Resolution on relocation of companies within the EU
Date: 1995-09-21
Institutions: European Parliament
Subjects: EU aid, European social policy, Portugal, application of EU law, cessation of trading, collective dismissal, fraud, multinational enterprise, transfer of businesses, worker consultation, worker information













EUR-Lex - 51995IP1123 - EN






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51995IP1123

Resolution on relocation of companies within the EU  


Official Journal C 269 , 16/10/1995 P. 0172 





B4-1123, 1135, 1146, 1177 and 1182/95Resolution on relocation of companies within the EUThe European Parliament,- having regard to its resolution of 17 February 1995 on relocation of businesses in the European Union (( OJ C 56, 6.3.1995, p. 197.)),- having regard to the relevant legislation on social policy in the European Union and, in particular, 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, 30.9.1995, p. 64.)),- having regard to the protocol on social policy attached to the EC Treaty,- having regard to the Community Charter of the Fundamental Social Rights of Workers and the accompanying social action programme (1989),A. having regard to the adverse economic and social consequences of the company relocation strategies adopted by a number of industrial groups,B. whereas businesses, particularly in Objective 1 regions of the Community, are receiving financial aid,C. whereas, in many cases, these groups have received direct or indirect financial assistance from Member States and the Community itself; whereas Renault in Portugal has benefited from national and Community subsidies totalling 77 billion escudos,D. having regard to Articles 2 and 118 of the EC Treaty,E. reiterating its wish for social clauses to be included in international agreements and in the framework of the World Trade Organization,F. whereas, in view of the ever-increasing internationalization of businesses in the Union, European firms should preferably choose to locate their investments in Union Member States, aiming for a rational division of labour at European level,G. whereas a large number of such decisions are taken by the parent company without consulting management boards, works councils or trade unions, thus contravening the Social Charter and the social protocol,H. whereas Renault Portuguesa has turned out to be a great Portuguese success story, as evidenced by its high productivity and the excellent quality of the products manufactured in its factories, which are acknowledged to be among the best made by the Renault Group, and, above all, by the substantial profits it has recorded since reaching 'cruising speed' in 1985, these being the best evidence of its triumph,I. whereas over 700 jobs are under threat at Renault's car assembly plant in Setúbal, following the breakdown of talks between Renault and the Portuguese Government; whereas, as a result of this strategy, there is an imminent prospect of mass redundancy of those workers remaining from previous redundancies, with extremely serious repercussions for the regional economy, to which would be added the indirect impact of the loss of services provided by and orders for subcontracting companies, most of which are SMEs set up in response to the project and dependent on it,1. Expresses its solidarity with all the workers in the Renault plant in Setúbal who are threatened directly by the closure of the plant and with all the people in other plants belonging to the group as well as subcontractors who may be affected;2. Calls on the Commission to take account of this case during the debate on the directive relating to the safeguarding of employees' rights in the event of transfers of undertakings, businesses or parts of businesses;3. Reminds the Commission once again of Parliament's request of 27 October 1994 for a survey to be provided of all relocations of firms within and outside the EU since January 1993;4. Calls on the Commission and the Member States to urge multinational corporations to refrain from taking decisions which may have harmful consequences for employment without first informing and consulting workers in accordance with Directive 94/45/EC, considering all possible alternative solutions and taking maximum account of social measures in the interest of workers;5. Calls on Renault to implement the Directive on works councils without awaiting the deadline of 22 September 1996, to ensure that employees, and particularly the workers in Portugal, may be informed and consulted;6. Calls on the Commission to examine what forms of subsidy, both at national and at Community level, the above-mentioned firm has received and to work out proposals in the short term aimed at preventing all forms of 'subsidy shopping' both within and outside the EU;7. Expects the Commission to ensure that, when Structural Fund resources are allocated, employment guarantees are combined with the allocation;8. Calls for EU subsidies to be unavailable for companies which, having benefited from them in one Member State, go on to relocate soon afterwards to another state;9. Urges the Commission to take into account the latest developments regarding the Setúbal plant in its deliberations on relocation both within and outside the European Union, particularly the social and economic consequences for the regions concerned;10. Urges the Commission, in the light of this case, to review any subsidies already being granted or about to be granted anywhere for projects to which Renault may be a party;11. Calls on the Commission to submit a revised draft following the findings of the hearing held by the Committee on Social Affairs and Employment on the relocation of businesses;12. Instructs its President to forward this resolution to the Council, the Commission, the parliaments of the Member States, the social partners and the workers of the Renault plant in Setúbal, and to have it published in at least two Portuguese national daily newspapers.