Europe: A TUC General Council Statement, June 2006

TUC General Council statement, June 2006

Introduction

In the light of the successful trade union campaign against the Services Directive, and in the run up to the 2007 European Trade Union Confederation Congress, the TUC believes it is time to relaunch the campaign for a Social Europe. We believe that without a strong social dimension, the European Union will fail to provide its citizens with the security they need to face the challenges of globalisation. The French referendum on the draft Constitutional Treaty in particular illustrated that the people of Europe are not prepared to support a Europe designed for profit rather than people, and the TUC shares that concern.

Working people across Europe feel that the EU has not yet delivered the security they need. There are concerns that workers are being asked to become more flexible in the name of competitiveness with China and India, lose some of their public services in the name of liberalisation and forfeit some of their employment rights in the name of deregulation. Some workers are being asked to work longer, for less, on contracts that make them second class workers. In some countries they face unacceptably high levels of unemployment and unemployment across the EU has reached 8%. Migrant workers and agency workers can slip through the safety net of EU-wide labour standards to the detriment of all workers, and uneven implementation of European Directives - Working Time, Public Procurement, Posting of Workers - leaves workers in countries like Britain undefended against a race to the bottom. Delocalisation or offshoring has hit many communities across Europe hard, while other workers have to work too many hours to have a proper family life.

The TUC rejects the argument that we can or should compete with wages in China or India: the people of Europe would not accept the high social costs, and nor would the EU's economies benefit. Whilst we agree with the need for measures to increase productivity, raise skill levels and create quality jobs, myths about poor economic performance in Europe do not help - they obscure Germany's world-beating export record, Scandinavia's unique combination of egalitarianism and productivity, Britain's high levels of participation in the labour market and record of low unemployment and low inflation, or the high quality of life (compared with any other region of the world) across much of the EU. We take note of the way that trade unionists in Latin America look to the European Union as the model for a socially progressive union of nations, and that trade unionists around the world praise the European social model. The so-called American model of low social solidarity is no alternative.

The TUC believes that social justice and economic efficiency go together and that a strong social dimension is necessary to balance the internal market. Indeed, we assert that without social solidarity - strong public services, equality and fairness - economic growth will be unsustainable. The European social model is not a drain on the productivity and wealth of the European economy, but the potential source of its strength and resilience against natural disasters such as the New Orleans floods or economic pressures such as the Asian recession of the 1990s. We believe that Europe needs more public expenditure not less, stronger public services rather than more privatisation, stronger rights at work rather than a free for all, and action to stimulate more skills training and investment in R&D rather than leaving it to the market.

The European Union and the social dimension have delivered important rights for working people: equal pay for work of equal value; limits on working time and a host of other occupational hazards; rights when collective redundancies are threatened and rights to information and consultation; parental rights and protection from discrimination on a number of grounds, including gender, race, disability, sexual orientation, age and religion or belief. Initiatives like carbon emissions trading show that the EU still has the potential for innovation. And while it is now often taken for granted, the EU has delivered peace to a continent which was until recently riven with wars, and it has transformed Europe from a net exporter of people into a society which attracts migration from all over the world.

Trade unionists know that without our involvement, the EU will not disappear, but will be transformed into a business club following the American model. All the achievements set out in this document will be under threat, and all the threats and disappointments will be magnified. As global trade unions recognise, if we cannot establish decent work, equal opportunities, sustainable growth, quality public services and social solidarity in Europe, where can we?

We believe that the European trade union movement needs a clear and positive vision of the sort of Europe and world we want to see, so that trade unionists can understand what Europe can deliver for them in practical improvements in their lives and their communities. We therefore commit ourselves to the following charter of ambitions:

• we want a Europe which provides prosperity and decent work for its citizens through a single market in goods and services, balanced by a strong social dimension of positive rights at work and social justice;
• we want a Europe where unions have a strong voice on behalf of workers, and are able to play their full part as social partners in agreements with employers and in consultation with governments;
• we want a Europe characterised by strong public education, health and social services assisting all workers to fulfil their potential (and also delivering a safety net for vulnerable workers);
• we want a Europe where diversity is respected, where discrimination is challenged effectively, and where migrant workers are treated equally; and
• we want a Europe where economic growth is balanced by sustainability, and where climate change is tackled effectively through social dialogue and security of energy supplies is achieved through developing alternatives and a balanced energy policy.

