March employment Council discusses temporary agency work proposal

The March 2003 EU social policy and employment Council discussed a broad range of topics, including the European employment strategy, social protection, gender mainstreaming and the implementation of recent anti-discrimination Directives. However, the most high-profile topic was the proposal for a Directive to regulate temporary agency work.

Ministers gathered in Brussels on 6 March 2003 for the first formal Employment, Social Policy, Health and Consumer Affairs Council under the Greek Presidency. The Council debated a range of issues, including those set out below.

European employment strategy

A debate was held on the European employment strategy (EES) and its future. There was broad consensus that a 'European employment taskforce' should be created, briefed to look at the practical aspects of the implementation of the EES. The taskforce would be composed of not more than six members. The Council also adopted its contribution to the 2003 spring European Council meeting, which is to take place on 20-21 March 2003. The Council referred in particular to the following objectives:

• full employment by increasing employment rates;

• quality and productivity at work; and

• social cohesion and an inclusive labour market.

Social protection

Ministers endorsed a joint Council of Ministers/European Commission report on adequate and sustainable pensions and a joint report on supporting national strategies for the future of healthcare and care for the elderly. It also took note of the opinion of the Social Protection Committee (SPC) on the Commission’s report to the spring European Council.

Tripartite social summit

Ministers adopted a Decision establishing a 'tripartite social summit for growth and employment', putting into effect a decision originally taken at the Laeken European Council in December 2001 (EU0201231N). This social summit will meet before each annual spring European Council and will be made up of representatives of the Council Presidency, the two subsequent Presidencies, the Commission and the social partners.

Gender mainstreaming

A policy debate was held on the issue of gender mainstreaming, during which ministers were asked about the way in which Member States give high-level political support for gender mainstreaming at national level and about the usefulness of having a continuous monitoring of gender mainstreaming. All delegations reported extensively on their efforts to increase the visibility of gender mainstreaming in different policy areas and contexts at national level.

Temporary agency work

In terms of social policy instruments, the draft Directive on temporary (agency) work was the topic with the highest profile on the Council’s agenda. An informal exchange of views was held over lunch, after which the President announced that there was general recognition of the importance of this issue and broad agreement on the need for a Directive on working conditions for temporary agency workers.

The Commission issued its draft Directive on this topic in March 2002 (EU0204205F). The European Parliament (EP) gave the text a first reading in November 2002 (EU0212201N), at which it proposed significant amendments to the text. The proposal is now back with the Council. Given that there are 'divergent views' among the delegations concerning legislation, the degree of regulation and the role of the social partners in this area, in addition to differences in the importance and characteristics of temporary agency work in individual Member States, it was acknowledged that further work is needed in order to reach a 'balanced political compromise' on this issue. It is hoped that political agreement on a common position on the draft Directive will be reached at the next social policy Council, which will take place on 2-3 June 2003. The outstanding issues are perceived as being the following:

• review of restrictions and prohibitions on temporary agency work. The text requires Member States to review restrictions and prohibitions on temporary agency working, should it be found that these are no longer justified. Many delegations wish to examine further this provision, as it may have implications for existing national legislation or collective agreements regarding restrictions on the use of temporary agency workers;

• application of the principle of equal treatment. The text sets out the principle of equal treatment between temporary agency workers and those who are directly contracted by the user organisation. Currently, an exemption is provided in the text for pay in the case of temporary agency workers on assignments of a maximum period of six weeks. Delegations are questioning this, by either opposing it or requiring a longer period; and

• temporary agency work as a labour market instrument. As it currently stands, the text allows Member States not to apply its provisions to employment contracts concluded under special public or publicly-funded programmes which aim to facilitate the integration of long-term unemployed people into the labour market. Some delegations would like the scope of this particular provision to be broader.

European Year of People with Disabilities

Note was taken of the Commission’s progress report on the European Year of People with Disabilities (EU0209201N), which was officially launched in Athens on 26 January 2003. The year will attempt to make progress towards achieving equal rights for people with disabilities by means of a number of actions and activities in individual Member States and a general awareness-raising campaign.

Anti-discrimination Directives

The Commission gave a report on the implementation of Directive 2000/43/EC implementing the principle of equal treatment between persons irrespective of racial or ethnic origin (EU0006256F), which must be transposed by Member States by July 2003, and Directive 2000/78/EC establishing a general framework for equal treatment in employment and occupation (EU0102295F), which must be transposed by Member States by December 2003. The Commission invited Member States to transpose these Directives into national legislation 'as soon as possible'.

Commentary

The March Council meeting maintained the momentum in the debate on draft Directive on temporary agency work. Although there was no concrete outcome, it is clear that there is consensus that this issue is important and should be regulated at Community level. This is a very complex area, characterised as it is by a triangular relationship between the agency, the worker and the user company, and complicated further by the range of practice and regulation current in individual Member States. Nevertheless, there is a political will to reach political agreement on a common position on this text at the June 2003 Council. However, even if this is achieved, there is still some way to go before final adoption, as the EP must then give the text a second reading and agreement on a final text must be reached between the EP and the Council. Thus, it will be some months yet before the text is finalised. (Andrea Broughton, IRS)