Study on monitoring the application of the EU Quality Framework for anticipation of change and

128 Pages·2017·2.42 MB·English

Study on monitoring the
application of the EU Quality
Framework for anticipation of
change and restructuring
Final Report
Social
Europe
EUROPEAN COMMISSION
Directorate-General for Employment, Social Affairs and Inclusion
Directorate E - Skills
Unit E1— Job creation
Contact: [email protected]
European Commission
B-1049 Brussels
Study on monitoring the
application of the EU Quality
Framework for anticipation of
change and restructuring
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Luxembourg: Publications Office of the European Union, 2018
PDF ISNB 978-92-79-90386-1 doi:10.2767/949091 KE-02-18-956-EN-N
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EUROPEAN COMMISSION
Directorate-General for Employment, Social Affairs and Inclusion
Unit E.1 – Job Creation
Monitoring application of the EU Quality Framework for anticipation of change and
restructuring - VT/2015/036

Table of Contents
1 Introduction ................................................................................................ 1
1.1 The scope of the study ........................................................................... 1
1.2 Purpose of the report ............................................................................. 2
2 The Context within which QFR was developed .................................................. 3
2.1 EU policies on restructuring and change ................................................... 3
2.2 Key features of the QFR ......................................................................... 5
3 Data collection and analysis .........................................................................14
3.1 Data collection process .........................................................................14
3.2 Analysis of study evidence .....................................................................24
3.3 Issues with data collection .....................................................................25
4 A review of literature relating to restructuring: drivers and impacts ...................27
4.1 The process of change and restructuring .................................................28
4.2 Overall analysis by Member State of job losses from restructuring events ...32
5 Research Questions .....................................................................................38
5.1 Study Question 1: What are the awareness levels about the existence of the
QFR among different categories of stakeholders? ...............................................38
5.2 Study Question 2: Have the QFR good practice standards been implemented?
If so, was it triggered or facilitated by the QFR? Have other good practices and
standards of anticipation and management of restructuring been implemented? ....39
5.3 Study Question 3: How has the QFR been implemented by each stakeholder
category (employers / employees / employee representatives / authorities etc.)? In
particular, what was the role of the social partners and / or EWCs in anticipation and
management of restructuring? .........................................................................53
5.4 Study Question 4: To what extent has the QFR contributed to the
improvement of the restructuring practices in the EU? What was the result of the
QFR in terms of actual increase and/or improved quality as regards different stages
(i.e. anticipation and management) and different categories of stakeholders in the
restructuring activities? ..................................................................................57
5.5 Study Question 5: Has the QFR produced net positive benefits compared to
the outcomes produced through other EU and MS level initiatives / programs and if
so, in which domain? ......................................................................................59
5.6 Study Question 6: Were there any undesirable or negative effects? If so,
which and who was affected (it could be that the interventions were beneficial for
e.g. older workers, but negative for young workers etc.)? ...................................64
5.7 Study Question 7: Has the QFR been applied to employees and officials from
public administration? ....................................................................................66
5.8 Study Question 8: Has the QFR been applied in the SMEs? ........................73
5.9 Study Question 9: To what extent is the QFR coherent with other EU acts
applicable in cases of restructuring? .................................................................81
5.10 Study Question 10: Are there any innovative tools that have been developed
in order to apply the QFR? What are they? ........................................................85
5.11 Study Question 11: How could better results be obtained within the current
approach, i.e. the QFR based on good practices? ...............................................87
5.12 Study Question 12: Would a different approach to promotion of the socially
responsible restructuring bring more added value? ............................................88
6 Conclusions and recommendations ................................................................89
6.1 Overall assessment ..............................................................................89
6.2 Summary of specific conclusions related to research questions ...................90
Monitoring application of the EU Quality Framework for anticipation of change and
restructuring - VT/2015/036

6.3 Recommendations ................................................................................95
Annex 1: Study Methodology ............................................................................97
Method overview ...........................................................................................97
Work undertaken ...........................................................................................98
Annex II: Study Bibliography ........................................................................... 118
Monitoring application of the EU Quality Framework for anticipation of change and
restructuring - VT/2015/036

