CELEX: 51973PC1980
Language: en
Date: 1973-11-26
Title: Amended Proposal for a Council Directive on the harmonization of the legislation of the Member States relating to mass dismissals (Presented by the Commission to the Council pursuant to the second paragraph of Article 149 of the EEC Treaty)

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COM (73) 1980
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                      COM(73)1980 final
                                      Brussels , 26 November 1973
                                 Amended
                 Proposal for a Council Directive on the
                 harmonization of the legislation of the
                 Member States relating to mass dismissals
                 ( Presented by the Commission to the Council
                 pursuant to the second paragraph of Article
                 149 of the EEC Treaty )
                                      ■ i
   C0M ( 73 ) 1980 final
 ---pagebreak---                                                 V/905/73-E fin .
               EXPLANATORY STATEMENT
       A comparison of tho provisions in force in the Community
countries on dismissals     shows certain notable differences as
regards conditions and procedures and the measures taken to
lessen the negative consequences of dismissal for workers .
       These important differences as regards protection of
workers in cases of mass dismissals have a direct effect on the
functioning on the Common Market in so far as they create dispa­
rities in conditions of competition which are likely to influence
the decisions by enterprises , whether national or multinational ,
on the distribution of the posts they have to be filled . It
must for example be expected that any firm intending to reorga­
nize itself by a plan including the partial or total closedown
of certain departments , will decide which departments to close
down on the basis , at least in part , of the level of protection
offered to the workers . This and other situations cam exert
pressure contrary to social progress and prejudicial to a
balanced overall and regional development within the Community
since it creates areas of mass under-employment .
       In this way economic integration and the accompanying
progressive interdependance of national markets , together with
the increasingly tough competition at woi-ld level , the rate
of technological progress and the changes ( rationalization ,
cooperation , mergers ) which firms undergo directly or indirectly
as a result of the functioning of the Common Market , have profound
repercussions on the security of employment for workers .
 ---pagebreak---                                      - 2 -               V/905/73-E fin .
           The economic changes and closures of enterprises which these
  can involve are however an integral part of a development towards
  more promising activities . It is therefore necessary not to impede
  them , but to place this professional mobility vrithin a framework of
  appropriate guarantees .                                                  v
           Moreover , it is increasingly less justifiable socially to
  apply very different provisions which have equally different results
  to dismissals of workers who are in comparable situations .
           This inequality
           - has become even more manifest as a result of the free move­
  ment of workers ;
           - is harmful to the fanctioning of the Common Market , which in
  accordance with Article 117 of the EEC Treaty includes the improvement
  in the working and living conditions of workers and their upward har­
  monization .                                                            '
           For these reasons it is necessary to eliminate known dispari­
  ties by harmonizing the relevant national provisions . In that respect
  the Commission in no way loses sight of the fact that any rules go­
  verning mass dismissals can form only one special aspect oi' the laws
• on dismissal in their entirety , on which the Commission started work
  in its report on provisions in favour to workers faced with dismissal(1 ^
  and in which report it points to the direction which in its opinion
  should be taken by any discussion on the harmonization of the laws
  on dismissal .
  ( 1 ) Document n° 875^/2/70 addressed to the . Council on , 16 May 1972
 ---pagebreak---                           - 3 -                   V/9CV73-E fin
       Nevertheless the special socio-economic importance of
mass dismissals justifies special Community rules being adopted
in advance .
       An affirmative answer to the question of whether the mass
dismissal provisions in force in the countries of the Community
should be harmonized does not imply that the autonomy of manage­
ment and labour would be called in question . On the contrary :
in the proposed directive , this autonomy is considered as a
point of departure and creates the framework which brings the
two sides to the negotiating table , clearly showing the aims
of the negotiations but leaving the organization of those nego­
tiations to the two sides .
       In its draft Directive , the Commission has voluntarily
restricted itself to a few essential points prompted by the
thought that systematic joint action by management , the autho­
rities and workers representatives is the best method of obtai­
ning community regulation of mass dismissals which will best
serve their dual purpose - of providing social protection and
acting as an economic regulator .
       It is along these lines that the proposed directive
which follows has been conceived . On the one hand it is based
on provisions and procedures in force in the Member States .
