European Union: Commissioner Spidla sets out social policy vision

In an exclusive interview with EIRR, EU social affairs Commissioner Vladimir Spidla highlights what he believes are the main challenges facing the EU over the coming five years. Based on the proposals set out in the European Commission's recently issued social policy agenda, points of focus include a proposal to establish a voluntary transnational framework for collective bargaining, a proposal on data protection, the establishment of a gender institute, new social partner consultations on restructuring and a Green Paper on new forms of work.

Background

The new European Commission took office in November 2004 for a term of five years.
Vladimir Spidla, former head of the Czech Social Democratic Party and former prime minister of the
Czech Republic, is the EU's new Commissioner for employment, social affairs and equal opportunities. On 9 February 2005, the Commission issued its plans for the coming five years in the form of a social agenda.

The agenda is divided into two parts: the first focuses on how to strengthen the confidence of the European Union's citizens, which it deems essential for managing the process of change and promoting economic growth; and the second presents proposed measures, under two main headings: employment; and fighting poverty and promoting equal opportunities.

Building confidence

The first part of the social agenda seeks to build confidence among EU citizens. It aims to modernise the European social model, improve collective capacity to act to improve the social and economic situation and offer new opportunities to all citizens. It states the Commission's belief that the main driving forces behind increased competition in a global context, technological development and the ageing population will accelerate by the end of this decade. The main challenges faced by Europe over the coming years are: the low rate of employment; unemployment; poverty, inequality; and discrimination. It sets out actions to help face up to these challenges.

An intergenerational approach

During 2005, the Commission intends to issue a Green Paper on the "intergenerational dimension", analysing the demographic changes of European populations and the consequences of this. It states that there is a need to adapt systems of social protection and pensions to these changes and it is also necessary to link this into the question of migration (the Commission issued a Communication on managing economic migration to the EU in January 2005 - European Commission: Green Paper on economic migration)

The Commission also aims to create a more "dynamic relationship" between the generations and launch a European initiative for youth.

Commissioner Spidla told EIRR that coordinating measures to deal with Europe's ageing workforce is one of the key challenges faced by this Commission. The Green Paper is being worked on within the Commission, with an issue date of 16 March 2005.

Partnerships

The Commission believes that it is vital to the success of European policies to create a partnership between the authorities, the social partners and civil society. The March 2004 spring Council (EC: Spring Council discusses labour market progress) also called on member states to set up so-called partnerships for change.

In order to evaluate progress made by all concerned in the implementation of European policies, the Commission is proposing to set up an annual meeting of all those involved, to evaluate the implementation of the social affairs agenda.

The external dimension

The Commission states that there have been several proposals issued recently that "offer a good basis to make substantial progress" in strengthening the social dimension of globalisation. These include the report of the World Commission on the Social Dimension of Globalisation and the Commission's own proposals in this area (EIRR 366 p.3).

The social agenda seeks ways of benefiting from the exchange of experience between the EU and other countries and with international organisations such as the International Labour Organisation (ILO), the Organisation for Economic Cooperation and Development (OECD) and the United Nations (UN), in addition to those involved in economic governance, such as the International Monetary Fund (IMF), the World Bank and the World Trade Organisation (WTO).

It also states that the promotion of decent work for all should be a world objective at all levels.

In terms of actions, the Commission states that it will set up an interdepartmental group to promote consideration of the "external dimension of employment, social policy and decent work". It will also incorporate the European social model into external dialogue and measures at bilateral, regional and multilateral level, and promote decent work as a global objective at all levels.

Key areas of action

Employment

Commissioner Spidla told EIRR that the European employment strategy and the Lisbon strategy had achieved some progress, albeit modest: "Since 1997 Europe has created around 12 million jobs and improved the participation rate of women substantially." He admitted, however, that more needs to be done: "Not enough has been achieved: we must focus on employment because economic growth alone is not sufficient to create jobs."

