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Joint opinion by EuroCommerce and Euro-Fiet

on

promoting employment in European Commerce

7. 2. 1997

1. European commerce is the essential link between producers and the 370 million consumers in theEuropean Union. Accounting for one third of all enterprises and employing twenty million people throughout the European Union, retail and distribution contributes to the added value, generating 14 per cent of the European value added. The significance of this sector is in the service that it offers to consumers, making it possible for them to obtain the widest possible range of products, the best possible service and the best value for their money, helping to maximise their purchasing power.

2. Commerce is thus a cornerstone of the Single Market of the European Union. To provide its service, European retail and distribution will continue to extensively rely on labour. If the conditions for further development of a viable and service-oriented retail and wholesale trade are met, significant numbers of new jobs could be created. This can help to offset reductions of employment due to structural and technological change. As a service-oriented industry retail and distribution will, however, continue to rely on labour as a major production factor.

3. In the European Commission's White Paper on Growth, Competitiveness and Employment of 1993, a goal was set to create 15 million new jobs by the end of the century. Today, three years later, the European Union is still far away from this goal. 18 million people are unemployed in the Member States and the prospects for a fast improvement of the employment situation do not look good.

4. Growth is essential for job creation, but economic growth alone has proved unable to solve the European unemployment problem. Technology-related productivity developments and insufficient investment in new production within the European Union are some of the reasons which have led to a lower than predicted growth in jobs. Some Member States have implemented policy decisions which have reduced the purchasing power of consumers as well as public sector investments. High unemployment in the Member States has created insecurity about the future, with a negative impact on consumption. Overall, there has been a slower than predicted growth of consumption, in some cases even a decline. This has had a direct impact on employment in wholesale and retail trade. A favourable development of employment in commerce and distribution requires a job-intensive growth and policies which promote the development of consumption, including policies which are designed to reduce interest rates.

5. Having grown strongly from 1985 to 1990, employment in wholesale and retail trade in Europe is now showing signs of decline. The prospects for wholesale and retail trade to be able to retain present employment levels and to create new jobs will depend on whether there is an increase in purchasing power which is large enough to offset an employment decline. An increase in general economic growth and purchasing power, as well as growing consumer expectations, can lead to a change in and development of new services in commerce.

6. To promote economic growth and to create new employment in the industrialised countries, including the preservation and creation of jobs in the commerce sector, the European Union and its Member States need to take the lead in reviving domestic demand across the OECD countries. As part of that process, the trans-border infrastructure investment projects proposed in the 1993 European White Paper on Growth, Competitiveness and Employment need to be implemented within the framework of the EU budget.

7. Globalisation and regional integration, coupled to important developments in technology and communications have intensified the internationalisation process in commerce. Cross-border investments by retailers and wholesalers influence the competitive environments, enterprise structures, store formats and operating concepts, with implications for employment. Depending on existing structures of wholesale and retail trade, the employment effects of this process differ from one European country to another.

8 Retail trade in many European city centre areas has changed considerably during the last 10 to 20 years. This underlines the need to promote the development of inner cities. At the same time many small towns in Europe see their retail service withering away. The effects of this trend on the existing retail trade, on the environment, on service levels and on the municipal economy should be assessed.

9. The development of new sales channels that make advanced use of information networks can have an important impact on future employment developments. To this end, it may be useful that EuroCommerce and Euro-Fiet will discuss matters related to the Information Society, and in this context the introduction of the issue of home shopping, electronic shopping, computer assisted selling and other use of information networks as well as the Commission's new Green Paper on "Living and Working in the Information Society - People First" and the impact of these developments on employment, as a new item in their ongoing social dialogue.

10. After the issuing of the 1993 White Paper on Growth, Competitiveness and Employment, a series of policy actions has been proposed to increase competitiveness, strengthen economic growth and turn that growth into more jobs in the Member States. The European Council meeting in Essen in December 1993 endorsed the approach by identifying five key areas of action, and the social partners were called upon to fully participate in the employment-promoting process.

11. The high and persistent unemployment in Europe underlines the need for urgent concrete action both on European and national levels to safeguard existing jobs and to create new employment opportunities. Accepting that there will be differences between the approaches to employment issues of the two social partners, EuroCommerce and Euro-Fiet support the employment-promoting efforts of the European Union. They welcome the renewed initiative by the President of the European Commission to engage the Member States and the social partners in a strong effort for employment, through the Confidence Pact which he proposed in 1996.

12. The Essen recommendations and the Confidence Pact are general in their nature, applying across the economic sectors. The Social Partners for commerce emphasise the need to take into account the specific characteristics of retail and wholesale trade as a consumer-oriented services industry in setting up the multi-annual employment programmes. To reach the expected employment effects, full attention must be given to the economic sectors with the greatest employment potential, particularly the service sectors which include both distribution and commerce.

13. Employment growth in Europe is expected to take place particularly in small and medium size enterprises. In commerce, enterprises employ on average 4,5 persons. If there is to be any significant employment growth in Europe in the years to come, much of it will have to originate in the services sectors, including commerce, where the number of small and medium size enterprises is particularly large.

14. Like many other service sectors, retail and distribution provide many different kinds of employment opportunities. In most European countries, the proportion of part-time jobs of total employment in commerce has been growing. This can open up welcome opportunities particularly in those countries where increasing numbers of people have sought entry into the labour market. On the other hand, it is equally important that commerce is able to continue to provide sufficient numbers of full-time jobs.

