EU level social partners: Contractual relations and agreements

The social dialogue at European Community (European Union) level can lead to contractual relations, including agreements, between management and labour.

The EU level social partners are confederations of national business organisations and trade unions, so how can these agreements between be put into effect?

Are there any practical examples of implemented European level agreements by European level social partners?


***

Social policy objectives

As a reminder, the social policy objectives mentioned in Article 136 TEC (ex Article 117), in the latest consolidated version of the treaties, OJ 29.12.2006 C 321 E/103, are important for management (employers, businesses) and labour (trade unions):

– promotion of employment

– improved and harmonised living and working conditions

– social protection

– dialogue between management and labour

– development of human resources

– combating exclusion.

***

Article 139 TEC

Article 139 (ex Article 118b) of the Treaty establishing the European Community (TEC) invites management and labour to establish contractual relations, including agreements at European level.

The European level organisations are free to agree how they cooperate.

Basically they cannot conclude agreements binding on third parties (labour markets in the member states).

Binding effects can be achieved in two ways:

1) Community level agreements can be transformed in accordance with the procedures and practices in each member state.

2) The Council can issue norms in matters covered by Article 137 TEC.

In the latter case, the organisations agree and request, the Commission proposes and the Council decides.

Unanimity in the Council is required concerning the fields covered in Article 137(1)(c), (d), (f) and (g) TEC. In other cases qualified majority voting applies.

Agreements concerning pay, the right of association, the right to strike or the right to impose lock-outs are excluded. Cf. Article 137(5) TEC.

The current Article 139 TEC, as published in the latest consolidated version of the treaties, OJ 29.12.2006 C 321 E/109:

Article 139 TEC

1. Should management and labour so desire, the dialogue between them at Community level may lead to contractual relations, including agreements.

2. Agreements concluded at Community level shall be implemented either in accordance with the procedures and practices specific to management and labour and the Member States or, in matters covered by Article 137, at the joint request of the signatory parties, by a Council decision on a proposal from the Commission.

The Council shall act by qualified majority, except where the agreement in question contains one or more provisions relating to one of the areas for which unanimity is required pursuant to Article 137(2). In that case, it shall act unanimously.

***


Original Lisbon Treaty (ToL)

Article 2, point 118 of the original Treaty of Lisbon (ToL) amends Article 139 TEC in the following way (OJ 17.12.2007 C 306/81):

118) Article 139(2) shall be amended as follows:

(a) at the end of the first subparagraph, the following sentence shall be added: ‘The European Parliament shall be informed.’;

(b) in the second subparagraph, at the beginning of the first sentence, ‘The Council shall act by qualified majority, except where the agreement’ shall be replaced by ‘The Council shall act unanimously where the agreement’ and the second sentence shall be deleted.

***

Renumbering ToL

The Table of equivalences of the original Treaty of Lisbon tells us that the social policy title was to be renumbered Title X and that the Article 139 TFEU (ToL) was to be renumbered Article 155 TFEU in the consolidated version of the amending treaties (OJ 17.12.2007 C 306/214).


***


Consolidated Lisbon Treaty

The exclusion of the European Parliament was mitigated by adopting the obligation to inform the EP from Article III-212(2) of the Constitutional Treaty, as proposed by the European Convention in Article 106(2) of the draft Constitution.

After the horizontal amendments and the editorial change to the second subparagraph of paragraph 2, Article 155 of the Treaty on the Functioning of the European Union (TFEU), in the consolidated TFEU, published in the Official Journal of the European Union, OJ 9.5.2008 C 115/116, appears as follows:

(TITLE X
SOCIAL POLICY)

Article 155 TFEU
(ex Article 139 TEC)

1. Should management and labour so desire, the dialogue between them at Union level may lead to contractual relations, including agreements.

2. Agreements concluded at Union level shall be implemented either in accordance with the procedures and practices specific to management and labour and the Member States or, in matters covered by Article 153, at the joint request of the signatory parties, by a Council decision on a proposal from the Commission. The European Parliament shall be informed.

The Council shall act unanimously where the agreement in question contains one or more provisions relating to one of the areas for which unanimity is required pursuant to Article 153(2).

***

Social partners

Again, Article 139 TEC and Article 155 TFEU employ the vague concept ‘management and labour’ in the English language version, but the reference to the Community (Union) level gives some guidance.

More distinctly, when I compared five other language versions of Article 155 TFEU they employ the term ‘social partners’ or something close to that, clearly evoking representative organisations of employers (businesses) and labour (trade unions) at European level.

