General industrial policy

Berlin, 21st October 2009

Under the motto: “Social Justice from Farm to Fork. Fight Precarious Work!” the European Federation of Food, Agriculture and Tourism Trade Unions (EFFAT) launched its Charter on Precarious Work at a press conference today, during its Congress in Berlin. Statistics for the sectors in question emphasise once again that the situation on the European labour market is actually getting worse, not better.

There is something different about this crisis. Recent decisions by the European Court of Justice (ECJ) and spiralling social conflicts in the UK (Lindsey strikes), France, Italy and elsewhere all show that the EU is facing not just an economic, but also a social crisis. See election results: http://www.elections2009-results.eu/en/index_en.html

17^th March 2009, European Commission was holding a High-Level Group meeting on the future of the agro-food industry competitiveness. EFFAT Secretary-General, Harald Wiedenhofer was present there and stood for a sustainable competitiveness.

On 17th March 2009 the Commission held a high-level conference on Industrial Competitiveness - Challenges, opportunities, and the role of policy in difficult times. Peter Scherrer was one of the speakers alongside Commission President Barrosso and Vice-President Verheugen as well as representatives of academic circles and business.

Supporting the competitiveness of our industry in Europe, likely to become a promising sector for the future within the Union

The textile, clothing, leather and footwear industry has a future in Europe, but for that future to materialize the sector needs to bank more strongly on quality, creativity, technological development, research and development, and on a greater ability to respond more efficiently and more quickly to market requirements; the sector must also noticeably improve the level of vocational and continuous training. This implies that whenever necessary, our companies should favour investments in countries that are compatible with sustainable development in Europe. Considering that the average hourly wage cost in the 15-nation EU is around 15 euros, compared to the 45 cents in India, 40 cents in China and 25 cents in Bangladesh, it is obvious that competitiveness in European TCL sectors cannot be based on wages. Because of the difference in costs no price-oriented competitiveness strategy can win against emerging countries. Companies have a special responsibility to seek such non-wage cost competitiveness.

Sustainable development seeks to "meet the needs of the present without compromising the ability of future generations to meet their own needs” in the sense of balance between economic, social and environmental elements.

• Still, increasingly rapid global changes, from the melting of the icecaps to growing energy and resource demand, are challenging this objective.

European industrial workers are facing the challenge of a life-time. Now is the time for European politicians to stand up and actively pledge their commitment to fight for the creation and maintenance of good quality jobs in European manufacturing.