Resolution of the Committee of the Regions on the European Employment Pact

(1999/C 293/14)

THE COMMITTEE OF THE REGIONS,

having regard to the Bureau's decision on 7 May 1999 to draw up a resolution on the subject and to direct Commission 6 - Employment, Economic Policy, Single Market, Industry and SMEs - to carry out the preparatory work;

having regard to the forthcoming European Council meeting on 3 and 4 June 1999 in Cologne, at which the Presidency is to put forward a proposal for a European Employment Pact;

having regard to its earlier opinions on employment, viz.

"The role of local and regional authorities in linking education and training establishments to enterprises"(1); "The proposal for a Council Decision on measures of financial assistance for innovative and job-creating small and medium-sized enterprises (SMEs) - The growth and employment initiative"(2); "Forthcoming economic policy guidelines"(3); the Communication from the Commission: "From guidelines to action: the National Action Plans for Employment" and the Communication from the Commission: "Proposal for guidelines for Member States' employment policies in 1999"(4); the Communication from the Commission adapting and promoting the social dialogue at Community level and the draft Council Decision amending Decision 70/532/EEC setting up the Standing Committee on Employment in the European Communities(5);

having regard to the draft resolution prepared by Commission 6 on 11 May 1999 (Rapporteur: Mr Henning Jensen);

whereas local and regional authorities in many Member States play a key role in shaping the environment and conditions under which enterprises operate. They have an important function in supporting local economic and industrial development by securing a favourable socio-economic climate which can attract and promote the establishment and development of businesses;

whereas local and regional authorities are major players in providing education and training since they can help bridge the gap between education/training establishments and enterprises and, through their strategically well-placed position, foster greater partnership and dialogue between all relevant protagonists at local and regional level in these two sectors;

whereas local and regional authorities play a crucial role in generating employment - both directly as employees, and indirectly, through fostering a favourable business climate. They are major employers by virtue of their involvement in the development of the local and regional economy and expertise in such matters, their responsibilities (where appropriate) in the employment sector and their contribution towards the promotion of social integration, based on their sound knowledge of the local situation;

whereas the Committee of the Regions has proposed an initiative called "Local Action for Employment 99", which places local and regional authorities in a position to promote the national employment action plans;

whereas the Committee of the Regions and the local and regional authorities, and/or their organisations, are involved in the implementation of instruments promoting and developing social dialogue at Community level,

adopted the following resolution at its 29th plenary session on 2 and 3 June 1999 (the meeting of 2 June).

The Committee of the Regions

1. supports the Employment Pact's primary aim, namely to coordinate the Member States' macro-economic policies and ensure friction-free interaction between the twin aims of general growth and employment growth while preserving price stability;

2. believes that it is important that national measures to boost employment be backed up by a European Employment Pact. Improved coordination of the economic and fiscal policies of the EU Member States, the harmonisation of taxes on energy and capital dividends and the implementation of fair competition in respect of taxes would be desirable. The requisite measures taken by the Member States to solve the employment problems must be supported and rounded out by the EU;

3. supports the inclusion of the social partners in the Pact but regrets that the role of the local and regional authorities is not spelled out in contrast to the Commission's recent Communication on Community policies in support of employment;

4. stresses that the implementation of measures connected with the European Employment Pact, as indicated therein, must be compatible with the principle of solidarity and respect for national labour market systems, including collective bargaining agreements in the individual countries and differing wage-fixing arrangements;

5. highlights the key role played by regional bodies as both players and employers in attaining the major objective of promoting employment through practical implementation of a wide range of initiatives seeking to create sustainable jobs, which must be given top priority. In most cases it is at regional level that employment promotion schemes, especially those focusing on especially vulnerable groups, are put into practice. This point is moreover borne out in the previous COR opinions referred to above;

6. insists that the municipalities and regions must have the widest possible scope to plan and carry through employment measures in the most appropriate manner. This should be done in conjunction with the social partners and in keeping with the four pillars of the EU employment guidelines for 1999:

- employability

- entrepreneurship

- businesses' adaptability

- equal opportunities;

7. stresses that regional/local self-determination in employment matters is a prerequisite for efforts to tailor workforce skills to the needs of local enterprises. This key condition for effective employment action brings home the above-mentioned need to involve regional and local authorities more closely in the framing of the national employment action plans;

8. draws attention to the territorial employment pacts as an effectively-functioning model of local and regional partnerships and to the crucial role of local and regional authorities within these partnerships;

9. considers that the experiences of territorial employment pacts and the new practices emerging from them should be genuinely taken into account when national action plans for employment are drawn up;

10. stresses that territorial employment pacts provide opportunities for the coordinated use of employment policy instruments, including for example measures to create small business in new business areas where the markets are uncertain and risks for new enterprises therefore specially high. These employment pacts also offer wide scope for further action and for follow-up after the start-up phase;

11. points to the importance of EU programmes and Funds which aim to promote employment. Here the Structural Funds , support for innovatory measures and the dovetailing of the various employment policy action areas at local and regional level are particularly valuable;

12. underlines the importance of a particularly intensive drive to target the following groups;

1. young people and women,

2. groups at risk of being pushed out of the labour market,

3. older workers,

4. low-skilled groups,

5. groups with other problems that aggravate unemployment,

6. refugees;

13. points out that speedy action tailored specially to the young unemployed and women can help significantly, notably in preventing long-term unemployment and promoting equal opportunities;

14. highlights the importance of a special measure focusing on groups at risk of being pushed out of the labour market, for instance as a result of poor health or inadequate education;

15. restsses that the higher age group makes a valuable contribution, in economic terms and in terms of their experience. Attention must be focused on schemes that can help keep older workers in touch with working life;

16. advocates the promotion of a flexible labour market, for instance through facilitating access and a smooth transition from one occupational sector to another. Here it is important to explore the scope for more flexible work organisation so as to adjust working time to the differing stages of life;

17. emphasises that any changes to workers' employment conditions, such as the transition from one occupational sector to another, allowing older people to stay in work longer, training, flexible working hours etc., should be carried out in a dialogue between employers and employees;

18. considers that a special vocationally-oriented measure is needed to assist groups with physical and/or psychological problems that aggravate unemployment;

19. is convinced that effective integration of refugees received by the EU must include the labour market. In connection with the provisional reception of refugees from the former Yugoslavia, however, the aim of the EU to ensure their possible return to the home countries is endorsed;

20. emphasises, lastly, the value of improving comparative statistics on labour market conditions so as to provide benchmarking examples of best employment conditions and practices in the individual Member States to serve as inspiration and lesson to the others.

Brussels, 2 June 1999.

The President

of the Committee of the Regions

Manfred DAMMEYER

(1) CdR 346/96 fin - OJ C 116, 14.4.1997, p. 98.

(2) CdR 46/98 fin - OJ C 251, 10.8.1998, p. 41.

(3) CdR 110/98 fin - OJ C 51, 22.2.1999, p. 63.

(4) CdR 279/98 fin - OJ C 51, 22.2.1999, p. 59.

(5) CdR 343/98 fin - OJ C 93, 6.4.1999, p. 54.