Brussels, 16/07/2004
July -December 2004
I. Introduction
{
}The Dutch Presidency is taking place at a turning point for the EU, and thus at a difficult time. It can either choose to press ahead with more integration or it can seek to achieve less ambitious objectives.
Behind the façade, there is a tough battle going on between those in favour of more Europe and those who want less Europe to characterise the EU-25 of the future. As in some of the old Member States, there are also people in the new Member States who are less in favour of integration, preferring to consolidate the Atlantic camp inside the EU.
Traditionally, the Netherlands was amongst the countries committed to deepening the European integration process, though in recent years it appears to have come under the sway of the sirens of Euroscepticism. Consequently, the Dutch Presidency may be overshadowed by defence of the Netherlands' own national interests. Indeed, the Netherlands no longer automatically belongs to the core group of founder members that previously drove the process of European integration. The first challenge is to set aside the national agenda in Europe's common interest.
The Dutch Presidency will have a hard time working with the Commission and the Parliament in their current form. The present European Commission will be replaced on 1 November by a new one that will have to shape its ambitions. The newly elected European Parliament will have just started its work and be striving to set its priorities.
Over the next six months the Dutch Presidency will have to contribute towards making a success of the reunification of Europe, turning it into a 'win-win-situation' and towards finalising the terms of accession for Bulgaria and Romania, as well as giving a conditional green light to Turkey.
The Dutch Presidency has to create favourable conditions for the ratification of the new European Constitution.
At the same time, it has to proceed with the difficult negotiations of setting the new EU financial perspectives post-2006. Although the Netherlands is a major net contributor to the EU budget, the challenges faced by an enlarged EU should be at the top of the Presidency's agenda.
Numerous social objectives feature on the agenda - and we would urge the Dutch Presidency to strive towards achieving them. The alternative would be passivity or continuing divisiveness, which would further alienate Europe's citizens, their remoteness being clearly reflected in the low turnout in the latest European elections.
To regain credibility, the future Commission and the European Union must be more attentive to the current and future economic and social concerns and aspirations of workers and citizens alike.
Before the fall of the Berlin Wall back in 1989, the prime objective was to deepen the European integration process; indeed, there was felt to be a historical duty to unify Europe. An ambitious programme to achieve this aim was launched, and the unification of Europe became a reality on 1 May 2004. A parallel process was launched to make the enlarged EU function smoothly and to move integration forward. After 18 months of lively discussion in the European Convention, followed by 12 months of discussion in the Intergovernmental Conference, the heads of state and government finally adopted a European Constitution, taking the EU a significant step forward. But further steps are necessary.
No single EU presidency can steer today's EU forward, but the Dutch Presidency has to set this ambitious process on the right track.
10 SOCIAL TESTS FOR THE DUTCH PRESIDENCY: {{
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1.Lisbon Strategy - Mid-Term Review: Ensure steps to meet the Lisbon Objectives and launch a review of the Stability Pact.
2.Social Agenda 2006-2013: Lay a solid base of the new European social policy agenda for post-2005 and ensure the right balance between legislative and contractual instruments.
3.Gender Equality: Work on the proposed Directive to ensure its unanimous adoption by the Council.
4.Temporary agency work: Adopt the directive without further delay and make sure that the principle of equal treatment is respected.
5.Services and Services of General Interest: Make the proposal for a Services Directive acceptable and ensure a strong social dimension for the internal market. Start the procedure for a framework directive on Services of General Interest and a moratorium. Ensure a fair standard of cooperation for public-private partnerships (PPPs).
6.Working Time Directive: Put an end to individual opt-outs and safeguard the basic principles of the Directive, i.e. the right to limit working hours, the protection of health and safety, offering both companies and workers flexibility and security.
7.EWC revision: Accelerate the revision process and embark on the next phase of consultation.
8.Company law on mergers and transfers of seat: no falling back behind the historical compromise reached for the European Company Statute on Workers' Participation and Involvement.
