CELEX: 51998PC0322
Language: en
Date: 1998-05-20
Title: Draft Council Decision amending Decision 70/532/EEC setting up the Standing Committee on Employment in the European Communities

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                Brussels, 20.05.1998
                                                COM(1998) 322 final
             COMMUNICATION FROM THE COMMISSION
         adapting and promoting the social dialogue at Commumty level
                                      Draft
                             COUNCIL DECISION
amending Decision 70/532/EEC setting up the Standing Committee on Employment
                          in the European Communities
                         (presented by the Commission)
 ---pagebreak---  ---pagebreak---                          TABLE OF CONTENTS
1.  INTRODUCTION                                                               3
    1.1. A new context                                                         5
    1.2   Who are the social partners?                                         5
2.  PROMOTING THE EXCHANGE OF INFORMATION                                      6
3.  ADAPTING THE CONSULTATION PROCEDURES                                       7
    3.1   Consultation at cross-industry level                                 8
    3.2   Consultation at sectoral level                                       9
    3.3   Consultation under Article 3 of the Agreement on Social Policy      11
4.  EMPLOYMENT PARTNERSHIP                                                    12
5.  EMPHASIZING JOINT-ACTION AND NEGOTIATION                                  14
5.1 Joint action and negotiation at cross-industry level                      16
    5.2   Joint action and negotiation at sectoral level                      17
    5.3   Negotiation under Article 3(4) of the Agreement on Social Policy ...17
    5.4   Implementation of agreements concluded at Community level           18
          5.4.1    Implementation by the social partners                      18
          5.4.2    Implementation through Community legislation               19
6.   NEW PROSPECTS OPEN UP                                                    20
     6.1  Social dialogue and enlargement                                     20
     6.2  Developing a European industrial relations and partnership
          culture                                                             21
          6.2.1    Transnational decentralized dialogue                       21
          6.2.2    Support to management and labour                           21
          6.2.3    Supporting the European Industrial Relations Centre        22
     6.3 The means for promoting the social dialogue                          22
     6.4. A Reflection Process: Study Group                                   23
 ---pagebreak--- 1.      INTRODUCTION
This Communication sets out the means which the Commission intends to use to adapt
and promote the social dialogue. The purpose is to identify the steps that need to be taken
to strengthen the social dialogue at European level, make it more adaptable and to link the
work of the social partners more closely to the development and implementation of
EU policies.
European social dialogue has already made significant headway, and the Social Protocol,
which has been integrated into the main body of the Treaty of Amsterdam, gives
considerable powers and responsibilities to the social partners. Two important European
agreements, on Parental leave and Part-time work, which subsequently have been adopted
as Directives by the Council under the Social Protocol procedure, have already
been concluded.
Furthermore, the social partners at all levels have displayed an increasing interest in
the development of the dialogue at European level. This can be seen, for example,
in the joint-contributions at both cross-industry and sectoral levels on the
1998 Employment Guidelines and the framework agreement on Employment concluded
in the agricultural sector.
The role of the social dialogue in tackling key issues was highlighted at the extraordinary
European Council meeting on employment held on 20-21 November 1997. The need for
the social partners to make a contribution at all levels and stages of the new employment
strategy was strongly emphasized by the European Council.
Closer European integration and the inclusion of new aspects in the Community
framework, notably employment, has extended the scope of the social partners' activities,
particularly as regards modernizing the organization of work, anticipating structural
change and providing backup for restructuring, adapting terms and conditions of
employment to allow for the development of new forms of work, reconciling family life
and working life, integrating young people into the world of work and access to
vocational training.
The recently adopted Social Action Programme 1998-2000 ' seeks to take account of these
new challenges and opportunities, in particular those provided by the Treaty of
Amsterdam. This provides a platform for strengthening social policy and gives a key role
to the social partners. In order to allow the social partners to play this role fully, the
Social Action Programme states that the Commission will bring forward the
present Communication.
The Commission adopted in September 1996 a consultation Communication2 in order to
gather as wide a range of views as possible on the means to be employed to promote and
developing the European social dialogue.
       COM(1998) 259 of 29 April 1998.
       COM(96) 448 final of 18 September 1996 concerning the development of the social dialogue at
       Community level.
 ---pagebreak--- During 1997 more than 80 detailed replies were received from employers' and workers'
European and national organizations, European institutions3 and from national authorities.
A European Forum was held in the Hague in April 1997 and an initial synthesis of the
contributions was subsequently drawn up.
This Communication draws the principal lessons from this consultation, and from recent
developments. It introduces a number of key actions in the four main fields through which
the Commission intends to adapt and promote the future social dialogue:
Information: The Commission will set in place more efficient channels for the exchange
of information with all the social partners and it will encourage the European social
partners to follow up the outcome of the European social dialogue with their affiliates at
national level.
Consultation: The Commission will replace the existing structures at sectoral level by
new more flexible social dialogue bodies. At cross-industry level the advisory committees
will be rationalized and the Commission will ensure that all social partners are effectively
consulted on ongoing policy developments.
Employment Partnership: The Commission will propose to reform the Standing
 Committee on Employment in order to strengthen the exchange between the Commission,
the Council and the social partners, on the basis of the Council Resolution on the
 1998 Employment Guidelines.
Negotiation: The Commission will continue to encourage the further development of
 contractual relations both at cross-industry and sectoral levels.
 An important and challenging task is also to encourage the applicant countries to develop
 their own independent social dialogue structures and activities and to assist the social
 partners to develop links with their counterparts in these countries.
 With a view to promoting and to improving the working of the social dialogue the
 Commission has set itself three objectives: A more open social dialogue, a more effective
 dialogue between the European institutions and the social partners, and the development
 of a real collective bargaining at European level.
         See the European Parliament Resolution on the Commission Communication "Concerning the
        development of the social dialogue at Community level COM(96) 448 final" of 18 July 1997 and the
         Opinion of the Economic and Social Committee on the same issue adopted on 29-30 January 1997.
 ---pagebreak--- 1.1.    A new context
In formulating its proposals, the Commission has taken account of the current climate
as follows:
        The recent progress in the employment field provides for a process of coordination
        of employment policies at European level, opening up new areas to the
        Community social dialogue. The Council Resolution on the 1998 Employment
        Guidelines4 makes specific appeals to the social partners at European and
        national level in relation to adapting forms of work and boosting vocational
        training. The National Action Plans have offered the social partners the
        opportunity to contribute to employment policy5.
        The EMU process and economic convergence have progressively made visible the
        importance of the role of social partners, not only in influencing the local
        competitiveness and employment conditions, but also as a major player in the
        achievement of growth and an employment-friendly overall policy mix in the Euro
        zone and in the Community.
        The Treaty, which since 1986 has conferred on the Commission the task of
        promoting the social dialogue, has been reinforced considerably. Under the
        Agreement on Social Policy, the social partners have the right to be consulted in
        advance. What is more, it opens up a genuine bargaining area where European
        social provisions can be established on the basis of negotiations between the social
        partners. The Amsterdam Treaty extends these arrangements to the field of social
        legislation which thus will be applicable to all Member States.
European integration is gaining ground and because of the integration of our economies
the social partners are increasingly having to take this development into account. Recent
developments connected with the restructuring of companies directly concern the
European social partners and they will be involved in the discussions on the reports of the
new high-level group on the economic and social implications of industrial change6.
1.2     Who are the social partners?
The social partners are different in nature from other organizations, like pressure or
interest groups, because of their ability to take part in collective bargaining. In a European
context the organizations continue to evolve. National affiliates continue to join and new
groups are being set up.
       Adopted by the Council on 15 December 1997, (OJ C 30 , 28.1.1998, pp. 1-5).
       Communication from the Commission "From Guidelines to Action: The National Action Plans for
       Employment" COM( 1998) 316, adopted on 13 May 1998.
       Set up following the extraordinary European Council meeting on employment
       20-21 November 1997 (see para. 28 of the Presidency's Conclusions).
 ---pagebreak--- Given this situation, the Commission launched, following the 1996 Communication, a
major study on representativeness of the cross-industry and sectoral organizations; a first
report will be ready early next year, followed by updates in coming years. The study is
being carried out along similar lines to the first survey on representativeness drawn up in
1992. The study will serve as an important tool for the Commission in order to monitor
the participation of organizations in the social dialogue.
