General Council Report - Chapter 3

chapter 3 the european dimension

• 3.1 Introduction
• 3.2 Economic and Monetary Union
• 3.4 Institutional developments
• 3.5 Employment
• 3.6 European Social Dialogue
• 3.7 Democratisation of the economy
• 3.8 Social policy
• 3.9 EU Enlargement and migration
• 3.10 Network Europe

3.1 Introduction

The General Council have continued to work for full UK participation in European Union political and economic processes, to promote an informed debate on the euro, and to campaign to ensure that the Government commits itself to co-operate wholeheartedly with its European partners in improving social and employment rights. They have engaged, within the European Trade Union Confederation, in European social dialogue on economic and social matters.

A major development this year was the political agreement reached by the Council of Ministers on a framework directive on the information and consultation of workers in national companies, following years of campaigning by the TUC and the whole European trade union movement. Decisions by the Nice Summit in December, which proclaimed the Charter of Fundamental Rights and adopted a European Social Agenda, were also significant advances. They set foundations for the debate on the Future of Europe launched in Nice which, with related issues linked to further EU enlargement, is now a key item on the European agenda.

3.2 Economic and Monetary Union

In line with the composite motion adopted by Congress last year, the General Council have continued to encourage an informed debate on Britain’s membership of the euro. They have discussed the issues regularly with the Government, particularly in the context of the damaging consequences for the UK of the high value of the pound in relation to the euro, and of their view that the debate on EMU is integral to the general approach to Europe, including the development of social policy and notably the issue of information and consultation of workers. They have given positive support to UK membership of the single European currency if the five economic tests set by the Chancellor in October 1997 are met and at an exchange rate that is sustainable. They noted the statement of the Prime Minister that the five tests would be assessed within two years of the General Election. The General Secretary has continued as a member of the Chancellor’s Standing Committee on the euro, and the TUC is also represented in the Treasury Business Advisory Group who exchange information about preparations by the Government and the private sector for possible euro entry.

The General Council reviewed the issues in July, when they adopted the Statement European Union - trade union priorities for the next term which

The British trade union Movement has been, and will continue to be, at the forefront of those bodies and institutions leading the way for British co-operation in the European Union. Our EU membership is the foundation for jobs, protections at work including health and safety, worker involvement, equal treatment and family friendly provisions in Britain.

The General Council, and Congress, have supported the Labour Government in its efforts to establish the UK as a full participant. They applauded its immediate acceptance of the Social Chapter following the 1997 election; they acknowledged its influential role in the introduction of an Employment Chapter in the Treaty at Amsterdam; and they have encouraged it in its policy of preparing for entry into the single currency, so as to give the British people the option of joining. The General Council believe that progress in these key areas of social, employment, economic and monetary policy should go hand in hand.

Single currency

For 12 EU countries, Economic and Monetary Union will be completed with the introduction of euro notes and coins on 1 January 2002. The euro Group is forging ahead in co-ordinating European economic policies, which will have lasting repercussions for the UK, whether we are members or not.

The General Council recognise that entry into the single currency is a pivotal issue facing the Government in its historic second full consecutive term of office. They note that it intends to assess the five tests set by the Chancellor of the Exchequer in October 1997 within two years, and that if the Government and Parliament agree to entry, their recommendation will be put to the British people in a referendum.

The General Council have consistently argued in addition that a sustainable exchange rate between the pound and the euro needs to be established by the time the currency is locked in. They are concerned at the 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 to impose interest rate increases and the Government to reduce public spending. At the same time, the relative strength of the pound against the euro is causing severe problems for British manufacturing and tourism and there has already been a loss of well over 100,000 jobs linked to currency volatility since the launch of the euro in an economy which, overall, has continued to grow. The need for a more secure and competitive alignment of the pound against the euro is 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. From its position on the sidelines, however, the UK is unlikely to be able to lead the debate on these points.

In line with the decision of Congress last year, 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. They will continue to press, at the same time, for a consolidation and expansion of the European Social Model.

Social Policy

On social policy, British workers have to thank Europe for recent legislative advances which have been made, for example on:

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

• Working time, including extension to those groups excluded from the original directive (transport workers and doctors in training), with outstanding proposals for road transport workers about to be agreed;

• Information and consultation, including the European Works Councils Directive, and proposals on involvement of workers in the European Company and information and consultation of workers in national companies about to be adopted as directives;

• Equal treatment for part-time and fixed term workers via framework agreements, with a forthcoming directive on equal treatment for temporary agency workers; rights to parental leave via a framework agreement;

• Equal opportunities with the Equal Pay and Equal Treatment Directives, and a revision to the latter soon to be adopted, dealing with sexual harassment, gender mainstreaming and reinforced protection for women returning to work after maternity leave; protection for pregnant women at work; reversal of the burden of proof in sex discrimination cases;

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

• Health and safety at work with a framework directive, a series of specific directives, with further action on noise, vibration and other physical hazards;

• Protection of young people at work, with the end of the UK opt-out in 2000.

The General Council are particularly pleased that agreement was reached in the Council in June on a framework directive on the information and consultation of workers in national companies, and they will be seeking to improve its provisions through action in the European Parliament. They can but denounce the negative attitude taken by the British Government in this matter. 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 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. This concern covers in particular the Working Time Directive and the three directives based on the social partner framework agreements covering parental leave, part-time work and fixed term contracts. Trade unions should not have to take the Government to the European Court of Justice to ensure the proper implementation of European social legislation, as in the case of parental leave, which involved legal action by the TUC, and in the BECTU case over paid holidays.

The General Council applaud advances in social dialogue at European level and have repeatedly called for equivalent action in the UK. They recognise that some progress has been achieved in involving the social partners in the drawing up of the National Action Plans for employment, and that the Government has recognised the value of fostering social dialogue in respect of telework, albeit because the objective is a voluntary rather than a binding agreement. Nevertheless, much remains to be done. The General Council again call on the Government to act to enhance social dialogue and social partnership at all levels, in particular 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 setting up of a High Level Task Force on Skills and Mobility of which the TUC General Secretary is 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.

They call for a comprehensive follow-up to the Social Policy Agenda agreed in Nice, which in particular characterises the common core values of the European social model by systems that offer a high level of social protection, by the importance of the social dialogue, and by services of general interest covering activities vital for social cohesion. In this connection, the General Council ask the Government to consult on the White Paper to be prepared for the Spring Employment European Council under the Spanish Presidency, and any ‘Ceccini’ document, as announced by the Chancellor in his Mansion House speech in June, with a view to ensuring that negative features of the US system - characterised by the worse inequality and literacy levels in the developed world - which the UK closely follows are not exported to the rest of Europe.

