In the context of a geopolitical and industrial crisis, Europe is redefining itself and the transition agenda. Over the past months, businesses have been very vocal of what they do not want and how their agenda can be pushed ahead with the help of the European institutions that have been shifting to the right of the political spectrum.
IndustriAll Europe and its affiliates support the strong call for supportive measures in the form of a proactive industrial policy that uplifts European industry, helps it decarbonise, while avoiding deindustrialisation and delivers good industrial jobs.
We also agree that legislative elements should not contradict each other; they must be coherent. But we do not believe that competitiveness should come at any cost! Competitiveness cannot be achieved to the detriment of quality jobs and workers’ rights; it must lead to sustainable and equal benefits for everyone in Europe.
IndustriAll Europe is one of the co-signatories of the Antwerp Declaration that established core industrial policy demands to enable European industry to decarbonise while remaining competitive on a global scale. In the Declaration, along with many of our sectoral social partners, industriAll Europe calls for a strong public funding chapter as part of a Clean Industrial Deal, with guarantees to retain and create quality jobs. Tying social conditionalities to public support could be a strong lever to achieving this.
IndustriAll Europe’s General Secretary, Judith Kirton-Darling stresses that “Social conditionalities are not a burden on companies, but act as a system in which responsibilities for economic and social wellbeing are shared equally. The returns are manyfold: the availability of a skilled workforce, greater labour market participation and wellbeing, decent living wages and stimulation of demand, tax incomes, regional cohesion, and overall societal peace and trust in democratic organisations.”
Listening to the sirens’ song of some businesses, there is a high risk that vocal calls for competitiveness through deregulation could lead the EU into a race to the bottom, with damaging impacts to its strong social fabric.
“The EU must do better and demonstrate pride in its achievements, especially its strong social model, highly qualified workforce, and its high health and living standards compared to other major economies”, Judith Kirton-Darling affirmed.
As our policy brief explains, social conditionalities are not just wishful thinking, but are already being applied across Europe:
- In Spain, Just Transition Energy Tenders are tying public support to social indicators, such as job creation and training, while the new law on industry and strategic autonomy requires companies to secure sites and jobs when receiving public funding.
- In Portugal, companies using collective agreements can benefit from tax benefits and specific policies regarding access to public or EU funding.
- In Germany, Carbon Contracts for Difference were introduced by the outgoing government to bridge the gap of higher CAPEX and OPEX, with strong conditions of information and the consultation of works councils. Seven federal states have put in place regulation tying public procurement to comprehensive collective bargaining guidelines to ensure quality of services, wages and jobs. Federal law tying public procurement to respect collective agreements is on its way.
The examples given in our policy brief show a way to achieve competitiveness while retaining social sustainability and quality jobs. The Clean Industrial Deal communication reiterates the potentials of social conditionalities.
IndustriAll Europe calls on the European Commission to follow suit and make social conditionalities govern public support that benefits European business, workers and society!
See our Policy Brief here