WRITTEN QUESTION P-1208/01

by Gérard Caudron (PSE) to the Council

(11 April 2001)

Subject: Closure of healthy undertakings

The brutal and cynical announcements of closures at Danone and Marks and Spencer demonstrate to those who might still have had any doubts that the era of the mixed economy and the European social model is dead.

Restructuring in undertakings as a result of genuine economic problems would be understandable, but it is not possible to accept restructuring in healthy and prosperous undertakings which have only one single objective: increasing the profits of those who own capital.

If agricultural crises can prompt our officials to take action, voluntary acts of vandalism which, in the name of money, destroy entire families should cause our European leaders to act at least as decisively, particularly given that the absence of any reaction will cause this trend to accelerate in the future.

For this reason, I ask you most earnestly what you intend to do.

Reply

(27 September 2001)

The Council is aware that restructurings of undertakings such as those mentioned by the Honourable Member in his question may have serious economic and social consequences for employees and their families.

However, the legislative nature of the Council's role - which is similar to the European Parliament's - does not allow it to intervene in the implementation of European legislation, which is the responsibility of the Member States under the supervision of the Commission and, where necessary, the Court of Justice; nor does it allow the Council to comment on cases involving particular undertakings.

In the first instance, it is for the judicial and social structures of the Member States concerned to resolve any disputes between employees and employers in cases of restructuring and to establish whether the undertakings have acted in accordance with national legislation and practices, including those based on Community law (for example, the Directive on collective dismissals (98/59/EC) and the Directive concerning a European Works Council or a procedure for informing and consulting employees in Community-scale undertakings (94/45/EC)).

The Honourable Member's attention is drawn to the fact that the Council is continuing to adapt and supplement the existing legislation. The proposal for a Directive on a European Company - which regulates the involvement of employees - will be adopted in the near future. Furthermore, on ll June 2001 the Council reached political agreement on the Directive on the informing and consulting of employees at national level.