Parliament adopts resolution on social consequences of industrial restructuring

In February 2001, the European Parliament adopted a resolution on the social consequences of industrial restructuring. The resolution makes a number of requests to various bodies, including a call for a revision of the European Works Councils Directive and adoption of the draft Directive on national-level information and consultation of employees.

The European Parliament (EP) adopted a resolution on industrial restructuring and mergers at its plenary session on 15 February 2001, following a debate and questions to members of the European Commission, which included a statement by the Employment and Social Policy Commissioner, Anna Diamantopoulou, on 14 February.

The EP's resolution requests that:

• the European Commission verify whether companies are adhering to the EU Directives on European Works Councils (EWC s) (94/45/EC) and collective redundancies (consolidated in 98/59/EC);

• the Commission and Member States adopt a more "proactive approach" to industrial restructuring and its social consequences, as there is a need for continuous social dialogue prior to restructuring;

• a thorough investigation be carried out in the event of non-compliance with European legislation governing collective redundancies, transfers of undertakings and informing and consulting employees;

• the Commission and the European social partners come to an agreement on the drawing up of annual "managing change reports" by large European companies (as proposed in the 1998 Managing change report of the Gyllenhammar high-level group on industrial change);

• Community legislation should allow for information and consultation of employees to be carried out at the planning stage of any proposed restructuring. The EP makes reference to a provision contained in its Opinion on the proposed Directive establishing a general framework for informing and consulting employees in the European Community (EU9812135F) that if a decision will have considerable adverse consequences for employees, any final decision may be postponed in order to allow consultations to avoid or mitigate these consequences;

• Article 127 of the Treaty establishing the European Community (TEC), which contains the objective of a high level of employment, be taken into consideration in all Community policies and activities. The EP welcomes a Commission statement to the effect that more account will be taken of this when approving mergers between companies; and

• companies receiving European and national long-term aid in order to help safeguard jobs should be required to repay this if they do not fulfill these employment-related criteria.

Specifically, as the current climate of industrial change is seen as necessitating a review and updating of existing legislation, the EP demands that:

• the Commission issue a proposal for revising the EWCs Directive before the end of 2001 (EU0005248F);

• the Commission proceed immediate with its review of the collective redundancies Directive;

• the Council adopt without further delay its common position on the proposed Directive regulating information and consultation of employees at national level (EU0012285F); and

• the Commission carry out of review of the Directive on the transfer of undertakings (77/187/EEC, revised by98/50/EC).

This resolution will now be forwarded to the European Commission, the Council of Ministers, Member State governments and parliaments and the social partners. It is the latest of a number of EP resolutions calling for a reform of the legislative framework relating to the industrial relations and employment consequences of restructuring (EU0003233N).