SOCIAL EUROPE: BRINGING BACK DEMOCRACY AT WORK ON THE EU POLITICAL AGENDA

EVENT REPORT | 3 - 7 MAY 2018 http://eurac.tv/9NUD

With the support of SOCIAL EUROPE: BRINGING BACK DEMOCRACY AT WORK ON THE EU POLITICAL AGENDA

EVENT REPORT | 3 - 7 MAY 2018 The global economy is undergoing major and http://eurac.tv/9NUD irreversible changes, which raises the question as to how to ensure workers’ voices are being heard and taken into account within EU-based companies.

The Hans Böckler Stiftung held a two-day symposium that addressed the challenges not only workers in Europe are facing but also the new EU-leaders who will emerge after the May 2019 elections:

How to protect and strengthen the capacity of workers and their representatives to influence strategic decisions within companies? How to improve workers’ information, consultation and participation rights at the EU-level? What can and should the European Commission do? Contents

Putting the social dimension on equal footing with the economy 4

EU must offer ‘an agenda of hope’, says Socialist leader Bullmann 6

Strengthening workers’ voice, legal certainty for future Social Europe 8

European Dialogue 2018: Social Europe Strengthening Workers’ Voice 10 4 3 - 7 MAY 2018 | EVENT REPORT | SOCIAL EUROPE: BRINGING BACK DEMOCRACY AT WORK ON THE EU POLITICAL AGENDA | EURACTIV

Putting the social dimension on equal footing with the economy

By Claire Stam | EURACTIV.com

identify with us, and only then can we really make a difference”.

WHAT IS THE ISSUE?

“All opinion polls show that having a secured job, a good education and social fairness are the most important issues for European citizens”, said Maria Jepsen from the European Trade Union Institute. Yet, the European project has Preparing a poster to be displayed at a symposium organised by Hans Böckler Foundation in on 26-27 April 2018. [EURACTIV] largely been focusing on economic development and on the EU internal market’s legal framing to the detriment n improved EU legislation that “2018 is particularly important of the social dimension, underlined boosts workers’ information, because it is the last chance to really Peter Scherrer, European Trade Union Aconsultation and participation deliver on workers’ rights before the Confederation (ETUC) Deputy General rights will push social matters higher up next European elections are held Secretary. on the EU political agenda, according to and the mandate of the European “A fair single market must deliver for the participants of a symposium about Commission expires [both in 2019],” both workers and businesses, not only workers held in Brussels on 26-27 April. Regner explained. for companies. Social and economic At stake, she explained, is “building issues must be on equal footing, and “There is a really intensive year for a stronger social safety net we are more progress towards democracy at workers’ rights that lies ahead of us and entitled to expect from the European work is urgently needed,” he said. we are in the middle of it,” MEP Evelyn Union”. Which is why workers’ participation Regner told the symposium, hosted by “A ‘Europe that protects’ is a nice and democracy at work should be put the Hans Böckler Foundation and the motto. But it is not only about physical high on the European political agenda, EU Trade Union Institute (ETUI). The security and police reinforcement we much higher than it currently is, event was dedicated to strengthening are talking about. We are also talking insisted Norbert Kluge, from the Hans workers’ voice. about social safety. The two, security Böckler Foundation. ‘Workers’ voice’ refers to and social safety, go hand in hand. And But the challenge is big. information, consultation, citizens expect the EU to deliver on this Anke Hassel from the Institute of participation and co-determination issue,” she said. Economic and Social Research within rights in the workplace, in companies Given the current defiance of EU the Hans Böckler Foundation released and in company supervisory and citizens towards European institutions, new findings at the event, showing how administrative boards. this might seem quite a challenging powerful transnational companies have Currently, workers representative task. become. have the right to seat in a company This is why MEP and socialist leader “In 2015, 69 out of 100 largest boardroom in 18 out of the 28 EU Udo Bullmann called for action: “People member states as well as in Norway. want to see us fight. Only then will they Continued on Page 5 3 - 7 MAY 2018 | EVENT REPORT | SOCIAL EUROPE: BRINGING BACK DEMOCRACY AT WORK ON THE EU POLITICAL AGENDA | EURACTIV 5

