Select Committee on European Legislation Second Report


DEVELOPMENT OF THE SOCIAL DIALOGUE

6.   We consider that the following raises questions of political importance, and recommend its further consideration by European Standing Committee B:--

Department of Trade and Industry

(17514)
10305/96
COM(96)448
Commission Communication concerning the development of the social dialogue at Community level.
Legal base: Article 118b and the Agreement on Social Policy (Protocol No. 14) are relevant.

  Background

    6.1  The Commission has a formal obligation under the Treaty of Rome (Article 118b) to develop a dialogue at European level between management and labour (together known as "the social partners"). Apart from discussions between the partners, this "social dialogue" covers discussions between the social partners and the EU institutions, and it is the process whereby the Commission consults representatives of employers and trade unions on social affairs.

    6.2  In its Medium Term Social Policy Action Programme[14] the Commission undertook to review several aspects of the social dialogue in separate documents. Instead, it has taken them together in this paper, which is the first one of substance from the Commission since its 1993 Communication on the implementation of the Protocol on Social Policy[15].

  The Commission communication

    6.3  Explaining the purpose of the Communication, the Commission says that the most important issue facing the EU is employment and that, since the Essen Council, there has been closer co-ordination of employment policies, opening the way for a greater role for the social partners in supporting, completing and possibly correcting Community action in this area. This has led to greater focus of the social dialogue on employment. The Commission says that "adapting the social dialogue structures, some of which were not developed to cope with this task, is a major preoccupation of this Communication." The aim is to open up a debate and to incorporate the most appropriate solutions in a second Communication in 1997. The views of interested parties are sought by 31 December 1996.

    6.4  Describing in some detail how the social dialogue has been working, the Commission sets out a number of proposals and questions on how it can be improved in the following areas:

  (i) Interprofessional social dialogue

        Systematic and timely consultation in the six Advisory Committees in the social policy area on proposals being prepared by the Commission does not always take place. The structures and tasks of the Interprofessional Advisory Committees should be reviewed, together with the status of the European social partner organisations on these committees. Consideration could be given to merging the advisory committees on social security for migrant workers and on freedom of movement for workers.

  (ii) Sectoral social dialogue

        Ten Joint Committees (JCs) and ten Informal Working Parties (IWPs) in 16 key sectors participate in the Sectoral Social Dialogue. They have issued nearly 100 opinions and recommendations, so the Commission has been kept informed, but it is not normally obliged to hold consultations with them before the formal adoption of a text. According to the Commission, their potential as consultative bodies has not, therefore, been used to the full when proposals with social implications are envisaged. It adds that they have also become over-institutionalised and are imposing a heavy budgetary and administrative burden (130 meetings a year in 1994 with 24 to 50 participants at each). The Commission asks for ideas for a more intensive and relevant sectoral social dialogue and recommends improvements to the process. It intends to carry out a new study on the representativeness of sectoral social partner organisations, to complement its 1992 study on the representativeness of the interprofessional organisations.

  (iii) Standing Committee on employment (SCE)

        The aims for continuous dialogue, joint action and consultation between the Council, the Commission and the two sides of industry which prompted the establishment of this Committee have been achieved "only to a very limited extent", according to the Communication. "As a ritual with no obligation to achieve a result, the Committee no longer attracts the attention of the leading players." The Madrid European Council decided to create a permanent and stable structure for employment policy, including an Employment Committee to ensure close co-ordination between employment and economic policy. The Commission considers that reform of the SCE should be linked to implementation of this Council decision. The composition of the SCE should be rationalised and a work programme established.

  (iv) Social dialogue under the social protocol

        The use of the new consultation and negotiation mechanism has proved "an innovative and challenging experience for social partners and the EU institutions alike". The consultations worked well but the six-week time limit for first-stage consultations under Article 3 of the Protocol needs to be more flexible, in the Commission's view. It commits itself to extending the consultation procedures provided for in Article 3 to all social policy initiatives, irrespective of the legal base, (whether they come under the Social Protocol or the EC Treaty). It undertakes to re-evaluate the appropriateness of the criteria applied to participant organisations (listed at Annex III of the Communication). It will also promote the development of the dialogue between all the social partners. The Commission seeks views on the lessons learnt from the negotiations on the Agreement on Parental Leave[16]. Participation in social dialogue negotiations had proved to be sensitive and controversial and the Commission encourages the social partner organisations to co-operate more closely to find a solution to this question.

  Broader issues

    6.5  Reiterating its belief that the social dialogue should focus, at interprofessional as well as sectoral level, on employment, the Commission says that the Social Dialogue Committee and the sectoral committees can be expected to be the driving force in developing social dialogue on a co-ordinated employment policy. It proposes to promote more effective communication of information about the European social dialogue and says that it would be willing to assist the social partners to develop co-operation with counterpart organisations in the Central and Eastern European Countries (CEECs). The limited funds for social dialogue issues, established by the European Parliament, could be used to enable those countries to develop social dialogue.

    6.6  In the Commission's view, more could be done to provide financial support for joint initiatives agreed by the social partners to further the goals of the social dialogue.

  The Government's view

    6.7  In his Explanatory Memorandum (dated 29 October 1996) the Parliamentary Under Secretary at the Department of Trade and Industry (Mr John Taylor) says:--

        "(a)  The Government welcomes full and effective consultation by the Commission when considering legislative proposals. However, it believes that the Social Dialogue should not be confined exclusively to reflecting the views of trade unions and employers. Moreover, it should take full account of subsidiarity and avoid discussing topics which are better dealt with at national or lower level.

        "(b)  Only the proposals on the interprofessional and sectoral social dialogues and the Standing Committee on Employment are of direct relevance to the UK. The Government welcomes the Commission's recognition of the need to rationalise some of these structures in the light of budgetary and resource constraints. However, these constraints do not seem to have curbed the Commission's desire to fund initiatives agreed by the social partner organisations, e.g. training and research institutes, nor to expand the social dialogue both within the EU and in Central and Eastern Europe as a preliminary to enlargement.

        "(c)  The Maastricht Agreement on Social Policy is not applicable to the UK which opposed the revised social dialogue provisions on the grounds that it is wrong for employers and employees throughout the Community to be bound by centralised agreements reached at a remote European level by bodies which are far from fully representative."

  Conclusion

    6.8  Although the Agreement on Social Policy is not applicable to the UK, a number of proposals in the Commission Communication are of current direct relevance. The Commission seeks to open these up for discussion and recommendation and we believe that they should be considered by European Standing Committee B. Questions which arise include:

        --How well has the social dialogue been working? Is the picture portrayed by the Commission accurate? Is a change of emphasis advisable? Can and should it focus more closely on employment issues?

        --Are reforms needed and has the Commission correctly identified the key areas? Is there a role for the Standing Committee on Employment? Should this Committee and the sectoral committees be reformed in any case?

        --Is representation too restricted? Should consultation be opened out so that people other than trade unions and employer organisations can put forward their views?

        --Should more financial support be made available to institutions promoting the social dialogue?

        --Should assistance be given to the CEECs to develop social dialogue?


14.(16128) -- (COM (95) 134): see HC 70-xviii (1994-95), paragraph 2 (7 June 1995). Back

15.15102 (4075/94; see HC 48-xxvi (1993-94), paragraph 4 (19 October 1994), and Official Report, European Standing Committee B, 1 February 1995. Back

16.(17095) 4824/96; see HC 51-xix (1995-96), paragraph 9 (15 May 1996). Back

 

 


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Prepared 18th November 1996