9.Health and Safety at Work: Implement the Community strategy 2002-2006, taking account of the importance of legislative instruments; finalise work on Physical Agents - Optical Radiation, the revision of the Machinery Directive and the Carcinogens Directive, including substances which are toxic to reproduction, and support the improvement of EU policy on chemicals. Also take initiatives for the adoption of REACH taking account of its consistency with health and safety directives and define a 'duty to care' for all the respective chemicals.
1
0.Migration and integration: Develop a common EU migration and asylum policy, based on a human rights approach, linking the issues of migration and integration into other EU policies (mainstreaming), notably employment, equal treatment and co-development policies.
II. The implementation of the Lisbon Strategy: economic, employment, sustainable development and social cohesion policies
{{
}}{Watching over the recovery by using the European framework for macro economic policies
}After three years of extremely slow growth, Europe cannot afford a recovery that loses strength and peters out again before our very eyes. Nevertheless, there is good reason to fear that this will happen. With the revival of aggregate demand not being based on domestic demand, the recovery is not sufficiently broad based and not strong enough to withstand external shocks like the appreciation of the euro and rising oil prices.
The Dutch Presidency should make this a focal point and, in cooperation with the Commission, work towards clarifying and reviewing the implementation of the Stability and Growth Pact. This would be an important way of boosting confidence. Consumers and producers need to be given a clear signal that there will be no fiscal restriction amid insecure economic circumstances. {
}ETUC also expects action to be taken to increase public awareness of the Growth Initiative, another way of strengthening confidence, as well as steps to complement it by coordinating special investment programmes on social housing and renewable energies.
According to ETUC, the Dutch Presidency should make full use of the Cologne macroeconomic dialogue, not the least in order to avoid the 2000/2001 scenario, where the ECB found it necessary to try and block second-round effects of the oil shock by switching to a restrictive monetary policy. The Presidency should aim to improve the mutual understanding between wage negotiators and monetary policymakers in this connection by encouraging the different actors to talk to each other, and whenever necessary, by organising additional meetings. {
Mid-term review of the Lisbon Strategy: Social Europe as a productive force
}There is an urgent need to implement the Lisbon agenda. This presupposes respect for the Lisbon decision to integrate the different pillars of economic efficiency, full employment, social cohesion and sustainable development. Indeed, decisions taken on the basis of short-term economic needs will be detrimental to competitiveness in the medium term. ETUC calls upon the Dutch Presidency to defend and push forward this approach whereby 'win-win' situations instead of trade offs between the different Lisbon pillars are identified. The agenda must avoid the road of simple deregulation and pursue a positive agenda based on the participation and the contribution of social dialogue at all levels, including the European Social Dialogue.
The mid term review should also stress the importance of ‘national ownership' of the Lisbon strategy. This can be done by having member states present an annual ‘single action plan', including national instruments and policy objectives, thereby respecting the balance between the three pillars of the Lisbon strategy. In drawing up the national ‘single action plan', the Social Partners need to be strongly involved. Follow-up of these national action plans should then be done by the Commission and should be openly discussed with the national Parliament and social partner's advisory boards.
ETUC will closely monitor the conclusions presented by the high level group chaired by Mr Wim Kok, on the mid-term review of the Lisbon strategy and expects the Dutch Presidency to pursue an integrated approach to the agenda.
{
{{Lifelong learning
} {
} }}The development of lifelong learning - and especially vocational education and training (VET) - are essential if Europe wants to achieve the Lisbon Objectives. Development of VET is of strategic importance to the solution of social and economic problems.
The Dutch Presidency will evaluate the actions developed within the Copenhagen process. In that context, ETUC reconfirms that its priorities lie in the development of workers' competencies at the work place level and in recognition and validation of competencies acquired via non-formal learning. Although a number of principles have been identified at European level, the next step must be to implement them at national level with the full participation of the social partners.
Furthermore, ETUC wishes to stress the importance it attaches to the need to develop quality in VET, both in terms of quality assurance and of credit transfer systems.
The ETUC wants the new programme to support European policy cooperation in lifelong learning. Political cooperation and community's actions at European level are essential to promote possibilities of European citizens for lifelong learning in order to promote social cohesion and competitiveness.
