B4-0902, 0903, 0910, 0916, 0929 and 0942/98

Resolution on the Levi Strauss restructuring plan

The European Parliament,

- having regard to the European Social Charter and the Community Charter of the Fundamental Social Rights of Workers as incorporated in the Amsterdam Treaty,

- having regard to Council Directive 75/129/EEC of 17 February 1975 on the approximation of the laws of the Member States relating to collective redundancies, as amended by Council Directive 92/56/EEC of 24 June 1992,

- having regard to Council Directive 94/45/EC of 22 September 1994 on the establishment of a European Works Council or a procedure in Community-scale groups of undertakings for the purposes of informing and consulting employees,

- having regard to the final report of the group of experts on 'European Systems of Worker Involvement' (Davignon Group) and its resolution of 19 November 1997 thereon ((OJ C 371, 8.12.1997, p. 83.)),

- having regard to the statement by the OECD member state governments on international investment and multinational companies,

- having regard to its resolutions of 13 July 1995 on relocations and job losses in the European Union, with particular reference to Lee Europe in Ypres ((OJ C 249, 25.9.1995, p. 152.)) and 12 March 1997 on the closing of the Renault plant in Vilvoorde ((OJ C 115, 14.4.1997, p. 94.)),

A. greatly concerned by the announcement by the chairman of Levi Strauss Europe on 29 September 1998 of the group's intention to close four factories in Belgium (Hooglede-Gits, Wervik, Deurne) and France (La Bassée), with the loss of 1 461 jobs, as well as about 100 jobs elsewhere in Europe, to reduce running costs,

B. whereas the workers have made considerable efforts to avoid their factories' being closed down,

C. whereas restructuring is a matter for businesses, but account must be taken in reaching decisions of their social effects, including employment; whereas the closure of a business must be carried out in accordance with international, Community and national rules,

D. whereas the Levi Strauss group still made a significant profit in Belgium in 1997, opened a new factory in Turkey and doubled its output in Hungary,

1. Declares its solidarity with the Levi Strauss workers who are threatened with redundancy as a result of the closure of the four factories, bearing in mind the fact that restructuring will have an impact on other companies, industries and countries;

2. Urges the management of Levi Strauss Europe to consider all the possible alternatives with a view to restructuring in a sensitive way, avoiding closures and redundancies;

3. Calls for the workers' representatives to continue to be involved in the negotiations concerning the restructuring;

4. Queries a restructuring operation, on the grounds of alleged overproduction, while Levi Strauss is increasing the number of its factories and their production capacity outside the European Union;

5. Reiterates the requests made to the Commission in its resolutions of 13 July 1995 and 12 March 1997 referred to above and, in particular, calls on it as a matter of urgency to tighten up Directive 75/129/EEC on collective redundancies and Directive 94/45/EC on a European Works Council;

6. Calls on the Commission to step up its efforts to link the possibility of receiving European subsidies to economic and social conditions and to ascertain whether all the conditions are being met in the case of the subsidies already granted to Levi Strauss;

7. Calls on the Commission to provide within one month a complete summary of all subsidies provided to Levi Strauss Europe (from the Structural Funds, Retex, Phare, Tacis etc.);

8. Emphasises the need for improved coordination of tax policy with regard to undertakings and capital at European Union level to enable the Member States to ensure the tax burden on capital is more fairly distributed and to reduce the social costs of labour;

9. Instructs its President to forward this resolution to the Commission, the Council, the Belgian, Flemish and French Parliaments, the European, Belgian and French social partners, the management of Levi Strauss Europe and the trade union delegations of the factories concerned.