WRITTEN QUESTION P-1208/02

by Yves Butel (EDD) to the Commission

(22 April 2002)

Subject: Industrial relocation

In response to the problems encountered by the Member States regarding unemployment, the EU has created a number of instruments for the achievement of full employment (e.g. the European employment strategy and employment guidelines, the European Social Fund and the EQUAL initiative).

Complementarily to the impact of globalisation, leading to the relocation of production in the developing countries and the least developed countries, and the need to conquer new markets, the Member States are now faced with unfair industrial competition from the applicant countries. A current example is that of the Whirlpool company, which is planning to transfer part of its activity from Amiens (France) to Poprad (Slovakia). This transfer would mean 360 direct job losses; in addition, the introduction of subcontracting would lead to the disappearance of a further 150 jobs.

European integration must be carried out in the interests of the well-being of our peoples, and one of our priority objectives should be the creation, not the transfer, of wealth. Far from setting existing Member States against applicant countries, the aim should be to ensure job preservation in the former and economic development in the latter.

What action does the Commission intend to take to achieve this twofold goal of preserving existing economic activity, and therefore employment, and creating new forms of economic activity? What action will it take to place limits on the excessive mobility practised by enterprises in the Member States? Is the Commission granting aid, especially financial aid, for enterprises from the Member States setting up production in the applicant countries?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(3 June 2002)

The concept of free and open market economies lies at the very heart of the Union and features as one of the criteria for membership of the Union outlined at the Copenhagen European Summit in December 1993.

The European Social Model is founded on the premise that economic growth and social cohesion are mutually reinforcing and that the right balance needs to be struck in order to ensure the dynamic interaction of economic, employment and social policy. Experience has proved that intensified economic exchange and cooperation leads to positive results for all involved, contributing to economic prosperity and the creation of new and more employment.

As regards relocation of enterprises in general, the Commission advocates the idea that, when taking decisions, enterprises should always take into account the effects that those decisions could have on their employees as well as on the social and regional context. This has recently been underlined in the Commission Green Paper on Corporate Social Responsibility(1) (CSR). CSR means that an enterprise is accountable for the impact it has on all relevant stakeholders. It concerns the continuing commitment by business to behave fairly and responsibly and to contribute to economic development while improving the quality of life of the work force and their families as well as of the local community and society at large.

It is evident that the social partners play a crucial part in this context. That is why the Commission aims to develop the social dialogue within candidate countries by encouraging social partners to improve their coverage and representativeness and to develop a genuine partnership approach as well as the institutions and structures needed to implement it. Equally governments must recognise social dialogue as an important part of the acquis communautaire and therefore as something to be actively promoted, for example by giving the social partners the necessary autonomy to engage in independent collective bargaining, or by facilitating their participation in social dialogue at the European level.

Aid schemes managed by the Commission exclude support for relocation of industrial production from the present Member states to candidate countries.

(1) COM(2001) 366 final.