Select Committee on European Scrutiny Twenty-Sixth Report


  TWENTY-SIXTH REPORT

The European Scrutiny Committee has made further progress in the matter referred to it and has agreed to the following Report:—

SOCIAL POLICY AGENDA

(21420)

9964/00

COM(00) 379


Commission Communication: "Social Policy Agenda".
Legal base:
Document originated: 28 June 2000
Deposited in Parliament: 11 July 2000
Department: Education and Employment
Basis of consideration: EM of 18 July 2000
Previous Committee Report: None
To be discussed in Council: October and November 2000
Committee's assessment: Politically important
Committee's decision: For debate in European Standing Committee C

Background

  1.1  The Conclusions of the Lisbon European Council in March state:

"... taking account of the present conclusions, the Council will pursue its reflection on the future direction of social policy on the basis of a Commission communication, with a view to reaching agreement on a European Social Agenda at the Nice European Council in December, including the initiatives of the different partners involved.[1]"

  1.2  The current document is the Commission Communication to which the Conclusions refers. It was discussed at the informal Labour and Social Affairs Council on 8 July where the Council President told the press: "this testifies in a symbolic manner [the] priority for the French Presidency for the reinforcing of the European Social Model"; and the Employment Commissioner said: "it is the first time that there is a consensus on the fact that social policies, treated at a national level, must be co-ordinated at a European level."[2]

The document

 — General approach

  1.3  The Communication proposes a five-year programme (2000-2005) to follow the Social Action Programme for 1998-2000.[3] It sets out its aim as to "provide a comprehensive and coherent approach for the European Union to confront the new challenges to social policy resulting from the radical transformation of Europe's economy and society" with a guiding principle "to strengthen the rôle of social policy as a productive factor." It describes as "key" the message that "growth is not an end in itself but essentially a means to achieving a better standard of living for all. Social policy underpins economic policy and employment has not only economic but also a social value."

The preface to the document states:

"A wide range of actions are outlined in the Agenda:-

"—  some are targeted at realising Europe's full employment potential by creating more and better jobs, anticipating and managing change and adapting to the new working environment, exploiting the potential of the knowledge-based economy and promoting mobility;

"—  others will centre on modernising and improving social protection, promoting social inclusion, strengthening gender equality and reinforcing fundamental rights and combating discrimination;

"—  there are also initiatives devoted to preparing for enlargement and promoting international co-operation and making the social dialogue contribute to meeting the various challenges.

"While not all the actions proposed are new, those which are ongoing have been re-focused in accordance with the political directions given at Lisbon. A further innovation is that the open method of co-ordination[4], hitherto confined to the employment area, can now be applied to other social policies. This will ensure a more qualitative, and where appropriate, quantitative follow-up to agreed objectives and targets."

— Means

  1.4  The Communication envisages a combination of means to achieve its priorities, principally:

"—  The open method of co-ordination, inspired by the Luxembourg Employment Process and developed by the Lisbon and Feira European Councils.

"—  Legislation: Standards should be developed or adapted, where appropriate, to ensure the respect of fundamental social rights and to respond to new challenges. Such standards can also result from agreements between the social partners at European level.

"—  The Social Dialogue as the most effective way of modernising contractual relations, adapting work organisation and developing adequate balance between flexibility and security.

"—  The Structural Funds and particularly the European Social Fund as the main Community financial instruments to underpin policy.

"—  The Commission will, where appropriate, propose programmes underpinning the development of policy initiatives.

"—  The use of mainstreaming as a tool will be strengthened and further developed.

"—  Policy analysis and research will underpin the implementation of this Social Policy Agenda. This should result in regular reports on employment, gender equality, social situation and industrial relations".

— Objectives and Actions

  1.5  Under five main headings, the Communication identifies a number of objectives and lists actions (some already underway) under each. The headings and objectives are as follows:

"Full employment and quality of work:

"—  to realise Europe's full employment potential by working towards raising the employment rate to as close as possible to 70% by 2010 and increasing the number of women in work to more than 60% in 2010 whilst taking into account the different starting points of the Member States;

"—  to develop a positive and pro-active approach to change by promoting adequate information for both companies and employees, addressing the employment and social consequences of economic and market integration (mergers, acquisitions etc.) and adapting working conditions and contractual relations to the new economy with a view to fostering a renewed balance between flexibility and security;

"—  to accelerate the development of the knowledge-based economy to create more jobs in Europe;

"—  to ensure the de facto implementation of free movement of workers by removing obstacles to geographical mobility. Continue to monitor the application of Community rules on free movement of workers, examine the need for specific measures in areas which are at the heart of the knowledge-based economy and develop support mechanisms to facilitate mobility, including the use of new technologies".