{{ {Social Cohesion and financial perspectives
}}}
The legislative proposals for the new architecture of the Structural Funds after 2006 will be presented during the Dutch Presidency. ETUC wishes to emphasise that the strengthening of economic and social cohesion is one of the European Union's prime objectives.
ETUC believes that this commitment needs to be shored up in an enlarged Europe and that the Community's Structural Funds must make a significant contribution towards the objectives of the European Strategy for Employment and the reinforcement of the European Social Model.
Furthermore, the social partners' involvement in Structural Fund operations has to be stepped up. In this respect, based on the tradition of partnership in the Netherlands, ETUC hopes that the Dutch Presidency will insist that future arrangements regarding the Structural Funds will clearly set out the principles of partnership rather than leaving it to national rules and practices. In addition, the social partners must be able to benefit from technical assistance to help them develop the skills of their representatives in the various bodies established to implement the Structural Funds, especially bearing in mind the specific needs of the social partners in the new Member States.
{{
}}{Sustainable development
}ETUC expects the environmental dimension to feature on the economic and social agenda of the Lisbon/Göteborg strategy with a view to producing specific measures that will enable environmental policies to contribute fully towards the creation of decent jobs. The measures provided for in the EU's plan of action in favour of environmentally friendly technology, and above all the establishment of technological platforms, must be rapidly applied, and these programmes must contain sufficient social measures evaluating needs in terms of education, training and qualifications. Moreover, the European Strategy on Employment must serve to encourage the direct creation of jobs in the environmental sector via active labour market policies.
The European Strategy for Sustainable Development must be the subject of renewed commitment by the European Union and fresh policy guidelines designed to promote sustainable development in the Union and throughout the world. ETUC is asking the Dutch Presidency to encourage the Commission, in accordance with its work programme, to re-examine the strategy in the light of a detailed assessment of the contribution it has made towards bringing about long-term qualitative development, and to set policy guidelines designed to bolster the strategy's social dimension.
ETUC and its partners on the Platform of European Social NGOs and the European Environmental Bureau have drawn up specific proposals for active policies on public investment that will benefit employment, the environment and also growth (see the manifesto entitled "Investing for a sustainable future"). ETUC expects the Dutch Presidency to urge the Commission to take these proposals on board in its report to the European Council in spring 2005.
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{{III. Social Policy Agenda
}}Social Policy Agenda}}
The discussions on the future Social Action Programme will be launched in the course of the Dutch Presidency. ETUC expects this discussion to be based on a clear evaluation of measure included in the current social policy agenda, in its completion as well as on the need to have a balanced approach that includes both legislative and contractual measures.
The challenges Europe faces in the social field, especially in the wake of enlargement, call for more action from the European level, particularly on the part of the European Commission and the social partners. Meanwhile, ETUC is ready to play its full role in the context of the enlarged EU.
The future social action programme must be at the service of the objectives of the Lisbon strategy, namely those that seek to achieve more and better jobs, higher social protection and economic and social cohesion. Its main concern should be to develop measures that contribute to the improvement of living and working conditions of European workers and citizens.
Social protection
ETUC reiterates its support for the Open Method of Coordination in the area of social protection.
In this context, the Dutch Presidency will be faced with three important initiatives, namely the launch of the procedure for health care and long-term care, the debate about the adequacy of the 2nd pillar of pension schemes and the indicators required to measures them, and the debate launched by the Commission Communication entitled "Increasing the employment of older workers and delaying the exit from the labour market".
Furthermore, and in close conjunction with social protection and the maintenance of the European Social Model, the Dutch Presidency will have to manage the follow-up to the White Paper on Services of General Interest and in this context the role of health and social services.
In this way, ETUC hopes that the Dutch Presidency will do all it can to ensure that the Council supports the strategy on health care with a view to guaranteeing equal access for all to high-quality health care, the funding of which is guaranteed in the long term.
