91999E0276

WRITTEN QUESTION E-0276/99

by Riccardo Nencini (PSE) to the Commission

(17 February 1999)

Subject: Borri Elettronica Industriale, a subsidiary of General Signal (USA)

The company Borri Elettronica Industriale (Bibbiena-Arezzo-Italy), a subsidiary of General Signal (USA), has a long and outstanding tradition as an employer, having become one of the major firms in this sector (with 118 employees, of whom 60 % possess decrees and/or diplomas).

This company is to be taken over any day now by SPX (USA) a company operating in the vehicle components and services sector.

No guarantees have been given as regards maintaining jobs and making full use of the firm's special potential.

Will the Commission take the necessary steps to protect both the jobs and the skills base developed by Borri Elettronica Industriale over its many years of operation?

Answer given by Mr Flynn on behalf of the Commission

(10 March 1999)

One of the priorities of European social policy is to ensure that workers are protected in the event of transfers of undertakings.

Council Directive 77/187/EEC of 14 February 1977 on the approximation of the laws of the Member States relating to the safeguarding of employees' rights in the event of transfers of undertakings, businesses or parts of businesses(1) is intended to protect employees during a change of head of undertaking, in particular to ensure that their rights are safeguarded. To that end, Article 3 of this Directive states that the rights and obligations arising for the transferor from a contract of employment or from an employment relationship are, by reason of such transfer, to be transferred to the transferee.

Article 4 also provides for the workers concerned to be protected against any dismissal pronounced by the transferor or the transferee, but does not hinder any dismissals that may occur for economic, technical or organisational reasons leading to changes in the area of employment.

The Commission does not take measures in individual cases, as requested by the Honourable Member, and does not know about the case he mentions.

If the national provisions transposing Community law are not complied with, it is primarily the responsibility of the national courts and authorities to deal with any resulting dispute.

(1) OJ L 61, 5.3.1977.