Opinion of the Committee of the Regions on the 'Working document of the European Commission: Objective 4 and Adapt: improving the adaptation of human resources` (97/C 379/03)

THE COMMITTEE OF THE REGIONS,

having regard to the working document of the European Commission 'Objective 4 and Adapt: improving the adaptation of human resources` (SEC(96) 2150);

having regard to the White Paper of the European Commission on Growth, competitiveness and employment, the conclusions of the Essen European Council and the Confidence Pact on Employment;

having regard to the Committee of the Regions Opinion on the Role of local and regional authorities in the partnership principle of the Structural Funds ();

having regard to the Committee of the Regions Opinion on the Proposal for a Council Decision on a Third Multiannual Programme for small and medium-sized enterprises (SMEs) in the European Union (1997-2000) ();

having regard to its decision on 8 March 1996, in conformity with Article 198C fourth indent to draw up an opinion on this subject and to attribute its preparation to Commission 4 for Urban Policies;

having regard to the draft opinion (CdR 123/97 rev.) adopted by Commission 4, 30 May 1997 (rapporteur: Mr Bernard Frau),

adopted the following opinion at its 19th plenary session (meeting of 17 September).

1. Introduction

1.1. Objective 4 and Adapt: approach of the Committee of the Regions

The aim of the report under consideration is to take stock of progress made in implementing Objective 4 and Adapt. The actions under these programmes are directly in line with the conclusions of the Essen European Council and follow on from the Commission's White Paper on Growth, Competitiveness and Employment, which was rounded off by the Confidence Pact on Employment.

The structure of this progress report addresses a threefold concern:

- to recall the main policy guidelines underlying Objective 4 and Adapt;

- to present an assessment of the current implementation of programmes;

- to set out the prospects for Objective 4 and Adapt which, taking account of the guidelines and first set of results, will make it possible to derive the maximum benefit from the potential of the approach that underlies this objective.

1.1.1. The opinion seeks to take account of the wider debate on the strategic battle over the future of the European Social Fund and the future role of Objective 4. It involves firstly an evaluation of the technical content of the Commission document and secondly the presentation of a more political and broader approach to development and competitiveness which looks at society as a whole and which adds a dimension which enables a better understanding of the use of human resources in urban areas.

1.1.2. By putting forward proposals beyond the limited scope of the 'management of the workforce within companies` to tackle the full potential of urban areas - with the aim of achieving sustainable social and individual development - the COR advocates a broadly conceived outlook on the interactions between industrial change, growth, competitiveness and employment, one which focuses more on people and goes beyond exclusively quantitative forms of analysis.

2. General comments

2.1. Summary of the policy lines of the initiative

Objective 4 and Adapt actions are aimed at improving the competitive environment of businesses in the industrial and service sectors, with the twofold aim of preventing unemployment and increasing the overall competitiveness of the economy. They aim in particular at improving the management of human resources in the context of present-day change. Their horizontal character means that they can be implemented throughout the EU.

2.1.1. Priority and specific aspects

The objective is to concentrate projects on the most important requirements so that their effect is not dissipated and they function more efficiently.

There are six key elements in the formal arrangements covering firstly priority aspects and secondly specific aspects of the projects. The three priorities are found below followed by the three specific aspects of the projects:

- Anticipation: required to identify the impact of change and thus minimize its effects, by improving the adaptation capacity of workers and tapping new job opportunities.

- Training and upgrading of basic skills: on the basis of the needs identified by the anticipation measures, it is necessary to improve training content and match qualifications to demand in order to respond to the requirements of new systems of work organization.

- Improving training systems: to improve the capacity of training systems in terms of both material and human resources - the training of trainers, the development of multimedia, improvement of pedagogical methods and tools - in the case of both existing continuing training in the Member States as well as in-house training provided by companies themselves.

- People threatened by unemployment: two categories of workers are identified, those who are poorly qualified or have no qualifications and those whose qualifications have become obsolete and unsuited to new needs.

- The specific needs of SMEs: as far as difficulties in accessing anticipation and training mechanisms are concerned, the objective of the measures is to promote quality services for SMEs to enable them to act under their own responsibility in this area.

- Partnership: bigger and broader participation of players at the various levels of planning and execution is sought to make Objective 4 as effective as possible. The development of cooperation networks at all levels (local, regional and national) is also planned in this connection.

2.1.2. There is a clear diversity of approaches due to the different national contexts and the strategic choices made by Member States. National policies vary greatly as regards adapting workers to industrial change (degree of public sector intervention, methods of co-financing, 'embedding` of anticipation, etc.). One also notes varying degrees of strictness in the interpretation of the programming guidelines. Few national contexts are compatible with all the guidelines, which means that the Member States have to make binding choices for Objective 4 implementation.