Continued from Page 4 wants to relocate its registered office. the EU level is the way forward because The proposed Directive therefore offers it levels down the race to the bottom in economic entities were companies. a basis for discussion, meaning there tax avoidance and non-completion of Walmart has higher revenues than the is definitely space for improvement,” workers’ rights between member states, government of Spain and Apple has Scherrer said. he added. higher revenues than the government “What is of very much importance Codetermination is a specific of ,” she said. to us, is that we get into the process regulation related to workers’ rights “Transnational companies have long where we can introduce amendments, and representation at companies’ become major political and economic where we can change the proposals. supervisory boards. It is also a actors in Europe and beyond,” she Some people say the glass is half full or characteristic of ’s social and continued, adding that the decisions half empty. I would say the glass is 1/3 labour legislation. the top managers of these companies full at the moment”, he said. The Hans Böckler Foundation are taking have a powerful impact on The new proposals tackle the explained that codetermination in local communities and governments’ companies’ mobility issue, that is, the Germany defines a set of rights that give tax base, as well as on social and possibility for a company to move to employees the possibility of actively environmental standards. another member state without losing its participating in the shaping of their This is due to the entry of China, legal personality or having to liquidate working environment. India and the former communist or renegotiate their business contracts This includes legally stipulated countries into the global trading system beforehand. company-internal agreements devised in the early 1990s, a move that has The trade unions have been warning in conjunction with union contracts boosted globalisation extensively and that if not properly regulated, this might as well as informal determination contributed to the financialisation of result in abuse and unfair competition possibilities that have arisen from the economy, she explained. through artificial arrangements – for codetermination practice. “Transnational companies shape example via letterbox companies – in The European Court of Justice has globalisation. If globalisation is to be order for companies to avoid paying ruled that German codetermination made fairer, transnational companies taxes, social contributions and comply conforms to EU law. have to be better regulated and with workers’ rights. “Workers‘ participation and embedded into the societies where they “We are trying hard to prevent codetermination are not an obstacle to operate,” Hassel observed, adding that the use of letterbox companies”, said a productive and profitable economy, as a consequence, a better corporate Renate Nikolay, from the DG Justice at on the contrary, codetermination is governance fostering sustainable the European Commission but added: an asset for EU countries,” Norbert companies has to become a stronger “We have rules on cross-border Kluge continued, citing the findings concern amid European trade unions mergers, but no regulation on cross- released by Anke Hassel. «The active and other stakeholders. border divisions or cross-border participation of workers and their conversions.” representatives not only contributes to FOSTERING TAX JUSTICE “So what we are offering with employment stability but also boost the the new proposals is a balanced economy». In that regard, the European approach which enables businesses The study she conducted shows Commission has made a move in the to take advantage of the single market that member states like Sweden, right direction with the release on 25 while attaching to it a large number Denmark, Germany and Austria, with April of its proposals for new company of safeguards beneficial to workers”, strong workers’ participation rights law rules, participants said. Renate Nikolay said. in companies and in administrations, But there is much room for have the best economic performances. improvement, they warned. CODETERMINATION, A But the trade union community ETUC’s Peter Scherrer said at a first BOOST FOR THE ECONOMY finds that workers’ participation in the glance the proposals on cross-border companies is still kept at a low level conversions seem to show a welcome In the context of member state across the EU. change of direction in EU company competing against one another on “We need better and more efficient law, “which until now has facilitated tax issues, Norbert Kluge from the control instruments to strengthen deregulation and regime shopping”. Hans Böckler Foundation said Europe codetermination and workers’ “The Commission aims to ensure needs a new understanding of what participation rights in Europe. There that a company has genuine economic competition really means. is much to do in the coming months,” activity in the member state where it And pushing codetermination at Peter Scherrer said. 6 3 - 7 MAY 2018 | EVENT REPORT | SOCIAL EUROPE: BRINGING BACK DEMOCRACY AT WORK ON THE EU POLITICAL AGENDA | EURACTIV

