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Anticipation and managing of restructuring processes Luc Triangle, industriAll Europe 29.04.14

Anticipation and managing of restructuring processes Luc Triangle, industriAll Europe 29.04.14. Catch-up in East region Severe losses in Nordic + FR, UK Destruction of industrial fabric in South + South-West regions.

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Anticipation and managing of restructuring processes Luc Triangle, industriAll Europe 29.04.14

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  1. Anticipation and managing of restructuring processes Luc Triangle, industriAll Europe 29.04.14

  2. Catch-up in East region • Severe losses in Nordic + FR, UK • Destruction of industrial fabric in South + South-West regions

  3. OnlyGermany has registeredgrowth in itsindustrialemploymentlevelsince 2007. • All othercountrieswithavailable data arebelow precrisis levels. • Average fall in EU is 11.5%

  4. Germany has by far thebiggestemployment in themanufacturingsector. • Poland is as high as number 3.

  5. Aeronautics, railways, medical equipment, pharmaceuticals: islands of prosperity

  6. Massive dis-industrialisation during crisis • Capital goods resisted better • Textile, clothing, leather worst hit • Cement: burst of real-estate bubble • Worrying losses in Computer, electronics, optical

  7. Large geographic differences between Member States • Troika-hit Member States worst off • Central region in good shape

  8. Unacceptably high youth unemployment levels in South and East regions • Central region better off

  9. Management choices / company strategies (wrong and right) are very often at the bases of restructuring. Not only economic situation

  10. Restructuringtoday • Unprecedented number of cases, and job losses • 5 Mill jobs lost in EU over last 5 years, mainly in manufacturing and construction. Other sectors less affected. • German economic engine still functioning. Some companies made in 2012 highest profits ever • Most affected : lower and mid-paid manufacturing and construction workers • Re-employment after restructuring very low in SI, ES, BG, EL, … Higher in SF, NL, SK, DK, CZ, D • Erosion of European industrial network. Future of some sectors in Europe in danger if current trend continues • Those who keep the job : higher precarity, erosion of social protection

  11. View on Restructuring • . Change = permanent feature • . We do not oppose the principle of change. Is part of the lifecycle of a company. • . Ensure socially responsible restructuring • Which means : • workers’ involvement (information/consultation) • Anticipation on future change (Cercas initiative for a legal framework) (in the past many European voluntary initiatives : Restructuring toolbox etc) • Training & Education, LLL (for internal company use, for external labour market use)

  12. Dealing with restructuring from TU perspective • Workers and companies/countries are played off against other • Key-role for EWCs : making full use of rights of new EWC Directive • . Information and Consultation • . Right to deliver a (second) opinion • . Right for several meetings • Trade unions are put in a conflictual position : social dumping / concession bargaining / agreements to secure own employment versus European strategies and European coordination • ( more and more signs that social dumping scenario’s are increasing)

  13. Instruments • National I/C Directive 2002 : tobeimplementedbyeach EC member state > Prior I/C beforeanydecision • EWC Directive (2009/38) > in each TNC with more as 1000 workers > tool toestablishtransnationalnetworks • UseindustriAll Europe to ‘alarm’, ‘inform’, ‘network’ • European frameworkfortransnationalrestructuring > focus on anticipation tools

  14. Instruments • European coordination meetings • Use Board Level representationwhere present, for a European TU Coordination • Use of external expertise todeliver a second opinion • Three levels tobefurtherdeveloped at European level : exchange of information, restructuringitself, negotiation on socialconsequences

  15. National instruments • Works Councils / Trade Union rights at company level • Lifelong Learning / Vocational training toincrease employability of workers • Discussion on sustainable companies / industries > transformation of economy • Industrial Policy agenda

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