Social dimension

Social dimension/human impact (desk research):

European Commission – DG Employment, Social Affairs and Equal Opportunities

The Lisbon strategy is based on a positive approach to economic and social renewal. Economic dynamism should be embraced, as it contributes to innovation, increases productivity and raises profitability. Standstill in terms of economic developments would lead to shrinking living standards. Managing change underpins sustainable improvement of living conditions and quality of life, and therefore helps to create more and better jobs.

The level of education of the population is crucial, as it enhances adaptation. The latter allows increased business competitiveness while maintaining social peace and decent living standards to those adversely affected by change.

The strategic importance of the human capital means:

•	Investment in human capital throughout working life

•	Strengthening the capacity of businesses to adapt

•	Involvement of workers in managing changes and creating new security

•	Facilitating access to employment for lower-skilled workers.

Managing change requires solid partnerships and commitments. It is essential to establish a social partnership encouraging dialogue between social partners at the European level. The involvement of the workers’ representatives is encouraged by the Directives of the Commission as the only way to help maintain the competitiveness and economic viability of a business and to preserve the "human capital" affected by restructuring operations. It can reinforce the effectiveness of the process and minimize its cost.

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European Economic and Social Committee

If there is no response to change, or the response comes too late, this will generally lead to a loss of competitiveness and the threat of job cuts. Restructuring that is carried out only in response to change usually has painful effects, especially for employment and working conditions. Poorly managed restructuring may result in a loss of image for the company or for an entire sector, and create a general mood of resistance to change.

To manage change with foresight, the social partners must develop joint long-term objectives. This requires a consolidated and trust-based partnership and culture of dialogue, on the basis of which long-term approaches as well as consensual solutions can be achieved in times of crisis. The existence of representative and stable structures in the organizations of the social partners is an important prerequisite for action.

In order to promote a positive attitude to change, it is important at an early stage to come to a shared understanding of what change actually means and of social partners' scope to shape it by creating a business culture geared to participation. At the same time, long-term preparations for change can be made through measures such as basic training, multi-skilling and lifelong learning. These measures should also specifically pursue the goal of worker employability.

It is therefore crucial that workers should be able to adapt to these different conditions and that the right measures be taken to minimize any negative impact on them while optimizing the positive effects. At the same time, it is also important for workers to be informed of change in good time and in an appropriate manner, and to be able to be involved in this process.

This is the only way to ensure that change takes place and is accepted - not just at company management level but also in the minds of workers. If industrial change cannot be managed in a way that is socially acceptable for workers, then conflict will ensue.

ETUC (European Trade Unions Confederation)

The ETUC has identified several common problems for and barriers to worker involvement in restructuring:

•	Insufficient or late information;

•	No real consultation or no effective power on the part of worker representations or trade unions to influence the restructuring operation at company level;

•	Negotiating of social plans and collective bargaining only takes place in countries, companies and sectors with strong trade union membership and/or environments which are characterized by stable structures and traditions of social dialogue and social reconciliation mechanisms;

•	In only a few cases are regulations in place for workers to be actively involved in managing restructuring effects;

•	The important issue of anticipating and developing pro-active strategies is still not generally covered in national experience (although there are few exceptions);

•	Although the overwhelming majority of EWCs in Europe are experiencing restructuring operations quite regularly, only a tiny minority reports having any kind of influence over management decisions;

•	Workers in SMEs are in a particularly disadvantaged position when it comes to legal coverage, information and consultation rights, and available resources to deal with change.