ETUC also stresses the importance within a Union comprising 25 Member States of guaranteeing the protection afforded by the 2nd pillar of pension schemes. We forcefully reiterate the solidarity between and within generations that must govern pension schemes in all their complexity (1st and 2nd pillar) and therefore want the tools/indicators for measuring the adequacy of pensions in the 2nd pillar to take account of this global, solidarity-based aspect.
ETUC calls upon the Dutch Presidency to be closely involved in the debates it will organise in this connection.
We also reiterate our views regarding the legal age of retirement and our wish to link the debate on this topic to all the problems associated with ending working life.
ETUC calls upon the Dutch Presidency to support the approach taken by the Social Protection Committee in its bid to gain full recognition of the common interest in health and social services.
Furthermore, during the Dutch Presidency, ETUC expects the Commission to follow up on the talks that took place in the context of social dialogue on "measures to improve the portability of occupational pension rights".
Temporary Agency Work
ETUC expects from the Dutch Presidency a strong commitment to end the situation of deadlock and paralysis around the draft Directive on Temporary Agency Work.
The inclusion of workers with non-standard employment relationships and in particular temporary agency workers in mainstream employment is a cornerstone of the EU's employment strategy of more and better jobs. In this regard, the extension of labour law coverage and collectively agreed arrangements aiming at the inclusion and protection of these workers is indispensable.
So far, it has been impossible to provide temporary agency workers with sufficient protection at the European level. Although equal treatment for temporary agency workers, and in particular equal pay with comparable workers in the user enterprise, is guaranteed in most Member States, a small group of Member States until now has blocked any progress, by demanding a permanent denial of equal treatment for temporary agency workers working less than 6 months with a user-company. Clearly, this would exclude the vast majority of agency workers from the equal treatment provisions of the draft-Directive, without any compensatory measures or mechanisms. ETUC considers this to be unacceptable.
Adopting a European Directive that provides for equal treatment and basic protection of temporary agency workers throughout the enlarged European Union is of key-importance, and a necessary pre-condition, if the EU wants to proceed further in the direction of free movement of workers and services.
ETUC calls on the Dutch Presidency to use its national experience in finding sustainable solutions which balance flexibility and security, and to put a major effort in working towards a satisfactory compromise proposal. Such compromise proposal should at least recognise temporary agency workers as normal workers, and respect the fundamental principle of equal pay for work of equal value, while providing only for derogations of the provisions of the Directive as far as compensatory legal or collectively agreed measures or mechanisms are put in place, that provide temporary agency workers with adequate protection.
{European Works Council Revision
}
European Works Councils (EWC) have become important instruments of the European Union's social pillar and we share the Commission's view expressed in the first stage consultation for the revision of the Directive that they have clearly demonstrated their value.
However, in order to ensure that the potential of EWC is fully realised in the years ahead, some of the weakness that have been identified in the Directive must be addressed.
Large scale corporate restructuring, making employees feel most at risk and in need of the security provided by being involved in the case, render it imperative that improvements to the Directive are made. The current EWC Directive does not clearly define either the content or means of existing information and consultation rights. It is vital that companies provide these in good time, before any decisions are taken.
It is also essential to have a more closely specified procedure for renegotiating agreements, particularly when EWC are involved in restructuring or merge processes.
Equally a revised Directive must ensure the right to trade union coordination and support EWC negotiations and their general duties.
Finally ETUC expects that the Dutch Presidency will accelerate the launch of the next stage of the consultation process. It is essential that the revision procedure is accelerated in order that employees of multinational companies in all 25 member states of the EU can be ensured more effective information and consultation bodies at the European level as quickly as possible.
{{ {Working Time Directive
}}}
The European Commission is expected to come up very soon with a draft proposal to review the Working Time Directive, after UNICE's refusal to negotiate the issue with ETUC. ETUC considers the next stage in this process as crucial, to prevent that the Working Time Directive, which is an essential part of the social architecture of Europe, will be watered down for pure economic reasons, against the interests of health and safety and work-life balance of male and female workers in an enlarged Europe.
