Source: European Parliament

The European Parliament,

–  having regard to the Treaty on the Functioning of the European Union, in particular Articles 151 and 153 thereof,

–  having regard to the European Pillar of Social Rights,

–  having regard to its resolution of 5 October 2016 on the need for a European reindustrialisation policy in light of the recent Caterpillar and Alstom cases(1),

–  having regard to its resolution of 15 January 2013 with recommendations to the Commission on information and consultation of workers, anticipation and management of restructuring(2),

–  having regard to its resolution of 16 December 2021 on democracy at work: a European framework for employees’ participation rights and the revision of the European Works Council Directive(3),

–  having regard to its resolution of 23 November 2023 on job creation – the just transition and impact investments(4),

–  having regard to its resolution of 2 February 2023 with recommendations to the Commission on Revision of European Works Councils Directive(5),

–  having regard to the International Labour Organization’s (ILO) 2015 guidelines for a just transition towards environmentally sustainable economies and societies for all,

–  having regard to the La Hulpe Declaration on the future of the European Pillar of Social Rights of 16 April 2024,

–  having regard to the Tripartite Declaration for a Thriving European Social Dialogue of January 2024(6),

–  having regard to the Council Recommendation of 16 June 2022 on ensuring a fair transition towards climate neutrality(7),

–  having regard to the Commission communication of 11 December 2019 entitled ‘The European Green Deal’ (COM(2019)0640),

–  having regard to Regulation (EU) 2021/1056 of the European Parliament and of the Council of 24 June 2021 establishing the Just Transition Fund(8),

–  having regard to the Commission communication of 1 July 2020 entitled ‘European Skills Agenda for sustainable competitiveness, social fairness and resilience’ (COM(2020)0274),

–  having regard to the opinion of the European Committee of the Regions of 25 May 2023 on zero long-term unemployment: the local and regional perspective(9),

–  having regard to the Commission communication of 1 February 2023 entitled ‘A Green Deal Industrial Plan for the Net-Zero Age’ (COM(2023)0062),

–  having regard to Rule 136(2) of its Rules of Procedure,

–  having regard to the motion for a resolution of the Committee on Employment and Social Affairs,

A.  whereas the transition to a green, digital and competitive European economy is necessary to maintain the European social model, but can itself only be achieved if people are sufficiently protected from the potential adverse social consequences of major economic changes; whereas protecting the environment and climate is imperative for long-term prosperity and well-being;

B.  whereas social dialogue, collective bargaining and strong trade union involvement are essential for ensuring workers’ information and consultation rights during restructuring processes; whereas workers’ involvement through information-sharing, consultation and participation in company decision-making processes is more important than ever to ensure a fair and just transition, competitiveness, and the economic growth of companies and to protect jobs and workers’ collective interests, such as decent working conditions, fair wages and equal treatment; whereas the just transition is about supporting social justice and upward social convergence and ensuring fair burden-sharing, while safeguarding a sustainable, resource-efficient and competitive economy, reaching climate neutrality and fighting climate change;

C.  whereas restructuring processes can lead to both job losses and job gains and can include and take different forms, such as internal restructuring, business expansion, closure, bankruptcy, merger/acquisition, offshoring/delocalisation, outsourcing, relocation and reshoring; whereas Council Directives 98/59/EC(10), 2001/23/EC(11) and 2002/14/EC(12) lay down the information and consultation rights of workers in the event of the restructuring of enterprises;

D.  whereas only 40 % of European trade unions report having sufficient resources to represent workers effectively during restructuring processes(13); whereas trade union representatives trained in restructuring negotiations are 50 % more effective in preserving jobs(14); whereas, according to Eurofound, a lack of resources and skills, as well as time, have been identified as a key obstacle for social partner engagement in shaping the just transition, particularly at the local and regional levels; whereas the capacity of European Works Councils to influence restructuring processes is found to be limited and needs to be further strengthened;

E.  whereas it is essential to ensure job creation and decent working conditions, supporting the transition to a sustainable and profitable economy, long-term economic viability and environmental sustainability; whereas the transformation of our industrial base provides an opportunity to strengthen European autonomy, reverse deindustrialisation, create secure and stable jobs and help us meet climate and environmental targets, while protecting workers’ rights and people at the heart of a social Europe; whereas retraining funding for workers made redundant as a result of large-scale restructuring has been provided through the European Globalisation Adjustment Fund, benefitting thousands of European workers;

F.  whereas companies that are restructuring should prioritise long-term objectives, such as economic sustainability and long-term employment stability, in combination with other objectives such as economic profits, while strengthening trade union involvement and corporate social responsibility in their restructuring plans; whereas small and medium-sized enterprises (SMEs) in particular should be supported in this;

G.  whereas shortages of skilled workers, including vocationally trained experts, in key sectors are a significant obstacle to the competitiveness of the EU economy and its ability to accomplish the green and digital transitions;

H.  whereas the manufacturing industry, including the automotive, steel and microchips and semiconductors sectors, is one of the vital economic pillars in Europe; whereas these sectors provide millions of direct and indirect jobs;

