Energy unions express concern over liberalisation of markets

The European Mine, Chemical and Energy Workers' Federation (EMCEF) is organising an "action day" in Brussels on 11 May 1999 to coincide with a meeting of the EU Council of Energy Ministers. The initiative seeks to highlight the perceived negative impact of the liberalisation of gas and electricity markets on employment.

The European Mine, Chemical and Energy Workers' Federation (EMCEF) has expressed its concern over the future of employment in the European energy sector, and has argued that EU Directives that provide for the gradual liberalisation of the gas and electricity markets are neglecting the issue of employment. EMCEF is organising an action day on 11 May to coincide with the meeting of the EU Council of Energy Ministers in Brussels. EMCEF, which is a European Industry Federation affiliated to the European Trade Union Confederation (ETUC), currently represents 3 million workers in 91 trade unions from 27 countries.

Europe's energy sector employs several million workers and, according to EMCEF, between 150,000 and 200,000 jobs were lost from 1990 to 1995. Although EMCEF concedes that the relevant EU Directives providing for an internal energy market may improve the single market, it believes that the competition that they will give rise to could lead many operators to cut costs at the expense of both employment and health and safety. EMCEF cites the UK as a "revealing" example of the impact of "marketisation" on employment levels: according to Eurostat, employment has declined by approximately 40% in the UK electricity sector. Concerns are also expressed about training opportunities, as it is feared that training may be undertaken to meet short-term needs instead of representing genuine vocational training. EMCEF is also concerned that the impact of corporate restructuring on the subcontracting of personnel and equality at work "have been completely glossed over".

Similar concerns are expressed in relation to the oil and gas industries, particularly in relation to the number of mergers and restructuring exercises, and the consequent creation of "oligopolistic" market structures.

Lastly, EMCEF is cautious about the job-creation potential of the renewable energy sector and states that it is only a supplement to, rather than a replacement for, other energy sources. Moreover, EMCEF is critical of low-skilled jobs created in this sector and the low levels of union density prevalent in the small firms across the industry.

In response to these concerns, EMCEF and the European Federation of Public Service Unions (EPSU) have put forward a blueprint outlining the social aspects that they believe need to be considered in the energy sector in the future, to ensure that the restructuring process is as socially acceptable as possible. This position as it applies to the electricity sector was presented to employers, represented by EURELECTRIC, at a workshop organised by the social partners on 18 January 1999 (EU9902151F). EPSU stated that it was encouraged by the level of support for its position and by the willing cooperation of employers to explore these issues in more depth. The unions and employers in the sector decided to submit an application to the European Commission to set up a sectoral social dialogue committee (EU9902150F) for the power supply industry, which would issue opinions on social issues related to the electricity sector when required by the Commission. Informal cooperation between the social partners in this sector has existed since 1995. Trade unions also urged the Commission to launch the study it had promised a year previously on the impact on jobs of liberalisation in the European electricity industry and the measures envisaged to reduce its negative effects. Service-based competition, as opposed to price-based competition, is seen by the unions as the best way of retaining and creating jobs in this sector.