Draft Council Decision amending Decision 70/532/EEC setting up the Standing Committee on Employment in the European Communities
Date: 1998-05-20
Institutions: European Commission
Subjects: EU employment policy, European social policy, social dialogue (EU), social partners, standing committee (EU)

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels, 20.05.1998 
COM(1998) 322  final 

COMMUNICATION  FROM THE  COMMISSION 

adapting and promoting the social dialogue at Commumty  level 

Draft 
COUNCIL  DECISION 

amending Decision 70/532/EEC setting up the Standing Committee on  Employment 
in the European  Communities 

(presented  by the  Commission) 

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TABLE OF CONTENTS 

1. 

INTRODUCTION 

1.1.  A new context 

1.2  Who are the social partners? 

PROMOTING  THE EXCHANGE OF INFORMATION 

ADAPTING  THE CONSULTATION  PROCEDURES 

3.1  Consultation  at cross-industry  level 
3.2  Consultation  at sectoral level 

2. 

3. 

4. 

5. 

3.3  Consultation  under Article 3 of the Agreement on Social Policy 

11 

EMPLOYMENT PARTNERSHIP 

EMPHASIZING  JOINT-ACTION AND NEGOTIATION 

5.1 

Joint action and negotiation at cross-industry  level 

17 
5.2  Joint action and negotiation  at sectoral level 
5.3  Negotiation under Article 3(4) of the Agreement on Social Policy  ...17 
18 
Implementation  of agreements concluded at Community  level 
5.4 
18 
5.4.1 
19 
5.4.2 

Implementation  by the social partners 
Implementation  through Community legislation 

6. 

NEW PROSPECTS OPEN UP 

6.1  Social dialogue and enlargement 
6.2  Developing a European  industrial  relations and partnership 

culture 

6.2.1 
6.2.2 
6.2.3 

Transnational  decentralized  dialogue 
Support to management and labour 
Supporting the European Industrial Relations  Centre 

6.3  The means for promoting the social dialogue 
6.4.  A Reflection  Process: Study Group 

20 

20 

21 

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22 

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23 

1. 

INTRODUCTION 

This  Communication  sets  out  the  means  which  the  Commission  intends  to  use  to  adapt 
and promote  the social dialogue. The purpose  is to identify  the steps that need to be taken 
to strengthen the social dialogue at European  level, make it more adaptable  and to link the 
work  of  the  social  partners  more  closely  to  the  development  and  implementation  of 
EU policies. 

European  social  dialogue  has  already  made  significant  headway,  and the  Social  Protocol, 
which  has  been  integrated  into  the  main  body  of  the  Treaty  of  Amsterdam,  gives 
considerable  powers  and  responsibilities  to  the  social  partners.  Two  important  European 
agreements, on Parental  leave and Part-time work, which subsequently  have been  adopted 
as  Directives  by  the  Council  under  the  Social  Protocol  procedure,  have  already 
been  concluded. 

Furthermore,  the  social  partners  at  all  levels  have  displayed  an  increasing  interest  in 
the  development  of  the  dialogue  at  European  level.  This  can  be  seen,  for  example, 
in  the  joint-contributions 
the 
1998 Employment  Guidelines  and  the  framework  agreement  on  Employment  concluded 
in the agricultural  sector. 

at  both  cross-industry 

levels  on 

sectoral 

and 

The role of the  social  dialogue  in tackling  key issues was highlighted  at the  extraordinary 
European  Council  meeting  on  employment  held  on 20-21 November  1997. The  need  for 
the  social  partners  to make a contribution  at all  levels  and  stages  of the  new  employment 
strategy was strongly emphasized by the European  Council. 

Closer  European  integration  and  the  inclusion  of  new  aspects  in  the  Community 
framework,  notably employment, has extended  the scope of the social partners'  activities, 
particularly  as  regards  modernizing  the  organization  of  work,  anticipating  structural 
change  and  providing  backup  for  restructuring,  adapting  terms  and  conditions  of 
employment  to  allow  for  the  development  of  new  forms  of  work,  reconciling  family  life 
and  working  life,  integrating  young  people  into  the  world  of  work  and  access  to 
vocational  training. 

The recently  adopted  Social Action Programme  1998-2000 '  seeks to take account of these 
new  challenges  and  opportunities,  in  particular  those  provided  by  the  Treaty  of 
Amsterdam.  This provides a platform  for  strengthening  social policy and gives a key role 
to  the  social  partners.  In  order  to  allow  the  social  partners  to  play  this  role  fully,  the 
Social  Action  Programme  states 
the 
present  Communication. 

the  Commission  will  bring  forward 

that 

The  Commission  adopted  in  September  1996 a consultation  Communication2  in  order  to 
gather as wide  a range of views as possible on the means to be employed  to promote  and 
developing the European social dialogue. 

COM(1998) 259 of 29 April  1998. 
COM(96)  448  final  of  18  September  1996  concerning  the  development  of  the  social  dialogue  at 
Community  level. 

During  1997  more  than  80  detailed  replies  were  received  from  employers'  and  workers' 
European  and national  organizations, European  institutions3 and from  national  authorities. 
A  European  Forum  was  held  in  the  Hague  in  April  1997  and  an  initial  synthesis  of  the 
contributions was subsequently drawn up. 

This  Communication  draws  the principal  lessons  from  this  consultation,  and  from  recent 
developments. It introduces a number of key actions in the four main fields  through  which 
the Commission  intends to adapt and promote the future  social dialogue: 

Information:  The  Commission  will  set  in place  more  efficient  channels  for  the  exchange 
of  information  with  all  the  social  partners  and  it  will  encourage  the  European  social 
partners  to  follow  up the  outcome  of  the  European  social  dialogue  with  their  affiliates  at 
national  level. 

Consultation:  The  Commission  will  replace  the  existing  structures  at  sectoral  level  by 
new more flexible  social dialogue  bodies. At cross-industry  level the advisory  committees 
will be rationalized  and the Commission will ensure that all social partners are  effectively 
consulted  on ongoing policy developments. 

Employment  Partnership:  The  Commission  will  propose  to  reform 
the  Standing 
Committee on Employment  in order to strengthen the exchange between the  Commission, 
the  Council  and  the  social  partners,  on  the  basis  of  the  Council  Resolution  on  the 
1998 Employment  Guidelines. 

Negotiation:  The  Commission  will  continue  to  encourage  the  further  development  of 
contractual relations both at cross-industry and sectoral levels. 

An important  and challenging  task  is also to encourage  the applicant  countries  to  develop 
their  own  independent  social  dialogue  structures  and  activities  and  to  assist  the  social 
partners to develop links with their counterparts  in these countries. 

With  a  view  to  promoting  and  to  improving  the  working  of  the  social  dialogue  the 
Commission  has set itself three objectives:  A more open  social  dialogue, a more  effective 
dialogue  between  the  European  institutions  and  the  social  partners,  and  the  development 
of a real collective bargaining at European level. 

See  the  European  Parliament  Resolution  on  the  Commission  Communication  "Concerning  the 
development of the social dialogue at Community  level COM(96) 448 final" of  18 July  1997 and the 
Opinion of the Economic and Social Committee on the same issue adopted  on 29-30 January  1997. 

1.1.  A new  context 

In  formulating  its  proposals,  the  Commission  has  taken  account  of  the  current  climate 
as follows: 

The recent progress in the employment  field  provides for a process of coordination 
of  employment  policies  at  European  level,  opening  up  new  areas  to  the 
Community  social  dialogue.  The  Council  Resolution  on  the  1998  Employment 
Guidelines4  makes  specific  appeals  to  the  social  partners  at  European  and 
national  level  in  relation  to  adapting  forms  of  work  and  boosting  vocational 
training.  The  National  Action  Plans  have  offered 
the 
opportunity to contribute to employment policy5. 

the  social  partners 

The EMU process and economic convergence  have progressively  made visible  the 
importance  of  the  role  of  social  partners,  not  only  in  influencing  the  local 
competitiveness  and  employment  conditions,  but  also  as  a  major  player  in  the 
achievement  of growth and an employment-friendly  overall policy mix in the Euro 
zone and in the Community. 

The  Treaty,  which  since  1986  has  conferred  on  the  Commission  the  task  of 
promoting  the  social  dialogue,  has  been  reinforced  considerably.  Under  the 
Agreement  on  Social  Policy,  the  social  partners  have  the  right  to  be  consulted  in 
advance.  What  is  more,  it  opens  up  a  genuine  bargaining  area  where  European 
social provisions can be established  on the basis of negotiations between the social 
partners.  The Amsterdam  Treaty  extends  these  arrangements  to  the  field  of  social 
legislation  which thus will be applicable to all Member States. 

European  integration  is  gaining  ground  and  because  of  the  integration  of  our  economies 
the  social  partners  are  increasingly  having to take  this  development  into  account.  Recent 
developments  connected  with  the  restructuring  of  companies  directly  concern  the 
European  social partners and they will be involved  in the discussions  on the reports of the 
new high-level  group on the economic and social implications of industrial  change6. 

1.2  Who are the social  partners? 

The  social  partners  are  different  in  nature  from  other  organizations,  like  pressure  or 
interest  groups, because of their ability to take part in collective  bargaining. In a European 
context  the  organizations  continue  to evolve. National  affiliates  continue  to join  and  new 
groups are being set up. 

Adopted  by the Council on  15 December  1997, (OJ C 30 , 28.1.1998, pp.  1-5). 
Communication  from  the  Commission  "From  Guidelines  to  Action:  The  National  Action  Plans  for 
Employment" COM( 1998) 316, adopted  on  13 May  1998. 
Set 
20-21 November  1997 (see para. 28 of the Presidency's  Conclusions). 

extraordinary  European  Council  meeting 

employment 

following 

the 

up 

on 

Given  this  situation,  the  Commission  launched,  following  the  1996  Communication,  a 
major  study  on representativeness  of the  cross-industry  and  sectoral  organizations;  a  first 
report  will  be  ready  early  next  year,  followed  by  updates  in  coming  years.  The  study  is 
being  carried  out  along  similar  lines to the first  survey  on representativeness  drawn  up in 
1992.  The  study  will  serve  as  an  important  tool  for  the  Commission  in  order  to  monitor 
the participation of organizations  in the social dialogue. 

The  Commission's  approach  to  participation  in  the  different  forms  of  social  dialogue  is 
based on the  following: 

widespread  availability  of  information  and  consultation  on  general  topics.  All 
organizations  so  requesting  are  kept  informed  of  the  Commission's  main 
initiatives and documents in the social  field; 

targeting of representative organizations  for the purposes  of the consultation  under 
Article 3 of the Agreement on Social Policy according to three criteria,  established 
in  the  Communication7  of  December  1993. The  consulted  organizations  should: 
(1) be cross-industry  or relate to specific  sectors  or categories  and  be organized  at 
European  level; (2) consist  of organizations  which  are themselves  an  integral  and 
recognized  part  of  Member  States'  social  partner  structures  and  with  the  capacity 
to negotiate  agreements, and which are representative  of all Member  States, as  far 
as  possible;  (3)  have  adequate  structures  to  ensure  their  effective  participation  in 
the consultation process; 

respect for autonomy as regards participation in negotiations. 

