Trade unions
Trade unions
in outward- relocation European countries focus principally on the management
of relocation at company level. While recognizing that relocation is a feature
of today’s economic environment and generally eschewing protectionism they
demand full consideration of relocation’s social and employment consequences.
They essentially argue that since cost competition with emerging economies is
not viable consultation procedures and collective bargaining should help
identify alternatives to relocation or if the parties agree that it is
unavoidable contribute to creating set measures to cushion the negative impacts
on workers.
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The unions
want an institutional environment that is conducive their involvement in relocation
decisions at company level and that constrains- indirectly or directly- the
possibilities of relocating production. They mostly consider relocation as a
threat both for workers and for the domestic economy as a whole.
Unions
support a number of approaches for coping with challenges of relocation the
emphasis on each varies between and within countries:
A traditional approach
that promotes the role of industrial relations at the level of firm. This may
be through a requirement for the early disclosure of information and the setting
up of consultation procedures with a view to reaching an agreement either on
alternative solutions or on the implementation of the relocation and the
handling of its impacts. This traditional approach demands a strengthening of
the role of European Works Councils EWCs and the development of cross- border
union cooperation. It also supports.
The cross-
border harmonization of employment conditions through the enforcement of
International Labour organization ILO standards. The establishment of Europe- wide
agreements on basic employment conditions and labor protection. The definition
of common tax policies- to avoid social dumping and reduce the incentives for
regime shopping based on labour protection differentials.
An
interventionist or restrictive approach that aims to reduce the direct benefits
or even the possibility of relocations. This may take the form of rules
requiring a commitment to maintain production at a certain location for a
minimum period when a multinational decides to set up a new plant.
Alternatively it may mean an obligation the public subsidies be returned if
production is transferred abroad before a certain period has elapsed. Unions
also support regulations that require a substantial contribution on the part of
relocation firms to covering the social costs of such relocation.
This may take
the form of the mandatory provision of retraining or outplacement. They are
also in favor of limiting the extent to which public welfare services cover the
social cost of relocation without any assistance from the relocating firm.
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