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EMCEF, European Unions Announce Priorities on Endesa

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6 March, 2006

A proposed European energy deal, conceived as a blocking move, received trade union attention and analysis last week in Brussels at EMCEF, the European Mine, Chemical and Energy Workers’ Federation. Attended by Spanish trade unions FIA-UGT and FM-CC.OO, Italian union UILCEM and German union IGBCE, the meeting was held to formulate a common trade union position on the bidding outcome for Spanish energy company Endesa.

German E.ON recently outbid Spain’s Gas Natural for Endesa, and both E.ON and Gas Natural will have one further opportunity in a sealed-bid process under Spanish energy and market rules. EMCEF issued a statement following the 28 February meeting in Brussels calling for maintaining Endesa as it is today and avoiding the splitting of businesses, and not to contract out integrated parts of the company; no refinancing through sale of assets; and keeping on track investments for renewed production and for build up of new electrical capacities.

Regarding the social impact of any Endesa takeover, EMCEF and the unions insist on no redundancies or layoffs; continuation of all collective agreements; further investment and support for worker training; social dialogue with trade unions on all matters of industrial policy; and recognition of all existing national labour relations matters as part of the European social model.

The EMCEF statement also cites, as good practice, a model of mutual recognition and well-developed agreements on social issues between unions and companies, and said ICEM’s Global Agreement with Endesa is “one example of this good practice on the global level that needs to be incorporated also for other companies in the future.”