2. 

PROMOTING  THE EXCHANGE  OF INFORMATION 

Access  to  information  is  crucial  for  the  development  of  the  social  dialogue.  It  helps  the 
European  social partners  to keep their members up to date on matters  of direct  interest  to 
them, makes them aware of ongoing policy developments  and thus provides the  necessary 
input  for  dialogue  at  European  level.  In  return,  the  European  institutions  are  kept 
informed  of the activities and thinking of the social partners and their members. 

The respondents  to the consultative  1996 Communication  called  for  reinforcement  of the 
information  channels  and  emphasized  that  the  work  and  results  of  the  European  social 
dialogue  are  not  sufficiently  familiar  to  workers  and  employers  in  the  Member  States  -
although  their  interests  are  directly  affected.  Attention  was  also  drawn  to  the  increased 
need  for  effective  information  channels  between  the  different  players,  sectors  and  levels 
of the dialogue. 

The  Commission  has recently  put  in place  specific  information  tools  that  supplement  its 
general information  policy: 

the  Social  Dialogue  Newsletter  which  keeps  the  social  partners  abreast  of 
major  events; 

COM(93)  600  final  of  14  December  1993  concerning  the  application  of  the  Protocol  on 
Social  Policy, para. 24. 

an annual  Status Report on the social dialogue; 

an  interactive  database  with  an  electronic  network  to  which  the  European  social 
partners will be connected  on line is under  development with  Commission  support 
(European  Social Dialogue On Line, ESDO). 

The  Commission  has  also  developed  the  practice  of  quarterly  information  forums  that 
bring  together  the  social  partners  at European  level  to  discuss  and  exchange  information 
between  the  different  actors  and  types  of  dialogue  on  matters  of  current  interest.  These 
meetings  have  proven  most  useful,  in  bringing  together  the  different  strands  of  dialogue 
and by providing social partners with an overview of the ongoing developments. 

It is necessary to reinforce  the exchange of information  between  the social  partners  and to 
establish  more  effective  internal  and  external  information  channels  to  disseminate  the 
results of the European social dialogue. 

Kev  actions 

The  Commission  will  reinforce  its  current  practice  of  assembling  representatives 
of  cross-industry  and  sectoral  organizations  at  European  level  at  a  quarterly 
Liaison  Forum  for  an exchange  of information  on Community  policy  and  ongoing 
initiatives at all levels of the dialogue. 

The  Commission  will  take  steps  to  improve  the  diffusion  of  information  to  all 
European organizations representing management  and labour. 

The  Commission  will  ensure  that  the  results  of  the  dialogue  (recommendations, 
joint  opinions  and agreements)  are made known to the other  European  institutions 
and all other relevant actors. 

3.  ADAPTING THE CONSULTATION PROCEDURES 

The  consultation  procedures,  which  aim  to  improve  the  quality  of  Community  policies 
and proposals, have  developed  gradually,  responding to the  increasing  needs  for  dialogue 
with the social partners on the development of Community policy. 

The  Commission  has  consulted  the  social  partners  on  an  informal  basis  for  many  years 
and  it  continues  to  consult  all  social  partners  who  are affected  by ongoing  developments 
at  Community 
including  macroeconomic 
development  and policies. 

level  with  social  policy 

implications 

3.1 

Consultation  at cross-industry  level 

The Commission  intends to systematically consult the cross-industry  social partners on all 
important  developments  in  the  economic  and  the  social  policy  fields  and  to  ensure 
effective  participation of all social partners in the consultations. 

form  of  consultation  on  Community  policies 

Another 
the 
advisory committees8,  tripartite  fora  whose  role  is  to  advise  the  Commission  on  the 
formulation  of specific  policies and assist it in their  implementation. 

takes  place 

in 

Despite some criticism of the usefulness  of the advisory committees nowadays, a  majority 
of the  respondents  to the  1996  Communication  concluded  that  these  bodies  still  have  an 
important  role to play. It was emphasized  however that the working methods  in several  of 
the Committees could be improved. 

A  good  example  of  such  a  development  was 
the 
Advisory Committee  on  Safety,  Hygiene  and  Health  Protection  at  Work  to  revise  its 
internal  working  methods  by  reducing  the  number  of  plenary  meetings  and  electing  a 
programme committee. 

recent  decision  of 

the 

A  coherent  system  for  consultation  on  broad  social  policy  developments  should  be 
created.  The  work  of  the  advisory  committees  should  be  aligned  with  general  social 
dialogue  developments,  in  order  to  achieve  minimum  overlap  in  their  fields  of 
competence  and  to  ensure  that  the  positions  of  the  social  partners  in  the  committees  are 
coordinated  with the views expressed  in other  fora. 

There  are  currently  six  Advisory  Committees  with  the  following  subject  areas:  Social  Security  for 
Migrant  Workers,  Freedom  of Movement  for  Workers,  European  Social  Fund.  Vocational  Training, 
Safety,  Hygiene and Health  Protection  at Work and Equal Opportunities  for  Women  and Men. 

Key  actions 

The  Commission  will  develop  and  broaden  its  practice  of  consultations  on  those 
developments  in  the  social  policy  field  not  covered  by  the  formal  consultations 
under  Article  3  ASP,  for  example  on  green  papers.  It  will  involve  all  the 
representative  social  partners9  in these consultations. It will  use the  mechanism  of 
the Liaison  Forum, allowing  a choice of the most appropriate  consultation  method 
(meetings, electronic mail, etc.). 

The  Commission  will propose10,  following  the commitments  made  in the  recently 
adopted  Commission  Communication  on  an  action  plan  for  free  movement  of 
workers11,  that  the  Advisory  Committee  on  Social  Security  for  Migrant  Workers 
merge with the Advisory  Committee  on Freedom  of Movement  for  Workers. This 
meets  the  wishes  of  most  of the respondents  and  an earlier  Recommendation12  of 
the  social  partners  emphasizing  the  close  interdependence  of the  Committees  and 
the need to tighten the links between their work. 

Once  the  Amsterdam  Treaty  enters  into  force,  there  will  be  one  legal  base  for 
proposals  on  health  and  safety  at  work  and  the  legislative  proposals  in  this  field 
will  fall  under  the  process  of  consultation  of  the  social  partners.  However,  the 
Advisory  Committee  on  Safety,  Hygiene  and  Health  Protection  at  Work  will 
issues  and 
remain  a  key  body 
the Commission  will  consult 
two-stage 
consultation  process. 

for  consultation  on  health  and  safety 

in  parallel  with 

this  body 

the 

The  Commission  will,  on  a  case  by  case  basis,  adapt  where  necessary  the 
structures of the advisory committees. 

3.2 

Consultation  at sectoral level 

The  Commission  receives  input  from  the  sectoral  social  partners  on  Community  policy 
through  consultations  on  a  number  of  social  policy  initiatives  and,  in  the  sectors  where 
there is a common policy, on the formulation  and implementation  of sectoral policies. The 
sector-specific  consultations  are aimed  at improving  and harmonizing  working  conditions 
and  also,  in  some  cases,  improving  the  economic  and  competitive  position  of  the 
sector  concerned. 

9 
10 

Invited  on the basis of the annexed  list of organizations  formally  consulted  under Article 3 ASP. 
This  proposal  will  be  made  in  the  context  of  the  ongoing  amendments  to  Regulations  (EEC) 
Nos  1408/71 and  1612/68. 
See  the  Commission  Communication  uAn  Action  Plan  for  Free  Movement  of  Workers" 
COM(97) 586  final. 
See,  for  example,  the  Recommendation  by  the  European  Trade  Union  Confederation  (ETUC),  the 
Union  of Industrial  and  Employers Confederations  in Europe (UNICE), and the  European  Centre  for 
Enterprises  with  Public  Participation  (CEEP)  on  the  operation  of  the  cross-industry  advisory 
committees (June  1993). 

Calls have been made for a more effective  consultation process on specific  sectoral  issues. 
Feedback on the subject of the consultation has to be timely to make sure that the views of 
the  social  partners  are  reflected  in the  preparation  of  Community  policies  and  proposals. 
The  respondents  urged  the  Commission  to  improve  the  coordination  of  work  within  its 
departments  as far  as the consultation  procedures  are concerned;  however,  they  generally 
prefer that overall responsibility for the sectoral dialogue remain with DG V. 

Most respondents agreed with the Commission conclusion that the current  structures  often 
hinder  positive  developments.  The  Joint  Committees  and  informal  working  groups  have 
become  over-institutionalized  or  have  retained  operational  methods  which  have  outlived 
their  usefulness. 

In a number  of  industries  the  social  dialogue  is an innovation  and  is at the  start-up  stage: 
exchanging  information,  learning  about  dialogue  in  a  multicultural  context,  determining 
the  problems  peculiar  to  the  industry.  Other  sectors  have  not  taken  part  in  a  social 
dialogue as such at European  level. However,  other  forms  of consultation  or  co-operation 
including  the  social  partners  have  been  put  in  place  (for  example,  in  the  mixed 
committees  in the framework  of the ECSC Treaty). 

A  more  harmonized  approach  needs  to  be  taken  to  the  structures  supporting  the  sectoral 
dialogue  with  a  view  to  ensuring  a  more  equitable  treatment  of  the  different  sectors  of 
activity and to enable all sectors to contribute  in the most effective  and  substantial  way to 
the  development  of  the  relevant  Community  policies.  The  Commission  should  be 
prepared  to  respond  to  the  requests  of  any  sector  willing  to  make  a  significant 
joint  contribution. 

The  sectoral  social  partners  should  be  in  a  position  to  react  effectively  to  the  real 
challenges  affecting  the  sector  at  Community  level.  They  have  a  particular  potential  to 
provide  the  information  needed  to  identify  best  practice  and  initiate  benchmarking 
exercises  at European  level. They have a key role to play in the anticipation  and  handling 
of  industrial  change  in  the  Community  and  will  be  involved  in  the  discussions  on  the 
reports  of  the  new  high-level  group  on  the  economic  and  social  implications  of 
industrial  chance. 

lsx 

The  sectoral  social dialogue has been constantly  enhancing  its input  at  European  level. In 
order  for  this  development  to  continue  and  to  improve  the  input  in  quantitative  and 
qualitative  terms,  giving  an  increased  added  value  at  European  level,  it  is  necessary  to 
replace the existing structures and encourage a more efficient  dialogue. 

