General Council Report 2002: Chapter 6

General Council Report

• europe
• 6.1 Introduction
• 6.2 General Council Statement
• 6.3 Economic and Monetary Union
• 6.4 Institutional developments
• 6.5 Employment
• 6.6 European Social Dialogue
• 6.7 Democratisation of the economy
• 6.8 Social policy
• 6.9 EU enlargement and migration
• 6.10 Network Europe

europe

6.1 Introduction

During the year, the General Council have continued to work within the European TUC to ensure that the European social model is central to European policies as a whole and endeavoured to ensure full UK participation and compliance. An Anglo-Italian government attempt to divert from those objectives at the Barcelona European Council meeting in March was beaten back following a robust stance taken by the European trade union movement.

On the legislative front, the European trade union campaign for the Information and Consultation Directive came to fruition with its final adoption in February. A voluntary agreement on telework was reached between the European social partners and the TUC is pressing to see this is properly applied in Britain. Campaigning is also under way to obtain European measures on standards for agency workers. Further work is also in train on corporate restructuring issues.

Other items under consideration in Europe include the further involvement of the social partners in economic and social matters; the future development of Europe and the enlargement of the EU.

6.2 General Council Statement

The General Council reviewed EU developments in June, and adopted the following statement which they commend to Congress:

European Union: General Council Statement

The General Council re-affirm the positions expressed in the Statement European Union - trade union priorities for the next term, which they adopted on 18 July 2001 and which was endorsed by Congress. The British trade union movement has been justified in pursuing a positive strategy in relation to European developments, based on a continuing balance between economic and social progress, enshrined within the European Social Model. British trade unions have helped to build the ETUC into an effective and influential organisation, representing the interests of European workers to the European institutions. They have promoted a positive vision of the way forward in Europe based on solidarity and co-operation. As a result, major gains have been made in Britain in employment protection, worker involvement and equal treatment.

The General Council will continue to support the Labour Government in its approach of establishing the UK as a full participant in the European Union. They appreciated the Government’s acceptance of the Social Chapter and the active support it provided for the introduction of the Employment Chapter and they have continued to encourage it in its policy of preparing for entry into the single currency so as to give the British people the option of joining.

However, the General Council expressed their strong concern at the joint statements made by the British and Italian Prime Ministers at the Anglo-Italian Summit in Rome on 15 February and the promotion of a particular approach to labour market flexibility prior to the Barcelona European Council in March. The General Council felt that such an approach gave a clear signal around Europe that there was an alliance for deregulated labour markets and a message that employment regulation at the EU level was finished, in the mistaken belief that deregulated labour markets lead to job growth. Such an approach would undermine the Social Model, weaken the Social Dialogue and prevent the full operation of the Social Chapter, all of which represented major gains for European workers.

Single currency

The General Council welcome the successful introduction of euro notes and coins in 12 EU countries on 1 January 2002, and will inform themselves further of the experience of eurozone countries. They note that the discussion at the European level is shifting increasingly to how economic policy should be co-ordinated and what role the euro Group in the Council, as well as the Commission, should play in this. Exclusion from the euro Group reduces the UK’s ability to influence the course of events, but the outcomes will have a permanent effect on the UK, whether we are members or not.

The General Council note the statements of the Prime Minister and the Chancellor of the Exchequer maintaining the Government’s position - that it intends to assess the five tests set by the Chancellor in October 1997 by next June and that, if the Government and Parliament agree to entry, their recommendation will be put to the British people in a referendum. The Government’s outline National Changeover Plan sets down a clear timetable for a transition to the euro, should such a decision be taken. The General Council welcome the involvement of the social partners among others in the Chancellor’s Standing Committee on Euro Preparations and the recent report prepared for it drawing on the experiences of the private sector (including trade union organisations) in the euro area countries.

While there has been some volatility in the pound/euro exchange rate during 2002 the General Council have argued for a policy approach that would achieve a sustainable exchange rate between the pound and the euro by the time the currency is locked in.

They are concerned at the continuing relative weakness of the euro, which makes that objective more difficult to meet. They also recognise that adjustment of the exchange rate could impact on stability and lead to inflationary surges which could prompt the independent Monetary Policy Committee - which has too often in the past taken a deflationary approach - to impose interest rate increases and the Government to increase taxes or reduce public spending. At the same time, the relative strength of the pound against the euro is causing severe problems for British manufacturing where some 10,000 jobs are being lost every month. The need for a more secure and competitive alignment of the pound against the euro remains important and urgent.

The General Council, and the ETUC, have called for more openness and transparency from the European Central Bank, and have supported an enhanced supervisory role for the European Parliament over it. They have also called for the ECB to act more positively in regard to its duty to support Community objectives notably in pursuance of high levels of employment and social protection, without prejudice to the objective of price stability. The General Council sympathise with suggestions by the Chancellor of the Exchequer for improvement in ECB mechanisms, for example in relation to setting symmetrical inflation targets, which do not require Treaty amendment, and believe that they could be accommodated within a review by the ECB Governing Council of their Monetary Policy Strategy, set on 13 October 1998. The General Council welcome discussions which have been initiated about some of these matters, including in the context of the Future of Europe debate.

In line with previous Congress decisions, the General Council will continue to encourage an informed debate on Britain’s membership of the euro, and to press the case for positive support for UK membership of the single currency if the five economic tests are met and at an exchange rate that is sustainable - it being understood that meeting the tests is not a prerequisite for the General Council to campaign about the euro. The General Council will give special consideration to the issues when the Government announces its intentions. It is clear that progress towards consolidation and expansion of the European Social Model will be a crucial part of that consideration, as will any repercussions on public expenditure.

Social Policy

British workers have made major gains through European legislation on a range of social policy issues, for example on:

· Collective redundancies, transfer of undertakings and protection of employees, protection of employees in insolvency situations;

· Working time, with outstanding proposals for road transport workers adopted in February 2002;

· Information and consultation of workers at European and national level;

· Equal treatment for part-time and fixed term workers - and it is hoped temporary agency workers; and rights to parental leave;

· Equal opportunities and equal treatment,

· including dealing with sexual harassment, obligations on employers to promote equality in the workplace and reinforced protection for women returning to work after maternity leave; protection for pregnant women at work; reversal of the burden of proof in equal pay cases;

· Combating discrimination, notably on grounds of religion, age or sexual orientation in employment;

· Health and safety at work;

· Protection of young people at work.

There has also been a range of EU initiatives to combat racism and xenophobia, for example through the Vienna observatory, which the General Council support fully.

The General Council are particularly pleased that the framework directive on the information and consultation of workers in national companies was finally adopted by Council in February 2002, after Conciliation with the European Parliament. The General Council will pay special attention to the transposition of the directive into UK law to ensure that its spirit and letter fully apply in Britain.

