Jean Monnet Summer Course EU Labour Law Perspectives

Jean Monnet Summer Course EU Labour Law Perspectives: Enhancing the EU Social Pillar Amsterdam, 22 nd 2018 Implementing the European Pillar of Social Rights Bart Vanhercke European Social Observatory This Course is funded by the Erasmus+ Jean Monnet program of the European Commission

Outline of the talk 1. The broader framework & narrative surrounding the Pillar 2. The European Pillar of Social Rights as a new EU social policy framework 3. Policy recommendations to ensure a positive social impact 4. Elements for an implementation roadmap 5. Wrapping things up

1. The framework and narrative 1. 1 Debate on the ‘future of Europe’: looming large over the EU’s social dimension, incl. the Pillar Disintegration More Member States leave the EU (GREXIT, FREXIT, NEXIT, AUXIT… SEXIT? ) • Or, at least, the ambitions of the European project are downsized • But in practice, BREXIT spurred the EPSR proposal ! Differentiated integration A cluster (“core group”) of MS advances towards further integration in specific policy domains (others could join later) • • • But how would this work in practice in the social domain? Who are the actors that support this pathway? The unanimous (!) proclamation of the EPSR shows little appetite for this scenario Further integration The 27 continue to advance together towards a “closer and deeper” Union

1. 2 The social dimension of the EU: an “oxymoron”? Context of ‘constitutional asymmetry’ • Favouring negative integration (constraining MS) • Impeding positive integration (supporting MS policies )

2. The European Pillar of Social Rights as a new EU social policy framework (EESC report) ‘‘A policy infrastructure putting together in a coherent manner the various elements of a public policy, from agenda-setting to implementation” Three functions 1. Revamping the EU Social Agenda 2. Steering Member States’ policies 3. Influencing EU macro-economic and fiscal policies

2. 1 The EPSR as a new EU social policy framework • “Pillar package” (26 April 2017) – Revision of the Written Statement Directive (‘Transparent and Predictable Working Conditions’), preceded by a social partner consultation – Proposal for a Directive on Work-Life balance for Parents and Carers, preceded by social partner and public consultations – Interpretative guidance on the Working Time Directive

2. 1 The EPSR as a new EU social policy framework • The ‘Social Fairness Package” (13 March 2018) – Proposal for a Regulation of the European Parliament and of the Council establishing a European Labour Authority (ELA) – Proposal for a Council Recommendation on social protection for the self-employed & non-standard work, preceded by social partner and public consultations – Announcement of legislative proposal (1 July 2018) for a European Social Security Number • Revision of the Posting of Workers Directive (2016): predates EPSR

2. The EPSR as a new EU social policy framework These initiatives: • Have real potential to create new individual rights for workers and citizens • Create new political momentum: issues related to social protection back on the EU agenda But high risk of being watered down: • Different views between the EU social partners • Great deal of divergence between the Member States – EPSCO Council 21 st June agreed on “General Approach” on WL-B Directive (vote EP planned July 2018!) – Text emptied of many of its key components (change “as little as possible” – COFACE): • Eliminating any reference to the level of remuneration of paternity leave and even the reference to a minimum standard (at least 10 days in the proposed Directive)

2. 2 Steering Member State policies EPSR is (already) guiding the “ 2018 Semester Package”: • (Draft!) Joint Employment Report 2018, the Annual Growth Survey 2018 (November 2017) • The Country Reports, the Country-specific Recommendations, the new “Social Scoreboard” etc. – The EPSR confirmed as the ‘compass’ for further implementation of the European Semester (2020) – What about the next steps? • National Reform Programmes and Stability & Convergence Programmes (!)

2. 2 Steering Member State policies The proof of the pudding will be the a new Multiannual Financial Framework (MFF) 2021 -2027 – Next MFF decreases number of Structural Funds, merging several of them into the European Social Fund+ – Commission proposes to cut cohesion funding by 7%, – The “Invest. EU” programme merges various existing financial instruments and continues the Juncker European Fund for Strategic Investments (EFSI) • Market-based funding in four policy areas, including “social investment (!) and skills”

2. 2 Steering Member State policies The proof of the pudding will be the a new Multiannual Financial Framework (MFF) 2021 -2027 • What proportion of the money will ultimately be earmarked to contribute to implementation of the EPSR? • Can the most deprived regions and groups genuinely benefit from the EU’s financial instruments? • Newly proposed “Reform Support Programme” (€ 25 bn. ) to provide incentives for EMU countries a countries seeking accession to EMU, to undertake reforms based on “social” CSRs – Enough teeth for the COM to make this happen?

