No C 109/52 Official  Journal  of the  European  Communities 19. 9. 74 
reduced  following  this  recommendation.  The  social 
partners  should  ensure  equitable  treatment  between 
such  workers  and  any  who  may  already  benefit 
from  a 40-hour  working  week. 
4th subparagraph 
2.4. The  Committee  foresees  some  problems  in 
the proposal  in so far as it takes  no account  of the 
different  national  relationship  between  annual  holi-
days  on  the  one  hand  and  public  holidays, 
including  feast  days,  on the  other.  For  example, 
four weeks'  annual  holiday  in the  United  Kingdom 
would  be additional  to any  days  of national  or relig-
ious holiday  ; in other  countries  it might  be addi-
tional  provided  the dates  did not coincide. 
This  is not a simple  problem  and  the  Commission's 
draft  treats  it as one.  The  level  of paid  annual  holi-
days  cannot  simply  be changed  without  recognition 
of the realities  of the situation,  and  the Commission 
should  revise  the  proposal  to allow  national  and 
religious  holidays  to be  taken  into  account  by 
Member  States  in implementing  the  recommenda-
tion.  This  might  be done  by expressing  it in terms 
of the  total  number  of paid  working  days'  holiday 
in the year  rather  than  calendar  weeks. 
5th subparagraph 
2.5. This  is understood  to require  that  so far as 
is necessary  appropriate  changes  are  made  to 
holiday  pay  arrangements  to ensure  that  any  new holiday  achieved  as a result  of the  recommendation 
will be paid  on the  same  basis  as existing  annual 
holiday.  The  Committee  approves  this  proposal. 
6th subparagraph 
2.6. This  should  be subject  to the necessary  modi-
fication  for particular  circumstances  proposed  in the 
comments  to earlier  parts  of the  recommendation. 
It is unrealistic  to assume  that  the  public  services, 
including  the police,  transport,  fire  services,  etc.,  can 
benefit  from  a 40-hour  week  without  any  acknow-
ledgement  of the need  to work  on a shift  basis. 
7th subparagraph 
2.7. This  would  be more  effective  if there  was  a 
requirement  to notify  the  Commission  before  the 
expiring  of the  deadlines  of any  action  taken  at 
national  level  intended  to enable  the deadlines  to be 
met. Similarly  provision  should  be made,  since  this 
is only  a recommendation,  for further  reports  to be 
provided  from  any  country  which  did  not  suceed  in 
meeting  the  deadlines.  The  reports  should  be 
provided  on a regular  basis  until  the  recommenda-
tion is fully  implemented. 
Done  at Brussels,  30 May  1974. 
The Chairman 
of the 
Economic  and  Social  Committee 
Alfons  LAPPAS 
OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
on employment  and  the changed  situation  in the Community 
The Opinion  of the Committee  is not based  on any  text. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its 118th  Plenary  Session  held  on 30 January  1974,  the  Committee,  acting  on a 
proposal  from  the Bureau,  decided  to deliver  an Opinion  on the abovementioned  subject 
on its own  initiative. 
19. 9. 74 Official  Journal  of the  European  Communities No C 109/53 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its Opinion  on the above  matter  at its 
120th  Plenary  Session,  held  in Brussels  on 29 and 30 May  1974. 
The full  text  of the Opinion  is as follows  : 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  Communique  issued  by the 
Heads  of State  or of Government  of the  countries 
of the  Community  at their  meeting  in Paris  on 19 
and 20 October  1972,  in which  they  called  for recog-
nition  of the  right  of the  Economic  and  Social 
Committee  to advise  on its own  initiative  on all 
questions  affecting  the Community  ; 
Having  regard  to the  Decision  taken  by the Bureau 
of the  Committee  on  29  January  1974,  and 
confirmed  by the  Committee  at its Plenary  Session 
on 30  January  1974,  entrusting  the  Section  for 
Social  Questions  with  the  preparation  of  an 
Opinion  on  the  employment  situation  in  the 
Community  ; 
Having  regard  to the  Opinion  delivered  by  the 
Section  for  Social  Questions  at its meeting  on 11 
April  1974  ; 
Having  regard  to the  oral  report  made  by  the 
Rapporteur; 
Having  regard  to the  discussions  at its  120th 
Plenary  Session  on 29 and  30 May  1974  ; 
Whereas  the  economic  and  monetary  difficulties  of 
Member  States  sometimes  have  considerable  reper-
cussions  on employment; 
Whereas  the  Community  institutions,  the  govern-
ments  and  the  social  partners  must  be prepared  to 
meet  dangerous  social  situations  ; 
Whereas  the negative  tendencies  currently  prevailing 
at Community  level  can  be modified  by concerting 
domestic  social  policies,  on the  basis  of continuing 
mutual  consultation  between  public  and  socio-
economic  authorities, 
HAS  ADOPTED  THE  FOLLOWING  OPINION  : 
1.1. The  request  of the  Section  for  Social  Ques-
tions  that  the Economic  and  Social  Committee  take 
up on its own  initiative  the question  of the employ-
ment  situation  in the Community  was  submitted  to the Committee  at a time  when  the  flow  of petro-
leum  products  to the  Member  States  had  been  cut 
back  sharply. 
