7 Company restructuring
| Committee's assessment
| Politically important
|
| Committee's decision
| Cleared from scrutiny
|
| Document details
| Commission Communication: EU Quality Framework for anticipation of change and restructuring
|
| Legal base
| — |
| Department
| Business, Innovation and Skills
|
Summary and Committee's conclusions
7.1 The Commission Communication proposes
a Quality Framework based on a broad set of principles drawn from
a variety of national frameworks, industrial relations systems
and social contexts which is intended to serve as "a source
of inspiration and guidance" for all those involved in, or
affected by, change and restructuring. The Framework has no binding
effect, but builds on existing EU Directives providing for information
and consultation within the workplace and seeks to raise awareness
of good practice in anticipating change and in managing restructuring
in a socially responsible way. It is mainly aimed at larger companies
and public sector employers, rather than SMEs whose capacity to
implement it is likely to be limited. Member States are urged
to support, disseminate and promote the Quality Framework as widely
as possible and to consider applying its principles to all public
sector employees. Social partners (trade unions and industry)
are invited to build on the Framework by developing their own
action plans to mitigate the impact of economic adaptation.
7.2 The Government considers that existing
arrangements for informing and consulting employees are adequate
and that the imposition of more formal requirements for businesses
contemplating or implementing restructuring measures would be
challenging in the current economic climate. As the Quality Framework
proposed by the Commission takes the form of a non-legislative
instrument without binding effect, the Minister for Employment
Relations and Consumer Affairs (Jenny Willott) indicated that
its policy implications for the UK were likely to be limited.
We agreed, but asked the Minister to explain whether the Government
intended to "support, disseminate and promote" the Quality
Framework, how it proposed to do so, and at what cost, and whether
the principles it enshrines would be applied across all areas
of public sector employment.
7.3 In this, our second Report on the
Commission Communication, we set out the Minister's response.
7.4 We thank the Minister
for her response which clarifies how the Government intends to
apply the Quality Framework in the UK. We are now content to
clear the Commission Communication from scrutiny.
Full details of the
documents: Commission Communication:
EU Quality Framework for anticipation of change and restructuring:
(35686), 18151/13 + ADD 1, COM(13) 882.
Background
7.5 Our Thirty-sixth Report, agreed
on 12 February 2014, provides an overview of the content of the
Commission Communication and the main elements of the proposed
Quality Framework on change and restructuring.
The Minister's letter of 17 June 2014
7.6 The Minister (Jenny Willott) tells
us:
"Since the QFR [Quality Framework
on Restructuring] was published in December 2013, the Department
for Business Innovation and Skills has been raising awareness
of the framework with relevant stakeholders including social partners.
We will continue to explore ways of raising awareness, including
via digital engagement.
Where appropriate and relevant,
we will draw attention to the Quality Framework as a potential
benchmark for parties to be aware of and consider. We will also
consider the framework when developing new guidance on employment
matters. These efforts will need to take account of the legal
frameworks and regulation already in place."
7.7 The Minister adds that, in promoting
the Quality Framework, the Government will seek to ensure that
it is "compatible with existing UK national laws and our
policy of a flexible, low burden approach". She notes that
it builds on a general framework Directive establishing procedures
for dialogue between social partners and for the consultation
of employees in the event of major changes, such as collective
redundancies. She continues:
"Light touch minimum standards
encourage both parties to engage in more co-operative conversations
which can benefit both the workforce and the employer. As part
of our on-going efforts to monitor compliance with this Directive
and ensure the effectiveness of information and consultation practices
in the UK, we plan to explore with stakeholders how the framework
can be applied in practice, across the public and private sector.
This will include engaging with public sector employers, including
where they are currently exempt from the Information and Consultation
Directives on which this framework is based."
7.8 The Minister anticipates that the
Quality Framework will enable the Government to continue its "flexible
and low burdensome approach" and should not give rise to
any significant new costs for Government or other stakeholders.
Previous Committee Reports
Thirty-sixth Report HC 83-xxxiii (2013-14),
chapter 4 (12 February 2014).
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