The Future of Europe debate

The debate on the Future of Europe in the run-up to the 2004 Intergovernmental Conference and further EU enlargement is the setting in which the issues will be considered in the next period. As a first step, the Government has introduced the European Communities (Amendment) Bill to enable the UK to ratify the Nice Treaty bringing forward the institutional reforms necessary for the enlargement of the EU to as many as 27 member states. The General Council support this. The General Council, and the ETUC, have stressed the need for the social acquis to apply throughout the enlarged Union and called for a wide-ranging debate on issues arising from enlargement. The agenda should aim at building an open and people-centred Union, including incorporation into the Treaties of the Charter of Fundamental Rights; maximising possibilities for free movement for people to match freedoms of movement for capital, goods and services; and 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 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 World Trade Organisation, and by multinational enterprises. The General Council believe that it is incumbent on the EU, which speaks with one voice on international trade, to continue to lead positively in this debate in line with the mandate agreed in October 1999 and to promote human rights worldwide.

The General Council believe that a robust case for our full involvement needs to be made consistently. They urge the Government to involve fully the social partners, community organisations and other elements of civil society, to promote understanding of European issues and combat the misinformation of the anti-Europeans.

3.4 Institutional developments

The General Council have followed closely institutional developments in the EU and have campaigned with the ETUC for the adoption of a Charter of Fundamental Rights, including economic and social rights, to be incorporated into the Treaties. The focus of the campaign in 2000 was the Nice Summit in December, when some 80,000 trade unionists participated in a demonstration organised by the ETUC.

Nice European Council and Intergovernmental Conference

The European Council and Intergovernmental Conference (IGC) on 7-9 December 2000 adopted the Treaty of Nice, which is intended to prepare the European Union for its enlargement to encompass the countries of Central and Eastern Europe as well as Cyprus and Malta. The IGC dealt primarily with constitutional issues which had not been resolved by the Amsterdam Treaty: the size and composition of the European Commission, the weighting of votes in the Council, and the extension of Qualified Majority Voting.

It was agreed, in particular, that the fight against social exclusion and the modernisation of social protection systems should come under QMV and co-decision with the Parliament. The Council may, on a proposal from the Commission and after consulting the Parliament, unanimously decide to move to co-decision and QMV on the protection of workers where their employment contract is terminated, on the representation and collective defence of the interests of workers and employers, including co-determination, and on conditions of employment for third country nationals legally residing in the EU. Social security and the social protection of workers remain subject to unanimity.

Key workers’ rights in the EU charter of fundamental rights

Article 12: Freedom of assembly and of association

1. Everyone has the right to freedom of peaceful assembly and to freedom of association at all levels, in particular in political, trade union and civic matters, which implies the right of everyone to form and to join trade unions for the protection of his or her interests.

Article 21: Non-discrimination

1. Any discrimination based on any ground such as sex, race, colour, ethnic or social origin, genetic features, language, religion or belief, political or any other opinion, membership of a national minority, property, birth, disability, age or sexual orientation shall be prohibited.

2. Within the scope of application of the Treaty establishing the European Community and of the Treaty on European Union, and without prejudice to the special provisions of those Treaties, any discrimination on grounds of nationality shall be prohibited.

Article 23: Equality between men and women

Equality between men and women must be ensured in all areas, including employment, work and pay. The principle of equality shall not prevent the maintenance or adoption of measures providing for specific advantages in favour of the under-represented sex.

Article 27: w orkers’ rights to information and consultation within the undertaking

Workers or their representatives must, at the appropriate levels, be guaranteed information and consultation in good time in the cases and under the conditions provided for by Community law and national laws and practices.

Article 28: Right of collective bargaining and action

Workers and employers, or their respective organisations, have, in accordance with Community law and national laws and practices, the right to negotiate and conclude collective agreements at the appropriate levels and, in cases of conflicts of interest, to take collective action to defend their interests, including strike action.

Article 30: Protection in the event of unjustified dismissal

Every worker has the right to protection against unjustified dismissal, in accordance with Community law and national laws and practices.

Article 31: Fair and just working conditions

1. Every worker has the right to working conditions which respect his or her health, safety and dignity.

2. Every worker has the right to limitation of maximum working hours, to daily and weekly rest periods and to an annual period of paid leave.

EU Charter of Fundamental Rights

The Nice Council also adopted by joint proclamation the Charter of Fundamental Rights and approved the European Social Agenda. The issue of whether to incorporate the Charter into the Treaty was left to the forthcoming debate on the Future of the Union, which is to culminate in a further IGC in 2004.

The Charter of Fundamental Rights sets out, for the first time, in a single text, the civil, political, economic and social rights of European citizens and all persons resident in the EU. Most of these rights are based on the fundamental rights and freedoms recognised by the European Convention on Human Rights, the constitutional traditions of the EU Member States, the Council of Europe’s Social Charter, the Community Charter of Fundamental Social Rights of Workers and other international conventions to which the EU or its Member States are parties.

Although not entirely satisfied with the final text, the ETUC Executive Committee in October called for the Charter to be made legally binding, while continuing to campaign for an explicit recognition in the Treaty of cross border trade union rights. The Charter remains a text open to further improvements and it can have an impact in its current form as a political declaration. The Commission and Parliament have both made it clear that 'they intend to apply the Charter in full' and references to the Charter can already be found in Commission legislative proposals and European Parliament opinions. The European Court of Justice has declared that it will uphold the rights contained in the Charter, as it does with the Community Charter of workers’ rights. In a case brought and won by BECTU before the Court regarding the UK regulations on annual leave based on the Working Time Directive, the Advocate General’s opinion argued that the UK transposition was in breach of not only the Directive but also of workers’ fundamental right to paid annual leave as provided for by the EU Charter.

The ETUC will now aim to ensure that EU leaders, at the European Council in December, agree to incorporate the issue of the legal status of the charter in the Laeken Declaration on the Future of Europe. The ETUC Executive Committee, in June, agreed to organise a demonstration in Brussels on 13 December as part of the continuing campaign.

