German jobs scheme divides workers and employers

Date: 07/01/1999

By Myles Neligan

EUROPE's trade unions and employers' organisations are deeply divided over the German government's plan for a new employment pact for the Union.

The gulf between them is likely to be underlined when German Chancellor Gerhard Schröder, who has made getting agreement on the pact a top priority for his government's term at the EU helm, meets the two sides to discuss the proposed accord later this month.

The planned pact is also expected to dominate a meeting between German ministers and European Commissioners next Monday (11 January) at which Bonn's plans for its six-month presidency of the Union will be discussed.

The chances of any new employment pact succeeding are slim without the participation of EU employers' federation UNICE and its trade union counterpart the European Trade Union Confederation (ETUC), both of which are due to play a vital consultative role in formulating concrete job-creation measures.

The ETUC is pushing for the proposed pact to be reinforced by firm spending commitments and accompanying macroeconomic measures, while UNICE favours a far more minimalist approach.

"A mere renaming of the EU employment guidelines would not be to our liking," ETUC general secretary Emilio Gabaglio told European Voice. "We welcome the progress that has been made in achieving economic stability, but feel that it is time for a shift in emphasis now that the euro is in place. A broader policy mix than that set out in the employment guidelines is desirable."

But UNICE is keen to play down suggestions that the basic employment

standards could be boosted by additional investment. "We are a bit cautious," said a spokesman. "There is a fear that the measures under discussion will lead to higher taxation. We believe that the priority for now must be making a success of the euro. Stability is more important."

Schröder is due to meet both bodies in the final week of January for preliminary talks on how they can best contribute to the process.

Bonn has yet to come forward with a concrete strategy for the pact, but Schröder laid the foundations for a new accord at last month's summit in Vienna, when he persuaded other EU governments to set themselves concrete job-creation targets as part of their 1999 national employment action plans.