2018/2053(INI) | [ParlTrack]

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ

Motion for a resolution
Citation 17

– having regard to the ~~Commission green paper entitled ‘Building a Capital Markets Union’, published on 18 February 2015 (COM(2015)0063)~~Mid Term review of the Capital Markets Union Action Plan COM(2017) 292, published on 08.06.2017,

Amendment 10 #

Motion for a resolution
Recital C

C. whereas ~~ESOPs are commonly preferred by employees, because~~in the case of ESOPs the intermediate entity used can exercise voting rights or other forms of governance on behalf of employees;

Amendment 100 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Evelyn REGNER, Michael DETJEN

Motion for a resolution
Paragraph 11

11. Recalls that the decision to join EFP schemes should be based on the informed consent of an employee, fully aware of his or her entitlements, obligations and risks, of the situation of the company and of the taxation effects when joining the scheme and the conditions which apply when he or she leaves the company or the scheme; highlights that employees should receive guarantees that no action will be taken against them if they decide not to join an EFP scheme;

Amendment 101 #

Motion for a resolution
Paragraph 11

11. Recalls that the decision to join EFP schemes should be totally voluntary and based on the informed consent of an employee, fully aware of his or her entitlements, obligations and risks, of the situation of the company and of the taxation effects when joining the scheme and the conditions which apply when he or she leaves the company or the scheme;

Amendment 102 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Michael DETJEN

Motion for a resolution
Paragraph 11 a (new)

11a. Points out that employees having left the company following redundancy or voluntary resignation are often overlooked in internal communications related to the EFP scheme and that there needs to be an authority to guarantee their rights to information and fair management if the scheme does not automatically put an end to their participation;

Amendment 103 #

Motion for a resolution
Paragraph 12

12. Considers that EFP benefits should always be complementary to the contractual remuneration and rights such as social security contributions and not a replacement of the above or a way to diminish the above;

Amendment 104 #

Motion for a resolution
Paragraph 12

12. Considers that ~~EFP~~the EFP should always remain voluntary, both for companies and employees, and that its benefits should always be complementary to the contractual remuneration and rights;

Amendment 105 #

Motion for a resolution
Paragraph 12

12. Considers that EFP ~~benefits should always be complementary to the contractual remuneration and~~should not replace normal basic remuneration or any other form of contribution, but should be complementary to all social and contractual rights;

Amendment 106 #

Motion for a resolution
Paragraph 12

12. ~~Consider~~Recalls that EFP benefits ~~should~~must always as a pre-condition be complementary to the contractual remuneration and rights;

Amendment 107 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Michael DETJEN, Evelyn REGNER

Motion for a resolution
Paragraph 14

14. Calls on the Commission and the Member States to consider the rapid evolution and change of the labour market and the consequent challenges regarding skills, digitalisation, automation ~~and, potentially~~, wealth inequalities, and ~~therefore continuously create new opportunities for the labour force to adapt in order to be financially sustainable and independent~~social security cuts;

Amendment 108 #

Motion for a resolution
Paragraph 14

14. Calls on the Commission and the Member States to consider the rapid evolution and change of the labour market and the consequent challenges regarding skills, digitalisation, automation and, potentially, wealth inequalities, and therefore continuously create new ~~opportunities for the labour force to adapt in order to be financially sustainable and independent~~ways to protect workers as well as enable opportunities for the labour force to develop professionally and personally;

Amendment 109 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Michael DETJEN

Motion for a resolution
Paragraph 14 a (new)

14a. Stresses the important role that the EFP can play in fostering entrepreneurship and an entrepreneurial mindset by facilitating research and access to capital, especially for start-ups;

Amendment 11 #

Motion for a resolution
Recital D

D. whereas EFP schemes involving workers in consultation and decision- making have benefits for ~~the compan~~both employees and the company especially in terms of sustainable governance, social dialogue and other aspects such as recruitment, retention, absenteeism, motivation and skills development, as well as competitiveness and profitability;

Amendment 110 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Evelyn REGNER

Motion for a resolution
Paragraph 14 a (new)

14a. Highlights that although micro- enterprises play an important role in the economy of most EU Member States, no supportive measures for employee share ownership are implemented for them as yet;

Amendment 111 #

Motion for a resolution
Paragraph 15

15. Welcomes initiatives led by directorates-general of the Commission such as DG EMPL, FISMA and GROW supporting employment, SMEs and the capital markets union, and calls for a coordinated approach for the best use of available resources, remembering that the final beneficiary is the European citizen;deleted

Amendment 12 #

Motion for a resolution
Recital D

D. whereas EFP schemes involving workers in consultation and decision- making might have benefits for the company inf ther~~ms of~~e is respect for sustainable governance, transparency, social dialogue and might benefit other aspects such as recruitment, retention, absenteeism, motivation and skills development;

Amendment 13 #

Motion for a resolution
Recital D

D. whereas EFP schemes involving workers in consultation and decision- making have benefits for the company in terms of sustainable governance, social dialogue and other aspects such as recruitment, retention, ~~absenteeism,~~ motivation and skills development;

Amendment 14 #

Motion for a resolution
Recital D a (new)