Gothenburg European Council

The Gothenburg European Council on 15-16 June focused on the Future of Europe and enlargement and sustainable development. The Nice IGC left four items for the Future of Europe debate, launched in March, and in particular for the agenda of the 2004 IGC: the demarcation of powers between the EU and the Member States, the status of the Charter of Fundamental Rights, simplification of the European treaties, and the role of national parliaments in the architecture of Europe. The Council envisaged the completion of negotiations on enlargement by the end of 2002, with the objective of the participation of the candidate countries in the European Parliament elections of 2004, as members.

Reflections on how to structure the preparatory phase for the 2004 IGC, with the possible creation of an open forum, including social partner participation, will continue until the Laeken Council in December under the Belgian Presidency. The ETUC held a seminar on the issues in June, to be followed by a major conference in September and a discussion at the October Executive Committee.

The Gothenburg Council also added a third, environmental dimension to the Lisbon strategy of economic and social renewal. These three elements will be discussed at the regular Spring European Councils, with the environmental element encompassing climate change; ensuring sustainable transport; addressing threats to public health; and managing natural resources more responsibly.

3.5 Employment

National employment action plans

The Employment Guidelines for 2001 called on the Member States to set targets in order to reach the goals agreed in Lisbon of an employment rate of 70 per cent by 2010, and over 60 per cent for women. In line with the invitation to the social partners from the Feira European Council to play a more prominent role in implementing and monitoring the guidelines which depend on them, the Commission changed substantially the adaptability pillar. The three guidelines in this pillar include a major contribution from the social partners, who are invited to negotiate and implement at all appropriate levels agreements to modernise the organisation of work; to report annually on which aspects of the modernisation of work have been covered by negotiations, the implementation of these and their impact; and to conclude agreements, at all relevant levels where appropriate, on lifelong learning to facilitate adaptability and innovation, particularly in the field of information and communication technologies. Linked to the 2001 guidelines, is the Social Agenda adopted by the Nice Summit, with its consultation of the social partners on the modernisation and improvement of employment relations, including the best opportunities for collective bargaining.

The UK social partners were consulted over elements of the UK Employment Action Plan 2001, drawn up on the basis of the guidelines. The main procedural problem stemmed from the lack of institutional arrangements, between the social partners on the one side and between them and the Government on the other side, needed to take forward all the various elements of the employment guidelines process. However, the Plan noted the involvement of the TUC and affiliated unions in areas of substance, including the establishment of a joint steering group between the TUC and the CBI, at the initiative of the Government, to examine ways in which UK productivity can be improved; the work of the TUC’s Partnership Institute; the representation of the social partners on the national Learning and Skills Council and local LSCs as well as other advisory bodies and the Skills Task Force; the work of the joint Training for Productivity and Employability working group; and that of the Union Learning Fund.

In its annual recommendations for Member State employment policies, the Council of Ministers said that the UK should improve the balance of policy implementation of the Guidelines so as to strengthen and make more visible efforts to modernise work organisation, in particular by fostering social partnership at all appropriate levels. Other Council recommendations referred to the need to reduce the gender pay gap; improve childcare provision; reinforce active labour market policies for the adult unemployed; and intensify efforts to implement initiatives on lifelong learning.

Standing Committee on Employment

The tripartite Standing Committee on Employment met in October under the French Presidency and in March under the Swedish Presidency. The ETUC welcomed the increase in the quantified targets in the guidelines for 2001, the references to the quality of jobs, the objectives of ensuring compliance with occupational health and safety legislation and reducing occupational accidents in risk sectors and the inclusion of steps to tackle undeclared work. In March, the Committee stressed the importance of bringing about better policy co-ordination between economic, employment and social policy areas. The ETUC emphasised the need to follow-up all aspects of the Lisbon strategy, embracing growth, employment, competitiveness and social cohesion.

Stockholm European Council

The Lisbon Council last year had agreed that special European Councils to discuss employment issues should be held annually in the Spring, the next being in Stockholm on 23-24 March 2001. The ETUC expressed concern that attention would be narrowly focussed on economic reform, and pressed the Swedish Government, including the Prime Minister who attended a meeting of the ETUC Executive Committee held in Stockholm in the days preceding the Council meeting, to ensure that the broad and integrated approach agreed in Lisbon would continue. The ETUC was successful in its objective and many of the points it made were reflected in the Council Conclusions which, in particular, included the Social Agenda as part of the modernisation of the European Social Model, and the explicit recognition of the importance of public services. In addition to a specific mention of the role of the social partners in relation to managing change, the European Council said that they would welcome a positive outcome to negotiations between the social partners on temporary agency work and teleworking. Developments on these issues are reported below.

Macroeconomic dialogue

The macroeconomic dialogue has continued, involving the Council, the Commission, the social partners and the European Central Bank. The autonomy of the parties is fully respected and the discussions are confidential. Meetings under this process were held in November under the French Presidency and in April and May under the Swedish Presidency.

In post-EMU conditions, the ETUC sees the macroeconomic dialogue as a way of building a consensual European strategy. In general, the ETUC has emphasised the importance of the full employment strategy as well as the quality of jobs. It has stressed that trade union wage policies, focussed on job creation, had not and would not create inflationary problems, although this risk was still invoked by some. Especially in relation to the US economic situation and possible threats to the European recovery, Europe had to be ready to act and, in particular, the ECB had to be more flexible with its monetary policies.

3.6 European Social Dialogue

The development of an EU industrial relations area

In December, the ETUC Executive Committee adopted a recommendation on the co-ordination of collective bargaining based on three objectives. The first is to have a general indication on wage bargaining which comes from trade unions at the European level in order to respond to the existing guidelines coming from the Commission (Broad Economic Policy Guidelines) and the ECB, and in order to influence the Macroeconomic Dialogue. The second objective is to avoid social and wage dumping and wage divergence in Europe, as this could delay the social convergence of the Member States. The third objective is to co-ordinate wage claims in Europe, particularly in the euro area where pay is now easily comparable and also to encourage an upward convergence of living standards in Europe.

The guideline is built around a flexible formula which encompasses inflation and productivity plus, if necessary, other quantifiable determinants. This will allow for a common analysis and evaluation of the results of collective bargaining. The aim of the guideline is to ensure that, firstly, nominal wage increases should at least exceed inflation rates whilst maximising the proportion of productivity allocated to the rise in gross wages, in order to secure a better balance between profits and wages. Secondly, any remaining part of productivity should be used for other aspects in collective agreements, such as qualitative aspects of work where these are quantifiable and calculable in terms of cost. Thirdly, the guideline should ensure that public and private sector pay should increase in parallel.