1 Introduction
ICF Consulting was appointed by DG Employment, Social Affairs and Inclusion in July
2015 to undertake a study entitled “Monitoring application of the EU Quality Framework
for anticipation of change and restructuring - VT/2015/036” issued under the Framework
Contract “Provision of services related to evaluation, evaluative studies, analysis and
research work, including support for impact assessment activities - Lot 2: analysis and
research including impact assessment (VC/2013/0085)”.
This study provides DG Employment, Social Affairs and Inclusion with an objective
assessment of the way in which the EU Quality Framework for anticipation of change and
restructuring (QFR) has been implemented in the first two years (2014 and 2015) since
its adoption. Additionally the study provides the Commission with elements for reflection
on whether there is a need to revise the QFR or take any further initiatives with regard to
the anticipation and management of restructuring.
1.1 The scope of the study
The study required consideration of the following research questions:
1. What are the awareness levels about the existence of the QFR among different
categories of stakeholders?
2. Have the QFR good practice standards been implemented? If so, was it triggered or
facilitated by the QFR? Have other good practices and standards of anticipation and
management of restructuring been implemented?
3. How has the QFR been implemented by each stakeholder category (employers/
employees/ employee representatives/ authorities etc.)? In particular, what was the
role of the social partners and/or European Works Councils (EWC) in the anticipation
and management of restructuring?
4. To what extent has the QFR contributed to the improvement of the restructuring
practices in the EU? What was the result of the QFR in terms of actual increase
and/or improved quality as regards different stages (i.e. anticipation and
management) and different categories of stakeholders in the restructuring activities?
5. Has the QFR produced net positive benefits compared to the outcomes produced
through other EU and MS level initiatives/programs and if so, in which domain?
6. Were there any undesirable or negative effects? If so, which and who was affected (it
could be that the interventions were beneficial for e.g. older workers, but negative
for young workers etc.)?
7. Has the QFR been applied to employees and officials from public administration?
8. Has the QFR been applied in the Small to medium enterprises (SMEs)?
9. To what extent is the QFR coherent with other EU acts applicable in case of
restructuring1?
10. Are there any innovative tools that have been developed in order to apply the QFR?
What are they?
11. How could better results be obtained within the current approach, i.e. the QFR
based on good practices?

1 Directive 2002/14 on Information and Consultation, Directive 2001/23 on transfer of undertakings, Directive
1998/59 on collective redundancies, Directive 2005/56 on cross- border mergers, and Directive 2009/38 on
European works council.

1
Monitoring application of the EU Quality Framework for anticipation of change and
restructuring - VT/2015/036

12. Would a different approach to promotion of the socially responsible restructuring
bring more added value?
1.2 Purpose of the report
This final report presents specific findings in relation to each research question and
provides information on the available evidence base, sources of information and gaps in
information or weaknesses in data availability.
This report is structured in the following way:
 Section 2 provides an overview of the policy initiatives that led to the production
of the QFR. It also outlines the key features of the QFR and presents an
intervention logic for the QFR.
 Section 3 presents the work undertaken and outlines the evidence which supports
the answers to each study question and discusses the limitations of the evidence
base.
 Section 4 presents the results of a data and literature review to outline the main
drivers and impacts of restructuring in Europe.
 Section 5 presents research findings for each of the study questions.
 Section 6 details the study conclusions and recommendations.
 Annex I contains a full description of the study tasks.
 Annex II provides a bibliography which lists the sources used in the production of
this report and a list of case studies which contributed to the evidence base.

2
Monitoring application of the EU Quality Framework for anticipation of change and
restructuring - VT/2015/036

2 The context within which QFR was developed
This section outlines the key policy initiatives which preceded the QFR and outlines the
key features of the QFR. It concludes by presenting an intervention logic for the QFR,
broken down by the stakeholder groups for which QFR recommends various good
practices.
2.1 EU policies on restructuring and change
Policy makers in Europe have been concerned with the impact of restructuring on
workers since the beginning of the European Coal and Steel Community, and this concern
moved higher on the policy agenda following the creation of the Single Market and
adverse publicity around examples of large-scale factory closures, sometimes associated
with moving jobs to other parts of the Union or indeed outside the EU. Some of the early
responses can be found in the EU Directives on Collective Redundancies (98/59/EC),
European Works Councils (94/45/EC) and Worker Information and Consultation (Directive
2002/14/EC).
In order to be able to track developments in relation to restructuring, one of the key EU
activities in this policy field was the establishment of the European Monitoring Centre
on Change (EMCC) and the European Restructuring Monitor (ERM). Established in
2001, the Centre is a key measure to underpin collaborative efforts across Europe in the
area of restructuring. EMCC is a place for exchanging practice, information and ideas on
the management and anticipation of change. It provides a ‘focal point’ for companies,
social partners, national and regional authorities, and European agencies to monitor and
keep abreast of critical developments and their likely impact at company, sectoral and
territorial levels. The EMCC covers developments which may be due to, for example,
changes in legislation, emerging new technologies, or the introduction of new business
practices.
The EMCC was also a source of information for the purposes of this study as the EMCC
maintains the European Restructuring Monitor (ERM). The ERM monitors the employment
impact of restructuring events in Europe. The database is based on media
announcements in national media sources, and as such it mainly monitors large scale
restructuring events. The ERM also provides a database on national public support
instruments for restructuring to assist companies and workers to anticipate and manage
restructuring and also includes information on restructuring related legislation providing
an overview on national regulations associated with restructuring.
The second milestone in the development of EU restructuring policy was the 2005
Communication from the Commission “Restructuring and employment.
Anticipating and accompanying restructuring in order to develop employment:
the role of the European Union”2. The Communication presents restructuring as being
at the heart of the re-launched Lisbon Strategy, calling on the EU and Member States to
tackle the negative consequences of restructuring using active labour market policies to
assist affected workers, lifelong learning to enhance overall employability and the
anticipation of change in industrial sectors. To achieve this, it emphasises the importance
of mobilising all national and Community resources, and enhancing partnership between
the EU and Member States, as well as the social partners and civil society, all with a view
to ensuring that the negative effects of restructuring on employment and working
conditions are as short-lived and limited as possible. The Communication, although
important in the history of EU policy in the field of restructuring, is less relevant to the
aims of the study, given that it did not set out practical tools in the same way that the
QFR does.

