Meeting of the Industriall European Trade Union Energy Sector Committee

Meeting of the industriAll European Trade Union Energy Sector Committee

Luxembourg, 4thMarch 2014

Draft Minutes

Participants: Ralf Bartels – IG BCE, Germany; Manuel Espinosa – FITAG-UGT, Spain; Marc Ferron – FCE CFDT, France; Bernd Frieg – VPE, Switzerland; Petteri Hyttinen – PRO, Finland; Jan Jangsäter – UNIONEN, Sweden; Herbert Lindner – PRO GE, Austria; Angel Muñoa – CC.OO FI; Mihail Nicolescu-Sava – PETROM-ENERGIE, Romania; François Perniola – CFE CGC, France; Eugen Petala – PETROM-ENERGIE, Romania; Chris Vanmol – ACV/CSC BIE, Belgium

industriAll Europe Secretariat: Sylvain Lefebvre – Deputy General Secretary; Corinna Zierold – Policy Advisor

European Commission, DG Energy: Bart Castermans

1) Welcome & Adoption of draft agenda

As the representative from the DG Energy, Bart Castermans, was only available between 13:00 and 14:00, it was suggested that the 2030 Framework be dealt with during this time slot and then that the agendabe continued with, as planned. The draft agenda, including the proposal, was adopted by the Committee members.

2) Adoption of the draft minutes

The draft minutes from the Committee meeting of 8th May 2013 were adopted.

3) Report of the Secretariat

DGS Sylvain Lefebvre presented the Secretariat Report. He informed the participants about the industriAll European Trade Union Manifesto to put industry back to work that had been prepared in the light of the European Parliament Elections taking place in May 2014 and the new Commission that would be formed subsequently. The ultimate aim of the industriAll Europe Manifesto was to ensure that the industrial trade unions’ voice and demands were being heard. It called for a coherent industrial policy, an investment plan for Europe and the creation of quality employment in Europe. The Manifesto would be finalised shortly and would be presented at a high-level Conference in Madrid on 2nd April 2014.

DGS Sylvain Lefebvre then went on to report on the recent developments with regard to social dialogue (SD), focussing on the Social Partners’ occupational health and safety agreement for the Hairdressing sector. Article 155 TFEU regulated the possibility for European Social Partners to negotiate agreements and request the Commission to forward them to the Council for adoption as a Council Directive. In the case of the hairdressers’ agreement, it had been rejected by some of the Member States, particularly the UK, who had criticised the lack of representativeness. Following the Commission’s announcement to put the process on hold, the Social Partners UNI Europe and EuroCoiffeurs had called for support from other European Sectoral Social Dialogue Committees, in the form of a letter. The development in this sector could be emblematic for Social Dialogue and the social partners had to make sure that the Commission was not undermining the role of the social partners at European level.

Furthermore, DGS Sylvain Lefebvre reported on the intersectoral SD meeting with the ETUC, BusinessEurope, UEAPME and CEEP, who had met with the new Director General of DG Employment. The main issues on the agenda were restructuring and the mobility of workers.

DGS Sylvain Lefebvre then went on to inform about the project budget lines available from the Unit B1 “Social Dialogue and Industrial Relations” that had been modified. The former budget line 01 on industrial relations and social dialogue has been split into the budget lines 01 on social dialogue and the budget line 04 on industrial relations, the latter of which prioritised projects which aimed to acquire expertise through research and analysis.

Next, DGS Sylvain Lefebvre reported on the preparation of the industriAll Europe Congress to be held in 2016 which was likely to take place in Spain. The Congress was going to define the future policy orientation of industriAll Europe. The preparation would be supported by a Think Tank with representatives from all of the eight industriAll Europe Regions.

DGS Sylvain Lefebvre then went on to speak about the situation faced by young people in Europe where there was currently an unemployment rate of around 25%. IndustriAll Europe had set up an Ad Hoc Youth Working Group and was involved in several initiatives that aimed to highlight the precarious situation in which young Europeans found themselves and to demand the policy makers to act.

Finally, he reported on the recent developments in the European refining sector which was currently in a difficult situation due to fierce competition on the global market. A ‘fitness check’ on the impact of different policies was being prepared by the European Commission. The refining sector was strategically important for a secure energy supply in Europe.