In line with ETUC priorities, the guideline emphasises two aspects of collective bargaining, in particular, for the coming period: developing the right of all workers to training and lifelong learning as an investment in the quality of work; and combating low pay and securing equal pay between men and women for equal work and work of equal value. The ETUC Executive Committee will review developments regarding wage increases every year and developments regarding progress on qualitative aspects every two years. Such an evaluation will be based on a common analysis of the situation in Member States plus the EEA countries and in the industry federations. Affiliated organisations in the candidate countries to the EU will be invited to take part in this exercise.

The ETUC Collective Bargaining Committee, together with the European Trade Union Institute, has discussed the need to improve exchanges of information on the evolution of wages and changes in qualitative aspects such as initiatives on equal pay, low pay, training and lifelong learning and working time. There is a need to gain a longer-term view over two to three years, to have data for both the public and private sectors and information on the duration of agreements and the developments in minimum wages. The Committee has continued to discuss the preparation of ETUC input to meetings of the Macroeconomic Dialogue and bilateral meetings with the ECB. It has taken 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 into its fourth year. During the year the ETUI launched its electronic CB Newsletter, containing country reports and sector information across the EU.

Social Dialogue Committee

The Social Dialogue Committee and its working groups have covered a wide range of social policy, macroeconomic and employment issues over the past year. The Committee adopted a statement on the compendium of good practice in employment, and organised discussions on telework and lifelong learning. In November, the Social Dialogue Committee adopted a joint statement on the European Observatory on Industrial Change, to be located at the Dublin Foundation, which would have as its core mission the monitoring of drivers of change in the European economy. It would collect and process information, facilitate access to this information by its target audiences, disseminate good practices regarding adaptation and facilitate exchanges of experience. Target audiences would be companies, the social partners at all levels, but especially at European sectoral level, national and regional authorities and European institutions. The establishment of the Observatory was endorsed by the Stockholm European Council.

At the sectoral level, there are now 26 European Sectoral Social Dialogue Committees. In addition informal activities take place in ten other sectors. These sectoral committees have been negotiating framework agreements, joint opinions, codes of conduct, guidelines and manuals on a wide variety of subjects such as health and safety at work, working time, respect for fundamental rights and telework.

Lifelong learning

The European social partners, working in the Social Dialogue Ad Hoc Group on Education and Training, agreed an interim report on lifelong learning in March. The statement set out a number of principles to meet the challenges of a new knowledge-based economy in relation to lifelong learning. These principles included the need for partnership, shared responsibility of employers, employees and public authorities and the need for quality and diversity in programmes. The social partners gave a clear political signal on their specific contribution 'in order to identify ways of promoting access to lifelong learning and developing the skills of all men and women'. They committed themselves to working towards a European framework and to promote it at national level. In June, the ETUC Executive Committee adopted a resolution on trade union strategies for lifelong learning, with a focus on access, increased investment and time for training. It restated the ETUC’s objective of negotiating a European framework agreement on lifelong learning.

The TUC General Secretary was appointed to the High Level Task Force on Skills and Mobility, launched by the Commission in February 2001. The task force is examining, in particular, the skills gap in the information and communications technology sector, and will report at the end of the year. Later in the year the Social Dialogue Committee will be discussing the Green Paper on Corporate Social Responsibility, due to be adopted by the Commission in the summer.

3.7 Democratisation of the economy

The General Council have continued to campaign for European instruments to enhance rights to information, consultation and participation of workers, as a key component of the European Social Model.

Information and consultation

At the beginning of the Congress year, the Commission’s draft directive on a framework for information and consultation of employees in national companies was still blocked in the Council of Ministers. p rogress was unlikely until agreement was reached on the European Company Statute, to which the German Government gave precedence, but which was being blocked by the Spanish Government. The UK and Irish Governments maintained opposition in principle against the instrument. In October, the TUC and the Irish, Spanish and German national trade union centres issued a joint statement on behalf of six national organisations condemning the collusion of their governments in a series of private agreements resulting in the directive being blocked. The hostile attitude of the Government to the draft directive was taken up with the Prime Minister on a number of occasions both in writing and at meetings.

Calling for strengthened information and consultation rights was a key campaigning issue for the ETUC and featured as a theme in the demonstration it organised in December in Nice to precede the European Council. The TUC sent an 85-strong delegation to press the case for the directive. Marching behind a banner reading Stop Blocking Workers Rights, the British contingent joined 80,000 demonstrators from across Europe. To coincide with the demonstration, the TUC published a report Don’t keep us in the dark, giving examples of UK workers who discovered from the media that their jobs were to go, and calling on the UK government to end its opposition to the directive.

The European Council reached agreement on the employee involvement aspects of the European Company Statute (see box), bringing to an end 20 years of discussions. This should have freed up the agenda of the Social Affairs Council, scheduled for 19 December, permitting the draft directive to be discussed. An ETUC delegation, including Maureen Rooney on behalf of the General Council, visited the President of the Employment and Social Affairs Council, French labour minister Elisabeth Guigou, immediately before the Council meeting, in order to press the case for progress on the directive. They also raised the announcement by General Motors that they were to cease car production at Vauxhall in Luton. Although the minister was very sympathetic, the British Government prevented the issue from being placed on the agenda through a procedural device.

Pressure was maintained during the following Swedish Presidency, on MPs, European Parliament, Presidency and Commission. In February, ETUC General Secretary, Emilio Gabaglio, addressed the trade union group of Labour MPs in the House of Commons on aspects of Social Europe, including the directive. He had also attended the Luton demonstration about the Vauxhall closure in December. At the end of March, Marks and Spencer announced to the press that the company would be closing all of its stores in continental Europe, without prior consultation with its unions. Demonstrations and court actions followed in a number of countries. The international confederation for the commercial sector, UNI, together with its European arm UNI-Europa, requested the assistance of the TUC in organising an international demonstration in London. This took place on 17 May with delegations from France, Belgium, Spain and Ireland, as well as support from British unions. The event gained considerable publicity, not only for the M&S workers, but also for the wider issue of workers’ rights. As a result of the demonstration, M&S management in London met with a delegation from UNI, which they had previously declined to do.

