CELEX: 51996PC0475
Language: en
Date: 1996-10-16
Title: Proposal for a COUNCIL REGULATION (EC) on statistics on the level and structure of labour costs

COMMISSION OF THE EUROPEAN COMMUNITIES
                                      Brussels, 16.10.1996
                                      COM(96) 475 final
                     Proposal for a
            COUNCIL REGULATION (EC)
on statistics on the level and structure of labour costs
             (presented by the Commission)
 ---pagebreak---  ---pagebreak---                                  EXPLANATORY MEMORANDUM
1.     In order to carry out its tasks in the field of economic and social affairs, particularly with
       regard to employment and working conditions, the Commission needs to have at its disposal
       data on labour costs and employees' earnings in the Community providing a valid basis for
       comparison between countries. For this reason, a series of specific Community surveys on
       labour costs in industry1, commerce, banking and insurance2 has been carried out since 1960
       in pursuance of Council Regulations. These surveys were conducted by the Commission of
       the European Communities in cooperation with the National Statistical Services in the
       Member States.
2.     In line with the decisions taken at the Essen summit, the Member States have taken measures
       to put in place various action programmes concerning in particular labour market flexibility,
       job-creation andfightingunemployment. In order to set out more clearly the context in which
       these policies are implemented and to provide the means for a follow-up to the national
       employment programmes, the Commission departments will in the coming years have the
       need to have statistical information available on the various aspects of earnings and labour
       costs.
3.     The development of the European Community and the operation of the single market
       increase the need for comparable data on the level, trend and structure of employers' labour
       costs and employees' earnings, particularly as a means of analysing growth, competitiveness,
       employment, the progress of economic and social cohesion and for establishing reliable
       comparisons between the Member States and the regions of the European Community. The
       planned statistics will therefore provide detailed data on employers' expenditure on wages,
        salaries and related contributions, as well as on hours worked and the total staff employed.
   Regulation No. 10 (OJ No. 56, 31.8.1960 p. 1199/60)
   Regulation No. 14 (OJNo. 55,16.8.1961 p. 154/61)
   Regulation No. 28 (OJ No. 41, 28.5.1962 p.1277/62)
   Regulation No. 151 (OJNo. 133, 13.12.1962 p.2841/62)
   Regulation No. 101/66/EEC(OJNo. 134, 22.7.1966, p.2540/66)
   Regulation (EEC) No. 1899/68 (OJ No. L 289, 29.11.1968, p.4)
   Regulation (EEC) No. 2259/71 (OJNo. L 238, 23.10.1971, p.l)
   Regulation (EEC) No. 328/75 (OJ No. L 37, 12.2.1975, p.l)
   Regulation (EEC) No. 494/78 (OJ No. L 68, 10.3.1978, p.l)
   Regulation (EEC) No. 1596/81 (OJNo. L 159,17.6.1981, p.l)
   Regulation (EEC) No. 3149/83 (OJ No L 309, 10.11.1983, p.2)
   Regulation (EEC) No. 1612/88 (OJ No L145, 11.6.1988, p.l)
   Regulation (EEC) No. 3949/92 (OXNo L 404, 31.12.1992, p.7)
   Régulation (EEC) No. 2053/69 (OJ No L 263, 21.10.1969, p.8)
   Regulation (EEC) No. 3192/73 (OJ No L 326, 27.11.1973, p.l)
   Regulation  (EEC) No. 494/78 (OJ No. :.68, 10.3.1978, p.l)
   Regulation (EEC) No. 1596/81 (OJ No, L 159, 17.6.1981, p.l)
   Regulation  (EEC) No. 3149/83 (OJNo L309, 10.11.1983, p.2)
   Regulation  (EEC) No. 1612/88 (OJNo L 145, 11.6.1988, p.l)
   Regulation  (EEC) No. 3949/92 (OJ No L 404, 31.12.1992, p.7)
                                                           1
 ---pagebreak--- JUUUUWWUWUUWUUUUUUUUl^^
     4.      The comparative analysis of the level and composition of labour costs in the Member States
             requires that data be obtained on the basis of common definitions and harmonised statistical
             methods. These conditions are met by Community statistics on labour costs, which to date
              constitute the sole European source of statistics on wages and salaries providing a valid basis
             for comparison. This is why the results published by Eurostat are valued highly by the
              Commission departments, economic and social decision makers and researchers. In the
              drafting of the Regulation it was taken into account that the European System of National
              and Regional Accounts in the European Community (ES A-95)3 is the term of reference for
              standards, definitions and accounting practices in the Member States in order to meet the
              Community needs.