German: Sozialpartner
French: partenaires sociaux
Spanish: interlocutores sociales
Finnish: työmarkkinaosapuolet
Swedish: arbetsmarknadens parter

For management and labour in the English language version of the current and future treaties, read social partners, because other language versions are explicit.

***

Main European level social partners: Who are they?

The membership of the main Social dialogue committee (SDC) includes the main cross-sectoral players: the European Trade Union Confederation (ETUC), the Confederation of European Business (Businesseurope), the European Centre of Enterprises with Public Participation and of Enterprises of General Economic Interest (CEEP), the European Associaiton of Craft, Small and Medium Sized Enterprises (UEAPME), Eurocadres and the European Confederation of Executives and Managerial Staff (CEC):

http://ec.europa.eu/employment_social/social_dialogue/interprof_en.htm


***

Social dialogue

The Commission’s DG Employment, Social Affairs and Equal Opportunities offers web pages with information about the European social dialogue. A distinction is made between bipartite dialogue involving employers and trade unions (the subject of Article 139 TEC and Article 155 TFEU) and a tripartite dialogue with the participation of public authorities (the subject of Article 138 TEC and Article 154 TFEU). Consultation takes place both generally (cross-industry social dialogue) and on a sectoral basis:

http://ec.europa.eu/employment_social/social_dialogue/index_en.htm

***

Bipartite social dialogue

The Commission’s DG Employment, Social Affairs and Equal Opportunities offers a web page Bipartite Social Dialogue at European level:

http://ec.europa.eu/employment_social/social_dialogue/bipartite_en.htm

In addition to the main social dialogue committee (SDC), there are 33 sectoral committees.

***

Social dialogue results

A web page called Typology of European social dialogue results presents practical examples:

http://ec.europa.eu/employment_social/social_dialogue/typology_en.htm

***

Eurofound

Additional information on various aspects of employment issues from a research and communication viewpoint is offered by Eurofound, the European Foundation for the Improvement of Living and Working Conditions:

http://www.eurofound.europa.eu/about/index.htm



Ralf Grahn

European Union: Consulting management and labour

The Commission supports dialogue between management and labour at Community level and consults them before and after issuing proposals.

For management and labour in the English language version of the current and future treaties, read social partners, because other language versions are explicit.

German: Sozialpartner
French: partenaires sociaux
Spanish: interlocutores sociales
Finnish: työmarkkinaosapuolet
Swedish: arbetsmarknadens parter

Suggestions for further reading are presented with regard to various aspects of the social dialogue between representative European organisations for business and trade union interests and consultations concerning planned or issued proposals.


***

Social policy objectives

The social policy objectives mentioned in Article 136 TEC (ex Article 117), in the latest consolidated version of the treaties, OJ 29.12.2006 C 321 E/103, are important for management (employers, businesses) and labour (trade unions):

– promotion of employment

– improved and harmonised living and working conditions

– social protection

– dialogue between management and labour

– development of human resources

– combating exclusion.

***

Article 138 TEC

Article 138 (ex Article 118a) of the Treaty establishing the European Community (TEC) sets out mandatory consultation of management and labour by the Commission.

The Commission promotes consultation at Community level and facilitates dialogue between management and labour with regard to social policy.

The Commission consults management and labour before issuing proposals.

The Commission consults management and labour on proposals.

Article 138 TEC refers to possible European Community level agreements between management and labour.

The current Article 138 TEC, as published in the latest consolidated version of the treaties, OJ 29.12.2006 C 321 E/108–109:

Article 138 TEC

1. The Commission shall have the task of promoting the consultation of management and labour at Community level and shall take any relevant measure to facilitate their dialogue by ensuring balanced support for the parties.

2. To this end, before submitting proposals in the social policy field, the Commission shall consult management and labour on the possible direction of Community action.

3. If, after such consultation, the Commission considers Community action advisable, it shall consult management and labour on the content of the envisaged proposal. Management and labour shall forward to the Commission an opinion or, where appropriate, a recommendation.

4. On the occasion of such consultation, management and labour may inform the Commission of their wish to initiate the process provided for in Article 139. The duration of the procedure shall not exceed nine months, unless the management and labour concerned and the Commission decide jointly to extend it.


***


Original Lisbon Treaty (ToL)

Article 2, point 117 of the original Treaty of Lisbon (ToL) amends Article 138 TEC in the following way (OJ 17.12.2007 C 306/81):

117) In Article 138(4), first sentence, the words ‘On the occasion of such consultation,’ shall be replaced by ‘On the occasion of the consultation referred to in paragraphs 2 and 3,’ and, in the second sentence, the words ‘the procedure’ shall be replaced by ‘this process’.

