European trade unions, public services and liberalisation

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1 European trade unions, public services and liberalisation LES SYSTÈMES ALLEMAND ET FRANÇAIS DE RELATIONS SOCIALES FACE À LA DÉRÉGULATION EUROPÉENNE DES SERVICES D INTÉRÊT GÉNÉRAL M i H i i h H i Cité I t ti l U i it i d P i Maison Heinrich Heine, Cité Internationale Universitaire de Paris les 21 et 22 juin 2010

2 EPSU EPSU = European Federation of Public Service Unions 250 member organizations, 49 countries, over 8 million individual id members Sectors: local and regional government; national and European administration; i ti health and social services; utilities energy, waste, water Sectoral social dialogue in electricity, gas, hospitals and local l and regional government national administration being negotiated

3 Reflections on liberalisation debate Evidence from UK, Sweden and Austria of job losses and from UK and Austria of deterioration ti of pay and conditions Indications on quality of service higher prices in Sweden, deterioration of quality of postal services in Austria Particular example of UK electricity privatised 20 years ago initial fall in prices dash for gas distorted supply government intervention six companies dominate market customers change but often stay with or move to company with higher prices

4 Reflections on liberalisation debate Social impact study of energy liberalisation 300, jobs cut or outsourced impact on training i provision skills shortage Liberalisation has not delivered overall increase in jobs, big question as to rise in quality and/or productivity In response to criticisms, Commission tends to argue that liberalisation not implemented e ed correctly or not gone far enough Need to debate outcomes not a question of defending uncritically previous system

5 EPSU liberalisation, privatisation and public services Overall position that public services are best provided d by public sector organizations but that t public authorities should have discretion over how they are provided d Importance of ensuring that service provision is universally available, affordable and provided d on an equitable basis Not impossible ibl that t this can be done under market conditions but cannot be left simply to the market

6 Protection for public services framework directive EPSU ran campaign, working with a wide range of trade union, political and social organizations, to try to get a framework directive on public services that would Send a clear message that quality public services are the cornerstone of our European society. Make it clear who runs public services local, regional or national authorities Make sure that big business does not skim-off profitable parts of public services. Give users the right to have a say in how their services are aerun. Guarantee that the services are free or affordable and available to all.

7 View from the Commission Problems with European Commission has been: no real recognition of public services (didn t even use term services of general interest) t) no directorate to deal with public services single market takes priority it over everything else

8 Lisbon Treaty offers opportunities Commission President Jose Manuel Barroso: In the Lisbon Treaty, there are already very clear provisions about the defence and guarantee of public services. I believe that t public services fulfill an essential function in our model of a European society. I am ready to hold discussions with the European Parliament on what is the best way to guarantee this protection and the specificity of public services. 5

9 Public service protocol of Lisbon Treaty The protocol has three main sections in article one, which respectively address: subsidiarity through the phrase as closely as possible to the needs of the users ; diversity of services; and most importantly the common principles inherent to all public services through the phrase; a high level of quality, safety and affordability, equal treatment and the promotion of universal access and of user rights. It is this last phrase that provides a clear obligation o for further action so that the adherence to these principles can be practically assessed.

10 EPSU recommendations following Lisbon Treaty EPSU Recommendations on public services post Lisbon The European Commission publish a public service protocol checklist against which changes to public services can be assessed in terms of quality, safety and affordability, equal treatment and the promotion of universal access and of user rights. This checklist would be the first action by the Commission before any impact assessment process. It would acknowledge the primacy of public service obligations over market compliance, as defined d in the Protocol. The European Commission dedicate a unit within the Commission (preferably in the office of the President) to implement the checklist against any proposals that have the potential to change the nature of a public service.

11 EPSU recommendations following Lisbon Treaty EPSU Recommendations on public services post Lisbon That the Commission begins consultations with a view to publishing a draft European Services of General Interest statute (along similar lines to the EU company statute) that provides a reference for public service providers at all appropriate levels. This would take the form of an EU regulation as required in article 14. That the European Commission publishes a communication on universal access. This should outline how the guarantee of universal access contains, by definition, a collective dimension. This communication should outline the mechanisms that ensure universal access through solidarity. The establishment of a European Parliament Intergroup on public services (initiative taken up with Parliament)

12 Future prospects. However, there are still problems with Commission approach needs to be pushed to apply the protocol and still: no recognition of key role of public services in Lisbon Agenda or 20:20 plans for economic governance, closer surveillance focus narrowly on fiscal consolidation not role of public services and public investment European Parliament has shifted to right and approach of majority of national governments is in favour of public spending cuts and liberalisation, outsourcing

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