No. 46 – December
2006/September 2007
Supplement to the «Cahier de la Fondation» No. 67/68
SYMPOSIUM OF 23rd and 24th
APRIL 2007
EUROPEAN SOCIAL
DIALOGUE AND TRANSNATIONAL RESTRUCTURING:
ARE SOCIAL
PARTNERS PLAYERS FOR CHANGE?
Organised with the support of the European Commission, the Symposium reflected the main preoccupations of Europe et Société, that is, how can information and consultation of the European social and economic partners successfully implicate them in accompanying the inevitable changes in company production methods and organisation. How is this to be achieved while simultaneously favouring a high-quality social approach and ensuring a dynamic activity level, thereby protecting employment?
The approach targeted several «aims»:
- stimulating and facilitating debate among all the European players;
- comparing and discussing the solutions proposed, be they successful or not…
- beyond the various approaches, seeking out workable compromises and significant convergence.
Even though the term «social partners» may be rather vague and the notion of a European Social Model is open to debate, particularly when presented in the singular only, – the reference to both the Lisbon strategy and to the construction of European cohesion remains unavoidable.
For the partners to be able to develop their ability not just to affect change, but also to effect it, the main idea that arose from Symposium debate and exchanges was that it is vital to encourage the ability to understand and anticipate, as much collectively as individually. Obviously, this has to be achieved through the means and instruments available.
INVENTORY
The first half‑day of the Symposium was devoted to presenting restructuring in Europe as it now stands. Even though the phenomenon is far from new (see coal mining and the steel industry) and largely unavoidable (see Austrian economist Schumpeter’s «creative destruction») particularly since the Vilvoorde events, it has acquired a particular poignancy and relevance at the European level. More than in the past, it is now closely linked to the acceleration and extension of globalisation. Most often it is not confined to a strictly national level, moreover, it has only recently become the subject of systematic in‑depth investigation.
From the general economic point of view, three main factors appear to be at work in the restructuring processes:
- impact of technological and organisational changes;
- cause and effect phenomenon intensifying competition;
- development of financial capitalism, and, possibly, a knowledge capitalism.
The factors have led to a new international division of labour, wherein companies strive for increasing efficiency – seeking to combine market adaptation, excellence and maximum reactivity.
In practice, depending on the sectors, territories and companies involved, the restructuring process may be commanded by a wide diversity of circumstances and motives:
- enforced curbing of capacity entailed by technical evolution, as in the case of the steel industry (technological logic);
- modification of the scope or range of activities leading to transfer or outsourcing (recentring and/or value logic);
- delocalisation or relocalisation for cost or market reasons;
- mergers/acquisitions/reorganisations (sector or company consolidation or rationalisation logic).
The way the partners interpret reality as it is changing, with a view to anticipating rifts, must imperatively cross the approach in sectoral specialisation terms (Ricardo) and the more recent one of specialisation according to tasks (the company is no longer able to control the value chain).
In 2005, for the twenty-seven countries, surveys indicated that the loss of jobs directly ensuing from these changes was limited to 500,000. Job loss mainly affected the automotive, chemical, steel, textile and electrical sectors, especially among the new member States.
Even in the case of «positive» dynamics (in terms of a firm’s activity or financial result), there is still the thorny issue of how to spread the cost of transformation fairly among the players involved. The players fall into two categories: internal (the firm and its salaried personnel) and external (territorial communities, subcontractors, etc.).
In the absence of clear, consensual rules covering the issue, there are two ways of progressing:
- prevention, (see competitiveness hubs), aiming to lessen vulnerability to international competition. This involves the ability to anticipate that in turn rests on information being shared with company partners and also with the territory. It raises the difficult, but unavoidable, issue of government assistance; should this target companies (and should large or small ones get priority?) or individuals so that they may prepare for change and anticipate it, or local communities through development planning mechanisms, or through other means? Resources being limited, difficult choices must be made and, where possible, they must be based on the assessment of past undertakings;
- organisation and negotiation, favouring a multiform adaptation process whereby key orientations are defined through negotiated transitions.