The Commission's approach to participation in the different forms of social dialogue is
based on the following:
        widespread availability of information and consultation on general topics. All
        organizations so requesting are kept informed of the Commission's main
        initiatives and documents in the social field;
        targeting of representative organizations for the purposes of the consultation under
        Article 3 of the Agreement on Social Policy according to three criteria, established
         in the Communication7 of December 1993. The consulted organizations should:
         (1) be cross-industry or relate to specific sectors or categories and be organized at
         European level; (2) consist of organizations which are themselves an integral and
         recognized part of Member States' social partner structures and with the capacity
         to negotiate agreements, and which are representative of all Member States, as far
         as possible; (3) have adequate structures to ensure their effective participation in
         the consultation process;
         respect for autonomy as regards participation in negotiations.
 2.      PROMOTING THE EXCHANGE OF INFORMATION
 Access to information is crucial for the development of the social dialogue. It helps the
 European social partners to keep their members up to date on matters of direct interest to
 them, makes them aware of ongoing policy developments and thus provides the necessary
 input for dialogue at European level. In return, the European institutions are kept
 informed of the activities and thinking of the social partners and their members.
 The respondents to the consultative 1996 Communication called for reinforcement of the
 information channels and emphasized that the work and results of the European social
 dialogue are not sufficiently familiar to workers and employers in the Member States -
 although their interests are directly affected. Attention was also drawn to the increased
 need for effective information channels between the different players, sectors and levels
 of the dialogue.
 The Commission has recently put in place specific information tools that supplement its
 general information policy:
          the Social Dialogue Newsletter which keeps the social partners abreast of
          major events;
        COM(93) 600 final of 14 December 1993 concerning the application of the Protocol on
        Social Policy, para. 24.
 ---pagebreak---          an annual Status Report on the social dialogue;
         an interactive database with an electronic network to which the European social
         partners will be connected on line is under development with Commission support
         (European Social Dialogue On Line, ESDO).
The Commission has also developed the practice of quarterly information forums that
bring together the social partners at European level to discuss and exchange information
between the different actors and types of dialogue on matters of current interest. These
meetings have proven most useful, in bringing together the different strands of dialogue
and by providing social partners with an overview of the ongoing developments.
It is necessary to reinforce the exchange of information between the social partners and to
establish more effective internal and external information channels to disseminate the
results of the European social dialogue.
Kev actions
         The Commission will reinforce its current practice of assembling representatives
         of cross-industry and sectoral organizations at European level at a quarterly
         Liaison Forum for an exchange of information on Community policy and ongoing
         initiatives at all levels of the dialogue.
         The Commission will take steps to improve the diffusion of information to all
         European organizations representing management and labour.
         The Commission will ensure that the results of the dialogue (recommendations,
        joint opinions and agreements) are made known to the other European institutions
         and all other relevant actors.
3.       ADAPTING THE CONSULTATION PROCEDURES
The consultation procedures, which aim to improve the quality of Community policies
and proposals, have developed gradually, responding to the increasing needs for dialogue
with the social partners on the development of Community policy.
The Commission has consulted the social partners on an informal basis for many years
and it continues to consult all social partners who are affected by ongoing developments
at Community level with social policy implications including macroeconomic
development and policies.
 ---pagebreak--- 3.1     Consultation at cross-industry level
The Commission intends to systematically consult the cross-industry social partners on all
important developments in the economic and the social policy fields and to ensure
effective participation of all social partners in the consultations.
Another form of consultation on Community policies takes place in the
advisory committees8, tripartite fora whose role is to advise the Commission on the
formulation of specific policies and assist it in their implementation.
Despite some criticism of the usefulness of the advisory committees nowadays, a majority
of the respondents to the 1996 Communication concluded that these bodies still have an
important role to play. It was emphasized however that the working methods in several of
the Committees could be improved.
A good example of such a development was the recent decision of the
Advisory Committee on Safety, Hygiene and Health Protection at Work to revise its
internal working methods by reducing the number of plenary meetings and electing a
programme committee.
A coherent system for consultation on broad social policy developments should be
created. The work of the advisory committees should be aligned with general social
dialogue developments, in order to achieve minimum overlap in their fields of
competence and to ensure that the positions of the social partners in the committees are
 coordinated with the views expressed in other fora.
        There are currently six Advisory Committees with the following subject areas: Social Security for
        Migrant Workers, Freedom of Movement for Workers, European Social Fund. Vocational Training,
        Safety, Hygiene and Health Protection at Work and Equal Opportunities for Women and Men.
 ---pagebreak--- Key actions
        The Commission will develop and broaden its practice of consultations on those
        developments in the social policy field not covered by the formal consultations
        under Article 3 ASP, for example on green papers. It will involve all the
        representative social partners9 in these consultations. It will use the mechanism of
        the Liaison Forum, allowing a choice of the most appropriate consultation method
        (meetings, electronic mail, etc.).
        The Commission will propose10, following the commitments made in the recently
        adopted Commission Communication on an action plan for free movement of
        workers11, that the Advisory Committee on Social Security for Migrant Workers
        merge with the Advisory Committee on Freedom of Movement for Workers. This
        meets the wishes of most of the respondents and an earlier Recommendation12 of
        the social partners emphasizing the close interdependence of the Committees and
        the need to tighten the links between their work.
        Once the Amsterdam Treaty enters into force, there will be one legal base for
        proposals on health and safety at work and the legislative proposals in this field
        will fall under the process of consultation of the social partners. However, the
        Advisory Committee on Safety, Hygiene and Health Protection at Work will
        remain a key body for consultation on health and safety issues and
        the Commission will consult this body in parallel with the two-stage
        consultation process.
        The Commission will, on a case by case basis, adapt where necessary the
        structures of the advisory committees.
3.2     Consultation at sectoral level
The Commission receives input from the sectoral social partners on Community policy
through consultations on a number of social policy initiatives and, in the sectors where
there is a common policy, on the formulation and implementation of sectoral policies. The
sector-specific consultations are aimed at improving and harmonizing working conditions
and also, in some cases, improving the economic and competitive position of the
sector concerned.
9
       Invited on the basis of the annexed list of organizations formally consulted under Article 3 ASP.
10     This proposal will be made in the context of the ongoing amendments to Regulations (EEC)
       Nos 1408/71 and 1612/68.
       See the Commission Communication uAn Action Plan for Free Movement of Workers"
       COM(97) 586 final.
       See, for example, the Recommendation by the European Trade Union Confederation (ETUC), the
       Union of Industrial and Employers Confederations in Europe (UNICE), and the European Centre for
       Enterprises with Public Participation (CEEP) on the operation of the cross-industry advisory
       committees (June 1993).
 ---pagebreak--- Calls have been made for a more effective consultation process on specific sectoral issues.
Feedback on the subject of the consultation has to be timely to make sure that the views of
the social partners are reflected in the preparation of Community policies and proposals.
The respondents urged the Commission to improve the coordination of work within its
departments as far as the consultation procedures are concerned; however, they generally
prefer that overall responsibility for the sectoral dialogue remain with DG V.
Most respondents agreed with the Commission conclusion that the current structures often
hinder positive developments. The Joint Committees and informal working groups have
become over-institutionalized or have retained operational methods which have outlived
their usefulness.
In a number of industries the social dialogue is an innovation and is at the start-up stage:
exchanging information, learning about dialogue in a multicultural context, determining
the problems peculiar to the industry. Other sectors have not taken part in a social
dialogue as such at European level. However, other forms of consultation or co-operation
including the social partners have been put in place (for example, in the mixed
committees in the framework of the ECSC Treaty).
A more harmonized approach needs to be taken to the structures supporting the sectoral
 dialogue with a view to ensuring a more equitable treatment of the different sectors of
 activity and to enable all sectors to contribute in the most effective and substantial way to
 the development of the relevant Community policies. The Commission should be
 prepared to respond to the requests of any sector willing to make a significant
joint contribution.
 The sectoral social partners should be in a position to react effectively to the real
 challenges affecting the sector at Community level. They have a particular potential to
 provide the information needed to identify best practice and initiate benchmarking
 exercises at European level. They have a key role to play in the anticipation and handling
 of industrial change in the Community and will be involved in the discussions on the
 reports of the new high-level group on the economic and social implications of
 industrial chance.
                l x
                 s
 The sectoral social dialogue has been constantly enhancing its input at European level. In
 order for this development to continue and to improve the input in quantitative and
 qualitative terms, giving an increased added value at European level, it is necessary to
 replace the existing structures and encourage a more efficient dialogue.
                                                   10
 ---pagebreak--- Key action
      The Commission will establish a new framework within which the sectoral dialogue
      can continue its development. This framework will be applicable on the same terms
      to all sectors wishing to take part in social dialogue and will be easily extendable to
      new sectors. To this end the Commission has decided to adopt a decision on the
       establishment of new sectoral dialogue committees (see Annex ID, replacing all
      current sectoral dialogue structures.
