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IR Notes 70 – 1 March 2017
www.irshare.eu
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Interview
Éloi Laurent, Senior Economist at OFCE (Sciences Po Centre for Economic
Research, Paris) and lecturer at Sciences Po and Stanford University
(*)
The
European Parliament has just voted in favour of a fund for
financing a “just transition”. Does such an instrument form
part of the panoply of measures that will allow an
ecological transition to be accomplished without putting
employees at risk?
To understand its
actual scope, this measure must be seen in the broader context of
the resolution on reforming the carbon market. There is a
fundamental contradiction between the lack of ambition of this text
as adopted (against the advice of NGOs) and the excessive ambit of
the social adjustments supposedly going to be financed by this fund.
The reasoning is clear: the weaker the price of carbon, the lower
will be the revenues generated by the auctioning of permits. By
refusing to opt for a substantial annual reduction in the number of
permits in circulation, the Parliament’s resolution runs the risk of
maintaining the carbon market in its current state of torpor beyond
2021 (5 euros per metric ton, or eight times less than carbon’s
social cost). But by the same token, the resolution devitalises the
very transition fund it is setting up, which sees itself deprived of
the level of finance needed to address the vital issues that the
resolution itself outlines. What was a “just transition” becomes
“just a transition” …
Does
the restriction of fund’s application to the less well-off
regions of the EU seem justified in your
eyes?
Reserving the fund for
“carbon-dependent” sectors is a good idea, especially since the
resources will be limited, but adding to this criterion the regional
rationale of the structural funds clouds the issue because the
latter’s allocation depends on the entirely outdated yardstick of
per capita GDP. The European Union cannot champion a desire to go
“beyond GDP” in its development strategy while continuing to make
its macroeconomic and structural policies dependent on GDP. It is
completely contradictory. In this case, one could instead opt for a
criterion of energy poverty for heating and mobility, which would
mean adopting the social-ecological approach that I promote in my
work.
With
that in mind, which are the measures that appear to you
indispensable to make the ecological transition
acceptable?
It will be necessary to
establish a truly social-ecological transition whose major arenas
will be health and environmental inequalities, the jobs forming part
of the energy transition, a reversal of the basis of the taxation
system from positives (income, labour) to negatives (pollution,
excessive use of natural resources) and a social-ecological
protection concept that recognises ecological crises as the major
social risk of the 21st century and mutualises it so as to manage
it.
(*) Éloi Laurent is the author of Notre
bonne fortune – Repenser la prospérité (PUF), a work in which he argues the need to
establish a social-ecological transition to supersede growth. Out on
8 March 2017.
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Diary
2
March
Paris
Eurogip Discussions on “Occupational
health and safety, a performance lever for businesses“, with
contributions from European social partners.
13 March
Brussels
Launch of the joint ETUC-ETUI report entitled “Benchmarking
Working Europe 2017 “.
13 March
Brussels
Monthly Forum of the European Trade Union Institute (ETUI) on Prosperity
without growth – Foundations for the Economy of Tomorrow, with
Tim Jackson, professor of Sustainable Development at the University of
Surrey, United Kingdom, who will present his updated work, first
published in 2009 under the title “A prosperity without growth”.
14 March
Rome
Conference organised by SindNova,an IR Share partner organisation, to
mark the 60th anniversary of the Treaty of Rome.
23 March
Paris
Conference organised by Confrontations Europe entitled “60 years of the
Treaty of Rome – Relaunching Europe”, chaired by Marcel Grignard, with
Jean-Louis Bourlange, Isabelle Jegouzo and Laurence Parisot.
25 March
European
Union
60th anniversary of the Treaty of
Rome
29 March
Paris
Conference entitled “Less
constitution in Europe for more democracy“, by Professor Dieter
Grimm, one of the world’s most famous constitutional experts, who argues
for a “deconstitutionalisation” of the treaties in order to relaunch the
EU.
3-4
April
Valletta
Informal meeting of Employment and Social Affairs Council.
28 April
Paris
Conference of the AFDT
(French association for labour and social security law) on measuring the
representativeness of trade unions and employers’ organisations.
29 April
Bordeaux
Comptrasec (Centre for Comparative Labour and Social Security Law) (UMR
5114 – CNRS, a joint research unit operated by Bordeaux University and
the National Scientific Research Centre) is holding an international
and interdisciplinary conference on innovation and protection of
health in the workplace, with Professor Robert Karasek, father
of the job demand/control model for assessing work-related stress.
4 May
Paris
High-level conference organised by the OECD and the Foundation for the
Improvement of Living and Working Conditions on social
mobility and equal opportunities.
15-16 June
Brussels
Employment and Social Affairs Council.
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IR Notes is a
fortnightly newsletter produced by
IR Share and its network
of experts, and is available in several European languages. It offers
Europe-wide monitoring of employment law, labour relations and employment
policy. It is available by subscription for 15 euros per month (excluding
tax), via the IR Share
website. IR Share is a privately- owned, independent, apolitical company
whose aim is to inform and assist all players involved in social dialogue
within and outside Europe. It has been the correspondent organisation for
France and Luxembourg of the Dublin Foundation since 2009 and for Bulgaria
since 2014.