Da. whereas participative change in a company nourishes an environment of trust between management, employees and their representatives and whereas social dialogue can help inform employees about adaptation needs, promote employee involvement in operations, and engage the workforce in debates about the future of their company1b; __________________ 1b Innovative changes in European companies, Eurofound 2017

Amendment 15 #

Motion for a resolution
Recital D a (new)

Da. whereas EFP schemes can play a significant role in additionally involving workers in information, consultation and decision-making processes during restructuring;

Amendment 16 #

Motion for a resolution
Recital D b (new)

Db. whereas employee participation in management through voting rights, the right to be present or other forms of governance can improve management and the flow of information and help employees to have a better understanding of the situation when their company faces challenges and a greater ability to access rewards when the company is doing well;

Amendment 17 #

Motion for a resolution
Recital D b (new)

Db. whereas employee participation could be used as a workplace innovation tool in order to promote organisational change and renewal and hence improve the quality of working life and organisational performance1c; __________________ 1cWorkplace innovation in European companies. Eurofound. 2016

Amendment 18 #

Motion for a resolution
Recital D c (new)

Dc. whereas workers’ financial participation in their company can contribute to improvements in employees’ job satisfaction and overall performance and motivation; whereas it can also encourage employees to develop a sense of ownership as well as enhance mutual respect between employers and employees;

Amendment 19 #

Motion for a resolution
Recital E

E. whereas ~~EFP schemes could have~~Capital Markets Union reaches to empower retail investment and can support EFP schemes by contributing to overcoming widespread reluctance among retail investors to invest their savings in shares owing to a lack of knowledge about its benefits and risks, thus eventually positively impactsing on the economy of Member States by supporting SMEs and the job market;

Amendment 2 #

Motion for a resolution
Recital A

A. whereas there are several employee financial participation (EFP) models a ~~company~~n employer can choose from: profit sharing, individual employee share ownership, worker ownership in cooperative models and employee stock ownership plans (ESOPs);

Amendment 20 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Michael DETJEN, Evelyn REGNER

Motion for a resolution
Recital E

E. whereas EFP schemes ~~could~~should be encouraged and developed as they can have positive impacts on the economy of Member States by supporting companies, including SMEs and the job market, in that financial participation by staff can improve their motivation and thus increase the company’s productivity, as well as strengthening staff loyalty and thus encouraging them to remain in their jobs;

Amendment 21 #

Motion for a resolution
Recital E

E. whereas EFP schemes could have positive impacts on the economy of Member States by supporting SMEs and the job market, and by enabling employees to find opportunities in their home country;

Amendment 22 #

Motion for a resolution
Recital E a (new)

Ea. whereas the European Employment Strategy and the Europe 2020 Strategy set priorities to improve the quality of jobs and ensure better working conditions and whereas increasing employee participation in company financial results and offering better rewards could help to meet these goals;

Amendment 23 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Michael DETJEN

Motion for a resolution
Recital F

F. whereas EFP can contribute to overcoming ~~widespread~~natural reluctance among retail investors to invest their savings in shares owing to rate manipulations by certain banks and financial operators and a lack of knowledge about its benefits and risks;

Amendment 24 #

Motion for a resolution
Recital F

F. whereas EFP, if paired with proper training and information, can contribute to overcoming widespread reluctance among retail investors to invest their savings in shares owing to a lack of knowledge about its benefits and risks;

Amendment 25 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO

Motion for a resolution
Recital F a (new)

Fa. whereas EFP must go hand-in- hand with a high level of information for and consultation with staff so that they are fully aware of the functioning of the financial participation schemes that they could join, to enable them to make a fully informed assessment of the potential risks and benefits of these schemes;

Amendment 26 #

Motion for a resolution
Recital F a (new)

Fa. whereas employees need to be aware that any form of investment is subject to the risk of losing the entire investment, as well as that in the case of the company’s bankruptcy, they would be faced with double economic loss;

Amendment 27 #

Dominique MARTIN, Joëlle MÉLIN

Motion for a resolution
Recital F a (new)

Fa. whereas the proportion of European shares held by Europeans must be increased;

Amendment 28 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Michael DETJEN, Evelyn REGNER

Motion for a resolution
Recital F b (new)

Fb. whereas through EFP, enhanced social dialogue and strategic decision making, employers might invest in development opportunities for their workforce, thus contributing to the fight against social exclusion and ensuring a high level of training;

Amendment 29 #

Motion for a resolution
Recital F b (new)

Fb. whereas the EFP consisting of employee share ownership schemes should be accompanied by adequate training for employees, so that they are fully aware of the level of risk inherent in their investment;

Amendment 3 #

Dominique MARTIN, Joëlle MÉLIN

Motion for a resolution
Recital B

B. whereas the most appropriate EFP model must be carefully chosen by the individual company and its workers taking due account of the wider national and sectorial context, and will mostly depend on the size, activity and status of the company, especially if it is listed;

Amendment 30 #

Motion for a resolution
Recital F b (new)

Fb. whereas it is crucial that the shares of companies based in Europe are majority-owned by Europeans.

