Local view for "http://purl.org/linkedpolitics/eu/plenary/1999-10-27-Speech-3-142"
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"en.19991027.5.3-142"2
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"Ladies and gentlemen, the Michelin case has once again brought the key issue of the restructuring of industry to the fore. We are living in a time of radical changes to industry and to companies in general – changes which have come about for a number of reasons, the main one being the complex phenomenon of globalisation. The deregulation of the capital markets, the abolition of economic borders, changes in various models as a result of high technology and the information society and global competition are all factors which often precipitate drastic changes and restructuring in industrial production.
Ladies and gentlemen, I feel it is important to touch on a number of measures which have been taken so far at European Union level in connection with the restructuring of firms. I would like to mention very briefly the decision taken just a few days ago to implement the draft on risk capital and high risk capital investments approved by the Commission last week; this will be a very important tool, particularly for small businesses. Measures include promoting cross-border innovation, promoting the mobility of wage-earners by transferring their rights and pensions, special training programmes and, of course, the exceptionally high amount, in the order of EUR 24 billion over the next 7 years, to be channelled to Objective 3 via the Structural Funds, to which all the countries belong. Objective 3, the Structural Funds programmes and, of course the employment strategy can be used to structure national and associated policies at European level on employability, entrepreneurship and the adaptability of firms and workers.
We have before us today a special case which is not a model worth following. This is a special case whereby there have been two announcements made by the same company; one announcing mass redundancies and the other announcing huge profits. Quite clearly, the European Union will and, in fact, must make every effort at every level to support free competition and create a free and healthy competitive area in which European companies can operate. It is also clear that Europe must primarily support what it has been proud of for centuries – the European social model. There must be no victims in the restructuring and modernisation of firms. As I said earlier, restructuring is not a smooth operation but it can be both foreseen and managed, and true, it may indeed cost us provisionally but there must be no victims. I believe that the proposals on a legislative level, and more importantly proposals resulting from the cooperation between the social partners are a good starting point from which to address these pressing issues of our time.
What is certain is that this restructuring can be predicted and effected in many ways. The Michelin profit figures, together with the announcement that it is to shed 7,500 jobs over the next three years, has created considerable disquiet with which I sympathise. This disquiet does not relate solely to this particular company, but to what is happening and what will happen from now on in all small and large businesses in Europe.
It would be quite realistic of me to say that no restructuring can be a smooth operation without its problems. However, restructuring can either be “intelligent”, in other words, it can take account of the social and economic cost, or it can be short-sighted by taking account of the economic cost today and paying the social cost at a much later date. Any company which fails to take account of the social dimension will have to suffer the negative consequences.
Our goal is most certainly “intelligent restructuring” and there are three distinctive factors which many companies already take into account. In the past, we have witnessed cases throughout the European Union which adopted both methods of restructuring. Intelligent restructuring consists primarily of a plan to address the issue of the employability of the persons concerned. Clearly, this is both a right and an obligation of the company itself. Companies should draw up strategic plans which, first and foremost, address the issue of the employability of the persons concerned. Secondly, there is no excuse for failing to give adequate notice to employees, for not giving them detailed information and for not consulting them on alternative forms of restructuring which could be just as effective but at a lower social cost.
The institutional framework to date in the European Union has consisted of two directives: the Directive on collective redundancies and the European Works Council Directive. These two directives constitute a minimal framework of specifications within which a company wishing to restructure can operate.
As regards today’s discussion, there has been no proof to date that the company in question has contravened any of the rules. We have plenty of time ahead of us to monitor its next moves. It is, however, quite clear, and so it appears in today’s case, that with the changes that are taking place around us, the way in which we deal with these changes will also need to be changed. In other words, existing rules may well need to be improved and amended or new rules may be needed. That is why, in November 1998, the European Commission submitted a directive on information and consultation of workers. This directive has, to date, been endorsed by Parliament, and I believe that today’s discussion on Michelin will spur us into further action in support of this directive. However, what is certain is that, at present, legislation alone or this particular piece of legislation cannot address the major problem of the restructuring of industry when European industry can only compete within its own borders. European industry must engage in and be able to successfully withstand global competition.
In previous cases, such as that of Renault, the Commission had entrusted experts to approach the issue of restructuring from the job losses perspective. The Gillenhammer report, which is well-known to Parliament, contains relevant proposals which we could follow. The first is that of the Observatory. In January, we will have the final proposal for the Observatory, which I would like to discuss with Parliament in order to decide whether or not there should be an Observatory for small and medium-sized businesses to keep them informed of imminent changes. It will be connected at national level to the local Observatories so that firms are better equipped to deal with changing times.
My next point concerns social dialogue. Social partners bear the responsibility for social dialogue and they could initiate special action plans within the context of the social responsibility incumbent upon all of us. The first action is to address the employability of workers. This is not only a matter of national policy; it also concerns the workers and the company itself. Companies are responsible for maintaining the employability of their workers and workers are responsible for participating in continuing training and for updating and developing their abilities and skills. Negotiations between companies and workers on lifelong learning mechanisms is one of the most serious issues of social dialogue. At the beginning of November, I shall be having my first official meeting with the European social partners and one of the key issues under discussion will be precisely this.
Finally, and again I am borrowing ideas and proposals from the Gillenhammer report, I intend to send a letter to every company in Europe with over 1,000 employees, asking them to draft a voluntary report entitled “managing change”; this kind of benchmarking between these large companies will help us to make provision for restructuring without creating acute or major social problems."@en1
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