INTERVIEW EU must offer ‘an agenda of hope’, says Socialist leader Bullmann

By Claire Stam | EURACTIV.com

Bullmann: “What is the real reason behind the surge of populism in Europe?” [Horst Wagner]

here is no alternative to the with far-right parties widely expected right-wing parties in Europe”, said , but it needs to build on their recent gains at Bullmann. Tto offer an ‘agenda of hope’ national levels in Europe. “We can answer these fears to Europeans, Udo Bullmann, MEP, “What is the real reason behind with a new and more accurate legal the new leader of the Socialist and the surge of populism in Europe? framework. And this agenda should Democrat group, said in an interview People fear to lose their jobs, they ask be an agenda of hope,” he added. with EURACTIV. themselves if their kids will ever get The popular German deputy was a pension, they wonder about their elected as leader of the European The next elections to the European social identities. All this is driven Parliament are to be held in May 2019, by fear which is the vehicle used by Continued on Page 7 3 - 7 MAY 2018 | EVENT REPORT | SOCIAL EUROPE: BRINGING BACK DEMOCRACY AT WORK ON THE EU POLITICAL AGENDA | EURACTIV 7

Continued from Page 6 at us, they feel we have enough environment. At the same time, tools in our hands to strengthen the we have to be careful we are not Parliament’s second largest group transformational shift to a more addressing environmental issues in in March, but faces a challenge to sustainable and social-oriented a way that only an elite can afford an maintain its influence in the next economic order,” said Bullmann. unpolluted and safe environment,” he mandate. In fact, the European Commission warned. However, he has long been that will emerge after the European “We have to make sure that citizens critical of the direction of the Juncker elections will have to use them in order who live at the cities’ outskirts, thus commission and its predecessor run to orientate its politics anew if it wants being particularly exposed to diesel by Jose Manuel Barroso. to answer citizens’ fears, he stressed. fumes, or those unable to pay for To do this, it should also orientate organic food simply because they NO ALTERNATIVE TO its actions towards meeting the cannot afford to, that they to are EUROPE Sustainable Development Goals granted access to a better and safer agreed by the United Nation, a range environment,” Bullmann insisted. “We have always called for the of policy targets aimed at eradicating “Because we see Europe and European Commission to take poverty, environmental protection the world going through major the concerns and the needs of the and improving health, with a view to transformations, we, as politicians, European citizens seriously and to meeting the 2030 deadline, he said. cannot bring only one answer to solve make sure the benefits of the European “The 17 goals reflect a deeply one problem. Let’s break out the silos Union do actually reach them,” humane and profoundly democratic and integrate an holistic approach, Bullmann continued, adding that the programme. They make it very otherwise we will not succeed.” EU executive “could have done more clear that we have to take an holistic these past years in that regard, given approach and use horizontal thinking its mandate will soon end.” in our political processes. Only in Bullman pointed to the need doing so will we be able to save our to better address the conflicts and world and make sure our future will be challenges facing Europe at home and socially fair and economically viable,” abroad. he said. “Migration, north-south conflicts, “The European Commission is climate warming, environmental at the forefront to implement this disasters, diminishing of natural agenda, of which we saw so little these resources, political participation are past years,” he added. some of the challenges Europe is currently facing. And the question is BREAKING THE SILOS how the European Union should act to tackle them.” Within the European Parliament, “Because, there is no alternative to the S&D group has been actively the European Union of course. It has to working on defining this new agenda, come up with the proper answers,” he said Bullmann. stressed. “In my group, we have engaged in the last 12 months what I would almost SUSTAINABILITY SHIFT call a revolution, that is, in changing radically the way we work and address “Where can the European Union the different political issues”. look at to get inspired? At the United “Budget, environment, States of America, with their radical, digitalization, migration, climate liberal economic model? At China, a change, all the problems we are facing giant looming at the horizon, where now are linked to one another, you just human rights do not count much and cannot only address one aspect of the where there is little civic participation problem and ignore the others,” the in the political processes,” the MEP MEP said. asked. “This means we shouldn’t talk “When people from abroad look about economics without talking 8 3 - 7 MAY 2018 | EVENT REPORT | SOCIAL EUROPE: BRINGING BACK DEMOCRACY AT WORK ON THE EU POLITICAL AGENDA | EURACTIV

