Council of Ministers: Employment, Labor Policy and Consumer Affairs

Surbhi Bharadwaj

Dear Delegates,

I welcome you the Council of Employment, Labor Policy, and Consumer Affairs at YMGE with great pride and excitement. I hope that the conversations and debate you engage in over the course of the next few days will not only deepen your understanding of the European Union, but also help you learn to look at issues from different viewpoints.

A little bit about me: I am a sophomore at Pauli Murray College at Yale pursuing Economics and Mathematics with a focus on development. Hailing from India, I was born in Scotland and grew up in Delhi, Singapore and Boston. On campus, I am a college aide to the Head of Pauli Murray, a photographer with the Yale Daily News and International Network coordinator for Dwight Hall - Center of Public Service.

Model United Nations was an important part of my high school extracurricular experience. I still remember the butterflies in my stomach from the day of my first conference as a high school sophomore. I was the delegate of Sweden, a country I hadn’t been to, in NATO, an organization I knew little about. However, over the course of the committee, as I debated and discussed issues of national importance with other passionate delegates, the jitters turned into exhilaration as we passed directives and resolutions. MUN has been particularly valuable to me because of the nuanced understanding it has allowed me to gain about pertinent international issues. I hope that over the course of this conference you too will learn to look at issues from a viewpoint that is not your own, to empathize with people you will never meet and in doing so, gain values that will be with you for the rest of your lives.

My most positive MUN experiences were the ones in which I interacted with my directors and gained their insights to improve my own performance and chain of thought during committee. To this extent, I’ll request you all to please feel free to shoot me an email at surbhi.bharadwaj@yale.edu whenever you have any questions or just want to talk! YMGE has a unique conference structure and I understand it can get quite confusing at times! (It will be worth it though, trust me).

The YMGE secretariat has tried make this conference a memorable experience for you from the first pages of this guide to the last sessions of committee. We do hope we succeed in our endeavor. Good luck for your research and I look forward to seeing you all soon!

Surbhi Bharadwaj

Pauli Murray College

Yale University

Class of 2020

Committee History

The Council of the European Union (often called simply "The Council") refers to committees organized according to policy area, composed of government Ministers of EU countries, that meet regularly to 'discuss, amend and adopt laws, and coordinate policies’. The Council aims to negotiate and adopt EU laws and the EU budget, together with the European Parliament. It coordinates member states’ policies, for example in the economic field, develops the common foreign and security policy and concludes international agreements. Ministers representing their states have the authority to bind their governments to decisions taken in the Council.

History

The first manifestation of a policy making union across Europe appeared in 1952 with the European Coal and Steel Community (ECSC). The ECSC consisted of a Special Council of Ministers to balance the view of the Commission. The Council in its present form was established in 1993 with the Maastricht Treaty. The Treaty strengthened the three pillars structure of the EU (which was abandoned in 2009 with the Treaty of Lisbon) and led to the creation of the single European currency in the form of the euro. The Treaty of Maastricht also strengthened the Council’s by integrating governments into the Communities pillar.In 2003 the Treaty of Nice extended the use of qualified majority voting, and introduced the principle of enhanced cooperation between member states. The Treaty of Lisbon in 2009, with the abolition of the pillars system, extended the powers of the Parliament, curtailing those of the Council.

Structure

The Council of the European Union meets in 10 different configurations organized by the policy area of interest, such as the Foreign Affairs Council, Cultural Affairs Council etc. The Employment, Labor and Consumer Affairs Council is one such configuration of the Council of the European Union. The meetings are chaired by the Minister of the country holding the Presidency of the Council, which rotates amongst EU member countries every six months.

The role of the President entails:

Planning and chairing meetings in the Council and its preparatory bodies

Calling the meeting of various configurations of the Council

Facilitating discussions and ensuring rules of procedure are abided by

Representing the Council in relations with the other EU institutions

Hold trilogues with the Council, European Parliament and European Commissions in order to reach agreement on legislative matters

Estonia assumed the Presidency in July 2017, succeeding Malta and Slovakia. Estonia will be succeeded by Bulgaria and Austria in January and July of 2018, respectively. Each three consecutive presidencies de facto constitute a “triple-shared presidency” and coordinate their activities over an 18 month period, ensuring consistency and allowing states to share their experiences. The President of the Council is supposed to be an impartial moderator of debate - “an honest and neutral broker” - and thus, countries holding the presidency are often seen at a disadvantage with respect to pushing forward their own agenda.