10 

Key action 

The Commission will establish a new framework  within which the sectoral  dialogue 
can continue  its development.  This framework  will  be applicable  on the same terms 
to all  sectors wishing to take part in social  dialogue and will  be easily extendable to 
new  sectors.  To  this  end  the  Commission  has  decided  to  adopt  a  decision  on  the 
establishment  of  new  sectoral  dialogue  committees  (see  Annex  ID,  replacing  all 
current sectoral dialogue structures. 

for  sectoral  dialogue 
The  new  committees  will  constitute 
(consultation, joint  action  and  negotiations)  and  will  be  set  up  in  all  sectors  which 
submit  a  joint  request  and  are  sufficiently  well-organized  with  a  meaningful 
European presence in line with the established criteria of representativeness. 

the  key  forum 

The  operating  procedures  will  be  streamlined:  one  high-level  plenary  meeting 
each  year,  a  restricted  social  partner  delegation,  reimbursement  for  maximum 
15 participants from  each side. 

The Commission,  through the DG most  concerned  with the  issues  on the  agenda or 
DG V, will  provide  secretarial  services; the meetings will  normally  be chaired  by a 
delegate  of  the  employers  or  employees,  but  a  representative  of  the  Commission 
will take the chair if both parties jointly ask it to do so. 

The  Commission  will  ensure  timely  and  substantial  consultation  on  sector-specific 
issues  with  important  social  implications.  Each  sector  will  be  firmly  supported 
through  a  partnership  between  DG V  and  the  other  relevant  DGs,  including 
improved technical  backup for the preparation of and follow-up  to meetings. 

3.3 

Consultation  under Article 3 of the Agreement  on Social  Policy 

On the whole, the respondents considered that the two-stage consultation  process  initiated 
under  the  Agreement  on  Social  Policy  was  working  satisfactorily  in  accordance  with  the 
procedures  laid  down  in  the  1993  Commission  Communication.  It  is  clear  that  after  the 
entry  into  force  of  the  Amsterdam  Treaty,  the  process  of  consultation  will  be  more 
important  than  today  since  it  will  cover  the  legislative  proposals  on  Community  social 
policy  and  which  is to be  adopted  in all  Member  States. All  actors  will  have  to take  their 
role in ensuring that this remains a substantial  and effective  process. 

The  vast  majority  of  respondents  were  in  favour  of  maintaining  the  current  criteria  for 
determining  which  organizations  should  be  consulted.  The  ongoing  representativeness 
study  will  provide  an  important  tool  for  the  actual  designation  of  the  organizations  to  be 
consulted  under these criteria. 

11 

Some  organizations  not  currently  consulted  would  like  to  be  involved  in  the  process. 
Furthermore,  some  organizations  believed  that  the  current  six-week  time  limit  for  each 
consultation  stage  should  be  extended,  while  other  respondents  emphasized  the  need  to 
keep to  a strict  time  limit  so as not to put  the effectiveness  of the  Community  legislative 
procedure  at  risk.  The  latter  should  also  be  borne  in  mind  with  a  view  to  the  extended 
application of the consultation procedures under the Amsterdam  Treaty. 

Key actions 

The  formal  consultation  on  proposed  legislation  in  the  social  policy  field  will 
continue  to  be based  upon the procedures  laid down  in the  1993  Communication. 
This  means  that  the  general  six-week  time  limit  for  consultations  will  be 
maintained.  The  Commission  will,  however,  be  prepared  to  adapt  the  deadline  in 
particular cases depending on the nature and complexity of the  subject. 

An  updated  list  of  the  organizations  responding  to  the  three  criteria  for 
determining  who  should  be consulted  can  be  found  in Annex  I. The  Commission 
will  revise  the  list  periodically,  taking  into  account  the  results  of  the  ongoing 
representativeness  study. 

4. 

EMPLOYMENT  PARTNERSHIP 

Tripartite  discussion  on  employment  takes  place  at  meetings  between  representatives  of 
the  social  partners,  the  Council  and  the  Commission.  The  purpose,  in  addition  to  the 
specific  priorities of each of the parties, is to determine  shared objectives. The key body at 
European  level has been the Standing Committee on Employment13, set up in  1970. 

There has been quite a lot of criticism of the operation of this Committee  as it now stands. 
Most  of  the  Committee  members  agree  that  its  operations  are  out-cf-date:  as  are  the 
membership, the working methods and the use to which its results are put. 

Moreover,  the context  for  tripartite  dialogue  at Community  level  has been  transformed  in 
recent years: 

1. 

2. 

The 
tripartite  approach  has  become  more  relevant 
Member  States involved  in the conclusion of employment pacts. 

in  a  number  of 

the 

In the recent  debates on flanking  measures  for  industrial  restructuring,  partnership 
has  been  considered  one  of  the  most 
that  should 
be promoted. 

important  approaches 

13 

Council  Decision  of  14 December  1970 (OJ L 273, 17.12.1970). 

12 

3. 

The  incorporation  of  a  new  employment  title  in  the  Amsterdam  Treaty  and  the 
application  of  these  arrangements  has  changed  the  direction  of  the  tripartite 
dialogue.  The  implementation  of  the  Employment  guidelines  and  the  monitoring 
of  their  application  raise  fresh  challenges  and  the  social  partners  will  be  called 
upon  to  take  up  positions  in  that  context.  Social  partners  will  need  to  shoulder 
their  own  responsibility  for  supporting  employment  guidelines.  This  would 
involve  a  comprehensive  approach  integrating  all  the  necessary  elements  of 
adaptability-modernization  of  the  legislative  framework,  updating  collective 
agreements  and bargaining,  new forms  of work  organization  and  the  management 
of working time. 

Furthermore,  recent  initiatives  to  encourage  new  forms  of tripartite  dialogue,  have  led  to 
an increase of fora,  in parallel to the meetings at Ministerial  level within the framework  of 
the Standing  Committee  on Employment,  where  the Council  and the  social  partners  meet 
to discuss  employment  issues, such as the meetings  between  the Employment  and  Labour 
Market  Committee  Steering  Group  and  the  social  partners,  and  the meetings  between  the 
Troika of Ministers and/or Heads of State and the social partners. 

All these  developments  and the undisputed  lack  of  efficiency  of the  Standing  Committee 
in  its  present  form  require  a  new  rationalized  process  allowing  the  social  partners  to 
contribute  in  the  most  effective  way  to  the  development  and  implementation  to  the 
Employment  Guidelines and Broad Economic  Orientations. 

Key actions 

The  Commission  proposes  to  reform  the  Standing  Committee  on  Employment14 
as  follows: 

The tasks laid down  in the Decision of  1970 setting up the Committee are still  relevant 
today:  "to  ensure  ...  that  there  shall  be  continuous  dialogue,  joint  action  and 
consultation  between the  Council, ... the  Commission  and the two sides  of  industry  in 
order  to facilitate  co-ordination  by the Member States  of their employment policies  in 
harmony with the objectives of the  Community". 

Because  it  is  called  upon  to  discuss  questions  relating  to  trends  in  employment  and 
drafts  submitted  for  discussion  within the  Council,  the Committee  is the  forum  for  the 
expression  of  general  interests  and  solidarity  across  industry.  Its  membership  should 
reflect  this approach as set out above. 

14 

In  conjunction  with  this  Communication, 
Council  Decision amending the  1970 Decision  as set out  in Annex.III. 

the  Commission  will  present  a  proposal  for  a 

13 

The  reformed  Standing  Committee  on  Employment  will  be  composed  of the  Council, 
represented  either by the troika of Heads of State or Government, or of the full  Council 
of  Ministers,  together  with  the  Commission  and  the  two  social  partner  delegations 
(eight members from  the trade union side and eight members from  the employers'  side, 
in  the  composition  set  out  below).  Following  the  conclusions  of  European  Council 
meeting  on employment  held  on  20-21 November  1997  (p. 19), the  Committee  should 
meet  before  the  meetings  between  the  Heads  of  State  and  Governments  at the  end  of 
each Presidency. 

Secondly,  the  technical  meetings  between  the  Employment  and  Labour  Market 
Committee's  Steering Group and the social partners, provided for through the statute of 
the ELC, should  also be directly linked  to the yearly process  foreseen  in the context  of 
the  Employment  Guidelines.  It  is  therefore  proposed  that  these  meetings  should  take 
place  before  the  ELC  issues  its  opinion  on  the  Commission's  Communication  on  the 
national  action plans  in the  first  half of each year  and,  in the  second  half  of each  year, 
before  the  ELC  issues  its  opinion  on  the  Commission's  yearly  update  of  the 
Employment  Guidelines. 

The  social  partner  delegations  to  the  meetings  of  the  Standing  Committee  on 
Employment  and  the  meetings  between  social  partners  and  the  ELC s  Steering  Group 
shall  include  representatives  from  the  employers'  and  trade  unions'  side,  so  that  the 
composition  of  each  delegation  covers  the  whole  economy,  includes  European 
organizations,  representing  either  general  interests  or  more  specific  interests  of 
supervisory  and  professional  staff  and  small  and  medium-sized  businesses.  The 
participants 
the  social  partner  delegations  are  UNICE,  CEEP,  UEAPME, 
EUROCOMMERCE  and  COPA  on  the  employers'  side  and  ETUC  and  CEC  on  the 
employees'  side. The delegations should be organized through liaison structures. 

to 

5. 

EMPHASIZING  JOINT-ACTION  AND  NEGOTIATION 

An active dialogue  between management  and labour  leading to shared  goals and  practical 
commitments  is the  raison  d'être  of the  social  dialogue.  This  presupposes  that  the  social 
partners  at European  level  have real  support  from  their  members,  giving  them  a  mandate 
to  negotiate  agreements  at  European  level,  as  well  as  a commitment  to  follow  them  up, 
and providing them with adequate resources and structures to be able to respond. 

Once  the  Amsterdam  Treaty  enters  into  force,  legislative  proposals  in  the  social  policy 
field  will  be  addressed  to  all  Member  States  and  be  the  subject  of  the  two-stage 
consultation  process  with  the  possibility  for  the  Commission  to  suspend  the  legislative 
process  if  the  social  partners  announce  their  intention  to  open  negotiations.  This  implies 
increased  opportunities  and responsibilities  for  the social partners at European  level  in the 
shaping of social  policy. 

14 

Furthermore, in the context of the new employment  strategy, the European Social  Partners 
at both cross-industry  and sectoral  levels have been given the opportunity to take a leading 
role in the necessary  modernization  of the labour  market.  At  its extraordinary  meeting  on 
employment  in  November  1997,  the  European  Council  made  a  strong  appeal  to  the 
social  partners  to  take  new  initiatives  at  all  levels,  in  particular  regarding  adaptability 
and employability: 

promoting  the  modernization  of  work  organization  and  working  patterns  through 
negotiation  at the  appropriate  levels, particularly  in  economic  sectors  undergoing 
structural  change,  agreements  on  work  organization  including  working  time  and 
flexible  working  arrangements  with the aim  of making  enterprises  productive  and 
competitive, and achieving the required balance between flexibility  and security; 

developing  the  social  dimension  of  the  process  of  industrial  restructuring, 
especially in the context of worker information  and consultation; 

opening  workplaces  across  Europe  for  training,  work  practice,  traineeships  and 
other forms  of employability measures; and, 

promoting  equal  opportunities  between  women  and  men,  both  in  a  wide  context 
and  on specific  initiatives  aimed  at reconciling  work and  family  life,  for  example, 
the  further  development  of  policies  on  career  breaks,  parental 
leave  and 
part-time work. 

