COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 20.05.1998 
COM(1998) 322 final 
COMMUNICATION FROM THE COMMISSION 
adapting and promoting the social dialogue at Commumty level 
Draft 
COUNCIL DECISION 
amending Decision 70/532/EEC setting up the Standing Committee on Employment 
in the European Communities 
(presented by the Commission) 

TABLE OF CONTENTS 
1. INTRODUCTION 3 
1.1. A new context 5 
1.2 Who are the social partners? 5 
2. PROMOTING THE EXCHANGE OF INFORMATION 6 
3. ADAPTING THE CONSULTATION PROCEDURES 7 
3.1 Consultation at cross-industry level 8 
3.2 Consultation at sectoral level 9 
3.3 Consultation under Article 3 of the Agreement on Social Policy 11 
4. EMPLOYMENT PARTNERSHIP 12 
5. EMPHASIZING JOINT-ACTION AND NEGOTIATION 14 
5.1 Joint action and negotiation at cross-industry level 16 
5.2 Joint action and negotiation at sectoral level 17 
5.3 Negotiation under Article 3(4) of the Agreement on Social Policy ...17 
5.4 Implementation of agreements concluded at Community level 18 
5.4.1 Implementation by the social partners 18 
5.4.2 Implementation through Community legislation 19 
6. NEW PROSPECTS OPEN UP 20 
6.1 Social dialogue and enlargement 20 
6.2 Developing a European industrial relations and partnership 
culture 21 
6.2.1 Transnational decentralized dialogue 21 
6.2.2 Support to management and labour 21 
6.2.3 Supporting the European Industrial Relations Centre 22 
6.3 The means for promoting the social dialogue 22 
6.4. A Reflection Process: Study Group 23 
1. INTRODUCTION 
This Communication sets out the means which the Commission intends to use to adapt 
and promote the social dialogue. The purpose is to identify the steps that need to be taken 
to strengthen the social dialogue at European level, make it more adaptable and to link the 
work of the social partners more closely to the development and implementation of 
EU policies. 
European social dialogue has already made significant headway, and the Social Protocol, 
which has been integrated into the main body of the Treaty of Amsterdam, gives 
considerable powers and responsibilities to the social partners. Two important European 
agreements, on Parental leave and Part-time work, which subsequently have been adopted 
as Directives by the Council under the Social Protocol procedure, have already 
been concluded. 
Furthermore, the social partners at all levels have displayed an increasing interest in 
the development of the dialogue at European level. This can be seen, for example, 
in the joint-contributions at both cross-industry and sectoral levels on the 
1998 Employment Guidelines and the framework agreement on Employment concluded 
in the agricultural sector. 
The role of the social dialogue in tackling key issues was highlighted at the extraordinary 
European Council meeting on employment held on 20-21 November 1997. The need for 
the social partners to make a contribution at all levels and stages of the new employment 
strategy was strongly emphasized by the European Council. 
Closer European integration and the inclusion of new aspects in the Community 
framework, notably employment, has extended the scope of the social partners' activities, 
particularly as regards modernizing the organization of work, anticipating structural 
change and providing backup for restructuring, adapting terms and conditions of 
employment to allow for the development of new forms of work, reconciling family life 
and working life, integrating young people into the world of work and access to 
vocational training. 
The recently adopted Social Action Programme 1998-2000 ' seeks to take account of these 
new challenges and opportunities, in particular those provided by the Treaty of 
Amsterdam. This provides a platform for strengthening social policy and gives a key role 
to the social partners. In order to allow the social partners to play this role fully, the 
Social Action Programme states that the Commission will bring forward the 
present Communication. 
The Commission adopted in September 1996 a consultation Communication2 in order to 
gather as wide a range of views as possible on the means to be employed to promote and 
developing the European social dialogue. 
COM(1998) 259 of 29 April 1998. 
COM(96) 448 final of 18 September 1996 concerning the development of the social dialogue at 
Community level. 
During 1997 more than 80 detailed replies were received from employers' and workers' 
European and national organizations, European institutions3 and from national authorities. 
A European Forum was held in the Hague in April 1997 and an initial synthesis of the 
contributions was subsequently drawn up. 
This Communication draws the principal lessons from this consultation, and from recent 
developments. It introduces a number of key actions in the four main fields through which 
the Commission intends to adapt and promote the future social dialogue: 
Information: The Commission will set in place more efficient channels for the exchange 
of information with all the social partners and it will encourage the European social 
partners to follow up the outcome of the European social dialogue with their affiliates at 
national level. 
Consultation: The Commission will replace the existing structures at sectoral level by 
new more flexible social dialogue bodies. At cross-industry level the advisory committees 
will be rationalized and the Commission will ensure that all social partners are effectively 
consulted on ongoing policy developments. 
Employment Partnership: The Commission will propose to reform the Standing 
Committee on Employment in order to strengthen the exchange between the Commission, 
the Council and the social partners, on the basis of the Council Resolution on the 
1998 Employment Guidelines. 
Negotiation: The Commission will continue to encourage the further development of 
contractual relations both at cross-industry and sectoral levels. 
An important and challenging task is also to encourage the applicant countries to develop 
their own independent social dialogue structures and activities and to assist the social 
partners to develop links with their counterparts in these countries. 
With a view to promoting and to improving the working of the social dialogue the 
Commission has set itself three objectives: A more open social dialogue, a more effective 
dialogue between the European institutions and the social partners, and the development 
of a real collective bargaining at European level. 
See the European Parliament Resolution on the Commission Communication "Concerning the 
development of the social dialogue at Community level COM(96) 448 final" of 18 July 1997 and the 
Opinion of the Economic and Social Committee on the same issue adopted on 29-30 January 1997. 
1.1. A new context 
In formulating its proposals, the Commission has taken account of the current climate 
as follows: 
The recent progress in the employment field provides for a process of coordination 
of employment policies at European level, opening up new areas to the 
Community social dialogue. The Council Resolution on the 1998 Employment 
Guidelines4 makes specific appeals to the social partners at European and 
national level in relation to adapting forms of work and boosting vocational 
training. The National Action Plans have offered the social partners the 
opportunity to contribute to employment policy5. 
The EMU process and economic convergence have progressively made visible the 
importance of the role of social partners, not only in influencing the local 
competitiveness and employment conditions, but also as a major player in the 
achievement of growth and an employment-friendly overall policy mix in the Euro 
zone and in the Community. 
The Treaty, which since 1986 has conferred on the Commission the task of 
promoting the social dialogue, has been reinforced considerably. Under the 
Agreement on Social Policy, the social partners have the right to be consulted in 
advance. What is more, it opens up a genuine bargaining area where European 
social provisions can be established on the basis of negotiations between the social 
partners. The Amsterdam Treaty extends these arrangements to the field of social 
legislation which thus will be applicable to all Member States. 
European integration is gaining ground and because of the integration of our economies 
the social partners are increasingly having to take this development into account. Recent 
developments connected with the restructuring of companies directly concern the 
European social partners and they will be involved in the discussions on the reports of the 
new high-level group on the economic and social implications of industrial change6. 
1.2 Who are the social partners? 
The social partners are different in nature from other organizations, like pressure or 
interest groups, because of their ability to take part in collective bargaining. In a European 
context the organizations continue to evolve. National affiliates continue to join and new 
groups are being set up. 
Adopted by the Council on 15 December 1997, (OJ C 30 , 28.1.1998, pp. 1-5). 
Communication from the Commission "From Guidelines to Action: The National Action Plans for 
Employment" COM( 1998) 316, adopted on 13 May 1998. 
Set up following the extraordinary European Council meeting on employment 
20-21 November 1997 (see para. 28 of the Presidency's Conclusions). 
Given this situation, the Commission launched, following the 1996 Communication, a 
major study on representativeness of the cross-industry and sectoral organizations; a first 
report will be ready early next year, followed by updates in coming years. The study is 
being carried out along similar lines to the first survey on representativeness drawn up in 
1992. The study will serve as an important tool for the Commission in order to monitor 
the participation of organizations in the social dialogue. 
The Commission's approach to participation in the different forms of social dialogue is 
based on the following: 
widespread availability of information and consultation on general topics. All 
organizations so requesting are kept informed of the Commission's main 
initiatives and documents in the social field; 
targeting of representative organizations for the purposes of the consultation under 
Article 3 of the Agreement on Social Policy according to three criteria, established 
in the Communication7 of December 1993. The consulted organizations should: 
(1) be cross-industry or relate to specific sectors or categories and be organized at 
European level; (2) consist of organizations which are themselves an integral and 
recognized part of Member States' social partner structures and with the capacity 
to negotiate agreements, and which are representative of all Member States, as far 
as possible; (3) have adequate structures to ensure their effective participation in 
the consultation process; 
respect for autonomy as regards participation in negotiations. 
