Strasbourg, 13/02/2001 (Agence Europe) - Speaking on behalf of the European Parliament's Committee on Employment and Social Affairs, that he chairs, French Socialist Michel Rocard asked the European Commission on Tuesday whether it believes it is essential to propose revision of the directive on European works councils and prepare changes to the directives in force on collective dismissal and company transfer, given the social consequences of the wave of industrial restructuring and mergers. There are said to be over 300 mergers annually, not only in the new technologies sector but also in "what is curiously known as the old economy, that is, a large part of the economy", remarked the former French Prime Minister. Noting that the European Council of Nice had sent "positive signs" in social matters (the European Social Agenda and the agreement on the statute of the European Company), Mr Rocard asked the European Commission to "base itself on this new political will" in order to guarantee that this process of restructuring and mergers takes the social consequences more into account. He went on to ask whether it might not be normal for the European Commission, when it examines a merger operation, to ensure that the move complies with social directives. "Would it not be normal to impose sanctions in the case of non-respect of these directives?" he asked.
Mr Rocard stressed that the Committee on Social Affairs was unanimous on this matter, but several differences came to light during the debate. British Labour member Stephen Hughes thus invited the Liberal Group to withdraw its "highly destructive" resolution (that will be voted on Thursday, at the same time as that by the committee chaired by Michel Rocard). Dutch Christian Democrat Bartho Pronk announced amendments to the resolution by the Committee on Social Affairs, in order to place emphasis on the freedom of choice for enterprise. If the obligation to consult is respected, then restructuring is carried out better, noted Mr Pronk, citing the example of Volkswagen. Mr Hughes found the promises made by Commissioner Byrne (see below) too vague. He spoke of the case of recent dismissals in the United Kingdom. French Communist Sylviane Ainardi added to this by citing companies such as Danone, Michelin and Moulinex, which, she remarked, are certainly not "in difficulty". In her view, if Community directives are not complied with, it will be necessary to go as far as to suspend the dismissals and mergers in question. The European Parliament gives the impression in this affair of "collective dementia", exclaimed Dutch Liberal Elly Ploij-van Gorsel, who recalled that the plenary held the same kind of debate in 2000, in 1999 and even earlier. "We cannot just speak of the social agenda of Nice and forget the process of Lisbon, in which we said that we wanted to make Europe the most competitive economy in the world", she said.
Speaking for the European Commission, David Byrne was very cautious. Before reviewing the directive on European works councils, it would be better to "wait a bit", he said, although he did admit that, sooner or later, this directive should be updated. There is also "unfinished business", stressed Mr Bryne with reference to the decision on the statute of the European Company (at this point, Mr Hughes protested saying: Don't take the connection between the statute of the European Company and the other directives as a pretext for not moving on the latter). Mr Byrne pointed out that the European Commission is reflecting on the possibility of making "more systematic" the hearings that it is already organising, in some cases, with workers concerned by merger operations.
Social Affairs Commissioner Anna Diamanopoulou remarked that certain directives mentioned during this debate had been adopted at a time when the employment situation in Europe was better than today, and that this should be taken into account. However, she added, in response to criticism from MEPs, the efforts made by the Commission to strike a balance between competitiveness of the European economy and social cohesion should be recognised. While noting that, in one month, over 5000 jobs have been lost due to restructuring, she stressed that European companies must be able to take part in this restructuring movement. Otherwise, she said, some sectors will completely disappear. At the same time, Ms Diamantopoulou made it clear that legislation is not enough, and the companies must assume their responsibilities towards workers.