The Strategic Dialogue addressed the issue of regulatory burdens and the lack of harmonisation within the current internal market directives on defence procurement and intra-EU transfers. It focused on the possibilities for simplification, most notably in the EU defence industrial programmes. The dialogue aimed at overcoming obstacles in the defence ramp-up outlined in the White Paper – Readiness 2030.

Representing industriAll Europe at the Strategic Dialogue, Deputy General Secretary Isabelle Barthès said: “We need to avoid that the defence ramp-up results mainly in more acquisitions from third countries. Instead, we need to invest in the European Defence and Technological Industrial Base (EDTIB). Our strength depends on a strong European defence industry with quality jobs and skilled workers.

“The EDTIB also relies on a strong European industry. The steel and basic metals sectors provide raw materials and unfinished products for defence. And the defence sector equally needs the chemical sector and semiconductors. All these sectors are undergoing a massive restructuring crisis, which must be urgently countered with similar support measures from the Commission. Simply throwing money at defence will not solve our problems.

"Enabling faster procurements of defence products is understandable in the current context but we also have to ensure fair procurement of defence products. This is why there should be a return for the taxpayer in the form of public funds tied with social conditionalities such as quality jobs and/or training. Social conditionality also brings returns for companies in the form of availability of skilled workforce.

"At the same time, a strong safeguarding of budgets aimed at social, green or digital objectives from the relocation to defence is an absolute must if we want to avoid a massive social backlash”, added Isabelle Barthès. 

IndustriAll Europe’s Defence Network met on 15 May ahead of the Strategic Dialogue, with around 70 participants from across Europe. The trade union representatives reported that access to finance is not a problem for big companies, but it is for SMEs in the supply chain, which large companies are fully dependent on, need support and a tailored approach.

National trade unions also reported that the ramp-up has so far resulted in increased pressure on workers who have to work in more teams, in more shifts, and, in particular, night shifts, all of which increase the dangers of accidents. Moreover, they reported an increase in the hiring of temporary agency workers. Defence is different from all other sectors, as the danger of accidents is much higher. Temporary agency workers are provided with limited training and are less acquainted with the health and safety rules, thus increasing the risk of incidents for them and for others.

Isabelle Barthès demanded an urgent increase in quality jobs and hirings. "The solution is to hire more workers by offering attractive jobs, not to put in exemptions on working time. Hirings need to happen now, as new workers need a lot of on-the-job training since defence is a knowledge-incentive industry and people are ready only in a few years. Meanwhile, there is more pressure on experienced workers who must train the newcomers in addition to doing their own work.

“The EDTIB depends on workers, and limiting workers’ rights through simplification will only reduce the attractiveness of the sector which is already suffering due to decades of under-investment.”

As the EU and UK are discussing ‘Resetting’ their relations, defence workers on both sides of the Channel never stopped seeing themselves as part of the same EDTIB, as defence companies are so very interconnected. If the new phase is to succeed, it should deliver for workers as well with good quality jobs, standards, and Just Transition.