Presentation by Ralf Resch, General Secretary of CEEP, during the conference on "The impact of the crisis on employment in the Baltic states" in Vilnius (19 Nov 2010)

1. CEEP as a Social Partner
Seimas of the Republic of Lithuania –
European Economic and Social Committee
Joint conference
19 November 2010

2. Structure of presentation
CEEP: Facts and figures
Social Dialogue at European Level
CEEP’s role in Social Dialogue
“Mapping the Public Services” in the EU
Public Services in the Crisis and beyond
2

3. CEEP: representing public
employers and public services
European organisation with a two-fold mission:
Cross – sectoral European Social Partner representing
public employers in the European Union
Lobby organisation representing Public services
providers vis-à-vis the European institutions
CEEP combines both missions to represent
its members’ interests towards the EU
institutions
3

4. CEEP as Social Partner
Working with BusinessEurope on the
employers side
Negotiations with ETUC on European
agreements: Parental leave
Represented in high-level meetings
with EU (TSS, MEDPol, other)
4

5. Facts & figures of CEEP
Founded in 1961
One of three general cross-industry European Social Partners
together with BUSINESSEUROPE and ETUC
Organises its work in 10 committees:
CEEP members are enterprises and authorities from
the EU, Norway and Turkey (associated members)
providing Services of General Interest, whatever their
legal ownership or status
5
Local Enterprises
Services of General Interest & Statistics
Enterprises, Internal Market &
Competition
Social Affairs
Macroeconomic
Environment
Water
Energy
Transport
Communications

6. Organigramme of CEEP
National SectionsNational SectionsNational SectionsNational Sections
General AssemblyGeneral AssemblyGeneral AssemblyGeneral Assembly
Administration CouncilAdministration CouncilAdministration CouncilAdministration Council Board of DirectorsBoard of DirectorsBoard of DirectorsBoard of Directors
PresidencyPresidencyPresidencyPresidency
General SecretariatGeneral Secretariat
10 Committees10 Committees
General SecretariatGeneral Secretariat
10 Committees10 Committees
6

7. Structure of presentation
CEEP: What is it? Facts and figures
“Mapping the Public Services” in the EU
Social Dialogue at European Level
CEEP’s role in Social Dialogue
Public Services in the Crisis and beyond
7

8. 8
What are Public Services
in the EU today?
Lack of data on the quantative and qualitative
data on “Public Sector (in the narrower or wider
sense)”
“Mapping”-Project managed by CEEP with the
financial support of the Commission (DG EMPL)
References must be made to
– Public Service Obligations (PSO)
– Universal Service Obligations (USO)
– Services of General Interest (SGI)
– Services of General Economic Interest (SGEI)
Source of reference: primary and secondary law
or jurisprudence of the European Court of Justice

9. Public Services are “Services of
General Interest” 9

10. 10
Public Services contribute significantly to
the economy: 26% of GDP on average;
more than 2,412 billion € (2006)
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
RO GR LU IE LV ES IT DE BE AT CY PT FR EE LT FI SI PL NL DK CZ SE HU SK UK BG
% of GDP
Lithuania:
27.3%
Latvia:
22.6%
Estonia:
27%

11. 11
Public Services as key investors
in the economy
Network industries - energy, public
transport, railways, etc. - alone
contribute to more than 6.4%, or 153
billion €, to total investment).
Investment (2006) shows that still a lot
has to be done in the three states:
– Lithuania: 12.1%
– Latvia: 11.5%
– Estonia: 9.2%
11

12. 12
Employment
Public Services in Europe employ more
than 30% of the total EU workforce.
This equals more than 64 million
employees in Europe.
The relative quota are (2006):
– Lithuania: 27.4%
– Latvia: 32.1%
– Estonia: 25.9%

13. 13
Main employment sectors
(% of the total Public Services)
1. Health and Social work
2. Administration, defence,
compulsory social
security
3. Education
4. Transport
5. Research

14. Structure of presentation
CEEP: What is it? Facts and figures
“Mapping the Public Services” in the EU
Social Dialogue at European Level
CEEP’s role in Social Dialogue
Public Services in the Crisis and beyond
14

15. 15
Represents public employers in the cross-sectoral
European Social Dialogue
Employees
(ETUC)
Employers
(CEEP,
BusinessEurope)
European institutions
(Commission, Council)
European
Social Dialogue

16. The EU legal framework for
Social Dialogue 16
Articles 152-155 TFEU
The Union recognises and promotes the role of the Social Partners at
its level, taking into account the diversity of the national systems. It
shall facilitate dialogue between the social partners, respecting their
autonomy.
The EU Commission shall consult the social partners before
presenting a legislative proposal in the field of social affairs.
Negotiations and agreements between the social partners is
possible. Agreements can be transposed into a directive.
Recognised as a fundamental element in the European social model

17. Social Dialogue and politics
European social dialogue (ESD) is a genuine European
negotiating forum encompassing discussions, negotiations and
joint actions undertaken by the European social partners.
Results of ESD - adoption of some 60 joint texts by the cross-
sectoral social partners, which counts as a significant
contribution to the definition of European social standards
Fields of ESD:
– Top level: Tripartite Social Summit (28.10.2010), Informal EPSCO
(7.7.2010), Macroeconomic Dialogue (16.11.2010)
– employment, social protection, education and training, gender equality
Multi-annual Work Programme - basis for future work (currently
for the years 2009-2010)
17