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Lead
story
A first step
towards an ecological and social transition
Once again, a flash of insight has just come from the European Parliament. Included
in the amendments,
which the Parliament adopted on 15 February 2017 as part of the revision of
directive 2003/87 aimed at reducing greenhouse gas emissions via the European
Emissions Trading System (ETS), is the creation of a “just transition fund” (see
Parliament press
release on the resolution). It is due to be created as of 1 January 2021 and
funded through the pooling of 2% of the revenues received from auctioning CO2
quotas. These revenues will be “used to support regions which combine a high share
of workers in carbon-dependent sectors and a GDP per capita well below the Union
average”. In the interests of a “just transition”, the funds thus collected “may be
put to use in different ways, such as: 1/ creating redeployments and/or mobility
cells; 2/ education/training initiatives to re-skill or upskill workers; 3/ support
in job-seeking and business creation; and monitoring and pre-emptive measures to
avoid or minimise the negative impact of the restructuring process on physical and
mental health. The amendment adds that “social partners shall be actively involved
in the fund management in a manner based on the model of the European Social Fund
committee and the participation of local social partners shall be a key requirement
for projects to get funding”. Although modest, this fund has the merit of emulating
the idea, promoted by Laurent Éloi and Philippe Pochet*, of engendering “a positive
common narrative … driven by the principle of social justice” in order to respond
to the challenges posed by the inevitable ecological transition. The report, which
was adopted by the Parliament by a majority of 379 to 263 votes with 57 abstentions,
will be the subject of negotiations with the Council with a view to reaching an
agreement on the issue, which will subsequently be returned to the Parliament. The
future of the fund is therefore pending on the outcome of these negotiations.
(*) “Towards
a social-ecological transition. Solidarity in the age of environmental
challenge“, an essay published by Les Petits matins in cooperation with the
Veblen Institute for Economic Reforms in November 2015, available
free of charge in English on the ETUI website.
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1. European
Union
Social
update
- Car industry: The European
Economic and Social Committee (EESC) on 22 February 2017 adopted an information
report on the automotive sector. “Nearly all that had been valid and universal
in the car industry for decades is at stake now”, conclude the rapporteurs, who
advocate social dialogue between the employers and the trade unions in order to
“ensure a smooth social transition for the automotive sector” (see press
release).
- Trade union campaign for pay rises:
The European Trade Union Confederation (ETUC) on 15 February
launched a campaign in support of wage increases. The ETUC believes that this
message is now being heard. “The trade unions are not isolated any more,” it
proclaims. “Some academics, politicians and even the International Monetary Fund
are now on our side, advocating for a policy shift supporting purchasing power
and investment” (see press
release).
- European Semester 2017: As
part of its annual cycle for coordinating economic policies at EU level, the
European Commission on 22 February published its annual analysis of the economic
and social situation in the Member States, including an assessment of remaining
imbalances. The 27
country reports released provide the annual analysis by Commission staff
of the situation in each of the Member States’ economies, on the basis of which
the Commission will draw up recommendations to be issued in spring (see
Commission press
release). The day before, the European institutions met with the
European social partners as part of the tripartite social dialogue process (see
Council press
release).
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2. Member
states
Denmark
New collective agreement for industry:
The employers’ organisation Dansk Industri (DI) and the
CO-industri association (Central Organisation of Industrial Employees in Denmark),
which represents nine trade unions in industrial sectors, on 12 February 2017
presented a new collective agreement covering 230,000 employees in the industrial
sectors. The provisions include: 1/ An annual wage increase of 1.6% on 1 March of
each of the three years covered by the agreement. 2/ A fund of around €26.9 million
to finance training for unskilled workers, trade union officials whose post has been
abolished and employees with literacy difficulties, especially those suffering from
dyslexia.
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Estonia
Towards a reform of parental leave and benefits
paid to parents: The government has put forward a reform of
parental leave and benefits. The key modifications would comprise: 1/ Greater
flexibility in the system in order to promote and increase paternal involvement in
childcare, encourage women to remain on the employment market, improve the work-life
balance, and allow parents to work while receiving some parental benefits. 2/ To
address the fragmentation of the system by reducing the number of types of leave and
allowances and harmonising the rules relating to parental leave and adoption leave,
as well as to social benefits. The government intends to draft the new legislation
by autumn 2017.
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France
Law on multinationals’ duty of vigilance
adopted: The French parliament on 21 February 2017
definitively adopted a law on the duty of
vigilance of multinational companies, drawn up after the Rana Plaza disaster
in 2013, in which more than one thousand workers in the garment industry in
Bangladesh died. Thus, “any company that employs […] at least 5,000 employees within
the company and its direct and indirect subsidiaries, whose head office is located
on French territory, or that has at least 10,000 employees within it and in its
direct or indirect subsidiaries, whose head office is located on French territory or
abroad”, must establish and implement an effective vigilance plan. The vigilance
plan must include “suitable measures to allow for risk identification and for the
prevention of severe violations of human rights and fundamental freedoms, injury to
human health and safety, and environmental damage” caused by the group but also as a
result of the operations of subcontractors or suppliers. Should the company fail to
meet its obligations, “a judge may sentence the company to pay a maximum fine of €10
million”, which can be increased by up to three times “depending on the seriousness
of the negligence and the circumstances in which it was committed “. Furthermore,
this fine “is not deductible from taxable income”.
