WRITTEN QUESTION E-2779/99

by Alexandros Alavanos (GUE/NGL) to the Commission

(18 January 2000)

Subject: Assistance for MISKO company workers forced to relocate

MISKO, the pasta-producing subsidiary of the Italian company Barilla, has received funding under Greek development law 1892/90 to set up a new production plant at Thiva on condition that it maintains the present number of 275 permanent jobs.

Before completing construction of the new plant, the company closed down its pasta factory in Patras, compelling the current workforce either to resign or agree to being transferred to other company plants. The workers who agree to be transferred, however, are faced with an expensive relocation bill and they are therefore forced to leave their jobs and run the risk of remaining unemployed.

Is it possible to assist these workers to cover the expense of their enforced relocation? Which programmes and procedures may be used to provide such assistance?

Supplementary joint answer to Written Questions E-2778/99 and E-2779/99 given by Mrs Diamantopoulou on behalf of the Commission

(23 February 2001)

Under Council Directive 94/45/EC of 22 September 1994 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(1), the central management of the undertaking or group of undertakings at Community level is responsible for putting in place the necessary conditions and resources for setting up a works council or a transnational information and consultation procedure for employees. It can either do this on its own initiative or at the written request of at least 100 employees from at least two different Member States.

In other words, the Directive does not stipulate that these mechanisms should be created automatically; it merely grants employees the right to call for such mechanisms to be set up.

Having submitted an initial request of this kind, a special negotiating body will be set up; it will be composed of representatives of employees from all the undertakings and organisations which are members of the group of undertakings. The representatives should be elected or appointed according to criteria relating to geographic distribution and proportional representation according to the number of employees in each Member State.

The main task of this special negotiating body is to negotiate and conclude an agreement with the central management on the setting up and mode of operation of a European works council or of an alternative information and consultation procedure.

According to the information supplied to the Commission, it would appear that a European works council has not yet been established for Barilla. Negotiations are currently under way and it would seem that these are likely to result in an agreement being signed in the near future.

Finally, it should be noted that as regards collective redundancies and the acquired rights of employees in the event of transfers of undertakings, covered by Council Directive 98/59/EC of 20 July 1998 on the approximation of the laws of the Member States relating to collective redundancies(2), and Council Directive 77/187/EEC of 14 February 1977 on the approximation of the laws of the Member States relating to the safeguarding of employees' rights in the event of transfers of undertakings, businesses or parts of businesses(3), amended by Council Directive 98/50/EC of 29 June 1998(4) respectively, the Community provisions applicable in this case are transposed by national law.

Co-funding of comprehensive measures to prevent and combat unemployment, particularly as regards companies undergoing restructuring, could be considered under the European Social Fund (ESF). This could be done as part of the Operational Programme (OP) of the 3rd Community Support Framework for Greece, which is currently being drawn up, particularly the Employment Promotion and Continuing Training OP. In this event, the Greek authorities should devise and submit a relevant integrated plan in accordance with Regulation (EC) No 1262/1999 of the Parliament and of the Council of 21 June 1999 on the European Social Fund(5) and the rules on State aid.

(1) OJ L 254, 30.9.1994.

(2) OJ L 225, 12.8.1998.

(3) OJ L 61, 5.3.1977.

(4) OJ L 201, 17.7.1998.

(5) OJ L 161, 26.6.1999.