Opinion of the Economic and Social Committee on the "Proposal for a Council Decision on Guidelines for Member States' employment policies for the year 2002"
Date: 2001-10-17
Institutions: European Economic and Social Committee
Subjects: EU Member State, activity report, employment policy, social partners

8.2.2002

EN

Official Journal of the European Communities

C 36/81

Opinion of the Economic and Social Committee on the ‘Proposal for a Council Decision on
Guidelines for Member States’ employment policies for the year 2002’

(2002/C 36/17)

On 17 October 2001 the Council decided to consult the Economic and Social Committee, under
Article 262 of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for Employment, Social Affairs and Citizenship, which was responsible for preparing the
Committee’s work on the subject, adopted its opinion on 3 October 2001. The rapporteur was Mr van
Dijk.

At its 385th plenary session of 17 and 18 October 2001 (meeting of 17 October), the Economic and
Social Committee adopted the following opinion by 75 votes in favour with six abstentions.

1.

Introduction

50 % for the employment rate of older persons (55-
64) to be reached in 2010. These targets have been
incorporated in the horizontal objective A.

1.1.
In line with Treaty Article 128, the Commission is
drawing up its annual employment policy guidelines for 2002.

1.2.
The Lisbon summit took place in 2000. In its wake,
the Commission undertook an in-depth revision of the 2001
guidelines. For 2002, the Commission is planning a thorough
the
impact assessment since implementation of some of
guidelines has to be completed by then. For that reason, it has
made no major changes in the 2002 guidelines.

1.2.1.
Following the in-depth changes which marked the
employment guidelines for 2001, and in view of the ongoing
impact evaluation of the European Employment Strategy, the
results of which will be reflected in the employment guidelines
for 2003, the Commission recommends a minor revision of
the guidelines for 2002, keeping the changes to new policy
emphasis resulting from recent Commission communications,
European Councils and the assessment of the Joint Employ-
ment Report 2001 (1).

These are the main changes made compared to the employ-
ment guidelines for 2001:

— The Stockholm European Council agreed to complement
the Lisbon targets for 2010 with intermediate targets for
2005 for the overall employment rate (67 %) and the
employment rate for women (57 %), as well as a target of

— The Stockholm European Council also agreed that the
Council should include quality in work as a general
objective in the 2002 employment guidelines. This is
now reflected in a new horizontal objective B (2). In
addition, new references to the quality aspect have been
integrated in a number of relevant thematic guidelines
(numbers 3, 7, 10, 11 and 13).

— Guideline 6 on mobility underlines more strongly the
need to encourage labour mobility in new European
labour markets (3).

— In view of the limited response made by Member States
to the invitation to set national targets for employment
rates in accordance with the Lisbon summit conclusions,
the wording of horizontal objective A has been reinforced
in a more binding way.

— A strengthening of guideline 17 on gender gaps. The
significant level of the pay gap between women and men
in many Member States has been identified as a potential
disincentive for women to take up work or to remain at
work. The request from the Stockholm European Council
to develop indicators in this area equally underlines the
importance of this issue.

(1) In addition, the recitals have been updated and minor changes
have been incorporated to reflect the ongoing impact evaluation
of the strategy (horizontal objective F), the less favorable economic
outlook (overall introduction) and industrial restructuring.

(2) Changes are made on the basis of the Commission Communi-
cation COM(2001) 313, 20.6.2001 (Employment and social
policies: a framework for investing in quality).

(3) Changes are made on the basis of the Commission Communi-
cation COM(2001) 116 of 28.2.2001 presented in view of the
Stockholm Summit, as well as in the Communication on a
European research area, COM(2000)6, 18.1.2000.

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The Committee intends to structure the opinion as
1.3.
follows. Firstly,
it will point to relevant earlier opinions.
Consideration will thereby be given to how far recommen-
dations made in these opinions are adequately reflected in the
2002 employment guidelines. The Committee will then make
one or two observations which, following the impact assess-
ment, must be borne in mind when drawing up the 2003
guidelines.

2. Earlier opinions

In October 2000, the Economic and Social Committee
2.1.
issued an opinion on the 2001 employment guidelines (1).
Particular emphasis was thereby laid on:

— the catalyst key objective of full employment;

— the vital need for lifelong learning;

— closer involvement of the social partners in the process;

— the need for balanced implementation of the various

pillars;

— the need for quantitative and qualitative indicators.