I.  whereas it is important to move towards the decarbonisation of road transport, which must be achieved in such a way as to limit job losses in the car industry, and to include all stakeholders and social partners in the transformation process; whereas affected workers should be supported by providing upskilling, reskilling and training opportunities and relevant safety nets in the event of temporary unemployment;

1.  Underlines the principles of the European Pillar of Social Rights and, in particular, principle 5 on secure and adaptable employment, including the right to fair and equal treatment regarding working conditions, principle 7 on information about employment conditions and protection in case of dismissals and principle 8 on social dialogue and involvement of workers; stresses the urgent need for an ambitious competitive European industrial policy with significant investment that will support the services of general interest(15) and innovation, while reducing the administrative burden in Member States, and deliver quality jobs in every region and sector, strengthen social progress and meet climate targets; underlines that this policy should be combined with resilient and strong national public services, such as access to social protection, decent and affordable housing, affordable, efficient and climate neutral transport, affordable and available childcare, elderly care, and support for people with disabilities;

2.  Recognises that the EU needs to reform its economy in order to maintain its competitiveness and achieve the green and digital transitions, including through a European industrial policy; welcomes the establishment of a European Competitiveness Fund, as envisaged by the President of the European Commission Ursula von der Leyen; reiterates its call for the economic governance framework to be strengthened by a common investment instrument(16) at EU level in order to achieve the EU’s current and future priorities, including the implementation of the European Pillar of Social Rights; believes that such an instrument should ensure that the necessary resources are available in all relevant sectors for developing an industrial policy and for policies that support the protection and creation of quality jobs and that contribute to upward social convergence; reiterates its previous call on the Commission and the Council to reinforce the European instrument for temporary support to mitigate unemployment risks in an emergency instrument (SURE) to support short-time work schemes, workers’ income and workers who would be temporarily laid off in the context of the green transition, while taking into account the outcome of the final evaluation report and considering that SURE saved 40 million jobs(17);

3.  Highlights that the delivery of a European industrial policy for quality jobs requires the full involvement of social partners and needs to be implemented through social dialogue and collective bargaining; calls on the Commission to present an ambitious quality jobs roadmap and to implement the principles of the European Pillar of Social Rights; calls on the Commission to ensure the full involvement and consultation of social partners in the design and implementation of the upcoming European clean industrial deal and to include the overall objective of ensuring job quality and stability at EU level;

4.  Calls for the EU to adopt trade policies that promote and protect quality jobs; stresses that future trade agreements must include labour clauses in line with ILO standards to ensure that global trade protects workers and SMEs;

5.  Urges the Commission in the context of the forthcoming revision of the European Public Procurement Directive(18) to further promote collective bargaining and the use of the social clause, and preferential treatment for companies whose workers are covered by collective agreements; underlines that contracting authorities must exclude from public tenders economic operators that have engaged in criminal activities; maintains that public procurement should strategically strengthen corporate social responsibility; highlights the importance of ensuring that European and national funds are used to facilitate the transition to a climate-neutral economy, including by promoting social dialogue and collective bargaining; considers, furthermore, that no EU financial support should go to undertakings that do not comply with the applicable working and employment conditions and/or employer obligations resulting from EU or national labour law or the relevant collective agreements; believes that this support should also be used to promote European industrial competiveness and the creation of quality jobs in the EU and promote collective bargaining and compliance with EU and national labour rights and laws, including decent working conditions; calls for EU funding and State aid by Member States to be aligned with a European industrial policy, in order to offer high-quality jobs, promote collective bargaining, respect of EU labour rights and standards, improve the competitiveness of European businesses and ensure improved working conditions;

6.  Calls for European investments in vital sectors and essential products to strengthen the EU’s strategic autonomy, as well as the digital and green transitions, such as zero-emission transport, renewable energy, clean tech and digital technologies, including artificial intelligence; insists that these investments must fully respect existing legislation on workers’ rights and strengthen community development;

7.  Invites the Commission to monitor the trends in restructuring and their impact on employment, using data from tools such as the European Restructuring Monitor and the EU Fair Transition Observatory, which should be launched in 2025, to track the number of jobs created or lost and the companies concerned;

8.  Acknowledges that achieving digital and green objectives will create opportunities and might at the same time require transformations or restructuring processes in many sectors; stresses that social dialogue in the anticipation and management of these processes is essential to safeguard and create quality jobs and manage unavoidable job losses with enough support and can contribute to achieving a climate-neutral economy that sustains its social, economic and environmental standards; highlights that restructuring processes must respect fundamental workers’ rights, such as the right of information and consultation; calls on the Commission and the Member States to take action to reinforce and promote collective bargaining, in full respect of the autonomy of the social partners and of the right of collective bargaining; emphasises that workers should be beneficiaries of restructuring, including when they transfer to a new equivalent job within their current firm or sector, or as they reskill to transfer to a job in a future-proof sector, all while being adequately assisted and compensated;

9.  Emphasises that developments leading to restructuring processes should be anticipated by management, and plans for changes should start as early as possible to prevent insolvency and job losses, while involving workers’ representatives and trade unions at an early stage to ensure meaningful social dialogue, including in the case of preventive restructuring frameworks as provided for in Directive (EU) 2019/1023(19); calls on the Commission and the Member States to work in close cooperation with social partners to identify risks early and develop comprehensive plans to address employment and economic stability needs; supports, in that regard, investment in the training and capacity building of trade unions and workers’ representatives engaged in restructuring processes;

