WRITTEN QUESTION E-0185/99

by Carlos Carnero González (PSE) to the Commission

(11 February 1999)

Subject: Inquiry into the Agreement on Stability and Quality in Employment which was concluded in 1997 by the Madrid Regional Government and the CCOO and UGT trade unions

A few days ago it was reported in the Spanish media that, in response to an initiative launched by a number of business organisations, the Commission had opened an inquiry into the Agreement on Stability and Quality in Employment which was concluded in 1997 by the Madrid Regional Government and the Comisiones Obreras and Unión General de Trabajadores trade unions. At the time the agreement was welcomed by the main political parties and most sections of the general public.

Can the Commission confirm that such an inquiry has been opened?

If so, does the Commission believe that the agreement could be contrary to some of the principles on which the functioning of the single market is based and, if such is the case, for what reasons?

Is the Commission aware that, at the appropriate time, the agreement was approved by the Spanish Council of State?

Does the Commission not consider that, as a general rule but especially in countries such as Spain and regions such as Madrid where unemployment rates are high, the fight against unemployment should be one of the tasks of all governments and, of course, of the social partners?

Does the Commission agree with the view that one of the European Union's objectives should be to create proper permanent jobs?

Does the Commission also consider it to be incumbent on the public authorities to promote the integration, into society and the working environment, of disadvantaged groups such as people with physical or mental disabilities?

Does the Commission not consider the agreement signed in 1997 between the Madrid Regional Government and the trade unions to be in line with the points made in the preceding three paragraphs and also to contribute towards the establishment of the social Europe which is such a necessity?

Answer given by Mr Flynn on behalf of the Commission

(9 April 1999)

After receiving a complaint, the Commission contacted the Spanish authorities to obtain information on the draft decree by means of which the Autonomous Community of Madrid was intending to implement the "Framework Agreement on Stability and Quality in Employment" and on a number of invitations to tender issued by the same Autonomous Community. The Commission's letter alerted the Spanish authorities to the problems which adopting the decree might give rise to, with regard to Community law. It also referred to the provisions of the Directives on the coordination of public contract procedures, especially contract award criteria.

The draft decree in question (subsequently adopted as Decree 213/1998 of 17 December) obliges the Madrid administration and the bodies answerable to it to take account of the creation or safeguarding of permanent jobs as a criterion for the awarding of public contracts. This criterion will in all cases carry a weighted value of 20 %. In the context of completion of the single market, the aims of Community directives on public contracts include ensuring compliance with the principles of non-discrimination and equal treatment, as well as achieving sounder management of public resources by a better quality-price relationship in public purchasing. To this end, the directives provide for contract award criteria which take account of the features of specific bids; price may be the sole criterion, or there may be a combination of criteria which varies depending on the contract in question. In these circumstances it is difficult to accept award criteria based on the structure of the undertaking rather than the quality of the bid. Nevertheless, there is nothing to prevent inclusion in the contract specifications of performance conditions relating to respect for social obligations, provided such conditions do not discriminate against tenderers from other Member States. The directives also allow applicants who do not comply with social legislation to be excluded.

The Commission does indeed feel that an agreement of this nature could be contrary to the principles associated with the internal market.

The conclusions of the Presidency of the Vienna European Council of 11-12 December 1998 reconfirm that "employment is the top priority of the European Union".

Subsequently, the 1999 employment guidelines have been formally adopted by a Council resolution of 22 February 1999. In paragraph 16 of these employment guidelines, the Council invites the social partners to negotiate at all appropriate levels agreements to modernise the organisation of work, including flexible working arrangements, with the aim of making undertakings productive and competitive and achieving the required balance between flexibility and security.

Paragraph 9 of the 1999 employment guidelines states that each Member State will give special attention to the needs of the disabled, ethnic minorities and other groups and individuals who may be disadvantaged, and develop appropriate forms of preventive and active policies to promote their integration into the labour market. From an employment perspective those aspects of the agreement which promote employment creation should, therefore, be welcomed.