2. PROMOTING THE EXCHANGE OF INFORMATION 
Access to information is crucial for the development of the social dialogue. It helps the 
European social partners to keep their members up to date on matters of direct interest to 
them, makes them aware of ongoing policy developments and thus provides the necessary 
input for dialogue at European level. In return, the European institutions are kept 
informed of the activities and thinking of the social partners and their members. 
The respondents to the consultative 1996 Communication called for reinforcement of the 
information channels and emphasized that the work and results of the European social 
dialogue are not sufficiently familiar to workers and employers in the Member States -
although their interests are directly affected. Attention was also drawn to the increased 
need for effective information channels between the different players, sectors and levels 
of the dialogue. 
The Commission has recently put in place specific information tools that supplement its 
general information policy: 
the Social Dialogue Newsletter which keeps the social partners abreast of 
major events; 
COM(93) 600 final of 14 December 1993 concerning the application of the Protocol on 
Social Policy, para. 24. 
an annual Status Report on the social dialogue; 
an interactive database with an electronic network to which the European social 
partners will be connected on line is under development with Commission support 
(European Social Dialogue On Line, ESDO). 
The Commission has also developed the practice of quarterly information forums that 
bring together the social partners at European level to discuss and exchange information 
between the different actors and types of dialogue on matters of current interest. These 
meetings have proven most useful, in bringing together the different strands of dialogue 
and by providing social partners with an overview of the ongoing developments. 
It is necessary to reinforce the exchange of information between the social partners and to 
establish more effective internal and external information channels to disseminate the 
results of the European social dialogue. 
Kev actions 
The Commission will reinforce its current practice of assembling representatives 
of cross-industry and sectoral organizations at European level at a quarterly 
Liaison Forum for an exchange of information on Community policy and ongoing 
initiatives at all levels of the dialogue. 
The Commission will take steps to improve the diffusion of information to all 
European organizations representing management and labour. 
The Commission will ensure that the results of the dialogue (recommendations, 
joint opinions and agreements) are made known to the other European institutions 
and all other relevant actors. 
3. ADAPTING THE CONSULTATION PROCEDURES 
The consultation procedures, which aim to improve the quality of Community policies 
and proposals, have developed gradually, responding to the increasing needs for dialogue 
with the social partners on the development of Community policy. 
The Commission has consulted the social partners on an informal basis for many years 
and it continues to consult all social partners who are affected by ongoing developments 
at Community level with social policy implications including macroeconomic 
development and policies. 
3.1 Consultation at cross-industry level 
The Commission intends to systematically consult the cross-industry social partners on all 
important developments in the economic and the social policy fields and to ensure 
effective participation of all social partners in the consultations. 
Another form of consultation on Community policies takes place in the 
advisory committees8, tripartite fora whose role is to advise the Commission on the 
formulation of specific policies and assist it in their implementation. 
Despite some criticism of the usefulness of the advisory committees nowadays, a majority 
of the respondents to the 1996 Communication concluded that these bodies still have an 
important role to play. It was emphasized however that the working methods in several of 
the Committees could be improved. 
A good example of such a development was the recent decision of the 
Advisory Committee on Safety, Hygiene and Health Protection at Work to revise its 
internal working methods by reducing the number of plenary meetings and electing a 
programme committee. 
A coherent system for consultation on broad social policy developments should be 
created. The work of the advisory committees should be aligned with general social 
dialogue developments, in order to achieve minimum overlap in their fields of 
competence and to ensure that the positions of the social partners in the committees are 
coordinated with the views expressed in other fora. 
There are currently six Advisory Committees with the following subject areas: Social Security for 
Migrant Workers, Freedom of Movement for Workers, European Social Fund. Vocational Training, 
Safety, Hygiene and Health Protection at Work and Equal Opportunities for Women and Men. 
Key actions 
The Commission will develop and broaden its practice of consultations on those 
developments in the social policy field not covered by the formal consultations 
under Article 3 ASP, for example on green papers. It will involve all the 
representative social partners9 in these consultations. It will use the mechanism of 
the Liaison Forum, allowing a choice of the most appropriate consultation method 
(meetings, electronic mail, etc.). 
The Commission will propose10, following the commitments made in the recently 
adopted Commission Communication on an action plan for free movement of 
workers11, that the Advisory Committee on Social Security for Migrant Workers 
merge with the Advisory Committee on Freedom of Movement for Workers. This 
meets the wishes of most of the respondents and an earlier Recommendation12 of 
the social partners emphasizing the close interdependence of the Committees and 
the need to tighten the links between their work. 
Once the Amsterdam Treaty enters into force, there will be one legal base for 
proposals on health and safety at work and the legislative proposals in this field 
will fall under the process of consultation of the social partners. However, the 
Advisory Committee on Safety, Hygiene and Health Protection at Work will 
remain a key body for consultation on health and safety issues and 
the Commission will consult this body in parallel with the two-stage 
consultation process. 
The Commission will, on a case by case basis, adapt where necessary the 
structures of the advisory committees. 
3.2 Consultation at sectoral level 
The Commission receives input from the sectoral social partners on Community policy 
through consultations on a number of social policy initiatives and, in the sectors where 
there is a common policy, on the formulation and implementation of sectoral policies. The 
sector-specific consultations are aimed at improving and harmonizing working conditions 
and also, in some cases, improving the economic and competitive position of the 
sector concerned. 
9 Invited on the basis of the annexed list of organizations formally consulted under Article 3 ASP. 
10 This proposal will be made in the context of the ongoing amendments to Regulations (EEC) 
Nos 1408/71 and 1612/68. 
See the Commission Communication uAn Action Plan for Free Movement of Workers" 
COM(97) 586 final. 
See, for example, the Recommendation by the European Trade Union Confederation (ETUC), the 
Union of Industrial and Employers Confederations in Europe (UNICE), and the European Centre for 
Enterprises with Public Participation (CEEP) on the operation of the cross-industry advisory 
committees (June 1993). 
Calls have been made for a more effective consultation process on specific sectoral issues. 
Feedback on the subject of the consultation has to be timely to make sure that the views of 
the social partners are reflected in the preparation of Community policies and proposals. 
The respondents urged the Commission to improve the coordination of work within its 
departments as far as the consultation procedures are concerned; however, they generally 
prefer that overall responsibility for the sectoral dialogue remain with DG V. 
Most respondents agreed with the Commission conclusion that the current structures often 
hinder positive developments. The Joint Committees and informal working groups have 
become over-institutionalized or have retained operational methods which have outlived 
their usefulness. 
In a number of industries the social dialogue is an innovation and is at the start-up stage: 
exchanging information, learning about dialogue in a multicultural context, determining 
the problems peculiar to the industry. Other sectors have not taken part in a social 
dialogue as such at European level. However, other forms of consultation or co-operation 
including the social partners have been put in place (for example, in the mixed 
committees in the framework of the ECSC Treaty). 
A more harmonized approach needs to be taken to the structures supporting the sectoral 
dialogue with a view to ensuring a more equitable treatment of the different sectors of 
activity and to enable all sectors to contribute in the most effective and substantial way to 
the development of the relevant Community policies. The Commission should be 
prepared to respond to the requests of any sector willing to make a significant 
joint contribution. 
The sectoral social partners should be in a position to react effectively to the real 
challenges affecting the sector at Community level. They have a particular potential to 
provide the information needed to identify best practice and initiate benchmarking 
exercises at European level. They have a key role to play in the anticipation and handling 
of industrial change in the Community and will be involved in the discussions on the 
reports of the new high-level group on the economic and social implications of 
industrial chance. 
lsx 
The sectoral social dialogue has been constantly enhancing its input at European level. In 
order for this development to continue and to improve the input in quantitative and 
qualitative terms, giving an increased added value at European level, it is necessary to 
replace the existing structures and encourage a more efficient dialogue. 
10 
Key action 
The Commission will establish a new framework within which the sectoral dialogue 
can continue its development. This framework will be applicable on the same terms 
to all sectors wishing to take part in social dialogue and will be easily extendable to 
new sectors. To this end the Commission has decided to adopt a decision on the 
establishment of new sectoral dialogue committees (see Annex ID, replacing all 
current sectoral dialogue structures. 