2. 3 Influencing EU macro-economic and fiscal policies A full implementation of the EPSR will not be ‘cheap’: need for adequate budgetary scope for the Member States EU macro-economic and fiscal policies should allow Member States to implement the EPSR

3. Policy recommendations to ensure a positive social impact (EESC report) • Endowing the Pillar with adequate financial resources • An ambitious but realistic roadmap for implementation is needed • The governance arrangements for (EU and national) implementation of the EPSR should be specified (esp. for implementation at the national level) • Awareness-raising media campaigns are needed at national level • Making governments accountable

4. Elements for an implementation roadmap (1) The roadmap should be ambitious but realistic Actions should be gradually implemented over time Short-term initiatives Directive on work-life balance to be adopted Endorsement and implementation of the Council Recommendation on social protection for the self-employed and non-standard workers Adoption of the Directive on transparent and predictable working conditions Benchmarking and mutual learning exercise with a view to establishing wage floors in the form of a national minimum wage Operationalization of the European Labour Authority Revision of the Social Scoreboard with a view to agreeing on a unique Scoreboard Ensuring that in the next EU multi-annual financial framework post-2020 an adequate level of resources supports the implementation of the Pillar

4. Elements for an implementation roadmap (2) Medium - term initiatives Setting up of a ‘European Unemployment Reinsurance Scheme’ Framework Directive on Minimum Income Schemes Exchange of good practices concerning the calculation of minimum pensions Feasibility of a European Child Guarantee Directive on Effective Enforcement of Workers’ Rights

4. Elements for an implementation roadmap (3) Long-term initiatives Arrangements to link the Pillar to the Sustainable Development Agenda A Social Progress Protocol in any future Treaty change A Social Rights Test for all new policies Social Imbalances Procedure ‘Golden rule’ for public investment with a social objective

5. Wrapping things up EPSR relaunching (already!) EU action in the social domain • in terms of political discourse • in the legal domain But: high collateral damage regarding EU social dialogue? • Failure to convince labour and (esp. ) business to engage • disruptive impact on the trust and relationship between the European cross-industry social partners • Even put on hold of the negotiations on a new joint work programme for 2018 -2020 17

The future of ‘Social Europe’: hope The European Pillar of Social Rights can be said to be a landmark Political legitimacy (social agenda), but what is the Pillar for? • Relaunching EU action in the social domain, at least in terms of political discourse • Influencing MS’ policies: European Semester, EU funding (MFF) and other policy tools • A framework for the contents of EU macroeconomic and fiscal policies: – Towards a ‘Social Imbalances Procedure’?

Looking forward: Moving towards high hopes and high yields A more balanced Semester, with the European Pillar of Social Rights at its core • A shift towards social investment (embraced by academics, vanished from the EU agenda? ) and national stakeholder involvement A renewed commitment to inclusive growth & fighting poverty and social exclusion • Embedding EU ambitions in the UN Sustainable development goals to reduce poverty by half between 2015 and 2030

Looking forward: Moving towards high hopes and high yields Promoting a ‘European Social Union’ • Common unemployment benefit schemes and a Framework Directive on minimum income • A European Child Guarantee (an EU basic income for children) – Assessment launched by COM The need for a detailed implementation roadmap for the EPSR • What will be debated/presented, by when (short/medium/longterm)? • How to take the Pillar beyond the Juncker COM? • Arrangements for involvement of social partners and other stakeholders in national level implementation

The time to act is now Eurobarometer • 56% of Europeans are optimistic about the future of the EU • 42% of Europeans trust the EU • 40% of Europeans have a positive image of the EU • 68% of Europeans feel they are ‘citizens of the EU’ A European demos waiting for answers It is time to finally move from high hopes to high yields… and to keep ‘social Europe’ moving 21

Read more Social policy in the European Union: state of play 2017 18 th annual report – Free download Bilan social de l’Union européenne 2017 Dix-huitième rapport annuel – Téléchargement gratuit

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