Commission issues Communication on social dialogue

A new Communication from the European Commission, issued in June 2002, sets out ways in which the EU-level social dialogue process can be strengthened and enhanced over the coming years. One of the main innovations is the proposed creation of a new tripartite social summit, which would replace the Standing Committee on Employment.

On 26 June 2002, the European Commission issued a new Communication (COM(2002)341 final) on the European Union social dialogue process, entitled The European social dialogue, a force for innovation and change, which reviews progress to date and sets out ways in which to strengthen the dialogue to meet future challenges. The Commission praises the achievements of the social dialogue so far, particularly in the context of contributions to the European employment strategy and the economic and social modernisation process set out at the March 2000 Lisbon European Council summit (EU0004241F).

However, the Commission maintains that the process now needs to be enhanced and strengthened, particularly in areas such as employment policy, economic policy and social protection, bearing in mind also the prospect of EU enlargement. The Commission therefore sets out a range of areas in which it proposes to enhance the process, each containing a series of action points. According to the Communication, its approach to the social dialogue is based on the social partners' joint contribution to the Laeken European Council in December 2001 (EU0112262F) and the reflections of the High-Level Group on Industrial Relations, which issued its report in March 2002 (EU0204206F).

Improving consultation

The EU-level social partners have so far been consulted a total of 12 times on a range of issues, using the two-stage process provided for under Article 138 of the Treaty establishing the European Community (TEC). This process has so far led to the conclusion of three 'cross-sector' (ie central intersectoral) agreements which have formed the basis of Directives - on parental leave, part-time work (EU9706131F) and fixed-term contracts (EU9901147F) - and one cross-sector agreement - on telework (EU0207204F) - which will be implemented in Member States by the members of the signatory parties.

In order to improve the process further, the Commission states that it will:

• consult the social partners on all main initiatives which have social repercussions;

• set up an interdepartmental working party to draw up an inventory of consultation methods and structures in place, and bring together all Commission departments concerned by activities connected with the social dialogue; and

• draft an internal code of conduct on consultation with the social partners.

Representativeness

In order to strengthen the representativeness of the social partners, the Commission proposes the following actions:

• launching a new study on the representativeness of social partner organisations- the most recent such study was carried out in 1998. This new study will cover a wider range of sectors. The Commission will also prepare studies on the cross-sectoral and sectoral organisations which exist in the candidate countries for EU membership;

• presenting an amended list of the organisations, both cross-industry and sectoral, which are consulted under Article 138 of the TEC (which requires the Commission, before submitting proposals in the social policy field, to consult management and labour). At present, a total of 58 social partner organisations are consulted under this process - a full list is annexed to the Commission's Communication. The Commission will adjust the list further if new sectoral social dialogue committees are set up, or following the results of its new study on representativeness; and

• it calls on the social partners to reinforce their cooperation, particularly within sectors, and to continue to improve their decision-making machinery, particularly in the areas of establishing negotiating mandates and concluding agreements.

Raising the profile of the social dialogue

In order to raise the profile of the social dialogue process, the Commission proposes a number of actions, including:

• setting up an internet site containing information on the social dialogue process;

• supporting the organisation of round tables in Member States on the social dialogue process;

• convening regular European social dialogue conferences; and

• continuing to publish regular reports on industrial relations in Europe.

Strengthening the role of the social partners

The Commission would like the links between the different levels of social dialogue to be strengthened. It also notes that enlargement will increase the diversity of social dialogue. In the light of this, the Commission requests the European Foundation for the Improvement of Living and Working Conditions to organise joint training sessions for representatives of the authorities and the social partners in order to enable them to carry out their social dialogue duties to best effect.

At national level, the Commission notes that the social partners have a role in implementing Directives, under Article 137 of the TEC (which allows Member States to entrust management and labour, at their joint request, with the implementation of social policy Directives). Further, many Directives allow the social partners at national level to: adapt provisions in order to take into account practice at national level; respond, through negotiation, to the goals set by Directives; or give views on the implementation of Directives in their countries. The Commission states that it will consult the social partners when preparing reports on the Directives concerned.

With regard to local-level dialogue - at the level of the sector, region or city in the Member States - the Commission will support efforts to: apply experience gained in the context of Community programmes and initiatives; support the development of information sources, such as internet sites; and support all dialogue at local level.

With regard to company-level dialogue, the Commission notes that European integration encourages companies to develop on a transnational scale and that therefore the development of a European or transnational dialogue within firms has become 'a fundamental challenge for tomorrow's Europe'- European Works Councils are said to provide a sound foundation for this dialogue. In this area, the Commission published a Communication on corporate social responsibility on 2 July 2002 (EU0207205F).

Social dialogue as a force for economic and social modernisation

Stating that the social dialogue process is a force for change, the Commission calls upon the social partners to adjust their range of social dialogue practices and to improve the implementation and monitoring of their results. It therefore asks the social partners to: assess the contribution of industrial relations to the Lisbon strategy; and help develop 'benchmarking' of the quality of industrial relations in Europe.

