Opinion of the Economic and Social Committee on the 'Communication from the Commission concerning the social action programme 1998-2000` (98/C 407/30)

On 5 May 1998, the Commission decided to consult the Economic and Social Committee, under Article 198 of the Treaty establishing the European Community, on the above-mentioned communication.

The Section for Social, Family, Educational and Cultural Affairs, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 16 July 1998. The rapporteur was Mr Meriano and the co-rapporteur was Ms Engelen-Kefer.

At its 357th plenary session (meeting of 9 September 1998) the Economic and Social Committee adopted the following opinion by 102 votes to four with seven abstentions.

I. Broad outline of the communication

1. The Commission's communication concerns the social action programme 1998-2000, which follows on from the previous programme (1995-1997), based on the green and white papers on social policy (1993 and 1994).

1.1. The document begins by briefly taking stock of initiatives taken so far (listed in annex 1 to the document) and analysing the social challenges generated by current developments (high unemployment, the pace of change, poverty and social exclusion and also the advent of EMU, demographic trends and the prospect of enlargement). The Commission then defines new targets for European social policy, taking account of relevant institutional innovations, introduced by the Treaty of Amsterdam, which also incorporated the Agreement on Social Policy.

Against that backdrop, proposals for social action are developed under three main headings:

- Jobs, skills and mobility

- The changing world of work

- An inclusive society

1.2. As regards policy instruments, special emphasis is given to the importance of political, social and civil dialogue. Here the Commission intends to play a specific role in monitoring commonly agreed objectives, with particular regard to European employment strategy. It also announces forthcoming proposals for renewing social dialogue. The strategy will be applied through the Structural Funds and in particular the European Social Fund, for which the proposed reform places emphasis on supporting the modernization of education, training and employment systems. With regard to legislation, the Commission intends to hold periodic discussions with the European Parliament and the Council to follow up pending proposals, listed in annex 2 to the communication.

1.3. Under the first of the three key lines of action, the Commission intends to further the implementation of the employment strategy defined at the Amsterdam and Luxembourg summits, by means of annual assessments and possible recommendations to Member States. Measures will include the promotion of the exchange of best practice and innovation, paying specific attention to the problem of undeclared work and reserving the right to apply the incentive measures provided for in the Treaty of Amsterdam, once it is ratified. More specifically, the Commission will work to improve employability, entrepreneurship and equal opportunities, on the basis of proposals made to date and those to be tabled during the year for a new generation of education and training programmes. Commission measures to promote the free movement of workers will be set out in a package of proposals to adapt and update key legislation, to be presented before mid-1998.

1.4. Under the second key line of action, the Commission focuses on the modernization of work organization and refers to the debate launched in its green paper and the importance subsequently given to the issue by the extraordinary European Council on employment in Luxembourg. The Commission states its intention to present a new communication on work organization and promoting adaptability at the end of 1998 and to consult the social partners on a possible framework agreement on the subject as a whole, including working time flexibility and the need for Community action to protect teleworkers. Alongside these initiatives, which include proposals for the protection of workers excluded from the working time directive and an initiative to encourage greater worker participation in companies, the Commission refers to the brief given it by the Jobs Summit to set up a high level group to examine the economic and social implications of industrial change. On the basis of that group's suggestions, the Commission will pursue the adoption of minimum standards for informing and consulting workers at national level, and in 1999 it will present a report on the implementation of the European Works Council Directive.

Along the same lines, the Commission will prepare specific actions to maximize the contribution of the information society to promoting employment, equal opportunities and social inclusion. It will complete the current Community programme on health and safety at work (1996-2000), and will present proposals to update existing legislative instruments to include risks that are not currently covered.

1.5. Regarding the topics covered by the third key line of action, the communication gives centre stage to modernizing and improving social protection, following the debate launched in last year's communication (). In early 1999, the Commission will present an evaluation of progress made, paying particular attention to the convergence of social protection systems on the basis of the Council's 1992 recommendation (). Furthermore, before the end of 1998, the Commission will make proposals for the reform of Regulation 1408/71 on the coordination of social security schemes. In 1999 it intends to table a proposal updating and completing the legislative framework for equal treatment of men and women in social security schemes.

On the issue of social inclusion, the aim is to devise an initiative to prevent the formation of pockets of exclusion. During 1998, the Commission intends to present a report on social inclusion and a report on the implementation of the 1992 recommendation on minimum income. It will also consider proposing measures to promote the integration of people excluded from the labour market, applying the incentive measures provided for that purpose by the Treaty of Amsterdam, once it has been ratified.

On the subject of combating discrimination, the Commission states its intention to establish specific actions to promote equal opportunities between men and women and to draft a legislative proposal, once the Treaty is ratified, to combat racial discrimination. It will also seek to ensure that measures taken under Article 95 of the Treaty of Amsterdam take account of people with disabilities, in accordance with the commitment made in the Declaration annexed to the Treaty. Lastly, it will further the debate on fundamental rights, building on the report of the Comité des Sages.