Globalisation

European trade unions need to address two sides of globalisation: on the one hand, the impact on Europe of growing trade and competition with emerging economies; and on the other the impact of globalisation on world poverty.

At home, the TUC has consistently argued that some of the claims made about globalisation are over-stated. Compared with the US, for example, the EU has done well on trade in recent years with a far healthier trade balance. And the perceived growth in Europe's trade with economies like China obscures the accompanying decline in trade with other East Asian economies (in reality, trade with the far east has not increased - trade with China has replaced trade with other countries in that region). And contrary to the arguments of a range of outsourcing consultants, there has not been a flood of services jobs overseas but in some cases a net increase in the jobs most often described as ripe for offshoring such as call centre work, although that is small comfort to the people who have lost jobs as a result of delocalisation.

Instead of deregulating, deskilling and lowering wages and conditions, unions have argued for taking the high road to global competitiveness, with higher investment in research and development and in skills, and more childcare and other measures to increase workforce participation among vulnerable groups. We have argued for measures like the EU Globalisation Adjustment Fund to be strengthened to assist regions and sectors affected most by global competition, and we have made the case not for picking winners or protectionism, but for a strategic approach to intervening in key sectors of the economy to defend and support manufacturing and where it is appropriate to do so, to be prepared to take a strategic minority public stake in such enterprises; stronger rights for unions and other key stakeholders to challenge corporate strategy and decision-making and put forward alternative plans; and the need to create a level playing field of rights and protections. It is, sadly, still quicker, easier and cheaper to sack British workers than workers in some other EU member states. We have argued for a positive combination of flexibility and security, so that working people have the confidence to take the risk of changing jobs or losing an unsustainable job, safe in the knowledge that they will be protected by adequate social security safety nets, active labour market policies and a commitment to full employment.

And European unions have rightly also looked outwards, arguing the case for measures which would defend our colleagues in the global south against the forces of globalisation. Contrary to those who claim we are being protectionist, the European union movement's call for decent work and core labour standards to be applied in less developed countries is motivated by the desire to support workers in such countries and enable them to benefit from the export of the European social model - something that southern trade unionists have indeed demanded of us. The EU communication on decent work is a major step forward in persuading EU governments to build on the Generalised System of Preferences and the Cotonou agreement to ensure that core labour standards and a social dimension or social clause are built into EU free trade agreements with other countries, developments such as the ASEM and EU-Mercosur^[1] dialogues and the EU's negotiating stance for future world trade rounds. The same approach should apply to EU aid.

We believe that the EU can play a key role globally in balancing the influence of the USA on geopolitics, climate change, world poverty and so on. On a range of issues like the Middle East Peace Process and on Cuba and Latin America more generally, the EU can have a distinct and progressive approach to foreign policy which emphasises support for UN and other multilateral institutions, and is founded on social justice, human rights and democracy. In the EU's relations with its neighbours such as the Maghreb and Eastern Europe, we must insist on respect for working people, equality for women and for human rights and for social justice generally. Subject to satisfactory progress on labour standards and human rights, the TUC favours the integration of Turkey and the Balkan nations into the EU, and believes that closer links with the EuroMed area and Ukraine are important.

Workers' rights

The TUC believes that the European Union only gains the consent of its citizens to the extent that it provides not only a single market in goods and services, but a strong social dimension. And if we are to have a single market in goods and services there will also be a single labour market with a universal safety net of workers' rights, although in some countries rights can and should be secured over and above what can be provided for the EU as a whole. In particular, it is vital that the system of workers' rights in the EU does not leave some workers unprotected whether by virtue of their employment relationship or the sector of the economy to which they belong. We are particularly concerned that there should be equality and respect for every worker, regardless of gender, race, disability, age, sexual orientation, religion or belief, and that there should be equal treatment for workers regardless of their citizenship and residency rights. We support the free movement of labour around the EU. Migrant workers should suffer no detriment when they move to another country, and should have the same rights as the workers in the countries they move to. Competition between workers on the basis of wage levels or terms and conditions is counter-productive and only leads to strains in community relations. In particular, the tragedy at Peugeot makes it crystal clear that making it easier to sack workers in Britain than in other European countries reflects a downward spiral of competition which does Coventry and Britain no favours.