It  is  essential  at  this  juncture  that  the  social  partners  take  up  the  new  challenges  and 
monitor  the  employment  process  in  order  to  review  all  possible  initiatives  to  modernize 
the legal, contractual  and institutional  framework  at all levels of the dialogue. 

Another  important  matter  relating  to the  negotiation  process  at  all  levels  of the  dialogue, 
which  was  raised  by  many  respondents  to  the  consultative  Communication,  was  the 
question  of  participation  and  representativeness  in  contractual  relations  at  both  cross-
industry and sectoral  level. 

The  Commission  cannot  intervene  in  the  negotiations.  It  is  up  to  the  social  partners  to 
decide  who  sits  at  any  negotiating  table  and  it  is  up  to  them  to  come  to  the  necessary 
compromises.  The  respect  of  the  right  of  any  social  partner  to  choose  its  negotiating 
counterpart  is a key element of the autonomy of the social partners. 

At  the  same  time  it  is  crucial  that  the  social  partners  at  both  cross-industry  and  sectoral 
level find the best ways to maintain the dynamic character of their dialogue, allowing  it to 
continue to develop towards greater co-operation  and openness in order for  it to be able to 
play  an even  more  constructive  role  by ensuring  optimum  representation.  Such  a  process 
is necessary  in  order to  make the  results  of the  social  dialogue  widely  acceptable.  In  this 
context  the  Commission  would  stress  that  the  current  situation  is  jeopardizing  future 
developments  and that a political  solution is needed to prepare the ground for the  future. 

15 

5.1 

Joint action  and negotiation  at cross-industry  level 

The  cross-industry  dialogue  has  secured  a  strategic  place  in  the  development  of  social 
policy: the social partners have created an important  locus for dialogue and  interaction. 

The most active dialogue  at cross-industry  level has in recent years taken place within the 
Social  Dialogue  Committee  where  the  three  cross-industry  organizations  of  general 
vocation,  UNICE,  CEEP  and  the  ETUC,  conduct  their  autonomous  dialogue.  This  has 
also  developed  into  the  forum  through  which  they  communicate  the  results  of  their 
dialogue to the  Commission. 

The  organizations  taking  part  in the  Social  Dialogue  Committee  recently  stated  that  they 
intend  to  focus  their  autonomous  dialogue  in this  forum  on their joint-contribution  to the 
employment  process. Working  groups  have  been  established  to consider  certain  issues  in 
depth.  Several  joint-opinions,  joint-declarations  and  working  documents  have  been 
prepared within the Education and Training, Labour Market and Macroeconomic  Working 
Groups. It is vital  that the  social  partners  at European  level  develop  and  consolidate  their 
autonomous  dialogue  to  contribute  to  the  key  issues  with  a  view  to  creating  European 
Frameworks  for  social partner action at national  level. These can cover, most  importantly, 
the  promotion  of  employability  and  adaptability,  including  lifelong  learning  issues  and 
information  and consultation of workers. 

In  the  framework  of  the  strengthened  economic  policy  coordination  called  for  by  the 
European  Council  at  Amsterdam, 
the 
it  should 
macroeconomic  group  of  the  Social  Dialogue  Committee  whether  it  is  possible  to  find 
operational  modalities  for  building  bridges  between  the  major  players  determining  the 
macroeconomic  mix in the EMU. 

in  particular  be  examined 

in 

It  is  also  very  important  to  acknowledge  the  fact  that  a  new  configuration  of  the 
cross-industry  social  dialogue has been  gradually  developed  since UNICE,  CEEP  and  the 
ETUC  came  forward  to  establish  the  Val  Duchesse  dialogue  in  1985.  Although  it  was 
stressed  in the responses  that the  mutual  recognition  of the parties  and the respect  for  the 
informal  and  voluntary  nature  of  this  dialogue  has  been  a  key  to  its  success,  several 
organizations  claimed  a place  alongside  UNICE,  CEEP  and  the  ETUC  at the  negotiating 
table. A large number of respondents emphasized that to make the cross-industry  dialogue 
richer  and  to  have  its  results  more  widely  spread  and  acceptable  to  all  interested  parties, 
an opening up of the dialogue to other organizations  is important. 

In  order  to  permit  it  to  build  upon  its  achievements,  the  Commission  will  continue  to 
support the cross-industry  social dialogue. The Commission  is aware of the importance of 
SMEs  for  employment  and  their  role  in  job  creation;  their  specific  concerns  and  the 
opportunities  they  provide  must  be  taken  into  account.  The  Commission  makes  a  strong 
appeal  to  the  social  partners  to  take  the  necessary  steps  to  ensure  that  their  dialogue 
remains strong and continues to attract widespread  support. 

16 

5.2 

Joint action and negotiation  at sectoral level 

tov 

The sectoral  level  is a very important  area for development  both on general  issues such as 
employment,  industrial  change and a new organization  of work and on upcoming  specific 
demands  on  the  labour  market.  The  development  of  negotiations  at  sectoral  level  is 
therefore  a key issue. 

There  was  general  agreement  among  the  respondents  that  the  sectoral  dialogue  provides 
for  an effective  level  of  intervention  on the  questions  of  employment,  work  organization 
and the  improvement  of working  conditions  as it  is closest  to  grass roots  and  best  able to 
anticipate  change.  However,  its  potential  as  a  site  for  joint  action  and  negotiation  of 
agreements  is by no means used to the  full. 

The  Framework  Agreement  on  the  Improvement  of  Paid  Employment  in  Agriculture  in 
the Member  States of the European  Union15  is a good  and recent  example  of what  can be 
done when the most is made of that potential. 

There  are  substantial  differences  in  representation  as  between  industries  within  the 
Community's  sectoral  social  dialogue;  nevertheless,  it  offers  significant  potential  for 
development  of the dialogue at Community  level as this is where the economic  and  social 
challenges  lie: in relation to industrial  restructuring, the introduction  of new technologies, 
changes  in  occupations  and  opening-up  to  competition.  Moreover,  the  social  partners' 
responses at industrial  level have greater operational  impact. 

The  Commission  encourages  the  further  development  of  joint  action  and  negotiations, 
both  in  qualitative  and  quantitative  terms. The  new  sectoral  dialogue  committees  will  be 
conducive  to  the  establishment  of  flexible  forms  of  work  enabling  the  social  partners,  if 
they  so  wish,  to  initiate  joint  action  or  enter  into  negotiations  on  voluntary  agreements 
promoting the key issues in the sectors. 

5.3 

Negotiation  under Article 3(4) of the Agreement  on Social Policy 

Article 3(4) of the Agreement on Social Policy stipulates that the social partners  consulted 
under  Articles  3(2)  and  3(3)  of  the  Agreement  can,  during  the  ongoing  consultation, 
inform  the  Commission  of  their  desire  to  embark  upon  a  process  of  negotiation.  The 
is  totally  in  the  hands  of  the  social  partners  and  the 
opening  of  negotiations 
negotiation  process  is  based  upon  principles  of  autonomy  and  mutual  recognition  of  the 
negotiating parties. 

The  two  agreements  concluded  so  far  under  this  procedure  constitute  important  steps 
forward  for  European  industrial  relations  and  European  social  policy.  They  have  been 
warmly  welcomed  in  most  circles,  including  the  European  institutions.  However,  some 
social  partner  organizations  have  criticized  the  fact  that  they  were  not  party  to 
the negotiations. 

15 

Concluded  between EFA/ETUC-GEOPA/COPA, 24.7.1997. 

17 

These  two  agreements  were  negotiated  at  cross-industry  level.  It  is  important  to 
acknowledge  that  there  is nothing  in the  Agreement  on  Social  Policy  that  limits  possible 
sectoral  negotiations  thereunder,  either  as  a complement  to  cross-industry  agreements  or 
establishing independent agreements limited to the sector concerned. 

The Commission  considers that the development  of contractual  relations, as set out  in the 
new  Treaty,  is  a  most  effective  mechanism  to  implement  relevant  commitments  on 
Social Policy.  The  Commission  therefore  hopes  the  social  partners  will  further  develop 
their  contractual  relations  at both  interprofessional  and  sectoral  level. Relations  based  on 
agreements  should  take  their  place  alongside  legislation  in  the  development  of  social 
policy.  The  Commission  considers  that  sectoral  agreements  between  social  partners  can 
form  an  important  basis  for  achieving  social  policy  objectives,  including  the  process  of 
making agreements binding through Community law at the request of the social partners. 

The  Commission  will  continue  to  give  strong  support  to  the  initiation  of  negotiations 
under  this  procedure,  pointing  out  that  both  the  inter-professional  and  sectoral  social 
partners are encouraged to take on their responsibilities in this respect. 

The  Commission  cannot  intervene  in the  free  choice  of  negotiating  partner.  It  welcomes 
the positive  example  of the  association  as experts  of,  EUROCOMMERCE,  FENI,  COPA 
and  HOTREC  in  the  latest  negotiations  as  an  important  step  and  encourages  the  social 
partners  to  go  further  to  make  the  agreements  even  more  acceptable  by  ensuring 
optimum  representation. 

5.4 

Implementation  of agreements concluded  at Community  level 

Agreements  can be concluded  both on sectoral  and cross-industry  issues  in the  context  of 
the social  dialogue  structures  or in the framework  of a consultation  under  Article  3 of the 
Agreement on Social Policy. 

These  agreements  can  be  implemented  either  in  accordance  with  the  procedures  specific 
to management  and labour  in the Member  States or, in matters covered  by Article  2 ASP, 
at the joint  request  of the signatory  parties, by a Council  decision  on  a proposal  from  the 
Commission  (Article 4(2) ASP). 

5.4.1 

Implementation  by the social partners 

The  existence  of  good  information  and  follow-up  mechanisms  is  crucial  to  the 
effectiveness  of the implementation  of agreements  in accordance  with the procedures  and 
practices  specific  to management  and labour  and the Member  States.  The  Commission  is 
committed  to  supporting  the  social  partners  in  developing  information  and  monitoring 
procedures  to  ensure  effective  implementation  at  national  level.  The  implementation  of 
the  Framework  Agreement  on the  Improvement  of  Paid  Employment  in  Agriculture  will 
be an important  step in this context. 