The General Council renew their call on the Government to show greater commitment to enhancing social policy, and are concerned that it has sought systematically to minimise the effect of EU instruments at the stage of transposition into UK law. The General Council reiterate that trade unions should not have to complain formally to the European Commission or to take the Government to the European Court of Justice to ensure the proper implementation of European social legislation. The General Council note that the European Commission has now issued infringement proceedings against the Government over the unlawful and inadequate transposition of other requirements of the Working Time Directive. They are also concerned that the Government is running a concerted campaign against the main provisions of the draft directive on equal treatment for agency workers.

The General Council look forward to more advances in social dialogue at the European level and they repeat their call for equivalent action on social dialogue in the UK. They recognise that the social partners have some involvement in the drawing up of the National Action Plans for employment, and that the Government has supported social dialogue in relation to the recent voluntary agreement on telework. Nevertheless, much remains to be done, particularly in relation to social partner involvement in the application in Britain of EU social policy instruments.

Employment Chapter action

The General Council, and the ETUC, have co-operated in the various processes which emerged from the Amsterdam Employment Chapter, and subscribe to the objective set at the Lisbon European Council on Employment for the EU to become in the next decade ‘the most competitive and dynamic knowledge-based economy capable of sustainable economic growth with more and better jobs and greater social cohesion’. They underline the need to raise the skill levels of the European workforce as a whole and welcome initiatives of the European Commission in this respect, including the report of the High Level Task Force on Skills and Mobility of which the TUC General Secretary was a member. They are happy to participate in ‘open policy co-ordination’ involving benchmarks, targets and peer review groups but do not, however, accept the Government’s interpretation that this obviates the need for EU legal instruments to be advanced in the social field, whether adopted by the European institutions or negotiated by the social partners.

The General Council note that the Conclusions of the Special European Council on the Lisbon process, held in Barcelona in March 2002, stressed the European Social Model, based on good economic performance, a high level of social protection and education and social dialogue. The European Council considered that the Social Agenda agreed at Nice last year to be an important vehicle for re-enforcing the European Social Model and that the Lisbon goals could only be brought about by balanced efforts on both economic and social fronts.

The General Council in particular applaud the European Council’s invitation to the social partners to find ways of managing corporate restructuring better through dialogue and a preventive approach and their call for the enhancement of the qualitative aspects of work, especially in the area of health and safety. They note, too, the European Council’s call for

re-enforcing the role of the social partners in the Employment Strategy, with a strong participation of the social partners and the public authorities, especially on the quality of work, lifelong learning and gender equality.

The Future of Europe debate

The European Convention on the Future of Europe began its work in March 2002. Its report next year will form the basis for discussions at the 2004 Intergovernmental Conference. The objective is for this to coincide with the enlargement of the EU to up to 27 member states. The general message from many of the contributions to the Convention so far has been that the aim should be to produce a treaty of a constitutional nature in which the EU Charter of Fundamental Rights should be incorporated.

The ETUC has highlighted a number of priority issues which include: anchoring the European Social Model in the treaty; a framework for a European industrial relations system, as well as anchoring the rights of the European social partners as co-regulators; legally binding incorporation of the EU Charter of Fundamental Rights; anchoring of the principles of Services of General Interest (public services) in the treaty; safeguarding and strengthening the social dimension of the internal market and Economic and Monetary Union; and reforms linked to a participative democracy and democratic legitimacy, including action to reinforce democratic control and openness in EU decision-making, notably through the European Parliament and public access to meetings of the Council of Ministers.

The agenda should aim at building an open and people-centred Union, including maximising possibilities for free movement for people to match freedoms of movement for capital, goods and services. The General Council reject any suggestion of policies pandering to the prejudices of the populist Right and leading to a ‘fortress Europe’. They believe that the EU should give a lead for a modern and coherent worldwide migration policy which plans for the future, which attempts to deal with widening gaps in prosperity, and which emphasises equality of opportunity. It must also be a compassionate policy which accepts the EU and its member states’ ILO, UN Charter and European charters and conventions obligations.

The General Council believe that international trade can foster growth and jobs. They support multilateral trade agreements and oppose protectionism. At the same time, they share with many groups in Europe and throughout the world deep concerns at the lack of mechanisms to ensure that basic labour and environmental standards are respected by all parties, notably in the context of the World Trade Organisation, and by multinational enterprises. The General Council reiterate their belief that it is incumbent on the EU, which speaks with one voice on international trade, to lead positively in this debate and to promote human rights and core labour standards worldwide.

Conclusion

The General Council believe that a robust case for our full involvement in the EU needs to be made consistently, in particular to counter anti-European prejudices fostered by some elements in the media. They urge the Government to involve fully the social partners, community organisations and other elements of civil society in its efforts to promote understanding of European issues.

6.3 Economic and Monetary Union

The General Council have maintained their position on the single currency, as described in

the above Statement, and have continued to encourage an informed debate on the issues. Related matters have been discussed regularly with the Government. The General Secretary has continued as a member of the Chancellor’s Standing Committee on the euro, and the TUC has also been represented in the Treasury Business Advisory Group.

The Chancellor’s Standing Committee agreed that a report should be prepared on the experiences of the private sector (including trade union organisations) in the euro area countries during the transition to Economic and Monetary Union. The TUC was invited, together with other bodies representing business, to contribute to the report, which was based on information from counterparts within the euro area. One of the key findings of that report was that 'It is important to consider employee, health and safety issues early in the planning process and to ensure that there are adequate staffing, training and contingency plans in place… The changeover was smoothest where there were well-established communication channels between government, public and private sectors and unions.'

Rt Hon Neil Kinnock, Vice-President of the European Commission, addressed the General Council in December about UK membership of the euro. In the discussion, he argued that the ‘Europe yes, euro no’ position was untenable in the longer term; that Britain would continue to pay a devaluation premium keeping interest rates relatively higher than in the eurozone with negative effects on manufacturing and employment; that similar rules on public spending and deficits would be applied irrespective of euro membership, and public sector investment depended on stability and progressive taxation policies on which most EU countries had a better track record than the UK; and that arguments about the accountability and control of the European Central Bank could, as was the case with other questions, best be pressed successfully from the inside. General Council members argued that the EU’s social agenda was its best selling point.

The TUC has participated in discussions in the ETUC about ways of improving the operation of the ECB and of countering deflationary interpretations of the Stability and Growth Pact. The ETUC Executive Committee are to discuss the issues at their meeting in October. Related issues are also being discussed in the Working Group on Economic Governance of the Convention on the Future of Europe.

6.4 Institutional developments

The General Council have followed closely the institutional developments in the EU and have campaigned with the ETUC for workers’ rights. The TUC took part in two ETUC mobilisations around the EU Summits in Laeken, Belgium, in December and Barcelona, Spain, in March. There were over 80,000 present at the demonstration in Laeken, where the TUC delegation was led by the general secretary and included Pat Hawkes from the General Council, and more than 100,000 in Barcelona, where the TUC delegation was led by the President.