4)Activities of the European Social Dialogue Committees in the relevant sectors

Corinna Zierold (industriAll Europe) presented the activities in the three Sectoral Social Dialogue Committees which were relevant to the Energy sector.

The SSDC Electricity had agreed on a joint position on the 2030 Framework in which the social partners had demanded the inclusion of the Just Transition principle in the future Climate and Energy Package. Following the Nuclear Safety Directive to which the Social Partners had contributed with the inclusion of a paragraph on subcontractors, they discussed the nuclear liability initiative. Moreover, Social Partners were following up the implementation of the Framework of Action on Competencies and the Anticipation of Change in the Electricity Sector at national level. It was envisaged that a work group would be set up to discuss skills and qualifications. The Social Partners, Eurelectric, EPSU and industriAll Europe were also partners in the Social Forum of the Energy Community, where they were trying to promote social dialogue in the signature countries.

DGS Sylvain Lefebvre explained that there had been no further activities of the SSDC Gas since the announcement made by Eurogas in 2012 to reduce its commitment. Eurogas had proposed the establishment of a joint SSDC for electricity and gas, an idea that had been rejected by Eurelectric.

In a first discussion round, Chris Vanmol (ACV/CSC BIE, BE) expressed his surprise regarding the developments of the SSDC Gas as it used to be an active Committee and, certainly in Belgium, it continued to be. Bernd Frieg (VPE, CH) remarked that there were too many differences between the sectors, and that for this reason, they should be dealt with in separate Committees. In the gas sector, for instance, there were very sector-specific subjects, e.g. security of supply, unconventional gas, sector unbundling and market developments.

Marc Ferron (FCE CFDT, FR) expressed his concerns about the developments in Social Dialogue. He stated that the budget cuts did not facilitate our work and that, without a forum where we could discuss sector-specific issues, we would have a problem at European level.

Herbert Lindner (PRO GE, AT) explained that certain subjects, e.g. the extraction of shale gas, its role and perspectives, were crucial items for Europe and would need a forum in which to be discussed.

Corinna Zierold(industriAll Europe) then continued with the report on the activities of the SSDC Extractive Industries where the issue of shale gas has been discussed more recently, with a presentation of the Commissions’ initiative on the exploration and extraction of hydrocarbons. Environmental and safety issues, as well as the public acceptance and economic aspects, were discussed. Other important issues were NO and NO2 occupational exposure limits, the 2030 Energy and Climate Framework, carbon leakage, the value of indigenous raw materials, restructuring in the extractive industries and the setting up of a European database on skills.

DGS Sylvain Lefebvre reported that the French government had recently announced the plan to set up an extracting company with the intention of reducing import costs and providing competition with private companies.

5) Presentation and discussion of the 2030 Framework for Energy and Climate Policies

In order to present the 2030 Energy and Climate Package that was introduced by the European Commission on 22nd January 2014, the Secretariat had invited Mr. Bart Castermans from DG Energy. The presentation on the 2030 Framework is enclosed to the minutes.

DGS Sylvain Lefebvre introduced this item by presenting the basic demands of industriAll Europe that were expressed in the contribution to the European Commission’s public consultation on the Green Paper to establish a 2030 Framework for Climate and Energy Policies. Those were:

-To address the social dimension of climate and energy policies

-To ensure a just transition for employment and the industry

-To acknowledge the social partners as actors in contributing to a long-term energy and climate strategy and a just transition

-To address energy dependence and the need for a diversified energy mix

-To take into account the policy choices that are made outside of Europe and ensure the competitiveness of Europe’s industry

-To address energy poverty and the right for access to energy

The White Paper that was published on 22nd January provided a proposal that could become the basis for negotiation at the COP21 Conference in Paris in 2015. In February 2014, the European Parliament had voted in favour of a 40% reduction in CO2 emissions, a 30% increase in the share of renewable energy sources to the energy mix and a 40% increase in energy efficiency. The Council was expected to take a decision later this year.

Discussion

In the subsequent discussion, DGS Sylvain Lefebvre enquired as to the impact of increasing energy prices and how it would be possible to attract investors. He reiterated the importance of taking the broader global situationinto account and of providing for greater regulatory predictability in order to promote investments in Europe.