2 http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52005DC0120&from=EN
3
Monitoring application of the EU Quality Framework for anticipation of change and
restructuring - VT/2015/036

Also in 2005, DG EMPL established the Restructuring Task Force and the
Restructuring Forum. The task force coordinated policies on restructuring, and the
analyses made by the different services on the phenomenon of restructuring (causes of
restructuring, as well as the best ways of anticipating change). It also prepared and
organised the different sessions of the Restructuring Forum in the different Member
States. Its overall mission was to provide an EU-wide gathering to frame, support and
ultimately build upon initiatives and policy measures that existed at the time in response
to the challenges posed by restructuring.
The 2009 Communication from the Commission on “A shared commitment for
employment” called for better anticipation and management of restructuring, through
the exchange of experiences (e.g. 'Toolkit for restructuring') and sectoral partnerships.
On 11 February 2009, the Commission held a workshop aimed at gathering a group of
experts and restructuring stakeholders in order to develop a series of “Restructuring
Process Checklists”. Afterwards a set of comprehensive checklists was published,
containing concrete actions aimed at anticipating, managing and reacting to
restructuring.
Between 2009-2010, the European Commission ran a series of national seminars on
restructuring (project A.R.E.N.A.S), which sought to bring together key stakeholders
to debate the national framework for the anticipation of restructuring and legislation, as
well as other measures supporting the implementation of follow-up processes to
restructuring which limit the negative impact of such processes on companies, individuals
and territories. National reports are available for each of these seminars which have
contributed towards the literature review for this study3.
The Commission staff working document “Restructuring in Europe 2011”4 illustrated
EU action in the field of anticipating skills needs and developing competences;
highlighted the role of EU funds in support of restructuring processes, the impact of
restructuring in EU regions and the role of ‘smart specialisation’ strategies; analysed the
role of social dialogue, legal instruments and Member States’ support measures in this
field; outlined the challenges and the EU responses to them; and highlighted some
tentative lessons learned in recent years on anticipation and management of change and
restructuring.
The Commission staff working document was followed by the 2012 “Green Paper:
Restructuring and anticipation of change: what lessons from recent
experience?”5 The paper renewed the debate on restructuring and was accompanied by
a public consultation aiming to get further insights into best practices that contribute to a
successful restructuring process especially in the context of the economic crisis. The
Commission was eager to encourage permanent business adaptation to fast-changing
economic circumstances while pursuing a high level of employment and social protection
through the appropriate supporting measures. Measures supporting the reallocation of
resources between firms and occupations through supporting internal and external
flexibility where particularly emphasised.
In early 2013, the European Parliament adopted a resolution endorsing a report of
Alejandro Cercas – Resolution on information and consultation of workers,
anticipation and management of restructuring based on Article 225 of the TFEU
(known as the Cercas Report)6. The resolution called on the European Commission to
prepare a proposal for a legal act on the information and consultation of employees, and
the anticipation and management of restructuring.

3 http://www.employment-studies.co.uk/resource/ec.europa.eu/social/BlobServlet?docId=6149&langId=en
4 http://ec.europa.eu/social/main.jsp?langId=en&catId=89&newsId=1166&furtherNews=yes
5 Ibid.
6 http://www.europarl.europa.eu/sides/getDoc.do?type=TA&reference=P7-TA-2013-0005&language=EN
4