The new committees will constitute the key forum for sectoral dialogue 
(consultation, joint action and negotiations) and will be set up in all sectors which 
submit a joint request and are sufficiently well-organized with a meaningful 
European presence in line with the established criteria of representativeness. 
The operating procedures will be streamlined: one high-level plenary meeting 
each year, a restricted social partner delegation, reimbursement for maximum 
15 participants from each side. 
The Commission, through the DG most concerned with the issues on the agenda or 
DG V, will provide secretarial services; the meetings will normally be chaired by a 
delegate of the employers or employees, but a representative of the Commission 
will take the chair if both parties jointly ask it to do so. 
The Commission will ensure timely and substantial consultation on sector-specific 
issues with important social implications. Each sector will be firmly supported 
through a partnership between DG V and the other relevant DGs, including 
improved technical backup for the preparation of and follow-up to meetings. 
3.3 Consultation under Article 3 of the Agreement on Social Policy 
On the whole, the respondents considered that the two-stage consultation process initiated 
under the Agreement on Social Policy was working satisfactorily in accordance with the 
procedures laid down in the 1993 Commission Communication. It is clear that after the 
entry into force of the Amsterdam Treaty, the process of consultation will be more 
important than today since it will cover the legislative proposals on Community social 
policy and which is to be adopted in all Member States. All actors will have to take their 
role in ensuring that this remains a substantial and effective process. 
The vast majority of respondents were in favour of maintaining the current criteria for 
determining which organizations should be consulted. The ongoing representativeness 
study will provide an important tool for the actual designation of the organizations to be 
consulted under these criteria. 
11 
Some organizations not currently consulted would like to be involved in the process. 
Furthermore, some organizations believed that the current six-week time limit for each 
consultation stage should be extended, while other respondents emphasized the need to 
keep to a strict time limit so as not to put the effectiveness of the Community legislative 
procedure at risk. The latter should also be borne in mind with a view to the extended 
application of the consultation procedures under the Amsterdam Treaty. 
Key actions 
The formal consultation on proposed legislation in the social policy field will 
continue to be based upon the procedures laid down in the 1993 Communication. 
This means that the general six-week time limit for consultations will be 
maintained. The Commission will, however, be prepared to adapt the deadline in 
particular cases depending on the nature and complexity of the subject. 
An updated list of the organizations responding to the three criteria for 
determining who should be consulted can be found in Annex I. The Commission 
will revise the list periodically, taking into account the results of the ongoing 
representativeness study. 
4. EMPLOYMENT PARTNERSHIP 
Tripartite discussion on employment takes place at meetings between representatives of 
the social partners, the Council and the Commission. The purpose, in addition to the 
specific priorities of each of the parties, is to determine shared objectives. The key body at 
European level has been the Standing Committee on Employment13, set up in 1970. 
There has been quite a lot of criticism of the operation of this Committee as it now stands. 
Most of the Committee members agree that its operations are out-cf-date: as are the 
membership, the working methods and the use to which its results are put. 
Moreover, the context for tripartite dialogue at Community level has been transformed in 
recent years: 
1. The tripartite approach has become more relevant in a number of the 
Member States involved in the conclusion of employment pacts. 
2. In the recent debates on flanking measures for industrial restructuring, partnership 
has been considered one of the most important approaches that should 
be promoted. 
13 Council Decision of 14 December 1970 (OJ L 273, 17.12.1970). 
12 
3. The incorporation of a new employment title in the Amsterdam Treaty and the 
application of these arrangements has changed the direction of the tripartite 
dialogue. The implementation of the Employment guidelines and the monitoring 
of their application raise fresh challenges and the social partners will be called 
upon to take up positions in that context. Social partners will need to shoulder 
their own responsibility for supporting employment guidelines. This would 
involve a comprehensive approach integrating all the necessary elements of 
adaptability-modernization of the legislative framework, updating collective 
agreements and bargaining, new forms of work organization and the management 
of working time. 
Furthermore, recent initiatives to encourage new forms of tripartite dialogue, have led to 
an increase of fora, in parallel to the meetings at Ministerial level within the framework of 
the Standing Committee on Employment, where the Council and the social partners meet 
to discuss employment issues, such as the meetings between the Employment and Labour 
Market Committee Steering Group and the social partners, and the meetings between the 
Troika of Ministers and/or Heads of State and the social partners. 
All these developments and the undisputed lack of efficiency of the Standing Committee 
in its present form require a new rationalized process allowing the social partners to 
contribute in the most effective way to the development and implementation to the 
Employment Guidelines and Broad Economic Orientations. 
Key actions 
The Commission proposes to reform the Standing Committee on Employment14 
as follows: 
The tasks laid down in the Decision of 1970 setting up the Committee are still relevant 
today: "to ensure ... that there shall be continuous dialogue, joint action and 
consultation between the Council, ... the Commission and the two sides of industry in 
order to facilitate co-ordination by the Member States of their employment policies in 
harmony with the objectives of the Community". 
Because it is called upon to discuss questions relating to trends in employment and 
drafts submitted for discussion within the Council, the Committee is the forum for the 
expression of general interests and solidarity across industry. Its membership should 
reflect this approach as set out above. 
14 In conjunction with this Communication, the Commission will present a proposal for a 
Council Decision amending the 1970 Decision as set out in Annex.III. 
13 
The reformed Standing Committee on Employment will be composed of the Council, 
represented either by the troika of Heads of State or Government, or of the full Council 
of Ministers, together with the Commission and the two social partner delegations 
(eight members from the trade union side and eight members from the employers' side, 
in the composition set out below). Following the conclusions of European Council 
meeting on employment held on 20-21 November 1997 (p. 19), the Committee should 
meet before the meetings between the Heads of State and Governments at the end of 
each Presidency. 
Secondly, the technical meetings between the Employment and Labour Market 
Committee's Steering Group and the social partners, provided for through the statute of 
the ELC, should also be directly linked to the yearly process foreseen in the context of 
the Employment Guidelines. It is therefore proposed that these meetings should take 
place before the ELC issues its opinion on the Commission's Communication on the 
national action plans in the first half of each year and, in the second half of each year, 
before the ELC issues its opinion on the Commission's yearly update of the 
Employment Guidelines. 
The social partner delegations to the meetings of the Standing Committee on 
Employment and the meetings between social partners and the ELC s Steering Group 
shall include representatives from the employers' and trade unions' side, so that the 
composition of each delegation covers the whole economy, includes European 
organizations, representing either general interests or more specific interests of 
supervisory and professional staff and small and medium-sized businesses. The 
participants to the social partner delegations are UNICE, CEEP, UEAPME, 
EUROCOMMERCE and COPA on the employers' side and ETUC and CEC on the 
employees' side. The delegations should be organized through liaison structures. 
5. EMPHASIZING JOINT-ACTION AND NEGOTIATION 
An active dialogue between management and labour leading to shared goals and practical 
commitments is the raison d'être of the social dialogue. This presupposes that the social 
partners at European level have real support from their members, giving them a mandate 
to negotiate agreements at European level, as well as a commitment to follow them up, 
and providing them with adequate resources and structures to be able to respond. 
Once the Amsterdam Treaty enters into force, legislative proposals in the social policy 
field will be addressed to all Member States and be the subject of the two-stage 
consultation process with the possibility for the Commission to suspend the legislative 
process if the social partners announce their intention to open negotiations. This implies 
increased opportunities and responsibilities for the social partners at European level in the 
shaping of social policy. 
14 
Furthermore, in the context of the new employment strategy, the European Social Partners 
at both cross-industry and sectoral levels have been given the opportunity to take a leading 
role in the necessary modernization of the labour market. At its extraordinary meeting on 
employment in November 1997, the European Council made a strong appeal to the 
social partners to take new initiatives at all levels, in particular regarding adaptability 
and employability: 
promoting the modernization of work organization and working patterns through 
negotiation at the appropriate levels, particularly in economic sectors undergoing 
structural change, agreements on work organization including working time and 
flexible working arrangements with the aim of making enterprises productive and 
competitive, and achieving the required balance between flexibility and security; 
developing the social dimension of the process of industrial restructuring, 
especially in the context of worker information and consultation; 
opening workplaces across Europe for training, work practice, traineeships and 
other forms of employability measures; and, 
promoting equal opportunities between women and men, both in a wide context 
and on specific initiatives aimed at reconciling work and family life, for example, 
the further development of policies on career breaks, parental leave and 
part-time work. 