In the social agenda, the Commission sets out its objectives in the area of employment as: achieving full employment; making work a real option for all; increasing the quality and productivity of work; and anticipating and managing change.

The employment goals link in with the goals of the European employment strategy and the Lisbon strategy, which is undergoing a mid-term review process. The Commission states that if the Lisbon growth and employment goals are to be reached, the EU needs a greater number of active workers who are also more productive. Therefore, both the quantity and quality of jobs need to be addressed, alongside issues such as productivity and economic migration.

The Commission has already made proposals to review the Lisbon strategy and "revamp" the European employment strategy, involving the issuing of new guidelines to member states and more coordination with other cycles, such as its economic policy and social inclusion policy, at European level. It also takes on board the priorities listed by the taskforce on employment, headed by the former Dutch premier, Wim Kok: increasing adaptability of workers and enterprises; attracting more people to enter and remain in the labour market; investing more and more effectively in human capital; and ensuring genuine implementation of reforms through better governance.

Stressing that the EU must be capable of anticipating, triggering and managing economic change more effectively, the social agenda states that the Commission will develop a strategy around four themes:

  • greater interplay between European policies designed to encourage and accompany restructuring. To this end, it will set up a high-level forum of all relevant players and stakeholders;

  • greater involvement of the social partners. In particular, it mentions a second phase of consultation of the social partners on the issue of restructuring (the first was carried out in January 2002 (Commission consults on restructuring) and resulted in a social partner text on orientations for managing change, signed in October 2003 - Social partners: Joint text on restructuring); and the current revision of the European Works Councils Directive (European Commission issues consultation on EWCs Directive);

  • greater synergy between policies and their financial levers; and

  • a stronger link between the European Employment Strategy and the development of the legal framework and social partner agreements.

    "We need to maintain an active labour market strategy that has a real focus on job creation," Commissioner Spidla told EIRR. On the issue of the second consultation of the social partners on restructuring, Commission Spidla stated that although the 2003 social partner agreement was a step forward, the issue of restructuring in Europe has not been resolved: "Relocation of production and jobs is an ongoing concern around the EU. Employment is still being moved out of Europe as a result of relocation decisions and this issue needs to be addressed."

    New work patterns

    The social agenda states that the Commission will issue a Green Paper on the development of labour law, in which it will analyse current trends in new work patterns and the role of labour law in tackling these developments. The discussion that this document will produce could lead to proposals for a range of measures to modernise and simplify the rules.

    Commissioner Spidla stated that it is vital to look at the incidence of new forms of work: "Life is changing and life at work is also evolving. Just as the introduction of computers for use at work has given rise to a raft of new health and safety legislation to protect workers, we need to examine the various new ways of working to see if workers need any protection. "Flexicurity" is a principle of the EU - we need flexibility, but we must also look to see if new ways of working entail any dangers for workers and act accordingly if they do." Even if certain new ways of working (for example, economically dependent workers, who are theoretically independent, but obtain the majority of their income from a single source) make up a minority of the workforce, he argued, this will still affect significant numbers of people: 2% of the EU population is still around eight million workers.

    He also noted that the consequences of new ways of working are not confined to the atypical jobs themselves: "There are also social security and pensions implications for people who have spent their whole lives working on an atypical basis."

    He added that the Commission's Green Paper will take the form of a discussion document, examining the situation and gauging opinion on issues connected with atypical working.

    Data protection

    During 2005, the Commission will propose an initiative on the protection of the personal data of workers. This follows a social partners consultation on this issue, undertaken in August 2001, and a second consultation in October 2002 (Commission's second consultation on data protection). It was widely expected that the Commission would take some action in this area, after it was clear that negotiations between the EU-level social partners were unlikely: the private sector employers' organisation UNICE stated that it did not consider negotiations to be appropriate.