Laeken European Council

The European Council on 14-15 December adopted the Laeken Declaration on the future of the European Union. It set out the proceedings and key objectives of the next round of Treaty reforms. These reforms aim to make the EU more democratic, transparent, efficient and stronger on the world stage and must be completed in time for the expected ten new EU member states to take part in the June 2004 European Parliament elections. The Council decided on the establishment of a Convention with former French President, Valery Giscard d’Estaing as President. The social partners also handed over a joint statement on the future of the social dialogue to the Belgian Presidency at the Laeken Council (see below).

Convention of the Future of Europe

The General Council, in October, made a submission to the House of Commons European Scrutiny Committee who were enquiring about how the debate on the Future of Europe should be conducted. This drew, in particular, on the Statement to the 2001 Congress and supported the establishment of a Convention, such as the one that shaped the EU Charter of fundamental rights, to conduct a wide-ranging debate involving the social partners in particular. In January the general secretary addressed a special conference on the future of Europe in Stockholm, organised by the three Swedish trade union confederations.

The work of the 105-member Convention started on 28 February and is due to be completed in May 2003. Members of the Convention are drawn from the European Parliament, the Commission, Member State governments and parliaments and the three countries holding the EU Presidency during the period. The UK Government representative is Peter Hain, Minister for Europe, who has discussed the issues on a number of occasions with General Council representatives. In addition, observers including a number from the Economic and Social Committee and the social partners have been appointed. The ETUC’s observer is General Secretary, Emilio Gabaglio. In his first intervention in the Convention, he stressed the role of the social partners as co-regulators (in the Social Chapter) and the need for Treaty reform to facilitate the development of a European system of industrial relations. Other priority issues are outlined in the General Council Statement, above.

Six Convention working groups have been set up covering the principle of subsidiarity, the inclusion of the charter of rights, the legal personality of the EU, the role of national parliaments, competences and economic governance. These groups are due to report in October/November. In the meantime the ETUC has set up its own working group on the future of Europe and is drafting a resolution, setting out the ETUC’s position, to be adopted at the October ETUC Executive Committee. At its June Executive, the ETUC adopted a resolution on the social situation in Europe, which stressed the need for the European Convention to give fresh impetus to the European project, with full recognition of the social model and citizens’ rights. Meetings between the Convention’s officers and civil society organisations and young people have also been organised.

Seville European Council

The main subject dealt with by the Seville European Council on 21-22 June was EU policy on asylum and immigration, which is reported below. The Council also prepared the EU position for the Johannesburg World Summit on Sustainable Development in September and heard a report from the President of the European Convention on the future of Europe. The Council was preceded by a well-supported general strike on 20 June called by the Spanish affiliates of the ETUC, UGT and CC.OO. The ETUC General Secretary took part in the demonstration in Seville and the TUC General Secretary wrote to the Spanish unions on behalf of the General Council expressing the TUC’s full support for their action in defence of workers’ rights. The Spanish unions were particularly angry that the Spanish Government had used its Presidency period to introduce measures cutting unemployment benefits and making it easier to hire and fire workers. This was seen as an attack on the Lisbon consensus for maintaining social progress while engaging in economic reform.

6.5 Employment

National employment action plans

The European Commission, in its recommendation to the Council on the implementation of the European Employment Strategy (EES), asked the UK to take a number of actions in late 2001. It called on the Government to 'further foster social partnership at the national level to improve policy implementation and development. In particular, efforts should be aimed at improving productivity and skills, and the modernisation of working life'. The Commission’s recommendations also urged UK action to strengthen efforts to reduce the gender pay gap, to reinforce active labour market policies for the adult unemployed before the 12 month point and to reinforce current efforts to encourage and develop work-based training to address skill gaps and low levels of basic skills.

The UK social partners were consulted over elements of the UK employment action plan 2002, drawn up on the basis of the European guidelines. The main procedural problem remained the lack of institutional arrangements in the UK between the social partners on the one side and the Government on the other side to take all the various elements of the employment guidelines process forward. However, the UK plan did record a number of areas of social partner involvement, including in the development of a model programme to help small employers adopt age-diverse employment policies; continued involvement in the Learning and Skills Council, the National Council for Education and Training Targets and the Skills Task Force. The social partners were also involved in the Regional Development Agencies, continuing work on the Productivity Challenge, a range of work-life balance programmes and the Teleworking Working Group with the Government.

The Employment Guidelines for 2002 called on the Member States to set mid-term targets by 2005, to reach an overall employment rate of 67 per cent and an employment rate of 57 per cent for women. Targets by 2010 are already set at an overall rate of 70 per cent and a rate for women of 60 per cent and an employment rate among older persons of 50 per cent. The whole EES is being reviewed in 2002, five years after its launch at the Luxembourg Jobs Summit in November 1997. Member State evaluation studies are being undertaken and the Commission is conducting an aggregate assessment of labour market performances at EU level. The ETUC, in its submission to the review, pointed out that the EES has become a very important EU process, which has contributed to the ten million new jobs that have been created since 1997 (a record better than that of the USA). The ETUC would prefer the EES to be a broader employment strategy, with a direct link to the economic policy mix. However, without any weakening of the full employment commitment from Lisbon, the ETUC agreed with the Barcelona Spring Council that the Guidelines should be simplified.

Barcelona European Council

The Barcelona European Council on 15-16 March discussed the economic, social and environmental situation in the EU, in line with the Lisbon process. In the run-up to the Summit, a co-ordinated approach was adopted by the British, Italian and Spanish governments, pressurising for faster economic reform and liberalisation. The British and Italian Prime Ministers signed a joint statement on labour market flexibility in Rome on 15 February in relation to the Barcelona Summit. The statement sent out the message that employment regulation at the European level was finished as far as Britain and Italy were concerned. This caused outrage among the Italian unions, in the ETUC and in the General Council, who discussed this in February. The general secretary brought their strong concerns to the attention of the Prime Minister.

In the event, the Barcelona European Council did not follow the UK/Italian/Spanish line. Energy liberalisation measures were extended to business users as expected but, importantly, the Conclusions of the Council stressed the importance of the European social model - based on good economic performance, a high level of social protection and social dialogue. The Council considered 'the Social Agenda agreed at Nice to be an important vehicle for re-inforcing the European social model' and 'the Lisbon goals can only be brought about by balanced efforts on both economic and social fronts'. For the Council, this included increasing the involvement of workers in changes affecting them. The social partners were invited to find ways of managing corporate restructuring through dialogue and a preventive approach. The Council also called for enhancing the qualitative aspects of work, especially the health and safety dimension; welcomed the social partners’ adoption of a framework for action on lifelong development of competence and qualifications and called for the re-enforcing of the social partners’ role in the Employment Strategy. There were also positive statements in the Conclusions on the quality of public services and the promotion of skills and mobility.