It became evident that the agreement on the European Company Statute, and the continued pressure in favour of the Directive was likely to mean that a blocking minority in the Council of Ministers could no longer be assembled against it. Four days after the UK General Election, the Council reached agreement on a new text for the directive.

The text had been significantly amended since the Commission’s first proposal in November 1998. Although the directive would still apply to workers in ‘undertakings’ of more than 50 employees, temporary opt-outs would be permitted for employers with 100-149, and 50-99 employees, exempting them from the regulations for additional two and four year periods respectively. This would only apply in states with no existing, general system of representation: primarily UK and Ireland. The Commission’s suggestion that the effect on employees’ contracts of management decisions taken without proper consultation should be subject to reversal was removed. Penalties for non-compliance, the remaining text said, should be 'effective, proportionate and dissuasive'. Ample provision would be given for the implementation of the aims of the directive by agreement between ‘management and labour’ including the recognition of agreements existing before the directive comes into force.

The Directive will be considered by the European Parliament, who may present amendments which, if supported by the Commission, can be adopted by a qualified majority of the Council of Ministers. Priorities identified by the General Council included: the specific inclusion of the public sector; strengthening the provisions on enforcement; clarification of the role of social partners, minimising the exemptions for matters deemed confidential, and removal of the extended opt-outs for smaller employers. These were discussed with representatives from the ETUC and European Parliament at the June meeting of Network Europe Contact Points.

The Belgian Presidency has signalled its intention to make rapid progress with the directive, which should be finalised at the end of 2001 or early in the following year. Attention will then be focussed on transposition into UK law. Further consideration by the General Council of information and consultation issues in the national context is reported in Chapter 1.

European Company Statute

After having been discussed in Europe for over 20 years, political compromise on the European Company was reached between EU ministers at Nice in December 2000.

This will permit (but not require) the formation of European public limited companies (known by the acronym SE, for Societas Europaea), which will be able to operate in any Member State as though it were separately registered there. SE must have a share capital of at least € 120,000, be based in one Member State, and can be formed by merger, setting up a holding company, by establishing a subsidiary joint venture or by transforming an existing multinational company. In all cases the originators must be operating in more than one Member State. The rules applying to the SE are set out in a Council Regulation.

An SE may not be registered unless it has concluded an agreement on the arrangements for employee involvement, which are set out in a separate Directive, supplementing the Regulation. These provide for the establishment of a Special Negotiating Body, drawn from the employee representatives of the workforces which will go to form the new company. This body will be charged with reaching agreement on the means for the information, consultation and participation of employees. The definitions of information and consultation are stronger than those found in other Directives, while the term ‘participation’ means it is possible for employees to elect, nominate or recommend all or some of the members of the SE’s Supervisory Board or Board of Directors.

At the time of writing, the Regulation and Directive were completing their passage through the European Parliament.

European Works Councils

Following the presentation by the Commission of a report on implementation legislation, there has been little progress on the long-overdue review of the European Works Councils Directive. However, the European Parliament adopted a resolution on industrial restructuring in March, calling for revision of the Directive; held a hearing into the effectiveness of EWCs in practice; and is to consider the Commission report. Commissioner Diamantopoulou has announced that the process of review will now begin early in 2002. The ETUC, in consultation with affiliated confederations, has prepared a list of proposed amendments, and attention is likely to focus on key issues such as the timing and nature of consultation, penalties and confidentiality, as well as the practical problem of dealing with the effect of mergers and takeovers on EWCs .

The pace of reaching new agreements has continued to be slow across Europe. In part this reflects the previously noted probability that those companies with levels of employee organisation capable of co-ordinating a request for a Special Negotiating Body have already established EWCs. It may also reflect the attention that is currently being devoted to re-negotiating Article 13 agreements which have reached the end of their first term, or which have had to be substantially altered to reflect changes in company structure as a result of mergers, demergers and takeovers.

The TUC has continued to support the joint union structures established to deal with the European Works Councils in P&O, Vivendi and Vinci. The TUC was also a partner in a joint project with the FNV, CC.OO in Catalonia and Alpha Conseil from France, funded by the European Commission. This was aimed at identifying the practical problems being encountered by EWC members, and good practice which could help resolve these problems. Representatives from a number of EWCs, including Nissan, Unilever, Barclays and Arjo Wiggins Appleton, took part in a two and a half day seminar near Barcelona in May. The results of the discussions are to be presented in a booklet, which it is hoped will be of value to members of other EWCs. A follow-up project, involving the FNV, CC.OO Catalonia and CFDT has been approved by the Commission to examine the problems faced by EWCs in dealing with company restructuring.

Mergers and takeovers directive

A further measure which touched on the problems faced by workers affected by company restructuring was the 13th Directive on Takeover Bids. For the most part, this Directive concerned itself with the responsibilities of directors to their shareholders and the issue of defensive strategies which might be deployed by target companies against hostile takeovers. The ETUC had long argued that the Directive should take into account the wider interests of employees and the public, and should set out clear responsibilities on the part of both ‘offeror’ and ‘offeree’ managements to inform and consult with their employee representatives (in particular before any response to a bid is made). The Council proved reluctant to include any measures beyond some requirements for information on possible employment effects to be provided at the time of offer and response. The European Parliament proposed a number of amendments which would have specifically required boards to take into account the interests of staff and the safeguarding of jobs, and requiring parties to make information available to workers representatives.

The conciliated agreement between the Council and Parliament, however, included only reference to information being provided to employee representatives at the time of public announcements. This was regarded by the ETUC and the TUC as being unsatisfactory, a view shared by many MEPs, and on 4 July, Parliament rejected it, in a tied vote. The ETUC General Secretary made it clear that he favoured strong action in this area to create a level playing field, but that the interests of company employees as well as those of shareholders should be properly taken into account. When the Directive was so modified, bringing it into line with existing and pending European legislation, it would have the ETUC’s full support and would have a good chance of being adopted speedily.

3.8 Social policy

European Social Agenda

The Nice European Council approved the European Social Agenda on the basis of the French Presidency’s proposal and the Commission’s Communication adopted in June 2000. It included priorities for action over the next five years around: more and better jobs; anticipating change; fighting poverty and exclusion; modernising social protection; promoting gender equality; and strengthening social aspects of enlargement. The Council emphasised the importance of the Agenda as a major step towards the reinforcement and modernisation of the European social model, 'characterised by an indissoluble link between economic performance and social progress'. The Council agreed that the Commission should compile a scoreboard to see how the Agenda is being implemented and that the special annual Spring European Council would examine the results. The Nice Council also stressed the need for the social partners to play their full part in implementing and monitoring the Social Agenda. A High Level Group on Industrial Relations and Change including three trade union representatives was set up, to report in early 2002.

