Local view for "http://purl.org/linkedpolitics/eu/plenary/2006-11-29-Speech-3-126"

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"Mr President, Commissioner, relocations normally involve moving to countries where production costs are lower and employment laws are more flexible. In this case the opposite has happened: production is relocating to a country where production costs are higher and employment law is stricter. Everything suggests that this decision was not based on market rules, but most probably on power relations between the company and the trade unions. We seem to be facing a new kind of factor that may influence future relocations, which I would term the relocation of trade union power. This kind of relocation is always directed towards the centre, in the sense that it favours the strongest. If this practice spreads, we shall be moving in a direction that clearly runs counter to the essential values of the European project, because the rules of the market are flouted, productivity is not stimulated, and the fundamental principles of solidarity and of regional and social cohesion are violated. In view of such a practice, I fear for the future of the Volkswagen plant in Portugal. If something similar happens there, it will force us to think seriously about how to prevent a mere interest group from imposing itself on the normal operation of market rules. That is our responsibility."@en1

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