18. Tripartite Social Summit
Every semester before European Summit of Heads of
States and Governments
Exchange between Council (M. van Rompuy), Presidency
(M. Leterme), future 2 Presidencies (M. Orban, M. Tusk)
and Commission (M. Barroso, M. Andor) with Social
Partners
BE presidency: More meetings proposed (ahead of EPSCO)
Importance of Social Partners and Public Services
underlined by every speaker; CEEP will remind them!
CEEP message: budget consolidation must be selective not
to jeopardise public services who a key to growth; well
received
18

19. Structure of presentation
CEEP: What is it? Facts and figures
“Mapping the Public Services” in the EU
Social Dialogue at European Level
CEEP’s role in Social Dialogue
Public Services in the Crisis and beyond
19

20. CEEP as European Social
Partner
Examples of European Social Dialogue results:
Framework agreement on Parental leave 1995 transposed into EU
directive and revised in 2009; implementation started
Framework agreement on Part-time work 1997 transposed into EU
directive
Framework agreement on fixed term work 1999 transposed into EU
directive
Autonomous framework agreement on telework 2002
Autonomous framework agreement on work related stress 2004
Autonomous framework agreement on harassment and violence at
work 2007
Autonomous framework agreement on Inclusive Labour Markets 2010
20

21. 21
Issues for discussion at
European Social Partner level
Working Time Directive?
Single Market Act
Further involvement in Macroeconomic
issues
More intense consultation on
Employment policies
21

22. Social Affairs:
Work-Life Balance
Package on Work-Life-Balance; TU and BEU did
only want to negotiate Parental Leave
– Parental leave
• Implementation has started
– Next issue: Paternity leave
• Impact assessment started by Commission
• GHK works on it
CEEP favours a good work-life–balance
– Needs to be balanced also in financial terms/ cost
for public employers
22

23. Social Affairs:
Working Time Directive
Trilog failed between EP, COM and Council
ETUC: difficulty to move/ tight mandate;
seminar in February, Congress in May
BEU wants to be part if it will be negotiated
2nd
stage consultation: mid-December?
Impact assessment: expected at Conference
(November)
ETUC: Conference end February on own impact
assessment; new General Secretary appointed
in May 2011
23

24. Structure of presentation
CEEP: What is it? Facts and figures
“Mapping the Public Services” in the EU
Social Dialogue at European Level
CEEP’s role in Social Dialogue
Public Services in the Crisis and beyond
24

25. 25
Q21. Has the present crisis had a negative impact on the workforce in your organisation/enterprise?
Data not weighted. Result in %
¾ of respondents have
not reduced
employment due to
the financial crisis
Public Services are a stabiliser of
the economy in times of crisis
No negative impact
Stagnation of number of
employees
Decrease in workforce <
10%
Decrease in workforce
10% - 20%
Decrease in workforce >
20%
No answer
65% of responding
enterprises have not seen
their turnover or income
deteriorate despite the
financial crisis

26. Public Services realise equal
opportunities
In SGIs, the share of women employed is very high: 2/3 of
respondents employ at least as many women as men.
26

27. 2727
What was the proportion of people below 30 years of age employed in your organisation / enterprise in
the last financial year available? Same above 55. Data is unweighted, Results in %
Public Services employ more younger
employees and employees above 55
A quarter of respondents
declared that people from
both age groups are
between 25% and 50% of
their staff
This means that Public
Services care for the
vulnerable young persons
and for the older in the
workforce.

28. 28
Public Services are the backbone
of our economy and society
More than 530 000 enterprises providing
services to more than 500 million
European citizens
Their services are:
– Strategic: crucial to the functioning of our
society
– Essential for human well-being and for the
economy
– Facilitate the integration and the territorial
and social cohesion
28

29. Thank you for your attention
ralf.resch@ceep.eu
29

30. 30
Backup
Present developments in the
European Union

31. Added-value of CEEP
Early-warning system
Early clarifications thanks to direct
contacts with the European Commission
Coordination of opinions for a strong
European approach
Close links between lobby organisation
and social partner
31

32. “Europe”: a threat but also an
opportunity for Public Services
Threats
Legal uncertainty by
future ECJ judgments:
– All issues
European Commission:
– Single Market Act
– Service concession
– Procurement changes
– PPP
– Pensions
– Working Time Directive
European Parliament:
– Package deals with
Council
Opportunities:
New basis for legislations:
Lisbon treaty: Art. 14,
Protocol 26
Parliament – New intergroup
on Public Services
Lobbying: Lobby
organisations have increased
their transparency
More support for Public
services from citizens (e.g.
DE, IT, FR, other)
European Parliament is
looking for advice
32