The Committee opinion endorsed the main thrust of the
proposed employment guidelines and welcomed the inclusion
of a separate guideline on safety and health in the workplace (2).
The opinion also draws particular attention to vulnerable
groups on the labour market such as older workers, women,
young school-leavers and the long-term unemployed. To
achieve the Lisbon summit’s objectives — i.e. to become the
most competitive and dynamic knowledge-based economy in
the world — considerable attention must in particular be paid
to investments in research and development and in training.

Also in 2000, the Committee issued an opinion on
2.2.
older workers (3). It noted that, in various Member States, the
employment rate of workers in the 50-64 age group is much
lower than that of younger workers. The opinion made a
the
number of recommendations which may help boost

employment rate of older workers, although the Committee
was aware that, in some cases, a lower pensionable age was
warranted:

— a change in attitudes among employees and companies;

— a human resource strategy that does not stop when
workers reach 45; age-aware human resource policy is
very important for older workers. This may include issues
such as recruitment and retirement; vocational training,
further training and promotion; the flexible organisation
of work; ergonomics; and a change of attitudes within
companies;

— consideration of pay-scale structures where salaries would
increase faster at the beginning than at the end of a
career, so as to make older workers less vulnerable. The
Committee directed this recommendation principally to
the social partners, although it has no desire to impinge
on their independence in matters of wage negotiation.

The Committee advocated guidelines to give shape
2.2.1.
to the policy on older workers. It also pointed to the ESF
which could play an important part in putting that policy into
effect.

2.3.
In its opinion on the mid-term review of the three
processes that underpin the European employment strategy (4),
the Committee endorsed the employment guidelines as a
policy tool. The guidelines’ most important contribution has
been to generate more attention for the issue and to involve
all the relevant partners. To improve the process and following
on from the Commission assessment, the Committee proposed
fewer guidelines, more effective coordination with other
processes (e.g. Cardiff, Cologne and Lisbon), definition of
indicators, better monitoring and the dissemination of best
practice. Involvement of the social partners could also be
improved. The Committee added that, at the end of a five-year
period, a one-year pause might be advisable to enable all the
players concerned to play their part to the full.

In its opinion on European immigration policy (5), the

2.4.
Committee has this to say:

‘The national employment action plans must include criteria
in managing migratory flows. With the
which are helpful
necessary flexibility, national employment plans must give
consideration to immigration forecasts in order to ensure

(1) Opinion on the Proposal for a Council Decision on guidelines for
Member States’ employment policies for the year 2001, 18 and
19 October 2000, OJ C 29, 30.1.2001.

(2) See also: Towards a Community Strategy for health and safety at
work, OJ C 240, 17.9.2001, p. 97, and Health and Safety in the
workplace, OJ C 51, 23.2.2000.

(3) Own-initiative opinion on older workers, 18 and 19 October

2000, OJ C 14, 16.1.2001.

(4) Own-initiative opinion on The Mid-term review of the three
processes that underpin the European Employment Strategy, OJ
C 139, 11.5.2001, p. 33.

(5) Opinion on the Commission Communication on a Community

immigration policy, OJ C 260, 17.9.2001, p. 104.

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that the labour market functions properly. The employment
guidelines, drawn up annually on the basis of the four “pillars”
adaptability and equal
(employability,
opportunities), should embrace the new immigration policy.
The guidelines will promote higher quality employment for
both Member State nationals and immigrants.’

entrepreneurship,

since the Commission does not yet have a set of clear-cut
indicators for the EU as a whole. On the other hand, the
guidelines will be stronger and more effective if they include
readily measurable objectives. The Committee trusts that such
quantitative objectives, based on European indicators, will
again be included following the impact evaluation.

In its opinion on equal pay for men and women (1),
2.5.
the Committee called in particular for greater transparency in
male-female pay. Member States should launch initiatives on
this front. Statistics also need to be updated. The employment
guidelines should require countries to undertake specific
actions to make it easier for women to enter the labour market
and to combat wage discrimination.

2.6.
A recent opinion of the Economic and Social Com-
mittee also drew attention to improving the quality dimension
of social and employment policy (2).

3. 2002 guidelines: an assessment

3.1.
The Committee is pleased that, as called for in its
opinion on older workers, more attention is paid in the
guidelines to older workers.

3.2.
Like the Commission, the Committee has attached
high priority to combating the pay gap between women and
men. It thus backs strengthening the relevant guideline under
which Member States, in cooperation with the social partners,
are called upon to work out a strategy to end existing
differentials.