10.  Stresses that restructuring processes also have an impact on the supply chain and can pose a considerable risk to indirect employment across the EU; calls on the Commission and the Member States to support companies, including SMEs, undergoing restructuring processes in order to integrate into their plans the impacts on other European companies in their supply chain; further calls on the Commission and the Member States to support companies indirectly impacted by these restructuring processes to mitigate the consequences on employment;

11.   Stresses that the EU must address shortages of skilled workers in strategic sectors in order to enhance its competitiveness; points out that addressing skills shortages and supporting workers who need to transition to a new job following a restructuring process are complementary objectives; emphasises the fact that sufficient access to reskilling and upskilling is a precondition for a successful transition to a new job in another sector; urges the Commission to take account of this in its proposals for a clean industrial deal and the Union of skills, including by expanding the role of Centres of Vocational Excellence; calls on the Commission to improve the recognition of skills across Member States and to ensure that its programmes better address the needs of vocationally trained experts;

12.  Underlines that restructuring processes must not be used as a pretext to violate workers’ information and consultation rights, as well as the right of collective bargaining and trade union rights(20); deplores the violation of the fundamental rights of collective bargaining and of information and consultation before a decision is made; believes trade unions should be equipped with sufficient resources and capacity to assess a company’s decision to restructure and to engage the support of an independent expert; calls on the Commission, the Member States and the social partners to put in place further safeguards to ensure collective bargaining and to prevent the misuse of restructuring processes as a means to forego employers’ obligations; underlines that penalties should be imposed in instances of infringements and non-compliance;

13.  Is alarmed that European company law provisions, as well as their interpretation in some legal cases, are creating loopholes and are enabling the circumvention of mandatory national board-level participation rules(21);

14.  Emphasises that one of the most effective ways to prevent the need for restructuring is through the proactive anticipation and management of change through collective bargaining and information and consultation; urges the Member States to ensure quality upskilling or reskilling, life-long learning, employee training and career development support; points out that upskilling and reskilling should be prioritised as far as possible before job cuts are considered;

15.  Underlines that gender equality should be an integral part of transition strategies and should be mainstreamed across related policy and legislative measures to strengthen the fairness of our societies; believes it is essential to ensure equal treatment and equal access to economic opportunities for women, paying attention to the most vulnerable, such as women with disabilities, single mothers, women belonging to minorities and migrant women;

16.  Considers that an industrial plan agreed with the social partners is essential to promote the economic viability of European industrial companies and, in the worst case, prevent closures and forced redundancies; calls on the Commission and the Member States to support companies, in particular SMEs, to prevent forced redundancies; calls on the Commission and the Member States to put in place mechanisms that help to avoid forced redundancies, such as temporary support programmes to protect employment during transitions, avoiding the loss of strategic industrial capacity and skilled workforces; calls on European enterprises and employers in the process of restructuring to devise and implement plans at an early stage in order to avoid job losses and maintain decent working conditions and high social standards, to the extent that this is possible; demands stronger protections against unfair dismissals and demands the necessary support for workers affected by restructuring to give them access to retraining opportunities and support, such as income support, including while searching for new employment; reaffirms that the dignity and rights of workers as well as the economic and financial sustainability of the company are important objectives to consider in the context of restructuring processes;

17.  Welcomes the Commission’s announcement that it will propose a clean industrial deal that, in addition to speeding up decarbonisation, maintains and creates quality jobs in the green and digital sectors in the EU; emphasises that the clean industrial deal should focus on strategic industries, avoiding the delocalisation of production and loss of jobs, while strengthening the European social model and social justice;

18.  Calls on the Commission, in close collaboration with the social partners, to consider the establishment of a framework directive to address the challenges and complexities associated with employers’ obligations in subcontracting chains and labour intermediaries in Europe to ensure decent working conditions and the respect of worker’s rights; calls for the framework directive to include measures regulating the role of labour intermediaries, other than temporary work agencies, and to introduce an EU general legal framework limiting subcontracting and ensuring joint and several liability through the subcontracting chain, in order to end abusive subcontracting and protect workers’ rights and their claims over issues such as wage arrears, the non-payment of social contributions, bankruptcy, disappearances and ‘letterbox subcontractors’ who do not pay as agreed; calls for this directive to include provisions ensuring the respect of information and consultation rights and the right to collective bargaining, including for subcontracted workers;

19.  Calls on the Commission and the Member States to support the social partners in their efforts to include issues related to the green transition in collective bargaining at the appropriate levels; highlights that collective agreements can cover the impact of an undertaking’s activities on the environment, the protection of workers from the effects of climate change and the impact of the green transition on working conditions; calls on the EU and the Member States to further support actions and initiatives that will incentivise employers and workers to adapt to the green transition and to make collective bargaining a key tool for ensuring balanced production models that protect the environment and create quality jobs;

20.  Instructs its President to forward this resolution to the Council and the Commission.