18 

5.4.2 

Implementation  through Community legislation 

Until  now  there  have  been  two  requests  from  the  social  partners  for  implementation  of 
agreements  through  Community  legislation:  for  the  European  framework  agreements  on 
parental  leave  and  part-time  work.  The  Directive16  implementing  the  parental  leave 
agreement  was  adopted by the  Council  on 3 June  1996  and the Directive17  implementing 
the part-time work agreement was adopted by the Council on  15 December  1997. 

Before  any  legislative  proposal  implementing  an  agreement  is  presented  to  the  Council 
the  Commission  carries out  an assessment18  involving  consideration  of the  representative 
status  of  the  contracting  parties,  their  mandate  and  the  legality  of  each  clause  in  the 
collective  agreement  in  relation  to  Community  law,  and  the  provisions  regarding  small 
and.medium  sized  enterprises.  One  European  social  partner  organization  has  challenged 
the legality  of the parental  leave Directive  adopted  under  this process19.  It is important  to 
emphasize  that  the  Commission  does  not  make  a  legislative  proposal  to  the  Council 
making the agreement  binding  if it considers that  the  signatory  parties  are not  sufficiently 
representative  in relation to the scope of their  agreement. 

Key Action 

The  negotiating  parties  to  an  agreement  to  be  implemented  through  legislation  under 
Article  4(2)  ASP  must  ensure  that  the  subjects  for  discussion  remain  within  the  remit 
of Article 2 ASP. 

The Commission will assess the agreements presented to it on a case by case basis with 
regard  to  the  representativeness  (sufficient  representativeness  taking  into  account  the 
scope  of the  subject  for  negotiation)  of the signatory parties, the  legality  of the  clauses 
in  the  agreements  in  relation  to  Community  law,  and  in  particular,  the  provisions 
regarding  small and medium-sized  undertakings. 

In  addition,  before  proposing  a  decision  implementing  an  agreement  negotiated  on  a 
matter  within  the material  scope of Article  2 ASP,  but  outside  the  formal  consultation 
procedure,  the  Commission  has  the  obligation  to  assess  the  appropriateness  of 
Community  action in that  field. 

The Commission  helps and supports the social partners  in any way it can by  providing 
any political, technical  and legal backup, as established  in Article  118b of the Treaty. 

16 

17 

18 

19 

Council  Directive  96/34/EC  of  3  June  1996  on  the  framework  agreement  on  parental  leave 
concluded  by LTNICE, CEEP, and the ETUC. 
Council  Directive  97/81 /EC  of  15 December  1997  on  the  framework  agreement  on  part-time  work 
concluded  by UNICE, CEEP, and the ETUC. 
This  procedure  is  laid  down  in  points  38  to  42  of  the  1993  Communication  (COM(93)  600  final) 
concerning the application  of the Protocol  on Social  Policy. 
UEAPME's  challenge  before 
subsequently  challenged  the Part-time work agreement. Case T-55/98. 

the  Court  of  First  Instance,  Case  T-l35/96.  UEAPME  has 

19 

The  Commission  will  continue  to  inform  the  European  Parliament  of  the  initiation  of 
consultations  and  the  opening  and  conclusion  of  negotiations  under  Article  3  ASP. 
Furthermore,  it  will  inform  the  Parliament  as  soon  as  the  social  partners  ask  the 
Commission  to draw up a legislative  proposal  for  the  implementation  of an  agreement 
under  Article  4(2)  ASP  to  enable  it  to  give  its  opinion  in  due  time  on  the  proposal 
before  the Council reaches its formal  decision. 

Issues  related  to  the  role  of  the  European  institutions  in  the  decision-making  process 
under  the  Agreement  on  Social  Policy -  and  in particular  the provision  of  information 
concerning  negotiations  between  the  social  partners  -  will  be  the  subject  of  further 
discussions  between  the  Commission,  the Council  and the  European  Parliament  in the 
context of the Inter-Institutional  Trilogue. 

6. 

NEW PROSPECTS  OPEN UP 

6.1 

Social  dialogue and  enlargement 

With a view to the launch of the process of accession to the European Union and above all 
the adoption of Agenda 2000 and the opening of negotiations, it is important to emphasize 
the  following: 

it  is  essential,  as  reflected  in  the  Accession  partnerships,  that  the  applicant 
countries  develop  social  dialogue  structures  and  activities.  Their  social  partners 
should  prepare themselves  to play  an effective  role  in the  framework  of the  social 
dialogue.  All  parties  agree  that  it  is  of  vital  importance  to  help  the  Central  and 
Eastern European Countries in that context; 

and  furthermore, 

the  inclusion  of  the  Agreement  on  Social  Policy  in  the  Amsterdam  Treaty 
consolidates  the  position  of  the  social  dialogue  as  a  major  component  in 
Community  social  policy  which  new  Member  States  have  to  take  into  account  in 
incorporating the acquis communautaire into their  legislation. 

To this end the  Commission: 

will  assist  the  social  partners  in  the  European  Union  in  developing  links  and 
practical  cooperation  at  cross-industry  and  sectoral  levels  so  as  to  encourage  the 
development  in  Central  and  Eastern  Europe  of  independent,  representative  trade 
union and employers' organizations; 

encourages  the  political  and  administrative  bodies  in  the  applicant  countries  to 
associate  the  social  partners  closely  in  the  pre-enlargement  policy  of  the 
European Union  and  to  adapt  the national  legal  frameworks  so  as  to  promote the 
development  of the social dialogue structures; 

20 

will  support  the  appropriate  forums  of  the  social  dialogue  to  receive  social 
partners  from  the  applicant  countries  to  learn  about  its  underlying  principles  and 
working  forms. 

6.2 

Developing a European  industrial  relations and partnership  culture 

6.2.1  Transnational decentralized dialogue 

There  is a fast-developing  social  dialogue  within  multinational  companies.  Following  the 
adoption  of  the  Directive  on the  establishment  of  a European  works  council20, the  social 
partners  in the  companies  concerned  concluded  more than 400  agreements  before  it came 
into  force.  The  Commission  intends  to  continue  to  support  the  development  of  links 
between  the European and transnational  levels so as to help the parties concerned  to draw 
upon the best experiences and ideas. 

To  this  end  the  Commission  will  organize  a  conference  in  1998  to  take  stock  of  the 
agreements  on information  and consultation concluded  in transnational  undertakings. 

There  is  also  growing  cross-border  social  dialogue  at  regional  level,  a useful  channel  in 
regions where there are significant  cross-border  flows, both in relation to employment  and 
the  implementation  of  directives  on  working  conditions.  The  Commission  will  consider 
how to assist actions of this kind when they clearly present added value at European  level. 

6.2.2  Support  to management and labour 

Independently  of the  social  dialogue, the  Commission  supports  initiatives  to  increase  the 
awareness of European issues. 

An  ongoing  initiative  in  this  connection  is  the  Network  of  Human  Resource  Directors 
which plays a part  in disseminating  successful  experiences and new ideas that can be used 
at other levels of the dialogue. 

The  European  Business  Network  for  Social  Cohesion  brings  together  a  number  of 
companies  that  are  developing  innovative  initiatives  to  give  a  practical  content  to  their 
social commitment  to combat social exclusion and promote social  cohesion. 

The  Commission  gives  technical  and  financial  support  to  various  initiatives  both  by 
employer'  and  employee'  organizations 
implementations  of  joint 
initiatives, diffusion  of the results of the social dialogue...). 

(conferences, 

The  Commission  also  funds  training  operations  organized  by  the  trade  unions  and 
provides  support  for  the  European  Trade  Union  Institute.  The  aim  is  to  promote  the 
dissemination  of  a  European  industrial  relations  culture  while  respecting  national 
experience  and tradition. 

Council  Directive  94/45/EC  of  22 September  1994  on  the  establishment  of  a  European  works 
council  or  a  procedure  in  Community-scale  undertakings  for  the  purposes  of  informing  and 
consulting  employees. 

21 

6.2.3  Supporting  the European Industrial Relations Centre 

The social partners  concluded  in  1995 an agreement  establishing  the European  Centre  for 
Industrial  Relations,  and  their  initiative  received  Commission  support.  It  is  a  centre 
of  learning  where  members  of  employer  and 
from 
EU Member States  study  together  the  differing  industrial  relations  systems  in  Europe.  It 
offers  pan-European  learning,  training  and  research  facilities  for  joint  use  by  European 
social partners. 

trade  union  organizations 

The Commission endorses the ECIR approach and will continue to monitor its development 
closely.  It  considers  that  the  founders  should  reassess  its  functioning  so  as  to  realize  its 
full  potential. 

6.3 

The means for promoting the social  dialogue 

To  promote  the  social  dialogue  at  Community  level  there  is  a  need  to  improve  the 
political  and  logistical  conditions  so  that  dialogue  can  take  place  and  provide  prior  and 
subsequent technical support to the various organizations taking part. 

The  Commission  has  set up  over  the years, on is own initiative  and  also  at the  request  of 
the social partners, various different  structures for  information,  consultation  and  dialogue. 
They enable the social partners to participate  actively at Community  level  in a  framework 
that encourages national members to express their views. 

The  Commission  also  supports  initiatives  by the  social  partners  at European  and  national 
level  aimed  at  placing  greater  emphasis  on  the  Agreement  on  Social  Policy:  preliminary 
awareness-raising  (conferences,  studies,  preparatory  meetings,  working  parties,  training 
on  European  affairs)  and  support  for  follow-up  to  measures  resulting  from  the  social 
dialogue  (dissemination,  monitoring  and  appraisal  of  agreements,  European  action,  for 
example,  on  youth  employment,  and 
relations 
training centre). 

the  setting  up  of  an 

industrial 

The  Commission  has  to  promote  and  support  the  social  dialogue  in  the  most  effective 
way,  and this  implies  adapting  existing  structures  to enable  the  social  partners  to  develop 
the  optimal  solutions  in  the  light  of  recent  developments  and  the  subsequent  challenges 
that lie ahead. 

The  support  by  the  Commission  should  open  the  possibility  for  the  social  partners  at 
European  level  to  anticipate  and  analyse  changes  in  order  to  better  understand  various 
industrial  relations  systems  and  to  examine  impact  of  reform  of  European  industry, 
economy,  labour markets  including training  systems, and  social  security  systems. In other 
terms  it  should  permit  present  and  future  generations  of  social  partners  to  play  their  role 
as  negotiators  at  the  European  level  in  order  to  promote  European  integration  in  the 
context of the single market, of EMU and of social  cohesion. 

