Large-scale layoffs: we need an EU reindustrialisation policy

The European Parliament wants to see a long-term strategy to increase industrial activity in Europe to 20% of EU Gross Domestic Product by 2020. In a Resolution that will be voted on tomorrow, the European Commission is urged to further develop its 2012 strategy for a ‘new industrial revolution’ as part of achieving the Europe 2020 Strategy goals.

The EPP Group negotiator of Parliament’s Resolution, Claude Rolin MEP, stressed that Europe has a social market economy which means that large companies have a moral and social responsibility to their employees: “Today’s call is very timely as Europe is being hit by a wave of major layoffs in some of its most established manufacturing plants. It is to be expected that multinational companies aim for cost efficiency, but this does not give them a free pass to act single-handedly. They have obligations towards their employees and the regions they are established in”, said the Belgian MEP.

In early September, Caterpillar announced the closure of its Belgian manufacturing site (Gosselies), resulting in the layoff of over 2000 workers and the threat of the loss of another 4000 jobs in the region. Caterpillar will also close down its Monkstown plant in Northern Ireland (Newtonabbey) which could lead to the loss of 250 jobs. On September 5, train manufacturer Alstom announced it will be closing down its Belfort site in France by 2018, which will result in 400 workers being laid off.

“In addition, we need a concrete reindustrialisation strategy to increase industrial activity to 20% of the EU’s GDP. We strongly believe that the manufacturing industry will continue to play a major part in the European economy”, he concluded.