      The new committees will constitute the key forum for sectoral dialogue
       (consultation, joint action and negotiations) and will be set up in all sectors which
       submit a joint request and are sufficiently well-organized with a meaningful
       European presence in line with the established criteria of representativeness.
      The operating procedures will be streamlined: one high-level plenary meeting
       each year, a restricted social partner delegation, reimbursement for maximum
       15 participants from each side.
      The Commission, through the DG most concerned with the issues on the agenda or
      DG V, will provide secretarial services; the meetings will normally be chaired by a
      delegate of the employers or employees, but a representative of the Commission
       will take the chair if both parties jointly ask it to do so.
       The Commission will ensure timely and substantial consultation on sector-specific
       issues with important social implications. Each sector will be firmly supported
       through a partnership between DG V and the other relevant DGs, including
       improved technical backup for the preparation of and follow-up to meetings.
3.3      Consultation under Article 3 of the Agreement on Social Policy
On the whole, the respondents considered that the two-stage consultation process initiated
under the Agreement on Social Policy was working satisfactorily in accordance with the
procedures laid down in the 1993 Commission Communication. It is clear that after the
entry into force of the Amsterdam Treaty, the process of consultation will be more
important than today since it will cover the legislative proposals on Community social
policy and which is to be adopted in all Member States. All actors will have to take their
role in ensuring that this remains a substantial and effective process.
The vast majority of respondents were in favour of maintaining the current criteria for
determining which organizations should be consulted. The ongoing representativeness
study will provide an important tool for the actual designation of the organizations to be
consulted under these criteria.
                                                    11
 ---pagebreak--- Some organizations not currently consulted would like to be involved in the process.
Furthermore, some organizations believed that the current six-week time limit for each
consultation stage should be extended, while other respondents emphasized the need to
keep to a strict time limit so as not to put the effectiveness of the Community legislative
procedure at risk. The latter should also be borne in mind with a view to the extended
application of the consultation procedures under the Amsterdam Treaty.
Key actions
        The formal consultation on proposed legislation in the social policy field will
        continue to be based upon the procedures laid down in the 1993 Communication.
        This means that the general six-week time limit for consultations will be
        maintained. The Commission will, however, be prepared to adapt the deadline in
        particular cases depending on the nature and complexity of the subject.
        An updated list of the organizations responding to the three criteria for
        determining who should be consulted can be found in Annex I. The Commission
        will revise the list periodically, taking into account the results of the ongoing
        representativeness study.
4.      EMPLOYMENT PARTNERSHIP
Tripartite discussion on employment takes place at meetings between representatives of
the social partners, the Council and the Commission. The purpose, in addition to the
specific priorities of each of the parties, is to determine shared objectives. The key body at
European level has been the Standing Committee on Employment13, set up in 1970.
There has been quite a lot of criticism of the operation of this Committee as it now stands.
Most of the Committee members agree that its operations are out-cf-date: as are the
membership, the working methods and the use to which its results are put.
Moreover, the context for tripartite dialogue at Community level has been transformed in
recent years:
 1.     The tripartite approach has become more relevant in a number of the
        Member States involved in the conclusion of employment pacts.
2.      In the recent debates on flanking measures for industrial restructuring, partnership
        has been considered one of the most important approaches that should
        be promoted.
 13
       Council Decision of 14 December 1970 (OJ L 273, 17.12.1970).
                                                    12
 ---pagebreak--- 3.      The incorporation of a new employment title in the Amsterdam Treaty and the
        application of these arrangements has changed the direction of the tripartite
        dialogue. The implementation of the Employment guidelines and the monitoring
        of their application raise fresh challenges and the social partners will be called
        upon to take up positions in that context. Social partners will need to shoulder
        their own responsibility for supporting employment guidelines. This would
        involve a comprehensive approach integrating all the necessary elements of
        adaptability-modernization of the legislative framework, updating collective
        agreements and bargaining, new forms of work organization and the management
        of working time.
Furthermore, recent initiatives to encourage new forms of tripartite dialogue, have led to
an increase of fora, in parallel to the meetings at Ministerial level within the framework of
the Standing Committee on Employment, where the Council and the social partners meet
to discuss employment issues, such as the meetings between the Employment and Labour
Market Committee Steering Group and the social partners, and the meetings between the
Troika of Ministers and/or Heads of State and the social partners.
All these developments and the undisputed lack of efficiency of the Standing Committee
in its present form require a new rationalized process allowing the social partners to
contribute in the most effective way to the development and implementation to the
Employment Guidelines and Broad Economic Orientations.
Key actions
   The Commission proposes to reform the Standing Committee on Employment14
   as follows:
   The tasks laid down in the Decision of 1970 setting up the Committee are still relevant
   today: "to ensure ... that there shall be continuous dialogue, joint action and
   consultation between the Council, ... the Commission and the two sides of industry in
   order to facilitate co-ordination by the Member States of their employment policies in
   harmony with the objectives of the Community".
   Because it is called upon to discuss questions relating to trends in employment and
   drafts submitted for discussion within the Council, the Committee is the forum for the
   expression of general interests and solidarity across industry. Its membership should
   reflect this approach as set out above.
14     In conjunction with this Communication, the Commission will present a proposal for a
       Council Decision amending the 1970 Decision as set out in Annex.III.
                                                    13
 ---pagebreak---    The reformed Standing Committee on Employment will be composed of the Council,
   represented either by the troika of Heads of State or Government, or of the full Council
   of Ministers, together with the Commission and the two social partner delegations
   (eight members from the trade union side and eight members from the employers' side,
   in the composition set out below). Following the conclusions of European Council
   meeting on employment held on 20-21 November 1997 (p. 19), the Committee should
   meet before the meetings between the Heads of State and Governments at the end of
   each Presidency.
   Secondly, the technical meetings between the Employment and Labour Market
   Committee's Steering Group and the social partners, provided for through the statute of
   the ELC, should also be directly linked to the yearly process foreseen in the context of
   the Employment Guidelines. It is therefore proposed that these meetings should take
   place before the ELC issues its opinion on the Commission's Communication on the
   national action plans in the first half of each year and, in the second half of each year,
   before the ELC issues its opinion on the Commission's yearly update of the
   Employment Guidelines.
   The social partner delegations to the meetings of the Standing Committee on
   Employment and the meetings between social partners and the ELC s Steering Group
   shall include representatives from the employers' and trade unions' side, so that the
   composition of each delegation covers the whole economy, includes European
   organizations, representing either general interests or more specific interests of
    supervisory and professional staff and small and medium-sized businesses. The
   participants to the social partner delegations are UNICE, CEEP, UEAPME,
    EUROCOMMERCE and COPA on the employers' side and ETUC and CEC on the
    employees' side. The delegations should be organized through liaison structures.
5.      EMPHASIZING JOINT-ACTION AND NEGOTIATION
An active dialogue between management and labour leading to shared goals and practical
commitments is the raison d'être of the social dialogue. This presupposes that the social
partners at European level have real support from their members, giving them a mandate
to negotiate agreements at European level, as well as a commitment to follow them up,
and providing them with adequate resources and structures to be able to respond.
Once the Amsterdam Treaty enters into force, legislative proposals in the social policy
field will be addressed to all Member States and be the subject of the two-stage
consultation process with the possibility for the Commission to suspend the legislative
process if the social partners announce their intention to open negotiations. This implies
increased opportunities and responsibilities for the social partners at European level in the
shaping of social policy.
                                                  14
 ---pagebreak--- Furthermore, in the context of the new employment strategy, the European Social Partners
at both cross-industry and sectoral levels have been given the opportunity to take a leading
role in the necessary modernization of the labour market. At its extraordinary meeting on
employment in November 1997, the European Council made a strong appeal to the
social partners to take new initiatives at all levels, in particular regarding adaptability
and employability:
         promoting the modernization of work organization and working patterns through
         negotiation at the appropriate levels, particularly in economic sectors undergoing
         structural change, agreements on work organization including working time and
         flexible working arrangements with the aim of making enterprises productive and
         competitive, and achieving the required balance between flexibility and security;
         developing the social dimension of the process of industrial restructuring,
         especially in the context of worker information and consultation;
         opening workplaces across Europe for training, work practice, traineeships and
         other forms of employability measures; and,
         promoting equal opportunities between women and men, both in a wide context
         and on specific initiatives aimed at reconciling work and family life, for example,
         the further development of policies on career breaks, parental leave and
         part-time work.
 It is essential at this juncture that the social partners take up the new challenges and
 monitor the employment process in order to review all possible initiatives to modernize
 the legal, contractual and institutional framework at all levels of the dialogue.