The Working Time Directive needs revision on two important derogations that until now allow Member States to continue long working hours. Evaluation has shown that the implementation of the Directive has been unsatisfactory, and that especially in the U.K. the extensive and uncontrolled use of the so called 'individual opt-out' has had detrimental effects on the health and safety of millions of workers, as well as on their possibilities to combine work and family responsibilities.
In its response to the first stage consultation, ETUC stressed the legal obligations, such as Article 2 of the EU Treaty, which commits the Community to promoting a high level of employment and social protection, and other fundamental principles contained in various EU treaties and charters obliging the EU to a progressive reduction of working time.
ETUC called for an end to the 'opt-out'; for the recognition of 'on-call' hours as working time, in line with rulings from the European Court of Justice, while allowing social partners to negotiate balanced and adequate solutions to problems faced in certain sectors or professions; for keeping in place the limit on extending reference periods for calculating the average working week, except via collective agreement; for providing workers with real options to better reconcile work and family life.
ETUC is looking forward to courageous steps from the Commission, supported by the Dutch Presidency that will take into account the need for a modern working time policy that combines flexibility and productivity for enterprises with real choice for workers.
The Dutch Presidency should also support the Commission in finding adequate and balanced solutions for problems that have arisen in some Member States with the implementation of recent ECJ-judgements on the issue of 'on call working time', as a consequence of which certain Member States are considering to take recourse to the introduction of the 'individual opt out'. ETUC is of the strong opinion, that the individual opt out cannot and should not be accepted as an adequate instrument to protect the health and safety of workers. Adequate and balanced solutions should be worked out, that take account of the basic principles underlying the Working time Directive and respect the obligations of the European Treaties and Charters, notably to limit the maximum working week for every worker.
Gender Equality
Work on the proposed Directive implementing the principle of equal treatment between women and men in the access to and supply of goods and services must be realised and ETUC calls on the Dutch Presidency to work to ensure that this is unanimously adopted by the Council of Ministers, following consultation of the European Parliament.
The commitment made to recast the Equality Directives in the areas of employment and social policy must also be upheld and we call on the Dutch Presidency to ensure that work begins on this without delay.
The issue of gender-mainstreaming should be taken more seriously forward, for instance in employment policies and guidelines, obliging Member States to draw up National Action Plans to address the gender pay gap, and in issues such as the revision of the Working Time Directive, where the need to guarantee the health and safety of male and female workers who combine work with family duties is at stake.
{{ {Health and Safety at Work
}}}
ETUC stresses the importance of legislative instruments in the field of health and safety as a fundamental guarantee for the same basic protection of workers' health and safety in the European Union.
Work on the Directive on Physical Agents - Optical Radiation should be finalised. For ETUC it is vital that the new directive applies the principles of the framework directive by fully integrating the potential health risks associated with optical radiation, particularly in the risk evaluation carried out by employers as well as the right to medical surveillance for workers who are exposed to such risks.
The revision of Carcinogens Directive should progress. In particular the inclusion of substances that are toxic for the reproduction could significantly improve the prevention of this type of risk for workers of both sexes.
ETUC expects Council to take account, in full, of the provisions and requirements of the health and safety directives (in particular 98/24 and 90/394) when drafting the REACH proposal for the reform of the EU chemical legislation regarding dangerous chemicals in order to ensure a better application of these directives which aim to reduce workers exposure and substitution of carcinogens, insofar as it is technically possible. The “duty of care” principle should be reintroduced so that it covers substances, which fall outside the scope of the Regulations.
ETUC considers that after 4 years of discussions during 7 presidencies, the revision of the Machinery Directive should be finalised. The improvement of safety aspects in European harmonized standards, the coordination of national market surveillance practices and an effective coordination of notified bodies are crucial aspects for a better occupational health and safety policy in that field.
{
{{Chemicals Policy (REACH)
}}}
ETUC is of the opinion that the Reach proposal is a significant contribution to sustainable development, and that it is in line with the commitment made by the EU and its Member States.
