Social partners at odds over factory code

Date: 15/05/1997

By Simon Coss

TALKS between trade unions and employers' organisations aimed at preventing a repeat of carmaker Renault's shock decision to shut a profitable plant in Belgium are making little progress.

The EU's social partners - the European Trade Union Confederation (ETUC), the public employers' body CEEP and the employers' federation UNICE representing the private sector - agreed at a crisis meeting called by the Dutch presidency last month to work towards an agreed code of conduct to govern such cases.

The move followed a public outcry over Renault's failure to observe EU rules on worker consultation when it announced the closure of its factory at Vilvoorde, with the loss of 3,100 jobs, in February.

Although the social partners agreed to set up a working group to look into the issue last week, insiders say it is difficult to see where progress can be made.

UNICE maintains that existing Union legislation, notably the 1993 Works Council Directive and laws on collective redundancies, are adequate and simply need to be properly enforced.

They point to a ruling by France's court of appeal last week that Renault had failed to comply with the existing legislation and must call a meeting of its European works council before it can close the Vilvoorde plant.

But the ETUC is also claiming the French ruling as a victory. “This confirms what we have said all along. It shows once again the value of European works councils,” said spokesman Wim Bergens.

The social partners will meet again in a special high-level session on 6 June to try to agree a common position on the issue. Social Affairs Commissioner Pádraig Flynn will then report back to EU social affairs ministers when they meet six days later.

However, national delegations have already made it clear that they are not expecting miracles. “A progress report is the most we can hope for on 12 June,” said one Dutch official.

The European Commission appears to have so little confidence in the social partners' ability to strike a deal that it has already embarked on a parallel track. Flynn announced after last month's crisis meeting that he would be looking into the possibility of suggesting EU rules on worker consultation at national level.

The Commission will try to base any proposals on the results of talks between the social partners, but Flynn could ultimately impose a deal on the employers and unions if they cannot agree between themselves.