Deadlock over factory code

Date: 15/05/1997

By Simon Coss

EARLY signals suggest trade unions and employers will make little headway in their attempts to agree a code of conduct to stop companies from announcing factory closures without first adequately consulting the workforce.

In response to the furore (pictured above) over Renault's shock decision to close its plant in Vilvoorde, Belgium, earlier this year, the two sides agreed last week to set up a working group to look into possible solutions. But close observers are pessimistic about the chances of success, saying it is difficult to see where any common ground can be found.

The employers' organisation UNICE argues that existing rules governing factory closures are adequate and insists that one 'rotten apple' like Renault should not mean extra rules for everyone. But the European Trade Union Confederation (ETUC) claims Vilvoorde clearly demonstrates the need for tougher legislation. In the long run, it is possible that Social Affairs Commissioner Pádraig Flynn may seek to impose stricter rules on business.