 Another important matter relating to the negotiation process at all levels of the dialogue,
 which was raised by many respondents to the consultative Communication, was the
 question of participation and representativeness in contractual relations at both cross-
 industry and sectoral level.
 The Commission cannot intervene in the negotiations. It is up to the social partners to
 decide who sits at any negotiating table and it is up to them to come to the necessary
 compromises. The respect of the right of any social partner to choose its negotiating
 counterpart is a key element of the autonomy of the social partners.
 At the same time it is crucial that the social partners at both cross-industry and sectoral
 level find the best ways to maintain the dynamic character of their dialogue, allowing it to
 continue to develop towards greater co-operation and openness in order for it to be able to
 play an even more constructive role by ensuring optimum representation. Such a process
 is necessary in order to make the results of the social dialogue widely acceptable. In this
 context the Commission would stress that the current situation is jeopardizing future
 developments and that a political solution is needed to prepare the ground for the future.
                                                  15
 ---pagebreak--- 5.1     Joint action and negotiation at cross-industry level
The cross-industry dialogue has secured a strategic place in the development of social
policy: the social partners have created an important locus for dialogue and interaction.
The most active dialogue at cross-industry level has in recent years taken place within the
Social Dialogue Committee where the three cross-industry organizations of general
vocation, UNICE, CEEP and the ETUC, conduct their autonomous dialogue. This has
also developed into the forum through which they communicate the results of their
dialogue to the Commission.
The organizations taking part in the Social Dialogue Committee recently stated that they
intend to focus their autonomous dialogue in this forum on their joint-contribution to the
employment process. Working groups have been established to consider certain issues in
depth. Several joint-opinions, joint-declarations and working documents have been
prepared within the Education and Training, Labour Market and Macroeconomic Working
Groups. It is vital that the social partners at European level develop and consolidate their
autonomous dialogue to contribute to the key issues with a view to creating European
Frameworks for social partner action at national level. These can cover, most importantly,
the promotion of employability and adaptability, including lifelong learning issues and
information and consultation of workers.
In the framework of the strengthened economic policy coordination called for by the
European Council at Amsterdam, it should in particular be examined in the
macroeconomic group of the Social Dialogue Committee whether it is possible to find
operational modalities for building bridges between the major players determining the
macroeconomic mix in the EMU.
 It is also very important to acknowledge the fact that a new configuration of the
 cross-industry social dialogue has been gradually developed since UNICE, CEEP and the
 ETUC came forward to establish the Val Duchesse dialogue in 1985. Although it was
 stressed in the responses that the mutual recognition of the parties and the respect for the
 informal and voluntary nature of this dialogue has been a key to its success, several
 organizations claimed a place alongside UNICE, CEEP and the ETUC at the negotiating
 table. A large number of respondents emphasized that to make the cross-industry dialogue
 richer and to have its results more widely spread and acceptable to all interested parties,
 an opening up of the dialogue to other organizations is important.
 In order to permit it to build upon its achievements, the Commission will continue to
 support the cross-industry social dialogue. The Commission is aware of the importance of
 SMEs for employment and their role in job creation; their specific concerns and the
 opportunities they provide must be taken into account. The Commission makes a strong
 appeal to the social partners to take the necessary steps to ensure that their dialogue
 remains strong and continues to attract widespread support.
                                                   16
 ---pagebreak--- 5.2      Joint action and negotiation
                                 v       at sectoral level
                              to
The sectoral level is a very important area for development both on general issues such as
employment, industrial change and a new organization of work and on upcoming specific
demands on the labour market. The development of negotiations at sectoral level is
therefore a key issue.
There was general agreement among the respondents that the sectoral dialogue provides
for an effective level of intervention on the questions of employment, work organization
and the improvement of working conditions as it is closest to grass roots and best able to
anticipate change. However, its potential as a site for joint action and negotiation of
agreements is by no means used to the full.
The Framework Agreement on the Improvement of Paid Employment in Agriculture in
the Member States of the European Union15 is a good and recent example of what can be
done when the most is made of that potential.
There are substantial differences in representation as between industries within the
Community's sectoral social dialogue; nevertheless, it offers significant potential for
development of the dialogue at Community level as this is where the economic and social
challenges lie: in relation to industrial restructuring, the introduction of new technologies,
changes in occupations and opening-up to competition. Moreover, the social partners'
responses at industrial level have greater operational impact.
The Commission encourages the further development of joint action and negotiations,
 both in qualitative and quantitative terms. The new sectoral dialogue committees will be
 conducive to the establishment of flexible forms of work enabling the social partners, if
 they so wish, to initiate joint action or enter into negotiations on voluntary agreements
 promoting the key issues in the sectors.
 5.3     Negotiation under Article 3(4) of the Agreement on Social Policy
 Article 3(4) of the Agreement on Social Policy stipulates that the social partners consulted
 under Articles 3(2) and 3(3) of the Agreement can, during the ongoing consultation,
 inform the Commission of their desire to embark upon a process of negotiation. The
 opening of negotiations is totally in the hands of the social partners and the
 negotiation process is based upon principles of autonomy and mutual recognition of the
 negotiating parties.
 The two agreements concluded so far under this procedure constitute important steps
 forward for European industrial relations and European social policy. They have been
 warmly welcomed in most circles, including the European institutions. However, some
  social partner organizations have criticized the fact that they were not party to
 the negotiations.
  15
        Concluded between EFA/ETUC-GEOPA/COPA, 24.7.1997.
                                                   17
 ---pagebreak--- These two agreements were negotiated at cross-industry level. It is important to
acknowledge that there is nothing in the Agreement on Social Policy that limits possible
sectoral negotiations thereunder, either as a complement to cross-industry agreements or
establishing independent agreements limited to the sector concerned.
The Commission considers that the development of contractual relations, as set out in the
new Treaty, is a most effective mechanism to implement relevant commitments on
Social Policy. The Commission therefore hopes the social partners will further develop
their contractual relations at both interprofessional and sectoral level. Relations based on
agreements should take their place alongside legislation in the development of social
policy. The Commission considers that sectoral agreements between social partners can
form an important basis for achieving social policy objectives, including the process of
making agreements binding through Community law at the request of the social partners.
The Commission will continue to give strong support to the initiation of negotiations
under this procedure, pointing out that both the inter-professional and sectoral social
partners are encouraged to take on their responsibilities in this respect.
The Commission cannot intervene in the free choice of negotiating partner. It welcomes
the positive example of the association as experts of, EUROCOMMERCE, FENI, COPA
and HOTREC in the latest negotiations as an important step and encourages the social
partners to go further to make the agreements even more acceptable by ensuring
optimum representation.
5.4     Implementation of agreements concluded at Community level
Agreements can be concluded both on sectoral and cross-industry issues in the context of
the social dialogue structures or in the framework of a consultation under Article 3 of the
Agreement on Social Policy.
These agreements can be implemented either in accordance with the procedures specific
to management and labour in the Member States or, in matters covered by Article 2 ASP,
at the joint request of the signatory parties, by a Council decision on a proposal from the
Commission (Article 4(2) ASP).
5.4.1 Implementation by the social partners
The existence of good information and follow-up mechanisms is crucial to the
effectiveness of the implementation of agreements in accordance with the procedures and
practices specific to management and labour and the Member States. The Commission is
committed to supporting the social partners in developing information and monitoring
procedures to ensure effective implementation at national level. The implementation of
the Framework Agreement on the Improvement of Paid Employment in Agriculture will
be an important step in this context.
                                                  18
 ---pagebreak--- 5.4.2 Implementation through Community legislation
Until now there have been two requests from the social partners for implementation of
agreements through Community legislation: for the European framework agreements on
parental leave and part-time work. The Directive16 implementing the parental leave
agreement was adopted by the Council on 3 June 1996 and the Directive17 implementing
the part-time work agreement was adopted by the Council on 15 December 1997.
Before any legislative proposal implementing an agreement is presented to the Council
the Commission carries out an assessment18 involving consideration of the representative
status of the contracting parties, their mandate and the legality of each clause in the
collective agreement in relation to Community law, and the provisions regarding small
and.medium sized enterprises. One European social partner organization has challenged
the legality of the parental leave Directive adopted under this process19. It is important to
emphasize that the Commission does not make a legislative proposal to the Council
making the agreement binding if it considers that the signatory parties are not sufficiently
representative in relation to the scope of their agreement.
Key Action
    The negotiating parties to an agreement to be implemented through legislation under
    Article 4(2) ASP must ensure that the subjects for discussion remain within the remit
    of Article 2 ASP.
