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Europe

A SOCIAL AGREEMENT FOR EUROPE

by Michael Sommer

There is an intensive discussion as to whether one can speak of a definable European social model. It is however, an undisputed fact that the welfare states of the different European countries are organized very differently. It is nonetheless clear, that a common ground exists in at least four areas. In all European countries, social security by far exceeds the protection from existential poverty. Apart from this, the social welfare systems should also preserve social coherence, in other words, it should make sure that the gap between the rich and the poor is kept at an acceptable level. Civil society as well as employees and their trade unions have strong associate rights. Moreover, all citizens have access to welfare benefits and to a highly developed infrastructure. In the European discussion on Europe’s role in a global economy, one gets the impression that this social model is no longer up to date. It is argued that Europe only can remain competitive if it becomes more American. Interestingly enough in the U.S. there is in parts a wholly different view of this issue. The US-economist Jeremy Rifkin has recently published a book in which he writes: The European states are the first to understand the emerging realities of a global interdependent world and react in an appropriate way. Others will follow. From my point of view, this is remarkable. I do not share Rifkin’s view that the European dream, his book’s title, has already come true. However, I am convinced that Europe will be successful in the 21st Century, if it focuses on its strengths.

This does not mean that we are to keep our current status quo. Rather, we need a new European social agreement for the 21st Century. Similar to the 19th Century when the nation-states were emerging, it is not only about a political constitution. At least of equal importance is the development of the social strengths and the relation between the employers and trade unions, the socalled social-partners.

To be more precise, trade unions face three main tasks: to develop a European tariff policy, to strengthen the participation of employees in European companies and to become more European themselves. As tariff policies are the core fundament of the trade unions, it is inevitable to add a European policy to the existing national tariff policies if an Europeanization process is to proceed. On the one hand, the European Association of Trade Unions negotiates with the European Employers’ Association within the so-called Social Dialog and it also reaches binding agreements for example on topics such as parental leaves, part-time work or telecommuting. Moreover, more than 30 committees from different sectors exist for the purpose of furthering the dialog and communication on a European-wide basis within these sectors. On the other hand, trade unions have agreed upon a coordination of tariff policy not only in some sectors but also on a comprehensive level by arranging that wage agreements should at least meet the increase of the production surplus plus the inflation rate. This way, a cutthroat competition between European countries is avoided and the domestic demand within the European market is secured. Between these two poles, one should also focus on soft topics the European trade unions have to develop a common tariff policy. Thereby, topics such as employee qualifications and flexible working hours have to be faced. These wage settlements should take place in each sector. Additionally, cross-border decisions on the corporate level could be added, covering corporate-bound issues, as a means of a European operation agreement.

The EU Commission is aware of this need, and has added these ideas in the Social-Policy Working Plan for the upcoming 5 years. The EU Commission states: Providing an ideal setting for transnational collective negotiations on the corporate or sector level could help companies and sectors in overcoming problems in the fields of work organization, employment, working conditions and on- the- job training

In addition to a European tariff policy, the participation of employees in European companies has to be strengthened. In order to achieve this goal, the trade unions will increasingly make use of the European Trade Union Members (EBR).Therefore their possibilities and rights to participate have to be enhanced by the upcoming revision of the EBR directive.

On a corporate level of workers’ participation, the employees’ associate rights also have to be Europeanized. This is especially the case for intra-European public limited companies but also for companies, which have become European through mergers or relocation. Nevertheless, highly different systems and models will continue to exist from country to country. In seven European countries, worker’s participation in committees on an executive level does not even anymore exist. In Germany, workers are only represented in the executive boards in companies with more 500 employees, in Finland with more than 150. In the Czech Republic and in Slovakia however, the participation of the employees is mandatory in all companies with more than 50 employees.

In order to meet this challenge, the trade unions themselves have to become more European. This requires a strengthening of the Federation of Trade Unions. Above all however, European topics and cross-border action and different sectors within the national trade union associations and branch-specific trade unions have to be positioned more strongly. The discussion concerning the service guideline, presented by the EU Commission shows that this is possible - a mobilisation of trade union members and even a demonstration in Brussels was achieved.

In order to continuously strengthen the cross-border work, the abovementioned European works councils and the so-called interregional trade union councils, which exist in 41 different European regions, have to be used more actively. Together they constitute the Research Centre of the European Trade Unions. Here platforms for cooperation at the level of workers councils from different countries are developed. Issues such as the restructuring of companies or regional structural policies are also discussed on a European basis in these councils.

On these various levels a European social contract is being formed. In addition to the above-mentioned elements, others are likely to be added in the course of the process. Not only trade unions and management, but also politics and civil society will experience an increased process of further Europeanization. The trade unions are prepared to face their challenges. Moreover, they will urge the employers to contribute to a cooperative social relationship on a European basis, as the alternative to a European social contract would be a European anarchy a ruinous cutthroat competition with confrontation and industrial actions in every single company.

This is not the right way. We must have the courage to shape a social contract for a Europe in the 21st Century. As Jeremy Rifkin argues: My biggest worry is that Europeans are probably not optimistic enough to realize their vision of the future. It is our task to prove that this worry is unfounded.