Brussels, 10/05/2001 (Agence Europe) - Further to the current wave of redundancies in Europe, the Commission has decided to react through the voice of Social Affairs Commissioner Anna Diamantopoulou. On Thursday, it announced a series of measures aimed at reducing the social impact of these large job losses and to help companies and workers successfully adjust to industrial change. Measures include proposals on effective legal guarantees for workers concerning prior information and consultation, an incentive for companies to set early and effective restructuring planning in place (among other things to prepare workers before they are laid off), and a first debate on the way to orient other Community policies (competition, State aid, structural funds) towards the new needs of enterprise and of workers in an economic and commercial environment undergoing constant change.
The Commissioner pointed out that she had sent a letter to Competition Commissioner Mario Monti, in which she stresses the importance of cooperation between their two directorates-general (employment and competition) in the follow-up to existing directives (collective dismissals, company transfers, European works councils) and, above all, company relocation. A communication on social policy and competition policy will, moreover, be published during June at the initiative of Ms Diamantopoulou. It will essentially focus on the social consequences of competition policy. The Commissioner will then announce that a letter will be sent to Member States reminding them of their obligation to comply with existing legislation in this field.
In her response to the recent restructuring operations, Anna Diamantopoulou mainly pointed out that:
1) The Commission was to finalise its amended proposal on the general framework for worker consultation and information, in order to facilitate its rapid adoption with the Council (this subject will be the focal point of the Social Council on 16 June in Luxembourg). The Commission will strengthen existing legislation by integrating a provision for effective, proportionate and dissuasive sanctions in the case of infringement by companies (we recall that a majority of the European Parliament supports the sanctions recommended by the Commissioner, and also the General Secretary of the European Trade Union Confederation, Emilio Gabaglio), such as the suspension of the redundancy decision for serious infringement.
2) In the case of company merger or acquisition, it is essential to ensure that companies respect the provisions on worker information/consultation. When a company notifies the Commission of its decision to merge, it must prove that it has complied with the rules regarding worker information and consultation in time.
Finally, Ms Diamantopoulou stressed the crucial role that social partners can play in the prevention of restructuring through national action plans for employment, and the importance of funding from the European Social Fund in the face of such restructuring and in order to alleviate the consequences. At the end of June, the Commission will engage in consultation on the White Paper on the social responsibility of companies. In addition, the starting up of the Observatory on Industrial Change will be accelerated, concludes Anna Diamantopoulou.