Explanatory Memorandum to COM(1998)322-2 - Amendment of Decision 70/532/EEC setting up the Standing Committee on Employment in the EC

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1. The Commission has an obligation to promote dialogue between management and labour under Article 118b of the Treaty. It receives input from the sectoral social partners on Community policy through consultations on a number of social policy initiatives and, in the sectors where there is a common policy, on the formulation and implementation of sectoral policies. The sector-specific consultations are aimed at improving and harmonizing working conditions and also, in some cases, improving the economic and competitive position of the sector concerned. This work is carried out in sectoral committees, either set up on a formal basis, Joint-Committees, or in informal working groups.

2. The Commission adopted in September 1996 a consultation Communication (COM(96) 448 final of 18 September 1996 concerning the development of the social dialogue at Community level) in order to gather as wide a range of views as possible on the means to be employed to promote and developing the European social dialogue. In this document the Commission pointed out that the Joint Committees and informal working groups have become over-institutionalized or have retained operational methods which have outlived their usefulness. It asked therefore the views on the organization and responsibilities for sectoral dialogue.

3. During 1997 more than 80 detailed replies were received from employers’ and workers’ European and national organizations, European institutions (See the European Parliament Resolution on the Commission Communication “Concerning the development of the social dialogue at Community level COM(96) 448 final” of 18 July 1997 and the Opinion of the Economic and Social Committee on the same issue adopted on 29-30 January 1997) and from national authorities. A European Forum was held in the Hague in April 1997 for a debate on the future of social dialogue at European level.

4. Most respondents agreed with the Commission conclusion that the current structures often hinder positive developments. A more harmonized approach needs to be taken to the structures supporting the sectoral dialogue with a view to ensuring a more equitable treatment of the different sectors of activity and to enable all sectors to contribute in the most effective and substantial way to the development of the relevant Community policies. The Commission should be prepared to respond to the requests of the sectors willing to make a significant joint contribution.

5. Therefore, in order to improve the input of the sectoral dialogue in quantitative and qualitative terms, giving an increased added value at European level, it is necessary to replace the existing structures and encourage a more efficient dialogue. The operating procedures will be streamlined: one high-level plenary meeting each year, a restricted social partner delegation, reimbursement for maximum 15 participants from each side. The Commission, through the DG most concerned with the issues on the agenda or DG V, will provide secretarial services; the meetings will normally be chaired by a delegate of the employers or employees, but a representative of the Commission will take the chair if both parties jointly ask it to do so. Each sector will be firmly supported through a partnership between DG V and the other relevant DGs, including fmproved technical backup for the preparation of and follow-up to meetings.

COMMISSION DECISION

1.

of 20 May 1998


on the establishment of Sectoral Dialogue Committees promoting the Dialogue between

the social partners at European level

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Whereas Article 118b of the Treaty states that the Commission is to endeavour to develop the dialogue between management and labour at European level which could, if the two sides consider it desirable, lead to relations based on agreement;

Whereas point 12 of the Community Charter of the Fundamental Social Rights of Workers states that employers or employers organization, on the one hand, and workers' organizations, on the other, should have the right to negotiate and conclude collective agreements under the conditions laid down by national legislation and practice. The dialogue between the two sides of industry at European level which is to be developed, may, if the parties deem it desirable, result in contractual relations in particular at inter-occupational and sectoral level;

Whereas the Commission in response to the Communication of 18 September 1996 concerning the development of the social dialogue at Community level21 received a strong support from all involved parties in its suggestion to strengthen the sectoral social dialogue;

Whereas the European Parliament, in its Resolution of 18 July 199722, responding to that Commission Communication, called for a specific importance to be attached to the sectoral social dialogue since the impact of regulation and/or deregulation on employment in the economic sectors can best be assessed within the sectoral dialogue;

Whereas the Economic and Social Committee in its opinion of 29 January 199723, responding to that Commission Communication, stated that the sectoral dialogue must be effective, efficient and well-directed;

Whereas the situation in the various Member States clearly demonstrates the need for the two sides of industry to participate actively in discussions on the improvement of living and working conditions in their sector; whereas a sectoral dialogue committee attached to the Commission is the most appropriate means of ensuring such participation, by creating at Community level a representative forum for the socio-economic interests involved;

Whereas the Commission should endeavour to ensure that the membership and the activities of the Sectoral Dialogue Committees contribute to the promotion of equality between women and men;

COM(96) 448 final.