    Updating of legislation

    The Commission intends to update the transfers of undertakings Directive (2001/23/EC) and the collective redundancies Directive (98/59/EC). It will also consolidate the various existing provisions on worker information and consultation.

    Commissioner Spidla told EIRR that the various provisions concerning information and consultation of workers are at present scattered around a range of statutory instruments: "It makes sense to put them all in one place. This will not entail any changes to existing provisions, but will merely be an exercise to codify what's already there."

    Health and safety

    The Commission intends to issue a new health and safety at work strategy, replacing the existing strategy when it expires in 2006. The new strategy will run for a five-year term, from 2007 to 2012.

    The Commission states that the new strategy will focus on new and emerging risks and safeguarding minimum levels of protection in the workplace and for workers who are not adequately covered. It will pay particular attention to the quality of prevention services, health and safety training, and other tools to ensure better application of health and safety standards. It will also monitor the transposition and implementation of health and safety legislation.

    Social dialogue

    The Commission states that it will continue to promote the European social dialogue process at cross-industry and sectoral levels, in particular by strengthening its logistic and technical support and by conducting consultations on the basis of Article 138 of the Treaty establishing the European Community (TEC), which provides the basis for social partner consultations in the area of social policy. The social agenda also stresses that the autonomy of the social partners will be respected in this process.

    In Commissioner Spidla's opinion, the social dialogue process has been a vital tool in responding to the challenges faced by the EU and those that it will continue to face. "It has been a success. That is not to say that there is not room for improvement - processes can always be improved. However, it has proved its worth and it has been vital to involve the social partners in the formulation of social policy. It is good that the Commission has been able to act with the support and knowledge of the social partners."

    Corporate social responsibility

    The Commission will continue to promote corporate social responsibility (CSR) and, in cooperation with the member states and the parties involved, will put forward "initiatives designed to further enhance the development and transparency of corporate social responsibility".
    A new Communication on CSR will be published in March 2005. Commissioner Spidla identified social governance as one of the main challenges for the EU in
    the future.

    Transnational collective bargaining framework

    One of the more innovative parts of the social affairs agenda is the Commission's plan to issue a proposal "designed to make it possible for the social partners to formalise the nature and results of transnational collective bargaining". It stresses that the use of this would be optional and will "depend entirely on the will of the social partners".

    The social agenda states that this framework for transnational bargaining could be used either at enterprise or sectoral level and could help companies and sectors to handle issues such as work organisation, employment, working conditions and training. It notes that this would give the social partners a basis for increasing their capacity to act at transnational level, provide an innovative tool to adapt to changing circumstances and provide "cost-effective transnational responses".

    Commissioner Spidla believes that this element is linked to the development of the internal market. "There has been a development in transnational social dialogue in recent years. Even though this does not affect all companies, the development of a voluntary framework for transnational bargaining will facilitate dialogue at this level for those that wish to engage in this. At present, we have no clear concept of the shape such a framework would take, but we would like to explore this issue further."

    Mobility of workers

    The mobility of workers is also a priority for the Commission, which intends to initiate actions in this area over the coming years. In 2005, it will set up a high-level group made up of representatives from all the member states to assess the impact of EU enlargement on mobility and how the labour market access transitional periods agreed for the most recent enlargement exercises are working. The Commission will then draw up a report for the Council in early 2006.

    In addition, the Commission aims to conduct studies on the permanent monitoring of migratory movements following EU enlargement and also in view of future enlargement exercises.

    Further, the Commission will continue with the work of modernising and adapting existing Regulations on the coordination of social security schemes (Regulations 1408/71, 883/04 and 574/72). It also makes a commitment to issue proposals to remove obstacles to labour mobility, in particular those arising from occupational pension schemes.

    Commissioner Spidla characterised EU enlargement as a success: "There have been some problems, but not many and mostly minor ones. By contrast, the EU has benefited from the creativity and talents offered by diverse cultures. This has enriched the European Union."