It is essential at this juncture that the social partners take up the new challenges and 
monitor the employment process in order to review all possible initiatives to modernize 
the legal, contractual and institutional framework at all levels of the dialogue. 
Another important matter relating to the negotiation process at all levels of the dialogue, 
which was raised by many respondents to the consultative Communication, was the 
question of participation and representativeness in contractual relations at both cross-
industry and sectoral level. 
The Commission cannot intervene in the negotiations. It is up to the social partners to 
decide who sits at any negotiating table and it is up to them to come to the necessary 
compromises. The respect of the right of any social partner to choose its negotiating 
counterpart is a key element of the autonomy of the social partners. 
At the same time it is crucial that the social partners at both cross-industry and sectoral 
level find the best ways to maintain the dynamic character of their dialogue, allowing it to 
continue to develop towards greater co-operation and openness in order for it to be able to 
play an even more constructive role by ensuring optimum representation. Such a process 
is necessary in order to make the results of the social dialogue widely acceptable. In this 
context the Commission would stress that the current situation is jeopardizing future 
developments and that a political solution is needed to prepare the ground for the future. 
15 
5.1 Joint action and negotiation at cross-industry level 
The cross-industry dialogue has secured a strategic place in the development of social 
policy: the social partners have created an important locus for dialogue and interaction. 
The most active dialogue at cross-industry level has in recent years taken place within the 
Social Dialogue Committee where the three cross-industry organizations of general 
vocation, UNICE, CEEP and the ETUC, conduct their autonomous dialogue. This has 
also developed into the forum through which they communicate the results of their 
dialogue to the Commission. 
The organizations taking part in the Social Dialogue Committee recently stated that they 
intend to focus their autonomous dialogue in this forum on their joint-contribution to the 
employment process. Working groups have been established to consider certain issues in 
depth. Several joint-opinions, joint-declarations and working documents have been 
prepared within the Education and Training, Labour Market and Macroeconomic Working 
Groups. It is vital that the social partners at European level develop and consolidate their 
autonomous dialogue to contribute to the key issues with a view to creating European 
Frameworks for social partner action at national level. These can cover, most importantly, 
the promotion of employability and adaptability, including lifelong learning issues and 
information and consultation of workers. 
In the framework of the strengthened economic policy coordination called for by the 
European Council at Amsterdam, it should in particular be examined in the 
macroeconomic group of the Social Dialogue Committee whether it is possible to find 
operational modalities for building bridges between the major players determining the 
macroeconomic mix in the EMU. 
It is also very important to acknowledge the fact that a new configuration of the 
cross-industry social dialogue has been gradually developed since UNICE, CEEP and the 
ETUC came forward to establish the Val Duchesse dialogue in 1985. Although it was 
stressed in the responses that the mutual recognition of the parties and the respect for the 
informal and voluntary nature of this dialogue has been a key to its success, several 
organizations claimed a place alongside UNICE, CEEP and the ETUC at the negotiating 
table. A large number of respondents emphasized that to make the cross-industry dialogue 
richer and to have its results more widely spread and acceptable to all interested parties, 
an opening up of the dialogue to other organizations is important. 
In order to permit it to build upon its achievements, the Commission will continue to 
support the cross-industry social dialogue. The Commission is aware of the importance of 
SMEs for employment and their role in job creation; their specific concerns and the 
opportunities they provide must be taken into account. The Commission makes a strong 
appeal to the social partners to take the necessary steps to ensure that their dialogue 
remains strong and continues to attract widespread support. 
16 
5.2 Joint action and negotiation at sectoral level tov 
The sectoral level is a very important area for development both on general issues such as 
employment, industrial change and a new organization of work and on upcoming specific 
demands on the labour market. The development of negotiations at sectoral level is 
therefore a key issue. 
There was general agreement among the respondents that the sectoral dialogue provides 
for an effective level of intervention on the questions of employment, work organization 
and the improvement of working conditions as it is closest to grass roots and best able to 
anticipate change. However, its potential as a site for joint action and negotiation of 
agreements is by no means used to the full. 
The Framework Agreement on the Improvement of Paid Employment in Agriculture in 
the Member States of the European Union15 is a good and recent example of what can be 
done when the most is made of that potential. 
There are substantial differences in representation as between industries within the 
Community's sectoral social dialogue; nevertheless, it offers significant potential for 
development of the dialogue at Community level as this is where the economic and social 
challenges lie: in relation to industrial restructuring, the introduction of new technologies, 
changes in occupations and opening-up to competition. Moreover, the social partners' 
responses at industrial level have greater operational impact. 
The Commission encourages the further development of joint action and negotiations, 
both in qualitative and quantitative terms. The new sectoral dialogue committees will be 
conducive to the establishment of flexible forms of work enabling the social partners, if 
they so wish, to initiate joint action or enter into negotiations on voluntary agreements 
promoting the key issues in the sectors. 
5.3 Negotiation under Article 3(4) of the Agreement on Social Policy 
Article 3(4) of the Agreement on Social Policy stipulates that the social partners consulted 
under Articles 3(2) and 3(3) of the Agreement can, during the ongoing consultation, 
inform the Commission of their desire to embark upon a process of negotiation. The 
opening of negotiations is totally in the hands of the social partners and the 
negotiation process is based upon principles of autonomy and mutual recognition of the 
negotiating parties. 
The two agreements concluded so far under this procedure constitute important steps 
forward for European industrial relations and European social policy. They have been 
warmly welcomed in most circles, including the European institutions. However, some 
social partner organizations have criticized the fact that they were not party to 
the negotiations. 
15 Concluded between EFA/ETUC-GEOPA/COPA, 24.7.1997. 
17 
These two agreements were negotiated at cross-industry level. It is important to 
acknowledge that there is nothing in the Agreement on Social Policy that limits possible 
sectoral negotiations thereunder, either as a complement to cross-industry agreements or 
establishing independent agreements limited to the sector concerned. 
The Commission considers that the development of contractual relations, as set out in the 
new Treaty, is a most effective mechanism to implement relevant commitments on 
Social Policy. The Commission therefore hopes the social partners will further develop 
their contractual relations at both interprofessional and sectoral level. Relations based on 
agreements should take their place alongside legislation in the development of social 
policy. The Commission considers that sectoral agreements between social partners can 
form an important basis for achieving social policy objectives, including the process of 
making agreements binding through Community law at the request of the social partners. 
The Commission will continue to give strong support to the initiation of negotiations 
under this procedure, pointing out that both the inter-professional and sectoral social 
partners are encouraged to take on their responsibilities in this respect. 
The Commission cannot intervene in the free choice of negotiating partner. It welcomes 
the positive example of the association as experts of, EUROCOMMERCE, FENI, COPA 
and HOTREC in the latest negotiations as an important step and encourages the social 
partners to go further to make the agreements even more acceptable by ensuring 
optimum representation. 
5.4 Implementation of agreements concluded at Community level 
Agreements can be concluded both on sectoral and cross-industry issues in the context of 
the social dialogue structures or in the framework of a consultation under Article 3 of the 
Agreement on Social Policy. 
These agreements can be implemented either in accordance with the procedures specific 
to management and labour in the Member States or, in matters covered by Article 2 ASP, 
at the joint request of the signatory parties, by a Council decision on a proposal from the 
Commission (Article 4(2) ASP). 
5.4.1 Implementation by the social partners 
The existence of good information and follow-up mechanisms is crucial to the 
effectiveness of the implementation of agreements in accordance with the procedures and 
practices specific to management and labour and the Member States. The Commission is 
committed to supporting the social partners in developing information and monitoring 
procedures to ensure effective implementation at national level. The implementation of 
the Framework Agreement on the Improvement of Paid Employment in Agriculture will 
be an important step in this context. 
18 
5.4.2 Implementation through Community legislation 
Until now there have been two requests from the social partners for implementation of 
agreements through Community legislation: for the European framework agreements on 
parental leave and part-time work. The Directive16 implementing the parental leave 
agreement was adopted by the Council on 3 June 1996 and the Directive17 implementing 
the part-time work agreement was adopted by the Council on 15 December 1997. 
Before any legislative proposal implementing an agreement is presented to the Council 
the Commission carries out an assessment18 involving consideration of the representative 
status of the contracting parties, their mandate and the legality of each clause in the 
collective agreement in relation to Community law, and the provisions regarding small 
and.medium sized enterprises. One European social partner organization has challenged 
the legality of the parental leave Directive adopted under this process19. It is important to 
emphasize that the Commission does not make a legislative proposal to the Council 
making the agreement binding if it considers that the signatory parties are not sufficiently 
representative in relation to the scope of their agreement. 