On the other hand it makes provisions for them to be harmonized
in order to eliminate consequences which are very different -
indeed contradictory .
       Dismissals effected pursuant to contrafcts of employment
for limited periods of time are not covered by this Directive
 ---pagebreak---                                                    V/905/73-E fin »
                          Amended
   Proposal for a Council Directive on the harmonization of the
   legislation of the Member States relating to mass dismissals
THE COUNCIL,, OF THE EUROPEAN COMMUNITIES ,
having regard to the Treaty establishing the European Economic
Community , and in particular Article 100 thereof ,
having regard to the proposal from the Commission ,
having regard to the Opinion of the European Parliament ,
having regard to the Opinion of the Economic and , Social Committee ,
whereas notable differences are to be found in the provisions in
force in the Member States of the Community on mass dismissals as
regards conditions and procedure and measures which have been
taken to alleviate the consequences of dismissal for workers ;
whereas these differences have widened in the last years ;
whereas these important divergences in the protection of workers
in cases of mass dismissals have a direct effect on . tiie functio­
ning of the Common Market , because they create disparities in
the conditions of competition which influence decisions taken
by enterprises , and in particular multinational enterprises , on'
the distribution of . the. posts they have to be filled , thus
creating pressures contrary to social progress Tand prejudicial
to a balanced overall and regional development within the
Community ; whereas these divergences are moreover harmful to the
functioning of the market in so far as they are not compatible
with the necessity of improving living and working conditions
for workers to put them on an equal footing in a developing
 ---pagebreak---                                      - 5 -               V/905/73-E fin .
society ; moreover economic changes and the closure of business en­
terprises which these may involve - may be an integral part of a pro­
cess leading to more promising activities ;          •
whereas economic integration in the Community , ever increasing world­
wide competition , the rate of technological progress , changes in the
structure of demand , the rapid development of multinational enter­
prises and the imbalance of economic and social development in the
                    «                         * • •
Community are having ever widening repercussions on the security of
employment for workers ; -
whereas moreover the balanced economic and social development of the
Community requires- the 'provisions mentioned above to be improved
and harmonised in a progressive manner within the meaning of Article
117 so that the process of economic -integration does not give xise to
large pockets of unemployment or underemployment ;
whereas it is necessary as a result to eliminate disparities in this
matter and therefore to harmonize national provisions by setting up
minimum Caaraurïity rules .
HAS ADOPTED' THIS DIRECTIVE :                                     '  '
                                  Article 1 ,
1 ) Where an. employer . intends to effect dismissals for one or more
     reasons not related to the . individual behaviour of the workers
     concerned ■ that employer must notify the appropriate public authority ~-
     of the Member State of such intention in cases where over one month , the
   ■ proposed number of dismissals is :             :<
     1 . At' least 5 in. enterprises normally employing more than 20 and
         less than 50 workers ; ,
 ---pagebreak---                                     - 6                V/9C5/73-E fin ,
    2 . At least 10 % of the usual number of workers in enterprises
        normally employing 50 or more and less than 250 workers ;
    3 « At least 25 in enterprises normally employing 250 or more
        workers *
    This notification shall contain all relevant information such as
    the reasons for the redundancies , the exact number of workers to
    be made redundant and the time over which these redundancies are
    to be made .
    For the purposes of this directive , the enterprise shall be the
    local i^nit of employment «
2 ) The outcome of consultations of the workers 'representatives
    provided for in Article 4 must be enclosed wi^h this notification .
    If the outcome is not known at the time of notification , the latter
    shall be accompanied by a communication concerning the opening and
    the progress of the consultation procedure : the outcome thereof
    must be sent within three weeks .
                               Article 2 .
1 ) Except where otherwise stated by the appropriate public authority ,
    the dismissals notified to that authority in accordance with Ar­
    ticle 1(1 ) and ( 2 ) shall take effect not earlier than one month
    after such notification , without prejudicing thereby any indi­
    vidual rights regarding length of notice .
2 ) This period shall be used by the public authority to seek solutions
    to the problems raised by the proposed redundancies .
 ---pagebreak---                                        7                V/905/73-^ fin .