    Regarding the transitional labour market access periods put into place when enlargement occurred on
    1 May 2004, he noted: "This is a matter for the individual member states. The Commission will be monitoring these restrictions regularly and will set up a high-level group to examine the issue of labour market access, which will in turn inform the Commission of developments. Overall, the European Union will benefit from the completion of the internal market as quickly as possible."

    Increasing social cohesion

    One of the main aims here is to apply the so-called open method of coordination, where there are common objectives but member states choose the ways and means of achieving them, to health and long-term care from 2006. This method has been used in the areas of employment since 1997, exclusion and poverty from 2000 and pensions from 2002. It will also simplify the process, providing a single list of objectives that can be applied to inclusion, pensions and health.

    With a view to helping the fight against poverty and social exclusion, the Commission will also initiate a debate on national minimum income schemes. It states that many member states have already sought to make their national minimum income schemes more effective, but "many people are still in considerable difficulties and are obtaining neither employment nor the national minimum income protection."

    The Commission will therefore, launch from 2005 onwards, consultations with the social partners on why existing schemes to combat poverty and social exclusion are not enough. It will also suggest that 2010 should be the European year of combating poverty and social exclusion.

    Diversity and non-discrimination

    The Commission will issue a Communication in 2005 on equality and non-discrimination, following its 2004 Green Paper on this subject (EIRR 372 p.2), to which it has received more than 1,500 contributions. This Communication will set out the Commission's planned policy approach, look at the feasibility and relevance of any new initiatives to supplement existing law, and examine the question of minorities, in particular the Roma.

    In addition, the Commission will organise a European year of equal opportunities in 2007 and will issue a Communication on future policy developments in gender equality, following on from the current framework strategy, which comes to an end in 2005. It will also propose the establishment of a European gender institute, as called for by the June 2004 European Council (European Council: June social affairs). It is envisaged that this body will be a clearing house for information and exchanges of good practices. It will also assist the Commission and member states in promoting equality between men and women.

    Commissioner Spidla stressed that this new institute would have an information gathering rather than a political role: "We need a significant amount of data, analysis and interpretation to enable us to act on an informed basis. This new institute will provide the EU with such a basis of solid data and knowledge."

    Commissioner Spidla also told EIRR that the EU should be proud of what it has achieved in the area of equality between men and women, diversity and non-discrimination: "The EU is the best in the world in this area. Nevertheless, problems persist. In particular, the gender pay gap remains an issue in all EU member states. There have been many studies examining this problem, but the fact remains that the average gap between men's and women's pay is 15% in the EU, with a range of between 6% and 21%, depending on member state. A proportion of this is, of course, attributable to other issues such as the fact that a larger proportion of men tend to work in high-paid sectors. However, some of the difference can only be attributed to discrimination, which is something that must be changed."

    In the area of disability, the Commission will publish a report on the experiences of people with disabilities every two years, on the European Day of Disabled People. Similarly, Commissioner Spidla stated that the EU also leads the way in the area of disability, although he stressed that more remains to be done: "In theory, the new Article 13 of the Treaty is excellent, as are the new Directives that have been drawn up on this legal basis. However, the reality on the ground is different, in terms of actual practice, and it is this that needs to be addressed."

    Progress on existing proposals

    Commissioner Spidla gave EIRR his views on the likely future of proposals under discussion:

    Temporary work proposal

    The proposal for a Directive regulating the terms and conditions of temporary agency workers is being debated in the Council. The most recent examination of the text took place at the October 2004 social affairs Council (European Council: October social affairs), at which it was recognised that further efforts are needed to find an acceptable compromise for all delegations. It was stated in October that work will continue on this proposal with the aim of gaining political agreement in the Council.

    Commissioner Spidla told EIRR that he believes the Council will find a compromise on the text: "There is now agreement on most of the issues under discussion. The main outstanding issue is that of the qualifying periods contained in the proposal, during which exemptions may apply to the principle of equal treatment between agency workers and user company workers. However, I am confident that agreement can be reached on the entire text."

