Struggling for new treaty commitments on employment

Date: 09/11/1995

By Emilio Gabaglio

New jobs are an unconscionable time coming. The effects of economic recovery on employment have yet to be seen. At the very best, it is holding unemployment steady - cold comfort indeed, when seen against the squandered economic opportunities and waste of human potential represented by 20 million unemployed.

Only radical changes in the way economic policy is managed will meet the challenge. In particular, we must ensure that we use our potential to the full. That means sustained growth rates of at least 3&percent; per annum, flanked by a package of more specific job-creating measures. It is against this backdrop that the forthcoming Maastricht Treaty revision will be played out.

The 1991 Intergovernmental Conference (IGC) was dominated by the monetary aspects of economic and monetary union. The 1996 IGC must now ensure that EMU really does have two legs and not just one.

In addition to our monetary objectives, we must also have economic goals, including employment promotion, and the means to carry them out. We must reject attempts to turn Europe into an unregulated free-trade area. The Union must have a framework of legislation and negotiated agreements through which it can achieve democratically-controlled growth, competitiveness and employment. We must take account of the aspirations of its citizens and workers.

Thus the European Trade Union Confederation's (ETUC) basic aim remains full employment: the creation of a society in which all citizens have a freely-chosen, decent job.

The immediate goal along that road is to put into effect the objective set out in the White Paper on Growth, Competitiveness and Employment of halving unemployment by the end of the century.

During the economic recovery at the end of the 1980s, employment increased annually by 1.5&percent; while unemployment declined by 1&percent; per annum.

Objectively, the conditions are now good for repeating this performance and getting on track towards reducing unemployment by half. Neither inflation nor competitiveness are generally a problem. Europe has an export surplus and profitability is at historically high levels.

However, the recovery which was evident earlier in 1995 has not maintained its momentum and there is a risk of stagnation and even of a new decline. That would be disastrous.

Since the growth process cannot be driven by exports and investment alone, there is an immediate need for a recovery of domestic consumption and hence increases in purchasing power. Confidence must be restored, among both consumers and businesses.

Making progress in the construction of Europe is now an important part of this. Through their macro-economic policies, governments and central banks must make it clear that the Essen employment process is being taken seriously and that they are now directly committed to the fight against unemployment, and not just to stability.

For its part, the ETUC has recognised that sustained recovery requires a greater share of national income to be channelled into investment, which should help to both create jobs and ensure that people have the qualifications to fill them, and that it is essential in such a recovery to get budget deficits under control in a socially balanced way.

The Essen process, setting as it does the priorities of a supply-side employment policy, does make a start on providing the Union with economic convergence procedures and objectives.

But much doubt rightly remains about their implementation. Some governments' lack of political resolve and courage has too often in the past invited failure.

For that reason the ETUC proposes - and it is a belief that is now gaining ground in the ad hoc IGC Reflection Group - that a section on employment should be made an integral part of the treaty. The new treaty must give Europe a responsibility for employment and equip it with the instruments to secure better employment prospects.

Europe only has a point if it is shaped for and by its citizens.

If Europe's citizens are to be asked to endorse Europe's future and put their shoulders firmly to the wheel of European integration, then that Europe must be a Europe which speaks to them.

Europe must extend the fundamental social rights and welfare protection which are a part of all European countries' systems.

The new treaty must give constitutional force to the principles contained in the charter of fundamental social rights. The Maastricht Social Protocol must also be written into the body of the treaty and the British 'opt-out' should be ended.

The treaty revision must be seized on as an opportunity for giving European recognition to the basic rights found in all Union countries: the rights to organise, to bargain collectively and to take collective action.

The social dialogue established ten years ago has, over time, evolved into a forum for bargaining.

An early attempt to negotiate the establishment of European works councils was cut short by the machinations of some European employers. European works councils now have a basis in legislation, but it is clear that the directive has given momentum to a negotiating process, including in the UK. The social partners are now in the final stages of negotiations on parental leave.

These examples are clear evidence that both legislation and negotiation are elements of European practice which must be encapsulated in the treaty. The string of British multinationals which have shown willingness to negotiate on a trans-European basis should give John Major pause for thought about the validity of the British 'opt-out'.

Another long-standing, cardinal demand of the unions is for more democracy. It was a demand only partially satisfied in 1991 at Maastricht. The 1996 IGC must do better.

The European Parliament has to be given wider, effective powers of control. The Commission, too, must be strengthened and qualified majority voting in the Council of Ministers must be made the general rule, including for social and environmental issues.

If it is to be a Union by and for the people, the EU must also have a policy of openness.

So far, Europe has been too much a playing field for the inner circle. That was certainly true of Maastricht.

The 1996 IGC must mobilise the active participation of all democratic, political and social forces. It must not only supplement the Maastricht Treaty by establishing political and social union, it must also revitalize and consolidate the European blueprint and accommodate its future enlargement.

The Union must be deepened and broadened. A long line of southern and eastern European countries are already queuing up outside the Community's doors. The historical changes in Eastern Europe are both a challenge and a responsibility for the wider Europe. Yesterday's solidarity with democracy must be consolidated tomorrow.

The fall of the Berlin Wall turned a page of history. The Union now has a responsibility to see that it is not replaced by other barriers.

The new treaty must accommodate the future enlargement. It must open the door to 'Europeanisation' not just in thought, but also in deed.

The IGC is an opportunity to do that - an opportunity not to be missed.

Emilio Gabaglio is the General Secretary of the European Trade Union Confederation.