WRITTEN QUESTION E-0085/03

by Ilda Figueiredo (GUE/NGL) to the Commission

(23 January 2003)

Subject: Relocation of firms and unemployment

The footwear multinational C & J Clark has just announced that it is to close its factory in Castelo de Paiva, Portugal. This will cause the loss of around 600 jobs, in an inland region without any alternative employment which two years ago suffered the tragic collapse of a bridge, killing 58 people.

Two years ago, the same multinational closed another factory in Arouca, making around 400 workers redundant.

Bearing in mind the seriousness of the situation, can the Commission answer the following questions:

1. Has the multinational C & J Clark received any type of Community support in Portugal or in any other EU country?

2. What view does the Commission take of the social responsibility shown by C & J Clark, which within the space of little more than two years has sought to close two important firms, employing mostly women, located in inland areas of Portugal where it was or is the main employer?

3. What steps will it take to prevent such irresponsible action on the part of multinationals which, despite healthy order books, decide to relocate to countries outside the European Union, thereby worsening the unemployment situation and strangling development in deprived areas of inland Portugal?

Answer given by Ms Diamantopoulou on behalf of the Commission

(1 April 2003)

The firm C. & J. Clark Fábrica de Calçado, Lda. has received the following aid:

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Community Support Framework II

The firm has received support under PEDIP II and RETEX, cofunded by the European Regional Development Fund (ERDF) and the ESF, under measure 3,1 Diagnósticos e Auditorias Empresariais and measure 4.6. Acção A Acções de Demonstração Empresarial.

The aid approved amounted to PTE 136 402 283. The following amounts were paid:

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The Commission has asked the other Member States to let it know whether Clark has also received Community support there. It will keep the Honourable Member informed of the replies.

First of all, it should be pointed out that Council Directive 98/59/EC(1) concerning collective redundancies provides for information and consultation with the workers' representatives in cases where the employer is contemplating such redundancies. These consultations should be carried out in good time with a view to reaching agreement and cover, at least, ways and means of avoiding collective redundancies or reducing the number of workers affected as well as of mitigating the consequences by recourse to accompanying social measures. These measures aim, inter alia, at aid for redeploying or retraining workers made redundant.

As regards relocation of enterprises, 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 Communication concerning Corporate Social Responsibility (CSR): A business contribution to Sustainable Development(2).

Furthermore, the Commission invited the European social partners to engage in a dialogue on anticipating and managing change with a view to apply a dynamic approach to the social aspects of corporate restructuring. The social partners agreed to incorporate this issue in their recently adopted pluriannual work programme(3).

(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, p. 16.

(2) COM(2002) 347 final.

(3) Orçamento da Segurança Social.