    The Commission will assess the agreements presented to it on a case by case basis with
    regard to the representativeness (sufficient representativeness taking into account the
    scope of the subject for negotiation) of the signatory parties, the legality of the clauses
    in the agreements in relation to Community law, and in particular, the provisions
    regarding small and medium-sized undertakings.
    In addition, before proposing a decision implementing an agreement negotiated on a
    matter within the material scope of Article 2 ASP, but outside the formal consultation
    procedure, the Commission has the obligation to assess the appropriateness of
    Community action in that field.
    The Commission helps and supports the social partners in any way it can by providing
    any political, technical and legal backup, as established in Article 118b of the Treaty.
 16     Council Directive 96/34/EC of 3 June 1996 on the framework agreement on parental leave
        concluded by LTNICE, CEEP, and the ETUC.
 17     Council Directive 97/81 /EC of 15 December 1997 on the framework agreement on part-time work
        concluded by UNICE, CEEP, and the ETUC.
 18     This procedure is laid down in points 38 to 42 of the 1993 Communication (COM(93) 600 final)
        concerning the application of the Protocol on Social Policy.
 19     UEAPME's challenge before the Court of First Instance, Case T-l35/96. UEAPME has
        subsequently challenged the Part-time work agreement. Case T-55/98.
                                                        19
 ---pagebreak---    The Commission will continue to inform the European Parliament of the initiation of
   consultations and the opening and conclusion of negotiations under Article 3 ASP.
   Furthermore, it will inform the Parliament as soon as the social partners ask the
   Commission to draw up a legislative proposal for the implementation of an agreement
   under Article 4(2) ASP to enable it to give its opinion in due time on the proposal
   before the Council reaches its formal decision.
   Issues related to the role of the European institutions in the decision-making process
   under the Agreement on Social Policy - and in particular the provision of information
    concerning negotiations between the social partners - will be the subject of further
    discussions between the Commission, the Council and the European Parliament in the
    context of the Inter-Institutional Trilogue.
6.      NEW PROSPECTS OPEN UP
6.1     Social dialogue and enlargement
With a view to the launch of the process of accession to the European Union and above all
the adoption of Agenda 2000 and the opening of negotiations, it is important to emphasize
the following:
         it is essential, as reflected in the Accession partnerships, that the applicant
        countries develop social dialogue structures and activities. Their social partners
         should prepare themselves to play an effective role in the framework of the social
         dialogue. All parties agree that it is of vital importance to help the Central and
         Eastern European Countries in that context;
        and furthermore,
        the inclusion of the Agreement on Social Policy in the Amsterdam Treaty
         consolidates the position of the social dialogue as a major component in
         Community social policy which new Member States have to take into account in
         incorporating the acquis communautaire into their legislation.
To this end the Commission:
         will assist the social partners in the European Union in developing links and
         practical cooperation at cross-industry and sectoral levels so as to encourage the
         development in Central and Eastern Europe of independent, representative trade
         union and employers' organizations;
         encourages the political and administrative bodies in the applicant countries to
         associate the social partners closely in the pre-enlargement policy of the
         European Union and to adapt the national legal frameworks so as to promote the
         development of the social dialogue structures;
                                                 20
 ---pagebreak---         will support the appropriate forums of the social dialogue to receive social
        partners from the applicant countries to learn about its underlying principles and
        working forms.
6.2      Developing a European industrial relations and partnership culture
6.2.1    Transnational decentralized dialogue
There is a fast-developing social dialogue within multinational companies. Following the
adoption of the Directive on the establishment of a European works council20, the social
partners in the companies concerned concluded more than 400 agreements before it came
into force. The Commission intends to continue to support the development of links
between the European and transnational levels so as to help the parties concerned to draw
upon the best experiences and ideas.
To this end the Commission will organize a conference in 1998 to take stock of the
agreements on information and consultation concluded in transnational undertakings.
There is also growing cross-border social dialogue at regional level, a useful channel in
regions where there are significant cross-border flows, both in relation to employment and
the implementation of directives on working conditions. The Commission will consider
how to assist actions of this kind when they clearly present added value at European level.
6.2.2    Support to management and labour
Independently of the social dialogue, the Commission supports initiatives to increase the
awareness of European issues.
An ongoing initiative in this connection is the Network of Human Resource Directors
which plays a part in disseminating successful experiences and new ideas that can be used
at other levels of the dialogue.
The European Business Network for Social Cohesion brings together a number of
companies that are developing innovative initiatives to give a practical content to their
social commitment to combat social exclusion and promote social cohesion.
The Commission gives technical and financial support to various initiatives both by
employer' and employee' organizations                (conferences, implementations of joint
initiatives, diffusion of the results of the social dialogue...).
The Commission also funds training operations organized by the trade unions and
provides support for the European Trade Union Institute. The aim is to promote the
dissemination of a European industrial relations culture while respecting national
experience and tradition.
        Council Directive 94/45/EC of 22 September 1994 on the establishment of a European works
        council or a procedure in Community-scale undertakings for the purposes of informing and
        consulting employees.
                                                    21
 ---pagebreak--- 6.2.3 Supporting the European Industrial Relations Centre
The social partners concluded in 1995 an agreement establishing the European Centre for
Industrial Relations, and their initiative received Commission support. It is a centre
of learning where members of employer and trade union organizations from
EU Member States study together the differing industrial relations systems in Europe. It
offers pan-European learning, training and research facilities for joint use by European
social partners.
The Commission endorses the ECIR approach and will continue to monitor its development
closely. It considers that the founders should reassess its functioning so as to realize its
full potential.
6.3      The means for promoting the social dialogue
To promote the social dialogue at Community level there is a need to improve the
political and logistical conditions so that dialogue can take place and provide prior and
subsequent technical support to the various organizations taking part.
The Commission has set up over the years, on is own initiative and also at the request of
the social partners, various different structures for information, consultation and dialogue.
They enable the social partners to participate actively at Community level in a framework
that encourages national members to express their views.
The Commission also supports initiatives by the social partners at European and national
level aimed at placing greater emphasis on the Agreement on Social Policy: preliminary
awareness-raising (conferences, studies, preparatory meetings, working parties, training
on European affairs) and support for follow-up to measures resulting from the social
dialogue (dissemination, monitoring and appraisal of agreements, European action, for
example, on youth employment, and the setting up of an industrial relations
training centre).
The Commission has to promote and support the social dialogue in the most effective
way, and this implies adapting existing structures to enable the social partners to develop
the optimal solutions in the light of recent developments and the subsequent challenges
that lie ahead.
The support by the Commission should open the possibility for the social partners at
 European level to anticipate and analyse changes in order to better understand various
 industrial relations systems and to examine impact of reform of European industry,
economy, labour markets including training systems, and social security systems. In other
 terms it should permit present and future generations of social partners to play their role
 as negotiators at the European level in order to promote European integration in the
 context of the single market, of EMU and of social cohesion.
                                                  22
 ---pagebreak--- 6.4    A Reflection Process: Study Group
Like the other industrialized regions of the world, Europe has to face a number of major
challenges including global competition, rapid technological progress, and the protection
of the environment and an ageing population. In addition, it has to prepare for the
introduction of the single currency from 1999 onwards and for the integration of new
Member States into the Union. Furthermore, the position in general of the social partners
in the Member States and at European level is changing more and more into a partnership
role, most importantly the key role the social partners have been given in the Amsterdam
Treaty and, subsequently, in the context of the Employment Guidelines. All these changes
have implications for industrial relations, and the quality of industrial relations systems
will determine to a considerable extent how successful Europe will be in responding to
these challenges.
As a contribution to the debate on these fundamental issues the Commission has decided
to involve experts from both national and European level to secure the broadest possible
views on the issues and to strengthen the knowledge about European social dialogue. It
should support a process of discussion at all relevant levels.
                                                 23
 ---pagebreak---                                                                                   ANNEX I
 List of European social partner organizations currently consulted in accordance with
                                    Article 3 of the ASP
This list will be adapted according to the criteria set out in Commission Communication
COM(93) 600 final of 14 December 1993 concerning the application of the Protocol on
Social Policy, para. 24, following the periodic results of the ongoing representativeness
study.