For its part, the Commission promises to set up a technical working party of representatives of the social partners and Member States to prepare for the introduction of machinery for review and exchange of information in this area.

Tripartite concertation

Tripartite concertation at EU level was initially introduced by means of various cross-industry advisory committees and was extended during the 1970s by the establishment of the Standing Committee on Employment, examining issues connected with employment and the management of change. The process has been extended during the past five years to cover additional issues connected with the 'macroeconomic dialogue' (EU9906180N), the European employment strategy, social protection and the Lisbon strategy.

The Standing Committee on Employment was reformed by the Commission in 1999 (EU9903160N). However, the reformed Committee has been criticised by the social partners as ineffective, a view the Commission shares. It therefore proposes to create a new 'tripartite social summit for growth and employment' and includes with the Communication a proposal for a Council Decision to this effect.

The summit would bring together the 'troïka' (representatives of the past, present and future Presidencies of the European Council), the President of the Commission and a maximum of 20 representatives of social partners. It would provide for an informal discussion on the social partners' contribution to the Lisbon strategy and meet once a year, just before the annual spring European Council.

Cross-sectoral dialogue

The Commission praises the cross-sectoral central social dialogue process - ie that currently involving the European Trade Union Confederation (ETUC), theUnion of Industrial and Employers' Confederations of Europe (UNICE)/the European Association of Craft, Small and Medium-Sized Enterprises (UEAPME), the European Centre of Enterprises with Public Participation and of Enterprises of General Economic Interest (CEEP) and the Council of European Professional and Managerial Staff (EUROCADRES)/European Confederation of Executives and Managerial Staff (CEC) liaison committee - as having played a 'pioneering role' at European level since 1985. It then looks at how to strengthen the social dialogue process and as a general point, it urges the social partners to conclude more agreements and to draw up work programmes at both cross-industry and sectoral levels.

Sectoral dialogue

A total of 27 sectoral social dialogue committees have now been established (EU0201236F). The Commission believes that this shows the potential of the sectoral dialogue and states that it wishes to continue its support for this 'flourishing' process. It thus states that it will: pursue its policy of setting up new social dialogue committees where it receives requests and conditions are met; encourage cooperation between sectors; and give priority to those committees whose work culminates in practical results.

Monitoring and implementation

The Commission wishes to clarify the terms used in connection with the social dialogue process. It calls on the social partners to reserve the term 'agreement' specifically for texts implemented in accordance with the procedures laid down in Article 139(2) of the TEC.

The Communication then goes on to consider how to implement social partner texts, believing that the 'open method of coordination' (ie the process of setting common objectives and agreed indicators, regular reporting and the identification of best practice, as used in the implementation of the employment strategy) is 'an extremely promising way forward'. The Commission therefore calls on the social partners to adapt the open method of coordination to their activities in all appropriate areas, prepare monitoring reports on the implementation of agreed frameworks for action in Member States, and introduce appropriate 'peer review' machinery.

In the case of social partner texts implemented by means of Council decisions (eg the parental leave, part-time and fixed-term work agreements, which were implemented by Council Directives), the Commission states that it will systematically consult those social partners which have signed such agreements over their implementation, and that Member States should involve those social partners in national transposition.

In the case of texts implemented in accordance with the social partners' and Member States' own procedures and practices (eg the recent telework agreement), the Commission asks the social partners to strengthen the procedures for on-the-spot monitoring. It also requests them to prepare regular reports on implementation.

Enlargement

The Commission highlights the large 'social dialogue gap' in many candidate countries, even though social dialogue forms an integral part of the acquis communautaire (the body of EU law and rules that candidate countries must adopt) in the social field. It notes that in most candidate countries, bipartite social dialogue is in its infancy and almost non-existent at sectoral level (TN0207102F).

The Communication states that the social dialogue must be strengthened in the run-up to accession, while nevertheless acknowledging that links have been developed over the past few years between the EU social partners and their counterparts in the candidate countries, by means of a range of seminars and joint conferences (EU9904166F). One key issue for the social partners has been a lack of funding to develop these links. The Commission states that it will continue to support these initiatives and make full use of the financial instruments available to help the social partners in the candidate countries.

The Commission also notes that the membership of the various EU social dialogue committees will need to be adjusted to take account of enlargement.

Commentary

The publication of this Communication gives a clear signal from the Commission that it takes the social dialogue process extremely seriously and wants to widen and enhance the dialogue's role in shaping European social policy in the years to come. The Commission has pledged to take steps to ensure that the process is enhanced at all levels, from the cross-industry level down to local and company level. In particular, the establishment of a new tripartite social summit, which would meet annually before the annual spring economic and social European Council summit, would be an important step in ensuring that the social partners are fully and centrally involved in all social policy discussions. The social partners themselves must now ensure that they take full advantage of these new opportunities. (Andrea Broughton, IRS)