On this last point, there are many possible levels and approaches, ranging from interprofessional to sectoral, from the large company to the European level: the Trace programme (Trade unions Anticipating Change in Europe) has put forward six transverse points to develop (place of SMEs, distinguishing between organised traditional sectors and emerging sectors, public sector activities, role of the territories, impact of enlargement, articulation between community initiatives and those being deployed at the global level).
The studies and case histories discussed during the Symposium made it clear that the earlier and the higher upstream the task of informing is carried out the more pro‑active the unions become. That is, they apply the consultation process before the firm takes its decision (even though there may be the «risk» of a «counter‑proposal»), if the consultation process is carried out correctly there is a far better chance of the personnel overcoming the shock of the «rift», and transitions stand to be successful.
EXPERIENCES AND
RESPONSES OF THE PLAYERS
Some ten or twelve witness accounts made by direct players provided an impressive (and impressionist) view of the diversity of the processes involved and enabled us to draw some instructive conclusions.
- firstly, there is a wide variety of cases and depending on whether the sector (or company) is wealthy or short of funds, united or divided, on the defensive or in possession of a clear perspective, whether it practises – or not – a confident dialogue and a prospective form of concertation, how restructuring is engaged, sequenced and its outcomes change noticeably. Following a promising start, even design and orientation unity – as is the case for the top European automotive group – was unable to guarantee avoiding assessment error (concerning market-linked activity change) leading to difficulties (relating to employment and results) that brought into question the collective agreement… Nevertheless, the quality of the social dialogue makes it possible to negotiate and share the sacrifices to be made.
In the defence (competition between States) or shipbuilding (sectoral committee) sectors, transformations are rapid and are accompanied by (public…) anticipation and training efforts.
With EDF, as for the European electrical sector, or with Fortis Banque, a combination of favourable factors (financial comfort, open social dialogue, good CSR practice, anticipated training) greatly facilitated considerable changes such as that for Smart sourcing at Fortis, for instance.
A contrario, within a world-level prosperous paper pulp group, the absence of anticipation and biased social dialogue worsened the impact of a change that was probably unavoidable, despite the efforts of the unions to propose profitable alternative activities.
- Coherence and concordance of the conclusions: whether at the level of the company or the sector, the quality of the social dialogue, the determination and ability to anticipate, the ability to use all the legal and institutional levers (such as the European Works Council, or the Consultative Commission on Industrial Change), the existence of CSR agreements, these are all factors in favour of a more acceptable sequencing of the restructuring process.
The MIRE programme, supported by the European Social Fund, develops and explains such conclusions, implicating all the relevant players and proposes negotiation rules and locations, while also stressing the importance of the themes and of territorial coordination.
NEGOTIATIONS AT
THE EUROPEAN LEVEL?
During the last afternoon of the Symposium, union, employer and community (Commission) representatives developed their ideas on the possibility of making progress in relation to the restructuring processes. The diversity of points of view made for a stimulating discussion.
Both the MEDEF (Movement of French Enterprises) and Business‑Europe/UNICE proposed a relatively optimistic vision, based on the existence of instruments, rules, capacity for dialogue and intervention, – though, probably, the use made of all these is insufficient. The general framework of the Lisbon process was put forward, while expressing the hope that it would improve from 2010 onwards.
The ETUC representative was more reserved in tone, he was of the opinion that restructuring without growth, or triggered by financial motivation within a transnational context frequently leads to serious reconversion and/or employment problems. He specified, moreover, that in such cases workers and public authorities are both equally powerless to react. The European Globalisation Fund is modest and is only at the «running in» stage, SMEs are all too often abandoned to their fate and the incentives for innovation leading to the creation of jobs are insufficient. In short, efficient tools – at the transnational or European level – have yet to be forged both in order to manage restructuring through prepared mobility and to protect transitions through shared anticipation.
The Commission representative began his comments with a reminder: ninety years ago, the ILO was set up following a period of intense commercial activity. It is now a reference and an institution that is important at the world level. Europe wishes to prepare and implement a policy of industrial change that is supported by social dialogue. In this context, in 2005, the Commission drafted the paper entitled «Anticipating and accompanying restructuring in order to develop employment».