***

Renumbering ToL

The Table of equivalences of the original Treaty of Lisbon tells us that the social policy title was to be renumbered Title X and that the Article 138 TFEU (ToL) was to be renumbered Article 154 TFEU in the consolidated version of the amending treaties (OJ 17.12.2007 C 306/214).


***


Consolidated Lisbon Treaty

After the modest specific amendments and after inserting the horizontal amendments, Article 154 of the Treaty on the Functioning of the European Union (TFEU), in the consolidated TFEU, published in the Official Journal of the European Union, OJ 9.5.2008 C 115/116, looks like this:

(TITLE X
SOCIAL POLICY)

Article 154 TFEU
(ex Article 138 TEC)

1. The Commission shall have the task of promoting the consultation of management and labour at Union level and shall take any relevant measure to facilitate their dialogue by ensuring balanced support for the parties.

2. To this end, before submitting proposals in the social policy field, the Commission shall consult management and labour on the possible direction of Union action.

3. If, after such consultation, the Commission considers Union action advisable, it shall consult management and labour on the content of the envisaged proposal. Management and labour shall forward to the Commission an opinion or, where appropriate, a recommendation.

4. On the occasion of the consultation referred to in paragraphs 2 and 3, management and labour may inform the Commission of their wish to initiate the process provided for in Article 155. The duration of this process shall not exceed nine months, unless the management and labour concerned and the Commission decide jointly to extend it.


***

Social partners

The vague concept ‘management and labour’ becomes more distinct by the reference to the Community (Union) level.

In addition, the five other language versions I compared with employ the term ‘social partners’ or something close to that, clearly evoking representative organisations of employers and labour.

***

Social dialogue

The Commission’s DG Employment, Social Affairs and Equal Opportunities offers web pages with information about the European social dialogue. A distinction is made between bipartite dialogue involving employers and trade unions and a tripartite dialogue with the participation of public authorities. Consultation takes place both generally (cross-industry social dialogue) and on a sectoral basis:

http://ec.europa.eu/employment_social/social_dialogue/index_en.htm

***

Cross-industry social dialogue

Added information on cross-industry social dialogue, within the Social dialogue committee (SDC), involving the European Trade Union Confederation (ETUC), the Confederation of European Business (Businesseurope), the European Centre of Enterprises with Public Participation and of Enterprises of General Economic Interest (CEEP), the European Associaiton of Craft, Small and Medium Sized Enterprises (UEAPME), Eurocadres and the European Confederation of Executives and Managerial Staff (CEC):

http://ec.europa.eu/employment_social/social_dialogue/interprof_en.htm

***


Sectoral social dialogue

There is a host of sectoral social dialogue committees:

http://ec.europa.eu/employment_social/social_dialogue/sectoral_en.htm

***

Social dialogue at company level

Social dialogue at company level for multinational companies covered by the European Works Councils Directive are presented here:

http://ec.europa.eu/employment_social/social_dialogue/company_en.htm

***

Article 138 TEC consultations

Consultations based on Article 138 TEC are presented here:

http://ec.europa.eu/employment_social/social_dialogue/consultations_en.htm



Ralf Grahn

European Union: Social partners and Tripartite Social Summit

Sometimes the EU Treaty of Lisbon introduces new elements to ordinary ‘Community’ policy areas. The social partners are recognised and the Tripartite Social Summit for Growth and Employment is consecrated at treaty level.

We ask our readers to reflect upon a translation issue: The English treaty uses different terms in two places where five other language versions stay on track.

Some policy oriented materials are indicated for further reading.

***

Current TEC

Yesterday’s post looked at the social policy objectives of the European Community (European Union), mentioned in Article 136 TEC (ex Article 117), in the latest consolidated version of the treaties, OJ 29.12.2006 C 321 E/103:

– promotion of employment

– improved and harmonised living and working conditions

– social protection

– dialogue between management and labour

– development of human resources

– combating exclusion.

***

Management and labour or social partners?

In the blog post ‘European Union: Employment Committee’ we discussed the differences between the English terminology and five other language versions in the context of Article 130 TEC and Article 150 TFEU:


Management and labour

The English version of the treaties refers to consulting ‘management and labour’. We look at the wording of the sentence, first in English:

In fulfilling its mandate, the Committee shall consult management and labour.

Management and labour seem to be given more exact contours, when we turn to the German version:

Bei der Erfüllung seines Auftrags hört der Ausschuss die Sozialpartner.