1.2. The  downturn  in economic  activity  which 
could  have  resulted  from  this  cut-back  posed  a 
serious  threat  to the  jobs  of a great  many  wage-
earners  and  self-employed  persons. 
1.3. A  recurrence  of such  a cut-back  cannot  be 
ruled  out,  but  it seems  that  the  difficulties  in store 
for the Member  States  are more  likely  to be caused 
by a large  number  of products  rising  in price  or by 
some  being  in short  supply. 
1.4. The  shifts  in demand  which  this  may  cause 
in the short-term  would  have  an adverse  impact  on 
some  sectors  of economic  activity. 
1.5. In  order  to face  up to the  impending  diffi-
culties,  and  above  all to prepare  the  Community 
institutions,  the Member  States  and  the  social  part-
ners to meet  dangerous  situations  in the  future  the 
Committee  considers  it useful  to : 
— indicate  the  principles  which  should  underlie 
employment  policy, 
— urge  that  machinery  be set up to cushion  future 
shocks  and  that  certain  Community  policies  be 
revised  where  appropriate, 
— suggest  short-term  measures  which  must  be 
taken  if employment  is to be safeguarded  in the 
Community, 
— appeal  for  policies  to be coordinated  between 
the Member  States,  on the  basis  of continuing 
mutual  consultation  between  the  political  and 
socio-economic  authorities. 
2. Basic  Principles 
2.1. Questions  of employment  have  been  one  of 
the constant  concerns  of the Committee.  These  ques-
tions  have  been  analysed  in depth  by the Committee 
in its opinions  on the  free  movement  of workers, 
the development  of the  social  situation  in the 
No C 109/54 Official  Journal  of the European  Communities 19. 9. 74 
Community,  the  preliminary  guidlines  for  a social 
action  programme  and,  most  recently,  the  social 
action  programme  itself. 
2.2. Too  many  workers  go in constant  fear  of 
unemployment.  Over  the  past  few  years  this  fear 
has been  kept  alive  by the  closing  down  of under-
takings,  mergers,  rationalization  measures,  the disap-
pearance  of certain  trades,  young  persons'  difficulty 
in finding  employment,  conversion,  underemploy-
ment  and  so on,  which  show  that  workers  have 
hanging  over  them  the  threat  of losing  their  jobs  or 
finding  themselves  without  employment. 
2.3. As  far  as the  Committee  is concerned,  a 
policy  on employment  cannot  accept  unemployment 
as an inevitable  aspect  of the  economic  system  ; a 
policy  on  employment  must  be  a vehicle  for 
promoting  individual  and  collective  advancement, 
and must  ensure  the right  to work. 
2.4. For  satisfactory  results  to come  from  the 
quantitative  and  qualitative  changes  taking  place  in 
the field  of employment,  sufficient  jobs  must  be 
created  in all regions  of the  Community,  supply  and 
demand  on  the  labour  market  must  be  better 
matched  by  strengthening  public  employment 
services  and  using  the  most  advanced  techniques  ; 
special  attention  must  be given  to education  and 
training. 
2.5. Employment  policy  must  not  however,  be 
limited  to adapting  the  labour  force  to short-term 
trends.  More  fundamentally,  full  and  better  employ-
ment  must  be one  of the  vital  factors  in all deci-
sions  on technological  and  structural  changes. 
2.6. All  economic  development  must  also  take 
account  of workers'  aspirations  and  wishes. 
2.7. It  is vital  for  management  to keep  workers' 
representatives  in undertakings  informed  about  all 
matters  concerning  employment,  the  organization  of 
work,  training  and  manpower  policy  (mergers, 
concentrations,  rationalization  measures,  closures, 
takeovers,  structural  reforms). 
3. Present  uncertainty  and  the problem  of growth 
3.1.1.  The  increase  in the  prices  of raw  materials, 
and of  energy  in  particular,  will  bring  about changes  in aggregate  demand  — both  domestic  and 
foreign  — in each  of the  Member  States  and  within 
the Community  as a whole. 
3.1.2.  At  the  present  time,  it is still  impossible  to 
estimate  just  how  big  these  changes  will  be and 
what  their  precise  impact  will  be on the  level  of 
activity  and  employment  in certain  branches  of the 
economy. 