In the allocation of roles and efforts to be made, dialogue and negotiation between the partners form a vital requirement. Without them, it is not possible to dispose of the information in timely manner and consequently anticipating the adaptation needed is compromised. Efficiency has its roots in the field, in the company and rests on the territorial dimension before reaching the sectoral or European level. European committees must play a more important role in this respect.
The European dimension enables both forming a clear diagnosis of the changes underway and building common policies – for instance, international commercial agreements or measures to control climate change. It also imposes the coherence and coordination of all the available instruments and policies right through to legal intervention, as a last resort.
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In conclusion, after warmly thanking the speakers and participants, Jacques MOREAU, Europe et Société General Delegate, made the following brief comment:
The current period is one of great and far-reaching change. In the face of this change, as shown in particular in the document drafted by Elodie BETHOUX, the positions and reactions of the players also change – sometimes in the heat of the moment – without conclusive or lasting results (see EADS).
Within the framework of organised social dialogue, it is essential to have reliable information to hand in order to be able to anticipate problems and ensure a degree of control over the future.
It is urgent to organise the means to ensure the said anticipation. The question is whether the existing instruments are used to the full and whether they are sufficiently effective. Nevertheless, cultural changes are also making themselves felt, and occasionally, they enable reaching a shared diagnosis and proposals that are acceptable to one and all.
Furthermore, on its agenda, the Commission plans to encourage the various partners to pool their thoughts in order to set up an optional instrument for transnational collective bargaining. This will be subject of the next Europe et Société Symposium.
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In all, the Symposium has clearly shown that the restructuring that has occurred in Europe over the last few years, poses a number of problems. These problems relate to the definition and treatment of restructuring as well as to the assessment of the impact it causes. Whatever the reasons behind the restructuring (in varying proportions): technological change, economic considerations (costs and markets) or structural reforms (recentring, concentration), its impact on employment is frequently negative and entails the implementation of adaptation and mobility programmes.
The players react to restructuring in a wide diversity of ways; a lot depends on the level of information they have available, on the quality of the dialogue they set up and on their determination and ability to arrive at constructive solutions that are appropriate to the changes introduced.
In this respect, the existing Community instruments fall short and it is necessary to develop a more ambitious strategy at the European Union level.
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PROGRAMME AND LIST OF SPEAKERS
The Symposium lasted two
days. The papers gave rise to debate between the speakers and participants. The
papers and the contributions made by the participants will be presented in the
“Cahier de la Fondation” to be published at the end of September 2007.
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The Symposium was opened by: Jacques MOREAU, Europe et Société
General Delegate
The reality of restructuring in Europe
Restructuring: what is it all about?
Barbara
GERSTENBERGER, Coordinator - European Monitoring Centre on Change
Roberto PEDERSINI, Lecturer - Fondazione Regionale
Pietro Seveso
The various economic aspects involved in restructuring
Jean-Louis LEVET, Director - IRES Institut de
Recherches Économiques et
Sociales/Economic & Social Resarch Institute
Elie COHEN, Research Director - CNRS Centre national de la
recherche scientifique/French National Scientific Research Centre/member - CAE
Conseil d’analyse économique/Economic Analysis Council
El Mouhoub MOUHOUD, Lecturer - Paris Dauphine University
Community debate on restructuring
François VANDAMME, Conseiller général/Chief Advisor - SPF Emploi, Travail et Concertation sociale: International Affairs Division (Gouvernement belge/Belgian Government)
Management
of restructuring: devices, tools, player positioning
Élodie BÉTHOUX, Sociologist
- IDHE, Paris X Nanterre University/ENS Cachan
Company restructuring and
professional sectors: players’ responses
- How was the decision announced and what comments
were made?
- Role of the European Works Council and of Sectoral
Dialogue Committees
- How did the trade unions intervene?
- What results have been achieved?