The Dutch Presidency must actively continue this work and the impact studies in order to confirm the innovations and requirements required at European level to ensure the transparency and conditions governing workplace health and safety. This is a key challenge facing the European economy, especially the chemicals industry. The aim is to boost the industry's ability to devise modern solutions for its future by developing criteria which are environmentally friendly and socially responsible.
{
}Industrial Policy
ETUC supports the general orientation on industrial policies based upon the latest Communication from the Commission. In particular, the strong reference to the role of Social Dialogue in industrial policies is welcomed. For an innovative industrial policy, sufficient financial resources are needed. The market by itself is unable to guarantee a sufficient level of investment in research and development and in human capital.
ETUC expects from the Dutch Presidency to support the Commission proposal to double the EU's research budget, to increase and use more systematically the structural funds and to establish a ”Structural Adjustment fund”.
In order to meet the Lisbon objectives, the European industrial policy must be articulated with other policy areas, so that potential synergies between the various Community policies can be achieved. ETUC believes it is fundamentally important that the different pillars of the Lisbon agenda are regarded as elements of equal value in a European industrial policy.
While agreeing with the need for better and simplified forms of regulation, ETUC warns against the abuse of new regulatory instruments for the mere purpose of reinforcing deregulation.
Corporate Social Responsibility
To the ETUC, Corporate Social Responsibility is an important topic, as this is a theme which comes up in the direct line of the commitments of the Strategy of Lisbon and which constitutes a complement to the European Social Dialogue.
For the ETUC, CSR must be the result of a voluntary choice which must be framed in rules, regulations and guidelines to be fixed at the European level.
After the activities of the Multistakeholders' Forum, still pending questions will have to be dealt with, and they will have to be submitted to the Presidency : the large companies' commitment to produce an annual report, the promotion of standards covering all corporate governance, the need to set access criteria for the use of Community funds, the definition of codes of conduct and/or labels in conjunction with certification agencies and/or instruments.
{{ {{IV. Social Dimension of the Internal Market
}}Internal Market for Services and Services of General Interest (SGI)}}
ETUC supports a EU single market in services but not at the expense of European and national social standards. Thus, ETUC cannot support the proposal for a Directive on services in the internal market issued by the European Commission on 13 January 2004 as it stands. It would call into question existing collective agreements, including those concluded at the sectoral level and question the provisions of existing national labour codes; it would lead to even more 'deregulation' and 'social' insecurity, to damage services of general interest and health and safety. ETUC is deeply concerned by the application of the 'country-of-origin principle' with respect to the consequences for the efficiency of monitoring and protection against abuses, especially in the domain of labour law.
The proposal is very complex and covers a broad range of issues and it is extremely difficult to predict all the consequences that may result. So a serious and pluralistic impact assessment with the involvement of social partners is necessary. ETUC proposes that temporary work and the posting of workers should be totally excluded from the scope of the directive. ETUC reiterates its request for a legislative standstill until a framework Directive on Services of general interest is delivered.
ETUC will continue its efforts to arrive at an acceptable Services Directive and urges the Presidency to continue the analysis of this proposal taking seriously into consideration ETUC concerns and defend the social dimension of the EU.
Public Private Partnership{{
}}The Commission in its Green Paper observes that the public private partnerships (PPP) have extensively developed over the last ten years. It sees in the PPP a means to finance the 20 trans-European projects to be implemented by 2020. The first reason for recourse to the PPP is obviously the lack of public funding.
ETUC welcomes the discussion on PPP, but insists that clear conditions must be ensured for a level playing field between private and public partners, in particular on the contractual modifications of PPP and subcontracting. ETUC criticises that the Green Paper neither addresses the asymmetry between most of the public authorities and private companies nor the democratic or pluralist evaluation, nor the involvement of users and citizens who are in the last resort the payers. ETUC remains critical to PPP as long as the citizens are left out in choice making processes on infrastructures and services which they finance and use daily.
