Spidla spreekt over de sociale aspecten van de Turkse hervormingsplannen om EU-lidmaatschap te verwerven (en)

SPEECH/06/144

Vladimír Spidla

Member of the European Commission responsible for Employment, Social Affairs and Equal Opportunities

Conference "Social dialogue as a tool to address the informal economy in Turkey"

Ankara, 5 March 2006

Minister,

Ladies and Gentlemen,

I would like to thank the International Labour Organisation for organising today's event, and I am very pleased to be here to talk to you today about the main challenges of social and employment policy.

Today's conference provides an important opportunity for the social partners to put forward their ideas on this subject and to play a part in developing the social dialogue between employers and trade unions.

This meeting comes at just the right time: following the opening of accession negotiations last October, fresh impetus is now essential. The open and long-term process provided for in the framework for negotiations with Turkey should not take away from the fact that the reforms which have been introduced must be pursued rapidly and implemented effectively.

I would like to make one point clear from the outset: all of the measures which Turkey has planned with a view to improving the quality of jobs and social protection will be fully effective only if it also succeeds in incorporating the informal economy into the formal economy.

The European social model is based on achieving both economic and social progress. In other words, we need to combine competitiveness and social justice. Despite having different social systems and traditions, all Member States have common fundamental values: a declared belief in social cohesion, equal opportunities, non-discrimination and social dialogue. They also share the goal of universal access to education and health care.

The European Union is focused on using social policy as a productive factor in economic performance. So what does this mean exactly? If we make progress in the area of health and safety at work, for example, this benefits not only the employees. Hungarian studies show that adopting EU legislation on health and safety increases overall life expectancy by two years. But that is not all. These rules are also an investment in modernising the economy, as they reduce the costs of accidents at work and increase labour productivity. It would therefore be a mistake to regard social policy as an obstacle to competitiveness. In fact, social policy promotes and guarantees sustained economic success.

The same applies to the social dialogue. Cooperation between employers and trade unions - including mutual information and consultation, negotiation and partnership - has many positive effects, as it:

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  facilitates the necessary economic and social reforms;

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  helps to fully exploit the potential for job creation;

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  helps to strike a balance between flexibility and security;

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  improves companies' adaptability;

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  and allows greater investment in human capital.

In addition, strengthening social policies helps modernise the economy. In light of globalisation, it is also not an option for Turkey to pursue competition by means of social dumping. Higher social standards, better jobs, lifelong learning and more effective social protection help to increase quality and productivity.

At the same time it is necessary to reduce the informal economy, in which between 30% and 50% of Turkish workers are estimated to be employed.

The consequences of the informal economy are staggering, for employees, for businesses and not least for public finances. It encourages precarious employment conditions such as excessive working hours, working methods which have adverse effects on health, and child labour. The informal economy also blocks access to vocational training and undermines social security systems - both by reducing contributions and by excluding claims. The consequences are a greatly increased risk of poverty and social exclusion.

The formal economy also suffers because of the informal economy. First, because of the damaging distortions of competition caused by social dumping. Second, because it leads to non-transparent markets. And third, because the informal economy generally goes hand in hand with corruption.

All of this creates a vicious circle: a fall in public revenue reduces investment in education and social protection and thus creates an ideal breeding ground for the informal economy.

As undeclared employment is not protected by labour law, Turkey's compliance with EU legislation will for the time being make no difference in this area. For this reason it is not enough simply to bring Turkish legislation into line with that of the EU. We must extend its scope by means of consistent action to suppress the informal economy.

The EU's growth and employment strategy, which coordinates policy in the Member States, is focusing on this challenge. This strategy contains a guideline of its own, calling on the social partners in particular to take action against undeclared work. The social partners can take preventive action, for example by means of information campaigns, codes of conduct or initiatives to improve employees' qualifications. They can also then play a part in implementing social legislation and help the authorities to monitor this.

In order to carry out this role, however, a functioning social dialogue between employers and trade unions is needed. This brings me to the overall importance of the social dialogue:

First, it is an essential part of European democracy and is therefore also enshrined in the EU's Charter of Fundamental Rights.

Second, trade union rights are a fundamental component of the political criteria for EU accession. Unfortunately, the Commission's progress report on Turkey established that in this area considerable work still needs to be done. It is unacceptable that, for example, trade union membership in Turkey is possible only through a notary and involves high costs. And certain restrictions to the right to strike in turn restrict freedom of association, which is based on ILO principles.

Third, in the context of the EC Treaty, the social dialogue has a key role in further developing the EU's social and employment policy. If Turkey's social partners wish to participate fully in this EU social dialogue, they must first become fully operational at national level.

Fourth, as I have already mentioned, the social dialogue is a crucial driving force for economic and social modernisation. The social partners in Turkey should therefore make a greater effort to overcome their differences and play a part in the reform process. They should conclude the appropriate agreements at cross-sectoral, sectoral and company levels. The current requirements for the authorisation of trade unions - at least 50% of a company's employees and 10% of a sector - are too high and as a result impede social partnership.

At this point I would like to touch on an important issue concerning Turkey's preparations for the accession negotiations: that of improving the situation of women, and gender equality. This issue is, after all, closely linked to the problem of the informal economy. Women are particularly involved in undeclared employment and affected by the disadvantages it brings.

In recent years Turkey has certainly done a great deal to improve the position of women: for example, Turkey's Labour Code already contains a series of regulations implementing EU legislation on equality for men and women.

Nevertheless, serious problems still exist. Women still suffer discrimination in everyday life - they are faced with many obstacles in education and are therefore very much affected by illiteracy. They experience similar problems in the labour market. It is essential to increase women's participation in the labour market, which also means taking them out of the informal economy and helping them into declared employment. To achieve this it is absolutely crucial that they have equal access to education. Yet this also requires a change in attitudes and decisive action to overcome stereotypes. Here, once again, the social partners and civil society are called upon to play a part in achieving gender equality.

Another key area concerns social cohesion - in other words the integration of all groups into society. This calls for targeted measures and decisive action against all forms of discrimination - these measures are also part of the strategy to suppress the informal economy, as discrimination and the social exclusion of certain groups encourage the informal economy.

I have now described the areas of social reform in Turkey. I would also like to say, however, that the Turkish Government and the European Commission have a good relationship and are cooperating closely. At present we are carrying out the analytical examination of the Community acquis.

We are preparing a document known as the JAP, in which the Turkish authorities and the Commission together set out the problems and possible solutions related to employment policy. It is important that the social partners also give their views on this.

The European Union also provides financial support to Turkey. This year the Commission will give Turkey pre-accession aid in the amount of EUR 500 million.

I can therefore assure you that the European Commission is not only making demands with regard to guaranteeing trade union rights and developing the social dialogue in Turkey. We are also helping your country to increase the capacity of the social partners, for example by continuing the current ILO initiative on the informal economy.

Ladies and Gentlemen,

It has been a pleasure to speak with you here today. I would like to end with a statement which I mean most sincerely: adopting the European social model does not mean a loss of competitiveness; it means social peace and economic progress.

Thank you.