Key Action 
The negotiating parties to an agreement to be implemented through legislation under 
Article 4(2) ASP must ensure that the subjects for discussion remain within the remit 
of Article 2 ASP. 
The Commission will assess the agreements presented to it on a case by case basis with 
regard to the representativeness (sufficient representativeness taking into account the 
scope of the subject for negotiation) of the signatory parties, the legality of the clauses 
in the agreements in relation to Community law, and in particular, the provisions 
regarding small and medium-sized undertakings. 
In addition, before proposing a decision implementing an agreement negotiated on a 
matter within the material scope of Article 2 ASP, but outside the formal consultation 
procedure, the Commission has the obligation to assess the appropriateness of 
Community action in that field. 
The Commission helps and supports the social partners in any way it can by providing 
any political, technical and legal backup, as established in Article 118b of the Treaty. 
16 
17 
18 
19 Council Directive 96/34/EC of 3 June 1996 on the framework agreement on parental leave 
concluded by LTNICE, CEEP, and the ETUC. 
Council Directive 97/81 /EC of 15 December 1997 on the framework agreement on part-time work 
concluded by UNICE, CEEP, and the ETUC. 
This procedure is laid down in points 38 to 42 of the 1993 Communication (COM(93) 600 final) 
concerning the application of the Protocol on Social Policy. 
UEAPME's challenge before the Court of First Instance, Case T-l35/96. UEAPME has 
subsequently challenged the Part-time work agreement. Case T-55/98. 
19 
The Commission will continue to inform the European Parliament of the initiation of 
consultations and the opening and conclusion of negotiations under Article 3 ASP. 
Furthermore, it will inform the Parliament as soon as the social partners ask the 
Commission to draw up a legislative proposal for the implementation of an agreement 
under Article 4(2) ASP to enable it to give its opinion in due time on the proposal 
before the Council reaches its formal decision. 
Issues related to the role of the European institutions in the decision-making process 
under the Agreement on Social Policy - and in particular the provision of information 
concerning negotiations between the social partners - will be the subject of further 
discussions between the Commission, the Council and the European Parliament in the 
context of the Inter-Institutional Trilogue. 
6. NEW PROSPECTS OPEN UP 
6.1 Social dialogue and enlargement 
With a view to the launch of the process of accession to the European Union and above all 
the adoption of Agenda 2000 and the opening of negotiations, it is important to emphasize 
the following: 
it is essential, as reflected in the Accession partnerships, that the applicant 
countries develop social dialogue structures and activities. Their social partners 
should prepare themselves to play an effective role in the framework of the social 
dialogue. All parties agree that it is of vital importance to help the Central and 
Eastern European Countries in that context; 
and furthermore, 
the inclusion of the Agreement on Social Policy in the Amsterdam Treaty 
consolidates the position of the social dialogue as a major component in 
Community social policy which new Member States have to take into account in 
incorporating the acquis communautaire into their legislation. 
To this end the Commission: 
will assist the social partners in the European Union in developing links and 
practical cooperation at cross-industry and sectoral levels so as to encourage the 
development in Central and Eastern Europe of independent, representative trade 
union and employers' organizations; 
encourages the political and administrative bodies in the applicant countries to 
associate the social partners closely in the pre-enlargement policy of the 
European Union and to adapt the national legal frameworks so as to promote the 
development of the social dialogue structures; 
20 
will support the appropriate forums of the social dialogue to receive social 
partners from the applicant countries to learn about its underlying principles and 
working forms. 
6.2 Developing a European industrial relations and partnership culture 
6.2.1 Transnational decentralized dialogue 
There is a fast-developing social dialogue within multinational companies. Following the 
adoption of the Directive on the establishment of a European works council20, the social 
partners in the companies concerned concluded more than 400 agreements before it came 
into force. The Commission intends to continue to support the development of links 
between the European and transnational levels so as to help the parties concerned to draw 
upon the best experiences and ideas. 
To this end the Commission will organize a conference in 1998 to take stock of the 
agreements on information and consultation concluded in transnational undertakings. 
There is also growing cross-border social dialogue at regional level, a useful channel in 
regions where there are significant cross-border flows, both in relation to employment and 
the implementation of directives on working conditions. The Commission will consider 
how to assist actions of this kind when they clearly present added value at European level. 
6.2.2 Support to management and labour 
Independently of the social dialogue, the Commission supports initiatives to increase the 
awareness of European issues. 
An ongoing initiative in this connection is the Network of Human Resource Directors 
which plays a part in disseminating successful experiences and new ideas that can be used 
at other levels of the dialogue. 
The European Business Network for Social Cohesion brings together a number of 
companies that are developing innovative initiatives to give a practical content to their 
social commitment to combat social exclusion and promote social cohesion. 
The Commission gives technical and financial support to various initiatives both by 
employer' and employee' organizations (conferences, implementations of joint 
initiatives, diffusion of the results of the social dialogue...). 
The Commission also funds training operations organized by the trade unions and 
provides support for the European Trade Union Institute. The aim is to promote the 
dissemination of a European industrial relations culture while respecting national 
experience and tradition. 
Council Directive 94/45/EC of 22 September 1994 on the establishment of a European works 
council or a procedure in Community-scale undertakings for the purposes of informing and 
consulting employees. 
21 
6.2.3 Supporting the European Industrial Relations Centre 
The social partners concluded in 1995 an agreement establishing the European Centre for 
Industrial Relations, and their initiative received Commission support. It is a centre 
of learning where members of employer and trade union organizations from 
EU Member States study together the differing industrial relations systems in Europe. It 
offers pan-European learning, training and research facilities for joint use by European 
social partners. 
The Commission endorses the ECIR approach and will continue to monitor its development 
closely. It considers that the founders should reassess its functioning so as to realize its 
full potential. 
6.3 The means for promoting the social dialogue 
To promote the social dialogue at Community level there is a need to improve the 
political and logistical conditions so that dialogue can take place and provide prior and 
subsequent technical support to the various organizations taking part. 
The Commission has set up over the years, on is own initiative and also at the request of 
the social partners, various different structures for information, consultation and dialogue. 
They enable the social partners to participate actively at Community level in a framework 
that encourages national members to express their views. 
The Commission also supports initiatives by the social partners at European and national 
level aimed at placing greater emphasis on the Agreement on Social Policy: preliminary 
awareness-raising (conferences, studies, preparatory meetings, working parties, training 
on European affairs) and support for follow-up to measures resulting from the social 
dialogue (dissemination, monitoring and appraisal of agreements, European action, for 
example, on youth employment, and the setting up of an industrial relations 
training centre). 
The Commission has to promote and support the social dialogue in the most effective 
way, and this implies adapting existing structures to enable the social partners to develop 
the optimal solutions in the light of recent developments and the subsequent challenges 
that lie ahead. 
The support by the Commission should open the possibility for the social partners at 
European level to anticipate and analyse changes in order to better understand various 
industrial relations systems and to examine impact of reform of European industry, 
economy, labour markets including training systems, and social security systems. In other 
terms it should permit present and future generations of social partners to play their role 
as negotiators at the European level in order to promote European integration in the 
context of the single market, of EMU and of social cohesion. 
22 
6.4 A Reflection Process: Study Group 
Like the other industrialized regions of the world, Europe has to face a number of major 
challenges including global competition, rapid technological progress, and the protection 
of the environment and an ageing population. In addition, it has to prepare for the 
introduction of the single currency from 1999 onwards and for the integration of new 
Member States into the Union. Furthermore, the position in general of the social partners 
in the Member States and at European level is changing more and more into a partnership 
role, most importantly the key role the social partners have been given in the Amsterdam 
Treaty and, subsequently, in the context of the Employment Guidelines. All these changes 
have implications for industrial relations, and the quality of industrial relations systems 
will determine to a considerable extent how successful Europe will be in responding to 
these challenges. 
As a contribution to the debate on these fundamental issues the Commission has decided 
to involve experts from both national and European level to secure the broadest possible 
views on the issues and to strengthen the knowledge about European social dialogue. It 
should support a process of discussion at all relevant levels. 
