consequences on employment the point of view of the european contractors uniep policy day brussels,...
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Consequences on employment The point of view of the European Contractors
UNIEP Policy Day Brussels, 12th November
12th November 2012Riccardo Viaggi
Secretary General
European Builders ConfederationThe Voice of Construction Crafts and SMEs in Europe
European Builders ConfederationThe Voice of Construction Crafts and SMEs in Europe
Established in 1990
22 members & partners - 17 MS
Exclusively SMEs and crafts
2 millions construction crafts and SMEs
Takes part in sectoral social dialogue
The EU Construction SectorThe Voice of Construction Crafts and SMEs in Europe
3 million enterprises
92% < 10 employees
80% of the turnover67% of the employment
The European Situation
Last Eurostat unemployment figures 11.4% for the Eurozone, 10.5% for the EU
Steady decrease of employment rates – from 17 to 14 million workers
Loss of production and output – from since 2008
No real forecast to come out of the crisis – see attached sheet
UEAPME SME Barometer 2012: 50,000 craftsmen covering 4 sectors. The crisis had a huge impact, particularly on micro enterprises
Some countries are avoiding the crisis (2.2% unemployment in Switzerland) and Poland is starting to see it only now.
SPAIN 1/2
800,000 JOBS LOST
Companies liquidated
5 million unemployed people since 2008.
9% fall of the activity still foreseen for 2012.
Job losses is a continuous phenomenon,
construction sector is the second most hit
SPAIN 2/2
Huge budgeary cuts will put an additional burden on the sector and impede the activity from developing.
Important payment of public debts for works undertaken BUT public works STOPPED
No funding no activity disappearance of companies 150,000 additional job losses foreseen
Little hope is in the private investment, and the move the Spanish government has made to implement the German model of professionnal training, proven to be job-creating.
FRANCE 1/2
Nearly 11% of unemployment in France according to Eurostat.
Construction sector = 7% of GDP, 350,000 companies, 1.1 million of workers, 17 190 job losses in 2011, and a prediction of 35,000 jobs lost in 2012.
Since 2008, 18% of job losses occured in the construction sector. The Modernization of Economy law brought problems with the
decrease of fiscal bonuses and positive fiscal regimes (reduced VAT)
The « Gallois report » of November 2012 - raise in property tax Stop construction projects when the sector is already suffering
UNITED KINGDOM 1/2
First sector suffering from company failures, and second in terms of job losses for 2012.
Between 2007 and 2011, 281,000 jobs lost, 24,000 only for the first semester 2011. Moreover, salaries are falling as well.
Public demand is 40% of activity, but will suffer huge budgetary cuts in 2012
UK Public procurement rules are NOT SME-minded
According to a study lead by our UK member, the Federation of Master Builders, banks are not helping with tight credit
UNITED KINGDOM 2/2
The government has not decided yet to make investment for training a priority, but associations and many actors of the construction sector are pushing in that sense.
The industry is losing competences and credibility
No minimum legal requirement to become contractor
The European solutions The action of public power
SOLUTIONS : improve competitiveness increase renovation/retrofitting activities
decrease administrative burden and red tape
All resumed in the Commission Strategy for sustainable competitiveness of the construction sector
and its enterprises of 31st July 2012
EBC welcomes it and is ready to contribute in favour of crafts and SMEs
The European solutions The action of EBC
NEED TO BE READY AFTER THE CRISIS
- Invest in competences and face demographic challenges - Under Construction III project
- Traning and mobility - EuroApprenticeship project)
- ATTRACTION OF YOUNG WORKERS IS A PRIORITY !
- Cooperate in European Sectoral Social Dialogue- Which must be more representative and active
The Voice of Construction Crafts and SMEs in Europe
Riccardo ViaggiSecretary General EBC