Weber, Tina

The Employment and Labour Market Committee (ELC), established by a Council Decision on 20 December 1996, held its inaugural meeting in Brussels on 29 January 1997. The ELC was created in response to a request by the European Council for the setting up of a stable structure to support the work of the Labour and Social Affairs Council in employment-related matters. This area has taken on a new dimension in the context of the" European employment strategy" outlined at the European Council in Essen in December 1994. The ELC is expected to improve the balance between employment, on the one hand, and economic and monetary issues, on the other hand, in the European debate. The new Committee will fulfil a similar role to that of the Economic Policy Committee which provides advice to the Economics and Financial Affairs Council (ECOFIN).

In January 1997, the European Commission adopted a report on the Promotion of Participation by Employed Persons in Profits and Enterprise Results, including equity participation (PEPPER II). The report suggests that profit-sharing schemes lead to higher productivity, whatever method, model specification and data are used. The macroeconomic situation was found to have little effect on government or social partner support for such schemes, but recent debates relating to enhancing productivity and wage flexibility are stimulating discussions on proposals. However, in most member states, trade unions can be expected to oppose the use of financial participation schemes to promote wage flexibility.

At its plenary session of 13-17 January 1997, the European Parliament debated two important measures relating to employee consultation in European companies. After the European Works Councils (EWCs) Directive was passed in 1994, the Commission published a Communication on the future of employee consultation in November 1995, in order to revive a legislative issue which has been under discussion in various forms for over 15 years. Its aim was to explore whether the model used for determining the structure and operation of EWCs could be used in a wider context as a basis for making progress with the long-delayed European Company Statute.