Agreement on Social Policy
The social partners’ agreement proposed a constitutionally recognised role for the social partners in the Community legislative process, which formerly had engaged only the EU institutions. At the same time, there was proposed a major extension of EC competences in the field of employment and industrial relations, allowing for qualified majority voting with respect to some of the new competences.The Agreement on Social Policy was annexed to the Protocol on Social Policy of the Treaty on European Union. This agreement of 31October 1991 proposed a radical change in the Community legislative process in the sphere of social policy.
At the Maastricht summit in December 1991, the then 12 Member States of the European Community were unable to agree on the future direction of social policy in the new European Union. Only 11 Member States were willing to incorporate into the EC Treaty an agreement of 31 October 1991 concluded between the European Social Partners, organisations of employers (UNICE and CEEP) and trade unions, and the European Trade Union Confederation (ETUC). The United Kingdom rejected this proposal and refused to be bound by the Agreement. The Social Policy Protocol to the Treaty of Maastricht (Treaty on European Union) embodied a compromise in the form of an ‘opt-out’ for the UK, thus creating a ‘twin-track’ EU social policy. On one track, all 12 Member States would continue to observe and to be bound by the previous provisions of the ‘Social Chapter’ of the EC Treaty. On a second track, all 12 Member States agreed that 11 Member States could adopt policies on employment and industrial relations, in accordance with the new procedure laid down in the Agreement on Social Policy annexed to the Protocol. It was agreed that the UK would not participate in these procedures, nor would the UK be bound by the outcome of these procedures.
Between 1992-1997, therefore, a ‘two-speed’ Europe operated in the sphere of employment and industrial relations. In accordance with the new social policy procedures of the Protocol and Agreement on Social Policy, only 11 Member States signed the Directives on European Works Councils (1994), parental leave (1996) and part-time work (1997). It was not until May 1997 that the newly elected UK government decided to terminate the ‘opt-out.’ By the Treaty of Amsterdam of June 1997, the Social Policy Protocol was deleted and the Agreement on Social Policy was incorporated into a revised ‘Social Chapter’ of the EC Treaty.
The new Social Chapter of the EC Treaty, as amended by the Treaties of Amsterdam and Nice (Articles 136 ff. EC, now Articles 151 ff.TFEU)), incorporates the Agreement on Social Policy. Specifically, it extends EU competences in the field of employment and industrial relations, obliges the Commission to consult management and labour in the formulation of Community law in the field of social policy, formally establishes a role for management and labour in the legislative process of the EU (including the making of binding agreements at EU level), and allows for qualified majority voting on legislative proposals before the Council of Ministers, in broad areas of employment and industrial relations.
See also: EU system of industrial relations; European social dialogue; European social model; social competences; social dialogue; Val Duchesse.