Amendment 31 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Evelyn REGNER

Motion for a resolution
Recital G

G. whereas EFP can help SMEs with respect to business continuity by addressing company succession ~~problem~~and generational renewal problems, especially in family businesses;

Amendment 32 #

Motion for a resolution
Recital G

G. whereas by involving employees in the decision making process, EFP can help SMEs with respect to business continuity by addressing company succession problems;

Amendment 33 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Michael DETJEN

Motion for a resolution
Recital H

Amendment 34 #

Motion for a resolution
Recital H

H. whereas EFP~~, especially ESOPs or similar schemes could~~ has positive and negative elements to it; whereas, if it is done well, EFP might act as a shock absorber, allowing bonuses or other rewards to be managed in trusts by third parties, ~~spreading the investment risk among the company’s principal shareholders and ensuring that workers have a portfolio of saved shares~~ensuring that workers have a portfolio of saved shares; whereas in situations where EFP is used to replace income from work, this puts the concerned employee at risk of poverty and destabilises income continuity; whereas EFP shifts the economic risk from the company to the worker;

Amendment 35 #

Motion for a resolution
Recital H

H. whereas EFP, especially ESOPs or similar schemes could act as a shock absorber, allowing bonuses or other rewards ~~to be managed in trusts by third parties, spreading the investment risk among the company’s principal shareholders~~ and ensuring that workers have a portfolio of saved shares;

Amendment 36 #

Motion for a resolution
Recital H

H. whereas EFP, especially ESOPs or similar schemes could act as a shock absorber, allowing bonuses or other rewards to be managed in trusts by third parties, spreading the investment risk among the company’s principal shareholders and ensuring that workers have a portfolio of saved shares; whereas in EFP models that use an intermediate entity in listed companies, this entity can exercise voting rights or other forms of governance on behalf of employees allowing for collective representation;

Amendment 37 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ

Motion for a resolution
Recital H a (new)

Ha. whereas EFP must not become a way of passing on the business risk to employees;

Amendment 38 #

Motion for a resolution
Recital I

I. whereas an ESOP iscan be an example of an ~~effective~~ employee buy-out model for non-listed companies i~~n which~~f the buy-out process is managed by an intermediate entity and that acquires the shares for the employees, protecting them from additional risks;

Amendment 39 #

Motion for a resolution
Recital I

I. whereas an ESOP ismay be an example of an effective employee buy-out model for non-listed companies in which an intermediate entity acquires the shares for the employees, protecting them from additional risks;

Amendment 4 #

Motion for a resolution
Recital B

B. whereas the most appropriate EFP model will be put in place in each Member State so as to respect the specific characteristics of the country and the existing schemes and will mostly depend on the size, activity and status of the company, especially if it is listed;

Amendment 40 #

Motion for a resolution
Recital I a (new)

Ia. whereas if employees obtain from their company’s owners a priority buy-out right, they may seek to safeguard their own jobs and this procedure may reduce uncertainty about their continued employment when there is the possibility of buyouts by other companies;

Amendment 41 #

Motion for a resolution
Recital J

J. whereas measures ~~are needed~~ to protect employees from facing double risks such as losing their job and the capital invested when their employer is impacted by a crisis are a precondition for any viable EFP;

Amendment 42 #

Motion for a resolution
Recital J a (new)

Ja. whereas EFP may not be used to reduce the social and employment rights acquired by employees and must not replace normal basic pay or other forms of contribution, such as pension schemes;

Amendment 43 #

Motion for a resolution
Recital K

K. whereas participation in the EFP should remain voluntary for employees, while not affecting their mobility; whereas the advantages and disadvantages of each scheme should be clearly explained to the person concerned;

Amendment 44 #

Motion for a resolution
Recital K

K. whereas participation in the EFP should remain voluntary for employees, particularly in SMEs, while not affecting their mobility;

Amendment 45 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Michael DETJEN, Evelyn REGNER

Motion for a resolution
Recital K

K. whereas participation in the EFP should remain voluntary for employees, while not affecting their mobility, their remuneration or their social security allowances;

Amendment 46 #

Motion for a resolution
Recital K

K. whereas participation in the EFP should remain voluntary for employees, while not affecting their mobility or their rights to take collective action;

Amendment 47 #

Motion for a resolution
Recital L

L. whereas ~~it is generally assumed that~~ fiscal incentives are key elements to promote EFP that could pay off in a medium to long term, considering that countries which have a long tradition of employee financial participation also have the most developed employee ownership and the highest fiscal benefits;

Amendment 48 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Michael DETJEN, Evelyn REGNER

Motion for a resolution
Recital L a (new)

La. whereas EFP might not be suitable for all companies or employees and the matter should therefore be given very careful consideration before such a scheme is adopted;

Amendment 49 #

Motion for a resolution
Recital M

M. whereas proactive employment policies such as support for genuine self- employment and regular and social entrepreneurship are critical tools for the reintegration of the unemployed into the labour market, in line with the European Entrepreneurship Action Plan adopted in January 2013;

Amendment 5 #

Motion for a resolution
Recital B a (new)

