WRITTEN QUESTION E-3665/00 by Luciana Sbarbati (ELDR) to the Commission. Safeguarding jobs in firms which have been beneficiaries of state and Community aid.
Date: 2000-11-27
Institutions: European Parliament, Provisional data
Subjects: EU financing, State aid, application of EU law, competence of the Member States, job preservation

19.6.2001

EN

Official Journal of the European Communities

C 174 E/107

(2001/C 174 E/110)

WRITTEN QUESTION E-3665/00

by Luciana Sbarbati (ELDR) to the Commission

(27 November 2000)

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

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

However, in Europe, despite Parliament(cid:146)s adoption last year of a number of resolutions for the benefit of
workers, firms which are in no economic difficulty but which,
in several cases, have doubled their
shareholders(cid:146) profits (most recent cases include Renault Vilvoorde, Michelin, Goodyear, Carrier, Miliani and
Telecom), are increasingly resorting to mass redundancies and lay-offs. Their strategic market-oriented
decisions (relocation, restructuring plans, privatisation etc.) are proving to be socially irresponsible and are
penalising particularly the weaker categories, such as older workers and women.

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

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

(1) OJ L 48, 22.2.1975, p. 29.
(2) OJ L 245, 26.8.1992, p. 3.
(3) OJ L 254, 30.9.1994, p. 64.

Answer given by Mrs Diamantopoulou on behalf of the Commission

(21 February 2001)

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

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

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

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

(1) OJ C 2, 5.1.1999.