3.2. In  view  of the  structural  changes  which 
appear  inevitable,  measures  designed  to  prevent 
unemployment  and  underemployment  ought  to be 
examined. 
3.3. The  soaring  cost  of raw  materials  indicates 
the need  for  long-term  policies  which  will  make  it 
possible  to  meet  the  economic  and  social 
consequences  of structural  changes  and  changes  in 
the trade  relationship  between  industrialized  coun-
tries  and  countries  supplying  raw  materials. 
3.4. In  both  industrialized  and  developing  coun-
tries  the  employment  of all  workers  is directly 
affected  by population  trends  and  also  by monetary 
and commercial  policies,  policy  as regards  associa-
tion with  other  states,  technological  and  investment 
policies. 
3.5. On  occasions  growth  is based  on waste  or 
satisfaction  of artificial  wants. 
3.6. One  clear-cut  fact  must  be borne  in mind. 
Growth  is neither  automatic  nor  unlimited. 
3.7. A  turnabout  is vital  because  consumption  of 
world  resources  is exceeding  our  capacity  to replace 
them.  A new  development  strategy  concerns  the 
Community  as a whole.  Uncoordinated  action  is 
out of the question. 
4. Priority  measures 
4.1. In  the  short  term  we  cannot  discount  the 
possibility  of substantial  change  in certain  sectors. 
Such  a change  would  inevitably  affect  the  employ-
ment  situation. 
4.2. Fears  of an increase  in unemployment  and 
underemployment,  layoffs  and  short-time  working 
have  arisen  in the  Community,  although  the  situa-
tion differs  from  one  Member  State  to another. 
Initial  estimates  by the  Commission  indicate  a 0-7 °/o 
reduction  in hours  worked,  which  represents  the 
loss of approximately  700  000  jobs. 
19. 9. 74 Official  Journal  of the European  Communities No C 109/55 
4.3. We  must  first  of all define  which  sectors  are 
most  affected  and,  above  all,  examine  the  situation 
of the least  well-off  workers. 
4.4. In  the very  short  term,  this  investigation  must 
be aimed  at concerted  action  to ensure  continuing 
employment  for  all workers  who  have  a job  at 
present.  In the long  term  it must  have  as its goal  the 
necessary  structural  changes. 
4.5. Action  should  be taken  first  of all in those 
sectors  which  one  can  safely  say  are  suffering  the 
effects  of the  energy  situation.  These  are  in parti-
cular  the  automobile  and  allied  industries  (chemi-
cals and textiles). 
4.6. Some  members  request  that  the  Commission 
should  urgently  call  together  the  representatives  of 
employers  and  workers  in each  of the  sectors  that 
are most  threatened  in order  to take  stock  of the 
difficulties,  assess  their  extent  and  study  appropriate 
economic  and  social  solutions. 
4.7. Among  the  measures  that  should  be taken, 
these  members  advocate  : 
— A recommendation  to the  social  partners  in the 
sectors  in question  to conclude  sectoral  collec-
tive agreements  guaranteeing  workers  a normal 
income  during  readaptation, 
— Harmonization,  on the most  favourable  basis,  of 
the conditions  for the granting  of unemployment 
benefits. 
4.8. Other  members  consider  that  these  measures 
do not  take  the  autonomy  of the  two  sides  of 
industry  sufficiently  into  account.  They  recommend 
that in cases  of shortage  of work  the  situation 
should  be dealt  with  in a manner  satisfactory  to 
employers  and  workers,  according  to the  collective 
bargaining  or  other  systems  in force  in each 
country,  including  consideration  of sharing  out 
equally  the  total  working  time  available  and  other 
measures  to ensure  maintenance  of the level  of earn-
ings to the extent  practicable. 
4.9. A  point  in favour  of the  abovementioned 
investigation  is that  it would  gauge  the public  autho-
rities'  knowledge  of the  employment  situation  and 
gaps  in such  knowledge,  and  show  the  reasons  for 
the gaps  and  the  measures  to be taken  to remedy 
them. 
4.10.  The  Commission  could  undertake  to submit 
a report  on this  matter,  and  propose  an initial  series 
of measures  in accordance  with  proposals  II (1) and 
III (3) of the Social  Action  Programme. 4.11.  The  Committee  considers  that  the  Member 
States  should  take  all possible  action  to ensure  that 
public  employment  services  are  aware  of vacant 
posts  in companies,  staff  turnover,  expected  dismis-
sals, skills  in demand  and  other  data  required  for 
formulating  a dynamic  employment  policy. 
4.12.  The  Committee  points  out  that  it has  come 
out in favour  of managements  providing  employees 
with  full  information  on employment;  work  organi-
zation  and  training. 
