EMF Automotive Representatives meet with EU Commissioner Günter Verheugen

After an exchange of views with Peter Scherrer, the EMF General Secretary, and the EMF automotive sector representatives, there was a common view with regard to the following:

- Measures to allow producers, suppliers and the after market - and particularly SMEs -better access to capital via the European Investment Bank for example

- Extension of the objectives of the European Globalisation Fund and use of this fund for the automotive industry

- The need for legal certainty in respect of the CO² regulation, and hence a quick decision by the European Parliament and Council, since delays will further affect the crisis in this industry

- Investment in education and training policies to ensure that the European workforce is ready for future challenges stemming from technological change

- Fiscal measures, i.e. temporary reduction in registration/circulation tax

- A coordinated, Europe-wide premium for the scrapping of cars over 10 years old

Both parties agreed that Europe’s future lies in quality products with strong safety features, produced by a highly-skilled and motivated workforce. The European automotive industry is highly competitive and profitable and is capable of producing the safest and cleanest cars with the most advanced technology. Therefore the low-cost loan packet should be geared also to a medium and long-term strategy to meet future environment and mobility requirements.

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Press 33/2008

Peter Scherrer pointed out that if aid was granted it had to be subject to certain conditions, i.e. it should not lead to restructuring or any loss of jobs, collective agreements must be respected and negotiated pay maintained. Tax money should not be used for capacity adjustment, nor should dividends be paid out to shareholders or money be paid back via share buyback. On the other hand, workers’ representative should be have a say in the way that public aid is used within a company.

The trade union demands also included

- Discount on the price of a new car, granted by the manufacturers in the event of purchase of a less pollutant vehicle

- A public investment programme to encourage involvement by regional and local authorities and reinforce investment in high energy-efficient plant equipment or improving workers’ qualifications and skills

- More competence for and involvement of (European) works councils in order that their consent be sought prior to any change in the employment structure of a company receiving public aid, loans or other subsidies

- A financial participation scheme, guaranteeing employees some return in the event of improvement in the company’s economic situation in return for possible concessions by employees.

- Establishment and real commitment to social dialogue at European level.

For the EMF, the current crisis shows that a system where industrial policy is only defined in terms of competitiveness and short-term profitability has reached its limits. Providing social funds to cover the cost generated by this logic on employment and social issues, as a supplementary option, is insufficient. However, fundamental changes to the design of the system will yield its fruits only in the medium term.

The EMF and its affiliated trade unions thanked Commissioner Verheugen and welcomed the various measures planned to help the sector but insisted on the fact that strong conditions must frame these aid packages.

Commissioner Verheugen concluded that these had been most useful and constructive talks and stressed the importance of further dialogue with the EMF.

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The EMF is the representative body defending the interests of workers in the European metal industry. The EMF has a mandate for the external representation and coordination of the metalworkers' unions and a mandate to engage in bargaining at European level.

For further information please contact:

Editor, Peter Scherrer, EMF General Secretary

Wolf Jäcklein, Automotive Sector Policy Adviser