Opinion of the European Committee of the Regions — The European pillar of social rights
Date: 2016-10-11
Institutions: Commission for Social Policy, Education, Employment, Research and Culture, European Committee of the Regions
Subjects: EU employment policy, European social policy, anti-discriminatory measure, labour market, principle of subsidiarity, social rights, socioeconomic conditions, welfare, working conditions








C_2017088EN.01005901.xml










21.3.2017   


EN


Official Journal of the European Union


C 88/59





Opinion of the European Committee of the Regions — The European pillar of social rights
(2017/C 088/12)












Rapporteur:



Heinz-Joachim Höfer (DE/PES), Mayor of Altenkirchen





Reference document:



Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Launching a consultation on a European Pillar of Social Rights
COM(2016) 127 final









POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

General comments









1.


welcomes the proposal for a European Pillar of Social Rights as it would help implement the European Union’s aims set out in Article 3 TEU, namely that it shall ‘work for the sustainable development of Europe based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress’ (…), ‘combat social exclusion and discrimination, and (…) promote social justice and protection, equality between women and men, solidarity between generations and protection of the rights of the child’ and ‘promote economic, social and territorial cohesion, and solidarity among Member States’;












2.


expects the European Commission to comply with the principle of subsidiarity when proposing the European Pillar of Social Rights and to respect the broad competences of national and sub-national authorities in social policy; it must also be ensured that the content of the pillar is compatible with the general principles of the Better Regulation agenda;












3.


welcomes the fact that the European Commission has decided to launch an open consultation on a pillar of social rights because, after years of crisis with high unemployment rates and austerity, a political discussion about a new initiative for social rights was much needed; considers that the Pillar can make a contribution to the coordination of social policies and rights in the Member States and foster upwards convergence;












4.


welcomes the Commission’s effort to discuss the scope and the content of the future social pillar and stresses the added value of involving local and regional authorities in such a debate, especially by strengthening and highlighting the importance of the territorial dimension for socioeconomic topics that are part of the overall EU policy approach and of a place-based approach when it comes to designing and implementing socioeconomic policies;












5.


reiterates its call for better coordination of economic and social policies between the European and national levels of government under the European Semester, and calls for local and regional authorities to be more closely involved in this coordination (1);












6.


insists that this social pillar must be developed on the basis of demonstrable local, regional and national added-value and should be horizontal in nature, to ensure that better account is taken of the social dimension of the Economic and Monetary Union’s (EMU) economic governance, which is crucial for the functioning and viability of the EMU and for the legitimacy of the European integration process;












7.


highlights that if this initiative is translated into strong social safeguards including for access to health, educational, social services, together with social services of general interest, and social security services, it can be seen as a coordinating tool that provides support to Member States to address social inequalities, to combat social dumping, to drive forward upward convergence of social standards in the euro area and to consolidate the EU’s aims of inclusive and sustainable growth;












8.


reiterates its call that, in order to improve the social dimension of the EMU, it is crucial to tackle regional disparities by modernising, where appropriate, existing legislation and/or envisaging new measures to support greater convergence; suggests, therefore, that regional disparity indicators be added to the EMU social indicators scoreboard (2);












9.


expects that the European Commission proposal for a European Pillar of Social Rights will help to further strengthen the social rights — both individual and collective — listed in the Charter of Fundamental Rights of the EU (3);












10.


welcomes the fact that key gender policy challenges are raised in the European Commission’s consultation exercise, such as the low participation of women in the labour market and the gender segregation of the labour market (principle 5), the gender gap in wages and pensions (principles 5 and 13), the lack of balance between work and family life (principles 5 and 18) and the multiple burden on women because of long-term care of relatives (principle 17). The European Commission should also explain whether the proposed measures are sufficient to reduce discrimination against women or whether, in addition, further mainstreaming of gender issues is needed;












11.


welcomes the fact that, although the Commission proposal only applies to Member States in the euro area, EU Member States outside the euro area were also invited to participate;












12.