      5.      The Commission's activities in various domains require up-to-date figures on wage and salary
              costs. Eurostat, in cooperation with the competent authorities in the Member States, has
              worked out methods of updating the main results of the statistics on labour costs. However,
              since enterprises' expenditure on wages, salaries and related employers' contributions is
              subject to substantial change, such updating can only furnish valid results in the years directly
              following the production of the statistics; thereafter, new Community statistics need to be
              produced in order to bring up to date the results of the 1992 survey.
      6.      In the course of the Council discussion on the Regulation relating to the 1984 survey, it was
              decided to set the interval between surveys at four years, so that the subsequent statistics
              were produced with reference to 1988 and 1992. It is necessary to maintain this periodicity
              and to produce the next statistics with reference to 1996.
      7.      In keeping with the principle of subsidiarity, responsibility for the overall planning of the
               statistics on labour costs at EU level is shared between the Commission and the Member
               States, in order to achieve harmonisation of concepts and classifications in the data collected,
               and to identify the information required by the principal users, i.e. Community institutions,
               national governments, regional and local authorities, international organisations, employers'
               associations, trade unions and research bodies. The actual collection of data and the
              implementation of methods used to do this are the responsibility of the Member States.
      8.      The statistics shall cover all economic activities defined in sections C (Mining and quarrying),
              D (Manufacturing), E (Electricity, gas and water supply), F (Construction), G (Wholesale
               and retail trade; repair of motor vehicles, motorcycles and personal and household goods), H
               (Hotels and restaurants), group 63.3 (Activities of travel agencies and tour operators; tourist
               assistance activities not elsewhere covered) of section I (Transport, storage and
               communications), divisions 65 (Financial intermediation, except insurance and pension
               funding) and 66 (Insurance and pension funding, except compulsory social security) of
               section J (Financial intermediation) and section K (Real estate, renting and business activities)
               of the Classification of Economic Activities in the European Community (NACE Rev. 1)
               established by Regulation.(EEC) No 3037/90 (4), subject to the special provisions mentioned
               in the Annex to the Regulation.
      (3) Regulation No xxxx/96/EEC OJ No Lxxx, XX.XX. 1996, p. x
      (4)OJNoL293,24.10.1990,p. 1. Regulation as amended by Regulation (EEC) No 761/93 of24 March 1993, OJNo
      L83, 03.04.1993, p. 1.
 ---pagebreak--- 9.  It is not intended that all businesses be covered as part of an exhaustive survey, but rather
    that a representative sample be taken. Accordingly, in countries with sufficient sources of
    statistical data, especially data gathered by public authorities, it will be acceptable for such
    data to be used (or possibly set out in a simplified form on questionnaires), provided that this
    approach is compatible with the definitions and methodology being used and meets all
    requirements concerning variables. On the same condition, Member States are allowed to
    estimate necessary data using statistical inference methods where some or all of the
    characteristics have not been observed for all the units for which the statistics are to be
    compiled.
10. The specific situation of small and medium sized firms is taken into account in the
    Regulation. The burden on enterprises, particularly on small and medium sized entrprises, and
    representativeness requirements shall be taken into account by the Member States in their
    choice and combination of the sources and the use of estimations.
11. The group of experts on Earnings and Labour Costs Statistics has emphasised the need to
    establish a legal instrument for these statistics as soon as possible, so that the competent
    authorities in the Member States, as well as the businesses to be included in the sample, can
    take the appropriate measures to organise and carry out successfully the exercise.
12. To this end, the Commission submits the attached draft Regulation for the approval of the
    Council.