In spite of these positive messages coming out of the Barcelona Summit, the Italian Government persisted in its legislative changes to Article 18 of the Worker’s Statute, thereby provoking a general strike by the three Italian trade union confederations, CGIL, CISL and UIL on 16 April. This well-supported strike was also backed by the ETUC and its affiliates, including the TUC. The TUC General Secretary held a meeting with the Italian Ambassador in the UK to express support for the Italian unions and their action against government plans to remove workers’ protections against unfair and arbitrary dismissal. In a statement, the general secretary said: 'Claims by governments that these safeguards have to be scrapped because of EU requirements is both intolerable and untrue. We call on European Governments and Institutions to confirm that the social model, by which European workers set great store, demands an entirely different approach - on both substance and form - based on safeguarding rights and consultations with both sides of industry'.

Macroeconomic dialogue

The macroeconomic dialogue, involving the social partners and the Council, Commission and the European Central Bank met in December and in May, under the Belgian and Spanish Presidencies, respectively. Both meetings were preceded by meetings at the technical level. The ETUC expressed its concern at the deterioration in the economic situation at the meeting in December and emphasised the need to restore confidence.

At the meeting in May the ETUC expressed its continuing concern regarding recovery prospects, as so much seemed to depend on the US economy, which was beset with major imbalances. It was important that the EU had its own economic ‘starter motor’. Also, it was essential that decisions were taken, especially on the reform of labour markets, through social dialogue and negotiation.

6.6 European Social Dialogue

The development of an EU industrial relations area

The ETUC Executive Committee decided last year to review developments regarding wage increases every year and developments on qualitative aspects of work every two years. In future the candidate countries to the EU would be invited to take part in the evaluation. Accordingly, in December the ETUC Executive adopted the annual report and resolution on the co-ordination of collective bargaining. The resolution concluded that a large number of countries were close to the ETUC Guideline on collective bargaining (a flexible formula with wage increases to equal the sum of inflation plus productivity). Analysis showed that in almost no country was there a loss of purchasing power. On qualitative aspects (equal pay, low pay, training, working time reduction) the data being collected was still insufficient as yet to show exactly how these were contributing to the Guideline. The resolution called for the use of available margins to reduce the pay gap between women and men, increase low wages and improve access to lifelong learning.

The Committee for the Co-ordination of Collective Bargaining also discussed the building of a European industrial relations area. Professor Brian Bercusson of Kings College made a presentation, looking at the Charter of Fundamental rights, the EU social dialogue, the co-ordination of collective bargaining established so far and the relationship between the European Employment Strategy and the social dialogue. The committee will organise further discussions in the run-up to the ETUC Congress in May 2003. The committee took note of developments in the ETUC Industry Federations and in the Doorn Group (Germany, Luxembourg, Belgium, Netherlands) of trade unions, where co-ordination of bargaining is now in its fifth year. The European Trade Union Institute is about to publish a report on the Europeanisation of industrial relations in a global perspective. Preliminary findings in the report conclude that the globalisation process has led to a convergence of challenges to national industrial relations systems; while the national sectoral level of collective bargaining remains dominant in the EU, there is a shift towards decentralisation and at the same time an increase in the importance of the European level.

Social Dialogue Committee

The Social Dialogue Committee and its working groups have covered a wide range of social policy, macroeconomic and employment issues during the year. A major initiative for the renewal of the European social dialogue came with the adoption of the Joint contribution by the social partners to the Laeken European Council in December. This has formed the basis for the Commission communication on The European social dialogue, a force for innovation and change, adopted in June. As a preparation for this communication, the Commission established a High-Level group on industrial relations and change, which reported in February. This renewal and re-organisation of the social dialogue comes ten years on from the 31 October 1991 social agreement between the social partners. This was incorporated in Articles 138 and 139 of the Social Chapter of the Treaty, marking an essential step forward in the development of the European social dialogue and an industrial relations system.

The social partners, in drawing up the joint contribution, noted the debate on the future of Europe and its governance, the future enlargement of the EU, the completion of economic and monetary union and the co-ordination of economic, employment and social policies. There was already a specific role in European governance and this needed to be enhanced. In essence the joint contribution made three main proposals. First, the social partners wished their existing role as co-regulators under the Social Chapter to continue and be further developed. Second, the social partners wanted to see established a tripartite Concertation committee for growth and employment together with the European public authorities, to replace the Standing Committee on Employment which was not working in a satisfactory manner. Also, the social partner role in the Luxembourg process (employment strategy), the Cologne process (macroeconomic dialogue) and the Cardiff process on structural reform required greater clarity. At the Lisbon Summit the Member States had brought together the whole approach to economic, structural and employment initiatives. This more co-ordinated approach is dealt with in an annual Spring European Council, now to be preceded by a Social Dialogue Summit. Third, the social partners proposed developing a joint work programme for a more autonomous social dialogue to be presented under the Danish Presidency in the second half of 2002. This would include proposals drawn up by the Commission and requiring consultation with the social partners under Article 138 of the Treaty. In addition, the social partners also wished to commit themselves to drawing up their own joint work programme, which would be built on a wide range of instruments. The social partners recognised the need to foster the development of strong and autonomous trade union and employer organisations in the candidate countries to the EU, capable of engaging fully in the European social dialogue. In a preliminary development, representatives from the candidate country social partner organisations attended one meeting of the Social Dialogue Committee during the year.

The Commission communication on the European social dialogue integrated the social partners’ proposals and further developed other aspects. One of these, the sectoral social dialogue, could not be easily dealt with in the social partners’ joint contribution to Laeken, as UNICE, the main employers’ organisation, does not have a sectoral dimension. In its communication, the Commission noted that 27 sectoral social dialogue committees now existed and that it wished to promote this successful development further. The Commission saw the social partners as having a vital role in the management of change and democratic governance of the EU, as well as in implementation and monitoring, especially of agreements negotiated by the social partners themselves, using techniques based on the open method of co-ordination developed by the Member States.

Lifelong learning

The Social Dialogue Ad Hoc working group continued its work on identifying ways of promoting access to lifelong learning and developing skills. After a period of 14 months the group presented its proposal for A Framework of actions for the lifelong development of skills and competencies to the Social Dialogue Committee in February. The ETUC Executive endorsed the framework in March. The framework identifies four priorities: identification and anticipation of competencies and qualifications; recognition and validation of competencies and qualifications; information, support and guidance; and resources. The member organisations of the signatory parties are required to promote the framework at all appropriate levels, taking account of national practices. The framework also involves a follow-up, with annual reports for three years, followed by an evaluation of the impact on both companies and workers.