Ba. whereas, according to the data from the 2013 European Company Survey, 62% of European establishments use some form of variable pay; whereas the most common type is pay linked to individual performance and assessed by management appraisal (43%), followed by payment by results (34%), profit sharing (30%) and pay linked to group performance (25%); whereas share- ownership schemes are used by 5%of establishments;

Amendment 50 #

Evelyn REGNER, Javi LÓPEZ

Motion for a resolution
Recital N

~~N. whereas the European Social Fund could support frameworks similar to Sociedades Laborales as a supporting active labour market policy throughout Europe;~~deleted

Amendment 51 #

Motion for a resolution
Recital N

N. whereas the European Social Fund could support frameworks similar to Sociedades Laborales as a supporting active labour market policy throughout Europe; whereas the Spanish Sociedades Laborales are a best practice example of an employee share ownership scheme for micro-enterprises;

Amendment 52 #

Motion for a resolution
Recital N a (new)

Na. whereas the current European Social Fund promotes social entrepreneurship and vocational integration in social enterprises and the social and solidarity economy and the new ESF Plus should continue to do so; whereas in the context of the social and solidarity economy, employee Financial participation is often an element and could be supported by the ESF;

Amendment 53 #

Motion for a resolution
Recital P

P. whereas the European Globalisation Adjustment Fund, which supports re-skilling and EFP, is an avenue for continuously training workers, maintaining their employability and reducing the risks of getting laid off;deleted

Amendment 54 #

Motion for a resolution
Recital P

P. whereas the European Globalisation Adjustment Fund~~, which supports re- skilling and EFP, is an avenue for continuously training workers, maintaining their employability and reducing the risks of getting laid off~~ helps people who have lost their jobs as a result of major structural changes due to globalisation or the economic and financial crisis, in particular through measures for re- skilling, training, support for self- employment, business start-ups and employee takeovers;

Amendment 55 #

Motion for a resolution
Recital P

P. whereas the European Globalisation Adjustment Fund, which supports re- skilling and EFP, ~~is an avenue for continuously training workers, maintaining their employability and reducing the risks of getting laid off~~should remain a complementary instrument on training workers;

Amendment 56 #

Motion for a resolution
Recital Q

~~Q. whereas EU guidelines for EFP will help Member States develop EFP schemes throughout Europe, leading to the benefits mentioned above;~~deleted

Amendment 57 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ

Motion for a resolution
Recital Q

Q. whereas EU guidelines for EFP will help Member States develop EFP schemes throughout ~~Europe,~~the EU, increasing their potential to lead~~ing~~ to the benefits mentioned above;

Amendment 58 #

Motion for a resolution
Recital Q

Q. whereas EU guidelines for EFP will help Member States develop EFP schemes throughout Europe, potentially leading to the benefits mentioned above;

Amendment 59 #

Motion for a resolution
Recital Q a (new)

Qa. whereas information about the economic situation of the company concerned as well as information about the attached risks should be available to the workers concerned at all times;

Amendment 6 #

Motion for a resolution
Recital B a (new)

Ba. whereas EFP is affected by national taxation rules, and whereas it is not appropriate to develop a comprehensive ‘one size fits all’ model for EFP at EU level;

Amendment 60 #

Motion for a resolution
Recital Q a (new)

Qa. whereas a set of basic guidelines could achieve public confidence and help EFP deliver on its objectives;

Amendment 61 #

Motion for a resolution
Paragraph 1

1. Calls on the Commission to consider appropriate ~~measure~~recommendations to encourage Member States and companies, particularly SMEs, that show an interest in EFP to develop and offer EFP schemes;

Amendment 62 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Michael DETJEN

Motion for a resolution
Paragraph 1

1. Calls on the Commission to consider appropriate measures to encourage Member States and companies that show an interest in EFP to develop and offer EFP schemes which respect workers’ income safety and do not shift entrepreneurial risk to workers;

Amendment 63 #

Motion for a resolution
Paragraph 1

1. Calls on the Commission to consider appropriate measures to encourage Member States and companies that show an interest in EFP to develop and offer EFP schemes; for the benefit and in the interest of both employees and companies;

Amendment 64 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Michael DETJEN, Evelyn REGNER

Motion for a resolution
Paragraph 1 a (new)

1a. Calls on Member States and the Commission to only promote EFP schemes which: (a) do not shift entrepreneurial risk to the workers; (b) preserve and respect wages as poverty-proof income from work; (c) are not abused in a crisis situation to lower workers’ wages;

Amendment 65 #

Motion for a resolution
Paragraph 2

2. Calls on the Member States to provide incentives, in line with best practice principles, when promoting employee ownership schemes among companies and employees while supporting the highest standards of social protection for the employees and safeguarding their right to collective action;

Amendment 66 #

Motion for a resolution
Paragraph 2

2. Calls on the Member States to provide non-mandatory incentives, in line with best practice principles, when promoting employee ownership schemes among companies and employees;

Amendment 67 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Michael DETJEN, Evelyn REGNER

Motion for a resolution
Paragraph 2 a (new)

2a. Stresses that EFP should always provide additional income and not be a substitute for fair and decent pay; stresses that EFP should equally not be an alternative to public pensions or to collectively agreed pension schemes;

