WRITTEN QUESTION E-2460/01

by Camilo Nogueira Román (Verts/ALE) to the Commission

(11 September 2001)

Subject: Sackings and transfer of industrial activity and jobs by European companies to companies in less-developed countries

The French telecommunications company Alcatel recently announced it had decided to sack 20 000 workers and close various factories in Europe, and to transfer the production processes concerned to companies in less-developed countries, so as to externalise its industrial activity while retaining its innovative, technological and commercial activity. This creates a problem to which the EU institutions cannot remain indifferent. Alcatel justifies its decision in terms of recent economic disadvantages; in other cases, companies justify mass sackings by the need to secure an immediate improvement of their stock exchange performance, an economically, socially and politically aberrant practice which is becoming evermore frequent. What political and legal instruments is the Commission applying or intending to apply to prevent or penalise such practices on the part of European companies?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(23 October 2001)

Company restructurings, such as that mentioned by the Honourable Member, fall within the scope of Community legislation, notably the directives on collective redundancies(1), transfers of undertakings(2) and European works councils(3), which lay down certain obligations in respect of informing and consulting workers' representatives in circumstances such as those described.

These directives are transposed into the national legislations of all the Member States, and it is up to the Member States in the first resort to make sure that the provisions contained therein are complied with. The Commission monitors that this is so in the last resort.

The proposal for a Directive establishing a general framework for informing and consulting employees in the European Community(4), which the Commission hopes to see adopted in the near future, will complement this framework and, in parallel with the possible forthcoming revision of Council Directive 94/45/EC (European works councils), will ensure the existence throughout the Union of appropriate provisions for giving the workforce a say in company restructurings and in handling the consequences of restructuring.

The Commission, as announced in its Communication on the European Social Agenda(5), will develop, with the social partners at Community level and with the other institutions, a Community response designed to enhance the ability to cope successfully with industrial change.

(1) Council Directive 98/59/EC of 20 July 1998 on the approximation of the laws of the Member States relating to collective redundancies OJ L 225, 12.8.1998.

(2) Council Directive 2001/23/EC of 12 March 2001 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 undertakings or businesses OJ L 82, 22.3.2001.

(3) 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 OJ L 254, 30.9.1994.

(4) OJ C 2, 5.1.1999.

(5) COM(2000) 379 final.