15. Realising that different enterprises will select different strategies also in the future, the European social partners in commerce underline the need for increased attention to vocational training that is directed expressly at commerce occupations, as this is essential to preserve a service-oriented and thus employment-promoting development alternative for commerce enterprises. It is also important to provide further education and training possibilities for workers already employed in commerce, many of whom are women and many of whom have a short general education background and lack a commerce-specific vocational training, not forgetting the skilled and high-educated employees.

16. EuroCommerce and Euro-Fiet agree that the creation of employment is one of the most important challenges for commerce and distribution. Taking into account that this sector will continue to play a major role as a provider of employment, it is necessary that commerce be given full and satisfactory consideration in European employment policies and decisions. To this end the social partners for commerce wish to be fully consulted on all European employment-related actions.

17. The social partners in commerce are committed to working with the Commission and the governments of Member States, to promote employment in retail and wholesale trade. The social partners stress the importance and usefulness of their social dialogue for promoting dialogue, co-operation and understanding between employers and workers and their organisations, which is essential to secure a stable development of wholesale and retail trade in Europe, preserving and promoting employment and viable enterprises, and call on the European Commission to continue its active support for this social dialogue.

18. Today, the European social dialogue between Euro-Fiet and EuroCommerce is increasingly focusing on employment. In March, 1995 they launched a special working group on employment. Since then, a major survey on employment creation has been launched, supported by the European Commission. The working group has also held a series of consultations with the Commission concerning the preparations of a Green Paper on Commerce and Distribution.

19. The Social Partners for commerce support the Essen recommendation of promoting occupational education and training. This must also apply to the commerce sector. More emphasis on vocational training in commerce was already called for by the commerce social partners in 1988 when they agreed on a joint Memorandum on training in European retail trade. EuroCommerce and Euro-Fiet draw attention to this Memorandum and to the subsequent efforts by the social partners to promote vocational education and training programmes for commerce occupations in Europe.

20. Universal general education and broad-based training are prerequisites for entering into stable employment in commerce and for further skills development. In most European countries, too little attention has been given to providing vocational education and training opportunities for young people who head for wholesale and retail trade occupations. In many cases, this has caused a lack of skilled labour, leading commerce enterprises to select less labour-intensive business strategies than they may have done, had there been more qualified staff available.

21. Also workers already employed in commerce need training opportunities to preserve and develop their professional qualifications and to retain their employment and employability. Many commercial workers have only a short general education background and more often than not they lack a commerce-specific vocational training. Vocational training for commerce occupations should therefore be a focal point for the employment-promoting measures that are directed at particularly vulnerable groups on the European labour market.

22. It is predicted that a growing part of consumer demand will continue to be focused on services. Thus, the development of services components in the functions of the commerce and distribution sector will become an important feature from the viewpoint of employment. There are already experiences from such developments to be assessed, particularly concerning private and public services provided by retail stores in rural areas. EuroCommerce and Euro-Fiet recognise a need for further study of the impact on employment of developing new wholesale and retail trade services and expect that their joint research project will make available examples of measures that have been taken in this respect.

23. The European social partners in commerce underline that dialogue can be an important instrument for them to contribute to promoting employment in retail and wholesale trade. The social partners should be well placed to retain European wholesale and retail trade as an efficient industry that will continue to respond well to changes in consumer needs expectations while offering secure and high-quality jobs for large numbers of Europeans.

24. The European Commission has announced the publication before the end of 1996 of a Green Paper on Commerce and Distribution dealing with future development prospects of retail and wholesale trade in the Community. As this report has not yet been made available to the social partners in commerce, EuroCommerce and Euro-Fiet do not find it possible to forward concrete and detailed suggestions for measures to be taken to promote a favourable employment development in European wholesale and retail trade. EuroCommerce and Euro-Fiet do, however, consider it to be important that a broad discussion about the employment effects of developments in European commerce be initiated upon the publication of the Green Paper. To launch such a discussion, EuroCommerce and Euro-Fiet suggest that the European Commission together with the European social partners in commerce, within the framework of the social dialogue, convene a major conference in 1997 to allow the social partners in the European Union and its Member States to start the process of identifying measures which should be taken to protect and promote employment in retail and wholesale trade in Europe.

25. Accepting that there will be major differences in the way that the social partners look at the measures which should be employed to promote a favourable employment development in commerce, EuroCommerce and Euro-Fiet draw attention to the following subjects that could be considered, among others:

- Initiating and supporting urban renewal projects in European city centre areas, with the aim of creating viable and competitive zones for shopping, entertainment and cultural activities, where high-level services are produced through labour-intensive activities and which are easily accessible both through public and private transport;

- Producing and providing facilities in city centres and in urban residential areas for service-oriented retail trade enterprises;

- Adding different kinds of public and private services, including postal and social services to be provided by retail stores in areas where retailing services only are not viable;

- Increased attention to vocational training and education which is directed expressly at the specific needs of commerce, as this is necessary to preserve a service-oriented and thus employment-promoting development.

26. EuroCommerce and Euro-Fiet finally reiterate that it is essential that the social partners for commerce are fully consulted on all European employment-related actions.