B4-0966, 0977, 0999, 1005 and 1038/95

Resolution on relocations and job losses in the European Union, with particular reference to Lee Europe in Ypres

The European Parliament,

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

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

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

- having regard to its numerous resolutions in the field of social affairs, which raise questions concerning the arbitrary relocation of enterprises both within and outside the Union, accompanied by an analysis of the reasons for relocation and an assessment of the economic and social consequences for the regions concerned,

- having regard to Directive 75/129/EEC, as amended by Directive 92/56/EEC, on the approximation of the laws of the Member States relating to collective redundancies ((OJ L 48, 22.5.1975, p. 29 and OJ L 245, 28.8.1992, p. 3.)),

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

- having regard to the declaration on international investment and multinational undertakings by the governments of the member states of the OECD and the code of conduct of the ILO,

A. whereas the rights of workers are increasingly threatened in the European Union, particularly the fundamental right to employment and trade union rights,

B. greatly concerned by the announcement of social plans with redundancy programmes by many firms in the European Union and by the increasing number of business relocations involving job losses,

C. whereas it is one of the fundamental rights of workers to be informed and consulted about the management policy of their enterprise,

D. having regard to the growing number of decisions by transnational corporations on relocation or closure of branches, one motive for which appears to be maximization of profits at the expense of local employment, caused partly by the major differences in investment support and other subsidies between regions and Member States,

E. whereas many such decisions are taken by parent companies without consulting management boards, works councils or trade unions, which contravenes the Social Charter, the Protocol on Social Policy, Directive 94/45/EC and the codes of conduct of the OECD and the ILO,

F. concerned more particularly at the closure of enterprises such as the Ypres plant of Lee Europe, the subsidiary of the Pennsylvania-based US jeans producer, where 480 workers are being made redundant overnight and the relocation of Lufthansa Technik to Shannon, at the expense of 300 employees and millions of German marks already paid in restructuring subsidies, encouraged by the lure of 12 million pounds in Irish subsidies,

G. whereas similar decisions by several industrial concerns to switch production to other countries have resulted in widescale redundancies, particularly in the textile and clothing, electronics, footwear and automobile sectors, including the service sector,

H. whereas Lee Europe in Ypres was not loss-making, having made more than 200 million Belgian francs in profits in the past two years; whereas the decision to close it was influenced by external economic considerations ('relocation'),

1. Expresses its complete solidarity with the 480 employees who have been made redundant as a result of the closure of the plant;

2. Is concerned at the massive job losses in the European textile industry, in which, for example, more than 50 000 jobs have been lost in Belgium alone in the past 20 years;

3. Considers it unacceptable that a transnational enterprise can simply make 480 employees redundant without prior consultation;

4. Reiterates its desire for social clauses to be incorporated in international agreements and in connection with the World Trade Organization;

5. Points out that Lee's decision contravenes the international codes of conduct of the ILO and the OECD;

6. Urges the Commission finally to comply with the request made in its resolution of 27 October 1994 on employment and social rights in the European Union ((OJ C 323, 21.11.1994, p. 162.)) for a breakdown of all relocations since 1 January 1993, accompanied by an analysis of the reasons for relocation and an assessment of the economic and social consequences for the regions concerned;

7. Calls on enterprises to inform their employees before carrying out reorganizations;

8. Calls on the Commission and Member States to urge Community-scale corporations not to take decisions which adversely affect employment and about which employees have not been informed and consulted in advance and which are not accompanied by a credible retraining plan, in accordance with Directive 94/45/EC;

9. Calls on the Commission to refuse assistance from Community programmes to businesses which fail to comply with the obligations referred to in paragraph 8 or which abuse investment subsidies;

10. Calls on the Commission to inform trade union organizations and works councils on the Structural Fund assistance received by firms;

11. Calls on the Commission to develop an institutional basis for social dialogue on structural change and its consequences in the European textile industry and other industries concerned and to propose solutions;

12. Calls on the Commission to submit a proposal for a Directive on the information, consultation and codetermination rights of employees in enterprises with more than 50 employees, so that workers' rights can be safeguarded more effectively and workers are not taken by surprise by sudden closures as in the case of Lee Europe;

13. Calls on the Commission to ascertain what forms of support, both national and Community, the above-mentioned enterprises have received and rapidly to draw up proposals to combat all forms of 'subsidy shopping' within the Union;

14. Calls on the European authorities and the governments of the Member States more effectively to combat social dumping, which truly distorts competition;

15. Notes with sympathy the steps which have been taken to boycott Lee Europe;

16. Instructs its President to forward this resolution to the Commission, the Council, parliaments of the Member States and the social partners.