The TUC therefore believes that the social agenda is far from complete, and that many workers not currently covered should have the protections of Europe's social model extended to them. This would require a Temporary Agency Workers Directive, a revised Posted Workers Directive and a better definition of worker to extend employment rights to those on atypical contracts or in domestic work. A new agenda is needed on working time which includes abolishing the British opt out, resolving the on-call issue in a way which favours workers, and by promoting a family-friendly work-life balance. The European Works Council Directive needs to be strengthened to provide workers in transnational corporations with a greater influence over their employment. Collective rights in the event of redundancy should be matched by individual rights against arbitrary dismissal. And we are pleased that the German trade union movement is winning the argument for minimum wage protections.

We also believe that Europe needs to give much greater support and encouragement to the concept of collective bargaining and social dialogue, not least because collective bargaining offers a flexible way to implement workers' rights in the specific circumstance of different countries or enterprises. The EU needs to promote both collective bargaining and also effective relationships between governments and the social partners. In some cases, the possibility of EU legislation can act as an incentive to employers to enter into meaningful discussions with trade unions. Unions and workers need rights such as those set out in the European Charter of Fundamental Rights, which the TUC would like to see incorporated clearly and firmly into European law, including, for instance, the right to strike. European workers need the positive rights set out in the core conventions of the ILO^[2] - especially conventions 87 and 98 on freedom of association and freedom to bargain collectively. Corporations need to act responsibly and have regard to social needs and workers' alternatives.

The European economy

The TUC believes that Europe has a stronger economy than many commentators suggest, with some of the most productive economies in the world, and, overall, the biggest economic powerhouse on the planet. Scare stories about the growth of the Chinese economy, for instance, ignore the fact that, individually, Chinese people are still far, far poorer than Europeans, and that China's phenomenal growth rate is currently allowing it to overtake individual national economies in Europe consisting of far fewer people - it is nowhere near overtaking Europe as whole, despite being three times its size. But much more clearly needs to be done to keep the European economies competitive, to ensure sustainability, and to overcome unemployment. And Britain in particular needs to adopt the same positive approach to industrial strategy and procurement policies as the best of European economies. Rather than getting into a sterile debate about whether or not the UK is doing better or worse than other countries in Europe, we should recognise that we have enjoyed stronger growth and lower unemployment, but other countries have long term strength through their industrial capacity. We could learn lessons from abroad, especially by recognising where our industries are and can remain strong in future years, because they are based on high skills and high value. Strategic sectors identified in the TUC industrial strategy include defence, aerospace, motor cars and pharmaceuticals. With the right government support, we could also develop our environmental technology sector. This is not about 'picking winners': it is about making intelligent decisions concerning how the long-term strength of UK industry, and its economy, can be enhanced. However, by definition it also accepts that, whilst the market has strengths, it also has limits.

Europe needs to rediscover the benefits of macro-economic policies, taking action not just on the supply side (although we strongly support an increase in training provision) of the economy. The Stability and Growth Pact needs further reform - largely to give some meaning to the growth element of the pact - and needs to reflect the sensible policies adopted in Britain of investing over the economic cycle so that stability in times of growth is matched by growth in times of recession and economic slowdowns. The Stability and Growth Pact's failure to exclude productive investment to be excluded from debt ratios, for example, needs to be rectified. The UK record of reducing unemployment while keeping inflation under control is well worth emulating. And governments should not be afraid to spend money on investments and quality public services as the UK government has. We need in particular to protect the ethos of public service across Europe with new Directives on Services of General (and General Economic) Interest. The European Central Bank needs to have the objective of securing full employment, and needs in particular to abandon its obsession with countering inflation to the exclusion of jobs and growth which has led to tightening interest rates at the first sign of growth but a perversely relaxed attitude to signs of recession, particularly in manufacturing.

The ETUC needs to develop a stronger role in co-ordinating trade union economic policies, with the objective that comparative advantage within Europe should be based on upward pressure rather than, for example, reductions in wages or increased working time. Pensions are an extremely important challenge facing Europe, and recent decisions in the European Court of Justice suggesting that pensions are deferred wages could be enormously important to the trade union movement. And if we do not defend the European social model, employers will take advantage of the opportunity to ratchet down social rights and terms and conditions.