                                                   Mr
 ---pagebreak---                                                      twwunwuwww^nimnnH'utn.n.na"1'"-"-'^" " M^i.'i'<.l<.'<,lui..'',.",.".".'i..".,^.'',.'',N".n^^.'t.||ij^!i'n»,;<,i\.ii„nM.^'}js
                                      PROPOSAL FOR A COUNCIL REGULATION (EC)
on statistics on the level and structure of labour costs
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular Article
213 thereof,
Having regard to the proposal submitted by the Commission,
Whereas, in order to carry out the tasks assigned to it, the European Union must be kept
informed of the level, trend and structure of employers' labour costs and employees' earnings
in the Member States;
Whereas the development of the European Community and the operation of the single market
increase the need for comparable data on the level, trend and structure of employers' labour
costs and employees' earnings, particularly as a means of analysing growth, competitiveness,
employment, the progress of economic and social cohesion and for establishing reliable
comparisons between the Member States and the regions of the European Community;
Whereas the best method of assessing the situation as regards the level, trend and structure of
 employers' labour costs and employees' earnings is to produce specific statistics on labour
 costs, as was most recently done in 1993 pursuant to Regulation No 3949/92/EEC<1) referring
to accounting data of 1992;
Whereas, because of the variations in the position and composition of expenditure by
 enterprises on wages and related employers' contributions, new community statistics need to
be produced based on accounting data for 1996 in order to bring up to date the results of the
 previous survey;
Whereas, pursuant to Regulation No xxxx/96/EC(2) the European System of National                                                    and
Regional Accounts in the European Community (ESA-95) is the term of reference                                                         for
 standards, definitions and accounting practices in the Member States in order to meet                                               the
 Community needs; whereas this necessitates the establishment of complete, reliable                                                and
 comparable statistical sources at national and regional level;
 Whereas the statistical information available in each Member State does not                    provide a valid
 basis for comparisons, in particular because of the differences between laws,                  regulations and
 administrative practices of the Member States, and whereas Community                             statistics must
 therefore be produced and the results processed on the basis of common                          definitions and
 harmonised methodologies;
 Whereas, in accordance with the principle of subsidiarity, the creation of common statistical
 standards enabling harmonised information to be produced is action which can only be
 effectively undertaken at Community level; whereas these standards will be implemented in
 (1) OJ No L404, 31.12.1992, p. 1
 (2) OJ No Lxxx, xx.xx.1996, p. x
 ---pagebreak--- each Member State on the authority of the agencies and institutions appointed to compile
official statistics;
Whereas, pursuant to Decision No 93/464/EEC(3), the production of Community statistics on
labour costs is one of the priority actions of the Statistical Programme 1993 to 1997;
Whereas it may be acceptable for the countries which have administrative sources or other
appropriate statistical sources to use these or perhaps link them up with a simplified
questionnaire if this method is compatible with the definitions and methods approved and
corresponds to the whole set of variables required;
Whereas it is necessary to simplify the administrative procedures for enterprises, particularly
smaller enterprises, including the promotion of new technologies for data collection and
compilation; Whereas it may still be necessary to collect directly from businesses the data
necessary to compile labour cost statistics, using methods that are exhaustive, reliable and up
to date, without giving rise for the parties concerned, in particular for small and medium-sized
businesses, to a burden out of proportion to the results which the users of the said statistics
can reasonably expect;
Whereas it seems appropriate to make provisions for exceptions for certain Member States, in
order to take account of particular technical difficulties encountered by such States on the
collection of certain types of information, provided that the quality of the statistical
information is not affected;
Whereas the Statistical Programme Committee established by Council Decision 89/382/EEC,
Euratom(4), consulted by the Commission in accordance with article 3 of the aforesaid
Decision, has declared itself in favour of the present proposal,
HAS ADOPTED THIS REGULATION:
 (3) OJ No L 219, 28.08.1993, p. 1
 (4) OJ N0LI8I, 28.06.1989, p. 47
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                                                                             Article 1
                                                                 General provisions
The Member States and the Commission, within their respective fields of competencies, shall
produce Community statistics on the level and structure of employers' labour costs in the area
of economic activities defined in Article 3.
                                                                             Article 2
                                                                      Reference period
The statistics shall be produced on the basis of statistical information for the financial year of
1996, subject to the special provisions mentioned in the Annex to this Regulation.
                                                                             Article 3
                                                                                  Scope
The statistics shall cover all economic activities defined in sections C (Mining and quarrying),
D (Manufacturing), E (Electricity, gas and water supply), F (Construction), G (Wholesale and
retail trade; repair of motor vehicles, motorcycles and personal and household goods), H
(Hotels and restaurants), group 63.3 (Activities of travel agencies and tour operators; tourist
assistance activities not elsewhere covered) of section I (Transport, storage and
communications), divisions 65 (Financial intermediation, except insurance and pension
funding) and 66 (Insurance and pension funding, except compulsory social security) of section
J (Financial intermediation) and section K (Real estate, renting and business activities) of the
 Classification of Economic Activities in the European Community, hereinafter referred to as
 "NACE Rev.l" established by Regulation (EEC) No 3037/90 (5), subject to the special
provisions mentioned in the Annex to this Regulation.