23 
ANNEX I 
List of European social partner organizations currently consulted in accordance with 
Article 3 of the ASP 
This list will be adapted according to the criteria set out in Commission Communication 
COM(93) 600 final of 14 December 1993 concerning the application of the Protocol on 
Social Policy, para. 24, following the periodic results of the ongoing representativeness 
study. 
1. General cross-industry organizations 
Union of Industrial and Employers' Confederations of Europe (UNICE) 
European Centre of Enterprises with Public Participation (CEEP) 
European Trade Union Confederation (ETUC)" 
2. Cross-industry organizations representing certain categories of workers or undertakings: 
European Association of Craft, Small and Medium-Sized Enterprises 
(Joint Committee of Social Dialogue: UEAPME -EUROPMI) 
Confédération européenne des cadres (CEC) 
Eurocadres 
3. Specific organizations 
EUROCHAMBRES 
4. Sectoral organizations 
EUROCOMMERCE 
COPA/COGECA 
EUROPECHE 
Association of European Cooperative Insurers, AECI 
International Association of Insurance and Reinsurance Intermediaries, BIP AR 
European Insurance Committee, CEA 
Banking Federation of the European Community 
24 
Savings Banks Group of the European Community, GCECEE 
Association of Cooperative Banks of the EC 
European Confederation of woodworking industries, CEI-bois 
Confederation of the National Hotel and Restaurant Associations in the EC, 
HOTREC 
European Construction Industry Federation 
European Regional Airlines Association. ERA 
Airports Council International - European Region, ACI-Europe 
Association des compagnies indépendantes de la Communauté européenne, 
ACE 
Association of European Airlines, AEA 
Organization européenne des bateliers 
International Union for Inland Navigation 
European Community Shipowners Association, ECSA 
Community of European Railways, CER 
International Road Transport Union, IRU 
Industrial Cleaning European Federation, FENI 
5. European Industry Committees with ETUC affiliation (*) 
FEM/EMF (Metal.) 
EURO-FIET (Commercial, Clerical and Technical Employees) 
European Committee Communications International 
EFA (Agricultural workers) 
EEA (Media) 
ECF (Food and Horeca) 
FSESP/EPSU (Public Services) 
FST (Transport) 
25 
CSEE/ETUCE (Education) 
FETBB/EFBWW (Building - Woodworkers) 
FGE/EGF (Graphical) 
FSE-THC/ ETUF-TCL (Textiles) 
EMCEF (Miners, Chemical and Energy) 
FEJ-FIJ/EFJ-IFJ (Journalists) 
EFDPS (Diamond and Precious Stone Workers) 
(*) Copy of the letter to the ETUC 
25 
ANNEX II 
COMMISSION DECISION 
of 20 May 1998 
on the establishment of Sectoral Dialogue Committees promoting the Dialogue between 
the social partners at European level 
27 
EXPLANATORY MEMORANDUM 
1. The Commission has an obligation to promote dialogue between management and 
labour under Article 118b of the Treaty. It receives input from the sectoral social 
partners on Community policy through consultations on a number of social policy 
initiatives and, in the sectors where there is a common policy, on the formulation 
and implementation of sectoral policies. The sector-specific consultations are 
aimed at improving and harmonizing working conditions and also, in some cases, 
improving the economic and competitive position of the sector concerned. This 
work is carried out in sectoral committees, either set up on a formal basis, 
Joint-Committees, or in informal working groups. 
2. The Commission adopted in September 1996 a consultation Communication 
(COM(96) 448 final of 18 September 1996 concerning the development of 
the social dialogue at Community level) in order to gather as wide a range of 
views as possible on the means to be employed to promote and developing 
the European social dialogue. In this document the Commission pointed out 
that the Joint Committees and informal working groups have become 
over-institutionalized or have retained operational methods which have outlived 
their usefulness. It asked therefore the views on the organization and 
responsibilities for sectoral dialogue. 
3. During 1997 more than 80 detailed replies were received from employers' 
and workers' European and national organizations, European institutions 
(See the European Parliament Resolution on the Commission Communication 
"Concerning the development of the social dialogue at Community level 
COM(96)448 final" of 18 July 1997 and the Opinion of the Economic and 
Social Committee on the same issue adopted on 29-30 January 1997) and from 
national authorities. A European Forum was held in the Hague in April 1997 for a 
debate on the future of social dialogue at European level. 
4. Most respondents agreed with the Commission conclusion that the current 
structures often hinder positive developments. A more harmonized approach needs 
to be taken to the structures supporting the sectoral dialogue with a view to 
ensuring a more equitable treatment of the different sectors of activity and to 
enable all sectors to contribute in the most effective and substantial way to the 
development of the relevant Community policies. The Commission should be 
prepared to respond to the requests of the sectors willing to make a significant 
joint contribution. 
5. Therefore, in order to improve the input of the sectoral dialogue in quantitative 
and qualitative terms, giving an increased added value at European level, it is 
necessary to replace the existing structures and encourage a more efficient 
dialogue. The operating procedures will be streamlined: one high-level plenary 
meeting each year, a restricted social partner delegation, reimbursement for 
maximum 15 participants from each side. The Commission, through the DG most 
concerned with the issues on the agenda or DG V, will provide secretarial 
28 
services; the meetings will normally be chaired by a delegate of the employers or 
employees, but a representative of the Commission will take the chair if both 
parties jointly ask it to do so. Each sector will be firmly supported through a 
partnership between DG V and the other relevant DGs, including împroved 
technical backup for the preparation of and follow-up to meetings. 
29 
COMMISSION DECISION 
of 20 May 1998 
on the establishment of Sectoral Dialogue Committees promoting the Dialogue between 
the social partners at European level 
THE COMMISSION OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Community, 
Whereas Article 118b of the Treaty states that the Commission is to endeavour to develop 
the dialogue between management and labour at European level which could, if the two 
sides consider it desirable, lead to relations based on agreement; 
Whereas point 12 of the Community Charter of the Fundamental Social Rights of 
Workers states that employers or employers organization, on the one hand, and workers' 
organizations, on the other, should have the right to negotiate and conclude collective 
agreements under the conditions laid down by national legislation and practice. The 
dialogue between the two sides of industry at European level which is to be developed, 
may, if the parties deem it desirable, result in contractual relations in particular at 
inter-occupational and sectoral level; 
Whereas the Commission in response to the Communication of 18 September 1996 
concerning the development of the social dialogue at Community level21 received a strong 
support from all involved parties in its suggestion to strengthen the sectoral 
social dialogue; 
Whereas the European Parliament, in its Resolution of 18 July 199722, responding to that 
Commission Communication, called for a specific importance to be attached to the 
sectoral social dialogue since the impact of regulation and/or deregulation on employment 
in the economic sectors can best be assessed within the sectoral dialogue; 
Whereas the Economic and Social Committee in its opinion of 29 January 199723, 
responding to that Commission Communication, stated that the sectoral dialogue must be 
effective, efficient and well-directed; 
Whereas the situation in the various Member States clearly demonstrates the need for the 
two sides of industry to participate actively in discussions on the improvement of living 
and working conditions in their sector; whereas a sectoral dialogue committee attached to 
the Commission is the most appropriate means of ensuring such participation, by creating 
at Community level a representative forum for the socio-economic interests involved; 
Whereas the Commission should endeavour to ensure that the membership and the 
activities of the Sectoral Dialogue Committees contribute to the promotion of equality 
between women and men; 
21 COM(96) 448 final. 
22 OJC286, 22.9.1997, p. 338. 
23 OJC 89, 19.3.1997, p. 27. 
30 
Whereas the existing Joint Committees should be replaced by the Sectoral Dialogue 
Committees; whereas the Decisions establishing those Committees should therefore 
be repealed, 
HAS DECIDED AS FOLLOWS: 
Article 1 
Sectoral Dialogue Committees (hereinafter referred to as "the Committees") are hereby 
established in those sectors where the social partners make a joint request to take part in a 
dialogue at European level, and where the organizations representing both sides of 
industry fulfil the following criteria: 
(a) they shall relate to specific sectors or categories and be organized at 
European level; 
(b) they shall consist of organizations which are themselves an integral and 
recognized part of Member States' social partner structures and have the capacity 
to negotiate agreements, and which are representative of several Member States; 
(c) they shall have adequate structures to ensure their effective participation in the 
work of the Committees. 
Article 2 
Each Committee shall, for the sector of activity for which it is established, 
(a) be consulted on developments at Community level having social implications, and 
(b) develop and promote the social dialogue at sectoral level. 
