Bolkestein defends staff rights

Date: 20/11/03

FRITS Bolkestein, the commissioner for the internal market, has defended a new directive aimed at restricting red tape in cross-border mergers.

Digby Jones, head of the UK's Confederation of British Industry, dubbed the proposal a "classic example of how the European Commission fails to understand how business operates in the 21st century".

He said a clause in the draft law could lead to merged firms being forced to adopt tough worker consultation regimes, such as the German or Dutch systems, seen by critics as a drain on competitiveness.

Bolkestein insisted that the changes, which apply in only limited circumstances, should not frighten firms. "Some of the world's most successful companies have highly developed models for worker participation," he added.