3 ) If the efforts , mentioned in paragraph 2 , of the appropriate
     public authority are to no avail , this period may , exceptionally ,
    be extended by one month , provided that the survival of the under­
     taking is not jeopardised thereby . The employer must be - informed
     of the extension and of reasons that render it necessary not later
     than three weeks after the notification .
                                 Article 3
1 ) The competent public authority may prohibit the notified dismissals
    if , after investigation , it is found that the reasons , within the
    meaning of Article 1 , invoked by the employer are non-existant •
2 ) !Ehe appropriate public authority may suspend the dismissals measures
    and extend the period stipulated in Article 2 ( 1 ) by not more than
    one month if a request has been made for mediation as provided for
    in Article k ( k ) .
                                 Article «f
1 ) Before notifying the public authority of dismissals in accordance
    with Article 1 , the employer shall arrange consultation of ^workers'
    representatives in the undertaking concerned , with a view to reaching
    an agreement . The representatives., consulted shall be those stipu­
    lated in the relevant national provisions .
2 ) These consultations should cover in particular :
    - the possibilities of avoiding or reducing the proposed dismissals ,
    - what criteria to apply . when deciding which workers to dismiss ,
    - the possibility of giving other . jobs in the same enterprise to work-
        k era threatened with dismissal , whether by retraining , by trans-
     ;r                           ., .         .              . . j
         fer to another part of the enterprise or by amending thexr con­
        ditions of employment ,
                                                                  !
 ---pagebreak---                                                         V/905/73-S fin .
   . - possibly , compensation for reductions in salary and other benefits ,
     - measures to be taken in favour of workers to be dismissed , in par­
       ticular with, regard to the possibility of severance grants and
       priority for re-emplojrment ,      -
     - procedural details , in particular the staggering of dismissals .
3 ) To this end , the employer must supply the workers 'representatives
     mentioned above with all necessary information , in writing , and in
     all cases must give the information set out in Article 1 ( 1 ), so
     that they can put forward constructive proposals .
*0 If agreement is not reached between the parties at the consultations ,
     they may agree on a mediation procedure . If no agreement is reached on
     the mediation procedure , either of the parties may request the pu­
     blic antbnrity to act as a mediator . If one party only should request
     the mediation of the public authority , the other party shall be
     bound to take part in this procedure ,                . .
                                Article 5
         Dismissals effected persuant to contracts of employment for
limited periods of time or for a determined task are not covered by this
directive .
                                Article 6
         Within six months from the date of notification of this Direc­
tive , the Memb.er States shall amend their legislation to conform to the
preceding provisions and shall immediately inform the Commission thereof .
The legislation thus amended shall be applied at the latest one' year
thereafter .
 ---pagebreak---                                                        V/9C5/73-E fin .
                             Article 7
       Within two years from the date ,- on which the year mentioned in
Article 5«expires , the Member 1 States' shall forward all nesessary in~
formation to the Commission to enable it to draw up a report for sub­
mission to the Council on the application of this Directive,'
       Moreover , Member States shall , from the date of notification
of this Directive , inform the Cpmmission , in good time for it to make
any observations , of all later draft lav;s , regulations and adminis­
trative provisions which thet may adopt in the field covered by this
Directive .
                             Article - 8
       This Directive is addressed to the Member States .
 ---pagebreak---                                                            V/1 299/73 -s
               Survey of the       amendments proposed by
               the European Parliament and the Economic and
               Social Committee to the proposal for a Council
               Directive on the approximation of the laws of
               the Member States relating to large scale
                                redundancies
1 . General
            The European Parliament, and' the Economic and Social Committee
have ©jecepted the legal basis and type of instrument chosen by the
Commission , as well as the three f-jndamental criteria underlying the
proposed directive , namely :
            - the obligation incumbent upon the employer to notify the
competent authorities of large scale redundancies ,
            - The possibility of intervention by , the ^competent national
authorities ;
            - the principle of consultation between employers and repre- :
 aentatives of the workers of the enterprise concerned .
            The amendments proposed by tiienEuropean Parliament and the ,
Economic and Social Committee are rather of a , textual and technical
nature and do not effect t'lie basic guidelines of this proposed directive .