Article 3 
The representatives of the two sides of industry taking part in the meetings of each 
Committee shall number a maximum of 40 in all, with an equal number of representatives 
of the employers' and workers' delegations. 
Article 4 
The Commission shall invite the representatives to participate in the meetings of the 
Committees on a proposal from the social partner organizations which have made the 
request set out in Article 1. 
Article 5 
1. Each Committee shall, together with the Commission, establish its own rules 
of procedure. 
2. The Committees shall be chaired by a representative of the employers' or 
employees' delegations or, at their joint request, by a representative of 
the Commission. 
31 
3. The Committees shall meet at least once a year. A maximum of 30 representatives 
drawn from the two sides of industry taking part in a meeting of a Committee shall 
receive subsistence allowance and travelling expenses. 
4. The Commission shall regularly review, in consultation with the social partners, 
the functioning of the Sectoral Committees and the pursuit of their activities in the 
different sectors. 
Article 6 
If the Commission has informed a Committee that a subject discussed relates to a matter 
of a confidential nature, members of the Committee shall be bound, without prejudice to 
the provisions of Article 214 of the Treaty, not to disclose any information acquired at the 
meetings of the Committee or its secretariat. 
Article 7 
1. The Sectoral Dialogue Committees shall replace the existing Joint Committees, 
namely: 
(a) Joint Committee on Maritime Transport established by 
Commission Decision 87/467/EEC24; 
(b) Joint Committee on Civil Aviation established by Commission 
Decision 90/449/EEC25; 
(c) Joint Committee on Inland Navigation established by 
Commission Decision 80/991/EEC26; 
(d) Joint Committee on Road Transport established by Commission 
Decision 85/516/EEC27; 
(e) Joint Committee on Railways established by Commission 
Decision 85/13/EEC28; 
(f) Joint Committee on Telecommunications Services established by 
Commission Decision 90/450/EEC29; 
(g) Joint Committee on Social Problems of Agricultural Workers established 
by Commission Decision 74/442/EEC30; 
24 OJ L 253, 4.9.1987, p. 20. 
25 OJL230, 24.8.1990, p. 22. 
26 OJL297, 6.11.1980, p. 28. 
27 OJ L 317, 28.11.1985, p. 33 
28 OJL 8, 10.1.1985, p. 26. 
29 OJL 230, 24.8.1990, p. 25. 
30 OJL 243, 5.9.1974, p. 22. 
32 
(h) Joint Committee on Social Problems in Sea Fishing established by 
Commission Decision 74/441 /EEC31. 
(i) Joint Committee on Postal services established by Commission Decision 
94/595/EC32. 
However, the Committees established by those decisions shall remain in office 
until the Sectoral Committees established by this Decision take office, but in any 
event no later than 31 December 1998. 
2. Subject to Article 1, the Sectoral Dialogue Committee shall also replace other 
informal working groups through which the Commission has heretofore promoted 
the social dialogue in certain sectors not covered by a Commission decision 
establishing a Joint Committee. 
3. The Decisions referred to in points (a) to (i) of paragraph 1 are repealed with effect 
from 1 January 1999. 
Done at Brussels, 20 May 1998 For the Commission 
Pâdraig FLYNN 
Member of the Commission 
31 OJL243, 5.9.1974, p. 19. 
32 OJL225, 31.8.1994, p. 31. 
33 
Draft 
COUNCIL DECISION 
amending Decision 70/532/EEC setting up the Standing Committee on Employment 
in the European Communities 
34 
EXPLANATORY MEMORANDUM 
1. Tripartite discussion on employment takes place at meetings between 
representatives of the social partners, the Council and the Commission. The 
purpose, in addition to the specific priorities of each of the parties, is to 
determine shared objectives. The key body at European level has been the 
Standing Committee on Employment, set up in 1970 (Council Decision 
70/532/EEC as amended by Decision 75/62/EEC). 
2. There has been quite a lot of criticism of the operation of this Committee as it now 
stands. Most of the Committee members agree that its operations are out-of-date: 
as are the membership, the working methods and the use to which its results 
are put. 
3. Moreover, the context for tripartite dialogue at Community level has been 
transformed in recent years: 
the tripartite approach has become more relevant in a number of the 
Member States involved in the conclusion of employment pacts; 
in the recent debates on flanking measures for industrial restructuring, 
partnership has been considered one of the most important approaches that 
should be promoted; 
the incorporation of a new employment title in the Amsterdam Treaty and 
the application of these arrangements (see the Council Resolution on the 
1998 Employment Guidelines adopted on 15 December 1997, OJ C 30, 
28.1.1998, pp. 1-5) has changed the direction of the tripartite dialogue. 
Furthermore, recent initiatives to encourage new forms of tripartite dialogue have 
led to an increase of fora, in parallel to the meetings at Ministerial level within the 
framework of the Standing Committee on Employment, where the Council and the 
social partners meet to discuss employment issues, such as the meetings between 
the Employment and Labour Market Committee Steering Group and the social 
partners, and the meetings between the Troika of Ministers and/or Heads of State 
and the social partners. 
4. These developments and the undisputed lack of efficiency of the 
Standing Committee in its present form require a new rationalized process 
allowing the social partners to contribute in the most effective way to the 
development and implementation to the Employment Guidelines and Broad 
, Economic Orientations. The Commission proposal for the amendment of the 
current Council Decision will accordingly limit the number of participants in the 
meetings, update the membership of the social partners taking into account 
successive enlargements of the Community and developments affecting the 
representative organizations. It will also give the necessary flexibility in order for 
the Committee meetings to be directly linked to the new employment process. 
35 
The Commission's comments on the sole Article in its proposal are given below: 
5. As regards the amendment to Article 2(1) of Decision 70/532/EEC 
First, this amendment confines itself to reflecting the change in the membership of 
the Committee which is made in the amendments introduced in Article 2. 
Secondly, it stipulates that the Committee shall meet twice a year. This replaces 
the earlier obligation for the Committee to "fulfil its tasks before any measures are 
adopted by the relevant institutions". This change reflects the important role the 
social partners should play in the new process on employment as set out in 
the conclusions of the European Council meeting on employment held on 
20-21 November 1997 (p. 19) (The Luxembourg Jobs Summit). 
6- As regards the amendment to Article 2(2) of Decision 70/532/EEC 
This amendment gives the necessary flexibility for each Presidency of the Union 
to choose the most appropriate form for discussing employment with the 
social partners; either the full Council or the Troika of Heads of States or 
Governments as set out in the conclusions to the Luxembourg Jobs Summit 
(p. 19). 
7. As regards the amendment to Article 2(3) of Decision 70/532/EEC 
This amendment firstly reduces the number of social partner participants from 36 
to 16 in order to allow for a more effective form of meeting. Secondly, it replaces 
the function of the Annex in the former decision as it stipulates which social 
partner organizations are to take part in the work of the Committee. The social 
partner organizations are selected so that each social partner delegation covers the 
whole economy, and include European organizations, representing either general 
interests or more specific interests of supervisory and professional staff and small 
and medium-sized businesses. 
8. As regards the amendments to Article 2(4) and deleting the Annex to 
Decision 70/532/EEC 
This amendment reflects the reduction of participants from the social partner 
delegations. 
36 
Draft 
COUNCIL DECISION 
amending Decision 70/532/EEC setting up the Standing Committee on Employment in 
the European Communities 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 145 thereof, 
Whereas the European Parliament in its Resolution of 18 July 199733 on the Commission 
Communication of 18 September 1996 concerning the development of the social dialogue 
at Community level34 called for the Standing Committee on Employment to be reformed 
as a matter of urgency; 
Whereas the Economic and Social Committee in its opinion of 29 January 199735 on the 
same Commission Communication stated that the Standing Committee on Employment 
was to be given a higher profile; 
Whereas the Council in its Resolution of 15 December 1997 on the 1998 
Employment Guidelines36 emphasized the need to associate the social partners in 
employment strategy; 
Whereas the Commission in its Communication of 20 May 1998 "Adapting and 
Promoting the Social Dialogue at Community level"37 underlined the importance of 
adapting the composition and working methods of the Standing Committee on 
Employment to the new environment; 
Whereas in its conclusions to the Intergovernmental Conference held at Florence on 
21 and 22 June 1996, the European Council reaffirmed the importance to promoting 
employment and reducing the unacceptably high levels of unemployment in Europe, 
particularly for young people, the long-term unemployed and the low-skilled; 
Whereas the European Council emphasized at its extraordinary summit on employment 
held in Luxembourg on 20-21 November 1997 that, as part of the necessary strengthening 
of the social dialogue, the social partners at all levels would be involved in all stages of 
this new strategy and would have their contribution to make to the implementation of 
the guidelines; 
Whereas Council Decision 70/532/EEC38, as last amended by Decision 75/62/EEC39, 
should therefore be amended accordingly, 
33 OJC 286, 22.9.1997, p. 338. 
34 COM(96) 448 final. 
35 OJC 89, 19.3.1997, p. 27. 
36 OJ C 30, 28.1.1998, p. 1. 
37 COM(1998) 322 final. 
38 OJ 273, 17.12.1970, p. 25. 
39 OJ 21, 28.1.1975, p. 17. 
37 
HAS DECIDED AS FOLLOWS: 
Sole Article 
Decision 70/532/EEC is amended as follows: 
1. In Article 2, paragraphs 1 to 4 are replaced by the following: 
"1. The task of the Committee shall be to ensure, in compliance with the 
Treaties and with due regard for the powers of the institutions and organs 
of the Communities, that there shall be continuous dialogue, joint action 
and consultation between the Council - or the "troika" of Heads of State or 
Government - the Commission and the two sides of industry in order to 
facilitate coordination by the Member States of their employment policies 
in harmony with the objectives of the Community. 
