28-29 April Employment Round Table

THE two-day round table held to discuss Commission President Jacques Santer's proposal for a ‘confidence pact' on employment ended with few concrete results. But Santer, speaking after the meeting which brought together over 70 representatives from 11 umbrella employers' and employees' bodies, said there was agreement that something needed to be done to reduce unemployment, adding: “We cannot go on as we are ... Everyone said they are prepared to contribute. The question is who does what.”THERE was sharp disagreement over the question of high labour costs, prompting Santer to remark that it was “pretty clear that the question of non-wage costs raised hackles”. In their replies to a Commission questionnaire sent out before the event, organisations representing workers claimed that recent wage restraint had not produced any trade-off in terms of job creation, as companies had used increased profits for financial investment rather than productive investment, and rejected arguments that reducing non-wage labour costs has a significant long-term effect on unemployment. Employers stressed the need to reduce non-wage labour costs to ease the burdens on business.