4.13.  Some  members  recommend  that  either  (i) 
an outline  collective  agreement  be  concluded 
promptly  in Europe  between  employers'  associations 
and trade  unions,  or (ii) the Council  issue  a Direc-
tive on information  concerning  employment  to be 
given  to workers  and  their  representatives  in under-
takings. 
4.14.  First  and  foremost,  the  Commission  must 
concern  itself  with  the steps  required  at Community 
level  to ensure  that  employment  is maintained. 
4.15.  In  this  respect  consideration  must  be given 
to providing  special  protection  for the most  vulner-
able workers,  viz.  migrant,  female,  young  and 
elderly  workers. 
4.16.  The  status  of migrant  workers  in the highly 
industrialized  countries,  and  in Western  Europe  in 
particular,  is becoming  one  of the  major  problems 
of our  time.  These  workers  must  not  be the victims 
of measures  changing  the employment  situation. 
4.17.  Governments  must  endeavour  to regularize 
the situation  of migrant  workers  who  are  illegally 
employed. 
4.18.  The  vast  majority  of migrant  workers  are 
more  directly  threatened  by a downturn  in activity 
because  of the low  level  of their  skills  or qualifica-
tions. 
4.19.  What  is required  in the  future  to meet  the 
difficulties  of this  category  of workers  are language 
and vocational  training  courses  which  should  be 
largely  based  on  a system  of paid  release  from 
work. 
4.20.  The  Committee  will  examine  very  carefully 
the Commission  proposals  on the  subject  in imple-
mentation  of the Social  Action  Programme. 
4.21.  As  regards  young  people  and  women,  stress 
should  be laid  on the  greater  difficulties  encoun-
No C 109/56 Official  Journal  of the  European  Communities 19. 9. 74 
tered  by the  former  in entering  working  life  and  by 
the latter  in keeping  their  jobs. 
4.22.  With  a view  to improving  employment  pros-
pects  for young  workers,  both  male  and  female,  the 
Committee  advocates  stepping  up measures  aimed 
at better  guidance  for  young  people  and  a compre-
hensive  system  of vocational  training  which  takes 
anticipated  demand  into  account.  Job  opportunities 
must  also  be increased.  The  Committee  would  point 
out further  that  when  workers  have  to be dismissed 
a system  of  voluntary  early  retirement  for 
employees  close  to retiring  age  might  be an appro-
priate  way  of saving  the jobs  of younger  workers.  It 
thinks  it necessary  that  a study  be made  at the most 
suitable  level  of how  such  a scheme  for  voluntary 
early  retirement  could  be introduced. 
4.23.  National  and  Community  authorities 
should  adopt  measures  to foster  expansion  which  is 
geared  to satisfying  social  and  communal  needs. 
4.24.  Allocation  of public  and  private  funds  to 
this end,  particularly  in  public  sector  housing, 
urban  development,  regional  planning,  health,  educa-
tion and  mass  transport,  both  public  and  private,  in 
which  fundamental  changes  are  to be  expected, 
would  have  the  advantage  of ensuring  work  for  a 
large  number  of people. 
4.25.  The  research  which  industry  and  public 
authorities  will  certainly  carry  out  on the  use  of 
new energy  sources  will  lead  to new  vocational  qual-
ifications.  Steps  must  be taken  now  to ensure  that 
workers  receive  the requisite  training. 
4.26.  In  this  connection  rational  and  democratic 
use of the  various  European  funds  calls  for  the introduction  of an effective  system  of consultation 
at all levels  of social  life. 
4.27.  The  present  situation  also  underlines,  the 
need  to  increase  the  resources  of the  various 
existing  and  future  European  funds  (European 
Social  Fund,  Regional  Development  Fund). 
4.28.  The  economic  outlook  makes  it more 
urgent  that  certain  steps  be taken  swiftly  at Commu-
nity level,  particularly  as regards  mass  dismissals. 
The Committee  will  closely  examine  the  proposals 
presented  by the  Commission  on the  activities  of 
temporary  employment  agencies. 
4.29.  The  Committee  trusts  that  the  Standing 
Committee  on Employment  will  soon  resume  work. 
4.30.  The  Committee  appeals  to the  responsible 
authorities  not  to take  isolated  measures  whose 
effects  could  not  but  run  counter  to Community 
objectives  and  be detrimental  to employment. 
4.31.  The  Committee  could  hardly  advise  the 
responsible  institutions  of the  European  Compuni-
ties to work  together  to resolve  the  numerous 
problems  we  are  faced  with  here  if the  economic 
and social  groups  represented  in it were  not  doing 
the same  in the  areas  which  directly  concern  them, 
because  of the present  circumstances. 
Done  at Brussels,  30 May  1974. 
The Chairman 
of the 
Economic  and  Social  Committee 
Alfons  LAPPAS