 ---pagebreak---                                       - 2 -                V/905/72-E
  2 • Specific observations
  A. RECITALS +)
           whereas these important divergences in the protection of workers
  in cases of mass dismissals have a direct effect cn the functioning of
  the Common Market , because they create disparities in the conditions of
  competition which' influence decisions taken by enterprises , and in par­
  ticular multinational enterprises , on the distribution of the posts
  have to be filled , thus creating pressures contrary to social progress
  and prejudicial to a balanced ovefali and regional development within
  the Community ; whereas these1 divergences are moreover harmful to the
  functioning of the marked in so far as Shey are not compatible with the
  necessity of improving living and working conditions for workers to put
  them on an equal footing in a developing society ;
           whereas economic integration in the- Community , ever increasing
v worldwide competition , the - rate of technological progress , changes in
  the structure of demand , the rapid development of multinational enter­
  prises and the Unbalance of economic and social development in the Com­
  munity are having ever widening repercussions on the security of employment
  for workers ; :        . 'j
           whereas moreover , the balanced economic and social development of
  the Community requires the provisions mentioned above to- be improved and
  harmonized so that the process of economic integration i § prevented, from
  creating pockets of mass unemployment .                    .  ,
      b ) EP  : Unchanged from the Commission proposal
   ;; c)ESC   : After the second recital , add a third and new recital to
  read as follows
           "Moreover , economic changes and the closure of business enter­
  prises which these may involve may be an integral part of a process
  leading to more promising activities ",
  +) Recitals and individual provisions of the proposal for a Directive
      to which the comments of the European Parliament and the Economic
      and Social Committee refer are set out below .
 ---pagebreak---                                    - 3 -               V/905/ 73-E
- amend the fourth recital as follows :
        "Whereas moreover the balanced economic and social development
of the Community requires the provisions mentioned above to be improved
and harmonised in a progressive manner in accordance with Article 11?
so that the process of economic integration does not give rise to large
pockets of unemployment or underemployment"®                     j
        d ) Remarks
        The amendments proposed by the Economic and Social Committee
presents a legal problem : It would appear necessary to request the
opinion of the Legal Service , as to whether the reference to Article
117 of the Treaty is compatible v/ith Article 100 thereof which forms
the legal basis for the proposed directive ( see the note to the Legal
Service of 31 July 1973 - NO 73-035^5 )*
B. ARTICLE 1 - al » 1
   a ) Initial
       where an employer intends to dismiss ten or more workers for one
or more reasons , in particular for economic or technical reasons and in­
                                                   «<
dependent of the individual behaviour of those workers , such intention
                                                  lr?
and all relevant information such as the reasons for dismissal , the
exact number of workers to 'be '"dismissed and the period during which
the dismissals are to be carried out must be notified to the competent
public authority of the Member State .
   b)   EP : Unchanged from the Commission proposal
   c ) ESC : Amend as follows :
       "Where an employer intends to effect redundancies for one or more
reasons not relating to the workers themselves , that employer must noti­
fy the appropriate public authority of the Member State of such inten­
tion in cases where over one month , the proposed number of redundancies is
        1 . more than 5 in enterprises normally employing more than 20 and
            less than 50 workers ;
        2 . more than 10 % of the usual number of employees and . more than
            25 in enterprises normally employing 50 or more and less than
            500 workers ;
        3 « 50 or more in enterprises normally employing 500 or more workers .,
 ---pagebreak---                                  - k -                 V/1 299/73-E
        The notification shall contain all relevant information such as
the reasons for the redundancies the exact, number of workers to be made
redundant and the time over which those redundancies are to.be made .
        For the purposes of article 1 , the . enterprise shall be the
local unit of employment .               ,
d ) Remarks                                                         '   .
        With the exception of certain textual amendments , the proposal
of the ESC is to the effect that the number of dismissals to be notified
should be kept in proportion with the total staff complement of the
enterprise in question . The committee is here taking up an idea already-
set forth by the Commission in document V/875^/2/70 (provisions in fa­
vour of workers affected by redundancy tinder the laws of the Member Sta­
tes of the European Community-Summary report ■ and conclusions of the Com­
mission ) .