emphasises that closer coordination of economic and fiscal policies in the Eurozone must go hand in hand with full consideration of the social dimension to the EMU;












13.


asks that greater emphasis be placed on the financing of social policy which is a particular challenge for local and regional authorities. Such challenges arise not only because spending on welfare systems vary widely across Europe, but also because overall investment at subnational level is going down (4);












14.


underlines the importance of a strong European social agenda, in which competitiveness and social justice complement each other, with fair wages — an area in which the EU has only coordinating powers and which is determined by each Member State either by law or through collective bargaining, and in any case in full respect of its traditions and practices — being a key component; such an agenda must fully uphold the principle of non-discrimination, in accordance with Article 21 of the Charter of Fundamental Rights;












15.


stresses that, in view of rising youth unemployment and the growing number of people in or at risk of poverty in recent years, the social pillar must also take account of the urgent need to reduce poverty, foster social inclusion and tackle youth unemployment;












16.


highlights the need for closer cooperation between the different levels of government, sectors and stakeholders, including a stronger role for social partners and the introduction of an efficient instrument for civil dialogue, which would strengthen the democratic legitimacy of the Union;












17.


points out that some local and regional authorities have used their public procurement policies to encourage and require contractors to pay fair wages to their staff, which can be an additional lever to encourage organisations to adopt fair employment practices. Reminds to this effect that EU law does not preclude the exclusion from a procedure for the award of a contract of a tenderer who refuses to undertake to pay staff concerned the statutory minimum wage (5);












18.


expresses its regret that the Commission’s proposal does not put further emphasis on tackling the challenges accompanying the changing world of work, including increased digitalisation, which should be addressed by focusing in particular on the development of digital skills in the labour force. Indeed, the emergence of non-standard forms of work leads to new risks of ‘grey zones’ in terms of labour rights and access to welfare: therefore calls on the Commission to properly define flexibility in working conditions, so as to strike a balance between flexibility and security;












19.


recalls that at a time of rapid digitisation of the economy and society, it is important to provide people, especially older people, with the digital skills needed to achieve a more inclusive social model;












20.


highlights that skills acquisition through education and training, and access to life-long learning matter more than ever in light of the changing work realities, while underlining the importance of skills being matched with labour market needs;












21.


is convinced that the democratic legitimacy of EMU can be strengthened if Europe’s citizens believe that the principle of social progress and equality of opportunity is being safeguarded so that employment and social standards are not being treated as peripheral to the macroeconomic adjustment process;












22.


urges that the European Pillar of Social Rights ensures that local and regional authorities are supported in their endeavours to implement appropriate employment and social policies, including support and capacity building to develop Work Life Balance policies, in line with the recent European Commission proposal. This approach requires that local and regional challenges be addressed in these areas and that sharing of best practice be facilitated at local and regional level;












23.


notes that Europe is facing huge social challenges, with striking economic and demographic divergences across European regions, with many young people facing numerous challenges such as an education system mismatched with the needs of the market, difficulties in finding employment, mobility obstacles especially for young people who live in small communities, located in peripheral, outermost, island and rural areas, forced mobility, or social isolation. There is therefore no ‘one-size fits all’ policy solution, and any policy intervention — either public or private — must take into account local and regional specificities, such as the case of regions facing demographic challenges and/or brain drain, while ensuring minimum social, economic and educational opportunities for young people. At the same time, in light of the persistently high rate of youth unemployment, the CoR reiterates the importance of extending the benefits of the Youth Guarantee to cover young people up to the age of 30 (rather than 25) (6);












24.


insists that the European pillar of social rights should consider a priority the need for universal access to quality welfare systems and public services, while also respecting Member States’ competences in this area;












25.


highlights the role of Regional and Local Government in pioneering flexible working practices and creating fair work conditions at the workplace, in consultation with employees and trade unions and based on the principles of equality and respect;












26.


suggests that the Commission consider the possibility of introducing incentive measures for EMU countries that implement reforms to achieve the social objectives of the Europe 2020 strategy and to combat social imbalances;












