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BackThe implementation of competitiveness within the EU and by the EU was regulated and to a large degree adhered to by the Member States; however, the protection of employees and employment was treated as an orphan by the Union, said Isabelle Schönmann of the European Trade Union Confederation (ETUC). Together with researchers from other institutions, Schönmann presented her findings on corporate restructuring to the Committee on Employment and Social Affairs on October 9th.
The study had been commissioned by the Committee to review the recommendations of Spanish MEP Alejandro Cercas (S&D) with regard to their added value and their impact and to find an answer to the question whether a relevant EU Directive would make sense at all. Thereby the experts came to the conclusion that the recommended measures would have a positive impact on employees and economy. The study revealed that in particular informing and hearing employees at an early stage as well as their targeted education and training were important proposals to tackle job losses and high unemployment figures.
Do employees need an EU initiative for restructuring?
The researchers analysed national and European provisions concerning corporate restructuring and found that - parallel to the deterioration of working conditions through restructuring - no new legal initiatives had been taken at EU level since 2002 and that existing provisions in the Member States had been neglected. Considering the bleak economic outlook for the coming years, the researchers suggest to implement initiatives in the sector of restructuring as the economics of everyday life do not show any signs of departing from business relocations.
The question remains: binding or not?
However, the choice of suitable legislative instrument remains controversial. Over the coming weeks, MEPs must come to an agreement as to what a European initiative on restructuring should look like and whether it should be binding for the Member States or not. The Liberals in the European Parliament would like a non-binding code of conduct. However, the Spanish rapporteur Cercas came out in favour of a binding Directive. In addition, agreement has not yet been reached with regard to the definition of advanced and further education. The question whether employees have a right or even an obligation to education in the first place, has yet to be discussed.
Even though two key aspects of the initiative report have yet to be negotiated, significant progress has been made since the presentation of the initial draft in June 2012. Once work in the European Parliament has been completed, it is the EU Commission’s turn to act. A comprehensive EU Initiative in the sector of corporate restructuring could strengthen the rights of employees, a reason why the European Trade Union Confederation (ETUC) is also supporting the Cercas Report.
Links:
Event on corporate restructuring 19th September
ETUC Resolution
Do employees need an EU initiative for restructuring?
The researchers analysed national and European provisions concerning corporate restructuring and found that - parallel to the deterioration of working conditions through restructuring - no new legal initiatives had been taken at EU level since 2002 and that existing provisions in the Member States had been neglected. Considering the bleak economic outlook for the coming years, the researchers suggest to implement initiatives in the sector of restructuring as the economics of everyday life do not show any signs of departing from business relocations.
The question remains: binding or not?
However, the choice of suitable legislative instrument remains controversial. Over the coming weeks, MEPs must come to an agreement as to what a European initiative on restructuring should look like and whether it should be binding for the Member States or not. The Liberals in the European Parliament would like a non-binding code of conduct. However, the Spanish rapporteur Cercas came out in favour of a binding Directive. In addition, agreement has not yet been reached with regard to the definition of advanced and further education. The question whether employees have a right or even an obligation to education in the first place, has yet to be discussed.
Even though two key aspects of the initiative report have yet to be negotiated, significant progress has been made since the presentation of the initial draft in June 2012. Once work in the European Parliament has been completed, it is the EU Commission’s turn to act. A comprehensive EU Initiative in the sector of corporate restructuring could strengthen the rights of employees, a reason why the European Trade Union Confederation (ETUC) is also supporting the Cercas Report.
Links:
Event on corporate restructuring 19th September
ETUC Resolution