        This consideration has not been included in the original text of
the proposed directive for the following reasons : the notification to
the competent special authorities of the proposed dismissals is of
great importance for employment policy as regards the local labour market
Following this notification , the competent national authorities must be
prepared to take the measures required , mainly with regard to making
available existing posts or creating new posts . for the workers made
redundant .
    1   In this context , only the number of workers to be made redundant
is of prime importance , while the total staff complement of the enter­
prise concerned only plays a secondary role .
        However , there are no real reasons for not accepting the ESC 's
proposal , particularly as the representatives of the workers' and
employers' organisations expressed a favourable opinion on this
version . Nevertheless , it appeared necessary to alter the combination
of numbers proposed by the ESC the interests of clairty without charging
the actual substance of the proposal'-.-
 ---pagebreak---                                  - 5 -                   V/1 299/73-E
C. ARTICLE 1 - Al . 2
   a ) Initial text of the Commission
         The results of consultations with the workers' representatives ,
provided for in Article      must be annexed to the notification or sent
as soon as possible .
   b ) EP : This notification shall be accompanied by a statement of the
outcome of the consultation of workers' s representatives stipulated in
Article k ( six words deleted ).
   c ) ESC : to be amended as follows :                          ..
         The outcome of consultations of the workers * representatives
provided for in Article     must be enclosed with this notification .
If the outcome is not know at the time of notification , the latter
shall be accompanied by a communication concerning the opening and
the progress of the consultation procedure ; the outcome thereof must
be sent within tL^ee weeks .
   d ) Remarks
         The amendments proposed by the European Parliament and by the
Economic and Social Committee are mainly concerned with defining the
conditions under v/hich the employer must transmit the results of con­
sultations with the workers 1 representatives to the public authorities ,
to the extent that these details have not been attached directly to the
notification itself .
         Whereas the present text of the proposed directive provides for
the possibility in such a case of transmitting these results as soon as
possible , the ESC fixes a period of three weeks within which this shall
be done , while the European Parliament would wish simply to abolish this
delay altogether , and asks that the results of the consultations be di­
rectly attached .
         The proposal from the European Parliament does not seem realistic .
It does not take account of the fact that those consultations may last
some time , and in such a case would prevent the employer from notifying the
proposed dismissals to the public authorities , although it is in every
interest of the letter to be informed of these as soon as possible .
       , The proposal from the ESC takes the situation into consideration
but nevertheless restricts the period to three weeks . In the opinion of
the representatives of trade and professional organizations meeting within
the committee of experts , this seems to give adequate time . This proposal
has the advantage of making the present text of the directive more precise
and the latter would therefore be amended to this effect .
 ---pagebreak---                                           - '6 -                V/1 299/73-E
    D. ARTICLE 2 - al. 1
       ■ ■– i . m l i  n ■. i n i i                                                    f
       a ) Initial text of the Commission          . .... ., i/                       :
                 Except where otherwise stated by the competent public authority , tH*
    dismissals notified to that authority shall take effect one month after          ;
    such notification , without prejudice to any individual rights regarding
    length of notice .
       b ) EP : Unchanged from the Commission proposal
               ESC : Except where otherwise stated by the appropriate public autho­
    rity , the redundancies notified to that authority in accordance with Ar­
    ticle • 1.(1 ), and ( 2 ) shall take effect one month after such notification ,
    without prejudice to any individual rights regarding length of notice ,
       d ) Remarks
                 The textual amendments proposed by the ESC are acceptable .
    E. ARTICLE 2 - al. 2
       a ) Initial text of the Commission
                 This period shall be used by the public authority to seek solu­
    tions to the problems raised by the proposed redundancies .
       b + c ) EP + ESC :
                 This period shall be used by the public authority to seek solu­
    tions to the problems raised by the proposed redundancies .
       d ) Remarks
                 The amendment proposed jointly by the European Parliamenb and
    by the ESC would give an obligatory character to the present optional
    provision . Since this is in accordance with the objectives of the pro­
* - posed directive , the amendment may be accepted .