27.


urges the Commission to support Member States in their efforts to modernise social protection systems within the framework of the European Semester; further expects the Commission to propose a fiscal capacity for the Eurozone, open to all Member States, which could also allow for a European coordination of anti-cyclical policies;












28.


recalls that being unemployed for a long time can create a vicious cycle leading to low employment opportunities, skills erosion, lower earning potential and increasing the lifetime risk of poverty and social exclusion;












29.


points out that Europe’s ageing population will lead to gaps in labour markets in many Member States, and that mobile workers can provide one way of addressing this challenge; shares the Commission’s view that the number of mobile workers in Europe is still too low to be considered a real European labour market; it is therefore essential that the qualifications of mobile EU professionals are recognised in a fast, simple and reliable way (7);












30.


stresses that elderly citizens are amongst those population groups most likely to be particularly at risk of poverty and social exclusion. In most Member States, it is primarily people living in peripheral rural areas or in disadvantaged urban areas who are affected. Moreover, elderly people are often those continuing to live in depopulated or even disappearing communities;












31.


as stated in the Committee of the Regions opinion on ‘The EU response to the demographic challenge’, more effective and efficient public services need to be put in place and new ways of improving the quality of life as well as the physical, mental and social well-being of all citizens should be established. We need to take advantage of the opportunities presented by demographic change, which include employment opportunities associated with the services for older people that are part of the ‘silver economy’ (physical and digital services, those relating to healthy lifestyles, etc.). Having access to these services is one of their fundamental rights;












32.


points out that Europeans live longer, hence the costs of health and social care will rise substantially to about 9 % of EU GDP in 2050; in this sense ICT can be a powerful ally for maintaining cost-efficient and high-quality health and social care, as it empowers people of every age to better manage their health and quality of life, in any place;












33.


recalls that investment in ICT provides a key tool for regions and cities in their efforts to tackle the challenge of an ageing population. Such investment can enhance quality of life, support social inclusion, help them to stay informed about new developments at European or national level and enable their accumulated experience and skills to contribute to the development of society and stimulate competitiveness and growth at local and regional level through new products and services;





Specific recommendations on amending the Annex









34.


in Principle 2(a) (Chapter 1), after the sentence ‘Equal treatment shall be ensured … non-permanent employment relationships shall be prevented’, add ‘, stepping up the compliance with labour contract standards required of companies in order to access EU funding and so avoid the risk of social dumping’;












35.


Principle 2(b) (Chapter I) should be worded as follows: ‘Flexibility in the conditions of employment can offer a gateway to the labour market and maintain employers’ ability to swiftly respond to shifts in demand; however, the transition towards open-ended contracts should be ensured wherever possible;












36.


the first sentence of Principle 7(c) (Chapter II) should read: ‘Dismissal of a worker who has successfully completed their probationary period is to be motivated, preceded by a reasonable period of notice defined at national level, and there shall be an adequate compensation attached to it, if dismissal is unjustified, as well as access to rapid and effective appeal to an impartial dispute resolution system’;












37.


the first sentence of Principle 8(a) (Chapter II) should read: ‘Employment shall be fairly remunerated, enabling a decent standard of living. Wages, and where applicable minimum wages, shall be set through a transparent and predictable mechanism by each Member State either by law or through collective bargaining, and in any case in full respect of its traditions and practices. Wage setting shall safeguard access to employment and the motivation to seek work, and wages shall evolve in line with productivity developments’;












38.