The Commission intends to promote a society able to provide effective health protection, on the basis of experience gained in the field of the current framework programme, pursuing its strategy on combating tobacco consumption and implementing existing health programmes (AIDS, communicable diseases, cancer, drug dependence, etc.).

1.6. The final section of the communication addresses the external dimension of social policy. It refers to the growing involvement of the accession countries of central and eastern Europe in social policy programmes and activities and in the promotion of the social dialogue, and also mentions the financial contribution to be made, in particular through the Phare programme, to developing and adapting the social infrastructure in those countries. In view of the EU's increasing responsibilities at world level following the establishment of EMU, the Commission will present a communication in 1998 on the development of the external dimension of European social policy. It will also work to promote a core of internationally recognized standards and seek to strengthen cooperation between the ILO and the WTO in this respect.

2. General comments

2.1. The Committee is aware that the Treaty of Amsterdam has established favourable conditions for strengthening social policy and shares the Commission's view that the new social action programme should, as of now, take account of the new possibilities that will arise once the treaty is ratified. The Committee takes the view that social policy at European level should be aimed at building a consensus on minimum conditions that are compatible with the demands of competitiveness, with a view to safeguarding the European social model, while making the necessary adjustments over time in response to changing circumstances.

2.2. While the European social model - primarily intended as a permanent means of reconciling the interests of the various social groups - is rightly considered to be a constant value in society, its true worth in practical terms will be determined essentially by its capacity to respond swiftly to the challenges presented by an era undergoing rapid transformation. Among the political and institutional challenges, the Commission communication places appropriate emphasis on the establishment of the European Monetary Union, already well-advanced, and the prospect of the progressive enlargement of the EU to the countries of central and eastern Europe. However, on neither of these issues has the Commission yet conducted an appropriate analysis of the foreseeable impact of current change on social policy as a whole.

2.3. The Committee agrees with the Commission that the new economic environment created by EMU will render a close link between economic and social policy more necessary than ever. With particular reference to its earlier opinion on the restructuring of social dialogue and the repercussions of monetary union on the European labour market, according to which 'if a currency cannot be devalued, the main burden of structural adjustment will fall on wages and prices` (), the Committee maintains that all parties concerned, including both sides of industry have an increasing responsibility to promote a stable environment for economic growth, competitiveness, employment and a high standard of social protection.

2.4. Independently of that, greater attention must be given to 'dialogue with the public`, not least in the area of social policy [see Declaration No 23 on cooperation with charitable associations and the Committee Opinion of 10 December 1997 on Cooperation with charitable associations as economic and social partners in the field of social welfare ()]. The importance of hearing the voice of civil society is now widely recognized. More must be done to draw attention to the value added that is generated by involving the general public in European-level debate.

2.5. The Committee also concurs with the Commission on the important role which social policy will play in the transition of the central and eastern European countries to a market economy. Here the Committee would highlight the reference to the role of the Phare programme in developing and adjusting the social infrastructure. In view of the major difficulties involved, already largely borne out by experience with the integration of East Germany into the Federal Republic, the Committee calls on the Commission to conduct a more in-depth examination and give more precise details of the initiatives it intends to take in this respect. The Commission should give the applicant countries assistance in developing their social security systems and social legislation in particular.

2.6. As the Commission communication points out, the EU economy must step up its competitiveness in the face of increasingly fierce international competition. A more flexible workforce - in terms of both versatility of skills and working practices - is vital, if market demands are to be met effectively and thus sustainable economic recovery and growth in employment achieved. The Committee is aware of the risk, in social terms, that each player will try to undercut the other, and it therefore supports the Commission's concern for 'striking the right balance between flexibility and security`. Furthermore, the Committee backs the Commission's view that social dialogue has a key role to play in finding that balance, with particular regard to employment strategy.

2.7. Likewise, the Committee agrees with the Commission that only a Europe offering job opportunities can sustain the core values of the European social model, and insists that the implementation of the conclusions of the extraordinary European Council in Luxembourg must include a new drive for dynamic growth and higher employment.

2.8. Along the same lines, the Committee strongly welcomes the philosophy underpinning the Commission programme, which is seen as an organic structure, with employment as a central objective of social policy as a whole. The programme refers to a battery of weapons that employment strategy must deploy in this era of globalization and rapid technological change. They include setting up new training programmes; stepping up the integration of people excluded from the labour market and the exchange of best practice in the area of work organization, with reference to the social opportunities presented by the rapid advance of the information society; promoting entrepreneurship, equal opportunities and the free movement of workers; and, on the financial front, transforming the European Social Fund into an instrument to support national labour market policies.