Jean-Pierre
AUBERT, Délégue interministériel aux restructurations de la
Défense/Interministerial Delegate for restructuring of Defence
François BILLET,
Vice-Président du Comité de dialogue social sectoriel « Construction
et réparation navales »/Vice-Chairman of the Sectoral Social Dialogue
Committee on Shipbuilding and repair
Bruno DEMAÎTRE, Works
Council Secretary - Fortis Banque Belgium
Édouard MARTIN, Member of the European Works
Council - Arcelor
Bernd WEHLAUER, Vice-Président du
Conseil central d’entreprise/Vice-Chairman of the Central Works Council - Volkswagen
Daniel MOREL, Works Council Secretary, Union
Spokesperson - Stora Enso Corbehem
Frédéric FRITSCH, Member
of the European Works Council - EDF
Tony ALLAN, EDF Energy U.K.
Restructuring and social dialogue
Examination of various cases of restructuring in companies and
professional sectors (cont.)
Kate McPHILLIPS, Research Manager
- Ecotec Research & Consulting Ltd
The current role of European social dialogue in transnational restructuring
Renate HORNUNG-DRAUS, Director of
European and International Affairs at the Confederation of German Employers -
BDA Bundesvereinigung der Deutschen Arbeitgeberverbände
Jean-François RENUCCI,
Deputy Secretary General – EMCEF: European Mine, Chemical & Energy
Workers’ Federation
An overview of different approaches to restructuring in five European countries
Frédéric BRUGGEMAN, Mire
Programme Coordinator - Cabinet Syndex
Territory, a laboratory for innovation as concerns multi-player driven
restructuring
Rachel BEAUJOLIN-BELLET,
Lecturer - Reims Management School
Role
of social partners, Member States and the
European Union?
André-Luc
MOLINIER, Président de la commission Europe/Chairman of the Committee on Europe
– MEDEF, Movement of French Enterprises
Joost VAN IERSEL, Member of the
ESC, European Economic and Social Committee – CCIC, Consultative Commission on
Industrial Change
Walter CERFEDA, Confederal
Secretary, ETUC, European Trade Union Confederation
Renate HORNUNG-DRAUS,
BusinessEurope
Fernando
VASQUEZ, Deputy Head of
Unit, Directorate General for Employment, Social Affairs and Equal
Opportunities – European Commission
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ISSN 1021-0008
FORTHCOMING
ACTIVITIES
SYMPOSIUM
Tuesday 5th and Wednesday 6th February 2008 (provisional date)
«Transnational negotiations in Europe: how do things stand?
Problems encountered? Future perspectives?»
LUNCHEON DEBATE
Final quarter of 2007
With Mrs Odile Quintin, Director General, Directorate General for Education and Culture – European Commission, on European Union policy relating to life-long learning.
TO BE PUBLISHED AT THE END OF SEPTEMBER 2007
Cahier de la Fondation No. 67/68 presenting the proceedings of the Symposium of 23rd and 24th April 2007 on:
«European Social Dialogue and Transnational Restructuring:
Are social partners players for change?»
(Order form enclosed)
WHO ARE WE?
"Europe et Société", is an association that was set
up in November 1985. Through various activities and events, it aims to offer
the managers of companies, professional organisations and trade unions,
retirement institutions, etc. a forum for meetings, reflection and proposals
centred on the efforts made by Europeans to rise to the challenges presented by
current events and globalisation of the economy.
Alongside European institutions,
"Europe et Société" through its independent and autonomous approach
in relation to Community and State institutions strives to establish
relationships between the world of companies, European society and its
institutions. It is this desire for rapprochement and communication that guides
"Europe et Société" in the choice of its themes, debates, reflections
and proposals.
In a period where globalisation of
the economy has major consequences on the stability and future form of European
society, it is necessary to exploit every possibility to involve all the
relevant players in the search for adequate responses and solutions. Among the
players, the social and economic ones hold a major role, it is they who are
building the Europe the world awaits.
Despite
its difficulties,
Europe has considerable advantages but Europeans must be aware of these
strengths and use them to good effect. This is the mission of "Europe et
Société", its efforts strive to ally the competitiveness of European
industry and its economy and uphold and strengthen social cohesion. Hand in
hand with this goes the need to increase the freedom and reinforce both the
responsibility and solidarity of the various players.
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