Principle 11(a) (Chapter III) should read: ‘Benefits and social protection services shall be integrated as much as possible, at least in neighbouring territories and where local authorities play a bigger role, in order to strengthen the coherence and efficiency of these measures and support integration into society and the labour market’;












39.


the first sentence of Principle 12(a) (Chapter III) should read: ‘Everyone shall have timely access to good quality preventive and curative health care as well as care for elderly and/or dependent persons, and the need for healthcare or elderly care shall not lead to poverty or financial strain’;












40.


the first sentence of Principle 12(c) (Chapter III) should read: ‘All workers, regardless of contract type, shall be ensured adequately paid sick leave (reflecting the rights they have acquired under national social security systems) during periods of illness; the participation of the self-employed in insurance schemes shall be encouraged’. Monetary benefits in the event of illness cannot be defined without considering Member States’ other social security rules. Otherwise, this would lead to claims to social security disconnected from personal contributions, which in turn would run counter to the subsidiarity principle;












41.


the first sentence of Principle 13(a) (Chapter III) should read: ‘… such as by adequately crediting care periods where the employee still has the right to wage payments or compensation for loss of income, in accordance with the employee’s accrued rights under the social security system. According to national specificities, the participation of the self-employed in pension schemes shall be encouraged’;












42.


Principle 15(a) (Chapter III) should read: ‘Adequate minimum benefits shall be ensured, in accordance with national practice, for those who lack sufficient resources for a decent standard of living. For people who are of working age and fit for work, this state guarantee of a minimum subsistence level shall be linked to cooperation requirements, such as participation in active support to encourage labour market (re)integration. Receiving these benefits should not create barriers to employment’;












43.


Principle 18(b) (Chapter III) should read: ‘Measures shall be taken at an early stage and preventive approaches shall be adopted to address child poverty, including specific measures to encourage the attendance of children with disadvantaged backgrounds. For this reason protection systems shall be adapted, placing emphasis on child protection and the protection of families with young children’;












44.


Principle 19(a) (Chapter III) should read: ‘Access to social housing or housing assistance shall be provided primarily for disadvantaged or socially vulnerable people including the homeless and for those living in accommodation that is harmful to their health, unsuitable or overcrowded. Substandard social housing shall be abolished. Vulnerable persons who are not given alternative accommodation shall be protected from eviction.’ (1) As set out in previous opinions, the CoR proposes a broadening of the definition of social housing in order to reflect the Member States’ discretion in planning, delivering, financing and organising the construction of social housing, guarantee the democratic right to choose, and give priority to the right to adequate and affordable accommodation because of the inability of the current housing markets to meet accommodation needs. (2) Concerning evictions, they should not be prohibited per se as this would run counter to the right to property and the subsidiarity principle. The protection against evictions should therefore be limited to vulnerable persons and be complemented by the requirement of the provision of alternative accommodation. (3) Lower- and middle-income households should have no legal right to aid towards home ownership — as is also the case in the EU Charter of Fundamental Rights — especially since the economic and social usefulness of this depends on global, national, regional and local contexts as well as on policy priorities, which should be set at national, regional or local level, in accordance with the subsidiarity principle;












45.


Principle 20(a) (Chapter III) should read: ‘Affordable access to essential services of general economic interest, including electronic communications, energy, transport, and financial services, shall be ensured for all people. Measures to facilitate access to these services shall be supported’. The concept of ‘essential services’ is not a component of European primary or secondary law, unlike services of general economic interest (see also Article 36 of the EU Charter of Fundamental Rights). Additionally, access to such services should be improved more generally, not just for those in need.





Brussels, 11 October 2016.


The President of the European Committee of the Regions

Markku MARKKULA




(1)  CoR opinion on The social dimension of the Economic and Monetary Union (CDR 6863/2013).

(2)  Resolution on the European Commission work programme 2016 (COR-2015-5929).

(3)  Chapter IV — SOLIDARITY.

(4)  https://www.oecd.org/els/soc/OECD2014-Social-Expenditure-Update-Nov2014-8pages.pdf

(5)  Judgement of the Court of Justice of the EU in Case C-115/14 (of 17 November 2015) found compatible with EU law legislation of a regional entity of a Member State requiring tenderers and their subcontractors to undertake to pay a minimum wage to staff performing the services covered by the public contract.

(6)  CDR789-2013.

(7)  Modernisation of the Professional Qualifications Directive (2013/55/EU of the European Parliament and of the Council) (OJ L 354, 28.12.2013, p. 132)