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Restructuring in the workplace is becoming more commonplace across Europe due to economic and technological changes. The European Trade Union Confederation has called on the European Commission to develop an EU-level instrument to manage restructuring. The Commission has indicated that this issue will be addressed in a new industrial policy communication later in 2010 and that it may invite EU-level social partners to negotiate a European framework instrument in this field.
Adapting to and managing change in the workplace has become a permanent fixture in the life of workers across Europe and a strategic, proactive approach should be developed to deal effectively with this ongoing challenge, said John Monks, General Secretary of the European Trade Union Confederation (ETUC).
In a letter (280Kb PDF) to European Commission President José Manuel Barosso, sent on 25 May 2010, Mr Monks says ‘collective bargaining and a quality social dialogue are important factors for avoiding or limiting what are often disastrous social consequences’. He states:
To be able to deal successfully with these challenges and the rapid changes that are affecting society in general and the workplace in particular, a strategic, proactive approach must be developed to cope with the restructuring operations. The anticipation, management, and support of restructuring processes require the active participation of all the stakeholders. (…)
Furthermore, workers and their representatives must be actively involved in the daily life of their company so that they can influence the direction of decisions to be taken, and that information and consultation procedures do not pertain exclusively to restructuring but to all areas of activity in the company, its strategic decisions and choices, and the anticipation of their impact on employment.
Mr Monks states that the ETUC and its European federations believe the EU must take the initiative to develop an instrument to manage transition and anticipation.
On 26 July 2010, Mr Barroso sent a reply (102Kb PDF) to the ETUC, in which he notes that restructuring is not a new phenomenon, but that its nature has changed; it has taken on new forms and is to be seen across all geographical areas and sectors.
More specifically, he notes that the recent financial crisis has ‘intensified the rhythm of restructuring and the need to address its impact’.
He notes the shift in the policies and approach of EU Member States towards a more anticipatory approach to restructuring, which can serve to pre-empt and thus minimise its impact and help companies to maintain their competitiveness.
He states: ‘It is vital to support the individuals affected by restructuring by improving their ability to adapt and securing their career paths, and also to support the countries and regions concerned, by preserving their economic fabric and labour markets.’
Mr Barroso notes that it is vital to take action to overcome what he sees as Europe’s two weaknesses in the face of a rapidly-changing business environment, characterised as:
Mr Barroso makes reference to work the Commission has already carried out with EU social partners on the issue of restructuring – notably its consultations on this issue, which date from January 2002 (EU0201235F) and March 2005 (EU0504202F). He also mentions the EU social partners’ joint text on common orientations for anticipating and managing change (85Kb PDF) concluded in 2003 (EU0307203F). Nevertheless, he notes that poor dissemination and implementation has led to a lack of awareness on the part of economic and social players.
More specifically, Mr Barroso states:
An EU framework for restructuring would help to avoid national and protectionist reactions to particular restructuring events… The Commission will present a new industrial policy communication later this year. In this context the Commission is reflecting on the possibility of inviting the European social partners to negotiate a European framework instrument in this field.
However, the view from the EU-level employers’ organisation BusinessEurope on this issue is that there is no need for an EU-level instrument to manage restructuring. Speaking at a Commission Restructuring Forum in November 2009, Philippe de Buck, Director General of BusinessEurope, stated that:
The EU can play a valuable role in organising an exchange of good practices … But it is not at European level that measures must be considered as relevant to cope successfully with change. It is at national level. The Commission should not establish a framework for restructuring activities. This would be counterproductive.
Anticipating and managing restructuring is an issue that has recently gained some prominence in EU social policy. The Commission has been looking at this issue for a number of years and has issued two consultations to EU social partners inviting them to examine this issue. However, it is clear the Commission believes social partner actions to date in this area – notably the 2003 joint text and a subsequent series of seminars in EU Member States – do not go far enough, particularly in the context of the intense waves of restructuring that have taken place as a result of the economic crisis.
The Commission clearly thinks this is an important issue that merits the creation of an EU framework. This framework, it believes, would limit the negative impacts of restructuring on employees, companies and the wider environment, by guiding those responsible for the restructuring process. Whether the EU social partners will be able to agree on a common approach to this issue remains to be seen, given the differing views of employee and employer organisations on the need for an EU-level instrument.
Andrea Broughton, Institute for Employment Studies (IES)