The French words, likewise, gives management and labour a more precise meaning than the English treaty text:

Dans l'accomplissement de son mandat, le comité consulte les partenaires sociaux.

The Spanish treaty text catches another nuance of the parties or partners to be consulted:

Para llevar a cabo su mandato, el Comité deberá consultar a los interlocutores sociales.

The Finnish treaty text uses (almost) the same terminology as the German and the French, although the customary term evokes contracting parties (collective agreements) as much as partners in a dialogue:

Tehtäväänsä toteuttaessaan komitea kuulee työmarkkinaosapuolia.

The Swedish text uses the term ’arbetsmarknadens parter’ identical with the Finnish concept:

Kommittén ska när den utför sitt uppdrag höra arbetsmarknadens parter.

We can conclude that the drafters of the treaties have had organised employers and organised labour in mind and that national systems of collective bargaining and traditions of dialogue between management and employee interests are reflected in the various terms used. Anyway, the English version seems to be less exact than the other language versions. (The Title Social policy is imbued with references to the social partners.)


***

Social partners

Even if Article 130 TEC and Article 150 TFEU used ‘management and labour’ in the English treaty versions, ‘social partners’ is a recurring term in eurospeak or euro jargon.

The Europa Glossary outlines the meaning of ‘social partners’ in the following way (although it leans heavily on Article 138 TEC, in the current Title XI Social policy, education, vocational training and youth):

Social partners

The glossary is being updated given the recent signing of the Treaty of Lisbon.

The Commission is required to consult various social partners when it wishes to submit proposals in this field (article 138 of the EC Treaty). This social dialogue occurs via the three main cross-industry organisations representing the social partners at European level:

the European Trade Union Confederation (ETUC);
the Union of Industrial and Employers' Confederations of Europe (BUSINESSEUROPE);
the European Centre of Enterprises with Public Participation (CEEP).

In addition to these three European cross-industry organisations, there are many other socio-professional groups representing specific or sectoral interests.

It is the Commission's task to promote consultation of the social partners and take any relevant measures to facilitate their dialogue by ensuring balanced support for the parties.

Before submitting proposals in the field of social policy, the Commission consults the social partners on the possible direction of EU action.

The social partners also play an important role in the European Economic and Social Committee, where they sit alongside other representatives of civil society.

***

Original Lisbon Treaty (ToL)


The Treaty of Lisbon (ToL) is still on its rocky road to possible entry into force. Agreed and signed between 27 member state governments, it has by now been approved by the national parliaments in 25 member states ahead of the original target date for entry into force (1 January 2009). Among the parliamentary ratifiers, only the holder of the next Council Presidency, the Czech Republic, looks certain to miss the agreed target date.

In addition, Ireland is pondering its European future following the negative outcome of the 12 June 2008 referendum. (You can find updated references to materials of general European interest on the debate in the posts ‘Ireland and Lisbon Treaty’ and ‘UCD Dublin European Institute: Irleand’s Future in Europe’.)

Anyway, in some instances the Lisbon Treaty is the most up-to-date manifestation of what the member state governments want the treaties to say.

On the other hand, the treaty reform process, at least since the Treaty of Nice, has been focused on so called institutional innovations. With a few notable exceptions, most areas of Community policy have only been updated and adjusted technically to the different reform treaty versions: the draft Constitution, the Constitutional Treaty and the Lisbon Treaty.

After moving Title IX Common commercial policy and Title X Customs cooperation, employment, social policy and the European Social Fund (ESF) would follow each other in a more logical order when the Lisbon Treaty is in force.

In addition, Title XI Social policy, education, vocational training and youth is divided into separate Titles, which makes the treaty easier to read.

Although the bulk of the Treaty establishing the European Community undergoes technical adjustments, Article 2, point 115 of the original Treaty of Lisbon (ToL) makes en exception by introducing a new Article (OJ 17.12.2007 C 306/81):

115) The following new Article 136a shall be inserted:

‘Article 136a

The Union recognises and promotes the role of the social partners at its level, taking into account the diversity of national systems. It shall facilitate dialogue between the social partners, respecting their autonomy.

The Tripartite Social Summit for Growth and Employment shall contribute to social dialogue.’.

***

Renumbering ToL

The Table of equivalences of the original Treaty of Lisbon tells us that the social policy title was to be renumbered Title X and that the new Article 136a TFEU (ToL) was to be renumbered Article 152 TFEU in the consolidated version of the amending treaties (OJ 17.12.2007 C 306/214).