1.   General cross-industry organizations
              Union of Industrial and Employers' Confederations of Europe (UNICE)
              European Centre of Enterprises with Public Participation (CEEP)
              European Trade Union Confederation (ETUC)"
2.   Cross-industry organizations representing certain categories of workers or undertakings:
              European Association of Craft, Small and Medium-Sized Enterprises
              (Joint Committee of Social Dialogue: UEAPME -EUROPMI)
              Confédération européenne des cadres (CEC)
              Eurocadres
3.   Specific organizations
              EUROCHAMBRES
4.   Sectoral organizations
              EUROCOMMERCE
              COPA/COGECA
              EUROPECHE
              Association of European Cooperative Insurers, AECI
              International Association of Insurance and Reinsurance Intermediaries, BIP AR
              European Insurance Committee, CEA
              Banking Federation of the European Community
                                                 24
 ---pagebreak---           Savings Banks Group of the European Community, GCECEE
          Association of Cooperative Banks of the EC
           European Confederation of woodworking industries, CEI-bois
           Confederation of the National Hotel and Restaurant Associations in the EC,
           HOTREC
          European Construction Industry Federation
           European Regional Airlines Association. ERA
           Airports Council International - European Region, ACI-Europe
          Association des compagnies indépendantes de la Communauté européenne,
          ACE
          Association of European Airlines, AEA
           Organization européenne des bateliers
           International Union for Inland Navigation
           European Community Shipowners Association, ECSA
           Community of European Railways, CER
           International Road Transport Union, IRU
           Industrial Cleaning European Federation, FENI
5. European Industry Committees with ETUC affiliation (*)
           FEM/EMF (Metal.)
           EURO-FIET (Commercial, Clerical and Technical Employees)
           European Committee Communications International
           EFA (Agricultural workers)
           EEA (Media)
           ECF (Food and Horeca)
           FSESP/EPSU (Public Services)
           FST (Transport)
                                              25
 ---pagebreak---              CSEE/ETUCE (Education)
             FETBB/EFBWW (Building - Woodworkers)
             FGE/EGF (Graphical)
             FSE-THC/ ETUF-TCL (Textiles)
             EMCEF (Miners, Chemical and Energy)
             FEJ-FIJ/EFJ-IFJ (Journalists)
             EFDPS (Diamond and Precious Stone Workers)
(*) Copy of the letter to the ETUC
                                           25
 ---pagebreak---                                                                           ANNEX II
                             COMMISSION DECISION
                                    of 20 May 1998
on the establishment of Sectoral Dialogue Committees promoting the Dialogue between
                         the social partners at European level
                                               27
 ---pagebreak---                       EXPLANATORY MEMORANDUM
1. The Commission has an obligation to promote dialogue between management and
   labour under Article 118b of the Treaty. It receives input from the sectoral social
   partners on Community policy through consultations on a number of social policy
   initiatives and, in the sectors where there is a common policy, on the formulation
   and implementation of sectoral policies. The sector-specific consultations are
   aimed at improving and harmonizing working conditions and also, in some cases,
   improving the economic and competitive position of the sector concerned. This
   work is carried out in sectoral committees, either set up on a formal basis,
   Joint-Committees, or in informal working groups.
2. The Commission adopted in September 1996 a consultation Communication
   (COM(96) 448 final of 18 September 1996 concerning the development of
   the social dialogue at Community level) in order to gather as wide a range of
   views as possible on the means to be employed to promote and developing
   the European social dialogue. In this document the Commission pointed out
   that the Joint Committees and informal working groups have become
   over-institutionalized or have retained operational methods which have outlived
   their usefulness. It asked therefore the views on the organization and
   responsibilities for sectoral dialogue.
3. During 1997 more than 80 detailed replies were received from employers'
   and workers' European and national organizations, European institutions
   (See the European Parliament Resolution on the Commission Communication
   "Concerning the development of the social dialogue at Community level
   COM(96)448 final" of 18 July 1997 and the Opinion of the Economic and
   Social Committee on the same issue adopted on 29-30 January 1997) and from
   national authorities. A European Forum was held in the Hague in April 1997 for a
   debate on the future of social dialogue at European level.
4. Most respondents agreed with the Commission conclusion that the current
   structures often hinder positive developments. A more harmonized approach needs
   to be taken to the structures supporting the sectoral dialogue with a view to
   ensuring a more equitable treatment of the different sectors of activity and to
   enable all sectors to contribute in the most effective and substantial way to the
   development of the relevant Community policies. The Commission should be
   prepared to respond to the requests of the sectors willing to make a significant
   joint contribution.
5. Therefore, in order to improve the input of the sectoral dialogue in quantitative
   and qualitative terms, giving an increased added value at European level, it is
   necessary to replace the existing structures and encourage a more efficient
   dialogue. The operating procedures will be streamlined: one high-level plenary
   meeting each year, a restricted social partner delegation, reimbursement for
   maximum 15 participants from each side. The Commission, through the DG most
   concerned with the issues on the agenda or DG V, will provide secretarial
                                            28
 ---pagebreak--- services; the meetings will normally be chaired by a delegate of the employers or
employees, but a representative of the Commission will take the chair if both
parties jointly ask it to do so. Each sector will be firmly supported through a
partnership between DG V and the other relevant DGs, including împroved
technical backup for the preparation of and follow-up to meetings.
                                        29
 ---pagebreak---                                  COMMISSION DECISION
                                         of 20 May 1998
  on the establishment of Sectoral Dialogue Committees promoting the Dialogue between
                              the social partners at European level
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,
Whereas Article 118b of the Treaty states that the Commission is to endeavour to develop
the dialogue between management and labour at European level which could, if the two
sides consider it desirable, lead to relations based on agreement;
Whereas point 12 of the Community Charter of the Fundamental Social Rights of
Workers states that employers or employers organization, on the one hand, and workers'
organizations, on the other, should have the right to negotiate and conclude collective
agreements under the conditions laid down by national legislation and practice. The
dialogue between the two sides of industry at European level which is to be developed,
may, if the parties deem it desirable, result in contractual relations in particular at
inter-occupational and sectoral level;
Whereas the Commission in response to the Communication of 18 September 1996
concerning the development of the social dialogue at Community level 21 received a strong
support from all involved parties in its suggestion to strengthen the sectoral
social dialogue;
Whereas the European Parliament, in its Resolution of 18 July 1997 22 , responding to that
Commission Communication, called for a specific importance to be attached to the
sectoral social dialogue since the impact of regulation and/or deregulation on employment
in the economic sectors can best be assessed within the sectoral dialogue;
Whereas the Economic and Social Committee in its opinion of 29 January 1997 23 ,
responding to that Commission Communication, stated that the sectoral dialogue must be
effective, efficient and well-directed;
Whereas the situation in the various Member States clearly demonstrates the need for the
two sides of industry to participate actively in discussions on the improvement of living
and working conditions in their sector; whereas a sectoral dialogue committee attached to
the Commission is the most appropriate means of ensuring such participation, by creating
at Community level a representative forum for the socio-economic interests involved;
Whereas the Commission should endeavour to ensure that the membership and the
activities of the Sectoral Dialogue Committees contribute to the promotion of equality
between women and men;
21
        COM(96) 448 final.
22
       OJC286, 22.9.1997, p. 338.
23
       OJC 89, 19.3.1997, p. 27.
                                                   30
 ---pagebreak--- Whereas the existing Joint Committees should be replaced by the Sectoral Dialogue
Committees; whereas the Decisions establishing those Committees should therefore
be repealed,
HAS DECIDED AS FOLLOWS:
                                         Article 1
Sectoral Dialogue Committees (hereinafter referred to as "the Committees") are hereby
established in those sectors where the social partners make a joint request to take part in a
dialogue at European level, and where the organizations representing both sides of
industry fulfil the following criteria:
(a)     they shall relate to specific sectors or categories and be organized at
        European level;
(b)     they shall consist of organizations which are themselves an integral and
        recognized part of Member States' social partner structures and have the capacity
        to negotiate agreements, and which are representative of several Member States;
(c)     they shall have adequate structures to ensure their effective participation in the
        work of the Committees.
                                         Article 2
Each Committee shall, for the sector of activity for which it is established,
(a)     be consulted on developments at Community level having social implications, and
(b)     develop and promote the social dialogue at sectoral level.
                                         Article 3
The representatives of the two sides of industry taking part in the meetings of each
Committee shall number a maximum of 40 in all, with an equal number of representatives
of the employers' and workers' delegations.
                                         Article 4
The Commission shall invite the representatives to participate in the meetings of the
Committees on a proposal from the social partner organizations which have made the
request set out in Article 1.
                                         Article 5
 1.      Each Committee shall, together with the Commission, establish its own rules
         of procedure.
2.       The Committees shall be chaired by a representative of the employers' or
         employees' delegations or, at their joint request, by a representative of
         the Commission.
                                                31
 ---pagebreak--- 3.      The Committees shall meet at least once a year. A maximum of 30 representatives
        drawn from the two sides of industry taking part in a meeting of a Committee shall
        receive subsistence allowance and travelling expenses.
