The ETUC’s call for a major shift towards more EU investment has been backed by Draghi, but trade unions warn that specific measures will be needed to ensure the investment creates quality jobs in all sectors and all regions.
Trade union involvement will be key. Social dialogue and collective bargaining must be at the centre of the solution for European competitiveness. We call on the President of the European Commission to convene a social partner working group to discuss the report and the way forward.
Strong labour focus for EU level investment
The ETUC has long identified the consequences for working people of the chronic under-investment in industry and public services. Mario Draghi has recognised this in his report on the Future of European Competitiveness recommending an additional investment of more than 800 billion Euros a year.
This should mark a turning point in the EU’s approach. The ETUC strongly backs an ambitious European industrial policy that will support common goods and innovation, based on strong public services, social protection, housing, transport and childcare. Failed austerity policies must be rejected by the EU and member states and instead the EU must develop ambitious common investment tools.
Delivering quality jobs
While the report’s recommendations rightly stress the need for massive investment as a means of boosting competitiveness, they do not detail the necessary measures that will guarantee the protection and creation of quality jobs in every sector and every region.
Investments cannot be a blank check when it comes to workers’ rights. The ETUC has been making the case for investments to be tied to the promotion collective bargaining as a means of delivering quality jobs.
The report also calls for ensuring that all workers have the right to education and retraining. This is within reach but only with sufficient investments and legislative initiatives to guarantee the right to training. An EU directive to support genuine involvement of trade unions in the anticipation and management of change for Europe’s green and digital transitions will be decisive.
Avoiding a race to the bottom
It is positive that the report confirms that Europe cannot gain competitiveness through wage repression and that investment is the way to boost productivity.
However, the ETUC is very concerned about the resurfacing of the deregulation agenda, in particular the call for the EU to "self-restrain" and the misguided arguments against "gold-plating". These have the potential to undermine essential rights. Protective rules ensure a level-playing field and a resilient, high-quality and future-proofed economy based on innovation, and should not be considered as a drag on competitiveness.
The ETUC calls on Commission President von der Leyen to establish a high-level social partners working group on how to deliver an EU industrial policy for quality jobs along with other recommendations. Social Europe and competitive Europe are two sides of the one coin.
Esther Lynch, ETUC General Secretary, said:
“The evidence is in. All actors are pointing in the same direction. Will the EU grasp the nettle and reverse the tide of underinvestment?
“Europe will not win a race to the bottom on deregulation. Our innovation edge is based on the high skills of Europe’s workforce and the high added value jobs they attract.
“Investing in the workforce through training opportunities that further people’s skills and through quality jobs that motivate workers to take an active role in furthering innovation is crucial.
“Anticipation and management of change to achieve a competitive Europe is key. This means reinforcing collective bargaining. The EU must use all levers to support member states to achieve the 80% of workers covered by a collective agreement.
“Quality jobs, with fair pay and good working conditions, social dialogue and collective bargaining are at the heart of competitiveness. It is positive that the Draghi report recognises that Europe should not try to compete on a race to the bottom on pay. However, we need to guarantee that investments come with strings attached to ensure quality jobs and social progress.”
“The focus on deregulation included in the report must be rejected, including all attacks against ‘gold-plating’. We need a regulatory environment that protects workers and trade union rights.”
