Brussels, 12/12/2006 (Agence Europe) - In a press release published on 11 December, the European Federation of Food, Agriculture and Tourism Trade Unions (EFFAT) expresses concern over the consequences of the reform of the sugar common market organisation (CMO). EFFAT does not oppose the reform, but is critical of the way in which the programme, endorsed by the European Commission, for restructuring the sector (see EUROPE 9313) is implemented. It particularly regrets that the Commission is approving restructuring plans when a redundancy programme has not been agreed among the social partners, as was the case in Ireland, where 325 workers lost their jobs with no compensation;
EFFAT, which represents 128 organisations in 35 countries, says that it has consistently opposed the reform adopted by the Council, which, it claims, is likely to result in the closure of 100 factories and the loss of 150,000 direct and indirect jobs in the European sugar sector. Giving a contrasting first assessment of the restructuring programmes undertaken, EFFAT believes that 40 sugar factories in fifteen Member States have closed or are about to close their plants. “About 4,000 direct and 20,000 indirect workplaces have been destroyed in 2006 or will be in 2007,” the Federation says, going on that, from this total, only five companies (covering about 1,800 direct workers from fifteen factories in three countries) decided to couple restructuring plans with the abandonment of production quotas so as to get support from the EU temporary restructuring fund.
EFFAT General Secretary Harald Wiedenhofer notes with concern that the reform offers specific aid for farmers, but workers have to fight to have their rights enforced. In addition, some companies, like Greencore in Ireland, handle restructuring in “socially irresponsible manner”. EFFAT urges all companies which signed up to the Code of Conduct on Corporate Social Responsibility (and this includes Greencore) to abide by the commitments they subscribed to. Mr Wiedenhofer calls on the European Commission to monitor more closely the way in which the reform unfolds across the EU. EFFAT calls on national authorities to follow the positive examples set by Spain and Italy. The Commission is also invited to consult the social partners “in order to ensure that the revised provisions will correct the current inadequacies of the reform's social dimension”.
Finally, while acknowledging that bioethanol is one possible diversification measure, EFFAT fears that current negotiations between the EU and Mercosur (and Brazil in particular) “will jeopardise the future of this alternative production in Europe”. (lc)