                                                                             Article 4
                                                        Information requirements
 The compilation of statistics on labour costs shall be based on any of the statistical units
 defined in the Regulation (EEC) No 696/93 (6) and shall provide information referring to local
 units classified by their own principal activity, by region at least at level 1 of the Nomenclature
 of Territorial Units for Statistics (NUTS 1), established by the Commission (Eurostat), and by
 (5)OJNoL293, 24.10.1990, p. 1. Regulation as amended by Regulation (EEC) No 761/93 of 24 March 1993
 OJ No L83, 03.04.1993, p. 1.
 (6) OJ No L76, 30.03.1993, p. 1
 ---pagebreak--- size class in terms of employment of the enterprise on which the local units are dependent.
Information is required only for enterprises with at least 10 persons occupied.
                                            Article 5
                           Characteristics of the required information
Data shall be collected on:
 1. total labour costs, including: direct remuneration; bonuses and allowances; payments for
    days not worked; severance pay; benefits in kind; all incidental expenditure, including
    employers' statutory and customary contributions to social security and direct social
    benefits; vocational training costs; other expenditure and any taxes and subsidies directly
    related to labour costs;
 2. the total staff employed and
 3. working time,
 subject to the special provisions mentioned in the Annex to this Regulation.
                                             Article 6
                                          Data collection
 1. A survey shall be carried out through the appropriate statistical services of the Member
     States which shall draw up the appropriate methods for collecting the information.
 2. Employers and other persons required to supply information shall reply to the questions
     truthfiilly, completely and within the time limits set. The Member States shall take
     appropriate measures to avoid any infringement of the obligation to supply the information
     referred to in Article 5.
 3. The survey need not be carried out if the Member States have information from other
     appropriate sources or Member States are able to produce estimates of necessary data
     using statistical inference methods where some or all of the characteristics have not been
     observed for all the units for which the statistics are to be compiled. The information from
     other appropriate sources or the estimates of necessary data can only be used if they are at
     least equivalent to survey requirements as regards accuracy, quality and timeliness.
 4. The burden on enterprises, particularly on small and medium-sized enterprises, and
    representativeness requirements according to Article 7 shall be taken into account by the
    Member States in their choice and combination of the sources and the use of estimations
    mentioned in paragraph 3.
                                                        ?f
 ---pagebreak--- 5. The Member States shall transmit to the Commission (Eurostat) at its request all
     information, particularly concerning methodologies, needed for the application of this
     Regulation.
                                             Article 7
                                        Representativeness
The reliability and comparability on a high quality level shall be attained by the use of sample
sizes allowing that the relative standard error for the variable "hourly labour costs" by division
of NACE Rev. 1 does not exceed 3 %.
                                             Article 8
                                        Processing of results
The statistical services of the Member States shall process the replies to the questions referred
to in Article 6(2) or the information from other sources, as referred to in Article 6(3), so as to
obtain comparable results.
                                             Article 9
                                       Transmission of results
The results shall be transmitted within a period of 18 months from the end of the calendar year
corresponding to the reference period, including data declared confidential by the Member
States pursuant to domestic legislation or practice concerning statistical confidentiality, in
accordance with the provisions of Regulation (Euratom, EEC) No 1588/90 (7) on the
transmission of data subject to statistical confidentiality to the Statistical Office of the
European Communities.
                                             Article 10
                                  Arrangements for implementation
The arrangements for implementing the present regulation, in particular:
          definitions to be used,
          the levels of breakdown to be applied to the variables,
          guidelines on accuracy and the aspects of quality,
          the appropriate forms of the transmitted variables and
          the results to be transmitted
 shall be laid down in accordance with the procedure set out in Article 11.
 (7) OJ No L151, 15.06.1990, p. 1
                                                  9
 ---pagebreak---                                             Article 11
                                            Procedure
The Commission shall be assisted by the Statistical Programme Committee set up by Council
Decision No 89/382/EEC, Euratom (8), hereinafter referred to as "the Committee".
The representative of the Commission shall submit to the Committee a draft of the measures to
be taken. The Committee shall deliver its opinion on the draft within a time limit which the
Chairman may lay down according to the urgency of the matter. The opinion shall be delivered
by the majority laid down in Article 148(2) of the Treaty in the case of decisions which the
Council is required to adopt on a proposal from the Commission. The votes of the
representatives of the Member States within the Committee shall be weighted in the manner
set out in that Article. The Chairman shall not vote.
The Commission shall adopt measures which shall apply immediately. However, if these
measures are not in accordance with the opinion of the Committee, they shall be
communicated by the Commission to the Council forthwith. In that event, the Commission
shall defer application of the measures which it has decided for a period of three months from
the date of communication.