Fun fact: UK was supposed to take over the Presidency during the July - December, 2017 term. However, due to the Brexit vote in June, 2016 and UK’s relinquishment of EU responsibilities, Estonia’s presidency was brought forward by 6 months.

Decision making

The Council can decide by simple majority voting (at least 15 members in favour), qualified majority voting or unanimity (all 28 members in favour or abstaining).

In qualified majority voting the size of each member state’s population is also reflected. A qualified majority is reached if the following two conditions are met:

• 55 % of the member states (i.e. 16 members) vote in favour, and

• they represent at least 65 % of the total EU population.

Any blocking minority must include at least four Council members nations representing at least 35 % of the EU population

However, sensitive topics like foreign policy and taxation require unanimous votes.

Procedural and administrative decisions require simple majority.

Employment, Labor Policy and Consumer Affairs Council

The Council of the European Union seeks to improve cooperation amongst EU states on member states' economic policies. The Employment, Labor Policy and Consumer Affairs Council (ELPCA) in particular deals with matters such as increasing employment levels, improving working conditions and workers' rights and protecting consumers' rights. These matters gain a higher level of importance when you consider the nature of the EU economic union, with a common currency and region wide laws governing Eurozone states.

1. Employment

ELPCA is responsible for annually passing guidelines for employment across the EU, where member states can weigh in with their national policies. The Trio Programme of January 2016 - June 2017 emphasized the need to make full use of the potential of the single market, including in the digital sphere and encourage a climate of entrepreneurship and job creation. (I strongly recommend perusing the Trio Programme and noting the actionable points listed, which will help you come up with solutions). Youth unemployment, which is currently alarmingly high across Europe, should be a focal point of discussions.


2. Labor Policy

ELPCA's labor related aims include improving working conditions, social inclusion and gender equality in employment. It also adopts legislation, together with the European Parliament, aimed at improving conditions.

Labor mobility will be an important issue in the light of Brexit and the refugee crisis. Currently 6.9 million EU citizens live and work abroad in another EU country and there are over 1.1 million cross-border workers - who commute to work in a different country every day.

Rapid advancement of technology across the EU has also put workers at risk of losing their livelihoods. ELPCA should consider avenues such as skills building initiatives to retrain employees or an implementation of Universal Basic Income to enable a “post-work” reality.

3. Consumer Affairs

ELPCA seeks to protect consumer rights across the EU by:

1. Ensuring consumers have complete information about the purchases they are making

2. Guaranteeing the safety of goods

3. Providing fast methods for redressal of consumer complaints

4. Modifying the scope and meaning of consumer rights in keeping with advancements in technology

ELPCA has undertaken many product recalls upon consumer complaints. It also seeks to liberalise public services such as public transport and energy, increasing competition and dismantling monopolies to provide more affordable prices to consumers.

Environmental protection, animal rights (preventing abuse of animals in cosmetic testing), privacy and financial inclusion have been some of the Council’s other priorities.

NOTE: 1. Otherwise known as Employment, Social Policy, Health and Consumer Affairs Council (EPSCO), the actual Council includes Health under its mandate. However, for the purposes of our simulation our council will cover all aspects of Employment, Labor and Consumer Affairs only (since Health is a separate Council at YMGE).

2. Don't confuse the Council of the European Union with the European Council (quarterly summits where all EU leaders decide on macro policies and direction) and the Council of Europe (an independent human rights organization.)

Topic History

Terrorism in Europe has historically been linked to nationalist and separatist movements. In the 21st century, however, an increasing number of attacks have taken place under motivation of radical religious ideologies. The most prominent of these has been ISIS’ network, which has perpetrated many attacks in Europe over the last five years.