 ---pagebreak---                                    - 7 -                V/1 299/73-E
F. ARTICLE 2 - al. 3
    a ) Initial text of the Commission
          The public ruthority may extend this period by one month , the
employer must be informed of the extension not later than three weeks
after this notification .
    b ) EP : Unchanged from the Commission proposal
    c ) ESC : If the efforts , mentioned in paragraph 2 , of the appropria­
te public authority are to no avail , this period may , exceptionally ,
be extended by one month , provided that the survival of the underta­
king is not jeopardised thereby . The employer must be informed of the
extension and of reasons that render it necessary not later than three
weeks after the notification .
    d ) Remarks
          The version proposed by the ESC underlines the exceptional na­
ture of this provision and is alone the lines of the initial - text of
the proposed directive . It may therefore be accepted .
6 . ARTICLE . 3 - Al . 1
    a ) Initial text of the Commission
          The competent public authority may oppose all or part of
the dismissals notified if , after investigation , it is found that
the reasons , within the meaning of Article 1 , invoked by the employer
are inexact .
    b ) EP : unchanged from the Commission proposal
    c ) ESC :                    ' ^ .                         " ""
          The competent public authority may refuse to authorise the
          redundancies notified if , after investigation , it is found
        . that the reasons , within the meaning of Article 1 , invoked
          by the employer are without foundation .
    d ) Remarks
          The considerations on which the wording if the proposed
directive is based take account of the fact that the competent
authorities may do no more than note the existence of the motives
invoked by the employer in relation to the proposed redundancies
The authorities are not empowered to judge either the legality or
advisability of the proposed measures and consequently may not
encroach upon the jurisdiction of the courts or on the management of
the enterprise concerned .
          As the amendment proposed by the ESC makes this position
clear , it may be accepted .
 ---pagebreak---                                    - δ -                 V/1299/73-E
H. ARTICLE k - Al . 1
   a ) Initial text of the Commission
        The competent public authority may suspend the dismissals
if the consultation with the workers representatives provided for in
Article 3 » 1 • and 2 . has not taken place , or where appropriate , if
application has been made for mediation as provided for in Article
   3 * In such cases the competent authority may extend the period
provided for in Article 2 , 1 . by not more than two months . ' "
   b ) EP :
        The appropriate public authority may suspend the redundancy
        measures and extend the period stipulated in Article 2(1 )
        by not more than two months if the consultation of workers
        representatives stipulated in Article k ( 1 ) and ( 2 ) has
        been concluded without agreement and a request accordingly
        made for conciliation .
   c ) ESC : The appropriate public authority may suspend the redun­
              dancy measures and extend the period stipulated in Arti­
              cle 2 ( 1 ) by not more than one month if a request has
              been made for mediation as provided for in Article ^ (3 )«
   d ) Remarks : The amendments proposed by the European Parliament
and the ESC have the same object , namely , to provide that the period
referred to in Article 2 ( 1 ) may only be prolonged in cases where
the mediation procedure referred to in Article 4 has been requested .
                                                               i
Following the new version of Article 1 ( 2 ) proposed by the European
Parlisient and by the ESC , the provision included in the initial text
of the proposed directive under which the period is prolonged if the
workers ' representatives have not yet been consulted becomes supa--
fluous and may be deleted .
        The proposal from the ESC to extend the period to a
maximum of one month ( instead of two ) where the mediation procedure
has been initiated should also be accepted .
 ---pagebreak---                                   - 9 -                   V/1 299/73-E
I. ARTICLE k - Al . 1
   a.) Initial text of the Commission
        If the number of dismissals referred to in Article 1 is 50 or
more the employer shall consult the representatives of the workers of
the enterprise in question before notifying these dismissals to the
competent public authority with the object of reaching an agreement .
        In the number of dismissals is less than 50 , the compe­
tent public authority may ask the employer to consult the workers'
representatives , if it considers it necessary . The representatives
shall be those provided for by national procedures in force .
   b ) EP : Before notifying the public authority of redundancy
             measures in accordance with Article 1 , the employer; shall
             arrange consultation of workers ' representatives in the.
             undertaking concerned , with a view to reaching an agree­
             ment . The representatives consulted shall be those stipu­
             lated in the relevant national provisions .
   c ) ETC : Before notifying the appropriate public authority of the
             redundancy measures referred to in Article 1 , the
             employer shall be obliged to arrange consultation of re­
             presentatives of the workers concerned in order to try
             to reach an agreement .
   d ) Remarks :
        The European - Parliament and the ESC propose that the
present text of the proposed directive be amended to provide that
the workers representatives shall be consulted in the case of dis­
missals as referred to in Article 1(1 ), while the present text pro­
vides for obligatory consultation only in the case of redundancies ,
involving fifty workers or more , a lesser number of dismissals only
requiring application to the public authorities .