OPINION

DISCLAIMER: All opinions in this column reflect the views of the author(s), not of EURACTIV.COM Ltd. Strengthening workers’ voice, legal certainty for future Social Europe

By Norbert Kluge | Hans Boeckler Foundation

as accelerators of the dynamics of injustice. They “optimise” nation-state laws and obligations of all kinds (taxation, consumer protection, environmental protection, liability, co-determination, “money laundering”) via so-called company engineering. And no new binding frameworks imposed on them are in sight at international level. On the contrary, experience shows that companies skilfully and regularly avoid the binding representation of employees’ interests. Such practices must be put on a socio-political leash. Co-determination, as practised Norbert Kluge addresses the public at the “Social Europe: Strengthening workers’ voice” in Brussels on 27 April. [Katrin Distler/Twitter] successfully in large companies based in Germany until today, is a good reference for how it can be done the vital social democracy will EU Treaties). other way. But not only in Germany, play a decisive role in shaping In places where nobody knows the the participation of employees at the Athe future of the European future of work and business in the top of companies works. Union. The goal of a united Europe, digital age, the external framework In 18 out of 28 EU member states, contractually agreed by all EU member conditions have to create an eye-to- employees have a statutory right states, is to promote participatory eye-level between those involved in to say and can vote on boards or democracy, writes Norbert Kluge. the economy. supervisory boards, our research The right to participate in the fair shows. This kind of “worker’s voice” Norbert Kluge is the director of design of the social market economy creates better working conditions – the Institute for co-determination and will shape the future of Europe. and it is also one of the few hurdles left corporate governance of the Hans Otherwise, employers will be tailoring today that prevents companies from Boeckler Foundation. flexibility in their own interests, while being wholly exposed to the return of European workers will be required to financial investors interests. The fundamental right to give their last shirt off their back for it. Sustainable companies need information and consultation makes Social Europe is a long way off well-qualified workers. This is their workers in Europe also citizens in the because the dynamic of growing social international competitive advantage, workplace (Article 27 of the EU Charter inequality remains unbroken. Large of Fundamental Rights as part of the transnational companies are regarded Continued on Page 9 3 - 7 MAY 2018 | EVENT REPORT | SOCIAL EUROPE: BRINGING BACK DEMOCRACY AT WORK ON THE EU POLITICAL AGENDA | EURACTIV 9