The organising challenge

Unions across Europe also need to address the organising challenge. In some countries, union density has increased over recent decades or stayed high, mostly in those countries where unions have a role in the unemployment benefit system. But in most other countries, and especially in Eastern Europe, membership has declined. One of the key strengths of the European social model internationally is its high level of union membership, and that sustains the involvement of the social partners in political life. So it is vitally important for the revitalisation of that model that union membership and organisation is built. The TUC initiated a debate on organising with its 2005 conference on Organising Across Europe and we welcome the ETUC's moves to build on that by developing an organising agenda and an organising network. The TUC will continue its pressure for the ETUC to develop this network, and will argue for and support the placing of the organising agenda at the heart of the European trade union movement. But much more needs to be done.

The ETUC could do a lot to promote an organising culture among its affiliates, learning the lessons from other continents, sharing experiences, providing training and research. Organisers from one country could be exchanged, as the TUC has begun to do with Italian, Polish and Portuguese trade unions, to help organise migrant workers. European structures like European Works Councils could be used better by unions to build organisation across national boundaries (not least in the third of corporations which could but do not yet have EWCs). And beyond the EU, European unions should be making global links (principally through their Global Union Federations) to ensure that companies which recognise unions in one country recognise unions in all the countries where they operate.

The democratic deficit

The European Union is, despite reforms over the years, still a club of governments, and the way in which a neo-liberal ideology has developed such weight within the European Commission demonstrates how out of touch it can be with the people of Europe. The TUC has supported largely symbolic reforms such as opening the Council of Ministers to public view, but the European Union needs to go much further in the direction of reform so that it reflects better the democratic principles on which the European social model is based (stronger social dialogue and collective bargaining provisions would be a step forward). The directly-elected European Parliament gained a lot of respect for the way that it amended the Services Directive and before that adopted a clear position on scrapping the British opt out from the Working Time Directive. But more needs to be done to reform the way that the Commission and the Council of Ministers make decisions. Last year, Congress recognised the results of the referenda in France and the Netherlands, and therefore rejected the then proposed EU Constitution, in part because of these concerns, but we should remain open to alternative solutions to the problem of democratic accountability and decision-making in the EU. In particular, we would welcome moves to restrict what amounts to a neo-liberal veto on progressive social proposals, which has become much stronger as the EU has expanded to a Union of 25 member states (and more to come).

A Charter for Action

Finally, the TUC believes that we will not achieve a stronger European social model without building a movement campaigning for it, bringing trade unionists, politicians and social movements together to fill the gaps in and keep updating our list of demands, and to press governments and employers to accept and embrace the social model. The trade union demonstrations against the Ports Services Directive and the Services Directive, culminating in a 50,000 strong demonstration in Strasbourg show that popular mobilisation can still be successful. And we need to export that stronger European social model to other countries whose trade unions and workers are crying out for decent work and a voice at their workplaces.

This statement has advanced a number of proposals for further work on the European social model. We believe that these need to be developed into a charter for action which European trade unionists can sign up to. That charter would include rights for all - the incorporation of the EU Fundamental Charter of Fundamental Rights into law, as well as:

• workplace and trade union rights for all - extending the social charter's current coverage to all workers, regardless of employment status and implementing the ILO's core labour conventions on freedom of association and freedom to bargain collectively;
• fairness and equality for all - treating every worker the same, regardless of gender, race, disability, sexual orientation, age and religion or belief, whether part-time or full-time, temporary or permanent, migrant or indigenous, employed or contracted;
• skills for all, with a right to lifelong learning and an expanded Globalisation Adjustment Fund for those whose jobs are threatened by globalisation;
• a work-life balance for all with stronger controls on the long hours culture and more family friendly policies like affordable childcare;
• security for all, with a decent safety net of social security, assistance to return to work and protections against arbitrary dismissal; and
• dignity for all, with a voice at work and security in retirement.

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[1] ASEM means the Asia-Europe Meetings (formal meetings between the governments of the EU and South East Asia) and Mercosur is is a trading zone between Brazil , Argentina , Uruguay , and Paraguay . Bolivia , Chile , Colombia , Ecuador , Peru and Venezuela have associate status.

[2] The ILO core conventions are 29 and 105 on forced labour, 138 and 182 on child labour, 100 and 111 on discrimination and 87 and 98 on freedom of association and collective bargaining. See http://www.ilo.org/public/english/standards/norm/index.htm for further details.