Bernd Frieg (VEP, CH) explained that the study on energy prices and costs should have been carried out earlier. It was clear that the increasing energy prices were not only due to taxes, but also to the network roll-out. The figures that were available at national level could not be compared, as the figures of certain associations were not necessarily reliable, sufficiently neutral or even traceable.

Ralf Bartels (IG BCE, DE) explained that the climate and energy targets had to be compatible with the 20% target for the industry’s share of GDP in Europe. With the 2030 Framework, we were now seeing an important shift. However, competitiveness was still not an energy policy target in the strictest sense of the word.

In the following discussion, the Spanish colleagues reported on the problem of energy poverty. The major electricity generating companies were selling the electricity to the banks and the banks were selling it to the grids, which was resulting in inflated energy prices. In Spain, there were 1,400,000 individual households affected by energy poverty, who were unable to even turn the heating on. Moreover, the companies were making profits but were not paying these out to their workers.

Chris Vanmol (ACV/CSC BIE, BE) argued that the increasing prices were also caused by the costs of service obligations and the public supply. The companies were often multinationals who preferred to invest in emerging markets instead of modernising the energy systems in their home countries.

Following the discussion Corinna Zierold (industriAll Europe) presented a draft outline for an industriAll Europe Position Paper that was to be forwarded for adoption to the Executive Committee in November 2014. The outline, which had been coordinated by the policy advisors at industriAll Europe, included a reflection of the legislative process, the trade union demands for just transition principles, safeguarding competitiveness with a special focus on energy prices for private households and energy intensive industries, investments in new and resource-efficient technologies, the further development of energy infrastructure and the common energy market and reforming the EU ETS.

6) Revised State aid guidelines for assessing public support projects in the field of energy and the environment

Ralf Bartels (IG BCE, DE)presented the industriAll Europe Position Paper on the guidelines for state aid to environmental and energy projects which was in line with the same principles of a sustainable economy and decent work. The roll-out and the support of renewable energy sources needed to continue. However, State aid should not promote precarious work. In principle, a tax-based financing of the support would be fairer as levies were the same for all consumers, including those who were in a more financially precarious position.

Bernd Frieg (VPE, CH) explained that it was a problem that the industry tried to avoid network costs through decentralised generation which resulted in higher costs for the private users. Furthermore, he explained that the Commission had the exclusive right to determine the State aid guidelines. The question for us was, to what point the Member States should be held responsible and how far-reaching the Commission’s decision should be.

7)Information about a potential workshop on energy and climate policy strategies

Corinna Zierold (industriAll Europe) informed participants about a planned event on energy policy that was being organised together with the Friedrich Ebert Stiftung, to be held in September 2014 in Katowice (Poland). The objective of the Conference was to gather experts in the field of industrial and energy policy from different regions in order to discuss the industrial trade unions’ expectations with regard to EU energy policy and to formulate recommendations that would contribute to the industriAll Europe Position Paper on energy and climate policies to be adopted at the Executive Committee meeting in November 2014.

Ralf Bartels(IG BCE, DE)explained that energy policy was extremely politicised, whilstaccording to the TFEU, the energy mix was a national decision. This was expressed by growing disparities between Member States and lobby groups. However, a common approach was needed in order to achieve sustainability goals. The definition of sustainable development was a development which not only strived to achieve environmental and climate goals but also one which ensured the preservation of existing jobs and the creation of new jobs. The title of the event “Creating jobs in East and West: What industrial trade unions expect from European energy policy” therefore constituted a well-defined benchmark for the trade unions.

DGS Sylvain Lefebvre explained that the choice of Katowice had been made due to the fact that Katowice was the cradle of industrial production in Poland. Poland’s energy production was heavily reliant on coal. 10% of the coal was imported, mainly from the US and China. In search for other energy sources, Poland had plans regarding the exploration of shale gas and recently, the government had announced plans to construct nuclear power plants. He argued that national and regional particularities needed to be taken into account when planning a European energy strategy.

8) Select Working Party for the Energy Sector Committee

Ralf Bartels (IG BCE, DE) reminded the Committee members of the importance of establishing a working groupthat met in between the Committee meetings in order to contribute to the industriAll Europe Energy policy position. The members were requested to send in further nominations.

9) Any other business

There not being any further business to discuss, the meeting was closed.

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