Amendment 68 #

Motion for a resolution
Paragraph 2 a (new)

2a. Calls on the Commission to implement the “five point action plan” included in the final report of the pilot project for the promotion of employee ownership and participation from 2014;

Amendment 69 #

Motion for a resolution
Paragraph 2 a (new)

2a. Calls on Member States to provide for EFP-based incentive schemes to reward the productivity of individual employees, including the use of tax cuts;

Amendment 7 #

Motion for a resolution
Recital B b (new)

Bb. whereas the use of supplementary reward systems varies greatly according to company characteristics; whereas these systems are more prevalent in the private sector than in the public sector (with some national exceptions) as well as in certain economic sectors, particularly information and communications technology, finance and insurance, and consultancy; whereas larger companies are more likely to use these systems than small and medium-sized enterprises, and they are also more common in foreign- capital or multinational companies and in companies located in economically1a central or advanced regions; __________________ 1a Changes in remuneration and reward systems. Eurofound 2016

Amendment 70 #

Motion for a resolution
Paragraph 3 a (new)

3a. Underlines that EFP has to be embedded in a whole system of workers’ involvement at all levels, and schemes should include the possibility of employee representatives in company decision making through seats on the board;

Amendment 71 #

Motion for a resolution
Paragraph 3 a (new)

3a. Highlights the importance of EFP schemes being designed in such a way that they protect employees' investment;

Amendment 72 #

Motion for a resolution
Paragraph 4

4. Highlights the transnational obstacles that are faced by both companies offering such schemes in several Member States, and employees, namely discrepancies in legislation and taxation which may impinge on the freedom of movement of workers, which plays an important role in enhancing convergence and integration among Member States;deleted

Amendment 73 #

Motion for a resolution
Paragraph 4

4. Highlights the transnational obstacles that are faced by both companies offering such schemes in several Member States, and employees, namely discrepancies in legislation and taxation ~~which may impinge on the freedom of movement of workers, which plays an important role in enhancing convergence and integration among Member States~~;

Amendment 74 #

Motion for a resolution
Paragraph 4

4. Highlights the transnational obstacles that are faced by both companies offering such schemes in several Member States, and employees, namely discrepancies in legislation and t~~axation which may~~he risks of double taxation which may incur substantial administrative costs and impinge on the freedom of movement of workers, which plays an important role in combating the scourge of unemployment and enhancing convergence and integration among Member States;

Amendment 75 #

Motion for a resolution
Paragraph 4 a (new)

4a. Notes that a framework for a European model of employee ownership should not override national taxation or social security rules;

Amendment 76 #

Motion for a resolution
Paragraph 5 a (new)

5a. Calls on the Member States to put forward targeted solutions and specific support measures for SMEs, in particular by encouraging the operators of employee savings schemes, such as banks and investment funds, to propose simple incentive schemes tailored to suit this type of company;

Amendment 77 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Michael DETJEN

Motion for a resolution
Paragraph 5 b (new)

5b. Calls on the Commission, with the help of the European Foundation for the Improvement of Living and Working Conditions, to continue collecting data on the use and spread of financial participation schemes, as well as to examine the impact of financial participation on the functioning of the company, the quality of its work and retention of workers in employment;

Amendment 78 #

Motion for a resolution
Paragraph 6

~~6. Notes that, to avoid administrative and development costs associated with implementing EFP in corporations and SMEs, there are outsourcing options, but these need to be promoted;~~deleted

Amendment 79 #

Motion for a resolution
Paragraph 6

6. Notes that, to avoid administrative and development costs associated with implementing EFP in corporations and SMEs, there are outsourcing options, but these need to be ~~promoted~~carefully assessed as outsourcing often entails hidden cost and disadvantages;

Amendment 8 #

Motion for a resolution
Recital B b (new)

Bb. whereas financial participation should not be used to avoid compliance with labour law, or as a means of reducing acquired social and labour rights or applying pressure to increase labour market flexibility;

Amendment 80 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Michael DETJEN, Evelyn REGNER

Motion for a resolution
Paragraph 6

6. Notes that, to avoid administrative and development costs associated with implementing EFP in ~~corporations and SMEs~~SMEs, above all, there are outsourcing options, but these need to be promoted;

Amendment 81 #

Dominique MARTIN

Motion for a resolution
Paragraph 6 a (new)

6a. Emphasises that that experience shows that some financial intermediaries charge excessive administrative fees in view of the work required and that public oversight should be introduced to ensure that these small shareholders are protected;

Amendment 82 #

Motion for a resolution
Paragraph 6 a (new)

6a. Underlines the need to ensure that EFP guarantees the right of employees to take part in company decision making;

Amendment 83 #

Dominique MARTIN

Motion for a resolution
Paragraph 6 b (new)

6b. Stresses the importance, especially for SMEs, of Member States each introducing a one-stop service proposing a model for employee financial participation so as to reduce administrative costs;

Amendment 84 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Evelyn REGNER

Motion for a resolution
Paragraph 7

~~7. Calls on the Commission and the Member States to promote financial education with respect to retail and equities investment in order to empower EU citizens;~~deleted