OJ C 286, 22.9.1997, p. 338. OJ C 89, 19.3.1997, p. 27.

Whereas the existing Joint Committees should be replaced by the Sectoral Dialogue Committees; whereas the Decisions establishing those Committees should therefore be repealed,

HAS DECIDED AS FOLLOWS:

Article 1

Sectoral Dialogue Committees (hereinafter referred to as 'the Committees') are hereby established in those sectors where the social partners make a joint request to take part in a dialogue at European level, and where the organizations representing both sides of industry fulfil the following criteria:

(a) they shall relate to specific sectors or categories and be organized at European level;

(b) they shall consist of organizations which are themselves an integral and recognized part of Member States’ social partner structures and have the capacity to negotiate agreements, and which are representative of several Member States;

(c) they shall have adequate structures to ensure their effective participation in the work of the Committees.

Article 2

Each Committee shall, for the sector of activity for which it is established,

(a) be consulted on developments at Community level having social implications, and

(b) develop and promote the social dialogue at sectoral level.

Article 3

The representatives of the two sides of industry taking part in the meetings of each Committee shall number a maximum of 40 in all, with an equal number of representatives of the employers' and workers' delegations.

Article 4

The Commission shall invite the representatives to participate in the meetings of the Committees on a proposal from the social partner organizations which have made the request set out in Article 1.

Article 5

1. Each Committee shall, together with the Commission, establish its own rules of procedure.

2. The Committees shall be chaired by a representative of the employers’ or employees’ delegations or, at their joint request, by a representative of the Commission.

3. The Committees shall meet at least once a year. A maximum of 30 representatives drawn from the two sides of industry taking part in a meeting of a Committee shall receive subsistence allowance and travelling expenses.

4. The Commission shall regularly review, in consultation with the social partners, the functioning of the Sectoral Committees and the pursuit of their activities in the different sectors.

Article 6

If the Commission has informed a Committee that a subject discussed relates to a matter of a confidential nature, members of the Committee shall be bound, without prejudice to the provisions of Article 214 of the Treaty, not to disclose any information acquired at the meetings of the Committee or its secretariat.

Article 7

1. The Sectoral Dialogue Committees shall replace the existing Joint Committees,

2.

namely: *


(a) Joint Committee on Maritime Transport established by

Commission Decision 87/467/EEC24;

(b) Joint Committee on Civil Aviation established by Commission

Decision 90/449/EEC25;

(c) Joint Committee on Inland Navigation established by

Commission Decision 80/991/EEC26;

(d) Joint Committee on Road Transport established by Commission

Decision 85/516/EEC27;

(e) Joint Committee on Railways established by Commission Decision 85/13/EEC28;

(fj Joint Committee on Telecommunications Services established by Commission Decision 90/450/EEC29;

(g) Joint Committee on Social Problems of Agricultural Workers established by Commission Decision 74/442/EEC30;

29

30

OJ L 253, 4.9.1987, p. 20. OJL 230, 24.8.1990, p. 22. OJ L297, 6.11.1980, p. 28. OJ L 317, 28.11.1985, p. 33. OJ L 8, 10.1.1985, p. 26. OJL 230, 24.8.1990, p. 25. OJ L243, 5.9.1974, p. 22.

(h) Joint Committee on Social Problems in Sea Fishing established by Commission Decision 74/441 /EEC31.

(i) Joint Committee on Postal services established by Commission Decision 94/595/EC32.

However, the Committees established by those decisions shall remain in office until the Sectoral Committees established by this Decision take office, but in any event no later than 31 December 1998.

2. Subject to Article 1, the Sectoral Dialogue Committee shall also replace other informal working groups through which the Commission has heretofore promoted the social dialogue in certain sectors not covered by a Commission decision establishing a Joint Committee.

3. The Decisions referred to in points (a) to (i) of paragraph 1 are repealed with effect from 1 January 1999.

For the Commission

Done at Brussels, 20 May 1998

Padraig FLYNN Member of the Commission

31

32

OJL 243, 5.9.1974, p. 19. OJL 225, 31.8.1994, p. 31.