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Italy
- Sectoral agreement in the energy sector
and petroleum industry: The employers’ organisation
Confindustria and the trade union federations Filctem Cgil, Femca Cisl and
Uiltec Uil on 25 January renewed the collective agreement for the energy sector
and the petroleum industry. Apart from a wage increase, the agreement set
several goals: 1/ To improve workers’ information and consultation rights
concerning productivity, working conditions and companies’ development plans. 2/
To form a national observatory for the sector – made up of trade union officials
and company representatives – in order to analyse and discuss key topics for
collective bargaining. 3/ To enhance the expertise of employee representatives
with regard to health and safety, the environment, sustainable development and
corporate social responsibility. 4/ To create a permanent joint national
organisation responsible for planning joint training activities, organising
national and local conferences and sharing best practices in relation to risk
prevention (see press releases of femca
cisl and filctem
cgil).
> Also see the press
release from IndustriAll Global Union on the new collective agreement in
the metalworking industry (678,000 employees), adopted at the end of December
2016 by the members of the three trade union federations, as well as the article
by Feliciano Ludicone published by Eurofound.
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3.
Companies
European
works councils
PSA Peugeot Citroën/Opel:
Following the officialisation of talks between the French
automotive group PSA Peugeot-Citroën and the German subsidiary of General Motors,
Opel/Vauxhall, Carlos Tavares, Chairman of the Managing Board of PSA, and Xavier
Chéreau, EVP Human Resources of PSA, met with Jörg Hofmann, first chairman of IG
Metall and president of the international trade union federation IndustriAll Global
Union, and Dr. Wolfgang Schäfer-Klug, Chairman of the Opel European works council on
20 February (see IndustriAll Global Union press
release and the press
release from PSA). The meeting underlines the importance of social
considerations in this case, since it took place even before the discussions with
the heads of government of the two countries involved, Angela Merkel and Theresa
May. There are several things worth mentioning here: 1/ The acceptance by PSA of IG
Metall’s most important demand, that the agreements on safeguarding jobs signed with
Opel should be upheld. 2/ The recognition of German co-determination arrangements by
the management of PSA, which compares them to its own “co-building” social dialogue
practices which, it says, with “the quality of relations with employee
representatives” form “a competitive advantage and a key factor in the success of
the company”. 3/ The management of PSA and IndustriAll Global Union will on 7 March
sign the renewal of their global framework agreement which will establish a world
group council. 4/ The executive committee of the European works council at PSA (the
“liaison committee”) has been informed about the process.
- Carlson Wagonlit Travel:
The management of the Carlson Wagonlit Travel group on 31 January 2017 announced
plans for further restructuring to the select committee of the European works
council which will result in the loss of 328 jobs inside the EU, including 150
to 170 in France. On the other hand, the management is planning to create 175
jobs in eastern Europe, very probably in Poland, under local contracts. This
reorganisation forms part of the group’s 3.0 strategy, which is being rolled out
globally and is based on the automation of a large number of functions.
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Transnational agreements
Solvay: The Belgian chemical
group Solvay (30,000 employees) on 22 February 2017 signed an agreement
with Solvay Global Forum, its world works council, to guarantee a minimum standard
of social coverage throughout the group all around the world. The agreement, named
‘Solvay Cares’, is to be rolled out over a three-year period starting on 1 April
2017. It provides four key benefits: 1/ Full income protection during parental leave
with 14 weeks for the mother and one week for the co-parent; and full income
protection of one week during adoption; 2/ A minimum coverage of 75% of medical fees
in case of hospitalisation or of severe illnesses; 3/ Disability insurance in case
of lasting incapacity; 4/ Life insurance in the event of death with coverage for a
beneficiary indicated by the employee (see Solvay press
release).
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4. Studies
and reports
- Nearly one-third of restructuring projects
in Europe have no European works council involvement: By
cross-checking the announced restructurings on a European scale featuring in the
restructuring
events database maintained by the European Foundation for the
Improvement of Living and Working Conditions against the founding agreements of
European works councils or SE works councils listed in the EWC database of the European Trade Union
Institute (ETUI), Stan De Spiegelaere, an ETUI researcher, sought to
discover how many restructurings with a European dimension were potentially the
subject of an information and consultation process involving a European employee
representative body. According to the policy
brief published by the ETUI, of the announced restructurings recorded
between 2013 and 2015, 70% took place in companies having such an institution.
In other words, in 30% of cases, the employees had no entitlement to
consultation on a transnational restructuring plan. In terms of jobs, this means
that one in five employees who are affected by restructuring is not covered by
such a process.
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