Commission staff working document
: TRANSNATIONAL COMPANY AGREEMENTS AND RESTRUCTURING
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- 3.2: ADDRESSING SPECIFIC RESTRUCTURING EVENTS
- 3.3: SOCIALLY RESPONSIBLE MANAGEMENT OF FUTURE RESTRUCTURING
- 3.4: ANTICIPATING CHANGE
- 3.5: ADDRESSING RESTRUCTURING IN GLOBAL AGREEMENTS
- 3.6: COMMISSION’S ROLE IN PROMOTING TRANSNATIONAL COMPANY AGREEMENTS
3: TRANSNATIONAL COMPANY AGREEMENTS AND RESTRUCTURING3.1: AN EMERGING PHENOMENONSince the early 2000s, there has been an increasing tendency for multinational companies, and especially those headquartered in Europe (or with major European operations), to engage in transnational negotiating activity with workers’ representatives, resulting in the conclusion of agreements dealing with issues common to all or some of the countries where the multinational operates. Some 200 transnational company agreements (TCAs, a term used here also to include other transnational joint texts not labelled as agreements) have so far been recorded by the European Commission in around 100 companies employing a total of 9.8 million employees.124 TCAs may be of global scope or focus on European countries. On the employee side, their signatories are usually global or European trade union federations, European Works Councils (EWCs), or a combination of these parties, sometimes alongside national unions and works councils. While global TCAs typically focus on fundamental rights or aspects of corporate social responsibility, many TCAs with European scope tend to have as their core aim the establishment of partnerships to deal with company restructuring and anticipate change. Indeed, these agreements constitute some of the most innovative and positive examples of actions in this area. Here we outline the main ways in which TCAs deal with restructuring and change, often in a very innovative way. Broadly, they may:
3.2: ADDRESSING SPECIFIC RESTRUCTURING EVENTSA number of TCAs have been negotiated after the announcement of a specific restructuring plan, in order to lay down a set of guarantees for the employees affected by this operation, and sometimes also addressing economic issues. For example, specific circumstances have prompted the negotiation and adoption of TCAs at companies such as Danone (France, food) and DaimlerChrysler (at the stage when it was a single German/US automotive group), while a series of important European-level agreements on specific restructuring exercises have been concluded at General Motors and Ford (both US, automotive) since 2000, providing for alternatives to closures and dismissals as well as pan-European social guarantees. The most common contents of this type of specific restructuring agreement are set out below. Avoiding redundancies When plant closures and workforce reductions are planned, agreements often include commitments to avoid compulsory redundancies. For example, the series of agreements concluded at General Motors Europe played a key role in avoiding plant closures and large-scale, concentrated job losses between 2000 and 2010. Guarantees linked with transfer and redeployment When closures and/or redundancies are unavoidable, agreements sometimes provide for internal and/or external redeployment. Employees who are transferred after a plant closure often benefit from the maintenance of employment terms and conditions and/or job security. The same applies when employees are transferred to another company as a consequence of a spin-off, alliance or sale. Several TCAs of this type also contain a commitment to ensure the return of transferred employees in their former company in some circumstances. For an example of a recent agreement containing guarantees on transfer and redeployment for the integration of a branch of Areva in Alstom and Schneider Electric, see Box 4.4. Other accompanying measures Other accompanying measures are generally offered by agreements to employees affected by the restructuring plan, especially in the case of redundancies. These may include: part-time work programmes; outplacement assistance; support in starting up a business; compensation payments on termination of contract; compensation for shortfalls in earnings in a new job; training to attain the necessary skills to find jobs with a new employer; or a priority right of application in future new recruitment. Social and employment guarantees can also result indirectly from agreements’ provisions addressing economic issues, for example commitments to provide sourcing or investments. Procedural rules and social dialogue Agreements may provide for information, consultation and dialogue over the restructuring in question and, in cases of transfers, deal with the consequences for collective agreements and representation. For example, they may provide that the existing collective agreements will stay in force (one states that a divested company will join the industry’s employers’ association so that