The Committee shall meet twice a year. 
2. The following parties shall take part in the work of the Committee: 
either the Council or the "troika" of Heads of State or Government; 
the Commission; 
employers' organizations; 
workers' organizations. 
3. There shall be eight representatives from each of the two sides of industry, 
each delegation covering the whole economy, being composed of 
European organizations, representing either general interests or more 
specific interests of supervisory and professional staff and small and 
medium-sized businesses. The designation of the employees' delegation 
(ETUC, CEC) shall be coordinated by the European trade union 
confederation (ETUC), and the designation of the employers' delegation 
(UNICE, CEEP, UEAPME, Eurocommerce, COP A) shall be coordinated 
by the union of industries of the European Community (UNICE). 
4. Each of the parties taking part in the work of the Committee shall appoint 
its representatives at its own discretion either for a specified period or, 
depending on the matters to be dealt with, for specific meetings." 
2. The Annex is deleted. 
Done at Brussels, For the Council 
The President 
38 
FINANCIAL STATEMENT 
1. TITLE OF OPERATION 
Sectoral dialogue committees 
2. BUDGET HEADING INVOLVED 
Part A of the budget only 
3. LEGAL BASIS 
Treaty on European Union, in particular Article 118b thereof and Article 3 of the 
Agreement on social policy 
4. DESCRIPTION OF OPERATION 
4.1 General objective 
The Commission is presenting a proposal for the rationalization of the 
existing committees and groups in the field of sectoral social dialogue. The 
objectives are to provide a single structure for social dialogue and reduce 
the administrative burden on the existing joint committees. Rationalization 
will make it possible to meet the demands from new sectors for 
participation in the social dialogue without increasing the available 
resources. It will also involve changes to the joint committees' statutes. 
4.2 Period covered and arrangements for renewal or extension 
Unlimited 
5. CLASSIFICATION OF EXPENDITURE OR REVENUE 
5.1 Non-compulsory expenditure 
5.2 Non-differentiated appropriations 
5.3 Type of revenue involved: None 
6. TYPE OF EXPENDITURE OR REVENUE 
Expenditure consists mainly of the costs involved in organizing sectoral social 
dialogue meetings, i.e. hiring of rooms, reimbursement of employers' and 
workers' travel expenses, and interpreting. 
39 
7. FINANCIAL IMPACT 
NO IMPACT AS REGARDS PART B OF THE BUDGET 
7.1 Method of calculating total cost of operation (link between unit costs 
and total cost 
Rationalization and changes to the statutes of the sectoral social dialogue 
committees will not give rise to any new needs in terms of financial or 
other resources. 
7.2 Itemized breakdown of cost 
EC in ECU million (current prices) 
Breakdown 
Total Budget 
yearn n+1 
* n + 5 and 
subs, yrs Total 
7.3 Operational expenditure (studies, experts, etc.) included in Part B of 
the budget 
EC in ECU million (current prices) 
Breakdown 
- Studies 
- Meetings of experts 
- Conferences and 
congresses 
- Information and 
publications 
Total Budget 
yearn n+1 n + 5 
and 
subs, 
yrs Total 
40 
7.4 Schedule of commitment and payment appropriations 
EC in ECU million 
Commitment 
appropriations Yearn n+1 n + 5 
and 
subs, yrs Total 
Payment 
appropriations 
Yearn 
n + 1 
n + 5 and subs, 
yrs 
Total 
8. FRAUD PREVENTION MEASURES 
Given the type of expenditure planned (organization of meetings), no measures are 
envisaged, apart from the usual checks on requests for reimbursement of 
participants' travel, hotel and subsistence expenses. 
9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 
9.1 Specific and quantified objectives; target population 
The intention is to allow the sectoral social partners to develop a social 
dialogue with a view to entering into agreements. 
The target population consists of the social partners' organizations at 
sectoral level and members of organizations in line with the principle of 
representativeness. 
41 
9.2 Grounds for the operation 
The sectoral social dialogue has been constantly enhancing its input at 
European level. In order for this development to continue and to improve 
the input in quantitative and qualitative terms, giving an increased added 
value at European level, it is necessary to replace the existing structures 
and encourage an efficient political dialogue rather than highly formalized 
exchanges of position. 
The Commission will establish a new framework within which the sectoral 
dialogue can continue its development. This framework will be applicable 
on the same terms to all sectors wishing to take part in social dialogue and 
will be easily extendible to new sectors. 
The new committees will constitute the key forum for sectoral dialogue 
(consultation, joint action and negotiations) and be set up in all sectors 
which submit a joint request and are sufficiently well-organized with 
a meaningful European presence in line with the established criteria 
of representativeness. 
9.3 Monitoring and evaluation of the operation 
Meeting organization facilities will be made available to the various 
committees in accordance with their annual work programmes. 
Texts jointly adopted by the social partners as a result of the committees' 
activities will be made public and will be disseminated both within the 
Community Institutions and within the Member States, particularly to the 
members of the national social partners' organizations. 
The results of the social dialogue and hence of the functioning of these 
committees will be judged mainly by the employers' and workers' 
electorates in the context of social elections or other electoral procedures 
used to appoint workers' and employers' representatives. 
The Commission will also describe the outcome of the sectoral 
committees' activities in its annual social dialogue report. 
10. ADMINISTRATIVE EXPENDITURE (PART A OF THE BUDGET) 
The actual mobilization of the necessary administrative resources will depend on 
the Commission's annual decision on the allocation of resources, taking account in 
particular of the additional staff and sums approved by the budget authority. 
10.1 Effect on the number of staff 
No additional staff required 
The following table thus refers to the staff already deployed. The operation 
will necessitate internal reallocations in the distribution of tasks. 
42 
Types of staff 
Officials or 
temporary 
agents A 
B 
C 
Other resources 
A-7001 
Total Staff to be assigned to 
managing the operation 
Permanent 
staff 
9 
1 
2 
12 Temporarv 
staff 
1 
1 
2 Of which 
Using existing 
resources 
within the DG 
or service 
concerned 
10 
1 
2 
1 
14 Using 
supplementary 
resources Duration 
Indefinite 
10.2 Overall financial impact of human resources 
No additional staff required 
The following table thus refers to the staff already deployed. The operation 
will necessitate internal reallocations in the distribution of tasks. 
(ECU) 
Amounts Calculation method 
Officials* 1 296 000 12x108 000=1296 000 
Temporary agents 108 000 1 x 108 000 = 108 000 
Other resources 43 000 1 x 43 000 = 43 000 
(A-7001) 
Total 1 447 000 
Using available resources allocated to management of the operation 
(calculation based on titles A-l, A-2, A-4, A-5 and A-7) 
43 
10.3 Financial impact of other operating expenditure involved in 
the operation 
(ECU) 
Budget line (number Amounts Calculation method 
and heading) 
A-7032 committee 1 265 040 ECU 753 per participant on average x 
meetings maximum 30 participants per meeting 
x minimum 56 meetings 
Total 1 265 000 
The amount indicated, which covers all the sectoral dialogue committees to be 
established, will be taken from the DG V budget. 
44 


ISSN 0254-1475 
COM(98) 322 final 
DOCUMENTS 
EN 05 01 
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ISBN 92-78-36861-X 
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