4.      The Commission shall regularly review, in consultation with the social partners,
        the functioning of the Sectoral Committees and the pursuit of their activities in the
        different sectors.
                                          Article 6
If the Commission has informed a Committee that a subject discussed relates to a matter
of a confidential nature, members of the Committee shall be bound, without prejudice to
the provisions of Article 214 of the Treaty, not to disclose any information acquired at the
meetings of the Committee or its secretariat.
                                          Article 7
 1.     The Sectoral Dialogue Committees shall replace the existing Joint Committees,
        namely:
        (a)     Joint      Committee    on     Maritime      Transport      established    by
                 Commission Decision 87/467/EEC24;
        (b)      Joint Committee on Civil         Aviation    established   by   Commission
                 Decision 90/449/EEC25;
         (c)     Joint     Committee     on     Inland     Navigation       established    by
                 Commission Decision 80/991/EEC26;
         (d)     Joint Committee on Road Transport established               by Commission
                 Decision 85/516/EEC27;
         (e)     Joint    Committee on        Railways     established     by     Commission
                 Decision 85/13/EEC28;
         (f)     Joint Committee on Telecommunications             Services   established  by
                 Commission Decision 90/450/EEC29;
         (g)     Joint Committee on Social Problems of Agricultural Workers established
                 by Commission Decision 74/442/EEC30;
 24
       OJ L 253, 4.9.1987, p. 20.
 25
       OJL230, 24.8.1990, p. 22.
 26
       OJL297, 6.11.1980, p. 28.
 27
       OJ L 317, 28.11.1985, p. 33
 28
       OJL 8, 10.1.1985, p. 26.
 29
       OJL 230, 24.8.1990, p. 25.
 30
       OJL 243, 5.9.1974, p. 22.
                                                 32
 ---pagebreak---       (h)     Joint Committee on Social Problems in Sea Fishing established by
              Commission Decision 74/441 /EEC31.
      (i)     Joint Committee on Postal services established by Commission Decision
              94/595/EC32.
      However, the Committees established by those decisions shall remain in office
      until the Sectoral Committees established by this Decision take office, but in any
      event no later than 31 December 1998.
2.     Subject to Article 1, the Sectoral Dialogue Committee shall also replace other
       informal working groups through which the Commission has heretofore promoted
      the social dialogue in certain sectors not covered by a Commission decision
      establishing a Joint Committee.
3.    The Decisions referred to in points (a) to (i) of paragraph 1 are repealed with effect
       from 1 January 1999.
Done at Brussels, 20 May 1998                                For the Commission
                                                             Pâdraig FLYNN
                                                             Member of the Commission
31
      OJL243, 5.9.1974, p. 19.
32
      OJL225, 31.8.1994, p. 31.
                                               33
 ---pagebreak---                                      Draft
                            COUNCIL DECISION
amending Decision 70/532/EEC setting up the Standing Committee on Employment
                         in the European Communities
                                         34
 ---pagebreak---                        EXPLANATORY MEMORANDUM
1.  Tripartite discussion on employment takes place at meetings between
    representatives of the social partners, the Council and the Commission. The
    purpose, in addition to the specific priorities of each of the parties, is to
    determine shared objectives. The key body at European level has been the
    Standing Committee on Employment, set up in 1970 (Council Decision
    70/532/EEC as amended by Decision 75/62/EEC).
2.  There has been quite a lot of criticism of the operation of this Committee as it now
    stands. Most of the Committee members agree that its operations are out-of-date:
    as are the membership, the working methods and the use to which its results
    are put.
3.  Moreover, the context for tripartite dialogue at Community level has been
    transformed in recent years:
             the tripartite approach has become more relevant in a number of the
             Member States involved in the conclusion of employment pacts;
             in the recent debates on flanking measures for industrial restructuring,
             partnership has been considered one of the most important approaches that
             should be promoted;
             the incorporation of a new employment title in the Amsterdam Treaty and
             the application of these arrangements (see the Council Resolution on the
              1998 Employment Guidelines adopted on 15 December 1997, OJ C 30,
             28.1.1998, pp. 1-5) has changed the direction of the tripartite dialogue.
    Furthermore, recent initiatives to encourage new forms of tripartite dialogue have
     led to an increase of fora, in parallel to the meetings at Ministerial level within the
     framework of the Standing Committee on Employment, where the Council and the
     social partners meet to discuss employment issues, such as the meetings between
     the Employment and Labour Market Committee Steering Group and the social
     partners, and the meetings between the Troika of Ministers and/or Heads of State
     and the social partners.
4.   These developments and the undisputed lack of efficiency of the
     Standing Committee in its present form require a new rationalized process
     allowing the social partners to contribute in the most effective way to the
     development and implementation to the Employment Guidelines and Broad
   , Economic Orientations. The Commission proposal for the amendment of the
     current Council Decision will accordingly limit the number of participants in the
     meetings, update the membership of the social partners taking into account
     successive enlargements of the Community and developments affecting the
     representative organizations. It will also give the necessary flexibility in order for
     the Committee meetings to be directly linked to the new employment process.
                                                35
 ---pagebreak---    The Commission's comments on the sole Article in its proposal are given below:
5. As regards the amendment to Article 2(1) of Decision 70/532/EEC
   First, this amendment confines itself to reflecting the change in the membership of
   the Committee which is made in the amendments introduced in Article 2.
   Secondly, it stipulates that the Committee shall meet twice a year. This replaces
   the earlier obligation for the Committee to "fulfil its tasks before any measures are
   adopted by the relevant institutions". This change reflects the important role the
   social partners should play in the new process on employment as set out in
   the conclusions of the European Council meeting on employment held on
   20-21 November 1997 (p. 19) (The Luxembourg Jobs Summit).
6- As regards the amendment to Article 2(2) of Decision 70/532/EEC
   This amendment gives the necessary flexibility for each Presidency of the Union
   to choose the most appropriate form for discussing employment with the
   social partners; either the full Council or the Troika of Heads of States or
   Governments as set out in the conclusions to the Luxembourg Jobs Summit
   (p. 19).
7. As regards the amendment to Article 2(3) of Decision 70/532/EEC
   This amendment firstly reduces the number of social partner participants from 36
   to 16 in order to allow for a more effective form of meeting. Secondly, it replaces
   the function of the Annex in the former decision as it stipulates which social
   partner organizations are to take part in the work of the Committee. The social
   partner organizations are selected so that each social partner delegation covers the
   whole economy, and include European organizations, representing either general
   interests or more specific interests of supervisory and professional staff and small
   and medium-sized businesses.
8. As regards the amendments to Article 2(4) and deleting the Annex to
   Decision 70/532/EEC
   This amendment reflects the reduction of participants from the social partner
   delegations.
                                            36
 ---pagebreak---                                              Draft
                                     COUNCIL DECISION
  amending Decision 70/532/EEC setting up the Standing Committee on Employment in
                                   the European Communities
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular
Article 145 thereof,
Whereas the European Parliament in its Resolution of 18 July 199733 on the Commission
Communication of 18 September 1996 concerning the development of the social dialogue
at Community level34 called for the Standing Committee on Employment to be reformed
as a matter of urgency;
Whereas the Economic and Social Committee in its opinion of 29 January 199735 on the
same Commission Communication stated that the Standing Committee on Employment
was to be given a higher profile;
Whereas the Council in its Resolution of 15 December 1997 on the 1998
Employment Guidelines36 emphasized the need to associate the social partners in
employment strategy;
Whereas the Commission in its Communication of 20 May 1998 "Adapting and
Promoting the Social Dialogue at Community level"37 underlined the importance of
adapting the composition and working methods of the Standing Committee on
Employment to the new environment;
Whereas in its conclusions to the Intergovernmental Conference held at Florence on
21 and 22 June 1996, the European Council reaffirmed the importance to promoting
employment and reducing the unacceptably high levels of unemployment in Europe,
particularly for young people, the long-term unemployed and the low-skilled;
Whereas the European Council emphasized at its extraordinary summit on employment
held in Luxembourg on 20-21 November 1997 that, as part of the necessary strengthening
of the social dialogue, the social partners at all levels would be involved in all stages of
this new strategy and would have their contribution to make to the implementation of
the guidelines;
Whereas Council Decision 70/532/EEC38, as last amended by Decision 75/62/EEC39,
should therefore be amended accordingly,
33
       OJC 286, 22.9.1997, p. 338.
34
       COM(96) 448 final.
35
       OJC 89, 19.3.1997, p. 27.
