The European Trade Union Confederation (ETUC) cannot endorse the Competitiveness Compass if it continues to undermine jobs, rights and standards.
While the Compass published today by the European Commission recognises that quality jobs are an important part of a competitive economy, that is undermined by a focus on deregulation.
That is why the ETUC will not accept the invitation included in the document for European Social Partners to endorse its proposal. Negotiations on the proposal should have taken place before the publication and the ETUC is now seeking an urgent meeting with President von der Leyen.
The problems with the Competitiveness Compass include:
- The proposal for the 28th company regime which would allow some companies to operate outside of national labour law. This would be a recipe for disaster and risks undermining all employment legislation throughout Europe;
- The plan includes an explicit call for pension reforms based on longer working lives;
- While there are countless promises made to business groups, the plan does not contain a single commitment to legislation that would benefit working people, such as answering how working people will succeed in the green and digital transitions;
- The plan would pour public money into corporations without any social conditions needed to ensure it is used to create quality jobs rather than create higher CEO bonuses or share buybacks.
ETUC General Secretary Esther Lynch said:
“Trade unions are fully on board with the need to make our economy more competitive. There is a need to create jobs and competitive companies but it’s not workers and their rights which are the problem. Unfortunately quality jobs are an afterthought to deregulation in this plan.
“While it’s welcome to have a first step towards a European industrial policy, this first draft needs significant negotiation and revision. The Commission is asking too much of the wrong people. A bonfire of regulations that will make workplaces less safe or force people to work into their seventies isn’t going to be what saves companies.
“In fact, we know that Europe’s competitiveness has been badly undermined recently by poor quality jobs, with low wages and bad conditions playing an important role in exacerbating labour shortages.
“That’s why we need to ensure the massive public investment promised today by President von der Leyen comes with social conditions that turns this plan into a win-win for workers and companies.
“Europe needs to accept we can never win a race to the bottom and instead set its sights on a future built on high investment, high social standards and high quality jobs. This is not over. Workers and their unions have ideas about competitiveness and they should be listened to at company, sector, national and European level.”