The Council, acting by a qualified majority, may take a different decision within the time limit
referred to in the previous paragraph.
                                            Article 12
                                         Entry in force
This Regulation shall enter into force on the twentieth day after its publication in the Official
Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,
                                                               For the Council
                                                                The President
 (8) OJ No L181, 28.06.1989, p. 47
                                                           10
 ---pagebreak---                                            ANNEX
                                 SPECIAL PROVISIONS
I.  Exceptions to the reference period (Article 2)
    For Sweden: thefinancialyear 1997 on the condition of providing estimates for the
    reference year 1996.
n.  Exceptions to the scope of the survey (Article 3)
    1.    For all the Member States: class 65.11.
    2.    For Germany, section K, group 63.3 of section I.
    3.    For Greece: section K.
    4.    For France: division 73 of section K.
    5.    For Ireland: section H.
    6.    For Austria: sections F, G, H, class 63.3 of section I.
    7.    For Portugal: section K.
IH. More detailed information (Article 5)
    Member States may provide for the supply of more detailed information, notably by
    making a distinction between manual and non-manual workers or by covering units with
    fewer than 10 employees.
    In order to take account of the particular circumstances regarding the aggregation of the
    results at national level, provided that the quality of the statistical information is not
     affected, Germany may compile distinct statistics for the Federal Republic of Germany,
    including West Berlin, as constituted prior to 3 October 1990, and for the new Lander,
     including East Berlin. The provisions of Article 7 on representativeness shall be applied
     separately on each aggregate.
                                                      ii
 ---pagebreak---                        FINANCIAL STATEMENT NO 1
1. TITLE OF THE ACTION
   Draft Council Regulation on statistics on the level and structure of labour costs
2. BUDGET LINES INVOLVED
   Line B5-6000
3. LEGAL BASIS
   Article 213 of the Treaty
4. DESCRIPTION OF THE ACTION
   4.1     General purpose of the action
           The purpose of the present Council Regulation is to make Community
           statistics on the level and structure of labour costs in the European Union
           available to all users. These data are essential for defining, monitoring and
           assessing economic, social and labour market policies at the regional,
           national and Community levels. A series of specific Community surveys
           on labour costs in industry, commerce, banking and insurance has been
           carried out since 1959 in pursuance of Council Regulations.
           Conducting this survey at European Union level is one of the priority
           projects of the 1993-1997 framework statistical programme of the
           Community (OJL 219, 28.8.1993).
   4.2     Period covered by the action and procedures for renewing or extending it
           Once only action in accordance with the draft Council Regulation
           (Euratom, EEC) on statistics concerning the level and structure of labour
            costs (collection and processing of data and forwarding of the results to
           Eurostat) covering the period 1997-1999.
                                           13L
 ---pagebreak---                                                                                          nnniwTwnnxn
5. CLASSIFICATION OF EXPENDITURE/INCOME
   5.1.    Non-compulsory expenditure
   5.2.    Differentiated appropriations
   5.3.    Type of income envisaged
           Sales of statistical products (database data and publications) cover some of
           the production costs.
6. TYPE OF EXPENDITURE/INCOME
   The Commission's contribution to Member States' expenditure represents only
   part of the real cost of collecting data - of the order of 26% - since the
   Commission's statistical work is devolved to a large extent, the operating and
   administrative costs being borne almost exclusively by the national governments.
   Nevertheless, the expenditure envisaged is essential to promote standardization of
   the data collected, and for these data to be processed and sent to Eurostat.
   Cofinancing by the public sector (out of the budgets of the national statistical
   offices) and the private sector (income from sales of statistical products).
7. FINANCIAL EFFECT ON                     INTERVENTION           APPROPRIATIONS
   (PART B OF THE BUDGET)
    7.1    Method of calculating the total cost of the action (definition of unit costs)
            The amount to be taken from the Community budget for the project to
            extend the existing systems for collecting data or setting up new surveys
            on labour costs is calculated as follows:
            26% of the- operating costs for the two/three years of the project:
            conducting the survey (1997) and sending the data to Eurostat
            (1998/1999).
            Type of expenditure to be borne by the Member States: production of
            questionnaires, contribution to the costs of collecting, processing, and
            disseminating the data and other operating costs.
            The total action represents an average expenditure of approximately ECU
            7,2 million for all the Member States.