The TUC general secretary was a member of the High Level Task Force on Skills and Mobility, launched in February 2001. The Task Force reported in December and the Commission took into account its recommendations in the Action plan for skills and mobility submitted to the Barcelona Spring Council. Two of the specific recommendations made by the Task Force were adopted by the Council: a European health insurance card to replace the current paper forms needed for health treatment in another Member State; and a one-stop European job mobility information web site.

6.7 Democratisation of the economy

The TUC has continued to be represented on the ETUC’s Democratisation of the Economy Working Group. During the year, this has focussed on a number of new developments.

The Regulation and Directive which permitted the establishment of the European Company completed their passage, and were formally adopted by the Employment and Social Policy Council in October. In January, a seminar was organised by the ETUC on the European Company Statute, to discuss issues which might come up during transposition of the directive on workers involvement, as well as measures which might need to be taken in order to prepare for negotiations on the establishment of European Companies. Progress towards transposition was reported to be slow in Member States, which have three years to complete the process.

Many members of the Working Group also took part on a seminar on EU finance for projects relating to employee information, consultation and participation which was organised jointly by ETUCO and the ETUI in February.

Corporate restructuring

Following the publication of a Commission consultation document on corporate restructuring, the ETUC asked for comments from affiliated organisations. The General Council’s response highlighted the role of unions and information and consultation. It pointed to the need for strengthening existing rights, and said that the Commission appeared to accept uncritically that restructuring was beneficial - a view not borne out by objective research.

The ETUC Executive Committee adopted a Resolution on the first phase consultation at their meeting in March. They called for urgent Community action in this area, involving the social partners, the Commission and the Council, as well as public policy makers. Consultation should base itself on the work of the High Level Group on industrial change. They also called for a Directive on annual reports by companies on economic, technological and social changes, as well as for a range of Community instruments to ensure that decisions regarding corporate restructuring were based on long-term perspectives and managed in a socially acceptable manner. Corporate restructuring was one element of a wider European approach including the role of the European Employment Strategy and the co-ordination of economic policies of Member States. Although the ETUC felt that the Commission and Member States should accept their responsibilities, European sectoral dialogue should address the issues concerning company restructuring in the specific sectors, including in the public sector. Legislative measures were also necessary, including codification of the information and consultation provisions set out in the different European Directives (using the ‘best practice’ provisions of the European Company Stature Directive as a benchmark), revision of the European Works Council Directive, a Directive or a European framework agreement on the obligation for enterprises to produce an annual report on changes affecting employment, working conditions and the environment; development of the European Monitoring Centre for Change (EMCC); enhancing the role of the social partners at the national level in the actions of the structural Funds related to changes and re-training; revision of Regulation 4064/89 on the rights of worker representatives to initiate proceedings with the Commission and/or the competent national authorities concerning concentrations; establishing a right of access to vocational training; and reinforcing European and national sanctions in the event of non-compliance with the rules concerning the prior information and consultation of workers.

Information and consultation

This year finally saw the adoption of the Directive on employee information and consultation at national level following a sustained campaign by the TUC and ETUC through all avenues in the EU institutional set-up. A number of amendments to the Council common position were supported by the European Parliament in October, but a crucial amendment strengthening sanctions for non-compliance was not supported by enough MEPs to be adopted.

However, it was clear that the Council was not prepared to accept the amendments put forward, so that the matter would be put into the conciliation procedure. The Commission, following discussions with both Council and Parliament representatives, put forward a compromise which reduced the potential transitional period for smaller companies to a total of six years. It also included some minor changes to the recitals, and included a joint statement referring to certain ECJ judgements, which is seen as emphasising the need for mechanisms to elect employee representatives.

The compromise was approved at a ‘trialogue’, or meeting between representatives of the three institutions. This approval was welcomed at the Laeken European Council, and then adopted by the Conciliation Committee in December. Following ratification by Parliament and Council, the directive was finally adopted by the Council on 18 February and published in the Official Journal on 23 March - which is the formal date of entering into force. Member States will have three years from that date for transposition into national laws.

The general secretary said of the Conciliation Committee’s decision in December: 'This measure is most welcome. The Information and Consultation Directive potentially opens the door on a whole new era in UK employment relations.' Issues relating to national implementation of the Directive are covered in chapter one.

European Works Councils

Across Europe, European Works Councils have been dealing with widespread company restructuring. The ETUC held a major seminar in June aimed at informing unions about means for EWCs to intervene in restructuring, which was attended by representatives from a number of TUC affiliates.

The report of the EWC project carried out by the TUC in collaboration with trade union partners from France, Netherlands and Spain was published in three languages by the CC.OO Catalunya, entitled ‘European Works Councils - cases of good practice’. This was followed by a seminar devoted specifically to the subject of EWCs and restructuring, which took place in London in May, organised by the same partners. A report based on the discussions between EWC members at that seminar is in preparation, and will be published by the TUC in November 2002.

Support continues to be provided for a number of EWCs. The TUC co-ordinates the UK unions in Vivendi and the fourth national forum for Vivendi unions was held in London in June. Support was also given to the P&O EWC, who considered launching the first complaint under the UK regulations (although this was later withdrawn for practical and technical reasons). Assistance was also provided to the Vinci unions in determining UK representation on a new EWC; to the Kodak EWC, by providing an advisor; and to unions in redrafting the EWC agreement in packaging company BPI.

Takeover bids directive

In September, following Parliament’s rejection last July of a draft directive on takeover bids, the Commission set up a High-Level Group of company law experts to advise on a new proposal. The ETUC was consulted and sent a written contribution reiterating the need for both information and consultation rights on the conditions of the bid before decision is taken. The group’s mandate was to examine three key issues including a level-playing field for shareholders; the definition of the equitable price to be paid in the case of a mandatory bid; and the introduction of a squeeze-out procedure. The final recommendations were published in January and were welcomed by Internal Market Commissioner Bolkestein. One of the key recommendations is to scrap defensive measures such as golden shares that allow minority shareholders to block takeovers. The protection of employees’ rights in the context of a takeover bid was only very briefly addressed. While employment and social issues would not in any case justify defensive measures by the board, the group considered that workers’ information rights were already well-covered in the previous proposed directive. The group considered that consultation rights were, and should be, addressed by specific legislation such as the information and consultation and European works council directives. At the time of writing this report the new proposal for a directive on takeover bids was still pending.

The same high-level group is to draft a second report in the course of 2002 making recommendations on broader issues for the development of EU company law. The group will examine best practice developed in member states and the US and consider a range of issues including the creation and functioning of companies and groups of companies, co-operatives and mutual enterprises (including corporate governance); shareholders’ rights; corporate restructuring and mobility; and the possibility for new legal forms (for instance a European Private Company).