The Commission seems to have abandoned the idea of a public authority as a direct or indirect provider of services when it comes to PPP. The model of submitting to tender any economic activity a public authority would like to entrust a third party with, does not fit with reality in many Member States where public enterprises provide their services within the boundaries of the respective authority. At the same time the obligation to put to tender any economic service will accelerate a process of privatisation.
The Dutch Presidency is asked to ensure that the Commission will first explore possibilities of best practices before submitting a legislative proposal.
Mergers and Transfer of seat
The reaching of a common understanding and the establishment of European legal provisions for governing a cross-border operating company in the European Company- (SE) -legislation, which clearly provides for workers' participation at board level taking into account different national legislations and experiences, was indeed a historical achievement. In line with the action programme from May 2003 to ensure that a high level of worker participation will be guaranteed in the European Company and that there will be no possibility of opting out ETUC demands to keep the historical achievement in the SE-legislation of having now worker participation as well as information and consultation as a standard rule cross-over Europe in every further law or measure to complete European Company Law, to modernise corporate governance in Europe and to realise the so called Bolkestein-Action Plan from May 2003 .
At the moment the draft of the 10th directive on cross-border mergers and the announcements concerning the 14th directive on cross-border transferral of seats seems to deal with workers participation only as exceptional and as a more or less technical detail only when necessary to enable free movement and flexibility of enterprises. Moreover, details of the EU-commissions proposals to improve corporate governance, e.g. concerning the role of “independent” non-executive (supervisory) board directors, show an unsatisfying understanding of steering a company only to protect interests of the shareholders. Obviously, this kind of policy is not in line with the Lisbon targets and counteracts its objectives.
ETUC urges the Council and the Commission to come back to the political consensus and to consider workers' participation at board level as an important element of corporate governance. Such systems exist in several Member States and could be a real asset in terms of corporate dynamics and the company board's capacity to aim at long-term value creation. This requires the completion of article 14 of the merger directive in order to cover not only the case where the national law applicable to the company created by the merger does not impose compulsory worker participation but also the case where that law does provide for a weaker system of worker participation as well; to cover all types of mergers as meant in article 1 under a, b and c; to provide that, in all cases covered, all the workers of the company created by the merger, whether or not employed in the Member State of that company's seat, can take part in the system of participation on an equal footing.
Concerning the envisaged Coordination Directive relating to transferrals of registered offices, it is of utmost importance that the same rules apply as in the case of the European Company (SE) Directive 2001/86/EC in respect of safeguarding the workers' participation. Transfers should not be used as a means to reduce, undermine or even get rid of acquired workers' rights.
Last but not least ETUC demands that every proposal in the field of Company Law requires a consultation under the requirements of Article 138 EC, since it is the social policy field that is regularly being directly addressed in the envisaged directives and recommendation.
V. Immigration and Asylum Policy
During the Dutch Presidency, a new Justice and Home Affairs agenda will be drawn up (Tampere II), dealing with legal and irregular migration, asylum, border management and citizenship.
ETUC expects that the approach to be taken is not too narrow, focussing exclusively on the fight against the trafficking of human beings, irregular migration and border controls. The agenda must take a broad and multi-faceted approach, incorporating the issues of migration and integration into other EU policies (mainstreaming), notably employment and equal treatment policies, and co-development policies.
ETUC reiterates its appeal to the urgent need to adopt a variety of legislative proposals, namely a decision on European citizenship, enabling third country nationals, legally resident in the EU, to enjoy a status which would give them social and political rights and duties including the right to vote in local and European elections; the adoption of the Directive on admission for employment.
ETUC also calls on the Dutch Presidency to ensure consistency between EU legislation and UN/ILO Conventions and legal instruments of the Council of Europe as well as promote the ratification of UN and ILO Conventions in EU and Accession States, in line with the action plan, adopted by the ILO-conference 2004 on 'a fair deal for migrant workers'.
With regard to the management of migratory flows, ETUC calls on the Dutch presidency to propose the establishment of accompanying measures to combat trafficking in human beings with support of the victims of trafficking, many of them women who are victims of sexual exploitation. Measures should also be taken to combat the exploitation of undocumented workers in violation of universally applicable human rights, and to effectively punish those who take advantage of their exploitation. Common criteria should be developed on the European level to grant legal status to undocumented workers.