Continued from Page 8 unions in the European Trade Union example, there are several regulations Confederation (ETUC) to introduce to safeguard previously existing as shown by their economic success minimum standards in European employee rights for a limited period worldwide. But workers want future- company law. National differences of time. According to initial trade proof jobs and locations in Europe; can be described as “functional union assessments, this attempt is not this integrates companies in Europe in equivalents” and thus become sufficient, though. social terms as well. comparable in their effects. Thus, However, this is no reason for “Worker’s Voice” at the top of management decisions can be related rejection because in the subsequent companies makes them internationally to a social discourse. legislative procedure, especially in unique and competitive. Social National differences in industrial the EU Parliament, there is room and cohesion (as measured by the so-called relations can be accepted without opportunity for improvement. GINI coefficient) is the highest in being institutionally adapted at cross- The EU Company Mobility those EU member states where various border level. The Böckler Foundation’s Package will definitely not provide elements of worker participation expert group “Worker’s Voice in special protection for German co- such as union loyalty, high coverage European Corporate Governance” determination. Instead of applying through collective agreements, strong introduced this new approach to the legal regulations, the involvement of employee rights at company level and discussion on the occasion of the employees at the top of the company employee participation have a positive European Discussion 2018. would have to be renegotiated on impact on each other. There are increasing signs that a case-by-case basis, as is already This has been demonstrated for this approach is heard in European the case for European Companies years by the Worker’s Participation politics. (Societas Europea, SE). Index, which is prepared annually With its Company Mobility However, it can be seen today how by the ETUI for the “Benchmarking Package, the European Commission companies are evading German co- Working Europe Report.” wants to make the potential of determination and the application There are therefore good and digitalisation for cross-border of European law. Therefore, in order realistic reasons to include co- corporate mobility in the EU internal to maintain co-determination in determination as a standard in market easier to exploit. Today’s Germany, German politicians must European company law. This standard unregulated relocation of companies‘ first of all do their own homework. needs to be part of every electoral headquarters across European programme of all democratic and pro- borders should thus be given a legal Even though the proposal from European parties that are to compete framework. Brussels includes a range of measures, in the European parliamentary The European Commission Europe now must show that it wants elections in spring 2019. wants companies to account for the to be more than a mere single market. We must succeed in bringing the economic reasons that motivated “Worker’s Voice for Good Corporate topic into the work programme of the them to change under company Governance” works socio-politically next European Commission after the law. In particular, the company will as driver of active social inclusion and spring 2019 European elections. If report on how this decision will affect welfare statehood. we do not succeed, it will hardly play employment and co-determination. a role in the next five years. Another We will measure the suitability of The EU internal market does not just step backwards for Social Europe is the proposals primarily by whether it belong to capital owners, institutional looming! is possible to put a stop to the dreadful investors and entrepreneurs. We need The European Dialogue 2018, situation of transforming operating a paradigm shift in European company organised by the Hans-Böckler- companies into pure letterbox law: Foundation and the European Trade companies in inner-European tax Union Institute (ETUI), marks the havens. Companies and their investors beginning of a new debate on European Unfortunately, the Commission must be legally bound to build long- participation. The task of national and has with its legislative proposal failed term and sustainable prospects, European policy must therefore be to to introduce a European minimum with a future for jobs, locations and enrich the rules of the internal market standard for co-determination into the environment – in order to be with workers’ rights to information, European company law. internationally competitive. That is consultation and participation in Nonetheless, the proposal the point! company decisions. shows that it is concerned about the It is the unanimous objective of the protection of workers’ rights. For 10 3 - 7 MAY 2018 | EVENT REPORT | SOCIAL EUROPE: BRINGING BACK DEMOCRACY AT WORK ON THE EU POLITICAL AGENDA | EURACTIV

VIDEO European Dialogue 2018: Social Europe Strengthening Workers’ Voice

By Malte Ketelsen | Hans Boeckler Foundation

Video: http://eurac.tv/9NWI

out of 28 EU countries have The question is: Is the worker’s a legally guaranteed right voice currently experiencing tail- 18to a say for employees in the or headwinds from Brussels? And management and supervisory boards more specifically: How to assess and of companies. evaluate the EU Commission’s new proposal for company law reforms? This adds to employee participation This was the subject of the via collective agreements. This European dialogue 2018 organised by worker’s voice is part of a democratic the Hans Böckler Foundation and the Europe. Securing and strengthening it European Trade Union Institute on 26 is supposed to increase the acceptance and 27 April. of the EU. Learn more: https://www.boeckler. de/veranstaltung_112098.htm For information on EURACTIV Event Reports...

Contact us Ioan Bucuras Senior Manager at EU Affairs [email protected] tel. +32 (0)2 788 36 92 Claire Stam Reporter [email protected] tel. +32 (0)2 788 36 73