22 

6.4 

A Reflection  Process: Study  Group 

Like  the  other  industrialized  regions  of the  world,  Europe  has  to  face  a number  of  major 
challenges  including  global  competition,  rapid  technological  progress,  and  the  protection 
of  the  environment  and  an  ageing  population.  In  addition,  it  has  to  prepare  for  the 
introduction  of  the  single  currency  from  1999  onwards  and  for  the  integration  of  new 
Member  States  into the Union.  Furthermore, the position  in general  of the  social  partners 
in the Member  States and at European  level  is changing more and  more  into  a partnership 
role, most  importantly  the key role the social  partners  have  been  given  in the  Amsterdam 
Treaty and, subsequently,  in the context  of the Employment  Guidelines. All these  changes 
have  implications  for  industrial  relations,  and  the  quality  of  industrial  relations  systems 
will  determine  to  a  considerable  extent  how  successful  Europe  will  be  in  responding  to 
these challenges. 

As a contribution  to the debate  on these  fundamental  issues  the  Commission  has  decided 
to  involve  experts  from  both  national  and  European  level  to  secure  the  broadest  possible 
views  on  the  issues  and  to  strengthen  the  knowledge  about  European  social  dialogue.  It 
should support a process of discussion at all relevant levels. 

23 

ANNEX I 

List of European social partner organizations currently consulted in accordance with 
Article 3 of the ASP 

This  list  will  be  adapted  according  to  the  criteria  set  out  in  Commission  Communication 
COM(93)  600  final  of  14  December  1993  concerning  the  application  of  the  Protocol  on 
Social  Policy,  para.  24,  following  the  periodic  results  of  the  ongoing  representativeness 
study. 

1.  General cross-industry  organizations 

Union of Industrial and Employers' Confederations  of Europe (UNICE) 

European Centre of Enterprises with Public Participation  (CEEP) 

European Trade Union Confederation  (ETUC)" 

2.  Cross-industry organizations representing certain categories of workers or undertakings: 

European  Association  of  Craft,  Small  and  Medium-Sized  Enterprises 
(Joint Committee of Social Dialogue: UEAPME  -EUROPMI) 

Confédération européenne des cadres (CEC) 

Eurocadres 

3.  Specific  organizations 

EUROCHAMBRES 

4.  Sectoral  organizations 

EUROCOMMERCE 

COPA/COGECA 

EUROPECHE 

Association of European Cooperative Insurers, AECI 

International Association of Insurance and Reinsurance Intermediaries, BIP AR 

European Insurance Committee, CEA 

Banking Federation of the European Community 

24 

Savings  Banks  Group  of the European  Community,  GCECEE 

Association  of Cooperative  Banks  of the  EC 

European  Confederation  of woodworking  industries,  CEI-bois 

Confederation  of  the  National  Hotel  and  Restaurant  Associations  in  the  EC, 
HOTREC 

European  Construction  Industry  Federation 

European  Regional  Airlines Association.  ERA 

Airports  Council  International  - European  Region,  ACI-Europe 

Association  des  compagnies  indépendantes  de  la  Communauté  européenne, 
ACE 

Association  of European  Airlines,  AEA 

Organization  européenne  des  bateliers 

International  Union  for  Inland  Navigation 

European  Community  Shipowners  Association,  ECSA 

Community  of European  Railways,  CER 

International  Road  Transport  Union,  IRU 

Industrial  Cleaning  European  Federation,  FENI 

5.  European  Industry  Committees  with  ETUC  affiliation  (*) 

FEM/EMF  (Metal.) 

EURO-FIET  (Commercial,  Clerical  and Technical  Employees) 

European  Committee  Communications  International 

EFA  (Agricultural  workers) 

EEA  (Media) 

ECF  (Food  and  Horeca) 

FSESP/EPSU  (Public  Services) 

FST  (Transport) 

25 

CSEE/ETUCE (Education) 

FETBB/EFBWW (Building - Woodworkers) 

FGE/EGF (Graphical) 

FSE-THC/ ETUF-TCL (Textiles) 

EMCEF (Miners, Chemical and Energy) 

FEJ-FIJ/EFJ-IFJ (Journalists) 

EFDPS (Diamond and Precious Stone Workers) 

(*)  Copy of the letter to the ETUC 

25 

ANNEX II 

COMMISSION  DECISION 
of 20 May  1998 
on the establishment  of Sectoral Dialogue Committees promoting the Dialogue  between 
the social partners at European level 

27 

1. 

2. 

3. 

4. 

5. 

EXPLANATORY  MEMORANDUM 

The  Commission  has an obligation to promote dialogue between management  and 
labour  under  Article  118b of the  Treaty.  It  receives  input  from  the  sectoral  social 
partners  on Community  policy through  consultations  on a number  of social  policy 
initiatives  and,  in the  sectors  where there  is a common  policy,  on the  formulation 
and  implementation  of  sectoral  policies.  The  sector-specific  consultations  are 
aimed  at improving  and harmonizing  working  conditions  and  also, in some cases, 
improving  the  economic  and  competitive  position  of  the  sector  concerned.  This 
work  is  carried  out  in  sectoral  committees,  either  set  up  on  a  formal  basis, 
Joint-Committees, or in informal  working groups. 

The  Commission  adopted  in  September  1996  a  consultation  Communication 
(COM(96)  448  final  of  18  September  1996  concerning  the  development  of 
the  social  dialogue  at  Community  level)  in  order  to  gather  as  wide  a  range  of 
views  as  possible  on  the  means  to  be  employed  to  promote  and  developing 
the  European social  dialogue.  In  this  document  the  Commission  pointed  out 
that  the  Joint  Committees  and 
informal  working  groups  have  become 
over-institutionalized  or  have  retained  operational  methods  which  have  outlived 
the  organization  and 
their  usefulness. 
responsibilities for sectoral dialogue. 

the  views  on 

It  asked 

therefore 

During  1997  more  than  80  detailed  replies  were  received  from  employers' 
and  workers'  European  and  national  organizations,  European 
institutions 
(See the  European  Parliament  Resolution  on  the  Commission  Communication 
"Concerning 
level 
COM(96)448  final"  of  18  July  1997  and  the  Opinion  of  the  Economic  and 
Social  Committee  on  the  same  issue  adopted  on  29-30  January  1997)  and  from 
national  authorities.  A European  Forum  was  held  in  the  Hague  in  April  1997  for  a 
debate on the future  of social dialogue at European level. 

the  social  dialogue  at  Community 

the  development  of 

Most  respondents  agreed  with  the  Commission  conclusion  that  the  current 
structures often  hinder positive developments. A more harmonized  approach  needs 
to  be  taken  to  the  structures  supporting  the  sectoral  dialogue  with  a  view  to 
ensuring  a  more  equitable  treatment  of  the  different  sectors  of  activity  and  to 
enable  all  sectors  to  contribute  in  the  most  effective  and  substantial  way  to  the 
development  of  the  relevant  Community  policies.  The  Commission  should  be 
prepared  to  respond  to  the  requests  of  the  sectors  willing  to  make  a  significant 
joint  contribution. 

Therefore,  in  order  to  improve  the  input  of  the  sectoral  dialogue  in  quantitative 
and  qualitative  terms,  giving  an  increased  added  value  at  European  level,  it  is 
necessary  to  replace  the  existing  structures  and  encourage  a  more  efficient 
dialogue.  The  operating  procedures  will  be  streamlined:  one  high-level  plenary 
meeting  each  year,  a  restricted  social  partner  delegation,  reimbursement  for 
maximum  15 participants  from  each  side. The  Commission,  through  the  DG  most 
concerned  with  the  issues  on  the  agenda  or  DG  V,  will  provide  secretarial 

28 

services; the  meetings  will  normally  be chaired  by a delegate  of  the  employers  or 
employees,  but  a  representative  of  the  Commission  will  take  the  chair  if  both 
parties  jointly  ask  it  to  do  so.  Each  sector  will  be  firmly  supported  through  a 
partnership  between  DG  V  and  the  other  relevant  DGs,  including  împroved 
technical backup for the preparation of and follow-up  to meetings. 

29 

COMMISSION  DECISION 
of 20 May  1998 
on  the  establishment  of  Sectoral  Dialogue  Committees  promoting  the  Dialogue  between 
the  social  partners  at  European  level 

THE  COMMISSION  OF  THE  EUROPEAN  COMMUNITIES, 

Having  regard  to the  Treaty  establishing  the  European  Community, 

Whereas  Article  118b of  the  Treaty  states  that  the  Commission  is to  endeavour  to  develop 
the  dialogue  between  management  and  labour  at  European  level  which  could,  if  the  two 
sides  consider  it desirable,  lead  to  relations  based  on  agreement; 

Whereas  point  12  of  the  Community  Charter  of  the  Fundamental  Social  Rights  of 
Workers  states  that  employers  or  employers  organization,  on  the  one  hand,  and  workers' 
organizations,  on  the  other,  should  have  the  right  to  negotiate  and  conclude  collective 
agreements  under  the  conditions  laid  down  by  national  legislation  and  practice.  The 
dialogue  between  the  two  sides  of  industry  at  European  level  which  is  to  be  developed, 
may,  if  the  parties  deem  it  desirable,  result  in  contractual  relations  in  particular  at 
inter-occupational  and  sectoral  level; 

Whereas  the  Commission  in  response  to  the  Communication  of  18  September  1996 
concerning  the  development  of the  social  dialogue  at  Community  level21  received  a  strong 
sectoral 
support 
social  dialogue; 

involved  parties 

its  suggestion 

to  strengthen 

from  all 

the 

in 

Whereas  the  European  Parliament,  in  its  Resolution  of  18 July  199722,  responding  to  that 
Commission  Communication,  called  for  a  specific  importance  to  be  attached  to  the 
sectoral  social  dialogue  since  the  impact  of regulation  and/or  deregulation  on  employment 
in the  economic  sectors  can  best  be assessed  within  the  sectoral  dialogue; 

Whereas  the  Economic  and  Social  Committee  in  its  opinion  of  29  January  199723, 
responding  to  that  Commission  Communication,  stated  that  the  sectoral  dialogue  must  be 
effective,  efficient  and  well-directed; 

Whereas  the  situation  in  the  various  Member  States  clearly  demonstrates  the  need  for  the 
two  sides  of  industry  to  participate  actively  in  discussions  on  the  improvement  of  living 
and  working  conditions  in  their  sector;  whereas  a  sectoral  dialogue  committee  attached  to 
the  Commission  is the  most  appropriate  means  of  ensuring  such  participation,  by  creating 
at  Community  level  a representative  forum  for  the  socio-economic  interests  involved; 

Whereas  the  Commission  should  endeavour  to  ensure  that  the  membership  and  the 
activities  of  the  Sectoral  Dialogue  Committees  contribute  to  the  promotion  of  equality 
between  women  and  men; 

21 
22 
23 

COM(96) 448  final. 
OJC286,  22.9.1997, p. 338. 
OJC  89,  19.3.1997, p. 27. 

