Cooperation between SMEs and trade unions in Europe on ... - ETUC

ETUC – UE APME: <strong>Cooperation</strong> betw een <strong>SMEs</strong> <strong>and</strong> Trade Unio ns <strong>in</strong> <strong>Europe</strong> 14
“There is a clear divide <strong>between</strong> large enterprises <strong>and</strong> <strong>SMEs</strong>, both <strong>in</strong> Western <strong>Europe</strong> <strong>and</strong> – <strong>in</strong>
particular – <strong>in</strong> the new member states. Large enterprises with more resources <strong>and</strong> <strong>in</strong>ternal
flexibility are <strong>in</strong> general better equipped to fend off sudden external shocks, while <strong>SMEs</strong> are
more likely to implement redundancies.” 11
While large companies – often backed by active <strong>in</strong>volvement of social partners, workers
<strong>in</strong>terest representation <strong>and</strong> collective agreements <strong>between</strong> social partners – are able to
respond to sudden crisis situations by work organisation measures <strong>and</strong> negotiated ways
of manag<strong>in</strong>g the situation (though even <strong>in</strong> these cases dismissals take place, mostly
<strong>in</strong>volv<strong>in</strong>g those <strong>in</strong> temporary <strong>and</strong>/or agency employment), the situation is much more
difficult at <strong>SMEs</strong>, which do not have the resources, <strong>in</strong>stitutional or otherwise, to cushion
the effects of the crisis. This is quite exemplary illustrated by the massive utilization of
short-work schemes as a major respond <strong>in</strong> order to avoid permanent lay-offs <strong>in</strong>
countries were this <strong>in</strong>strument exists (e.g. German “Kurzarbeit”, French “chômage
partiel” or the F<strong>in</strong>nish “temporary unemployment” schemes” ). S<strong>in</strong>ce these schemes are
not applicable for small enterprises, <strong>in</strong> the case of <strong>SMEs</strong> <strong>and</strong> suppliers, contractors or
service providers, dismissals were, from the beg<strong>in</strong>n<strong>in</strong>g, the major <strong>in</strong>strument of
adjustment.
A further feature of particularly difficulties of <strong>SMEs</strong> <strong>in</strong> regard to cop<strong>in</strong>g with the effects
of the f<strong>in</strong>ancially driven crisis is money: Though with significant country-specific
variations throughout <strong>Europe</strong>, <strong>SMEs</strong> suffer from the contraction of the f<strong>in</strong>ancial market
<strong>and</strong> <strong>in</strong> particular from more cautious banks <strong>and</strong> ris<strong>in</strong>g <strong>in</strong>terest rates. At the same time
small companies don’t have the strength of large companies to negotiate favourable
credit terms with banks <strong>and</strong> suppliers, so they are not able to cut prices profitably.
Aga<strong>in</strong>st this a grow<strong>in</strong>g number of EU countries have established f<strong>in</strong>ancial programmes
<strong>in</strong> particularly target<strong>in</strong>g the SME sector <strong>and</strong> improve their access to f<strong>in</strong>ance. This also is
supported by new EU wide framework on temporary state aid concluded <strong>in</strong> December
2008.
An <strong>in</strong>itial screen<strong>in</strong>g of SME specific measures <strong>in</strong>cluded <strong>in</strong> the national recovery plans
carried out <strong>in</strong> February 2009 by UEAPME is <strong>in</strong>terest<strong>in</strong>g <strong>in</strong> this context: The evaluation
reveals a strik<strong>in</strong>g bias towards f<strong>in</strong>ancial measures such as <strong>in</strong>creased volumes of
guarantees for credits <strong>and</strong> loans, additional loans <strong>and</strong> credits, new f<strong>in</strong>anc<strong>in</strong>g
<strong>in</strong>struments, cut of employers’ social contributions, moratoriums for the repayment of
loans etc. 12
In contrast to this, deal<strong>in</strong>g with the negative effects on employment, cushion<strong>in</strong>g the
social effects both on employees made redundant <strong>and</strong> employers (aga<strong>in</strong>st the
background of demographic trends <strong>and</strong> the scarcity of qualified labour <strong>in</strong> many
occupational fields) are hardly to discover <strong>in</strong> this context.
In particular aga<strong>in</strong>st this bias towards larger companies with regard to measures of
cushion<strong>in</strong>g the social costs of deal<strong>in</strong>g with the current economic crisis it is quite
astonish<strong>in</strong>g that also <strong>in</strong> the current economic situation, <strong>SMEs</strong> seem to be more firm <strong>in</strong>
terms of employment stability than larger companies as the follow<strong>in</strong>g graph on
employment expectations as of February 2009 illustrates.
11
B. Galgoczi et. al. 2009: Plant level responses to the economic crisis <strong>in</strong> <strong>Europe</strong>, ETUI Brussels, Work<strong>in</strong>g
Paper 2009.01, p. 31
12
UEAPME 2009: National Recovery plans from an SME perspective. Brussels, 13 February.