WRITTEN QUESTION E-3665/00

by Luciana Sbarbati (ELDR) to the Commission

(27 November 2000)

Subject: Safeguarding jobs in firms which have been beneficiaries of state and Community aid

Under the provisions of Article 136 of the EC Treaty, the Member States should aim to promote employment, improve living and working conditions, offer social protection and establish dialogue between management and labour with a view to lasting high employment and the combating of exclusion. These objectives are also included in the 1989 Community Charter of the Fundamental Social Rights of Workers.

However, in Europe, despite Parliament's adoption last year of a number of resolutions for the benefit of workers, firms which are in no economic difficulty but which, in several cases, have doubled their shareholders' profits (most recent cases include Renault Vilvoorde, Michelin, Goodyear, Carrier, Miliani and Telecom), are increasingly resorting to mass redundancies and lay-offs. Their strategic market-oriented decisions (relocation, restructuring plans, privatisation etc.) are proving to be socially irresponsible and are penalising particularly the weaker categories, such as older workers and women.

This kind of approach should not be allowed in firms which have received state aid (tax relief, access to special funding, employment incentives, etc) and have benefited from European funds.

In the light of Directives 75/129/EC(1) (as amended by Directive 92/56/EC(2)) on the approximation of the laws of the Member States relating to collective redundancies and 94/45/EC(3) 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, not to mention the Commission proposal on a general framework for informing and consulting workers, what measures does the Commission intend to take in order to oblige firms to act in a way conducive to employment?

(1) OJ L 48, 22.2.1975, p. 29.

(2) OJ L 245, 26.8.1992, p. 3.

(3) OJ L 254, 30.9.1994, p. 64.

Answer given by Mrs Diamantopoulou on behalf of the Commission

(21 February 2001)

In keeping with the responsibilities conferred upon it by the EC Treaty, the Commission seeks to ensure that Community legislation is properly applied, including the directives mentioned by the honourable member and the rules on state aid.

It should, however, be pointed out that it is primarily the responsibility of the national authorities to ensure compliance with the national provisions transposing the directives on informing and consulting employees.

The Commission feels that the rapid adoption of its Proposal for a Council Directive establishing a general framework for informing and consulting employees in the European Community(1) would facilitate concerted efforts on the part of the social partners to restructure companies and would, in general, promote the process of change and the adaptation of European industry to changing market conditions.

With regard to state aid, only certain categories of aid (particularly employment and regional aid) may be contingent on the creation or maintenance of jobs. By contrast, other types of aid, particularly rescue and restructuring aid, may require the company concerned to make staff redundant so that it remains viable and the remaining employees can be kept on. Aid of this kind can be accompanied by aid to promote training measures, advice and practical help for finding a new job, retraining and vocational training and assistance for workers wishing to embark on a new career. The Commission systematically delivers a favourable opinion on measures of this kind.

(1) OJ C 2, 5.1.1999.