Terrorism has a strongly negative impact on business in and the economy of the affected region. Research has found that found that terrorist attacks reduce the number of firms and employment in the year following an attack due to reduced business formations and expansions. Furthermore, successful attacks, in comparison to failed attacks, reduce the number of jobs in targeted areas by 5% in the year the attack takes place. This could be attributed in part to the increased perceived risk in investing in an area after a terrorist attack and reduced mobility in the region due to safety concerns. Furthermore, a direct effect of terrorism is to increase uncertainty which has an impact on consumer and investment behavior. Lastly, there is a decrease in tourist arrivals following a terror attack or political instability, which adversely affects the tourism industries of countries.

Another informative graphic over a longer time span.

Thus, ELPCA has an important role to play in protecting economies and workers from the effects of extremism, and encouraging growth and solidarity against radicalism.

The Great Recession

In the aftermath of the 2008 Financial Crisis, ELPCA emphasized the need for “flexicurity in times of crisis and social services.” This entails flexibility of businesses as a tool for maintaining employment and supporting enterprise. It also emphasized the importance of services for active inclusion of people into society. This philosophy has been relevant whilst dealing with issues of security and terrorism, underpinned by the refugee crisis.


Current Situation

The last six years have seen a large increase in terror attacks across Europe. The radical outfit that calls itself the Islamic State of Iraq and Syria (ISIS), has grown rapidly since the start of the Syrian Civil War in 2011 and the subsequent spread of fighting into areas of Iraq. ISIS is unique in its recruiting tactics, through adept use of the internet, the terror outfit has been able to mobilize common individuals from across the world to join its movement.

Attacks across Europe have been perpetrated by organized ISIS operatives (Paris 2015) as well as by lone wolf terrorists, often Europeans (Nice 2016) who have never been involved in on ground combat and were radicalized over the internet. Europe is currently facing rising threats of terrorism and a refugee crisis, both in part consequences of instability in the Middle East and North Africa. Under ELPCA’s mandate, countries have had to review their labor and employment policies. They must seek to tread a fine line such that the employment needs of refugees are accommodated to promote their resettlement, while also preventing the influx of radicals that may accompany any such mass migration. Checks for radicalisation among businesses’ employees, while important, have been tricky to implement.

1. Refugees

The refugee crisis that peaked in 2015, with over one million migrants seeking to cross into Europe, has continued to have ramifications in European politics and economics. There has been growing anti-immigrant rhetoric in Europe, coupled with rising terrorism, often blamed on radicals who smuggle themselves in as refugees. Many Europeans believe that refugees not only overburden social services, but also take away jobs and contribute to an increase crime.

In the past, ELPCA has passed directives stressing the need for a unified framework for the “ asylum, immigration and protection of the rights of third-country nationals.” The directive also touches upon the rights of seasonal migrant workers and on the need to provide safeguards such that their temporary stays do not transform into unauthorized migrations. A more recent 2016 directive has emphasized the need for highly skilled migration. Ministers should consider building upon these directives such that policies serve the twin aim of preventing structural flaws in Europe’s economies by increasing highly skilled labor while also reducing the burden on social services to provide for unemployed or underemployed refugees. The 2017 Annual Growth Survey and Joint Employment report further noted that the

“impact of the high inflows of refugees on Member States' employment and social protection systems has been asymmetric and should be monitored. Prompt and effective integration of the newly arrived third country nationals legally residing in the EU into society and the labour market is important for the cohesion and prosperity of the EU.”

2. Youth unemployment and radicalisation

High unemployment amongst youth has often been cited as a cause for increased radicalization. With unemployment in Europe at 11.5 percent overall and 23.7 percent among youth, this is a pertinent threat facing the Union. ELPCA has emphasized the need to curb youth unemployment in the past and states should seek to pursue these initiatives while also approaching them from a national security and terrorism dimension.

