Weber, Tina

Developments in European Union (EU) and national-level policy with a direct impact on industrial relations were influenced by a number of key trends and events in 1997, many of which are set to continue to be of relevance in the policy debate in 1998:

In the context of the special Employment Summit [1] held in Luxembourg on 20-21 November 1997, the European Centre of Enterprises with Public Participation and of Enterprises of General Economic Interest (CEEP) issued an "opinion on employment policies in Europe". In the document CEEP outlines its priorities in the area of employment policy, with the aim of creating more jobs and achieving a more even balance between the economic and social aspects of the EU single market. [1] http://europa.eu.int/comm/employment_social/elm/summit/en/home.htm

Future Community actions on education and training are to be limited to measures under three key priorities, according to a Communication issued by the European Commission on 21 November 1997. The priorities are:

Criticisms have been levied against the perceived punitive effects of high rates of value-added tax (VAT) by employer and employee representatives in certain sectors - an example is the cleaning industry (EU9710153F [1]). In light of this, the European Commission has put to the European Council, in advance of the latter's Jobs Summit [2] to be held on 20-21 November 1997, the idea of authorising the Member States to apply a reduced rate of VAT on certain highly labour-intensive services supplied locally. The proposal which, if approved, is to apply on an optional and trial basis, is based on the initiative of Mario Monti, the member of the Commission with special responsibility for taxation. If the Council shows itself in favour, the Commission is planning to present a proposal for a Directive outlining the following principles: [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/conference-highlights-contribution-of-sectoral-social-dialogue-to-the-european-employment-strategy [2] http://europa.eu.int/comm/employment_social/elm/summit/en/home.htm

The European Commission adopted in November 1997 a proposal for a Council Regulation aimed at extending to third-country nationals the provisions of Council Regulation 1408/71 on the application of social security schemes to employed people and their families moving in the European Union. The vast majority of the 13 million third-country (ie, non-EU) nationals currently legally resident and working in the EU have so far been excluded from the coordination mechanisms introduced by Regulation 1408/71.

In October and November 1997, based on proposals by Martin Bangemann, the commissioner responsible for industry, the European Commission adopted communications to the Council of Ministers, the European Parliament and Economic and Social Committee and the Committee of the Regions, aimed at improving the competitiveness of two sectors of European industry - textiles/clothing and construction.

The European Parliament Committee on Employment and Social Affairs adopted a report in October 1997 on the framework agreement on part-time work [1] concluded by the European-level social partners on 6 June 1997 (EU9706131F [2]). The agreement is currently being given legal force via a draft Council Directive (EU9707139N [3]) The Committee's report expresses the European Parliament's support for enshrining the principle of non-discrimination against part-time workers in legislation, but criticises the fact that the agreement is limited to part-time work and does not cover other forms of "atypical" employment. The agreement also excludes social security matters which, it argues, need to be covered by legislation. In this respect the agreement falls short of the standards enshrined in International Labour Organisation (ILO) conventions. The report argues that, without such a basis, the agreement allows exceptions to the principle of non-discrimination on the basis of "technical" or "objective" reasons, such as part-time workers who work only on a casual basis, or who do not qualify because of certain thresholds based on length of service, working time and salary conditions. [1] http://europa.eu.int/comm/employment_social/soc-dial/social/parttime_en.htm [2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/social-partners-reach-framework-agreement-on-part-time-work [3] www.eurofound.europa.eu/ef/observatories/eurwork/articles/commission-adopts-draft-directive-on-part-time-work

On 5 November 1997, the European Commission decided to launch the second phase of consultations with the European social partners on the possible content of European Union legislation in the field of information and consultation of employees at the national level. The first phase of consultations, which aimed to establish the social partners' opinion on the advisability of legislation in this field was launched upon an initiative by Padraig Flynn, the commissioner for employment, industrial relations and social affairs in June 1997 in the wake of the Renault Vilvoorde crisis (EU9706132F [1]). The social partner organisations responded to this first document by October (EU9710157N [2]): while there was agreement on the importance of the information and consultation of workers as part of company management, there was a significant divergence of opinion on the desirability of Community legislation in this field. While the trade union side expressed itself in favour of EU-level regulation, the employer side firmly rejected such an initiative, arguing in particular that such a move would be in contravention of the principle of subsidiarity. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/working-conditions-undefined/european-social-partners-discuss-the-social-impact-of-restructuring [2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/european-social-partners-do-not-agree-on-eu-regulation-of-national-information-and-consultation

According to statistics released by the Statistical Office of the European Communities (Eurostat) in late September 1997, the average level of unemployment across the EU fell during both June and July 1997. Seasonally adjusted unemployment rates were down to 10.7% in June and 10.6% (some 18 million people) in July after having remained static at 10.8% for the previous five months. Unemployment stood at 5.0% in the USA and 3.4% in Japan in June 1997.

On 4 June 1997, the European Commission opened first-stage consultations with the European-level social partner organisations on possible Community action on "Information and consultation of workers within the national framework", under the terms of the Maastricht social policy Agreement (EU9706132F [1]). This instrument, which has been under consideration for some years, was promised by Commissioner Padraig Flynn in the aftermath of the Renault Vilvoorde affair (EU9704118F [2]). [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/working-conditions-undefined/european-social-partners-discuss-the-social-impact-of-restructuring [2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/working-conditions-undefined/eu-continues-to-feel-impact-of-renault-crisis