Amendment 85 #

Motion for a resolution
Paragraph 7

7. Calls on the Commission and the Member States to promote financial education ~~with respect to retail and equities investment in order to empower EU citizens~~in order to empower EU citizens and raise awareness about the implications of EFP;

Amendment 86 #

Motion for a resolution
Paragraph 7 a (new)

7a. Calls on the Commission and the Member States to exclude financial institutions and managers convicted of banking misconduct from trading in or administering employee financial participation schemes for a period of 10 years from their conviction;

Amendment 87 #

Motion for a resolution
Paragraph 8

8. Calls on the Commission and the Member States to engage with social partners, employee ownership organisations and other stakeholders to design the most appropriate EFP schemes, negotiated on a ‘plant-by-plant’ basis and considering the type of company, its workforce and financial situation, but also the national legislation and practicesconsider if EFP is a viable strategy to deliver on the EU2020 targets, especially the poverty target; to enter into such consultations with an open mind and without a fixed idea of promoting EFP as outcome;

Amendment 88 #

Motion for a resolution
Paragraph 8

Amendment 89 #

Motion for a resolution
Paragraph 8

8. Calls on the Commission and the Member States to engage with social partners, employee ownership organisations and other stakeholders to design the most appropriate EFP schemes, negotiated on a ‘plant-by-plant’ basis and considering the type of company, its workforce and financial situation, but also the national legislation and practices; underlines, that any design and introduction of EFP should be subject of prior consultation and agreement with worker representatives and trade unions;

Amendment 9 #

Motion for a resolution
Recital C

C. whereas ~~ESOPs are commonly preferred by employees, because the intermediate entity used can exercise voting rights or other forms of governance on behalf of employee~~the employee choice should be respected and no prejudgement be made about what option would be best for the employee by third persons;

Amendment 90 #

Motion for a resolution
Paragraph 8 a (new)

8a. Recommends negotiating employee savings schemes and tools at a branch-by-branch level in order to provide SMEs and VSEs with standard agreements that can be implemented directly and conveniently by these companies;

Amendment 91 #

Motion for a resolution
Paragraph 8 b (new)

8b. Invites the Member States to provide, on dedicated institutional sites, model profit-sharing agreements for SMEs and VSEs for ease of implementation;

Amendment 92 #

Motion for a resolution
Paragraph 9

9. Highlights that EFP should be open to all employees on a non-discriminatory basis, regardless of age, sex, trade-union membership, full-time / part-time work arrangements, the size of the company, etc.;

Amendment 93 #

Motion for a resolution
Paragraph 9

9. Highlights that EFP should be open to all employees on a non-discriminatory basis, regardless of age, ~~sex, trade-union membership~~gender, nationality, full-time / part-time work arrangements, etc.;

Amendment 94 #

Emilian PAVEL, Javi LÓPEZ, Claudiu Ciprian TĂNĂSESCU, Sergio GUTIÉRREZ PRIETO, Brando BENIFEI, Vilija BLINKEVIČIŪTĖ, Michael DETJEN

Motion for a resolution
Paragraph 9 a (new)

9a. Stresses that greater transparency is needed in EFP schemes: information about the economic situation of the company concerned and information about the attached risks should be available to the workers concerned at all times;

Amendment 95 #

Motion for a resolution
Paragraph 10

~~10. Adds that differentiation between employees may be justified to meet the different needs and interests of the employees, such as restricted shares plans that are confined to executives;~~deleted

Amendment 96 #

Motion for a resolution
Paragraph 10

Amendment 97 #

Motion for a resolution
Paragraph 10

10. Adds that differentiation between employees may be justified to meet the different needs and interests of the employees, s~~uch as restricted shares plans that are confined to executives~~eeking to increase their involvement in the capital of the company;

Amendment 98 #

Motion for a resolution
Paragraph 10 a (new)

10a. Considers that ESOPs should also allow employee to use the ESOP account for other equity than that of the current employer, as to mitigate concentration risk, particularly for SMEs;

Amendment 99 #

Motion for a resolution
Paragraph 11

11. Recalls that the decision to join EFP schemes should be based on the informed consent of an employee, fully aware of his or her entitlements, obligations and risks, of the situation of the company and of the taxation effects when joining the scheme and the conditions which apply when he or she leaves the company or the scheme by ensuring the employee has a high level of information and training on the nature and characteristics of the financial participation schemes to which he or she may be eligible;

source: 623.699

2018/09/14 EMPL 25 amendments...