2.9. Each of these instruments is designed to increase the employability of workers, by helping to prepare individuals and groups for a world in flux. In this respect, increased flexibility and professional and geographical mobility of workers, combined with a social protection system primarily designed to develop professional skills, can be an effective antidote to the current worrying spread of marginalization. It can also help to boost insufficient economic growth levels, by effectively integrating the broad guidelines of economic policy defined last May at EU level with the policy guidelines on employment mentioned above.

2.10. With that in mind, the Committee calls for a realistic timeframe to be drawn up for the policy initiatives contained in the programme and for pending proposals. The programme should also be reviewed regularly, with the assistance of the EU institutions and the social partners. The Committee invites the Commission to draw up practical proposals for policy implementation.

3. Specific comments

3.1. The Committee strongly emphasizes the importance of promoting entrepreneurship, a central pillar in the employment strategy drawn up at the extraordinary European Council in Luxembourg. Aware of the significance of the development of self employment in the present climate, the Committee reiterates its unreserved support for the priority initiatives set out in the recent Commission communication on the matter (), especially regarding the promotion of an enterprise culture and the improvement of conditions for business.

3.2. With regard to employment strategy initiatives, the Committee is also strongly in favour of the Commission's proposal to 'develop a preventive approach to social exclusion` and wherever possible to make use of the incentive measures provided for in the Amsterdam Treaty in favour of people excluded from the labour market, without prejudice to national responsibilities in the area. Social exclusion has long been a cause for Committee concern ().

3.3. The Committee is of the view that the importance which the programme places on social dialogue is wholly justified, particularly with regard to employment. The Committee agrees that management and labour, through social dialogue and free negotiation, should define balanced minimum standards by means of agreements that could gradually be translated into legislation approved by the Council on proposal from the Commission, as was the case for parental leave and part-time work, where the Commission rightly took the legislative initiative. The part played here by the Commission as a catalyst must not, however, encroach on the role of the two sides of industry, which should in fact be involved from the outset in preparing the social action programme and consulted on the specific proposals it contains, before these are finalized.

3.4. The Committee also accepts that the promotion of new forms of work organization is an essential component in an integrated European employment strategy. As knowledge-based output gains ground in the industry and services sectors, company innovation and flexibility must go hand in hand with the promotion of workers' skills and motivation, with a view to furthering the shared goals of efficiency, competitiveness and personal development, in terms of enhancing skills and giving employees more room to fulfil their potential. In-house innovation and the ability of companies to adapt to structural change and new forms of work organization require that workers be able to upskill to meet new employment demands.

3.5. With regard to the Commission's plans for initiatives following on from the debate triggered by the work organization green paper and further pointers given by the extraordinary European Council meeting in Luxembourg, the Committee confirms its support for the gradual pilot testing of new forms of participation-based work organization at company and - where necessary - sectoral levels. It suggests that this would be facilitated by the pooling of positive experiences alongside the transfer of know-how, and stresses that the new forms of work organization must take account of widely differing circumstances and that there can be no universally applicable models (). However, the Committee also feels that the process would be enhanced by greater involvement of less skilled workers in particular in the promotion of public and private sector training schemes. It may prove useful for the Commission to adopt a policy initiative to that end.

3.6. Given that the gradual pilot testing of new forms of work organization will inevitably have an impact on employment contracts, the Committee hopes that further agreements will be secured in the future on flexible work and other new forms of work, while emphasizing that under no circumstances must the approach taken jeopardize the free bargaining positions of management or industry. The debate recently launched by the Commission in its communication on undeclared work () should make a significant contribution to pointing up potential areas for action.

3.7. As for the Commission's stated intention to consult the social partners during 1998 on the need for Community action to protect teleworkers, it is the Committee's opinion that as the situation stands, this type of initiative requires prior clarification. An opportunity must be found for a general debate between the interested parties to specify and analyse a common definition, framework and understanding of the concept of teleworking (). Meanwhile, minimum criteria should be set for companies across the EU to protect personal employee data or information from which the identity of individuals could be deduced.

3.8. In more general terms, the Committee welcomes the attention paid by the programme to the opportunities offered by the information society in terms of improving living and working conditions and generating new jobs, particularly regarding equal opportunities and the integration of people with disabilities. Here the Committee would refer to its recent opinion on the subject ().

3.9. The Committee takes note of the Commission's commitment to encourage employers to inform and consult workers where appropriate on decisions concerning them, and to work towards the establishment of minimum standards at national level. This echoes the view, expressed in an earlier opinion (), that companies must improve their internal communication structures and provide more opportunities for employee participation if they are to achieve their goals. Furthermore, at national level, the recognized rights of workers' representatives to information, consultation and - where provided for - participation must be properly upheld.