the relevant sectoral collective agreements will continue to apply). Some agreements contain rules on employee representation during the restructuring and/or after the transfer of employees, maintaining the rights of the EWC and national trade unions. Others adapt representation to the new situation or provide for the creation of a new EWC. An example of a TCA of this type is an agreement signed in March 2010 by Air France-KLM (Netherlands/France, civil aviation) and its EWC, which lays down the information and consultation arrangements to apply at various levels over the reorganisation of the airline’s sales agencies at European airports. Box 4.4: European agreement on social guarantees following the acquisition of Areva T&D Two France-based multinationals, Alstom (power) and Schneider Electric (electrical engineering), jointly acquired in 2010 the energy transmission and distribution (T&D) business of Areva (France, nuclear power). Alstom will integrate Areva’s transmission activities into its own operations, and Schneider Electric will integrate the distribution activities. In July 2010, Alstom and Schneider Electric signed a European agreement with the European Metalworkers’ Federation (EMF), which provides social guarantees for former Areva T&D employees and the rest of the Alstom and Schneider Electric workforces. The agreement guarantees former Areva T&D staff throughout Europe continued employment at Alstom or Schneider Electric in an equivalent job in the same geographical area, and on the same pay. There will be no compulsory redundancies before March 2013 affecting either the former Areva T&D staff or the existing Alstom and Schneider Electric employees in the same divisions, unless economic conditions deteriorate significantly. The agreement’s commitments to former Areva T&D employees will not be detrimental to other Alstom or Schneider Electric employees. The accord also sets out provisions on integration and training for former Areva T&D staff, social dialogue (including the integration of former Areva T&D activities into dialogue structures at all levels, including the Alstom and Schneider Electric EWCs) and collective bargaining (including the adaptation of agreements at Alstom and Schneider Electric to reflect those formerly applicable at Areva T&D). 3.3: SOCIALLY RESPONSIBLE MANAGEMENT OF FUTURE RESTRUCTURINGSome TCAs jointly plan for potential future restructuring in advance, setting out general rules and/or more concrete measures to apply to employees when restructuring occurs. Agreements of this type have, for example, been signed at Axa (France, insurance), Danone, Deutsche Bank (Germany, finance), Dexia (Belgium/France, finance), Diageo (UK, food and drink), EADS (Netherlands, aerospace), General Motors, RWE (Germany, utilities) and Total (France, petrochemicals). These agreements seek to ensure that restructuring occurs in a socially responsible manner, explaining the companies’ social and employment policy in the event of restructuring and change, and setting Europe-wide guidelines and minimum standards, often with a particular focus on business disposals. The aim is generally to promote job security and employability and to mitigate the impact of restructuring on employees. A recent agreement at ArcelorMittal contains provisions of this type (as well as on other aspects of restructuring) — see box 4.5. Avoiding redundancies In this type of agreement, companies often pledge to avoid, as far as possible, job losses and to seek alternatives to compulsory redundancies. These alternatives include: internal redeployment; geographical mobility; part-time work; redistribution and reduction of working hours; cuts in overtime; voluntary departures or early retirement (often with financial compensation). Accompanying measures In future cases where job reductions are unavoidable, agreements often stipulate accompanying measures, such as practical and financial assistance in internal and/or external redeployment, notably through vocational training and outplacement assistance. Where business disposals occur, agreements may provide for the maintenance of rights, employment terms and conditions, and pay-bargaining arrangements, or even give employees a right to return to the original employer within a certain period. Where plants close, some agreements provide for site rehabilitation aimed at creating new jobs or stimulate economic development (for example through consulting services, market or feasibility studies and financial assistance). Social dialogue procedures These agreements usually establish procedural rules on social dialogue over restructuring. The companies commit themselves to informing and consulting employee representatives — the EWC and/or local trade unions and representatives — on restructuring plans and their social impact. At the planning stage, one agreement provides for the company and workers’ representatives to examine potential business