Europe
Much of the regulation and burden that retailers face originates not in Westminster but Brussels therefore it is important the UK small retail sector is effectively represented at EU level.
ACS works closely with two partners to ensure that ACS is an effective lobby group at EU level.
UGAL - Union of groups of independent retailers of Europe – this organisation which is part of EuroCommerce represents the interests of independent retailers drawing on a membership taken from all the EU member states.
SmallbusinessEurope – ACS is a supporter of smallbusinessEurope, the organisation exists to make the voice of the UK business community heard in Brussels.
ACS is plugged into the voice of independent retailers across Europe and is playing its full part in the voice of the UK small business community
Specific EU issues that ACS is working on currently are:
Working Time Directive
In 1993 the UK negotiated an opt-out to the Working Time Directive. The Directive limits the average number of hours worked over a year to 48 per week. The UK’s opt out in recent negotiations would have meant that working weeks can average 60 hours per week, or 65 with inactive on call working, down from the current 78 hours. However the European Parliament has voted to scrap the opt-out. The vote could see the UK implementing the 48 hour time limits within three years. MEPs want to limit working times due to health and safety for employers, as well as maintaining a healthy work/life balance.
Now the issue will be subject of intense talks between EU governments and the European Parliament, with the European Commission as referee. ACS is in discussion with European Parliamentarians to highlight the message that this restriction is potentially damaging to the industry.
Competition issues
Following the UK level competition commission grocery market investigation in the UK, ACS, along with members of a cross cutting pan European group that work on competition issues, have been campaigning for food competition issues to be raised at EU level.
Caroline Lucas (Green MEP for South East England) along with several other MEPs submitted a written declaration to the European Parliament in October 2007 calling for an investigation into the abuse of power by large supermarkets operating in the EU. It called for;
- The Commission’s Competition Directorate to investigate the impacts that the EU supermarket sector is having on small businesses, suppliers, workers and consumers and in particular, to assess any abuses of buying power which may follow from supermarket concentration;
- The Commission to propose appropriate measures, including regulation, to protect consumers, workers and producers from any abuse of dominant position or negative impacts identified in the course of this investigation;
- The Parliament’s President to forward this declaration, together with the names of the signatories, to the Commission, the Council and the parliaments of the Member States.
It successfully passed on January 31st 2008 gaining over 400 votes. Now that it has passed it becomes European Parliament policy, which takes the form of a non-legislative report that the Commission must respond to. Whilst having no legislative value, the Declarations are founded on Parliamentary legitimacy which may well convince the Commission to come up with proposals on the matter. Through demanding a response it raises the profile of the issue and shows the Commission that there would be parliamentary support if it did initiate the policy.
The European Commission has since published a response, however it was non-committal in the instigation of an EU wide competition investigation. ACS will continue to campaign for a competition investigation at European level.
Small Business Act
In October 2007 the European Commission underlined the need to fully unlock the growth and jobs potential of Small and Medium sized Enterprises (SMEs) and make full use of their innovative capacities. The preparation of a Small Business Act for Europe (SBA) was one of the key measures announced. At the beginning of 2008, the Commission launched a public consultation on the content of the Small Business Act. ACS fed into this consultation and as of June 2008 the SBA has been adopted.
The SBA reflects the Commission’s political will to recognise the central role of SMEs in the EU economy and for the first time puts into place a comprehensive SME policy framework for the EU and its Member States. It aims to improve the overall approach to entrepreneurship, to irreversibly anchor the “Think Small First” principle in policy making, from regulation to public service, and to promote SMEs’ growth by helping them tackle the remaining problems which hamper their development. The Small Business Act for Europe applies to all companies which are independent and have fewer than 250 employees: 99% of all European businesses.
What is the Small Business Act for Europe?
- A set of 10 principles which should guide the conception and implementation of policies both at EU and national level. This is essential to create a level playing field for SMEs throughout the EU and improve the administrative and legal environment to allow these enterprises to release their full potential to create jobs and growth;
- An ambitious package of concrete and far reaching new measures including four legislative proposals which translate these principles into action both at EU and member state level;
- The Act is designed to be adopted by the European Council to ensure the full political commitment of both the Commission and the Member States together with regular monitoring of its implementation.
However, in EU law Member State’s national law supersedes European law on SMEs. This means that the SBA is not binding because the national and local environments in which SMEs operate are very different and so is the nature of SMEs themselves.
Age Discrimination
The European Court of Justice (ECJ) has heard a case to decide if it is legal for private UK firms to retire people on or after their 65th birthday as a matter of course. Equality regulations implemented in 2006 prevent employers from treating older workers less favourably than younger colleagues in most situations, such as recruiting and training staff. However, the legislation allows employers to set a default mandatory retirement age of 65. Campaigners in the UK, including Age Concern’s retirement arm, Heyday, who first brought the case to the High Court, say those provisions violate the European directive and must be scrapped. The outcome of the case could have Europe-wide implications if the law is changed, meaning that employees over 65 who are forced to retire against their wishes may now be able to start claims in the employment tribunal.
We continue to await a ruling from the ECJ.