6.8 Social policy

European Social Agenda

The European Social Agenda, approved by the Nice European Council in December 2000, identified a number of priorities linked into the Lisbon strategy to be pursued over five years: more and better jobs; anticipating change; fighting poverty and exclusion; modernising social protection; promoting gender equality and strengthening the social aspects of enlargement. In its assessment of the implementation on the Social Agenda, in February, the Commission concluded that it was on track in terms of concrete actions.

A series of important directives under the Social Agenda have been adopted during the year, including the Information and Consultation Directive, Working Time in Road Transport Directive, the Physical Agents-Vibrations Directive and the revision of the Directive on Equal Treatment between Women and Men (including requirements on equality plans and action against sexual harassment). Other measures such as the health and safety directives on noise and asbestos and the public procurement directives are yet to be agreed. The Commission adopted a draft directive on working conditions for temporary workers, following the breakdown in the social partner negotiations in 2001. In addition a number of Commission consultations of the social partners have begun on the social aspects of company restructuring, on the protection of workers’ personal data and on the transferability of supplementary (occupational) pensions. An earlier consultation on the modernising of employment relations has led to a social partner agreement at European level on telework (see below).

Linked to the work on the quality of jobs arising from the Lisbon strategy, the Commission has also adopted a communication: Adapting to change in work and society: a new Community strategy on health and safety at work 2002-2006. This new strategy looks at new risks such as repetitive strain injury and stress. It announces the intention to open consultations with the social partners on stress and its effects on health and safety at work. The European observatory on industrial restructuring has been established as the European Monitoring Centre on Change, at the European Foundation for the Improvement of Living and Working Conditions, based in Dublin.

Consultation of the social partners and others on the Green Paper on Corporate Social Responsibility (CSR) led to the adoption in July of a Commission communication setting out a framework for the promotion of CSR based on European values. The communication proposed the setting up an EU-funded multi-stakeholder Forum. The ETUC, for its part, has called for the development of CSR within a legislative and contractual framework and is opposed to its development as an exclusively voluntary exercise driven by companies’ public relations considerations. As a priority, both the ETUC and the European Parliament are calling for mandatory social and environmental reporting alongside company annual financial reports.

Although the reform of pension systems remains the responsibility of the Member States, co-operation at the European Union level has increased, and the social partners have been involved through the Pensions Forum. The social partners are to be consulted, under the Social Chapter, on the transferability of pensions, especially at the European level. The kinds of issues likely to be considered will include the right to transfer between schemes, the sectoral dimension and a range of technical aspects, relating to the diverse nature of different schemes.

Temporary agency work

Following the breakdown of the social partner negotiations over temporary agency work last year, the Commission began preparing a draft directive, which it finally adopted in March. While there are a number of important loopholes in the draft directive, major gains have also been made, on the basis of the failed social partner negotiations. These include clear references in the definitions to the comparable worker being in the user undertaking and the specific inclusion of pay in the definition of basic working and employment conditions. In addition, these conditions include work done by pregnant women and nursing mothers, children and young people, as well as action taken to combat discrimination, with both of these areas based on EU legislation.

The clause of the directive on non-discrimination/equal treatment locates this principle as applying to basic working and employment conditions in relation to the comparable worker in the user enterprise. However, additional derogations away from this principle have been introduced, compared with the partial agreement reached during the social partner negotiations. The ability of the social partners to derogate by collective agreement as long as an adequate level of protection is provided remains in place, but two new derogations have been introduced. One of these allows Member States to make an exemption from the equal treatment principle in the case of agency workers on permanent contracts who continue to be paid in between postings. A further derogation allows Member States not to apply the equal treatment principle for a waiting period of six weeks. As many agency workers work assignments or a series of assignments of less than six weeks with the same user enterprise they could be excluded from the core benefits of the directive.

The directive has become part of the battleground between a more US-style economic approach and one favoring the European social model. Both before and after the adoption of the directive by the Commission, the UK Government has been pressing for a waiting period of up to 18 months before the principle of equal treatment would apply. The ETUC has proposed a small number of priority amendments aimed at rebalancing the directive. These are being discussed with the European Parliament, which has co-decision powers over the directive, and the other European institutions. As with other directives in which European trade unions have an interest, the role of the ETUC Intergroup of MEPs, co-chaired by Stephen Hughes MEP (for the Socialist Group) and Bartho Pronk MEP (for the Christian Democrat Group), will be important. The first reading report is expected for the Parliament’s plenary session in October. Further work on the TUC campaign on agency workers is reported in chapter one.

Telework agreement

At the end of May, after eight months of negotiations, the social partners at European level concluded a draft agreement on telework. The negotiations arose from the formal consultation of the social partners on the modernisation of employment relations by the Commission, under Article 138 of the Social Chapter. The agreement, which was signed in July, is the first voluntary cross-sectoral agreement at European level, although ETUC industry federations have signed a number of sectoral agreements. These include two on telework in the retail and telecom sectors. While the telework agreement is not legally binding it does involve a procedure for implementation and follow-up. In language taken from the Treaty, the agreement imposes an obligation on the member organisations of the signatory parties, ETUC and employer organisations UNICE/UEAPME and CEEP, to implement the agreement in accordance with the national procedures and practices specific to management and labour. The General Council endorsed the agreement in June and discussions are taking place between the TUC, CBI and UK CEEP to determine how the agreement is to be implemented in the UK.

The agreement contains a broad definition of telework as a 'form of organising and/or performing work, using information technology, in the context of an employment contract/relationship, where work, which could also be performed at the employers premises, is carried out away from those premises on a regular basis'. The agreement lays out requirements on the voluntary character of telework, for the same employment conditions as workers at the employer’s premises and on the observation of data protection laws, respect for privacy of the teleworker, compliance with health and safety law, the use of equipment, work organisation, training and collective rights. Even in the small number of EU countries where telework agreements have already been reached, the EU agreement is seen as a substantial and innovative step forward.

Working time issues

The directive on truck drivers’ working time was finally adopted in February following conciliation negotiations between Parliament and Council. The directive was the last piece of legislation that remained outstanding from the 1997 Commission’s package on working time and the excluded sectors.

The Commission is due to start the review of the implementation of article 18(b)(i) of the directive on working time which allows individual opt-outs from the 48 hour average working week. The UK is the only Member State to have made an extensive use of this clause and the TUC has long argued for deleting this article to improve the effectiveness of the directive. Completion of the review is due by November 2003 on the basis of Commission’s recommendations to be accompanied by an appraisal report. The TUC and some MEPs have pressed the Commission to set in train the preparatory work for this report so that the deadline for completion of the review will be respected. This report will have to take into account the views of both sides of the industry.

Related to the above, the ETUC’s public services federation launched a campaign in February for the revision of the Working Time Directive, concentrating first on the health sector. The objectives of the campaign, which will run until 2004, are to ensure junior doctors are immediately covered by the provisions of the directive, either through negotiations or revised legislation, and to include ‘on-call duty’ in the definition of working time in line with a recent European court case. The ETUC considers this initiative could set the ground for further campaigning on working time across sectors, building on a European Parliament report adopted in February on the implementation of the Working Time Directive in Member States.