3.10. With regard to the Commission's proposal to present a report in 1999 on the implementation of the Directive on European Works Councils, whose establishment is a precondition for the European company, the Committee refers to its opinion on the European company statute (). The opinion emphasizes the impossibility of transferring the participation model used in one or a few Member States to all the others, and stresses the need to ensure that national rules on co-determination by workers' representatives cannot be circumvented, in the event of a merger, with the aid of a Community legal instrument. It also proposes ways of ensuring that decisions contrary to the positions taken by the interested parties cannot be forced through, and recognizes the need to find appropriate solutions through negotiation ().

3.11. The Committee calls for the implementation of the new framework legislation on industrial safety; this is of fundamental importance in combating social and work-related health risks effectively and in curbing the economic costs of work-related illnesses. Sustained support for implementation - including via Commission programmes - is essential. The Committee attaches considerable importance to that part of the Action Programme concerning the modernizing and improving of social protection. It endorses the Commission's statement that Europe's social protection systems now need to adapt so as to meet existing demands and respond to new needs, changing circumstances and the increasing pressure to contain costs more effectively. At the same time, the high standard of social protection in Europe should be maintained. It particularly welcomes the Commission's intention to focus on more employment-friendly tax and benefit systems and to provide a further analysis of demographic trends. It calls for the Commission to develop, within a reasonable time-scale, proposals for a European framework for supplementary pensions as called for in its opinion on the 1997 Green Paper and to take further action to safeguard supplementary pension rights of employed and self-employed persons moving within the European Union along the lines suggested in its opinion on the proposed Directive on that subject.

3.12. Work and career opportunities for women and men remain very uneven. This imbalance obviously reflects on social policy as a whole, and calls for a comprehensive rethink of the relationship between family and work, and the elimination of forms of discrimination, with respect to working hours for instance, that make it difficult for women to take part in training activities. The aim is to enhance the employability of women and make better use of their capacities in the workplace. To this end, all policy areas must take account of the variety of specific situations arising from gender difference. In all these respects, the EU has a pivotal role to play. The Committee supports the Commission's efforts to mainstream equal opportunities into all major Community policies, particularly as part of the employment strategy. The Committee also welcomes the announcement of specific schemes to improve conditions for women and the introduction of a gender dimension into all relevant aspects of EU policy making.

3.13. In the light of its previous work, the Committee feels it significant that the Commission programme not only announces a series of initiatives aimed at doing away with various persisting forms of discrimination on the Community labour market, but also devotes a specific paragraph to the external dimension of social policy. Fundamental social rights are largely independent of the economic clout and level of productivity of individual countries. The Committee welcomes the Commission's plan to carry forward the debate on fundamental rights, building on the report of the Comité des Sages. It also welcomes the Commission's announcement that it will maintain support, in particular in the ILO, for the promotion of internationally recognized core labour standards, and seek to encourage cooperation with the ILO, the WTO and the OECD in that respect.

3.14. The ESC supports the equal treatment of minorities within the Union and policy initiatives to combat intolerance, racism and xenophobia.

3.15. The Committee draws attention to the new Amsterdam Treaty public health policy provisions and would refer to the Committee opinion on the development of public health policy in the European Community, in which a more detailed policy review is proposed.

Brussels, 9 September 1998.

The President of the Economic and Social Committee

Tom JENKINS

() COM(97) 102 final.

() OJ L 245, 26.8.1992, p. 49 and Committee Opinion, 28.11.1991, OJ C 40, 17.2.1992.

() Opinion on the Impact of Economic and Monetary Union: Economic and social aspects of convergence and measures to increase awareness of the single currency - 26 September 1996. OJ C 30, 30.1.1997, p. 73, point 7.6.

() OJ C 73, 9.3.1998.

() Recent Opinion on the Commission communication 'Fostering entrepreneurship in Europe: Priorities for the future` (27 May 1998), OJ C 235, 27.7.1998, p. 69.

() See in particular the Opinions of 28.11.1996 on the Commission communication on the future of social protection (OJ C 66, 3.3.1997) and of 1.7.1998 on the costs of poverty and social exclusion in Europe, OJ C 284, 14.9.1998, p. 25.

() See in particular the Opinion on the Green Paper 'partnership for a new organization of work` (11.12.1997) - OJ C 73, 9.3.1998.

() COM(98) 219 final.

() See the above-mentioned Opinion on a new organization of work, 3.7.7.

() Opinion on the communication from the Commission on the social and labour market dimension of the information society (26.2.1998), OJ C 129, 27.4.1998.

() See in particular the Opinions of 28.11.1996 on the Commission communication on the future of social protection (OJ C 66, 3.3.1997) and of 1.7.1998 on the costs of poverty and social exclusion in Europe, OJ C 284, 14.9.1998, p. 25, 3.5.4.

() Opinion on the European Company Statute (11.12.1997) - OJ C 129, 27.4.1998.

() See the final report of the group of experts on 'European Systems of Worker Involvement` (Davignon Report), May 1997.