3. Specific comments

3.1. Presentation of the first set of results

Effective implementation of Objective 4 actions has been slow in the Member States and the extent of implementation rather variable. Preference has been given to implementing Objective 3 actions (tackling unemployment) by the administrations responsible. Although the programmes have a common structure, there are wide variations in the approaches taken and the results currently achieved in the various Member States largely as a result of different levels of public sector subsidies, differences in co-financing and different interpretation of the guidelines.

3.1.1. Despite the short implementation period and unevenness in the monitoring systems, several general trends can be identified.

As far as programming is concerned, the emphasis has been put on training. There is a lack of consistency when it comes to anticipation of trends. The principle of horizontality has been limited by the sectoral organization of training systems and there is a clear lack of concentration linked to the difficulties experienced by SMEs in obtaining co-financing. Though partnership is an objective common to most Member States the obstacles faced by weak companies in obtaining partners varies widely.

3.2. Problems linked to Adapt

3.2.1. Adapt projects deal both with SMEs and the structures which provide them with support locally, regionally or nationally to adapt to change. The following figures should be kept in mind when considering these criticisms:

- 15 % of projects so far confirmed are concerned with the creation of new jobs. There are significant clusters in tourism, the environmental sector, the social economy and occupations related to addressing social needs.

- 20 % of projects are concerned with work organization, quality management and health and safety at the workplace.

- 20 % of projects are concerned with anticipation and the development of better tools to help small businesses and organizations serving workers.

- A large number of projects address the development of better local structures.

3.2.2. There are two major problems with Adapt as identified by the Commission which need to be tackled:

- The complexity inherent in the implementation of transnational programmes involving a wide range of participants at the four levels at which action is taken - Community, national, regional and local.

- The difficulty in implementing transnational programmes within a regulatory framework designed to accommodate essentially national programmes. Provision should therefore be made for legislative measures to promote transnational programmes.

3.2.3. Implementation of Objective 4 appears to produce 'structuring` effects which affect active labour market policies. This involves incorporating Ministries for Labour as partners for policies other than those relating to the management of unemployment and the strengthening of the concept of an active and preventive labour market policy in preference to remedial or crisis policies.

3.3. The European Commission's conclusions

3.3.1. Given a certain number of difficulties in implementation arising from the novelty and complexity of the approach, together with fast-moving developments even in the context of structural change, the emergence of the information society, difficulties linked to the current state of the economy and problems in respect of project co-financing, the European Commission takes the view that it is important to adopt the following changes:

- To clarify the concept of structural change in the context of sustainable development.

- To facilitate the task of anticipation.

- To focus efforts on innovative activities in the field of anticipation and its links with training and connected systems and on combating the problems affecting SMEs.

- To strengthen partnerships everywhere and at all levels.

- To ensure financing while abiding by the principle of cost-effectiveness.

3.3.2. The Commission adds that these changes need to be implemented without modifying the guidelines relating to Objective 4 and Adapt.

4. Recommendations

The Committee of the Regions:

4.1. Welcomes the proposal for change advanced by the Commission and in particular the problems associated with financing, concentration and partnerships.

4.2. Notes the negative impact of globalization and current macro-economic policies on employment and calls for a wide debate on the place of work in the society of today coupled with the promotion of an active market policy which acts as an instrument for creating jobs for the most disadvantaged groups in the labour market. In discussions on the reform of European Structural Fund aid, it should be ensured that the tools of an active and preventive labour market policy continue to be part of Structural Fund arrangements.

4.3. Considers it important that Objective 4 resources are also used to fund projects which increase cooperation between the public and private sector and improve the functioning of local labour markets by enhancing and upgrading the skills of employees of local and regional authorities.

4.4. Asks that steps be taken towards a more decentralized approach, bringing responsibility for the management of Objective 3, Objective 4 and the Community initiatives Adapt and Employment together under the aegis of regional partnerships. This will make for better coordination between the various European Social Fund actions and with other aspects of the Structural Funds, which are predominantly administered at regional level.

4.5. Calls for the simplification of tendering procedures and the introduction of new criteria which will ensure that those SMEs in need most of assistance can obtain the necessary co-financing; points out that given the budget situation of public authorities in many regions, very limited funding, if any, is available for the prescribed national co-financing; therefore calls for the proportion of co-financing by national public authorities to be reduced, for replacement of public co-financing by private co-financing to be allowed in principle, and for the duration of the Adapt programme to be extended by 1-2 years.

4.6. Suggests that the regions be given a greater role in the selection of projects.

Brussels, 17 September 1997.

The Chairman of the Committee of the Regions

Pasqual MARAGALL i MIRA

() OJ C 100, 2. 4. 1996, p. 72.

() OJ C 34, 3. 2. 1997, p. 34.