    Total contribution to the Member States (26% of total) (ECU 1,872 million)
                                                  L2>
 ---pagebreak---    7.2.   Breakdown of cost of action (MIO ECUs)
                                    1997               1998            1999              Total
         Member State               1.872                                                 1.872
         Total                      1.872                                                 1.872
   7.3.    Operational costs of studies, experts, etc. included in part B of the budget
           (MIO ECUs)
                                     1997              1998             1999              Total
         Meetings         of          .05               .05              .05               .15
         experts
         Information    and                             .05              .05                 .1
         publication
         Total                        .05                .1               .1                .25
   7.4.    Indicative timetable for commitment and payment appropriations
           The survey will be conducted in 1997 and the results sent to Eurostat in
            1998/1999. It is proposed that payment be made in three phases: the first
           two tranches as a contribution to the cost of collecting and processing the
            data (1997) and a third tranche once the results have been received. The
            last tranche will be payable in either 1998 or 1999 depending on whether
            the data are sent to Eurostat in 1998 or 1999.
                     1997                      1998               1999              Total
             C.A.   ECU 1,872 million                                           ECU 1,872 million
             P.A     ECU 0,561 million    ECU 0,750 million ECU 0,561 million   ECU 1,872 million
                           30%                 40%                30%
8.      ANTI-FRAUD PROVISIONS (AND RESULTS OF IMPLEMENTING
        THEM)
        Payment for the contracts and agreements concluded by the Commission is
        made only on the basis of detailed reports on the completion of the operations
        concerned or the results obtained.
                                                  H
 ---pagebreak--- COST/EFFTCDENCY ANALYSIS ITEMS
9.1. Specific and quantifiable objectives, target population
     The purpose of this Council Regulation is to establish comparable
     statistics on the level and structure of employers' labour costs in the
     European Union. Following the guidelines in the White Paper on
     Growth, Competitiveness and Employment, and the conclusions of the
     Essen Summit, these statistics are indispensable for establishing,
     monitoring and assessing regional, national and Community policies,
     particularly as a means of analysing growth, competitiveness,
     employment, the progress of economic and social cohesion and for
     establishing reliable comparisons between the Member States and the
     regions of the European Community.
9.2. Grounds for the action
     The responsibility for financing this action rests mainly on the Member
      States (cf. 6 above), which have a well-established structure for
      collecting and processing data. Nevertheless, funds from the Community
     budget appear to be necessary, both for countries which are going to
      carry out this type of survey for the first time, and for those which must
      adjust existing surveys to Community -needs. The purpose of this
      financial contribution is to co-finance part of the costs of collecting and
      processing data.
      The purpose of this action is to achieve four results, viz.:
      - to provide the Community Institutions with the quantitative data for
         drawing up, monitoring and evaluating any programme of action
         pursuant to Article 3 (2) of the Financial Regulation: "it therefore
         contributes to more effective and relevant use of the Community
         budget";
      - to provide the national governments with comparable statistics on all
         the Member States for evaluating and monitoring the progress of
         Community policies;
      - to provide political, economic and social decision-makers in the
         Community with the data necessary to take and assess decisions in
         their respective fields of action: it is therefore a key component of the
         European information market;
       - to provide the scientific community with the information necessary to
         further study and obtain more information on economic and social life
         in the Community.
                                           \S
 ---pagebreak---      The results of the action will contribute to improving the statistical
     information used in the work linked to social policy, economic cohesion
     and convergence in the internal market.
     Statistical information is collected using a system largely based on the
     principle of subsidiarity, in which the national systems have a
     responsibility as regards each Member State. The Community Statistical
     Programme will become an integral part of the national statistical
     programmes, thus contributing to creating a European statistical area.
     The potential of multiplier effects is fairly small. Nevertheless, the data
     concerned by the draft regulation will be of increased interest in that
     users will have access to a set of data which will enable them to make
     international comparisons of labour costs.
     The specific results of the action could be affected if some of the
     Member States - or the Commission - did not succeed in releasing the
     resources needed for the action to succeed.
9.3. Monitoring and assessing the action
     The action forms part of the Community Statistical Programme, which is
     monitored continuously by means of a general table which determines
     the objectives and resources required for each project as a function of
     the objective/performance ratio. At the beginning of each year, Eurostat
      produces a progress report on the programme as at the end of the
      previous year. It comprises three parts as follows:
      the first summarizes the main achievements of the year in respect of each
      policy;
      the second describes the objective of each project and the results
      achieved;
      the third gives statistics on the use of human, budgetary, computer and
      administrative resources in the course of the previous year.