The involvement of the social partners in many of the Agenda’s specific proposals was welcomed by the TUC in its evidence to the House of Lords Select Committee in November. Presenting the evidence, the General Secretary welcomed the Commission’s Social Policy Agenda and also the initiative being taken by the French Presidency to give it a high profile. Together they gave a clear signal that the European social model is to remain at the centre of European policy as a whole. The TUC evidence noted that the guiding principle of the Agenda was 'to strengthen the role of social policy as a productive factor'. European social policy had enabled the EU to manage structural change whilst minimising negative social consequences.

The TUC’s evidence observed that modernising the European social model and investing in people would be crucial to retaining the European social values of solidarity and justice while improving economic performance. Social, employment and economic policy would need to interact together. It supported the general approach, which is to focus on the quality of employment, the quality of social policy and the quality of industrial relations. It made the point that it is generally cheaper and easier to make British workers redundant than their colleagues in other EU states. A common European social safety net, to give everyone at least the same basic standards of social protection and rights at work, could stop structural change from turning industrial casualties into social outcasts. It could help everyone face up to the challenge of change at work and ensure that, even in the most extreme cases where modernisation means redundancies, the people affected still feel that they had a stake in society. Key priorities were: strengthening the European Works Councils Directive; introducing a directive on information and consultation of workers in national companies; and activating the EU Charter of Fundamental Rights.

Social protection

The Social Agenda calls for continued co-operation between Member States on strategies designed to guarantee secure and viable pensions in the future; analysis of the progress still to be made by Member States in order to make work pay and promote secure incomes; and, before 2003, to study how a high and sustainable level of health protection can be guaranteed. Social partners’ representatives have continued to work in the Pensions Forum, which established three working groups, covering acquisition and preservation of pension benefits; transfer of pensions; and cross-border memberships. In December 2000, the ETUC Executive Committee adopted a resolution on a regulatory framework at European level concerning occupational pension schemes and, in June, adopted a further resolution on assuring the viability and quality of pensions in Europe.

Temporary agency work

The first negotiating plenary between the social partners on temporary agency work took place on 27 June 2000. Regular reports on the negotiations were made to the General Council. Unfortunately, after many negotiating sessions without any substantial progress, the Chair declared finally, on 15 March 2001, that a point of breakdown had been reached and that both sides would be reporting back to their Executive bodies. The ETUC Executive Committee, meeting in March, decided to end the negotiations because of the refusal of the employers to reach an acceptable compromise on the crucial principle of equal treatment for agency workers and workers in the user enterprise: a principle which had formed the basis of both the agreements on part-time work and fixed-term contracts. Commission President Romano Prodi asked Commissioner Anna Diamantopoulou to make a last verification with the social partners before the Commission launched its legislative initiative.

Meetings were held in April and May with a view to finding a possible compromise. At a meeting on May 10, the Commissioner suggested a formula allowing exceptions to the principle of equal treatment where 'justified by objective reasons, such as an adequate level of protection by other means.' The ETUC had reservations about this proposal, but in the event it was not acceptable to the employers, as it would give agency workers on permanent contracts equal treatment with workers in the user enterprise. The Commissioner noted the impossibility of the social partners reaching agreement and announced her intention to launch a directive. The ETUC Steering Committee on May 18 noted the failure to find a compromise.

Modernisation of employment relations - telework

The Commission began consulting the European social partners on modernising and improving employment relations under the Social Chapter procedure in 2000. There were four elements for consultation, two general ones: establishing principles of modernisation and setting up a review procedure for existing legislation; and two specific ones: telework and economically dependent work (false self-employment). The TUC consulted affiliates and forwarded replies to the ETUC. In the second stage consultation, the Commission proposed leaving the discussion of principles until after the first round of reporting by the social partners under the adaptability pillar of the employment guidelines. The Commission did not make any further proposals on a review procedure. On economically dependent work, in line with a general request, the Commission agreed to carry out a study before taking any further initiatives.

On telework, the Commission proposed a general framework be established at European level. The ETUC’s standing position on telework favoured the negotiation of a legally binding framework agreement, under the Social Chapter of the Treaty. However, in response to the European Commission consultation, the European employers’ organisation, UNICE, proposed to the ETUC the negotiation of a non-legally binding or voluntary European agreement on telework. The Commission, in its second stage consultation on telework, did not propose a legally binding European instrument but, instead, asked the social partners to give their views as to whether they wished to forward an opinion or a recommendation or to start a negotiation process under the Social Chapter.

UNICE opted for the negotiation of a voluntary European agreement, which would be implemented according to national traditions. The ETUC sought clarification from UNICE about the status of a voluntary agreement, and in particular how a European agreement would be implemented at the national level. This key issue could set a precedent, as, while there have been a number of voluntary agreements concluded at the European sectoral level, none have been concluded so far at European cross-sectoral level. In its reply to the ETUC in June, UNICE confirmed that a European agreement would constitute 'a solemn commitment of the signatories' which 'would integrate the commitment of the members of the signatory parties and assure the follow-up to the European agreement in the Member States'. UNICE said that the content of any agreement would determine the arrangements regarding follow-up. However, there would be an obligation regarding implementation at national level.

In June, the ETUC Executive Committee agreed to consult affiliates on a draft negotiating mandate. The General Council accepted this, subject to further written comments. The mandate was based on the principle of equal treatment, in line with the framework agreements on part-time and fixed-term work. Following the adoption of the ETUC mandate, negotiations are expected to begin in late September. Social partner discussions about a UK code of practice on telework are reported in Chapter 1.

Working Time

In December, the Council reached a political agreement on a revised proposal for a directive on working time for road mobile workers; this is the last piece of legislation that remains outstanding from the Commission’s legislative package of 1997 on working time and the excluded sectors. Strong reservations to the Council’s position were expressed by trade union organisations who said that it would impact negatively on both workers’ health and safety and road safety, if finally agreed following a co-decision procedure in train with the Parliament. In June the Parliament adopted the second-reading report which would, to a large extent, improve the Council common position. Should the Council reject the EP amendments, the proposal will go into conciliation.