30 

Whereas  the  existing  Joint  Committees  should  be  replaced  by  the  Sectoral  Dialogue 
Committees;  whereas  the  Decisions  establishing  those  Committees  should  therefore 
be repealed, 

HAS DECIDED AS FOLLOWS: 

Article 1 

Sectoral  Dialogue  Committees  (hereinafter  referred  to  as  "the  Committees")  are  hereby 
established  in those  sectors where the social partners make a joint request to take part in a 
dialogue  at  European  level,  and  where  the  organizations  representing  both  sides  of 
industry fulfil  the following  criteria: 

(a) 

(b) 

(c) 

they  shall  relate 
European level; 

to  specific  sectors  or  categories  and  be  organized  at 

they  shall  consist  of  organizations  which  are  themselves  an  integral  and 
recognized  part  of Member  States'  social  partner  structures  and  have  the  capacity 
to negotiate agreements, and which are representative of several Member States; 

they  shall  have  adequate  structures  to  ensure  their  effective  participation  in  the 
work of the Committees. 

Article 2 

Each Committee  shall,  for the sector of activity for which it is established, 

(a) 

be consulted on developments at Community level having social implications, and 

(b) 

develop and promote the social dialogue at sectoral level. 

Article 3 

The  representatives  of  the  two  sides  of  industry  taking  part  in  the  meetings  of  each 
Committee  shall number a maximum of 40 in all, with an equal number of  representatives 
of the employers' and workers' delegations. 

Article 4 

The  Commission  shall  invite  the  representatives  to  participate  in  the  meetings  of  the 
Committees  on  a  proposal  from  the  social  partner  organizations  which  have  made  the 
request set out in Article  1. 

Article 5 

1. 

2. 

Each  Committee  shall,  together  with  the  Commission,  establish  its  own  rules 
of procedure. 

The  Committees  shall  be  chaired  by  a  representative  of  the  employers'  or 
employees'  delegations  or,  at  their  joint  request,  by  a  representative  of 
the  Commission. 

31 

3. 

4. 

The Committees  shall meet at least once a year. A maximum  of 30  representatives 
drawn from  the two sides of industry taking part in a meeting of a Committee  shall 
receive subsistence allowance and travelling expenses. 

The  Commission  shall  regularly  review,  in  consultation  with  the  social  partners, 
the functioning  of the Sectoral Committees and the pursuit  of their activities  in the 
different  sectors. 

Article 6 

If the  Commission  has  informed  a Committee  that  a subject  discussed  relates  to  a matter 
of a confidential  nature, members  of the  Committee  shall  be bound,  without  prejudice  to 
the provisions  of Article 214 of the Treaty, not to disclose any information  acquired  at the 
meetings of the Committee or its secretariat. 

Article 7 

1. 

The  Sectoral  Dialogue  Committees  shall  replace  the  existing  Joint  Committees, 
namely: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

Joint 
Commission Decision  87/467/EEC24; 

Committee 

on  Maritime 

Transport 

established 

by 

Joint  Committee  on  Civil  Aviation  established  by  Commission 
Decision  90/449/EEC25; 

Joint 
Inland 
Commission Decision  80/991/EEC26; 

Committee 

on 

Navigation 

established 

by 

Joint  Committee  on  Road  Transport  established  by  Commission 
Decision  85/516/EEC27; 

Joint  Committee 
Decision  85/13/EEC28; 

on  Railways 

established 

by  Commission 

Joint  Committee  on  Telecommunications  Services  established  by 
Commission Decision 90/450/EEC29; 

Joint  Committee  on  Social  Problems  of  Agricultural  Workers  established 
by Commission Decision 74/442/EEC30; 

24 
25 
26 
27 
28 
29 
30 

OJ  L 253, 4.9.1987, p. 20. 
OJL230,  24.8.1990, p. 22. 
OJL297,  6.11.1980,  p. 28. 
OJ  L 317, 28.11.1985, p. 33 
OJL  8,  10.1.1985, p. 26. 
OJL  230, 24.8.1990, p. 25. 
OJL  243, 5.9.1974,  p. 22. 

32 

(h) 

(i) 

Joint  Committee  on  Social  Problems  in  Sea  Fishing  established  by 
Commission Decision 74/441 /EEC31. 

Joint  Committee  on  Postal  services  established  by  Commission  Decision 
94/595/EC32. 

However,  the  Committees  established  by  those  decisions  shall  remain  in  office 
until  the  Sectoral  Committees  established  by this Decision  take  office,  but  in  any 
event no later than 31 December  1998. 

Subject  to  Article  1,  the  Sectoral  Dialogue  Committee  shall  also  replace  other 
informal  working groups through which the Commission has heretofore  promoted 
the  social  dialogue  in  certain  sectors  not  covered  by  a  Commission  decision 
establishing a Joint Committee. 

The Decisions referred  to in points (a) to (i) of paragraph  1  are repealed with  effect 
from  1 January  1999. 

2. 

3. 

Done at Brussels, 20 May  1998 

For the  Commission 

Pâdraig FLYNN 
Member of the  Commission 

31 
32 

OJL243,  5.9.1974, p. 19. 
OJL225,  31.8.1994, p.  31. 

33 

Draft 
COUNCIL DECISION 

amending Decision 70/532/EEC setting up the Standing Committee on Employment 
in the European Communities 

34 

1. 

2. 

3. 

4. 

EXPLANATORY  MEMORANDUM 

Tripartite  discussion  on  employment 
takes  place  at  meetings  between 
representatives  of  the  social  partners,  the  Council  and  the  Commission.  The 
purpose,  in  addition  to  the  specific  priorities  of  each  of  the  parties,  is  to 
determine  shared  objectives.  The  key  body  at  European  level  has  been  the 
Standing  Committee  on  Employment,  set  up  in  1970  (Council  Decision 
70/532/EEC as amended by Decision 75/62/EEC). 

There has been quite a lot of criticism of the operation of this Committee as it now 
stands. Most of the Committee  members  agree that  its operations  are  out-of-date: 
as  are  the  membership,  the  working  methods  and  the  use  to  which  its  results 
are put. 

Moreover,  the  context  for  tripartite  dialogue  at  Community  level  has  been 
transformed  in recent years: 

the  tripartite  approach  has  become  more  relevant  in  a  number  of  the 
Member States involved in the conclusion of employment pacts; 

in  the  recent  debates  on  flanking  measures  for  industrial  restructuring, 
partnership has been considered  one of the most important approaches that 
should be promoted; 

the  incorporation  of a new employment  title in the Amsterdam  Treaty  and 
the  application  of  these  arrangements  (see  the  Council  Resolution  on  the 
1998  Employment  Guidelines  adopted  on  15  December  1997,  OJ  C  30, 
28.1.1998, pp. 1-5) has changed the direction of the tripartite dialogue. 

Furthermore, recent  initiatives to encourage  new forms  of tripartite dialogue  have 
led to an increase of fora,  in parallel to the meetings at Ministerial level within the 
framework  of the Standing Committee on Employment, where the Council and the 
social  partners meet to discuss  employment  issues,  such as the meetings  between 
the  Employment  and  Labour  Market  Committee  Steering  Group  and  the  social 
partners, and the meetings between the Troika of Ministers  and/or Heads of  State 
and the social partners. 

of 

and 

the  undisputed 

lack  of  efficiency 

These  developments 
the 
Standing Committee  in  its  present  form  require  a  new  rationalized  process 
allowing  the  social  partners  to  contribute  in  the  most  effective  way  to  the 
development  and  implementation  to  the  Employment  Guidelines  and  Broad 
, Economic  Orientations.  The  Commission  proposal  for  the  amendment  of  the 
current  Council  Decision  will  accordingly  limit the  number  of participants  in  the 
meetings,  update  the  membership  of  the  social  partners  taking  into  account 
successive  enlargements  of  the  Community  and  developments  affecting 
the 
representative  organizations. It will  also  give the necessary  flexibility  in order  for 
the Committee meetings to be directly linked to the new employment process. 

35 

The Commission's comments on the sole Article in its proposal are given below: 

5. 

As regards the amendment to Article 2(1) of Decision 70/532/EEC 

First, this amendment confines  itself to reflecting  the change in the membership of 
the  Committee  which  is  made  in  the  amendments  introduced  in  Article  2. 
Secondly,  it  stipulates  that  the  Committee  shall  meet  twice  a year.  This  replaces 
the earlier obligation for the Committee to "fulfil  its tasks before  any measures are 
adopted  by  the  relevant  institutions".  This  change  reflects  the  important  role  the 
social  partners  should  play  in  the  new  process  on  employment  as  set  out  in 
the  conclusions  of  the  European  Council  meeting  on  employment  held  on 
20-21 November  1997 (p. 19) (The Luxembourg Jobs Summit). 

6- 

As regards the amendment to Article 2(2) of Decision 70/532/EEC 

This  amendment  gives the  necessary flexibility for  each Presidency  of the  Union 
to  choose  the  most  appropriate  form  for  discussing  employment  with  the 
social partners;  either  the  full  Council  or  the  Troika  of  Heads  of  States  or 
Governments  as  set  out  in  the  conclusions  to  the  Luxembourg  Jobs  Summit 
(p. 19). 

7. 

As regards the amendment to Article 2(3) of Decision  70/532/EEC 

This  amendment  firstly  reduces the number  of social  partner participants  from  36 
to  16 in order to allow for  a more effective  form  of meeting. Secondly, it  replaces 
the  function  of  the  Annex  in  the  former  decision  as  it  stipulates  which  social 
partner  organizations  are  to  take  part  in  the  work  of  the  Committee.  The  social 
partner  organizations  are selected  so that each social partner delegation  covers the 
whole  economy,  and  include  European  organizations,  representing  either  general 
interests  or more specific  interests  of supervisory and professional  staff  and  small 
and medium-sized  businesses. 

8. 

As  regards  the  amendments 
Decision  70/532/EEC 

to  Article  2(4)  and  deleting  the  Annex 

to 

This  amendment  reflects  the  reduction  of  participants  from  the  social  partner 
delegations. 

