B4-0202, 0210, 0212, 0215 and 0216/97

Resolution on the closing of the Renault plant in Vilvoorde

The European Parliament,

- having regard to the Charter of the Fundamental Social Rights of Workers of 1989 and the action programme relating to it,

- having regard to the Commission communication: Medium term social action programme - 1995-1997 (COM(95)0134 - C4-0160/95),

- having regard to Articles 2 and 118 of the EC Treaty and the Protocol and Agreement on Social Policy which were annexed to that Treaty with the aim of implementing the Social Charter and promoting social dialogue,

- having regard to Directive 75/129/EEC ((OJ L 48, 22.2.1975, p. 29.)), as amended by Directive 92/56/EEC ((OJ L 245, 26.8.1992, p. 3.)), on the approximation of the laws of the Member States relating to collective redundancies,

- having regard to Directive 94/45/EC on the establishment of a European Works Council or a procedure in Community-scale undertakings and Community-scale groups of undertakings for the purposes of informing and consulting employees ((OJ L 254, 30.9.1994, p. 64.)),

- having regard to the declaration on international investment and multinational undertakings by the governments of the Member States of the OECD and the code of conduct of the OECD and the UN,

- having regard to its resolution of 13 November 1996 on the restructuring and relocation of EU enterprises ((OJ C 362, 2.12.1996, p. 147.)),

- having regard to its resolution of 13 March 1997 on the communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions: ¨European Automobile Industry - 1996' (COM(96)0327 - C4-0493/96) ((Minutes of that sitting, Part II, Item 4(a).)),

A. whereas the different decisions concerning restructuring, transfers and closing of transnational companies not only reduce employment but create a growing atmosphere of insecurity amongst employees and the general public,

B. whereas Renault applied for public funding of Esc 77 million for its plants in Setúbal and Cacia and, as a result of reorganization, made more than 500 workers redundant in 1995,

C. having regard to the current difficulties faced by the European car industry which is suffering, today, from overcapacity estimated at 30% and is recording annual productivity gains of 7% while the demand for vehicles is only growing by 1% a year,

D. whereas a large number of similar decisions are taken by the administration boards of companies, without consultation, which go against the spirit of the Social Charter, the social protocol, Directive 75/129/EEC as amended by Directive 92/56/EEC on the approximation of the laws of the Member States relating to collective redundancies, Directive 94/45/EC on the creation of European Works Councils, and the codes of conduct of the OECD and the UN,

E. worried in particular by the closing down of companies, such as the plant at Vilvoorde, where 3,100 workers are threatened with collective redundancy, as well as the many redundancies foreseen in the sub-contracting sector,

F. whereas the district of Vilvoorde has already been the victim of numerous company closures in the past,

1. Welcomes the statement by Commissioner Flynn in the plenary debate on Renault and the proposals made to strengthen the Directives in question;

2. Expresses its solidarity with all the employees of Renault as well as those from sub-contracting firms who, following the decision by Renault's management, are threatened with redundancy; considers it inadmissible that a transnational company should decide to close a company, resulting in collective redundancy, without prior consultation;

3. Recalls that in other cases where collective redundancies appeared to offer the only solution to a company crisis, negotiations with the employees helped to develop alternative plans which allowed for jobs to be safeguarded; underlines the need for negotiations with employees in order to find alternatives such as reductions in working time, as called for in its resolution of 18 September 1996 on a reduction and adaptation of working time ((OJ C 320, 28.10.1996, p. 97.)), which still has to be responded to by the Commission, and the development of training and education facilities for the employees affected;

4. Welcomes the fact that Renault workers in the other European countries have expressed solidarity with their Belgian counterparts; supports the efforts of the employees to try to make the Renault management reverse its decision through common actions in the different Renault establishments and in the automobile sector;

5. Strongly condemns the actions of the Renault management which demonstrate arrogance and disdain for the most fundamental rules of social consultation, an essential element of the European social model;

6. Considers that the decision taken by the central management of Renault to close the plant in Vilvoorde is not only wholly contrary to the Directives on collective redundancies and on the European Works Council, but is also a violation of the 1976 OECD code of conduct;

7. Asks the Commission to use all available legal means to penalize those infringements; urges the Commission and the Netherlands Presidency to make every effort to reverse the decision by Renault;

8. Urges that the 'race to the bottom' of social systems in competition for investment be terminated by creating a level playing field in social protection and by removing any 'opt-out' provisions on these issues during the forthcoming revision of the Treaty; calls on the Member States to relinquish tax concessions and subsidy programmes whose cost is borne by others;

9. Considers that aid from public funds should be linked to long-term agreements by the management of a company in matters of employment and local development; asks the Commission, as well as the Member States, to withdraw the subsidies from aid programmes and to claim reimbursement of these subsidies from companies which do not respect their obligations;

10. Asks the Commission to draw up a code of conduct in order to avoid subsidised company transfers where jobs are shifted from one EU country to another;

11. Is of the opinion that large companies which seek to limit employment for specific economic reasons should do so within the framework of a medium- or long-term corporate industrial strategy that justifies the decisions and provides for appropriate social measures;

12. Requests the Commission to draw up urgently an evaluation of the application of the Directive on collective redundancies and company closures and to make proposals for effective sanctions, including annulment of the decision, if the provisions of this Directive are not respected;

13. Recalls its proposals for the establishment of a social Europe through, for example, the inclusion of a chapter on employment and the incorporation of the Social Protocol in the Treaty;

14. Instructs its President to forward this resolution to the Commission, the Council, the governments and parliaments of the Member States and the social partners, in particular those at Renault.