1. ESF Supporting anticipation & management of economic changes & restructuring

2. DEFINITIONS What do we mean? Business reorganisation.
Drivers: Trade liberalisation, innovation, regulatory changes, changes in consumer demands, competitive pressure, profitability, internal causes
Actors: Management, workers, workers representatives, social partners, public authorities (local, regional, national, European, international)
Forms: Reorganisation, closure, merger & acquisition, downsizing, externalisation, offshoring, delocalisation

3. Delocation and Offshoring together +/- 4% But a huge impact
on the population (media)
“A tree which falls makes
more noise than a forest
which pushes”
Number of jobs
For 2006, the figures
concern only the first
9 months
Source EMCC

4. RESTRUCTURING A NATURAL AND PERMANENT ROCESS
Not a new phenomenon
Inevitable phenomenon
The costs and benefits are unevenly spread (timing, territories and categories of workers).
We must facilitate these processes
It is vital for enterprises to adapt to changes & for the workers to develop new competences
It is a guarantee of future growth.

5. Total employment +6.5 millions of jobs
Employment change in top 10 growing and declining sectors in EU15, 2000–2005 (thousands)
Total employment +6.5 millions of jobs
EMCC

6. Total employment + 0.370 million of jobs
Employment change in top 10 growing and declining sectors in NMS10, 2000–2005 (thousands)
Total employment million of jobs
EMCC

7. BUT THERE IS A HUMAN COST
Often costs can be very high for workers but also for the local economy
Example: Rover in UK 70% and for the workers having found a new job 50% with a wage reduction (but 25% a increase)
Impact on suppliers (SMEs)
Impact on the local economy
+ STRESS

8. THEN WE FEAR THE CHANGES
Risks of unemployment
Possible wage reduction
Necessity to change
Lack of alternatives possibilities
Risk aversion
Fight against restructuring

9. THERE IS A NECESSITY TO MANAGE THE SOCIAL CONSEQUENCES
2 trends: necessity to change and threat about change
To reduce the social costs, to promote the search for alternative sources of jobs and income and to preserve the social cohesion

10. The main message is to develop:
ANTICIPATION
PREVENTION
ACCOMPANYING MEASURES
= Responsible restructuring
Where the regional level is essential
and the partnership

11. Anticipation Drivers, impacts, scenarios, policies
Anticipate restructuring causes
Anticipate restructuring processes
Anticipate restructuring consequences
The best level is a mix of European, national, regional and sectoral
Dialogue (social partners and public authorities), studies, observatories,…
Necessary but not sufficient condition.
Drivers, impacts, scenarios, policies
(EMCC, CCMI, EMPL, ENTR, CEDEFOP,...)

12. Prevention Prevention must be permanent
SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) at regional level. There is a need for strategic planning
Economic development (state aids, industrial policy, infrastructure,…)
Training – which skills for the future ?
Cooperation between all stakeholders
To begin when the situation is good
Also a mix of levels but where the regional level is the key factor
Prevention must be permanent

13. Accompanying measures To manage and mitigate
Level/
Objective
Early stages Late stages
Prevent
Manage
Mitigate
Economy/
Region
Framework conditions
Macroeconomic policy
Structural policy
Regional development
Regulation, intervention
Business regulation
Labour market regulation
Collective agreements
Active and passive labour market measures
Sector/
Industry
Sector-oriented structural policy
Sector dialogue
Sector agreements
Sector-based interventions
Enterprise/
Corporation
Corporate development
Externally/internally oriented development
Dialogue and agreements
Enterprise dialogue
Enterprise agreements

14. Legal Background
Communication on restructuring & employment- Anticipating & accompanying restructuring in order to develop employment: the role of the EU
Employment guidelines from 2005: guidelines 21
Regulation on the Structural Funds
Community Strategic Guidelines for Cohesion
European Social Fund Regulation

15. Approach to programming for the ESF
Art 3.1.a: actions related to adaptability of workers in line with economic changes
Art 3.1.b & Art 3.1.c: action for disadvantaged groups with training & support services
Art 3.1.d: modernisation of training & education systems with a view to their responsiveness to labour market needs

16. Experience to date The support has concentrated on: Support to system
Support to company & sector restructuring
Support to individuals

17. Support to system
Enhance labour market performance & anticipation of changes
Creation of observatories of skills and jobs
Creation of National Employment observatories
Development/Creation of Regional and local labour market observatories
Tools & techniques
Development of forecasting methods & systems, benchmarking & indicators, stakeholder consultation mechanisms
Exchange of good practice / Network

18. Support to company & sector restructuring
Support mechanism & tools:
Development of anticipation & alert systems & contingency plans in companies
Development of sectoral networks
Assistance to the sectoral level
Strengthening the role of business association, business support organisations & networks
Develop consulting services for SMEs
Complementary actions implemented under the human capital priority:
Fostering enterpreneurship and business strategies
Capacity of enterprises to manage change in a positive way
Fostering enterpreneurial mindsets through education & learning

19. Support to individuals
Training:
Competence report & personal plan of professional guidance
Career development & individual guidance
Identify training priorities & delivering tailored training
Outplacement and mobility
Provision of outplacement services by specialised units
Fostering geographic mobility

20. 3 others elements ERDF European Globalisation Adjustment Fund
Article 51 Contingency reserve (1% or 3%)
ERDF
European Globalisation Adjustment Fund

21. Accompanying measures
ESF
Anticipation
Prevention
Accompanying measures
ERDF
Art 51
EGF

22. INDUSTRIAL POLICY
(follow-up Communication October 2005“Implementing the Community Lisbon Programme: A policy framework to strengthen EU manufacturing - towards amore integrated approach for industrial policy”)

23. OTHER COMMUNITY POLICIES
GROWTH AND EMPLOYMENT - LISBON STRATEGY
Macroeconomic stability
REGIONAL EUROPEAN FUND - ERDF
More or less the same rules than for the ESF but to support infrastructures and economic development.
We can also add the possible support of the European Investment Bank.
INNOVATION POLICY
Technological platforms, clusters, 7th framework programme
COMPETITION POLICY
State Aids Reform
Merger Regulation
TRADE POLICY
Impact evaluation within multilateral (Doha) and bilateral negotiations, Communication on the external dimensions of competitiveness, intellectual property rights, combating counterfeiting, symmetry principle
EDUCATION POLICY
European Qualifications Framework

24. European Social Dialogue
Orientations for reference in managing change and its social consequences 16/10/03 Part of their work programme
Explaining and giving the reasons to change
Good time, climate of confidence, involvement of managers, continuous quality communication and open mind
2. Developing employability
Importance of maintaining and developing workers’ competences and prepare the evolution of jobs
3. Territorial dimension
Complementarities and synergies between the various actors and role played by EU structural Funds and territorial infrastructures
4. Specific situation of SMEs
Possible dependence on a large customer, regions dominated by a single activity and willingness of workers to take part in the collective efforts
5. Managing restructuring
Explore all possible alternatives to dismissals, time is an important factor, positive attitude and climate of confidence

26. For a responsible restructuring
Start-up units
Placement Agencies
Subcontracted workers
Flexible work arrangements
Mobility Policies
Maintain employability