EU Parliament: MEPs Push for Stricter Restructuring Protections

Employment Committee passes resolution calling for moratorium on forced redundancies, preferential treatment for union-compliant companies in procurement, and a just transition directive

The Key Points: The European Parliament's Employment Committee has passed a resolution calling for a moratorium on forced redundancies and preferential treatment for companies complying with collective bargaining agreements during restructuring processes.

Why This Matters: This resolution reflects a growing trend toward increased regulation of employment practices, which could significantly affect restructuring plans and operational flexibility for businesses.

What Might Happen Next: If adopted, these measures could lead to stricter guidelines on how companies manage lay-offs and restructuring, potentially resulting in more extensive negotiations with employee representatives.

Our Comment: Member companies, through the government affairs units, should follow this issue closely. It tells us the direction of travel that a majority in the Employment Committee would want to take over the coming years. Whether there is support for this direction in the wider Parliament is problematic, given its centre-right political makeup. But even among right-of-centre parties there is a certain amount of hostility to “big business,” especially when concerns about the jobs of their voters are raised. 

ADDITIONAL INFORMATION:

In quotes, Estelle Ceulemans MEP, wants the Commission and the Member States 

“…to urgently agree on a moratorium on forced redundancies with a temporary support programme to protect employment during transitions”. 

She also wants the Commission 

“to revise the European Public Procurement Directive in order to establish preferential treatment for companies complying with collective bargaining agreements; calls on the Commission to strengthen the social clause and exclude from tenders companies that have engaged in criminal activities or union busting or that have refused to participate in collective bargaining.”