Territorial dimension

Territorial dimension (desk research):
	European Commission DG Employment, Social Affairs and Equal Opportunities Multi-stakeholder partnerships are absolutely essential in responding effectively to restructuring – at the territorial, sectoral and corporate level. Successful initiatives should not only be embedded in the regional agenda, but also being conceived, designed, delivered and reviewed with the support of all of the agencies and individuals concerned, including: public authorities, local businesses, social partners (both trade unions and employer representative organizations), higher and further education providers, employment services and civil society groups. The only effective and sustainable way of addressing today’s restructuring problems is by developing shared solutions. Restructuring concerns many different policy agendas, organizations and individuals and as such requires a multi-faceted approach, based on partnership. The stakeholders that should be engaged in any such partnership include public authorities, social partners, chambers of commerce, NGOs, etc.
	Committee of the Regions THE COMMITTEE OF THE REGIONS ISSUES THE FOLLOWING RECOMMENDATIONS: - It is important to recognize that the restructuring process in cities and regions is a constant phenomenon accompanying our socio-economic lives. Restructuring should be treated as an opportunity for tackling existing and future economic problems. - The CoR recommends the constant monitoring of these processes across the whole European Union, to be carried out by bodies independent of all the stakeholders. The European Union and the Member States should encourage the creation of local and regional partnerships between administrative authorities, businesses and the social partners, thereby promoting cooperation for local development in a globalized world, particularly in peripheral areas, where there is a danger of a loss of cultural heritage. - Local and regional level restructuring must ensure that objectives can be achieved which are in line with EU policies, whilst at the same time maintaining high levels of employment to secure an appropriate standard of living. The current restructuring process should also be a first step in a modernization process which seeks to create an economy focused on the future and based on knowledge and innovation; This objective cannot be achieved without increasing investment in human capital. - An integrated approach to the restructuring of rural areas ensures (or should ensure) a minimum level of access to services of general economic interest, in order to attract business and skilled workers and stem depopulation. It is also imperative that ERDF, ESF and an EAFRD funding should be used to support innovative action rather than to prop up the status quo. One important instrument in addressing the immediate problems which can be caused by re-structuring is the European Globalisation Adjustment Fund.
	European Restructuring Monitor (ERM) / European Monitoring Centre on Change (EMCC) Structural change has also a regional dimension: restructuring may have negative consequences on sub-contractors and thus have a knock-on effect on other companies. Moreover, if downsizing leads to an appreciable loss of earnings in the region, this could result in lower levels of demand for a broad range of goods and services and may therefore have further employment consequences in many sectors. The employment outcome for the displaced workers depends on three broad factors: the level of labour demand at the time and place of restructuring, the employability of the workforce and policies and practices. The European Commission and most national governments place great emphasis on active policies rather than the “passive approach” used in the past. However, if there is no net job creation in the local labour market, active measures that have positive effects for the displaced may impact negatively on other local job-seekers and result in, for instance, an increase in youth unemployment. This calls into question the whole idea of social responsibility during restructuring and suggests that some forms of social responsibility may in fact only be an expression of preference for the welfare of insiders at the expense of outsiders. At the very least, this ‘crowding-out phenomenon’ must be noted in evaluations of cases. It is likely to be more severe when unemployment is high and less of a problem in expanding labour markets or when there are skill mismatches. The crowding-out phenomenon presumes that active labour market policies do not create more jobs; it also underlines the importance of a regional industrial policy dimension and of net job creation measures, rather than an exclusive focus on the fate of those directly affected by job loss.
	ETUC (European Trade Unions Confederation) The specific features and development conditions and the anticipation of change and restructuring needs is addressed most efficiently if employers, workers, trade unions, political authorities and other key actors created networks, sectoral initiatives and cooperation at the local and regional level. Developing a strong territorial dimension of industrial relations and social dialogue allows acting at the right moment and considering the local and enterprise’s particular conditions. By creating networks, also employees and workers representation bodies in the SME sector might acquire more bargaining power towards employers and other bodies beside the added-value of exchange of good practice and other experiences. In the United Kingdom special “Task Forces” have been set up, integrating the whole community of economic, social, trade unions, financial as well as political and administrative actors in order to deal with the effects of large scale restructuring as in the case of MG Rover in the West Midlands region. In Spain local agreements of employers, public authorities and trade unions have been negotiated in order to deal with the effects of restructuring, e.g. the effects of the shutdown or delocalisation of larger companies. One prominent example is the closure of the Delphi car supplier factory in Cadiz were after the closure announcement public authorities became directly involved in managing the restructuring process. Source: ETUC Restructuring Toolkit
	European Commission - DG Regional Policy (expert document) Globalisation, integration and enlargement are the main forces determining changes in the European territorial structure and, consequently, the degree to which development is sustainable. These forces depend on many factors that vary territorially, such as capacity for development, economic restructuring and urban redevelopment. Therefore, a more sustainable development of the EU requires a more integrated approach to its territory. This includes a cross-sectoral dimension, taking account of social, environmental, economic and cultural policies. It also requires a merger of the bottom-up and top-down approaches, bringing together policy makers and stakeholders from all levels. This integrated approach should transcend traditional administrative boundaries and can focus on an area as defined by the issue being tackled or resource being managed (water catchment, labour market). It may also mean transcending national boundaries. This is also a reflection of a shift in policy from sector-based to place-based strategies. An increasing emphasis on governance is required by the new approach, bringing together a broader range of stakeholders in policy formulation and delivery, through a variety of innovative formal and informal institutional structures.