Crisis talks sparked by Renault closure

Date: 27/03/1997

By Simon Coss

HURRIED efforts are under way to arrange an emergency meeting of trade union leaders, employers' organisations, the European Commission and member states to discuss ways to avoid a repeat of this month's shock closure of a Renault factory in Belgium.

A date for the talks has yet to be fixed, but the Dutch EU presidency hopes all sides will be able to sit down to thrash out “something between a code of conduct and a gentleman's agreement” before the next formal meeting of Union social affairs ministers on 17 April.

The move comes amid calls from the European Metal Workers Federation (EMF), which is spearheading the current campaign against Renault, for an urgent revision of the European Works Council Directive.

The directive obliges major companies operating in more than one member state to set up worker consultation bodies which must be involved in any restructuring or closure decisions. But Renault's actions have raised question marks about its effectiveness.

“It seems quite clear that we have to sharpen the legal tools to prevent multinationals short-circuiting the directive,” said EMF General Secretary Hans Flugel.

Flugel wants to see a statutory time delay of three to six months between the start of worker/employer talks and the implementation of any decisions taken. This would prevent firms calling meetings to 'consult' workers about the fact that they are about to be made redundant.

The EMF also wants the European Commission to be given the power to suspend factory closures in the event of disputes over whether rules have been observed.

Critics say companies operating in several member states often avoid European-level consultation by arguing that they are restructuring at national level. Through such a 'piecemeal' approach, it is claimed, employers are introducing Europe-wide changes without the attendant Union-level consultation.

To tackle this perceived anomaly, the EMF is calling for the creation of consultative committees made up of unions, employers and the Commission, to consider how to reform key EU industries. “With such structures and processes we can establish a socially acceptable restructuring of industry in Europe”, said a spokesman.

The EMF claims that unless changes are made to the directive, the 'Vilvoorde experience' is likely to be repeated across the Union. It warns this can only add to the rising tide of popular disillusionment with the principle of European unity - already under serious threat as governments tighten their belts in an attempt to meet the stringent convergence criteria for membership of the single currency bloc.

Unlike their trade union counterparts, it seems the European employers' federation UNICE does not plan to say a great deal at the forthcoming meeting. Although the organisation believes all EU directives and collective agreements should be respected, it will not go so far as to criticise Renault's behaviour openly.

Meanwhile, protests by former Vilvoorde workers continue. This week, around 250 trade unionists converged on Brussels' Gare du Midi and prevented high-speed trains leaving for Paris and London.