Trade union organisations have raised serious concerns about future prospects in the sector and the rapid increase of job losses in the industry. “Current restructuring patterns suggest that employment and localities relying heavily on the automotive industry in many parts of Europe will suffer dramatically from the relocation of production sites from Europe to low-cost economies”, stressed Peter Scherrer, EMF General Secretary.

Trade union representatives emphasised the negative impact of the endless cost-cutting strategy adopted by manufacturers in Europe. Such strategies jeopardize industry’s ability to invest in new technologies which will allow them to develop in the long-term. They place the whole value-chain under great pressure and discourage suppliers to undertake in any further R&D investments which are vital to the industry and to jobs in the sector.

Discussing the CARS 21 communication issued on 7 February 2007, trade union delegates welcomed the inclusion of employment and restructuring issues in the Commission’s document. Commissioner Verheugen expressed that the “employment” pillar of the Commission’s overall economic strategy needed to be strengthened and committed to work in close co-operation with trade union organisations in the follow-up to the CARS 21 consultation process.

“We are pleased to see DG Enterprise willing to place competitiveness, sustainability and employment on an equal footing. The ‘restructuring forum on the automotive industry’ called for in the CARS 21 communication is an important proposal. We look forward to engaging in discussion with other stakeholders and with the Commission’s services on this issue. However, we hope to see that proposal materialising rapidly as car industry employees will not wait to express their discontent if no progress is made. At a time when the idea of Europe is being severely criticized, a laissez-faire approach could be a dangerous attitude to take”, stated Mr. Scherrer.

Commissioner Verheugen echoed the proposal by EMF representatives that workers’ consultation and information rights need to be reinforced at European level to enable employees to be involved prior to decision-making and therefore mitigate negative impacts of restructuring.

Finally, trade union representatives expressed their hope that the statement made in the CARS 21 communication according to which European structural funds will be used to better support the industry and its workers will indeed become a reality. “The EU Commission must resort more consistently to structural and research funds to help the industry to grow. In order to avoid a waste of financial resources, it is imperative that the Commission co-ordinates the efficient use of those funds for the automotive sector. ” added Mr. Scherrer.

PRESS 5/2007

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