WRITTEN QUESTION E-1466/03 by Herman Schmid (GUE/NGL) to the Commission. Downsizing.
Date: 2003-04-29
Institutions: European Parliament, Provisional data
Subjects: European Employment Strategy, competitiveness, full employment, industrial restructuring, job creation, job cuts, social dialogue

15.1.2004

EN

Official Journal of the European Union

C 11 E/185

General requirements for the approval of category 1 and category 2 processing plants (Article 13) and for
approval of category 3 processing plant (Article 17) are set out in Chapter I of Annex V to the above-
mentioned Regulation.

Paragraph (1) (a) of Chapter I of Annex V to Regulation (EC) No1774/2002, as amended by Regulation
(EC) No 808/2003 of 12 May 2003, foreseen that premises for the processing of animal by-products (ABP)
must not be at the same site as slaughterhouses, unless located in a completely separate building.

However, a conveyer system may link an individual processing plant to a slaughterhouse on the same site
provided the following conditions are met:

(cid:1) There are separate entrances, reception bays, equipment, exits and personnel for the processing plant

and the slaughterhouse; and

(cid:1) The animal by-products to be processed originate on the same premises.

A fundamental revision of the Community rules applicable to ABP was necessary in the light of a wide
variety of approaches existing in Member States as regards the financial support for processing, collection,
storage and disposal of ABP. To ensure that the conditions of competition between agricultural products
if necessary, to take appropriate
are not affected,
the
measures at Community level. On the basis of Article 36 of Regulation (EC) No1774/2002,
Commission is preparing a report on the financial arrangements in Member States for the processing,
collection, storage and disposal of animal by-products accompanied by appropriate proposals.

it has been necessary to carry out an analysis and,

Concerning information to the public opinion on the above-mentioned Regulation, the Commission
recently issued guidance clarifying a number of issues raised by industry in relation to the provisions of the
Regulation. Copy of the guidance is available on the Commission web-site: http://europa.eu.int/comm/
food/fs/bse/legislation.

(1) OJ L 273, 10.10.2002.
(2) OJ L 117, 13.5.2003.

(2004/C 11 E/211)

WRITTEN QUESTION E-1466/03

by Herman Schmid (GUE/NGL) to the Commission

(29 April 2003)

Subject: Downsizing

Between 1993 and 1995, nearly two million jobs disappeared in the USA as a result of downsizing. The
cutbacks affected companies which were performing well (Thurow, The Future of Capitalism, London
1996). The aim of downsizing is to reduce staff and boost efficiency. Several studies show, however, that
there has been no improvement in the efficiency of the companies concerned and that, more often than
not, the measures have resulted in economic inefficiency (Pfeffer, Flexibility on the labour market: Do
companies really know best? Stockholm 2000, Swedish Council for Working Life and Social Research). In
addition, there has been an increase in ill-health among the staff remaining after the cutbacks. Downsizing
tends to produce stress since the chances of promotion can be expected to decrease as the company levels
down and the work can be expected to intensify if fewer staff are to carry out the same amount of work as
previously (Jackson, Downsizing and lean organisations in Barklof (ed.) The pain threshold? An anthology
concerning the effects on health in lean organisations, Stockholm 2000, Swedish Council for Working Life
and Social Research).

Does the Commission consider downsizing to be a sustainable strategy for growth and new jobs?

C 11 E/186

Official Journal of the European Union

EN

15.1.2004

Is downsizing consistent with the European employment strategy’s objectives of full employment, social
inclusion and quality work?

What alternative ways of attaining the objective of full employment can the Commission envisage?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(23 June 2003)

The European Employment Strategy contributes to the Lisbon agenda for Europe to become the most
competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth
with more and better jobs and greater social cohesion.

that Member States

The EC Treaty provides
their employment policies.
Consequently they are expected to design their employment policy mix in such a way as to implement
the Employment Guidelines and help to achieve the Union-level objectives, according to national
circumstances and in line with the overall recommendations set out in the Broad Economic Policy
Guidelines. The latter aim at economic stability and sustainable growth and take due account of the recent
changes in the economic climate and their implications for each individual Member State.

remain responsible for

In the global economy, the achievement of more jobs is dependent on a competitive and dynamic business
community to new economic structures and on high adaptable productivity in the economy at large. In
this context, it is the role of the Employment Guidelines to help Member States to design favourable
framework conditions for job creation which are compatible with sustainable economic growth, whereas
the individual enterprise has to decide how to operate and to adapt to a changing economic environment.
The Commission does not consider that downsizing per se in general is inconsistent with the European
Employment Strategy. Downsizing and cost reduction is often needed for the company to survive and
preserve the sustainability of the remaining workplaces. However, the Employment Guidelines promote
measures and flexible solutions which can act as alternatives to downsizing or soften the negative effects of
restructuring for the individual worker, including the development of human capital to strengthen the
adaptability of the company and the individual employee. Moreover, the references mentioned by the
Honourable Member just confirm the importance for the European Employment Strategy to give increased
consideration to the issues of job quality and Corporate Social Responsibility.

In its reply to the oral question H-0281/03 of Mr Schmid given during question time of Parliament’s May
2003 plenary session (1), the Commission already illustrated how several of the Employment Guidelines
contribute to the dynamism of businesses to create and maintain jobs, and to meet needs of restructuring
in a positive way conducive to employment. It should also be added that the Employment Guidelines call
for the involvement of the social partners to contribute to the implementation of the Guidelines,
in
particular concerning the management of change and adaptability.

The Commission would like to refer the Honourable Member to its reply to his Written Question E-1459/
03 (2),
in which it detailed a number of Community instruments and on-going policies aiming at
addressing the social impact of corporate restructuring.

In addition to that, the Commission would like to underline the fact that one of the main objectives of
those instruments and initiatives, and in particular- the on-going social partners’ consultation on corporate
restructuring, consists precisely in promoting an anticipative and long-term approach to the development
of employment within companies, rather than (cid:1) basing decisions affecting jobs on a short-term analysis of
the needs of companies.

(1) Written answer of 13.6.2003.
(2) OJ C 280 E, 21.11.2003, p. 148.