Public services

The Laeken European Council in December charged the Commission with drafting a regulatory framework on state aids in relation to undertakings entrusted with the provision of services of general interest. In June the Commission presented a progress report to the Seville Council with a view to presenting a framework to the Copenhagen Council next December. This partly meets the demand of the ETUC to introduce a framework directive on services of general economic interest (i.e. utilities). However an EU regulatory framework should go beyond the issue of state aids and competition rules to cover broader issues including the role of public services in maintaining and improving territorial and social cohesion, workers’ protection in case of transfer of public entities to the private sector and basic public services requirements. In parallel to this, a number of proposals relating to public services are still being discussed in Parliament and Council, while the directives on privatisation of the postal services and electricity were adopted.

Discussions are still underway on the Commission’s controversial proposal submitted in July 2000 for a Regulation introducing ‘controlled competition’ in all public passenger transport sectors apart from civil aviation - including urban and suburban transport. In November, Parliament adopted a number of amendments pressed for by the European transport workers’ federation which would significantly improve the current proposal with regards to public services requirements and workers’ rights.

In May the Internal Market Council reached political agreement on one of the two directives revising EU rules on public contract. This agreement fails to ensure that the criteria for public procurement procedures incorporate the respect of fair labour standards clause, including compliance with collective agreements, equal opportunities, non-discrimination and, in general, with the objectives of the Union’s social policy and sustainable development. The ETUC, and more particularly EPSU (its public services union), will continue pressing Council and Parliament to make the due changes to the proposed text in line with the ETUC resolution adopted in 1998. This campaign relates closely to TUC work on the development of a Fair Wages Resolution.

6.9 EU enlargement and migration

Progress towards enlargement continued, but the most difficult issues - largely associated with the Common Agricultural Policy, remained unresolved. Nevertheless, the incoming Danish presidency in July made it clear that progress towards EU enlargement would be a priority. In response, the ETUC and Danish unions issued a statement which emphasised that there were also other priorities. These should include strengthening the autonomy and the role of the social partners at all levels, the recognition of transnational trade union rights and the agreement of the social partners on the framework for autonomous negotiations at the European level.

The ETUC also pointed out, however, that the enlargement process should go beyond the ‘acquis communautaire’ to measures relating to the labour market and social dialogue. Particular attention would be needed for policies (and resources) aimed at boosting employment, especially in cross-border regions. This was consistent with the ETUC position that transitional periods on free movement of workers should be as flexible as possible. The statement called for a specific programme to support the candidate countries in implementing the health and safety directives, and the promotion of social dialogue and genuine social and industrial relations, with the development of strong and autonomous trade unions and employers’ organisations.

The TUC continued to take part in the work of the ETUC Enlargement Working Group, which met in Budapest in September 2001. Attention continues to be concentrated on developing the ability of affiliates in candidate countries to participate in social dialogue.

Taking into account the motion on enlargement remitted to the General Council at last year’s Congress, the concerns raised by maritime unions regarding social dumping in the ferry industry have been discussed. Initial discussions have taken place regarding the shortcomings of the Posted Workers Directive (which does not cover seafarers). Approaches have also been made to the UK Government regarding the draft Ferry Crewing Directive, which would oblige ferries operating between member states to observe the pay and conditions in force in one of those States. While the UK government is generally favourable to the Directive, it remains stalled in Council.

Migration conference

One of the issues arising from EU enlargement is that of free movement of workers. The possibility of the British labour market opening up to workers from Central and Eastern Europe coincided with renewed consideration by the Government of new initiatives aimed at permitting more access to workers from overseas. The TUC obtained support from the Commission to hold a major conference in December on Trade Unions and Migration in an Enlarged EU. Amongst the keynote speakers were Home Office Minister Lord Rooker, John Monks, ETUC Confederal Secretary Béatrice Hertogs and Nigeria Labour Congress President Adams Oshiomole. Contributors also came from the European Commission, Personnel Today, the Home Office and J Sainsbury, as well as from trade union organisations in the USA, Poland, Spain and Portugal.

Evidence discussed at the conference suggested that it was not likely that enlargement itself would contribute to a large-scale influx of migrant workers. However, it was clear that net inward migration to work in Britain, which had begun during the 90’s would continue, and that unions should plan to respond to this in organisation, and in the provision of services. Arising out of the discussions, the TUC, together with the Joint Council for the Welfare of Immigrants commissioned the Labour Research Department to prepare a guide on migrant workers, which was published in February. A series of meetings was held in the regions to promote the guide, and its message that unions should aim to organise amongst migrant workers. Meetings were held in Gloucester, Manchester and Norwich, with a further event scheduled for Newcastle in August. Further international aspects of the General Council’s work on migration are reported in chapter seven.

Free movement of workers

The TUC is represented on the Commission’s tripartite advisory committees on free movement of workers and co-ordination of social security schemes, which have been consulted on a number of proposals relating to the free movement of workers in the EU, including workers from non-EU countries.

A number of proposals updating and improving the right of EU workers to move and reside in another EU member states are still being discussed in Council, including ETUC-backed amendments to the regulation on free movement of workers. In June the Employment and Social Affairs Council reached a political agreement on a regulation to apply EU rules on the transferability of social security rights to non-EU migrants legally resident in the EU. After years of obstruction in Council, the regulation will ensure that 13 million workers have their social rights guaranteed and transferred when they move to another EU member state. The regulation will also be instrumental in the setting up of a common immigration policy. Another proposal aiming at extending the right to free movement to non-EU workers from three to six months is however still being blocked. The UK has decided not to take part in this proposal (see below).

Immigration and asylum

More than 20 legislative proposals relating to migration and asylum policy are on the Council’s table. The UK has not signed up to the chapter on immigration and asylum in the treaty (Home and Justice Affairs) but it can decide to opt in to proposed measures on an individual basis. So far the UK has agreed to all the proposals relating to asylum. These include a number of directives setting out common minimum standards in relation to the reception of asylum seekers (Council reached an agreement in April on this issue) and the procedures for granting and withdrawing refugee status. Also on the Council’s table is a proposed ‘Dublin 2’ Regulation laying down the criteria and mechanisms for determining which Member State is responsible for examining an application for asylum.

With regards to managed migration, the UK has for the most part decided to not opt in to the Commission’s proposals. They include directives on family reunification; on the status of third country nationals who are long-term residents in a member state; on conditions for third-country nationals’ right to travel in the EU; and on the conditions of entry and residence of non-EU nationals for the purpose of paid employment and self-employment. By contrast the UK has welcomed a number of separate but related proposals regarding illegal immigration, border controls, sanctions against trafficking in human beings and returns policy of ‘illegal’ migrants and failed asylum-seekers.