While managed migration must be part of the response to the EU demographic trends, ETUC stresses that it cannot be the only solution and underlines the fact that migration policies must be developed in parallel with complementary integration measures. We also stress that the management of migratory flows cannot lead to the departure from skilled workers in certain areas from developing countries, resulting in a brain-drain effect, nor can it mean importing cheap labour for low quality work.
{{VI. External relations: Western Balkans, EU-MERCOSUR Association Agreement, Social Dimension of the ASEM Process
}}ETUC welcomes the stated intention of the Dutch Presidency to develop the international role of the European Union and to ensure effective coherence across the broad spectrum of external relations. We ask in particular that coherence initiatives in relation to trade and the respect of Core Labour Standards be promoted urgently in line with the recommendations of the World Commission on the Social Dimension of Globalisation.
ETUC insists that bilateral agreements should be used by the EU to underpin social objectives and trade union rights. This should in particular be pressed in relation to current negotiations on Mercosur and on the partnership agreements and national programmes in ACP countries.
ETUC has supported consistently the development of EU relations with its neighbours and other partners worldwide. So far as our neighbours are concerned, ETUC would underline the need for a strong commitment by the EU in the Balkans and in the South and East of the Mediterranean under the Barcelona process. ETUC and the trade union Movements in those regions are insistent on participating in the construction of peace and security based on equitable social policies and dialogue.
We note that a number of summit meetings are to be held during the Presidency and underline the need for a social dimension to be guaranteed as part of the development of relations with the countries and regions concerned. These include in particular the ASEM summit planned for October, at which we ask that a permanent Asia-Europe dialogue on employment and labour issues be instituted in line with proposals initiated by the German Government. In this context, we reiterate our opposition to the inclusion of Burma / Myanmar in the ASEM process until such time as real and irreversible progress has been made in line with ILO positions.
It also includes the EU-Russia Summit to be held in November, at which we ask that action be taken to meet the joint request made in May 2004 by ETUC and the Russian national trade union centre FNPR, for the establishment of a social dimension and the involvement of the social partners in the EU-Russia Common Economic Space.
South Eastern Europe has been advancing in the transformation process. Still the recent events in Kosovo and the political developments in Serbia indicate the fragile nature of stability in the region and the limits of the consensus at the current stage of the reform policies. Accelerating the process of change and strengthening its EU orientation will require a clear recognition of the necessity for building of effective social dimension of the process of change and the active involvement of the social partners, trade unions in particular.
ETUC expects that the Dutch Presidency assigns to social problems and especially social dialogue the respective priority status alongside with the economic reforms and assistance programmes oriented also towards the organisational stabilisation and capacity building of the social partners in the region.
ETUC considers that the efficiency of anti-corruption policies could be strengthened through integrating measures to curb shadow economy operation and unregistered employment where the social partners and trade unions in particular can make an important contribution.
We would expect the Dutch Presidency to give priority status to the social dimension and more specifically to social dialogue as a tool for consensual policies.
On what concerns the relations between the EU and Latin America and the Caribbean, ETUC welcomes the decision of the Guadalajara Summit (EU-LAC) to address the problem of social cohesion as a key concern. This is a particularly important issue in Latin America where, in addition to high poverty levels, wealth is unfairly distributed and social protection systems are clearly inadequate.
ETUC supports the objective of bringing the negotiations between the EU and MERCOSUR to a successful conclusion this year; it should serve as a model for the EU's future negotiations with the Andean Community and Central America by upholding the principles of fair trade and democratic values.
For these purposes, ETUC and the MERCOSUR trade union organisations have submitted a Declaration calling for the inclusion of a chapter on social and labour issues in the Agreement and for recognition of workers' participatory bodies, including the EU-MERCOSUR Labour Forum formed by the European and MERCOSUR trade unions. ETUC expects the Dutch Presidency to support the international trade union movement - ETUC, ICFTU WCL - in these objectives.