33. Opportunities depending on
the strategy
Reactive stand: “Wait and see …”
Fatalist stand: “It is a general trend, we can’t do anything
about it…”
Proactive stand: “There are opportunities in it for us… let’s
lobby for it!”
– Choice for local authorities:
• Public transport regulation: In-house have the priorities in the
implementation of the law
– Late payment directive: best result achieved; public and
private are treated the same way
– Parental Leave: negotiated solution possible -> improved but
affordable minimum standard, savings to members
– Closer contact to sectoral social dialogue:
• Creation of the “Public Services Employers Forum”
• Support of sectoral organisations: HOSPEEM, EFEE, EUPAE, …
33

34. 34
Key policy fields 2010
Commission Work Program: published in March 2010
EU2020 contribution: SGIs not mentioned
Informal Troika 8.7.2010: low key results
TSS 28.10.2010: “growth and governance”; van
Rompuy task force – CEEP supports objectives
Intergroup on Public Services: framework for Public
Services; CEEP presentation of project “Mapping the
Public Services” on 24. March 2010
Transversal issues: Service concessions, (I)PPP,
Procurement -> continuing
Sectoral issues: Water, Waste, implementation of
Transport regulation: contact to Commission officials
Social dialogue: Pensions Green paper, Working Time
directive, Social Partners Work Programme, ...

35. Political Balance Sheet 2010
(1)
High level discussions with Almunia, Andor and Barnier:
CEEP opinion put forward
Direct access to decision-makers in Commission and to
Parliament: preparation of initiatives
Political initiatives taken on Service Concessions, SSGI,
Monti-Kroes-Package: members informed
Successful Congress with Vice-President of the Commission,
Joaquin Almunia: first time a Commissioner attended; also
BusinessEurope and ETUC attended (de Buck, Monks)
Successful conference “Anticipation of Change” with
Commissioner Laszlo Andor: Commissioner stayed for
intense discussion with members
Start up of creation of “Public Service Employers’ Forum”:
beginning to organise Public employers
35

36. Political Balance Sheet 2010
(2)
Successful lobbying for a sensible directive on “Late
Payments”
Letter to MEPs: Maternity Leave not too long (Estrela
report)
“Public Services” placed as crucial value-adding
element of the European Social Model by “Mapping”
Intensive co-operation with the European Parliament:
permanent input given to Parliamentary Intergroup on
Public Services
CEEP established as the major actor in Public Services
Support given to and received by many sections
36

37. 37
Key policy fields 2011
Analyse Commission Work Program (October 2010)
Implementation of Europe 2020 Strategy: SGIs need
to be part of the flagship initiatives
Continued involvement in Intergroup on Public
Services: framework for Public Services
Single Market Act Communication: participate in
consultation; closely linked to the issues of Service
concessions, (I)PPP, Procurement, legal framework
Sectoral issues: Water (CEEP present in Water EP
Intergroup), Waste, implementation of Transport
regulation, energy: intensify contact to Commission
officials
Social dialogue: follow Working Time Directive, Social
Partners Work Programme; EUPAE

38. 38
Public Services and the Single
Market
Single Market Act: Communication of 27.
October 2010
– Services Concessions (proposition 18)
– Public Procurement (evaluation)
– Public-Private Partnerships
– Public-Public Partnerships
Proposition 25: Communication on SGI (2011)
Not worse than expected, but Service
Concessions included (see press release)
CEEP is partner to discuss with
38

39. 39
CEEP Actions on the Single
Market Act
Concessions: CEEP has answered the three
consultations and publish an official opinion as
base for consultation on Single Market Act
Note: Impact assessment not finished!
Public Procurement evaluation: proactive work of
CEEP upstream of the European Commission
PPPs: CEEP will present to the Commission a
summary of the good and other practices of PPPs
Public-Public Partnerships: CEEP promotes the „in-
house“ clause
Communication on SGI: explore political and legal
options

40. 40
Public Services
Single Market Act:
Public Services Concessions
Public Procurement
Public-Private Partnerships
Public-Public Partnerships
40

41. 41
CEEP Actions
Concessions: CEEP has answered all three
consultations and published an official opinion
Public Procurement: proactive work of CEEP
upstream of the European Commission
PPPs: CEEP will present to the Commission a
summary of the good and other practices of
PPPs
Public-Public Partnerships: CEEP promotes the
„in-house“ clause

42. A political view on the
Commission strategy
“Public Service” = (Central) Public
Administration as (tendering) authority
Services: Single Market rules apply -
tendering
If in doubt: ECJ can clarify (state aid,
procurement, priority of liberties)
SGI as residuum – in case of individual
(social benefits; social housing) or macro-
economic crisis (guarantees and liquidity for
banks)
But: will SMA Communication change this?
42

43. Consequences
Services of General Interest are put into the
competence of the Internal Market by
Commission initiatives and judgments by
the ECJ
Metaphorically: the excavator in an open-
cast mine will eat into all Services of General
Interest!
This can only change if a legal provision
prevents this in future (Art. 9, 14 Lisbon
Treaty)
43

44. Value of CEEP for members
“between 50% and 70% of national
legislations have a European origin”
44

45. CEEP is built on:
Close network of national sections
Representation in almost all EU
member states
Strong team in Brussels
Social Partner: regular structured
exchanges with the European
Commission, the Council and other
partners
45