Draft

COUNCIL DECISION

amending Decision 70/532/EEC setting up the Standing Committee on Employment

in the European Communities

EXPLANATORY MEMORANDUM

1. Tripartite discussion on employment takes place at meetings between representatives of the social partners, the Council and the Commission. The purpose, in addition to the specific priorities of each of the parties, is to determine shared objectives. The key body at European level has been the Standing Committee on Employment, set up in 1970 (Council Decision 70/532/EEC as amended by Decision 75/62/EEC).

2. There has been quite a lot of criticism of the operation of this Committee as it now stands. Most of the Committee members agree that its operations are out-of-date: as are the membership, the working methods and the use to which its results are put.

3. Moreover, the context for tripartite dialogue at Community level has been transformed in recent years:

- the tripartite approach has become more relevant in a number of the Member States involved in the conclusion of employment pacts;

- in the recent debates on flanking measures for industrial restructuring, partnership has been considered one of the most important approaches that should be promoted;

- the incorporation of a new employment title in the Amsterdam Treaty and the application of these arrangements (see the Council Resolution on the 1998 Employment Guidelines adopted on 15 December 1997, OJ C 30, 28.1.1998, pp. 1-5) has changed the direction of the tripartite dialogue.

Furthermore, recent initiatives to encourage new forms of tripartite dialogue have led to an increase of fora, in parallel to the meetings at Ministerial level within the framework of the Standing Committee on Employment, where the Council and the social partners meet to discuss employment issues, such as the meetings between the Employment and Labour Market Committee Steering Group and the social partners, and the meetings between the Troika of Ministers and/or Heads of State and the social partners.

4. These developments and the undisputed lack of efficiency of the Standing Committee in its present form require a new rationalized process allowing the social partners to contribute in the most effective way to the development and implementation to the Employment Guidelines and Broad

, Economic Orientations. The Commission proposal for the amendment of the current Council Decision will accordingly limit the number of participants in the meetings, update the membership of the social partners taking into account successive enlargements of the Community and developments affecting the representative organizations. It will also give the necessary flexibility in order for the Committee meetings to be directly linked to the new employment process.

The Commission’s comments on the sole Article in its proposal are given below:

5. As regards the amendment to Article 2fD of Decision 70/532/EEC

First, this amendment confines itself to reflecting the change in the membership of the Committee which is made in the amendments introduced in Article 2. Secondly, it stipulates that the Committee shall meet twice a year. This replaces the earlier obligation for the Committee to “fulfil its tasks before any measures are adopted by the relevant institutions”. This change reflects the important role the social partners should play in the new process on employment as set out in the conclusions of the European Council meeting on employment held on 20-21 November 1997 (p. 19) (The Luxembourg Jobs Summit).

6. As regards the amendment to Article 2(2) of Decision 70/532/EEC

This amendment gives the necessary flexibility for each Presidency of the Union to choose the most appropriate form for discussing employment with the social partners; either the full Council or the Troika of Heads of States or Governments as set out in the conclusions to the Luxembourg Jobs Summit (P- 19).

7. As regards the amendment to Article 2(3) of Decision 70/532/EEC

This amendment firstly reduces the number of social partner participants from 36 to 16 in order to allow for a more effective form of meeting. Secondly, it replaces the function of the Annex in the former decision as it stipulates which social partner organizations are to take part in the work of the Committee. The social partner organizations are selected so that each social partner delegation covers the whole economy, and include European organizations, representing either general interests or more specific interests of supervisory and professional staff and small and medium-sized businesses.

8. As regards the amendments to Article 2 i and deleting the Annex to

Decision 70/532/EEC

This amendment reflects the reduction of participants from the social partner delegations.

