WRITTEN QUESTION E-0085/03 by Ilda Figueiredo (GUE/NGL) to the Commission. Relocation of firms and unemployment.
Date: 2003-01-23
Institutions: European Parliament, Provisional data
Subjects: EU aid, Portugal, collective dismissal, economic consequence, financial aid, footwear industry, multinational enterprise, social impact, transfer of businesses

14.8.2003

EN

Official Journal of the European Union

C 192 E/153

(2003/C 192 E/188)

WRITTEN QUESTION E-0058/03

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

(22 January 2003)

Subject: The Commissioner for Agriculture and Fisheries, Mr Franz Fischler, and the principle of relative

stability in the CFP

During the European Parliament’s debates on the CFP reports the Commissioner for Agriculture and
Fisheries, Mr Franz Fischler, said that the principle of relative stability could not be modified as part of the
common fisheries policy reform, since it constituted part of that policy. Where in the Treaties is it stated
that the principle cannot be modified if the CFP is reformed?

Answer given by Mr Fischler on behalf of the Commission

(4 March 2003)

The principle of relative stability applied under the common fisheries policy is not provided for in the
Treaties and so is not part of the Community’s primary legislation.

The Council can amend the principle by qualified majority. When considering the reform of the common
fisheries policy the Commission felt it was appropriate to propose maintaining the principle. Relative
stability is part of the basic policy balance on which the common fisheries policy rests, and a large
majority of the Member States favoured keeping it. The Commission does not believe that a valid,
acceptable alternative system exists to replace it.

The Commission has also acknowledged that the principle might be reviewed in the medium or long term.
Furthermore, as part of the reform, the Commission proposed organising in 2003 debates on better
economic management of Community fishing and it will present a report on this topic.

(2003/C 192 E/189)

WRITTEN QUESTION E-0085/03

by Ilda Figueiredo (GUE/NGL) to the Commission

(23 January 2003)

Subject: Relocation of firms and unemployment

The footwear multinational C & J Clark has just announced that it is to close its factory in Castelo de Paiva,
Portugal. This will cause the loss of around 600 jobs,
in an inland region without any alternative
employment which two years ago suffered the tragic collapse of a bridge, killing 58 people.

Two years ago, the same multinational closed another factory in Arouca, making around 400 workers
redundant.

Bearing in mind the seriousness of the situation, can the Commission answer the following questions:

1. Has the multinational C & J Clark received any type of Community support in Portugal or in any other

EU country?

2. What view does the Commission take of the social responsibility shown by C & J Clark, which within
the space of little more than two years has sought to close two important firms, employing mostly
women, located in inland areas of Portugal where it was or is the main employer?

3. What steps will it take to prevent such irresponsible action on the part of multinationals which,
despite healthy order books, decide to relocate to countries outside the European Union, thereby
worsening the unemployment situation and strangling development in deprived areas of
inland
Portugal?

C 192 E/154

Official Journal of the European Union

EN

14.8.2003

Answer given by Ms Diamantopoulou on behalf of the Commission

(1 April 2003)

The firm ‘C. & J. Clark (cid:1) Fábrica de Calçado, Lda.’ has received the following aid:

Files

890098 P1

890101 P1

Old fund

European Social Fund
(ESF)

172 784

61 453

(in euros)

OSS

141 369

50 250

Community Support Framework II

The firm has received support under PEDIP II and RETEX, cofunded by the European Regional
Development Fund (ERDF) and the ESF, under measure 3,1 ‘Diagnósticos e Auditorias Empresariais’ and
measure 4.6. ‘Acção A (cid:1) Acções de Demonstração Empresarial’.

The aid approved amounted to PTE 136 402 283. The following amounts were paid:

ERDF + OE (1)

ESF

OSS

(1) Orçamento da Economia.

(in euros)

Amounts

589 866

124 402

41 467

The Commission has asked the other Member States to let it know whether Clark has also received
Community support there. It will keep the Honourable Member informed of the replies.

First of all, it should be pointed out that Council Directive 98/59/EC (1) concerning collective redundancies
provides for information and consultation with the workers’ representatives in cases where the employer is
contemplating such redundancies. These consultations should be carried out in good time with a view to
reaching agreement and cover, at least, ways and means of avoiding collective redundancies or reducing
the number of workers affected as well as of mitigating the consequences by recourse to accompanying
social measures. These measures aim,
inter alia, at aid for redeploying or retraining workers made
redundant.

As regards relocation of enterprises, the Commission advocates the idea that, when taking decisions,
enterprises should always take into account the effects that those decisions could have on their employees
as well as on the social and regional context. This has recently been underlined in the Commission
Communication concerning Corporate Social Responsibility (CSR): A business contribution to Sustainable
Development (2).

Furthermore, the Commission invited the European social partners to engage in a dialogue on anticipating
and managing change with a view to apply a dynamic approach to the social aspects of corporate
restructuring. The social partners agreed to incorporate this issue in their recently adopted pluriannual
work programme (3).

(1) Council Directive 98/59/EC of 20 July 1998 on the approximation of the laws of the Member States relating to

collective redundancies (cid:1) OJ L 225, 12.8.1998, p. 16.

(2) COM(2002) 347 final.
(3) Orçamento da Segurança Social.