WRITTEN QUESTION P-3402/98

by Catherine Lalumière (PSE) to the Commission

(9 November 1998)

Subject: Possibility for the European Union of Association for Craft and Small and Medium- Sized Enterprises (UEAPME) to participate in European consultations between management and labour as a fully fledged social partner

SMEs and craft trades constitute the vital fabric of the European economy, accounting for 99,8 % of all European Union firms. They provide 68 million jobs, i.e. a growing share (some 72 %) of total employment in the European private non-primary sector. SMEs therefore make a major contribution to creating wealth and jobs.

Under the rules governing the arrangements for dialogue between management and labour (Article 4 of the Social Protocol), however, the main organisation representing craft trades and SMEs, covering 9 140 000 firms and some 50 million workers, is debarred from the structures for negotiations, which are conducted exclusively between three organisations (UNICE, CEEP and the ETUC).

This situation sidelines a very large proportion of SMEs, which are refused the right to participate in European consultations between management and labour. Furthermore, the present procedures do not appear to observe ILO Conventions 87 and 98 on the principle of the right to negotiate.

The Court of First Instance recently dismissed UEAPME's action, asserting that, "having regard to the provisions of the Agreement, the applicant cannot claim to possess either a general right to participate in the negotiation stage of the second procedure provided for by the Agreement or, in the context of this case, an individual right to participate in negotiation of the framework agreement".

That response - whatever its basis may be in law - is politically far from satisfactory. The present practise is harmful to the smooth operation of the European social model, which requires democratically informed dialogue between management and labour.

What action could the Commission take to resolve this dilemma?

Answer given by Mr Flynn on behalf of the Commission

(3 December 1998)

The Commission considers that small and medium sized enterprises (SMEs) have a key role to play in contributing to the creation of wealth and jobs in the Community.

The Commission has to ensure that the signatories to an agreement, which is to be transposed into Community legislation, are sufficiently representative in relation to the scope of the agreement. The Commission must respect the autonomy of the social partners as regards the choice of negotiating partners, and thereafter during the negotiations. As regards consultations, both the Commission and the Council indeed have responsibility to ensure that these are as representative as possible. The Court of first instance has recently supported this approach in a landmark judgement(1). These principles underpin the Commission's communication on adapting and promoting the social dialogue at European level(2) which included proposals to improve the working of the social dialogue.

In consultations, the four main organisations representing SMEs, the European Union of crafts and small and medium-sized enterprises (Ueapme), Eurocommerce, the Union of industrial and employers' confederations of Europe (Unice) and Copa (comité intersyndical des organisations professionnelles du personnel artisanal), have always been represented in consultation procedures initiated by the Commission. They have not all, however, been invited to the meetings between the social partners and Troika and Heads of State and government as initiated at the Luxembourg European Council on employment in November 1997. Given this omission and the need to improve the current structure for the standing committee on employment, the Commission adopted in parallel to the communication a proposal to the Council to reform the standing committee. This proposal would enlarge the social partners' participation in these important Troika meetings, to include also Ueapme, Eurocommerce and Copa on the employers' side. In short the Commission proposes to the Council the creation of a single, transparent and representative forum for high-level dialogue on employment2.

As for negotiations, in its communication the Commission urges the social partners to seek political compromise to ensure that their dialogue is as effective as possible and attracts widespread support by ensuring optimum representation. This message, which is in line with the position of the Parliament on the green paper which preceded the communication, has led to a discussion between Unice and Ueapme on the possibility for the latter to take part in all the relevant joint-action and negotiation processes within the European social dialogue. This discussion seems to be close to a positive solution, which the Commission would whole heartedly welcome.

(1) Judgment of 17 June 1998, Ueapme v Council (case T-135/96), Rec. 1998).

(2) COM(98) 322 final.