Draft

COUNCIL DECISION

amending Decision 70/532/EEC setting up the Standing Committee on Employment in

the European Communities

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 145 thereof,

Whereas the European Parliament in its Resolution of 18 July 199733 on the Commission Communication of 18 September 1996 concerning the development of the social dialogue at Community level34 called for the Standing Committee on Employment to be reformed as a matter of urgency;

Whereas the Economic and Social Committee in its opinion of 29 January 199735 on the same Commission Communication stated that the Standing Committee on Employment was to be given a higher profile;

Whereas the Council in its Resolution of 15 December 1997 on the 1998 Employment Guidelines36 emphasized the need to associate the social partners in employment strategy;

Whereas the Commission in its Communication of 20 May 1998 "Adapting and Promoting the Social Dialogue at Community level"37 underlined the importance of adapting the composition and working methods of the Standing Committee on Employment to the new environment;

Whereas in its conclusions to the Intergovernmental Conference held at Florence on 21 and 22 June 1996, the European Council reaffirmed the importance to promoting employment and reducing the unacceptably high levels of unemployment in Europe, particularly for young people, the long-term unemployed and the low-skilled;

Whereas the European Council emphasized at its extraordinary summit on employment held in Luxembourg on 20-21 November 1997 that, as part of the necessary strengthening of the social dialogue, the social partners at all levels would be involved in all stages of this new strategy and would have their contribution to make to the implementation of the guidelines;

Whereas Council Decision 70/532/EEC38, as last amended by Decision 75/62/EEC39, should therefore be amended accordingly,

OJ C 286, 22.9.1997, p. 338. COM(96) 448 final.

OJ C 89, 19.3.1997, p. 27. OJ 0 30,28.1.1998, p. 1. COM(1998) 322 final.

OJ 273, 17.12.1970, p. 25. OJ 21, 28.1.1975, p. 17.

HAS DECIDED AS FOLLOWS:

Sole Article

Decision 70/532/EEC is amended as follows:

1. In Article 2, paragraphs 1 to 4 are replaced by the following:

"1. The task of the Committee shall be to ensure, in compliance with the Treaties and with due regard for the powers of the institutions and organs of the Communities, that there shall be continuous dialogue, joint action and consultation between the Council - or the 'troika' of Heads of State or Government - the Commission and the two sides of industry in order to facilitate coordination by the Member States of their employment policies in harmony with the objectives of the Community.

The Committee shall meet twice a year.

2. The following parties shall take part in the work of the Committee:

- either the Council or the "troika" of Heads of State or Government;

- the Commission;

- employers' organizations;

- workers' organizations.

3. There shall be eight representatives from each of the two sides of industry, each delegation covering the whole economy, being composed of European organizations, representing either general interests or more specific interests of supervisory and professional staff and small and medium-sized businesses. The designation of the employees' delegation (ETUC, CEC) shall be coordinated by the European trade union confederation (ETUC), and the designation of the employers' delegation (UNICE, CEEP, UEAPME, Eurocommerce, COP A) shall be coordinated by the union of industries of the European Community (UNICE).

4. Each of the parties taking part in the work of the Committee shall appoint its representatives at its own discretion either for a specified period or, depending on the matters to be dealt with, for specific meetings."

2. The Annex is deleted.

Done at Brussels,

For the Council The President

FINANCIAL STATEMENT

1. TITLE OF OPERATION

Sectoral dialogue committees

2. BUDGET HEADING INVOLVED

Part A of the budget only

3. LEGAL BASIS

Treaty on European Union, in particular Article 118b thereof and Article 3 of the Agreement on social policy

4. DESCRIPTION OF OPERATION

4.1 General objective

The Commission is presenting a proposal for the rationalization of the existing committees and groups in the field of sectoral social dialogue. The objectives are to provide a single structure for social dialogue and reduce the administrative burden on the existing joint committees. Rationalization will make it possible to meet the demands from new sectors for participation in the social dialogue without increasing the available resources. It will also involve changes to the joint committees’ statutes.

4.2 Period covered and arrangements for renewal or extension

Unlimited

5. CLASSIFICATION OF EXPENDITURE OR REVENUE

5.1 Non-compulsory expenditure

5.2 Non-differentiated appropriations

5.3 Type of revenue involved: None

6. TYPE OF EXPENDITURE OR REVENUE

Expenditure consists mainly of the costs involved in organizing sectoral social dialogue meetings, i.e. hiring of rooms, reimbursement of employers’ and workers’ travel expenses, and interpreting.

FINANCIAL IMPACT

7.

NO IMPACT AS REGARDS PART B OF THE BUDGET

7.1 Method of calculating total cost of operation (link between unit costs and total cost

Rationalization and changes to the statutes of the sectoral social dialogue committees will not give rise to any new needs in terms of financial or other resources.