3.3.
Compared with the 2001 guidelines, the changes made
in the current paper are only marginal. Following the thorough
revision undertaken in 2001, the Committee endorses this
approach. It is pleased that the Commission has not proposed
minor drafting changes.

3.4.
That said, the Committee does have certain doubts
about the deletion of the quantitative objectives that had been
included in the 2001 guidelines. On the one hand,
the
Committee understands why these figures have been dropped,

3.5.
The Committee would point out that the current
uncertain economic outlook places additional pressure on
Member States to implement the guidelines as effectively as
possible. The Committee therefore wishes to point out that an
active labour market policy is now more necessary than ever.

4. Building blocks for employment guidelines after the

impact assessment

4.1. Work is currently under way on the employment
guidelines impact assessment. In March 2002, the Commission
will submit a technical report to the other institutions setting
out the key findings of this assessment. The Committee will
also be asked to issue an opinion on the assessment. In
anticipation of
the Committee would like to bring
forward some building blocks for this assessment.

that,

4.2.
Under the Treaty, the Commission is required to review
employment policy and draw up guidelines on an annual
basis. The Committee wonders whether an annual revision of
the guidelines is advisable. Member States need to put a great
deal of effort into drawing up the guidelines and transposing
them into national action plans — although the priorities
involved do not change a great deal from year to year. It also
takes some time before the effects of a policy become visible
and measurable. The Committee would therefore recommend
a multiannual cycle which will make an effective policy cycle
possible. It must be ensured that there is scope for adapting to
changed circumstances. Such a policy change would, however,
require an amendment to Article 128 of the Treaty. An
alternative, for as long as the Treaty remains unchanged, could
be to opt for a thorough revision every two years, with a
marginal adjustment in the intervening year, thereby giving
Member States more time to assess the impact of the employ-
ment guidelines on their policy.

(1) Own-initiative opinion on wage discrimination between men and

women, OJ C 155, 29.5.2001, p. 65.

(2) Improving the quality dimension of social and employment policy
OJ C 311, 7.11.2001, adopted at the plenary session of 12 and
13 September 2001.

4.2.1. Member States’ annual reporting arrangements to
the European Commission could also be adjusted. They would
then be required to report annually on half the guidelines.

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4.3.
The Committee is concerned about the involvement of
the social partners in drawing up the employment guidelines
and their transposition into national action plans. Although the
Commission remains fairly optimistic about their involvement,
the social partners themselves are not always happy. Often,
they have little time to discuss the guidelines internally
and, accordingly, to set out views that are backed by the
organisations concerned. This is also apparent from the way
the ESC opinion has to be drawn up. Just one study group
meeting has to suffice to draft such a key opinion.

4.3.1.
The Committee is even more concerned about social
in transposing the guidelines into
partners’
involvement
national action plans. Often, social partners are only sent the
plans at the last minute and have just a few days to set out
their views. Optimum involvement of the social partners in
framing the plans is found in only a few Member States.

4.3.2.
In order to make the social partners more involved
in drawing up the national action plans (NAPs), Member States
should bring them into the process at an earlier stage. At the
moment, they are often consulted about the NAPs only after
these have been drawn up by the governments concerned.
Thus, social partners do not feel involved in the drawing up
and implementation of the NAPs. The social partners should
also be more closely involved in the implementation of the
country-specific recommendations.

Brussels, 17 October 2001.

4.4.
In addition to comments about the process itself, the
Committee would also like to add a few points to which the
guidelines must give more consideration in future.

4.4.1.
In the employment guidelines, the Commission and
the Council rightly ask that consideration be given to vulner-
able groups on the labour market. By that, they mean women,
older workers, the long-term unemployed and young school-
leavers. The Committee would add another two groups: the
disabled and ethnic minorities. The disabled are already
mentioned in guideline 7, but they should also be taken
into consideration in other guidelines. Ethnic minorities are
extremely vulnerable and require extra attention. The Com-
mittee sees a promising signal
in the country-specific rec-
ommendations given to Germany, Austria and Sweden.

4.4.2.
In order to be able to measure the impact of the
guidelines effectively, it is essential to have readily comparable
indicators. That will boost the commitment of Member States
and the social partners to the Luxembourg process.

Finally,

the Committee would point

4.4.3.
to the dis-
cussions under way in the field of immigration policy. The
Committee has already called for the inclusion of a passage on
immigration policy in the employment guidelines.

The President

of the Economic and Social Committee

Göke FRERICHS