Re-Structuring: Best Practice

The EU are launching a commission into best practice and policies for restructuring. Prompted by the obvious financial crisis within Europe and the Western economies, the EU wish to improve SME competitiveness. At the same time they are also wishing to save jobs which might not be a totally mutually attainable target. However the idea is to show best practice in difficult times. A worthy idea. Taken from Euroalert.

Re Organisation needs Care

The public consultation launched by the European Commission intends to identify successful practices and policies in the field of restructuring and adapting to change. The aim is to include the results into the upcoming employment package and to improve further cooperation between workers and employers' representatives, government, local and regional authorities and the EU institutions.

The European Commission launched until 30 March 2012, a public consultation on corporate restructuring and anticipating change. The aim is to identify successful practices and policies in the field of restructuring and adapting to change.

The consultation will also help to identify specific restructuring measures that could help deal with employment and social challenges, and help European companies improve competitiveness through innovation and a fast, but smooth adaptation to change.

Packing & Moving

This public consultation is launched when it is published by the Commission that the 85% of net new jobs in the EU between 2002 and 2010 have been created by SMEs.

The Green Paper which opens this consultation is supported by the staff working document "Restructuring in Europe 2011". The Green Paper includes several questions addressing issues such as whether the existing policy measures and practices adequate; what are the relevant framework conditions and existing good practices on access to finance; whether it is needed to update existing guidelines on restructuring and the means to ensure their implementation; or how to improve the synergies between companies, local authorities and other local actors.

According to the Commission, this consultation is open because from 2002 to 2010, over 11,000 cases of restructuring were recorded by the European Restructuring Monitor, with a ratio of almost two jobs lost for every one created.

Many companies and their workers have developed innovative arrangements to limit job losses. These initiatives have varied from working hours, to more social dialogue, to adjustment measures or the intervention of public employment services.

However, the Commission highlights that these may be less effective in a context of persistently weak demand.