7.2 Itemized breakdown of cost

EC in ECU million (current prices)
BreakdownBudget year nn+ 1n + 5 and subs, yrsTotal
*
Total

7.3 Operational expenditure (studies, experts, etc.) included in Part B of the budget

EC in ECU million (current prices)
BreakdownBudget year nn+ 1n + 5 and subs, yrsTotal
- Studies

- Meetings of experts

- Conferences and congresses

- Information and publications
Total

7.4 Schedule of commitment and payment appropriations

EC in ECU million
Year nn+ 1n + 5

and

subs, yrs
Total
Commitment

appropriations
Payment

appropriations
Year n
n + 1
n + 5 and subs, yrs
Total

8. FRAUD PREVENTION MEASURES

Given the type of expenditure planned (organization of meetings), no measures are envisaged, apart from the usual checks on requests for reimbursement of participants’ travel, hotel and subsistence expenses.

9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS

9.1 Specific and quantified objectives; target population

The intention is to allow the sectoral social partners to develop a social dialogue with a view to entering into agreements.

The target population consists of the social partners’ organizations at sectoral level and members of organizations in line with the principle of representativeness.

9.2 Grounds for the operation

The sectoral social dialogue has been constantly enhancing its input at European level. In order for this development to continue and to improve the input in quantitative and qualitative terms, giving an increased added value at European level, it is necessary to replace the existing structures and encourage an efficient political dialogue rather than highly formalized exchanges of position.

The Commission will establish a new framework within which the sectoral dialogue can continue its development. This framework will be applicable on the same terms to all sectors wishing to take part in social dialogue and will be easily extendible to new sectors.

The new committees will constitute the key forum for sectoral dialogue (consultation, joint action and negotiations) and be set up in all sectors which submit a joint request and are sufficiently well-organized with a meaningful European presence in line with the established criteria of representativeness.

9.3 Monitoring and evaluation of the operation

Meeting organization facilities will be made available to the various committees in accordance with their annual work programmes.

Texts jointly adopted by the social partners as a result of the committees’ activities will be made public and will be disseminated both within the Community Institutions and within the Member States, particularly to the members of the national social partners’ organizations.

The results of the social dialogue and hence of the functioning of these committees will be judged mainly by the employers’ and workers’ electorates in the context of social elections or other electoral procedures used to appoint workers’ and employers’ representatives.

The Commission will also describe the outcome of the sectoral committees’ activities in its annual social dialogue report.

10. ADMINISTRATIVE EXPENDITURE (PART A OF THE BUDGET)

The actual mobilization of the necessary administrative resources will depend on the Commission’s annual decision on the allocation of resources, taking account in particular of the additional staff and sums approved by the budget authority.

10.1 Effect on the number of staff

No additional staff required

The following table thus refers to the staff already deployed. The operation will necessitate internal reallocations in the distribution of tasks.

Types of staffStaff to be assigned to managing the operationOf whichDuration
Permanent

staff
TemDorarv

staff
Using existing resources

within the DG or service concerned
Using

supplementary

resources
Officials orA9110
temporary
agents
B11
C22
Other resources11
A-7001
Total12214Indefinite

10.2 Overall financial impact of human resources

No additional staff required

The following table thus refers to the staff already deployed. The operation will necessitate internal reallocations in the distribution of tasks.

(ECU)
AmountsCalculation method
Officials*1 296 00012 x 108 000= 1 296 000
Temporary agents108 0001 x 108 000 = 108 000
Other resources (A-7001)43 0001 x 43 000 = 43 000
Total1 447 000

Using available resources allocated to management of the operation (calculation based on titles A-l, A-2, A-4, A-5 and A-7)

10.3 Financial impact of other operating expenditure involved in the operation

(ECU)
Budget line (number and heading)AmountsCalculation method
A-7032 committee1 265 040ECU 753 per participant on average x
meetingsmaximum 30 participants per meeting
x minimum 56 meetings
Total1 265 000

The amount indicated, which covers all the sectoral dialogue committees to be established, will be taken from the DG V budget.

ISSN 0254-1475

COM i 322 final
DOCUMENTS

EN

05 01

Catalogue number : CB-CO-98-355-EN-C

ISBN 92-78-36861-X

Office for Official Publications of the European Communities L-2985 Luxembourg

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1

Copy of the letter to the ETUC.