Non-discrimination

A new equal treatment at work directive making it unlawful to discriminate on the grounds of age, disability, religion and sexual orientation was adopted in November. The directive is part of a Commission’s package of measures based on the non-discrimination Article 13 of the Amsterdam Treaty which included a race equality directive, adopted in June 2000, and an action plan against all forms of discrimination. Like the race equality directive, the equal treatment directive makes both direct and indirect discrimination and harassment unlawful while allowing positive action to prevent and correct inequalities. The shift of burden of proof to the employers is also included. It will apply to recruitment, promotion, training, pay, dismissal and membership of industrial bodies. To accommodate some member states’ concerns, including those of the UK, regarding the impact of the directive on business, the Council extended the transposition period from two to three years, which in turn can be further extended to another three years with regards to the provisions on age and disability. The TUC welcomed the new directive but regretted longer delays in implementing protection against discrimination especially as regards the grounds of sexual orientation (not before 2003) and age (not before 2006). Because of the complex issues involved in determining a law preventing discrimination on the ground of religion, the TUC believes the directive’s three years lead in time will probably be needed. The directive will end the Disability Discrimination Act ’s exemption for small firms. As with the anti-racism directive, social partners may implement the directive as regards provisions concerning collective agreements. Further work is reported in Chapter 2.

Public services

A number of proposals relating to public services and public procurement have entered the European legislative process, which have considerable social policy and employment implications.

Communication on services of general interest

The general approach of the Commission towards public services in the EU was outlined in a communication published in September. Services of general interest are defined as 'market or non-market services which the public authorities consider as being of general interest and which are therefore subject to specific obligations'. The Communication’s key objective is to set out legal certainty for operators in relation to EU competition and internal market rules. Employment, working conditions and social policy issues are touched upon in the Communication which was debated in an EP hearing with the social partners in March. The ETUC and the Public Sector Federation, EPSU, welcomed the Commission’s intention to provide greater legal certainty to all operators of public services, but were concerned about the scant interest being shown for employees as key factors in the delivery of quality public services, and to the role of public services in ensuring social and economic cohesion in line with Article 16 of the Treaty. The ETUC urged the Commission to set out clearly, in a framework directive, exemptions from competition rules and main criteria and principles for the delivery of quality public services including aspects of working conditions and workers’ information, consultation and participation rights. The ETUC, together with EPSU and CEEP (European public sector employers) are currently drafting the text for a EU directive building upon the ETUC-CEEP Charter on public services adopted in March 2000, and an ETUC resolution on a regulatory framework for services of general interest and public procurement adopted by the ETUC Executive Committee in December. It is intended that the draft directive be submitted to the Commission, which was requested by the Nice Summit to draw up a report on public services in the EU in time for the Laeken Summit in December.

Draft Regulation on public transport

As a continuation to a number of sectoral directives on further liberalisation of energy and postal services in the EU, the Commission submitted, in July 2000, a proposal for a Regulation aiming to introduce ‘controlled competition’ in all public passenger transport sectors, including urban and suburban transport, apart from civil aviation, involving the introduction of a basic level of harmonisation of competition rules and transparency requirements when awarding service contracts. Unions have been working with Members of the Parliament with the aim of ensuring that the tendering process should not to be forced onto local authorities which wish to provide and pay for a publicly-owned service, and that in cases where competition is introduced, social criteria and a labour clause should be made compulsory, and not optional as proposed by the Commission, in the tendering process to ensure employee protection and avoid unfair competition based on labour cost savings.

EU rules on public procurement

A revision is under way of four directives on public procurement, aimed at consolidating and eliminating inconsistencies between them. In this context the ETUC is pressing for the introduction of a social and labour clause in the revised texts in line with a resolution adopted at its Executive Committee in 1998, when the consultation process for the revision of the directives was launched. This ETUC campaign, which is being pursued in co-operation with Members of the Parliament, relates closely to TUC work on the development of a Fair Wages Resolution.

Copyright

In February, British authors’ unions, with the support of the TUC and the European media branch of Union Network International, spearheaded a successful lobbying campaign against a last minute amendment, brought by the EP’s legal affairs committee, to the European Copyright Directive that would have threatened the livelihoods of writers, performers, musicians and other creators. The amendment was rejected and the directive which was later approved in Council extends the scope of classical copyright to the online environment and brings the EU in line with the US where similar legislation has been in place for two years.

3.9 EU Enlargement and migration

Following agreement reached at the Nice Summit about institutional arrangements aimed at enabling the EU to enlarge to possibly as many as 27 member states, the ETUC Executive Committee adopted a resolution, at their meeting on 13-14 December 2000, reaffirming the ETUC’s support for enlargement, and for the entry of the first new members before the next European parliamentary elections in 2004.

Arguing that gaining public support for enlargement requires the involvement of trade unions, the ETUC pointed to the need for progress on Social Dialogue in applicant states, as well as the inclusion of unions from applicant states in European social dialogue. The need to defend and develop social protection systems, as well as adopting the formal social acquis was underlined. The ETUC said that free movement of workers from the new member states was one of the four fundamental freedoms, and that any risks to labour markets would be limited and controllable. If there were to be any transitional periods for free movement, they should be as flexible as possible and appropriate to the economic and social situation. The ETUC expressed opposition to a selective introduction of free movement for highly-skilled workers, which would undermine the economic potential of the applicant countries, and warned that import of new labour should not be used by employers to undercut working conditions and wages and bypass their duties on training local workforces.

The Gothenburg Council envisaged that entry negotiations would end by 2002, with the first new entrants being accepted by 2004. Existing Member States may, if they choose, impose transitional periods of up to seven years for full freedom of movement for workers from the new entrants. Some EU countries, including Sweden and the Benelux, have said that they would not impose any transitional periods. When asked by a TUC representative about the UK position on the matter, at a meeting on migration issues organised by the European Commission in London in July, a Government Minister said that no decision had yet been taken.

A Social Partners conference was held in Bratislava in March, to consider the issue of social dialogue in the candidate states. Dave Anderson (UNISON) attended on behalf of the General Council. During the conference, the point was made that, while social dialogue needed to be developed and strengthened in candidate countries (which were in some cases facing hostile governments and pressure for decentralised bargaining), these were problems also faced by unions across Europe. The report commissioned for the conference concluded that there were still serious problems in the representativeness of the social partners, particularly since in most candidate states the new private sector was unorganised.