"Quality of social policy:

"—  to modernise and improve social protection to respond to the transformation to the knowledge economy, change in family and social structures and build on the rôle of social protection as a productive factor;

"—  to prevent and eradicate poverty and exclusion and promote the integration and participation of all into economic and social life;

"—  to promote full participation of women in economic, scientific, social, political and civic life as a key component of democracy. This is not only an issue of rights, but also a major component for promoting social and economic progress;

"—  to ensure the development and respect of fundamental social rights as a key component of an equitable society and of respect for human dignity".

"Promoting quality in industrial relations:

"—  to make social dialogue at all levels contribute in an effective way to the challenges identified. To promote competitiveness and solidarity and the balance between flexibility and security";

"Preparing for enlargement:

"—  to contribute to preparing the enlargement of the Union under conditions of balanced economic and social development";

"Promoting international co-operation:

"—  to facilitate the exchange of experience and good practice in particular with international organisations (ILO, OECD, Council of Europe)."

  1.6  The Communication also contains a number of proposals for follow-up and monitoring.

The Government's view

  1.7  The Minister for Employment, Welfare to Work and Equal Opportunities at the Department for Education and Employment (The Rt. Hon. Tessa Jowell) comments:

"The Commission's stated aim is not to harmonise social policies but rather to work towards common European objectives in the social and employment fields (particularly those agreed at the Lisbon Council) while respecting national diversity. The Communication endorses the open method of co-ordination based on benchmarking and the exchange of best practice. The Communication highlights a number of weaknesses in the EU's employment performance against that of the United States.

"The Government supports the Commission's analysis of the challenges facing employment and social policy in the next five years. It welcomes, in particular, the emphasis on jobs and the need to raise employment rates across the Community. However, there are some proposals that the UK considers unjustified. Specifically, the UK opposes the Commission's proposal for a directive on a national framework for information and consultation of workers.[5]

"It will be necessary to assess carefully a number of proposals to codify, adapt or improve existing legislation, or for new legislation, in particular:

"—  a decision on Community incentive measures on employment;

"—  the development of collective bargaining between the social partners;

"—  the establishment of European level voluntary mechanisms on mediation, arbitration and conciliation for conflict resolution;

"—  a Communication on the social aspects of public procurement proceedings;

"—  a Communication on corporate social responsibility;

"—  a Communication and action plan on the financial participation of workers;

"—  a Communication to further develop the Community strategy on health and safety;

"—  a Commission Decision creating a Pensions Forum and subsequent proposal for an instrument on the transferability of supplementary pensions;

"—  a Communication on the free movement of public sector workers;

"—  undefined 'specific actions' to suppress obstacles to the mobility of researchers, students, trainees, teachers and trainers;

"—  a Communication on the future of social protection with particular reference to pensions;

"—  a Recommendation to ratify the ILO convention on child labour; and

"—  proposals to develop and strengthen the social dialogue."

  1.8  The Minister tells us that individual proposals will need to be evaluated to ascertain whether they accord with the principle of subsidiarity. They may also have legal and procedural implications.

  1.9  In relation to the timetable, the Minister says:

"The Communication was discussed at the Informal Social Affairs Council on 7-8 July. Further discussions are likely at the Social Affairs Councils in October and November with a view to reaching agreement on the new social agenda at the Nice European Council in December."

Conclusion

  1.10  Although this Communication has no legal force in itself, it is an ambitious and far-reaching document, and the French Presidency is according it a high priority. If there was indeed consensus at the informal Labour and Social Affairs Council "that social policies, treated at a national level, must be co-ordinated at a European level" the translation of that sentiment into concrete actions is unlikely to be an easy process. The long list of measures which the Government flags as needing careful assessment is an indication both of how comprehensive the document is, and of the caution inherent in the UK approach to its implementation. The Government has also made no secret of its opposition to the proposal for a national framework for information and consultation of workers (to which UNICE[6] is also opposed).

  1.11  Since this is the stage at which Parliament can have most influence on the Agenda, we recommend that the Communication be debated in European Standing Committee C — if possible before the Council meeting in November. The Committee may wish to ask the Minister:

—   what she thinks is meant by the statement that "social policies, treated at a national level, must be co-ordinated at a European level" and whether she agrees with it;

—   whether she has concerns about any of the main headings or objectives in the document;

—  what her general concerns are about the proposals which she considers to need careful assessment;

—  how other Member States have reacted to the proposed Social Agenda and, in particular, to the proposal for a national framework for information and consultation of workers.


1  Lisbon Conclusions: paragraph 34.  Back

2  Quoted in Agence Europe No. 7755, 10 and 11 July 2000, page 10. Back

3  (19146) 8328/98; see HC 155-xxx (1997-98), paragraph 2 (10 June 1998). Back

4  This co-ordination involves establishing policy guidelines, setting benchmarks, concrete targets and a monitoring system to evaluate progress via a peer group review. Back

5  (19679) 13099/98; see HC 34-viii (1998-99), paragraph 2 (3 February 1999) and HC 34-xxvii (1998-99), paragraph 7 (21 July 1999). Back

6  Union of Industrial and Employers' Confederations of Europe. Back


 
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