Select Committee on European Union Written Evidence


Memorandum by Trades Union Congress (TUC)

  1.  The Trades Union Congress is the voice of Britain at work. Representing nearly 6.5 million workers in over 60 unions, the TUC seeks to raise the quality of working life and promote equality for all. Our members work in manufacturing and services, and in the public, private and voluntary sectors.

  2.  The TUC welcomes the European Union Committee's initiative to inquire into the Commission's 2007 legislative and work programme. The TUC will not attempt to comment on all parts of what is a very wide-ranging programme but will instead seek to make some key points.

  3.  First, the TUC welcomes the idea of a detailed public work programme resulting from extensive consultations. However, there would be overall benefit if the EU had just one work programme, rather than two potentially competing ones—that of the Commission and those of the successive Council presidencies. The decision taken in the context of the now stalled Constitutional Treaty to abolish the six-monthly rotating Council presidencies, though no longer operational, might indicate that there would be support for a system whereby the Commission proposed and the Council and Parliament adopted a single, EU, work programme. This should be tried.

  4.  Secondly, there is a need for greater coherence between the Commission's—or ideally the EU's—work programme and national priorities. A December 2006 European Economic and Social Committee opinion ("EU and national administration practice and linkages") records that in the overall EU decision-making process the role of national implementation has been neglected—by both the political and academic worlds. The TUC has the impression however that in a number of countries governmental priorities and strategies make little if any reference to European ones. The Commission says that member states (and other European institutions) were consulted on the predecessor document to the work programme (the March 2007 communication entitled Annual Policy Strategy for 2007), but the TUC is not aware of what positions the British government took. The TUC welcomes the decision of the Commission to inform national parliaments directly of its proposals, rather than just member state governments; hopefully this will lead to debates on key issues and/or to more inquires like the present one. That should contribute to greater coherence.

  5.  Thirdly, the TUC agrees, regretfully, with the Commission that the Lisbon strategy has entered a new phase. The original strategy in 2000 was about raising Europe's ability to respond to challenges such as globalisation and technological change through productivity and innovation policy. Social Europe was an essential part of the solution: a broad and effective knowledge-based society could only be built on a basis of high social cohesion and strong workers' rights. However, the 2005 re-launch of Lisbon fundamentally changed all that. The new agenda prioritised the pillar of competitiveness over the pillar of social cohesion. Jobs, irrespective of their quality, were seen as the best social policy, and workers' rights, such as the right to job protection and the right to a regular work contract, were treated as a "rigidity" protecting the "insiders" at the expense of "outsiders". In this view, the role of European policy was no longer seen as to provide a social level playing field for competition on the European labour market. Instead, European level policy was narrowed down to policies that trigger competition and make member states compete against each other for investments and jobs through wage competition, longer working hours and precarious working conditions.

  6.  For the TUC it is wrong to set economic and social progress against each other: they are friends, not enemies—and this way of thinking has traditionally been at the heart of the European model. All EU member states might not have identical social or industrial relations systems—though they do share a number of common or similar features—but the key point is that all systems are at risk of being undermined if Europe does not establish and enforce common basic minimum standards.

  7.  There have been some indications recently that the Commission might be re-thinking its position, and certainly in the programme solidarity is made a strategic objective and the importance of the "social core at the heart of how Europe works" is highlighted. However, the programme does not envisage progress on any of the key social dossiers: the revision of the directives on European Works Councils and on Working Time, the adoption of a directive on Temporary Agency Work, or the presentation of a framework directive ensuring that public services (or Services of General Interest in the EU jargon) can be run according to public interest considerations and not just those of the market. That being the case, a certain suspicion of the policy proposals that are made—such as on "flexicurity" and on the social reality stocktaking—is inevitable. Will those exercises be used to reform and strengthen Europe's social dimension, or to weaken it ?

  8.  Jacques Delors' quip that you can't fall in love with the Single Market needs to be taken to heart, especially as the situation has deteriorated since his day. Now, for many European citizens the Single Market is associated with the liberalisation of public services and with de-localisation or off-shoring—and thus with unemployment and threats to living standards. The European social model and social dimension are an essential way of bringing Europe closer to the citizen again.

  9.  Fourthly, "better regulation", which is an important part of the programme, is a concept that can easily be filled with different, even contradictory, contents, and the results for citizens are not always obvious. It is claimed by organisations representing SMEs in the UK that they are struggling to cope with running their businesses because of excessive and complex regulations, many of which emanate from EU Directives. However, there is no serious evidence that the UK economy is experiencing any difficulties as a result of EU legislation, and the recent Davidson Report on transposition of directives in the UK concluded that there was very little evidence of "gold plating" employment directives when they were transposed. Moreover, the reduction of costs for business often implies the shift of these costs to society in general and to citizens and employees.

  10.  The TUC accepts that there is an issue in the UK about the transposition of employment and safety directives, as our legal and industrial relations structures are very different from those in many other member states. There is for example very little legally enforceable national or sectoral level collective bargaining in the UK. If there were to be, that would provide a non-regulatory means of implementation. The TUC believes that a distinction needs to be drawn between regulation that requires particular procedures to be followed and regulation that underpins policy objectives. Clearly the former should be devised in such a way as to ensure achievement of the latter, but should not become elevated into policy status. As long as that distinction is retained, efforts to improve, and where possible without affecting policy objectives, reduce regulation can be supported.

January 2007





 
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