3. Cyber terrorism

Radical outfits and enemy states have been increasingly making use of cyber technology to advance their aims. For ISIS this has come in the form of remotely radicalizing disenchanted youth, and motivating them to carry out acts of terror in their own countries, such as the incidents in Nice in July 2016. The recent Petya cyberattack, in which ransomware infected computers across Europe bringing down public systems in several countries including the NHS in the UK and German state railways, further exemplifies the growing threat of cyber terrorism. Terrorists may take entire public works systems, from communications to road networks and energy systems, and misuse these resources at a massive scale.

ELPCA needs to protect European employees and consumers alike by urging businesses to abide by stricter guidelines regarding cybersecurity breaches and protections.

Again, these are three of a multitude of issues that accompany considerations of national security and terrorism across Europe. Ministers of ELPCA should also be prepared to tackle problems such as the role of poverty in radicalization, protection of employees against workplace attacks, identifying signs of radicalization without infringing on citizens’ rights to name a few. Thinking on your feet and formulating innovative solutions will be prized traits of good delegates.

Bloc Positions

As representatives of your states, your stance in committee must be guided by your country’s priorities on various issues. As Ministers of Employment, Labor Policy and Consumer Affairs, your ideology will be founded on the principles espoused by the incumbent political party wielding the most power in your government.

At the same time, it is vital to keep in mind regional dynamics and intra-EU alliances as you negotiate in committee to reach consensus. For example - “France, Italy, Greece, Spain, and Portugal face similar challenges: migration, security, proximity of an unstable neighborhood – the issues that justify enhanced cooperation between them.” Furthermore, consider the relations of the Visegrad group (an alliance of four Central European states: Czech Republic, Hungary, Poland and Slovakia), the Craiova group (composed of Romania, Bulgaria and Serbia) and NORDEFCO (Nordic Defense Cooperation composed of Denmark, Finland, Iceland, Norway, and Sweden), to name a few. I strongly recommend this article that visualizes alliances within Europe.

The EU is unprecedented in the level of economic and political cooperation it entails between its member states. Thus, it is vital that you cooperate and negotiate with all member states, whether as blocs or individually, to reach consensus in committee.

Suggestions for Further Research

The structure of the Council of the European Union is quite complicated and I strongly recommend spending some time understanding the mandate and jurisdiction of the involved institutions. All the relevant hyperlinks are in the Committee History section of this guide.

Then consider the concerns and priorities of the Employment, Labor Policy and Consumer Affairs Council. From the point of view of your country, what agenda will you seek to pursue at the Council? I recommend qualitatively grasping the power dynamics at play, and then using data to corroborate your claims and support your position in committee.

If your country is part of a Trio Presidency, it may be fruitful to look at some collective reports outlining the aim of these collective presidencies (such as this one).

Lastly, consider the ramifications of national security threats on ELPCA’s priorities. What are the main issues you anticipate and what are some solutions to these problems? This is your chance to get creative - innovative solutions are welcome and even encouraged. You could also look at how other countries in history have handled similar problems (but of course you will have to modify the stance to suit the EU context).

You may find some of these publications helpful. This guide outlines the Council’s rules of procedure. You can also find EU publications and EU statistics. I strongly recommend looking through agendas and minutes of some former EPSCO meetings here. You may also seek some inspiration in the Maltese National Program and this future-looking report on the EU job scenario.

As I mentioned earlier, the ELPCA is known as Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) in actuality. The real-world Council includes Health under its mandate. However, for the purposes of our simulation ELPCA will cover all aspects of Employment, Labor and Consumer Affairs only (since Health is a separate Council at YMGE). Also, when you are researching, it’ll be better to use EPSCO as a keyword in your searches (since ELPCA is something I made up while writing this guide).

I have inserted a lot of links throughout this guide but don’t be intimidated by them and by no means feel compelled to peruse each of them word for word. These are just resources for research that I personally found helpful, whether you use them is completely up to you. I recommend using these links to gain a basic grasp of the issue and then diving into your portfolio’s specific concerns yourself. I will appreciate new information you present to the committee through self-motivated research!

Lastly, feel free to email me at surbhi.bharadwaj@yale.edu if you run into any issues or have any questions (committee or non-committee related). I look forward to hearing from you.