36
       OJ C 30, 28.1.1998, p. 1.
37
       COM(1998) 322 final.
38
       OJ 273, 17.12.1970, p. 25.
39
       OJ 21, 28.1.1975, p. 17.
                                                   37
 ---pagebreak--- HAS DECIDED AS FOLLOWS:
                                        Sole Article
Decision 70/532/EEC is amended as follows:
1.     In Article 2, paragraphs 1 to 4 are replaced by the following:
       "1.     The task of the Committee shall be to ensure, in compliance with the
               Treaties and with due regard for the powers of the institutions and organs
               of the Communities, that there shall be continuous dialogue, joint action
               and consultation between the Council - or the "troika" of Heads of State or
               Government - the Commission and the two sides of industry in order to
               facilitate coordination by the Member States of their employment policies
               in harmony with the objectives of the Community.
               The Committee shall meet twice a year.
       2.      The following parties shall take part in the work of the Committee:
                        either the Council or the "troika" of Heads of State or Government;
                        the Commission;
                        employers' organizations;
                        workers' organizations.
       3.      There shall be eight representatives from each of the two sides of industry,
               each delegation covering the whole economy, being composed of
               European organizations, representing either general interests or more
               specific interests of supervisory and professional staff and small and
               medium-sized businesses. The designation of the employees' delegation
               (ETUC, CEC) shall be coordinated by the European trade union
               confederation (ETUC), and the designation of the employers' delegation
               (UNICE, CEEP, UEAPME, Eurocommerce, COP A) shall be coordinated
               by the union of industries of the European Community (UNICE).
       4.      Each of the parties taking part in the work of the Committee shall appoint
               its representatives at its own discretion either for a specified period or,
               depending on the matters to be dealt with, for specific meetings."
2.     The Annex is deleted.
Done at Brussels,                                              For the Council
                                                               The President
                                                  38
 ---pagebreak---                           FINANCIAL STATEMENT
1. TITLE OF OPERATION
   Sectoral dialogue committees
2. BUDGET HEADING INVOLVED
   Part A of the budget only
3. LEGAL BASIS
   Treaty on European Union, in particular Article 118b thereof and Article 3 of the
   Agreement on social policy
4. DESCRIPTION OF OPERATION
   4.1    General objective
           The Commission is presenting a proposal for the rationalization of the
           existing committees and groups in the field of sectoral social dialogue. The
           objectives are to provide a single structure for social dialogue and reduce
           the administrative burden on the existing joint committees. Rationalization
           will make it possible to meet the demands from new sectors for
           participation in the social dialogue without increasing the available
           resources. It will also involve changes to the joint committees' statutes.
   4.2     Period covered and arrangements for renewal or extension
           Unlimited
5. CLASSIFICATION OF EXPENDITURE OR REVENUE
   5.1     Non-compulsory expenditure
   5.2     Non-differentiated appropriations
   5.3     Type of revenue involved: None
6. TYPE OF EXPENDITURE OR REVENUE
   Expenditure consists mainly of the costs involved in organizing sectoral social
   dialogue meetings, i.e. hiring of rooms, reimbursement of employers' and
   workers' travel expenses, and interpreting.
                                             39
 ---pagebreak--- 7. FINANCIAL IMPACT
   NO IMPACT AS REGARDS PART B OF THE BUDGET
   7.1  Method of calculating total cost of operation (link between unit costs
        and total cost
        Rationalization and changes to the statutes of the sectoral social dialogue
        committees will not give rise to any new needs in terms of financial or
        other resources.
   7.2  Itemized breakdown of cost
                                             EC in ECU million (current prices)
         Breakdown       Budget   n+1                       n + 5 and     Total
                         yearn                              subs, yrs
                                      *
         Total
   7.3  Operational expenditure (studies, experts, etc.) included in Part B of
        the budget
                                             EC in ECU million (current prices)
         Breakdown                   Budget     n+1               n + 5 Total
                                     yearn                        and
                                                                  subs,
                                                                  yrs
         - Studies
         - Meetings of experts
         - Conferences and
           congresses
         - Information and
           publications
         Total
                                        40
 ---pagebreak---    7.4     Schedule of commitment and payment appropriations
                                                              EC in ECU million
                               Yearn        n+1                   n + 5      Total
                                                                  and
                                                                  subs, yrs
         Commitment
         appropriations
         Payment
         appropriations
         Yearn
         n+1
         n + 5 and subs,
         yrs
         Total
8. FRAUD PREVENTION MEASURES
   Given the type of expenditure planned (organization of meetings), no measures are
   envisaged, apart from the usual checks on requests for reimbursement of
   participants' travel, hotel and subsistence expenses.
9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS
   9.1     Specific and quantified objectives; target population
           The intention is to allow the sectoral social partners to develop a social
           dialogue with a view to entering into agreements.
           The target population consists of the social partners' organizations at
           sectoral level and members of organizations in line with the principle of
           representativeness.
                                             41
 ---pagebreak---     9.2     Grounds for the operation
            The sectoral social dialogue has been constantly enhancing its input at
            European level. In order for this development to continue and to improve
            the input in quantitative and qualitative terms, giving an increased added
            value at European level, it is necessary to replace the existing structures
            and encourage an efficient political dialogue rather than highly formalized
            exchanges of position.
            The Commission will establish a new framework within which the sectoral
            dialogue can continue its development. This framework will be applicable
            on the same terms to all sectors wishing to take part in social dialogue and
            will be easily extendible to new sectors.
            The new committees will constitute the key forum for sectoral dialogue
            (consultation, joint action and negotiations) and be set up in all sectors
            which submit a joint request and are sufficiently well-organized with
            a meaningful European presence in line with the established criteria
            of representativeness.
    9.3     Monitoring and evaluation of the operation
            Meeting organization facilities will be made available to the various
            committees in accordance with their annual work programmes.
            Texts jointly adopted by the social partners as a result of the committees'
            activities will be made public and will be disseminated both within the
            Community Institutions and within the Member States, particularly to the
            members of the national social partners' organizations.
            The results of the social dialogue and hence of the functioning of these
            committees will be judged mainly by the employers' and workers'
            electorates in the context of social elections or other electoral procedures
            used to appoint workers' and employers' representatives.
            The Commission will also describe the outcome of the sectoral
            committees' activities in its annual social dialogue report.
10. ADMINISTRATIVE EXPENDITURE (PART A OF THE BUDGET)
    The actual mobilization of the necessary administrative resources will depend on
    the Commission's annual decision on the allocation of resources, taking account in
    particular of the additional staff and sums approved by the budget authority.
    10.1     Effect on the number of staff
            No additional staff required
            The following table thus refers to the staff already deployed. The operation
            will necessitate internal reallocations in the distribution of tasks.
                                              42
 ---pagebreak--- Types of staff             Staff to be assigned to                       Of which             Duration
                           managing the operation
                           Permanent        Temporarv       Using existing Using
                           staff            staff           resources          supplementary
                                                            within the DG resources
                                                            or service
                                                            concerned
Officials or        A      9                1               10
temporary
agents
                    B      1                                1
                    C      2                                2
Other resources                             1               1
A-7001
Total                      12               2               14                                Indefinite
        10.2    Overall financial impact of human resources
                No additional staff required
                The following table thus refers to the staff already deployed. The operation
                will necessitate internal reallocations in the distribution of tasks.
                                                                                        (ECU)
                                               Amounts              Calculation method
         Officials*                           1 296 000              12x108 000=1296 000
         Temporary agents                        108 000            1 x 108 000 =     108 000
         Other resources                          43 000            1 x 43 000     =   43 000
         (A-7001)
         Total                                1 447 000
                Using available resources allocated to management of the operation
                (calculation based on titles A-l, A-2, A-4, A-5 and A-7)
                                                   43
 ---pagebreak--- 10.3    Financial impact of other operating expenditure          involved  in
        the operation
                                                                       (ECU)
 Budget line (number                Amounts         Calculation method
 and heading)
 A-7032 committee                   1 265 040        ECU 753 per participant on average x
 meetings                                           maximum 30 participants per meeting
                                                    x minimum 56 meetings
 Total                              1 265 000
The amount indicated, which covers all the sectoral dialogue committees to be
established, will be taken from the DG V budget.
                                       44
 ---pagebreak---  ---pagebreak---  ---pagebreak---                                                                    ISSN 0254-1475
                                                           COM(98) 322 final
                                              DOCUMENTS
EN                                                                     05   01
                                    Catalogue number : CB-C0-98-355-EN-C
                                                             ISBN 92-78-36861-X
Office for Official Publications of the European Communities
L-2985 Luxembourg
                                             45