The TUC was also represented at a seminar on EU enlargement for Cypriot trade unionists, organised by the Foreign and Commonwealth Office in Nicosia in March. Unfortunately, representatives from the north of the island were refused visas by the authorities there. Divisions existed between unions over EU entry, with concerns being expressed over privatisation and restrictions on government spending.

Free movement of workers in the EU

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.

Proposals, some dating back to 1997, updating and improving the rights of EU workers and their relatives when they move and reside in a EU member state other than their own are still being discussed in Council. They include amendments to the Regulation on free movement of workers and to the Regulation on co-ordination of EU migrant workers’ social security rights (including unemployment benefits and pensions). Some of these amendments were welcomed by the ETUC and European Parliament but strong blockages in Council are preventing any progress.

The Belgian EU presidency, however, is committed to making progress on the issue of cross-border portability of social security rights across the EU. Also on the Council’s table are two draft directives aiming to facilitate the posting of non-EU workers and extend the right to provide services in the EU to non-EU nationals legally resident in the EU through the introduction of an ‘EC service provision card’. The European Federation of building workers had urged the EU to keep the construction sector outside its scope for as long as the problems relating to defining the concept of a self-employed worker and undeclared work continue in the Community.

Immigration and asylum

At the Tampere European Council in December 1999, EU leaders mandated the Commission to make specific proposals relating to immigration and asylum, based on a series of objectives to be met by 2004. Although the UK is not bound by Amsterdam Treaty provisions on immigration and asylum relating to the Schengen area, it can opt in to measures and has done so for a number of proposals especially in relation to border controls. In November, the Commission issued two separate but closely inter-related communications setting out proposals for the development of a Community immigration policy and a common asylum policy. As a first step towards a common immigration policy, it recommends exchanges of information among member states who will be required to draw up national reports setting out the current number of migrant workers; the situation as regards the labour market; and the number of migrants they would wish to admit and qualifications required. The social partners should be consulted on the drafting of these national reports. The Commission proposes a two-phase approach with regards to asylum, the short-term objective being to establish minimum standards on procedures in Member states for granting and withdrawing refugee status; the long-term objective is to establish a common asylum procedure and uniform refugee status valid throughout the EU. In addition to the Communications, a range of directives and regulations on related subjects have been proposed or adopted during the last six months. The Belgian EU presidency will organise a major conference on migration in Brussels, in October, whose conclusions will be presented to the Laeken summit. The issues are currently being discussed in the ETUC working group on migrant workers and ethnic minorities with a view to drafting a position for adoption by the Executive Committee.

3.10 Network Europe

The TUC continues to maintain a high profile in relation to a wide range of organisations relating to European issues. The Europe Monitoring Group is chaired by John Edmonds and includes Maureen Rooney, Tony Dubbins, Sir Ken Jackson, Bill Morris, Dave Prentis and the General Secretary. In order to help the Executive Committee, the group has continued to monitor important European developments such as the negotiation of framework agreements.

The TUC also holds monthly meetings of the Network Europe Contact Points (NECP), composed of representatives of affiliated unions, who monitor current developments. Stephen Hughes MEP spoke to NECP during the year on the information and consultation directive. NECP members and other UK trade unionists participated in a seminar on company mergers and takeovers, organised by the European Parliamentary Labour Party Trade Union Group in March in Brussels.

The TUC Brussels Office maintains close contacts with the ETUC and its Industry Federations, the European Parliament (particularly its Employment and Social Affairs Committee), the Commission and other European institutions. The office takes part in the network of national trade union centre representatives in Brussels and during the year received and assisted 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 Eurobriefing, an occasional newsletter on European issues, and other European information is published 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, one less than before following the merger of the Food workers and Agricultural workers. The federations 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 began 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 report by the end of 2001.

Throughout the year, the ETUC has continued to campaign for full employment, social rights and equal pay. A very successful ETUC demonstration around these themes was held during the Nice Summit in December 2000. A similar demonstration will be organised for the December 2001 Laeken European Council in Belgium. The campaign for the adoption of the information and consultation directive remained a particular focus, with ETUC participation in support of Vauxhall/General Motors workers and Marks and Spencer’s workers, two groups who have faced job losses and closures over the past year.

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. That work is reported in Chapter 11.

TUC Representatives on ETUC Executive Committee

Members: John Edmonds, Jimmy Knapp, John Monks, Maureen Rooney

Deputy members: Tom Jenkins, Gloria Mills, Bill Morris, Barry Reamsbottom

Women’s Committee: Diana Holland (Vice-President), Kay Carberry, Judy McKnight

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. Following the decision of the ETUC Executive Committee last year, the ETUC Steering Committee became the management board for all three institutes, with time being set aside at Steering Committee meetings to hear reports and discuss their work.

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. In this respect 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, notably on health and safety at work, and Campbell Christie was rapporteur for an important opinion on Economic and Social Cohesion.

Professional and managerial staffs representation

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

In October Eurocadres published, in conjunction with the European Trade Union Institute, a guide to the union organisation and bargaining arrangements for P&MS workers across Europe. The annual Eurocadres General Assembly and symposium took place on 20-21 November 2000. The symposium dealt with mergers, takeovers and privatisation, focussing on the roles and responsibilities of P&M staff and their unions. The General Assembly received a report on activities for the preceding year, and heard a presentation on the joint Eurocadres/ETUI report.

In June 2001, Eurocadres held its Congress. Amendments to the Eurocadres Constitution were adopted, and Michel Rouselot was re-elected as President. Jim McAuslan, PCS (who is nominated by the European Public Service Unions) was elected as one of the four vice-Presidents. The TUC’s representative remains Terry Lane, of the EMA.

Regular meetings of British representatives on the Eurocadres steering group have continued, chaired by Dave Prentis on behalf of the General Council. In response to an initiative from Eurocadres, it was agreed to encourage participation in an EU-wide survey of the actual working time and preferences of P&MS staff. This was then agreed at the annual symposium for P&MS unions, in July, at Congress House. The meeting was addressed by Rita Donaghy, chair of ACAS, who spoke on the case for collective, rather than individual representation. The symposium also heard a presentation on the Promoting Trade Unionism project, a report back from the Eurocadres Steering Committee, and on specific Eurocadres projects - Feminet (a network for women managers and those representing them) and Mobilnet (an initiative aimed at improving unions’ ability to assist P&MS members moving to work in different parts of the EU).