opportunities jointly in order to lessen the impact on employees and to favour joint ventures. Box 4.5: Managing and anticipating change at ArcelorMittal In November 2009, ArcelorMittal (Luxembourg, steel) and the European Metalworkers’ Federation (EMF) signed a European agreement on ‘managing and anticipating change’, prompted by the economic crisis and the global fall in demand for steel. The agreement both deals with the immediate effects of the crisis and lays down minimum Europe-wide principles with a view to anticipating and managing change in a socially responsible manner. The agreement commits ArcelorMittal to maintaining European plants currently temporarily closed because of the fall in demand and reopening them in future, while drawing up industrial plans for the future, covering matters such as: the upgrade and renewal of machinery and tools; the preservation of critical skills; and the role of key contractors. Compulsory redundancies will be avoided and workers will be trained during periods of short-time working. In a longer-term perspective, the agreement stipulates a range of policies aimed at anticipating changes in jobs and skills needs, and training and developing employees to improve their employability. It also promotes social dialogue on anticipation and management of change at local, national and European level, and creates a formal European-level union-management consultative committee. 3.4: ANTICIPATING CHANGEThe TCAs that seek to anticipate change and manage jobs and skills in a forward-looking way are among the most innovative company-level initiatives relating to restructuring. Rather than dealing with specific instances of restructuring or laying down principles or rules to guide future restructuring, they establish a long-term employment policy with a view to ensuring the future of employees, whatever organisational changes occur. Examples of such agreements have been signed at Danone, Dexia, Eni (Italy, energy), Schneider Electric, PSA Peugeot Citroën (France, automotive), Total, and Thales (France, technology). A recent example is at GDF Suez — see box 4.6. Planning Agreements of this type usually put in place a planning process to assess current and future jobs and training needs in a context of change, for example putting in place a system to monitor anticipated technological and labour market developments. Management of employment and skills Based on assessments of future developments in occupations and work, agreements seek to manage employment and skills. The Europe-wide agreement on this anticipation/training policy may take the form of a framework that sets orientations for subsequent national agreements, or contain more concrete and detailed provisions, dealing with matters such as:
Social dialogue procedures These agreements highlight the importance of information and consultation at European and local level in enabling an anticipatory social dialogue. They may enhance the scope of information given to the EWC, link the European dialogue with the information and consultation of representative bodies at local level, or establish specific committees at different levels. Box 4.6: European employment and expertise plan agreed at GDF Suez GDF Suez (France, energy and utilities) signed in February 2010 a European agreement introducing an ‘employment and expertise plan’, with a negotiating group made up of national trade union representatives and the European Federation of Public Service Unions (EPSU). The accord introduces a Europe-wide system of forward-looking management of jobs and skills. The agreement establishes a ‘stock-taking exercise’ of human resources, HR management systems and practices, and company activities in all GDF Suez subsidiaries, followed by regular monitoring, as a basis for forecasts of future employment and skill needs. It lays down Europe-wide principles and policies in areas such as career development, skills assessment, vocational training, internal advertising of vacancies, recruitment, equal opportunities, mobility, mentoring, older workers, and tackling the issues associated with physically demanding work. The agreement provides for information and consultation on relevant issues for the EWC and national employee representative bodies, and creates specific joint committees at European and national levels to monitor the employment and expertise plan. 3.5: ADDRESSING RESTRUCTURING IN GLOBAL AGREEMENTSMany TCAs, generally those with worldwide scope, are ‘global agreements’ or ‘international framework agreements’, dealing with fundamental workers’ rights and/or corporate social responsibility issues. Some of these agreements, while not specifically focusing on restructuring or accompanying and anticipating change, include references to these issues. Examples of such global agreements include those at EADS, EDF (France, electricity), Eni, Generali (Italy, insurance), Lukoil (Russia, energy), Rhodia (France, chemicals), Pfleiderer (Germany, wood) and Renault (France, automotive). A number of these agreements refer explicitly to the social management of restructuring by committing the company to: protecting jobs through training and mobility; minimising the impact of restructuring on employment and working conditions; ensuring the employability of employees in a long-term perspective; or providing for the information and consultation of employee representatives on restructuring. Some global agreements contain specific commitments by the company to anticipate, as far as possible, economic and industrial changes and their consequences in terms of human resources. The most common means of implementing this ‘anticipation principle’ include the management of skills and training, and a forward-looking and permanent social dialogue. Box: 4.7: Two examples of global agreements The international framework agreement at the German wood and by-product wholesaler Pfleiderer AG, signed in November 2010 between the company’s Works Council, the German metal union, IG Metall, and the Building and Wood Workers International (BWI), commits the company to respect the international labour standards of the International Labour Organisation (ILO) for all its employees. It also commits to applying, on its German sites and elsewhere, minimum standards in terms of working conditions, in keeping with the ILO’s international labour standards. The agreement, in the form of a social charter, also contains other commitments on the health and safety of workers, the protection of the environment, learning and vocational training, and a commitment to work only with contractors, sub-contractors and suppliers who recognise and implement these social principles. The international framework agreement at the European Aeronautic Defence and Space Company (EADS NV), which also dates from 2005, makes a commitment to promoting the employment of the company’s workforce. Specifically, in the case of company ‘re-orientation’ or restructuring, the agreement says that it will do ‘all it can to protect employment by means of all possible measures, including training and mobility, whenever appropriate’. The accord was concluded between the European Works Council and management at the company. 3.6: COMMISSION’S ROLE IN PROMOTING TRANSNATIONAL COMPANY AGREEMENTSSince 2005, the European Commission has been active in promoting TCAs.125 The Commission started organising ‘stock-taking’ activities on TCAs as a contribution to the implementation of the Social Agenda 2005-2010, which included plans for the drafting of a proposal for an optional legal framework for transnational collective bargaining. In 2006, the Commission organised study seminars for governmental experts, social partners, academics and company actors to analyse the emerging TCA phenomenon, its background and the first experiences with this kind of joint text. The seminars were complemented by background reports, company case studies and interviews with company actors. In 2008, a company workshop was held, which allowed for an in-depth exchange between Commission experts and management and EWC representatives from multinationals with such agreements. The findings of this workshop contributed to a wider conference, organised with the French Presidency of the Council in November 2008, on the transnational dimension of social dialogue and restructuring. In the framework of the 2008 renewed social Agenda, the Commission issued a report126 analysing the role of TCAs in the context of increasing international integration, and the issues to be addressed (actors involved, effects of agreements, transparency and dispute settlement). This report was accompanied by a mapping of existing TCAs. Since 2008, the Commission’s promotion of TCAs has included support for initiatives aimed at:
Specific actions launched with the aim of supporting TCAs have included:
An extensive range of further documentation on transnational company agreements is available at: http://ec.europa.eu/social/main.jsp?catId=707&langId=en&intPageId=214 Directory: pub -> ECD ECD -> Commission staff working document ECD -> Table of contents I instruments Error: Reference source not found ECD -> Table of annexes annex I: Glossary 4 ECD -> En commission of the european communities brussels, 12. 12. 2008 com(2008) 853 final annex annex II to VIII ECD -> Report from the commission to the european parliament and the council european community safa programme aggregated information report ECD -> Report from the commission european community safa programme ECD -> Commission of the european communities brussels, 24 2008 ECD -> Commission staff working document ECD -> Communication from the commission to the european parliament, the council, the european economic and social committee and the committee of the regions ECD -> Annex I iccat species Download 1.43 Mb. Share with your friends:
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