36 

Draft 
COUNCIL  DECISION 
amending Decision 70/532/EEC setting up the Standing Committee on Employment in 
the European  Communities 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article  145 thereof, 

Whereas the European Parliament  in its Resolution  of  18 July  199733 on the  Commission 
Communication  of  18 September  1996 concerning the development of the social  dialogue 
at Community  level34 called  for  the  Standing  Committee  on Employment  to be  reformed 
as a matter of urgency; 

Whereas the Economic  and  Social  Committee  in its opinion  of 29 January  199735 on the 
same  Commission  Communication  stated  that  the  Standing  Committee  on  Employment 
was to be given a higher profile; 

the  Council 

Whereas 
the  1998 
Employment Guidelines36  emphasized  the  need  to  associate  the  social  partners  in 
employment  strategy; 

its  Resolution  of  15  December  1997  on 

in 

Whereas  the  Commission  in  its  Communication  of  20  May  1998  "Adapting  and 
Promoting  the  Social  Dialogue  at  Community  level"37  underlined  the  importance  of 
adapting  the  composition  and  working  methods  of  the  Standing  Committee  on 
Employment to the new environment; 

Whereas  in  its  conclusions  to  the  Intergovernmental  Conference  held  at  Florence  on 
21 and  22  June  1996,  the  European  Council  reaffirmed  the  importance  to  promoting 
employment  and  reducing  the  unacceptably  high  levels  of  unemployment  in  Europe, 
particularly for young people, the long-term unemployed and the low-skilled; 

Whereas  the  European  Council  emphasized  at  its  extraordinary  summit  on  employment 
held in Luxembourg on 20-21 November  1997 that, as part of the necessary  strengthening 
of the  social  dialogue, the  social  partners  at all  levels would be involved  in  all  stages  of 
this  new  strategy  and  would  have  their  contribution  to  make  to  the  implementation  of 
the guidelines; 

Whereas  Council  Decision  70/532/EEC38,  as  last  amended  by  Decision  75/62/EEC39, 
should therefore be amended  accordingly, 

33 
34 
35 
36 
37 
38 
39 

OJC  286, 22.9.1997, p. 338. 
COM(96) 448 final. 
OJC  89,  19.3.1997, p. 27. 
OJ C 30, 28.1.1998, p. 1. 
COM(1998) 322 final. 
OJ 273,  17.12.1970, p. 25. 
OJ 21, 28.1.1975, p. 17. 

37 

HAS DECIDED AS FOLLOWS: 

Decision 70/532/EEC is amended as follows: 

Sole Article 

1. 

In Article 2, paragraphs  1  to 4 are replaced by the  following: 

"1. 

The  task  of  the  Committee  shall  be  to  ensure,  in  compliance  with  the 
Treaties  and with  due regard  for  the powers  of the  institutions  and  organs 
of  the  Communities,  that  there  shall  be  continuous  dialogue, joint  action 
and consultation between the Council - or the "troika" of Heads of State or 
Government  -  the  Commission  and  the  two  sides  of  industry  in  order  to 
facilitate  coordination  by the Member  States of their  employment  policies 
in harmony with the objectives of the Community. 

The Committee shall meet twice a year. 

2. 

The following parties shall take part in the work of the Committee: 

either the Council or the "troika" of Heads of State or Government; 

the Commission; 

employers' organizations; 

workers' organizations. 

3. 

There shall be eight representatives from  each of the two sides of industry, 
each  delegation  covering  the  whole  economy,  being  composed  of 
European  organizations,  representing  either  general  interests  or  more 
specific  interests  of  supervisory  and  professional  staff  and  small  and 
medium-sized  businesses.  The  designation  of  the  employees'  delegation 
(ETUC,  CEC)  shall  be  coordinated  by  the  European  trade  union 
confederation  (ETUC),  and  the  designation  of  the  employers'  delegation 
(UNICE,  CEEP,  UEAPME,  Eurocommerce,  COP A)  shall  be  coordinated 
by the union of industries of the European Community (UNICE). 

4. 

Each of the parties taking part  in the work  of the Committee  shall  appoint 
its  representatives  at  its  own  discretion  either  for  a  specified  period  or, 
depending on the matters to be dealt with, for specific meetings." 

2. 

The Annex is deleted. 

Done at Brussels, 

For the Council 
The President 

38 

FINANCIAL  STATEMENT 

1. 

TITLE OF OPERATION 

Sectoral dialogue committees 

2. 

BUDGET HEADING  INVOLVED 

Part A of the budget only 

3. 

LEGAL BASIS 

Treaty  on European  Union, in particular Article  118b thereof and Article  3 of the 
Agreement on social policy 

4. 

DESCRIPTION  OF OPERATION 

4.1 

General  objective 

The  Commission  is  presenting  a  proposal  for  the  rationalization  of  the 
existing committees and groups in the field of sectoral social dialogue. The 
objectives  are to provide  a  single  structure  for  social  dialogue  and  reduce 
the administrative burden on the existing joint committees.  Rationalization 
will  make  it  possible  to  meet  the  demands  from  new sectors  for 
in  the  social  dialogue  without  increasing  the available 
participation 
resources. It will also involve changes to the joint committees' statutes. 

4.2 

Period covered and arrangements for renewal or extension 

Unlimited 

5. 

CLASSIFICATION  OF EXPENDITURE OR REVENUE 

5.1 

Non-compulsory  expenditure 

5.2 

Non-differentiated  appropriations 

5.3 

Type of revenue involved:  None 

6.  TYPE OF EXPENDITURE OR REVENUE 

Expenditure  consists  mainly  of  the  costs  involved  in  organizing  sectoral  social 
dialogue  meetings,  i.e.  hiring  of  rooms,  reimbursement  of  employers'  and 
workers' travel expenses, and interpreting. 

39 

7.  FINANCIAL IMPACT 

NO IMPACT AS REGARDS PART B OF THE BUDGET 

7.1  Method  of  calculating  total  cost  of  operation  (link  between  unit  costs 

and total cost 

Rationalization  and  changes  to the  statutes  of  the  sectoral  social  dialogue 
committees  will  not  give  rise  to  any  new  needs  in  terms  of  financial  or 
other resources. 

7.2 

Itemized breakdown of cost 

EC in ECU million (current prices) 

Breakdown 

Budget 
yearn 

n +1 

n + 5 and 
subs, yrs 

Total 

* 

Total 

7.3 

Operational  expenditure  (studies,  experts,  etc.)  included  in  Part  B  of 
the budget 

EC in ECU million (current prices) 

Breakdown 

Budget 
yearn 

n +1 

Total 

n  +  5 
and 
subs, 
yrs 

-  Studies 

-  Meetings of experts 

-  Conferences  and 

congresses 

-  Information  and 
publications 

Total 

40 

7.4 

Schedule of commitment and payment  appropriations 

Yearn 

n +1 

EC in ECU million 

Total 

n  +  5 
and 
subs, yrs 

Commitment 

appropriations 

Payment 

appropriations 

Yearn 

n + 1 

n  +  5  and  subs, 
yrs 

Total 

8.  FRAUD PREVENTION MEASURES 

Given the type of expenditure planned  (organization of meetings), no measures are 
envisaged,  apart  from  the  usual  checks  on  requests  for  reimbursement  of 
participants' travel, hotel and subsistence expenses. 

9. 

ELEMENTS OF COST-EFFECTIVENESS  ANALYSIS 

9.1 

Specific  and quantified  objectives; target  population 

The  intention  is  to  allow  the  sectoral  social  partners  to  develop  a  social 
dialogue with a view to entering into agreements. 

The  target  population  consists  of  the  social  partners'  organizations  at 
sectoral  level  and  members  of  organizations  in  line  with  the  principle  of 
representativeness. 

41 

9.2 

Grounds for the operation 

The  sectoral  social  dialogue  has  been  constantly  enhancing  its  input  at 
European  level.  In order  for  this  development  to  continue  and  to  improve 
the  input  in  quantitative  and  qualitative  terms,  giving  an  increased  added 
value  at  European  level,  it  is  necessary  to  replace  the  existing  structures 
and  encourage  an efficient  political  dialogue  rather  than  highly  formalized 
exchanges of position. 

The Commission will establish a new framework  within which the sectoral 
dialogue  can continue  its development.  This  framework  will  be  applicable 
on the same terms to all sectors wishing to take part in social dialogue  and 
will be easily extendible to new sectors. 

The  new  committees  will  constitute  the  key  forum  for  sectoral  dialogue 
(consultation,  joint  action  and  negotiations)  and  be  set  up  in  all  sectors 
which  submit  a  joint  request  and  are  sufficiently  well-organized  with 
a  meaningful  European  presence  in  line  with  the  established  criteria 
of representativeness. 

9.3  Monitoring and evaluation of the operation 

Meeting  organization  facilities  will  be  made  available  to  the  various 
committees in accordance with their annual work programmes. 

Texts jointly  adopted  by the  social  partners  as a result  of  the  committees' 
activities  will  be  made  public  and  will  be  disseminated  both  within  the 
Community  Institutions  and  within  the  Member  States, particularly  to  the 
members of the national social partners'  organizations. 

The  results  of  the  social  dialogue  and  hence  of  the  functioning  of  these 
committees  will  be  judged  mainly  by  the  employers'  and  workers' 
electorates  in  the  context  of  social  elections  or  other  electoral  procedures 
used to appoint workers' and employers'  representatives. 

The  Commission  will  also  describe 
committees'  activities in its annual social dialogue report. 

the  outcome  of 

the  sectoral 

10. 

ADMINISTRATIVE  EXPENDITURE  (PART A OF THE BUDGET) 

The  actual  mobilization  of the  necessary  administrative  resources  will  depend  on 
the Commission's  annual decision on the allocation of resources, taking account in 
particular of the additional  staff and sums approved by the budget authority. 

10.1  Effect  on the number of staff 

No additional staff  required 

The following  table thus refers to the staff  already deployed. The  operation 
will necessitate internal reallocations in the distribution of tasks. 

42 

Types of  staff 

Staff 
to  be  assigned 
managing the operation 

to 

Permanent 
staff 

Temporarv 
staff 

Officials  or 
temporary 
agents 

A 

9 

1 

B 

C 

1 

2 

Other resources 
A-7001 
Total 

12 

1 

2 

Of which 

Duration 

Using 
supplementary 
resources 

Using  existing 
resources 
within  the  DG 
or service 
concerned 
10 

1 

2 

1 

14 

Indefinite 

10.2  Overall financial impact of human resources 

No additional staff required 

The following  table thus refers to the staff  already deployed. The operation 
will necessitate internal reallocations in the distribution of tasks. 

Amounts 

Calculation method 

(ECU) 

Officials* 

1  296 000 

12x108 000=1296  000 

Temporary agents 

108 000 

1  x  108 000  =  108 000 

Other resources 
(A-7001) 

43 000 

1  x 43 000  = 

43 000 

Total 

1  447 000 

Using  available  resources  allocated  to  management  of  the  operation 
(calculation based on titles A-l, A-2, A-4, A-5 and A-7) 

43 

10.3  Financial 

impact  of  other  operating  expenditure 

involved 

in 

the operation 

Budget line (number 
and heading) 

A-7032 committee 
meetings 

Amounts 

Calculation  method 

(ECU) 

1  265 040 

ECU  753 per  participant  on  average  x 
maximum  30  participants  per  meeting 
x minimum  56 meetings 

Total 

1  265 000 

The  amount  indicated,  which  covers  all  the  sectoral  dialogue  committees  to  be 
established, will be taken from  the DG V budget. 

44 

ISSN 0254-1475 

COM(98) 322 final 

DOCUMENTS 

EN 

05  01 

Catalogue  number  :  CB-C0-98-355-EN-C 

ISBN  92-78-36861-X 

Office  for  Official  Publications of the European  Communities 

L-2985  Luxembourg 

45