Amendment 1 #

Motion for a resolution
Recital Β

B. whereas the most appropriate EFP model ~~will mostly depend on the size, activity and status of the company, especially if it is listed~~must be carefully chosen by the individual company and its workers taking due account of the specific national taxation rules and sectoral context, and will mostly depend on the size, activity and status of the company, especially if it is listed; whereas it is not appropriate to develop a comprehensive ‘one size fits all’ model for EFP at EU level;

Amendment 10 #

Motion for a resolution
Recital H

H. whereas EFP, especially ESOPs or similar schemes could act as a shock absorber, allowing bonuses or other rewards to be managed in trusts by third parties, spreading the investment risk among the company’s principal shareholders and ensuring that workers have a portfolio of saved sharesbearing in mind that EFP has positive and negative elements to it;

Amendment 11 #

Motion for a resolution
Recital I

I. whereas ~~an ESOP is an example of an effective employee buy-out model for non-listed companies in which an intermediate entity acquires the shares for the~~EFP bears some financial risks, it might as well, act as a shock absorber, allowing bonuses or other rewards and also ensuring that workers have a portfolio of saved shares; whereas ESOPs in particular may be an example of an employee buy-out model for non-listed companies where the priority buy-out process could allow employees, to protecnti~~ng them from additional risk~~ally safeguard their own jobs when there is the possibility of buyouts by other companies;

Amendment 12 #

Motion for a resolution
Recital J

J. whereas measures are therefore needed to protect employees from facing ~~double~~ risks such as losing both their job and the capital invested when their employer is impacted by a crisis, whereas EFP may not be used to reduce the social and employment rights acquired by employees, must not replace normal basic pay, other forms of remuneration or contributions to pension schemes, and must not be a way to transfer risks onto the worker or not to comply with labour law;

Amendment 13 #

Motion for a resolution
Recital K

K. whereas participation in the EFP should remain voluntary for employees, particularly in SMEs while not affecting their ~~mobility~~labour market mobility; their social security or their rights to take collective action; whereas employees should therefore have access at all times to information regarding the economic situation of the company, with the exception of its trade secrets and commercially sensitive information, and be informed of the advantages and disadvantages of each EFP scheme available;

Amendment 14 #

Motion for a resolution
Recital N

N. whereas the current European Social Fund ~~could support frameworks similar to Sociedades Laborales as a supporting active labour market policy throughout Europ~~promotes social entrepreneurship and the social and solidarity economy and the upcoming ESF Plus should continue to do so, and whereas Employee Financial Participation can make a valuable contribution to the development of the social and solidarity economy by, for example, making investment or funding more accessible;;

Amendment 15 #

Motion for a resolution
Recital P

P. whereas EFP could be a complementary tool to the European Globalisation Adjustment Fund, which ~~supports re- skilling and EFP, is an avenue f~~helps people who have lost their jobs as a result of major structural changes due to globalisation or econ~~tinuously training workers, maintaining their employability and reducing the risks of getting laid off~~omic and financial crisis, with respect to re-skilling, training, supporting self-employment, business start-ups and employee takeovers;

Amendment 16 #

Motion for a resolution
Recital Q

Q. whereas EU guidelines for EFP ~~will~~could help Member States develop ~~EFP schemes throughout Europe,~~frameworks for EFP schemes that could potentially lead~~ing~~ to ~~the~~ benefits ~~mentioned above~~both for employers and employees as well as increase public awareness of EFP;

Amendment 17 #

Motion for a resolution
Paragraph 1

1. Calls on the Commission to consider appropriate ~~measure~~recommendations to encourage Member States and companies ~~that show an interest in EFP to develop and offer EFP schem~~, particularly SMEs, to develop and offer EFP schemes which: - protect workers’ income safety, - do not exploit workers in a crisis situation, - do not shift entrepreneurial risk to workers, - guarantee a high level of protection to the workers investments, for the benefit and in the interest of both employees and companies;

Amendment 18 #

Motion for a resolution
Paragraph 2

2. Calls on the Member States to provide ~~incentiv~~non-mandatory incentives, including tax incentives, while not overriding national taxation rules, in line with best practice principles, when promoting employee ownership schemes among companies and employees while supporting the highest standards of social protection for the employees and safeguarding their right to collective action;

Amendment 19 #

Motion for a resolution
Paragraph 2 a (new)

2a. Underlines that EFP has to be embedded in a system of workers’ involvement, for example in company decision making, including through workers’ representatives and that EFP must not be a substitute for fair and decent pay nor an alternative to public pensions or to collectively agreed pension schemes;

Amendment 2 #

Motion for a resolution
Recital B a (new)

Ba. whereas, according to the data from the 2013 European Company Survey1, EFP schemes can vary greatly according to company characteristics, while 62% of European establishments use some form of variable pay, out of which profit sharing accounts for 30%, pay linked to group performance to 25% and share-ownership schemes are used by 5% of establishments; whereas these EFP schemes are more prevalent in the private sector than in the public sector (with some national exceptions) as well as in certain economic sectors, particularly information and communications technology, finance, insurance, and consultancy; whereas larger companies are more likely to use these EFP schemes than small and medium-sized enterprises, and they are also more common in foreign-capital or multinational companies and in companies located in economically2 central or advanced regions; ––––––––––––––––––––––––––––––––– 1. Third European Company Survey. Eurofound 2013 2. Changes in remuneration and reward systems. Eurofound 2016

Amendment 20 #

Motion for a resolution
Paragraph 5 a (new)