                                           (4,
 ---pagebreak---                                                                                           * ^«*WOWWCS««7*>'
10. ADMINISTRATIVE EXPENDITURE (PART A OF THE SECTION HI
    OF THE GENERAL BUDGET)
    10.1. Effect on number of staff?
                             Staff to be   allocated    of which                duration
           Type of          Permanent      Temporary  By using     By using
           staff                                      resources    additional
                                                      present in   sources
                                                      the DG or
                                                      service
                                                      concerned
           Permanent      A      .5             0          .5          0         1997-98
           staff or       B      .5             0          .5           0
           temporary      C       0             0          0            0
           agents
           Other                                0          0            0
           resources
           Total                  1             0           1           0
    10.2. Overall financial impact of additional human resources
                                                                                    (ECU)
                                               Amount          Method of calculation
           Permanent staff
           Temporary agents
           Other resources
                                     Total
    10.3. Impact on other operational costs
                                                                                    (ECU)
           Budget-line                         Amount          Method of calculation
                                     Total
                                                     O
 ---pagebreak---                                IMPACT ASSESSMENT FORM
           THE IMPACT OF THE PROPOSAL ON BUSINESS, WITH SPECIAL
             REFERENCE TO SMALL AND MEDIUM-SIZED ENTERPRISES
TITLE OF THE PROPOSAL:       DRAFT COUNCIL REGULATION ON STATISTICS ON THE LEVEL AND
                             STRUCTURE OF LABOUR COSTS IN INDUSTRY AND THE SERVICES
                             SECTOR
THE PROPOSAL:
       Taking account of the principle of subsidiarity, why is Community legislation
       necessary in this area and what are its main aims?
       In order to carry out its tasks in the field of economic and social affairs, particularly with
       regard to employment and working conditions, the Commission needs to have at its disposal
       comparable information on the level and structure of labour costs in the Member States of
       the EU. This need has become more pressing because of the new policies set out in the
       White Paper on Growth, Competitiveness and Employment.
       Labour cost data are indispensable for defining and assessing the effect of social policies and
       measures on the labour market at both national and community level.
       The statistical information available in the Member States is an inadequate basis for valid
        comparisons, for reasons which include, in particular, the differences in the nature of the
        surveys and the existing data sources, legal systems and administrative practices. In keeping
        with the principle of subsidiarity, responsibility for the overall planning of the statistics on
        labour costs at EU level is shared between the Commission and the Member States. The aim
        is to achieve comparability of the data, through a common definition of concepts and
        classifications, and to identify the information required by the principal users, i.e.
        Community institutions, national governments, regional and local authorities, international
        organisations, employers' associations, trade unions and research bodies. This has to be
        done without attempting to harmonise the Member States' arrangements for the collection
        of data. The actual collection of data and the methods used to do this are the responsibility
         of the Member States.
                                                (%
 ---pagebreak--- THE IMPACT ON BUSINESS:
2      Who will be affected by the proposal?
       - which sectors of business
       The statistics will cover businesses in sections C (Mining and quarrying), D
       (Manufacturing), E (Electricity, gas and water supply), F (Construction), G (Wholesale and
       retail trade; repair of motor vehicles, motorcycles and personal and household goods), H
       (Hotels and restaurants), group 63.3 (Activities of travel agencies and tour operators;
       tourist assistance activities not elsewhere covered) of section I (Transport, storage and
       communications), divisions 65 (Financial intermediation, except insurance and pension
       funding) and 66 (Insurance and pension funding, except compulsory social security) of
       section J (Financial intermediation) and section K (Real estate, renting and business
       activities) of the Classification of Economic Activities in the European Community (NACE
       Rev. 1), subject to the special provisions mentioned in the Annex to this Regulation.
       - which sizes of business (what is the concentration of small and medium-sized firms)
       The survey will not include enterprises with less than 10 employees. Information is required
       only for enterprises with at least 10 persons occupied.
       It is intended that results be obtained for various sizes of business.
       To reduce the burdens on businesses and National Statistical Institutes , the statistics will be
       carried out by sampling. The sampling plans will be drawn up by the NSIs, which generally
       use different sampling ratios depending on the size of the statistical units to be used. A large
       proportion of the information requested on the questionnaires is available in businesses'
        administrative files, which means that the inconvenience will not be great. Likewise, the
       registers of businesses/local units also contain some of the information required.