    Services in the internal market

    One of the most controversial proposals under discussion at present is the draft Directive on services in the internal market, originally issued in January 2004. This proposal aims to provide a legal framework that will eliminate obstacles to the freedom of establishment for service providers and the free movement of services between the member states. In essence, it aims to remove all national regulations that obstruct freedom of establishment and free movement of services. However, it has provoked the wrath of trade unions in particular, as they object strongly to a clause stating that a service provider will be subject only to the law of the country in which they are established, rather than that of the country in which they are operating.

    Although this is essentially an internal market rather than a social policy proposal, Commissioner Spidla stressed that all the Commission directorates work together in shaping EU policy and that the draft Directive also has implications for social policy. He acknowledged that there were problems with the Directive as it stands, but stated his belief that the forthcoming discussions of the text in the European Parliament and the Council would be able to shape a text that would be satisfactory: "I am in favour of this Directive as it will do much to help the completion of the internal market in the EU."

    In conclusion, Commissioner Spidla stated that the four main priorities for the European Commission over the coming five years were: labour market policy; equality of opportunity; social governance; and preparations to enable the EU to deal with its ageing workforce.

    He also stressed his belief that the European social model should be safeguarded and viewed as a positive element of European economic and social policy: "Our social model forms a part of our ability to compete internationally. It is not a burden, but rather a vital tool to help the EU deal with future challenges."

    Key action under the social agenda for 2005-2010

    Employment and labour mobility

    An interdepartmental group will be set up to promote consideration of the external dimension of employment, social policyand decent work.

    In 2005 the Commission will set up a high-level group to assess the impact of enlargement on mobility. The results of this will feed into a report to be drawn up by the Commission and given to the Council in 2006.

    The Commission will undertake studies aimed at the permanent monitoring of migratory movements in the EU.

    The Commission will continue with the work of modernising and adapting existing Regulations on the coordination of social security schemes (Regulations 1408/71, 883/04 and 574/72).

    The Commission will issue proposals to remove obstacles to labour mobility, particularly those arising from occupationalpension schemes.

    Social insurance

    The Commission will issue a Green Paper in 2005 on the "intergenerational dimension", relating to social insurance and pension systems (likely to be issued in March 2005).

    Restructuring

    A high-level forum made up of representatives of all players and stakeholders involved in restructuring will be set up.

    The Commission will issue a second phase of social partner consultation on the issue of restructuring.

    Atypical work

    The Commission will issue a Green Paper on the development of labour law, focusing on current trends in new work patterns and the role of the law. New proposals could result from this Green Paper.

    Data protection

    In 2005 the Commission will propose an initiative on the protection of the personal data of workers.

    Transfer of undertakings and collective redundancies

    The Commission will update the transfer of undertakings Directive (2001/23/EC) and the collective redundancies Directive(98/59/EC).

    Information and consultation

    The Commission will consolidate the various existing provisions on worker information and consultation.

    Health and safety

    The Commission will issue a new five-year health and safety strategy, covering 2007 to 2012.

    Collective bargaining

    The Commission will issue a proposal for an optional framework for transnational collective bargaining at enterprise or sector level.

    A cohesive society

    The open method of coordination will be applied to health and long-term care from 2006.

    A debate on minimum income schemes will be initiated and the social partners will be consulted from 2005 onwards on how to improve schemes to combat poverty and social exclusion.

    2010 should be the European year of combating poverty and social exclusion.

    Diversity and non-discrimination

    In 2005, the Commission will issue a Communication on equality and non-discrimination. It will also issue a Communication on future developments in the area of gender equality, to follow on from the 2000-2005 framework strategy.

    The Commission will propose the establishment of a European gender institute.

    2007 will be the European year of equal opportunities.

    Monitoring

    An annual forum, bringing together all relevant players, will evaluate the implementation of the social agenda.