Social Dialogue in the EU Sugar Industry
Brussels, 26 February 2015
Draft report of the plenary meeting
The meeting was chaired by both Dr. Norbert Kailich (CEFS) and Mr. Harald Wiedenhofer (EFFAT).
1. Adoption of the agenda and minutes of the last plenary meeting
Dr. Kailich welcomed all participants and introduced Ms Dauphinelle Clément from Employment, Social Affairs and Inclusion DG.
The agenda was adopted and the minutes of the last plenary meeting (28.02.2014) were both adopted.
2. Review of the work programme 2014
Ms Brentnall presented the activities carried out in 2014 and the results achieved.
The participants noted the information.
The PowerPoint presentation is enclosed.
3. Presentation of the 12th report on the implementation of the CSR Code of Conduct for 2014
Ms Brentnall presented the draft CSR report for the 2014 period.
The PowerPoint presentation highlighting the main topics and focus of the report is enclosed.
Ms Brentnall and Mr. Ruiz indicated that more information was still required to flesh out the examples given on career development, training and employability. For this purpose Mr. Ruiz had contacted his members and was awaiting further details.
The participants adopted the draft. The final report should be finalized by the end of March 2015.
4. Work programme 2015
Ms Brentnall presented the proposed work programme for 2015-2016.
The proposal is enclosed.
On the issue of the future of the sugar sector, discussions took place highlighting the economic uncertainties and potential social risks that the sector was facing.
Ms Brentnall indicated that further to the request of the Italian government, the Council meeting of last 26 January 2015 discussed the future of the sugar sector. Several Member States supported Italy’s call regarding measures which would ensure a smooth transition when the current sugar quota system ends in 2017. The Commission announced its readiness to set up an expert group to take stock of the end of the quota system.
Participants from Spain explained that they were facing an uneasy situation with a constant decline in sugar prices in the EU and that the set up of an expert group by the Commission was therefore welcome. Participants from Spain also pointed out that they were concerned with unfair practices carried out by some non-EU companies placing sugar on the EU market at prices below the production costs. They called attention to the fact that some regions in Spain were depressed and if no support measures were put in place, a social crisis could be looming.
Participants from Poland also supported the set up of the expert group and urged the Commission to do this as soon as possible. They also stressed that this expert group should have a strong mandate- not only technical terms of reference but also political ones. They further explained that their analysis of the situation showed that the Polish government was on a path to liberalise the sugar market in Poland. This development coupled with the steady reduction in prices was worrisome. On a positive note, participants from Poland brought to the fore that they succeeded in organizing a meeting of the sugar companies in Poland to continue the social dialogue. Information on wage levels and social schemes were exchanged and possible solutions to the current problems were being discussed.
Participants from Italy underlined that problems already started in 2006 with the last reform of the sugar market. The current market situation was causing a strong impact on the economic viability of the sugar companies. On this basis, a joint letter to the Commission asking for a meeting with Commissioner Phil Hogan and for the social partners to be observers to the expert group would be of utmost importance to focus attention on the difficult situation faced by the European sugar sector.
Participants from Germany emphasized that parallel lines of action (national and European) should be taken to leverage the key demands of the social partners.
Mr. Ruiz confirmed that the CEFS Secretariat supported the idea of a political mandate for the expert group to be set up by the Commission.
Dr Kailich summed up the discussions and the following actions points were adopted by the participants:
· Both secretariats to draft a joint letter to the Commission asking for the expert group to have a high level political mandate and to be set up urgently
· Both Secretariats to ask for a meeting with Commissioner Phil Hogan to progress the above
· Both Secretariats to draft a press release in due course to highlight the difficult situation faced by the European sugar sector
5. Demographic analysis of the EU sugar industry workforce
Mr. Ruiz presented to the participants the final report including recommendations for adoption.
The final report is enclosed.
The participants noted the information and adopted the report.
Dr Kailich concluded that the recommendations would need to be implemented and taken further.
6. New Commission and new priorities DG EMPL
Ms Clément presented the political priorities of the new Commission, in particular to strengthen Europe’s competitiveness and to stimulate investment for the purpose of job creation.
The participants noted the information.
7. The EU sugar sector key challenges: exchange of views
Mr. Wiedenhofer introduced the two guest speakers: Mr. Van Driel (DG AGRI) and Mr. Tarabella (Member of the European Parliament).
Mr. Ruiz presented in the first instance an overview of the current problems: a deteriorating market situation well before the 2017 deadline, a bumper crop in 2014 and the limits to export. The PowerPoint presentation is enclosed.
Mr. Van Driel stated generally that in terms of competitiveness the sector had improved since 2006 and that the industry could rely on the support of the Commission in particular with regard to trade measures. Mr. Van Driel clarified that the Expert Group to be set up by the Commission should meet for the first time on 26 March 2015 and would involve experts from the Member States.
Mr. Tarabella commented that in light of the current depressed EU market, there was a need for clear measures to ensure a smooth transition in view of the end of sugar quotas in 2017. Those measures could include, inter alia, the possibility to make written contracts between beet farmers and processors compulsory, increased transparency and better information.
Discussions ensued with the participants on managing the current oversupplied EU market, the need for a sensible and fair approach to any new trade agreements and those under negotiations. Participants commented that the EU will have one of the most liberal markets after 2017.
Mr. Wiedenhofer thanked the guest speakers for their informative and frank discussions with all the participants.
8. Communicating and disseminating the work of the social partners
8.1. Common website
Mr. Ruiz up-dated the participants on the progress of the work to revamp the joint website.
The presentation is enclosed.
The participants noted the information.
8.2. EU sugar sustainability partnership
Mr. Ruiz up-dated the participants on the partnership that had reached its communication phase.
The presentation is enclosed.
The participants noted the information.
9. Conclusions
Mr. Wiedenhofer thanked all participants and closed the meeting.
Final list of participants-Sugar social dialogue committee working plenary meeting
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