***


Consolidated Lisbon Treaty



The new Article 152 of the Treaty on the Functioning of the European Union (TFEU), in the consolidated TFEU, published in the Official Journal of the European Union, OJ 9.5.2008 C 115/114, looks like this:

(TITLE X
SOCIAL POLICY)

Article 152 TFEU

The Union recognises and promotes the role of the social partners at its level, taking into account the diversity of national systems. It shall facilitate dialogue between the social partners, respecting their autonomy.

The Tripartite Social Summit for Growth and Employment shall contribute to social dialogue.


***

Article 152 TFEU background

The intergovernmental conference (IGC 2007) did very little creative or innovative work. Its objective was to salvage the essential ‘institutional innovations’ of the Constitutional Treaty in the form of an amending treaty. Some reform provisions were watered down, but in the end the bulk of the Lisbon Treaty far exceeded the initial notion of a ‘mini treaty’.

In other words, we have to look at the draft Constitution and the Constitutional Treaty if we want to know how we ended up with Article 152 TFEU.

***

Draft Constitution I-47

The European Convention included a new Article I-47 on the social partners and autonomous social dialogue, under Title VI The democratic life of the Union (OJ 18.7.2003 C 169/20):

Article I-47 Draft Constitution
The social partners and autonomous social dialogue

The European Union recognises and promotes the role of the social partners at Union level, taking into account the diversity of national systems; it shall facilitate dialogue between the social partners, respecting their autonomy.

***

de Poncins

Étienne de Poncins offered the following comment on the new Article I-47 in Vers une Constitution européenne (Éditions 10/18, 2003), on page 215:

« Point à relever : reconnaissance du dialogue social

Le contenu de cet article doit beaucoup aux partenaires sociaux ainsi qu’aux Conventionnels membres du Comité économique et social et bénéfiant du statut d’observateurs au sein de la Convention. La Convention reconnaît le rôle et la place du dialogue social en l’inscrivant dans la Partie I de la Constitution. »

***

Constitutional Treaty I-48

This is one of the instances where the intergovernmental conference (IGC 2003–2004) actually added something to the draft Constitution.

Article I-48 of the Treaty establishing a Constitution for Europe retained the text of Article I-47 proposed by the European Convention and the provision’s location in the ‘constitutional’ first part, but the IGC also added a second paragraph on the Tripartite Social Summit for Growth and Employment (OJ 16.12.2004 C 310/35):

Article I-48 Constitution
The social partners and autonomous social dialogue

The Union recognises and promotes the role of the social partners at its level, taking into account the diversity of national systems. It shall facilitate dialogue between the social partners, respecting their autonomy.

The Tripartite Social Summit for Growth and Employment shall contribute to social dialogue.

***

From the Constitution to the Lisbon Treaty

We notice that Article 152 TFEU takes over the wording of Article I-48 Constitution without change, but the location is shifted from the lofty first part of the Constitution to the more commonplace Title on social policy.

***

Translation again

Above we noted that the English language version of the treaty employed the non-distinct term ‘management and labour’ in Article 130 TEC and Article 150 TFEU, where five other language versions evoked ‘social partners’ or something close to it.

But in Article 152 TFEU the English treaty text adopts the term ‘social partners’ and speaks of ‘social dialogue’.

The five other language versions continue to employ the customary concepts: German (Sozialpartner, soziale Dialog), French (partenaires sociaux, dialogue social), Spanish (interlocutores sociales, diálogo social), Finnish (työmarkkinaosapuolet, työmarkkinaosapuolten välinen vuoropuhelu) and Swedish (arbetsmarknadsparter, dialog mellan arbetsmarknadens parter).

***

Tripartite Social Summit for Growth and Employment

Although the consecration of the Tripartite Social Summit for Growth and Employment at treaty level is a novelty, this institutionalised dialogue exists informally since 2000 and formally pursuant to Council Decision 2003/174/CE of 6 March 2003 establishing a Tripartite Social Summit for Growth and Employment (OJ 14.3.2003 L 70/31:

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2003:070:0031:0033:EN:PDF

The Commission’s SCADPlus web page Tripartite Social Summit for Growth and Employment offers an overview:

http://europa.eu/scadplus/leg/en/cha/c10715.htm

Ahead of the 2008 spring European Council the Slovenian Council Presidency informed about the traditional upcoming Tripartite Social Summit for Growth and Employment:

http://www.eu2008.si/si/News_and_Documents/Fact/March/0313_EC-SOCTripart.pdf

The current French Council Presidency is not known for being averse to summits. The latest tripartite summit was held 15 October 2008:

http://www.eu2008.fr/PFUE/site/PFUE/lang/en/sommet_social_tripartite


Ralf Grahn