WRITTEN QUESTION E-2457/01 by Camilo Nogueira Román (Verts/ALE) to the Commission. Unemployment and destitution in the European Union.
Date: 2001-09-11
Institutions: European Parliament, Provisional data
Subjects: EU initiative, European Social Fund, European Union, employment policy, integration into employment, job access, poverty, unemployment

C 115 E/92

Official Journal of the European Communities

EN

16.5.2002

(2002/C 115 E/096)

WRITTEN QUESTION E-2457/01

by Camilo Nogueira Román (Verts/ALE) to the Commission

(11 September 2001)

Subject: Unemployment and destitution in the European Union

When Commissioner Anna Diamantopoulos submitted the 2001 employment guidelines a few months
ago, she claimed that the European Union’s main objective was to prevent the emergence of a new class of
poor workers, and that the Commission was proposing to ensure the creation of high quality jobs.
However, there can be no denying the economic phenomenon, in both rich and European less developed
countries, of
the co-existence of an increasing demand for highly qualified workers and structural
unemployment which affects young people seeking their first job, women in general, people over a certain
age and immigrants. The long-term unemployment affecting these groups of people in particular accounts
for 45 % of Europe’s total unemployment. This is giving rise to growing destitution and structural poverty.
What Union policies and budgetary provisions are dedicated to combating and solving the grave problem
of human destitution which is dividing European society?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(19 October 2001)

The Community supports Member States’ efforts to combat poverty caused by long term unemployment
and exclusion from the labour market essentially through the following three policy instruments:

5 The European Employment Strategy and guidelines which stress the need to develop an inclusive
labour market through policies which promote employability and are tailored to special needs, which
support the creation of appropriate employment opportunities for those who are least able to access
the mainstream labour market and which seek to better reconcile work and family responsibilities;

5 The European Social Fund and the Community Initiative EQUAL;

5 The European Social Fund (ESF) along with the other Structural Funds aim to promote greater
economic and social cohesion across the Union. A key concern for policy action is the disparity in
income and employment opportunities between regions and groups of
individuals. The ESF
programmes for 2000-2006 will make an investment in people of around € 60 000 million as part
of the modernisation and reform of European labour markets.

The ESF Regulation (1) outlines the five policy fields through which ESF will support the development of
the labour market and human resources. One of those policy fields aims to ‘promote equal opportunities
for all in accessing the labour market’ which gives particular attention to integrating marginalised groups
into the economy and society. Support comprises actions to widen access to learning and employment
opportunities including clear commitments to tackle the digital divide. Over € 9 000 million of ESF money
will be allocated to this policy field over the period 2000-2006. In Portugal, roughly 16 % of the total ESF
budget, equivalent to € 700 million, is used to help combat and prevent social exclusion.

The Community Initiative EQUAL is also part of the Community’s strategy for more and better jobs and
for ensuring that no-one is denied access to them. EQUAL will test new ways of tackling discrimination
and inequality experienced by those in work and those looking for a job. The Community’s contribution
amounts to € 2 847 million over the 2000-2006 period.

16.5.2002

EN

Official Journal of the European Communities

C 115 E/93

The Open Method of Co-ordination on Social Inclusion which has resulted in two-year action plans against
poverty and social exclusion (NAPs/incl) in all Member States from 2001 onwards, in combination with a
process of exchange of experience and mutual learning at Community level. The process involves the
development of comparable indicators and will be facilitated by a five-year, € 75 million Commission
programme which will start in January 2002. The NAPs/incl provide a framework in each Member State to
develop more integrated policy making to combat poverty and social exclusion, in order to meet the
common objectives which have been set in this field by the Nice European Council (7-9 December 200).
The NAPs/incl also support Member States to further enhance the impact of ESF and EQUAL actions
aimed at fostering social inclusion and integration in the labour market.

(1) Regulation (EC) No 1784/1999 of the Parliament and of the Council of 12 July 1999 on the European Social Fund,

OJ L 213, 13.8.1999.

(2002/C 115 E/097)

WRITTEN QUESTION E-2460/01

by Camilo Nogueira Román (Verts/ALE) to the Commission

(11 September 2001)

Subject: Sackings and transfer of industrial activity and jobs by European companies to companies in less-

developed countries

The French telecommunications company Alcatel recently announced it had decided to sack 20 000
workers and close various factories in Europe, and to transfer the production processes concerned to
companies in less-developed countries, so as to externalise its industrial activity while retaining its
innovative, technological and commercial activity. This creates a problem to which the EU institutions
cannot remain indifferent. Alcatel justifies its decision in terms of recent economic disadvantages; in other
cases, companies justify mass sackings by the need to secure an immediate improvement of their stock
exchange performance, an economically, socially and politically aberrant practice which is becoming
evermore frequent. What political and legal instruments is the Commission applying or intending to apply
to prevent or penalise such practices on the part of European companies?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(23 October 2001)

Company restructurings, such as that mentioned by the Honourable Member, fall within the scope of
Community legislation, notably the directives on ‘collective redundancies’ (1), ‘transfers of undertakings’ (2)
and ‘European works councils’ (3), which lay down certain obligations in respect of
informing and
consulting workers’ representatives in circumstances such as those described.

These directives are transposed into the national legislations of all the Member States, and it is up to the
Member States in the first resort to make sure that the provisions contained therein are complied with. The
Commission monitors that this is so in the last resort.

The proposal for a Directive establishing a general framework for informing and consulting employees in
the European Community (4), which the Commission hopes to see adopted in the near future, will
complement this framework and, in parallel with the possible forthcoming revision of Council Directive
94/45/EC (European works councils), will ensure the existence throughout the Union of appropriate
provisions for giving the workforce a say in company restructurings and in handling the consequences of
restructuring.