        The amendment proposed by the European Parliament and the
ESC undoubtedly affords the workers greater protection and is in
accordance with present day thinking ivhich aims at increasing
workers 'participation in the decisions taken by management .
        It would therefore be preferable to the text of the
proposed directive accordingly .
 ---pagebreak---                                    - 10 -                 V/1 299/73-E
J. ARTICLE k - Al . 2
    a ' Initial text of the Commission                 v
         These consultation may cover in particular :
- the possibilities of avoiding or reducing the proposed dismissals ,
- what criteria to apply when deciding which workers to dismiss ,
  the possibility of giving other jobs in the same enterprise to
  workers threatened with dismissal , whether by retraining , by
  transfer to another part of the enterprise or by amending their
  conditions of employment ,
- compensation for reductions in salary and other benefits ,
- measures to be taken in favour of workers to be dismissed , in
  particular with regard to severance grants and priority for
  re-employment ,
- procedural details , in particular the staggering of dismissals .
         To this end , the employer must supply the workers ' repre­
sentatives mentioned above with all necessary information , in
writing , and in all cases must give the information set put in
Article 1 , 1 ., so that they can put forward constructive proposals .
   b ) EP : Unchanged from the Commission proposal
    c ) E5C : - possibly , compensation for reductions in salary and
                 othed benefits ,
               - measures to be taken in favour of workers to be
                 dismissed , in particular with regard to the possibility
                 of severance grants and priority for re-employment .
    d ) Remarks As regards the fourth and fifth indents in the initial
text , there . is no objection to the textual amendments proposed by the
ESC .
 ---pagebreak---                                    - 11 -             V/1 299/73-E
ARTICLE k - Al o 3
a) Initial text of the Commission : If agreement is not reached between
    the parties at the consultations ,, each nay request the public autho­
    rity to act as mediator# .
b ) 33?" : Unchanged from the Ccrrmission proposal
c ) ESC : If agreement ±3 nob reached between the parties at the consul­
           tations , each may request the public authority to act as me-
           diator® If one party only should request the mediation of the
           public authority , the other party shall be bound to take part
           in this procedure 1,
d ) Remarks : The amendment proposed by the EGG provides that , where one
    of the parties -has decided to have recourse to the mediation proce­
    dure , the other party should be obliged to accept this * This in order
    to avoid one of the parties refusing to participate in such mediation
    which would therefore not take place , in spite . of the desire of the
    other, party to - employ this procedure with a view to solving the con­
    flict . ■
           It must nevertheless be accepted that obligatory recoarse to a
    mediation procedure in no way commits either of the parties to the
    acceptance or the rejection of the results of such procedure#
           The proposed amendment put forward by the ESC can be accepted
    insofar as , in view of the present situation in certain Member States
    the previsions are warded in such a way as to enable the parties con­
    cerned to first of all avail themselves of a mediation procedure
    which '.dose not involve intervention by the public authorities®
           Assistance from the public authorities may be request by either
    of the parties where agreement on a mediation procedure between them
    has not proved possible#
 ---pagebreak---                                 - 12 -                   V/ 1 299/73-E
L. ARTICLE 5                                          -    ■
   a ) Initial text of the Commission : Within six month from the date
of notification of this Directive , the' Member States shall, amend
their legislation to conform to preceding -provisions and shall
immediately inform the Commission thereof . The legislation thus amended
shall be applied at the latest one year thereafter .
   b ) EP : Unchanged from the Commission proposal
   c ) CES : Insert the word "minimum" before the word " provisions " in
             the third line
   d ) Remarks
        The request made by the ESC to insert the concept of "minimum
provisions" into the text cannot be accepted for legal reasons . A
form of wording along similar lines has been included at the end of
the recitals .
M. ARTICLES 6 and 7
        The European Parliament ana the Economical and Social
Committee have not made any remarks concerning these Articles .