WRITTEN QUESTION E-3362/98

by Anita Pollack (PSE) to the Commission

(16 November 1998)

Subject: Industrial change

Can the Commission explain exactly what is the "high-level Committee" on industrial change? How was it constituted, what is its brief, what is its composition, and when does it propose to submit a report?

Answer given by Mr Flynn on behalf of the Commission

(10 February 1999)

The Commission set up the high level expert group on the economic and social implications of industrial change in response to the Luxembourg European Council which took place in November 1997.

The group's mandate was to analyse industrial changes, and to make recommendations for measures or instruments which could be developed, where appropriate, or adapted from successful practices with regard to employment and economic growth. On the basis of analysis concerning the forces driving industrial change, the group was asked to examine how to anticipate change, and how to deal with change, in terms of economic and social policies, as well as to identify the impact of change on different industrial sectors, including those which may merit particular attention. The group was also asked to examine the contribution of the social dialogue and the impact of public policies (such as structural funds and state aids) on successful accommodation of industrial change.

The members of the group were selected by the Commission and included industrialists, trade unionists and former government ministers. The Chairman was Mr Pehr G. Gyllenhammar and the other members were Mr Marcus Beresford, Mr Jacques Chereque, Mr F. Wouter Huibregtsen, Mr Heinz Klinkhammer, Ms Maria João Rodrigues, Mr Bruno Trentin, and the rapporteur Mr Bernard Brunhes.

The group submitted an interim report to the Cardiff European Council in June 1998, and a final report to the Vienna European Council in December 1998.

The main recommendations of the group were that:

- companies should be encouraged to take voluntary action to emulate best practice. Legislation should be used to prevent improper behaviour;

- the social dialogue should be developed to tap its full potential at all levels;

- the Community should create a stimulating business environment by completing the single market, by developing a world class infrastructure for information society without sacrificing up-grades of the physical infrastructures, and by encouraging SMEs, with a particular emphasis on eliminating administrative barriers and facilitating access to risk capital;

- educational systems should prepare people for their integration into the economy and for a continuing process of skill adaptation through lifelong learning. A European "skills charter" reflecting labour market needs would provide career guidance in this context;

- companies should shoulder the main responsibility for the anticipation of change;

- the Commission should assist this process by creating an observatory on industrial change;

- larger companies be encourage to prepare a "managing change report";

- the Community should recognise the importance of growth sectors such as personal services and creative art and entertainment, and establish a framework stimulating their development;

- in the event of a crisis the main responsibility for action lies with the company. Government should abstain from interfering with industrial change although local authorities may intervene in a co-ordinating and mediating capacity to support the negotiation of a successful outcome;

- any company proceeding with dismissal without having taken the necessary steps to safeguard the employability to those dismissed should be barred from access to public aids;

- hidden subsidies that distort competition should be ended and other aids made fully transparent to create a level playing field.

The Commission is sending these reports direct to the Honourable Member, and to Parliament's secretariat.