Brussels, 20/04/2000 (Agence Europe) - To avoid serious problems related to employment and social conditions, 40 trade union organisations in the EU and their American counterparts are calling for inclusion of a social clause in merger regulations and the directive on public takeover bids. Such a clause would require respect for workers' right to information and consultation, trade union rights and social dialogue. This request was elaborated at the meetings held on 18 and 19 April in Brussels between 40 trade union representatives from the EU, and their US counterparts, Members of the EP and the Secretary General of the European Trade Union Confederation (ETUC) Emilio Gabaglio and the Deputy Director General for the DG for Competition, Gianfranco Rocca. The trade unionists voiced their concerns over the planned MCI/Worldcom-Sprint merger (see EUROPE of 17/18 April, page 16) at these meetings.
Even if the Commission gives its endorsement to this operation, the trade unions call for it to be conditioned to a sale of assets and that it should be the subject of control and very close follow-up. The same requests were formulated by the UNI, last week in Lisbon, to the Portuguese President Sampaio, who then sent a letter to Prime Minister Guterres (whom the trade union delegation will see next week) calling on him to intervene on this issue with the European Commission, said Louis Neves (Head of the Telecommunications Department with UNI - Union Network International). Emilio Gabaglio, for his part, assured the UNI delegation that the matter would be on the political agenda of ETUC and that it will raise the matter with Commission President Romano Prodi and Competition Commissioner Mario Monti.
Two letters were sent to Commissioner Mario Monti expressing their opposition to merger between the two American telecommunications giants, MCI/Worldcom and Sprint, two companies which do not comply with workers rights and which take measures against trade unions, and which have no social dialogue tradition", explained Mr Neves. "We have not received any answer. We want our word to say on the mergers, which represent a danger from the consumers point of view and concerning control of Internet traffic". He went on to add: "Mr Rocca has told us of the questions that the Commission was going to put to the companies concerned by the merger in three fields: control of Internet traffic, duopoly of large enterprises based in the United States which hamper voice telephony; the problem of multinationals which are the clients of the enterprises in question. We told him that the Commission could not place its trust in these companies given that they have never kept their promises in the past, mainly concerning the creation of jobs during the MCI merger with Worldcom in 1998 (6,250 jobs created out of the 10,000 promised)", concluded Mr Neves.