5a. Calls on the Commission and the Member States to provide dedicated websites, that would include model profit- sharing agreements for SMEs and VSEs for ease of implementation; information about attached risks and other relevant material; further calls on the Commission and Member States to continue collecting data on the use and spread of financial participation schemes, as well as to examine the impact of financial participation on the functioning of the company, the quality of its work and retention of workers, with the help of the European Foundation for the Improvement of Living and Working Conditions;

Amendment 21 #

Motion for a resolution
Paragraph 6

6. ~~Notes that, to avoid administrative and development costs associated with implementing EFP in corporations and SMEs, there are outsourcing options, but these need to be promoted;~~ Calls on the Member States and the Commission to assist companies which show an interest in EFP with solutions and specific support measures to avoid excessive administrative and development costs associated with implementing EFP in companies and especially SMEs and encouraging the outsourcing operators such as banks and investment funds, to propose simple EFP schemes tailored to suit this type of company, while making sure intermediaries do not take advantage of the smallest companies, or that there are no hidden costs;

Amendment 22 #

Motion for a resolution
Paragraph 8

8. Calls on the Commission and the Member States to engage with social partners, employee ownership organisations and other stakeholders ~~to design the most appropriate EFP schemes,~~at the beginning of the process in order to design the most appropriate EFP frameworks, and when a EFP scheme is considered relevant, to negotiated it on a ‘plant-by-plant’ basis ~~and~~while considering the size and type of company, its workforce and financial situation, but also the national legislation and practices;

Amendment 23 #

Motion for a resolution
Paragraph 11

11. Recalls that the decision to join EFP schemes should be ~~based on~~totally voluntary, meaning no action should be taken against the employees if they decide not to join an EFP scheme and when they agree, their participation should be based on appropriate training and the informed consent of an employee, fully aware of his or her entitlements, obligations and risks, of the situation of the company ~~and~~, of the advantages and disadvantages of each scheme, of the taxation effects when joining the scheme and the conditions which apply when he or she leaves the company or the scheme;

Amendment 24 #

Motion for a resolution
Paragraph 12

12. Considers that EFP ~~benefits should always be complementary to the contractual remuneration and rights~~should not replace or diminish normal basic remuneration or any other form of contribution such as social security contributions, but should be complementary to all social and contractual rights; this being a pre- condition to implementing EFP;

Amendment 25 #

Motion for a resolution
Paragraph 14

14. Calls on the Commission and the Member States to consider the rapid evolution and change of the labour market and the consequent challenges regarding skills, digitalisation, automation ~~and, potentially~~, wealth inequalities, and ~~therefore~~social security cuts; and continuously create new opportunities ~~for the labour force to adapt in order to be financially sustainable and independent~~to support and protect workers as to adapt and develop professionally and personally;

Amendment 3 #

Motion for a resolution
Recital C

C. whereas ESOPs are ~~commonly preferred by employees, because the~~a form of EFP using an intermediate entity ~~used can~~able to exercise voting rights or other forms of governance on behalf of employees, and could be voluntarily chosen by them;

Amendment 4 #

Motion for a resolution
Recital D

D. whereas EFP schemes involving workers in consultation and decision- making have proven3 benefits for both employees and the company including in terms of sustainable governance, transparency, social dialogue, mutual respect between employers and employees, and other aspects such as recruitment, retention, ~~absenteeism, motiva~~motivation, job satisfaction and skills development;, as well as overall performance and profitability; __________________________________ 3 ANNUAL ECONOMIC SURVEY OF EMPLOYEE SHARE OWNERSHIP IN EUROPEAN COUNTRIES 2017 - by MARC MATHIEU EUROPEAN FEDERATION OF EMPLOYEE SHARE OWNERSHIP

Amendment 5 #

Motion for a resolution
Recital D a (new)

Da. whereas employee participation in decision making could improve organisational performance and employees’ quality of working life and whereas it could act as a workplace innovation tool4 to promote a sense of ownership, enhance the flow of information in the company, and improve levels of trust between employers and employees; –––––––––––––––––––––––––––––––––– 4Workplace innovation in European companies. Eurofound. 2016

Amendment 6 #

Motion for a resolution
Recital E

E. whereas EFP schemes c~~ould~~an have positive impacts on the economy of Member States by supporting companies, including SMEs and the job market; whereas workers’ financial participation in their company can contribute to job satisfaction, sense of ownership, mutual respect between employers and employees, overall performance and can help employees find opportunities in their home countries;

Amendment 7 #

Motion for a resolution
Recital F

F. whereas in the context of the development of the Capital Market Union, the EFP canould contribute to ~~overcoming widespread reluctance among retail investors to invest their savings in shares owing to a lack of knowledge about its benefits and risks~~the CMU objectives of inclusive growth and transparency in economic activity; whereas EFP, if coupled with training for participants provided by companies and Member States, could improve financial education amongst EU citizens, potentially reducing their reluctance to invest, and potentially increasing retail investment;

Amendment 8 #

Motion for a resolution
Recital F a (new)

Fa. whereas EFP must go hand-in- hand with a high level of information, training and consultation with staff so that they are fully aware of the functioning of the financial participation schemes that they could join, to enable them to make a fully informed assessment of the potential benefits and risks of these schemes, such as in the case of the company’s bankruptcy;

Amendment 9 #