same time, rights must ensure “that employees get consulted, that they hear information about the closure, and above all that they get their wages in an insolvency situation (often two or three months), and then their holiday pay (six months) for many workers who are one month away from being able to pay the mortgage or rent”.
In a press release, the ETUC deplored the fact that the draft regulation does not contain any legal provisions to prevent companies operating under the 28th regime from: - refusing labour inspections; - avoiding national labour law and collective agreements; - replacing guaranteed wages or employment contracts with stock options; - ignoring workers’ rights to information and consultation in restructuring processes; - or avoiding social security payments and national tax. (Original version in French by Solenn Paulic)