In the light of developments on establishing a Community immigration and asylum policy, the ETUC Executive Committee adopted a policy statement in October. They agreed with the Commission that zero-immigration policies had failed to reduce the number of migrants, while contributing to a migratory model which encouraged human trafficking. They expressed support for a common managed migration which should be tackled as part of the EU employment strategy and wider EU objectives on sustainable co-development. Social partners should be consulted to avoid a deterioration in working conditions and vocational training and increased competition between workers. Migration should also go hand in hand with migrant workers’ social and economic integration, of which trade union rights and equal treatment between all workers, including undocumented workers, should be central tenets. Regularisation programmes should be a priority. In relation to asylum, the ETUC condemned degrading practices such as detention and voucher schemes replacing cash benefits. The ETUC called for a humane asylum policy based on International conventions. Asylum-seekers should have access to fair and efficient legal procedures and to the labour market while their claims were being processed.

Following the electoral results of populist anti-migrant parties in a number of EU countries, the ETUC issued a critical declaration on the political and social situation in Europe ahead of the EU Summit in Seville where illegal immigration featured high on the agenda. The ETUC reiterated the need to not restrict immigration issues to security and border controls and trade union priorities in fighting against racism and xenophobia. Related issues are reported in chapter seven.

6.10 Network Europe

The TUC continues to maintain a high profile on European issues. Within the TUC European issues are handled by the Europe Monitoring Group, chaired by John Edmonds and including Tony Dubbins, Sir Ken Jackson, Bill Morris, Dave Prentis, Maureen Rooney and the general secretary.

The TUC holds monthly meetings of the Network Europe Contact Points (NECP), composed of representatives of affiliated unions, who monitor current developments. Stephen Hughes MEP and Claude Moraes MEP attend NECP meetings from time to time to brief the group on particular issues. During the year, the NECP also heard presentations by Richard Corbett MEP about the Convention on the Future of Europe, and Richard Howitt MEP, rapporteur on Corporate Social Responsibility. In June they received a report on the extensive work on health and safety the TUC is carrying out in the EU, which is reported in chapter nine.

The TUC Brussels Office maintains close contacts with the ETUC and its Industry Federations, the European Parliament (especially its Employment and Social Affairs Committee), the Commission and other European institutions. The office plays an active role on policy issues in ETUC committees and working groups and in the network of national trade union centre representatives in Brussels. It receives and assists a variety of trade union and other visitors. The TUC European Information Service, as one of the sectoral information relays established with the London Office of the European Commission, provides affiliates with access to European publications and databases. The TUC publishes a variety of European information, which is increasingly available on the TUC website.

European Trade Union Confederation

The ETUC has in affiliation 74 national trade union centres in 34 countries with a total membership of over 60 million. Also affiliated are 11 European Industry Federations, which cover all the main fields of activity. In addition, Eurocadres organises professional and managerial staff; Ferpa organises retired workers and the ITUCs co-ordinate the activities of 39 inter-regional trade union councils. During the year the ETUC Constitution Working Group continued with its review of the ETUC Constitution in order to make the organisation more efficient and more able to confront the challenges facing European trade unionism. The group, chaired by John Monks, will finalise its report in preparation for the ETUC Congress, to be held on 26-29 May 2003 in Prague.

Also in preparation for the Congress, nominations for the posts of General Secretary and the two Deputy General Secretaries are to be made by October. In March, the TUC General Secretary announced that he had been asked by a number of colleagues if he would be interested in standing for election as the next General Secretary of the ETUC. He indicated that he would be seeking the nomination.

Throughout the year the ETUC has continued to campaign for full employment, social rights, equal pay and against discrimination. Two very successful demonstrations were held in Brussels and in Barcelona, during the Laeken and Barcelona Summits. The successful ETUC campaign for the Information and Consultation directive came to fruition with the final adoption of the directive in Council in February. Throughout the year the ETUC has been actively engaged in discussions with the European employers’ organisations and the European Commission on how the social dialogue should be re-organised and renewed. Active co-ordination with the European Parliament has continued within the ETUC Intergroup.

The ETUC has worked closely with the ICFTU in promoting core labour standards worldwide, particularly in the context of the WTO, and has held meetings with representatives of the Commission which represents the EU as a whole in trade talks. The ETUC Executive Committee also considered issues arising from the 11 September attacks in the United States. That work is reported in chapter seven.

ETUC Institutes

UK trade unions have continued to participate in and benefit from the work of the ETUC Institutes: the European Trade Union Institute, the European Trade Union Technical Bureau for Health and Safety and the European Trade Union College. The Institutes report to the ETUC Steering Committee as a management board and, annually to the Executive. During the year, David Foden, senior researcher at the ETUI and formerly from the TUC, was appointed as a research manager at the European Foundation for the Improvement of Living and Working Conditions in Dublin.

Economic and Social Committee

TUC nominees have continued to play an active role in the EU Economic and Social Committee, which scrutinises all important EU draft legislation as well as acting on its own initiative.

It develops contacts with economic and social organisations around the world and, more particularly, in the applicant countries. George Wright is Vice-President of Group II, the Workers Group. British trade union representatives have acted as experts for the Workers Group, especially on health and safety at work, and Campbell Christie has been rapporteur for opinions on Economic and Social Cohesion.

The process of nominations of members for the next term of office of the Committee, starting in the autumn, is in train.

Professional and managerial staffs

The TUC continues to co-ordinate the interested unions covering professional and managerial staff (P&MS) which though their membership of the TUC are members of the ETUC’s P&MS organisation, Eurocadres.

In conjunction with Eurocadres, a survey of working time was conducted amongst P&MS unions, with the analysis and report prepared by the Labour Research Department. Almost 3,000 replies were returned, which showed full-time managers on 50.3 hours per week, teaching professionals on 49.8, and non-teaching professionals on 45.3 hours a week. 67.6 per cent of those answering stated that they also work at home, putting in on average a full extra day, 8.0 hours at home a week. Teaching professionals put in the longest number of hours at home, 10.3 hours a week, followed by managers, with 7.0 hours and non-teaching professionals, 5.3 hours. Full results from across Europe are to be collated by Eurocadres.

The Eurocadres President, Michel Rousselot, attended the House of Lords inquiry into mobility in the European labour market, and gave evidence on behalf of Eurocadres. His submission is included under the international section of the TUC web site.

Eurocadres is represented on the European Pensions Forum. This has now been established as a permanent body, with a brief to study developments in supplementary pensions. Three working parties have been established, covering acquisition and preservation of supplementary pension rights; transferability of supplementary pension rights; and cross-border membership. On the basis of work completed in the Forum, a first stage consultation on supplementary pensions has been launched under Article 138 of the Social Chapter.