       In Member States using to different extents existing data sources, the burden on businesses
       will be considerably less because some variables will be derived from these sources. The
        regulation states that the survey need not be carried out if the Member States have
        information from other appropriate sources which is at least equivalent as regards accuracy,
        quality and timeliness. On the same condition, Member States are allowed to estimate
        necessary data using statistical inference methods where some or all of the characteristics
        have not been observed for all the units for which the statistics are to be compiled.
        Even if all the information needed has to be obtained from the enterprises, the workload is
        kept within reasonable bounds by limiting the list of variables to a selection of easily-
        calculated annual aggregates.
        - are there particular geographical areas of the Community where these businesses are
           found?
        In principle, businesses are located in all Regions and Member States. However, small and
        medium-sized enterprises predominate in certain areas of the EU. In order to draw up more
         detailled tables on labour costs at regional level, some data are requested at NUTS 1 level.
 ---pagebreak--- What will business have to do to comply with the proposal?
The units which are to be included in the surveys will be called on to give accurate and
complete information on the questionnaires which will have been sent to them by their
national statistical offices (and to return the questionnaires within the given deadline).
However, in the Member States which will use to different extents existing data sources the
extra effort required of businesses will be considerably reduced.
What economic effects is the proposal likely to have?
The proposal obviously implies some expenditure in the data collection, for the national
statistical offices and the enterprises sampled. However these costs are far outweighed by
the positive effects :
- on employment
- on investment and the creation of new businesses
- on the competitive position of businesses
Timely, accurate and comparable data on the level and structure of labour costs are
necessary for implementing and assessing economic, social and business policies. In this
respect, the proposed statistics will allow a better understanding of the situation of
employment and the fight against unemployment and will have beneficial effects on
investment and competitiveness. The access to reliable, up-to-date data provided to those
responsible for economic and social-policy decisions will enable them to better appreciate
the socio-economic conditions in which they have to work, and will allow employers to
define general business policies more clearly.
The importance of the Community measures which would benefit in terms of both
implementation and follow-up from the availability of up-to-date statistics on labour costs
would indicate that the resulting benefits will more than justify the costs involved.
Does the proposal contain measures to take account of the specific situation of small
and medium-sized firms?
Yes. In order to reduce the number of units to be covered by the survey, enterprises with
fewer than 10 employees will not fall within its scope. Furthermore, the percentage of small
 and medium-sized enterprises included in the survey is generally much lower than that of
large enterprises because of the sampling methods used at national level. Finally, the
 considerata and article 6.4 of the draft Regulation take account explicitly of the specific
 situation of small and medium-sized firms. The burden on enterprises, particularly on small
 and medium-sized enterprises, and representativeness requirements shall be taken into
 account by the Member States in their choice and combination of the sources and the use of
 estimations foreseen on the Regulation.
                                            lo
 ---pagebreak--- Consultation
The Union of Industrial and Employers' Confederations of Europe (UNICE) took part from
the outset in meetings organised by the "Earnings Statistics" working party throughout the
phase during which the proposal was being formulated. Given the importance (which was
mentioned several times) to employers' associations of information on the level and
structure of labour costs, the representatives of this organisation made an active
contribution to defining the nature of the survey.
The European Trade Union Confederation (ETUC) also supports this project.
The main users in the Commission (DG II and DG V) were consulted on a number of
occasions while the draft was being prepared. Accordingly, their requirements were made
known at the meetings of the working party, thereby enabling the representatives of the
statistical services to take better account of their suggestions.
The overall planning of the proposed draft has greatly benefited from the experience of
previous surveys. In this respect, the aim of the working party has been to prevent the
reoccurrence of the major problems which arose in the past.
                                           21
 ---pagebreak---   ADDITIONAL STATEMENT CONCERNING THE EFTA MEMBERS OF THE
                                             EEA
TITLE OF THE PROPOSED LEGISLATION
Proposal for a Regulation on statistics on the level and structure of labour costs
IMPACT ON THE EFTA MEMBERS OF THE EEA
The EFTA members of the EEA have an interest in the proposed Regulation, and have been
associated in its discussion.
All the EFTA members of the EEA took part in the meetings of the Working Party relating
to this matter.
FINANCIAL STATEMENT
The financial statement annexed to this document concerns the Member States of the
European Union.
                                                 22.
 ---pagebreak---                                                                   ISSN 0254-1475
                                                            COM(96) 475 final
                                              DOCUMENTS
EN                                                                           17
                                    Catalogue number : CB-C0-96-484-EN-C
                                                             ISBN 92-78-09672-5
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