On Monday 09 September 2024, EU Commissioner for industry Thierry Breton gathered automotive sector stakeholders in the “Route 2035” Group, that has been created to monitor the transition towards zero-emission vehicles. Representing workers across the wider automotive sector, industriAll Europe stressed the need for an urgent industrial plan for the sector and that the objective of the Route 2035 group must be to keep and create quality jobs in Europe’s automotive industry and the related supply chains while transitioning towards zero emissions.
In light of the deep social crisis in the sector, industriAll Europe has joined forces with other stakeholders to demand an industrial strategy for the sector, while warning that workers must not pay for the consequences of corporate or political strategic mistakes and corporate greed. Notably, industriAll Europe, the industry and Automotive Regions have demanded that the “Route 2035” work better addresses quality employment, demographic changes, and social dialogue to better monitor the social aspects of the transition in the auto sector.
“The automotive industry is of vital importance for Europe and its industrial base. This is particularly true in regions highly dependant on the automotive and its supply chains. Hence the importance of gathering industry, regions and social partners in a collective demand for a comprehensive industrial strategy and just transition for the sector in Europe. We see the paper we have submitted to the Route 2035 group as an important contribution to fulfill that objective, which is also in line with this week’s Draghi report on the EU competitiveness,” stated Judith Kirton-Darling industriAll Europe General Secretary.
Unfortunately, what is currently happening in the sector around Europe is miles away from delivering a just transition. Cost-cutting plans, restructuring and job losses are creating a climate of anger and anxiety among the workforce. Their perception is stark: workers and their families are now paying the consequences of inconsistent political and corporate decisions, in a context of unprecedented financial profits (especially by OEMs), historical dividends and CEO bonuses, while workers have been forced to make huge efforts to improve productivity notably in terms of flexibility and working time.
“This industry will have no future in Europe if it’s based on increasing social inequalities and fuelling corporate greed – this is an asset-stripping strategy. We need investment but with social conditionalities to guarantee quality jobs, training for the workforce and social dialogue, starting with the respect of existing rights and agreements,” stressed Judith Kirton-Darling.
Furthermore, recent restructuring announcements made by OEMs and leading suppliers risk further fuelling scepticism about the seriousness of the EU’s Green Deal Industrial Plan, as sites and companies producing electric vehicles, batteries and critical components are being hit. Losing production sites that have pioneered electric vehicle manufacturing in Europe – such as Audi (Forest) – sends a terrible message to a workforce across Europe that has been assured by politicians that good jobs will stem from electrification.
“Losing industrial jobs in parts of the industry that are fully in line with Europe’s climate objectives and where workers have been fully trained in state-of-the-art net-zero technologies is indefensible, especially when politicians are waxing lyrical about building Europe’s clean tech manufacturing. The EU must treat existing plants that are in line with its green objectives as strategic assets. After all building a European domestic battery industry is much less relevant if final assembly plants are hit by a wave of deindustrialisation,” stressed Judith Kirton-Darling.
The Draghi report, published on Monday (9 September) hours before the “Route 2035” meeting, has reiterated the importance of having a public investment plan for a successful transition. For industriAll Europe, a public investment agenda must come with a series of conditionalities.
“In the current geopolitical context, we need to target taxpayers’ money on companies that commit to invest and create quality jobs in Europe, while respecting the highest social and environmental standards along their supply chains. Public money must create benefits for the whole society not hijacked to secure the profits of the few,” said Judith Kirton-Darling.
IndustriAll Europe will continue to fight for an industrial policy and a just transition that guarantees that no worker or region is left behind. With this objective, on the 16 September, we are co-organising a demonstration in the streets of Brussels where thousands of workers from many European countries will march to defend Europe’s industries and the millions of good unionised jobs they generate – because “It’s Our Industry”!