Parliament adopts resolution on steel sector crisis

In February 2003, the European Parliament adopted a resolution in which it calls on the European Commission and EU Member States to take action to alleviate the current crisis in the steel sector, exacerbated by the steel maker Arcelor’s recent plans to restructure and cut its workforce.

At its plenary session on 13 February 2003, the European Parliament (EP) adopted a resolution on the current crisis in the steel sector. The EP draws attention to the announcement made in January 2003 by the steel group Arcelor that it intended to close hot-rolling lines in all its continental sites, leading to the loss of thousands of jobs in Europe and significant protests on the part of trade unions and employee representatives (BE0302301N). It also notes that Arcelor management is offering to purchase four sites in southern Poland and that the Polish government is, as a result, planning significant financial intervention. Finally, the EP notes the decision of the USA to impose extraordinary tariffs on steel imports, including from the EU, which is in breach of the World Trade Organisation agreement and is causing difficulties for EU steel producers.

The EP resolution:

• asks Arcelor to assume social responsibility and treat all its continental sites equally;

• calls on the European Commission to ensure that the Treaties are applied strictly to any request for aid submitted by the Polish government which is related to Arcelor’s operations in Poland. The EP also calls on the Commission to use instruments such as the European Social Fund to help retrain and reorient workers made redundant, to pursue stricter multilateral rules against unfair competition from third countries and to take 'bold measures' to protect EU firms from the negative effects of unilateral US action;

• welcomes the creation of a group of Commissioners, chaired by the enterprise Commissioner, Erkki Liikanen, to plan a response to the difficulties ahead, although it states that the environment Commissioner should be included alongside the Commissioners for trade, competition, enlargement, economic, social and foreign policies;

• calls on both the Commission and Member States to promote innovation and develop new actions in the steel sector, noting that it is necessary to ensure that the 'EU maintains a strong, modern steel industry which is in a position to meet the needs of sustainable development and job creation.' The resolution also calls on the Commission and Member States to adopt a strategy which aims to prevent the negative impact of industrial restructuring measures on jobs, working conditions and regional planning;

• claims that, during recent enterprise restructurings, Community provisions on collective redundancies, transfers of undertakings and European Works Councils have not been adhered to. It therefore calls on the Commission to verify that the relevant Directives have been complied with;

• states the EP's belief that all public subsidies should be subject to agreements regarding employment, local development and investment aimed at modernising production; and

• calls on Member States to 'promote and strengthen dialogue between management and labour, in compliance with national and European legislation on informing and consulting workers, and to adopt effective measures to protect trade union representatives.'

The European Monitoring Centre on Change (EMCC), situated at the European Foundation for the Improvement of Living and Working Conditions (EU0111237N), has produced a dossier on the crisis in the steel sector, providing background and context and links to relevant research and organisations.