Blaming labour protections for factory closures is not industrial policy — it is avoidance dressed as reform.

Europe's industrial base is under enormous strain. From chemicals to metals to automotive components, companies are scaling back production or shutting down entirely as they grapple with the same structural pressures. Yet instead of facing these real challenges head-on, a worrying narrative has taken hold in some capitals and employer circles: that workers' rights are the problem, and deregulation — hidden under a banner of simplification — is the cure. When European leaders meet at Alden Biesen castle on 12 February for an informal summit dedicated to "competitiveness", they should reject these siren calls.

Recent proposals from parts of European industry and employer organisations aim to roll back legislation on pay transparency, information and consultation rights, protection for precarious workers, trainees' protections, and even the improved functioning of European Works Councils. But this agenda deliberately avoids the real issues — and risks making the crisis even worse.

The deregulation agenda misses the point entirely

Let us be crystal clear: no factory is closing because employees have the right to know how their pay is structured because works councils must be consulted, or because precarious workers deserve basic protections.

This move is opportunistic and dangerously out of touch with reality. Europe's industries are collapsing under the weight of unaffordable energy prices, weak demand and unfair trade — not because trainees have rights or because gender pay transparency exists. These rights make workplaces more predictable, more stable and more innovative. Without them, workers will continue to lose their share of economic gains while companies maximise their profits.

A race to the bottom makes us more fragile, not more competitive. Europe's path to competitiveness lies in strategic investment in people and technology — not in lowering rights and standards. Deregulation of rights undermines productivity, erodes skills and leaves workers and businesses vulnerable. It kills trust and fractures our societies at a time when we need a united sense of purpose and coordinated industrial responses.
Consider the real structural challenges facing European industry — and how deregulation addresses none of them.

High energy prices are the number one pressure point for energy-intensive sectors. This challenge is existential. European producers face energy prices far higher than in the United States or parts of Asia. This is why chemical, steel and fertiliser plants have curtailed output or gone offline — not because workers have consultation rights. Deregulating labour will not deliver the cheaper, abundant clean electricity we urgently need, nor will it accelerate grid expansion, renewable deployment or hydrogen infrastructure. Europe needs a continent-wide clean energy acceleration plan, not a rollback of basic social protections.

Europe's prolonged period of weak internal demand is dragging down the industrial economy. When consumers postpone purchases and public investment is constrained, factories slow down — regardless of how flexible or unprotected their workers may be. 

Cutting pay transparency or weakening consultation rights will not magically boost orders. Worse, the erosion of protections fuels insecurity, encouraging households to save instead of spend. It is economically irrational to weaken workers' rights at a time when Europe desperately needs to stimulate internal demand. Boosting collective bargaining and investment is vital, including in public services such as childcare, housing, health, transport and education — all of which strengthen demand and competitiveness.

European industries also face intense pressure from massive state-subsidised overcapacities elsewhere, especially in chemicals, solar, steel, cars and batteries. Lowering labour standards will not counteract international dumping or structural price distortions. Europe must instead focus on defending its industrial base and investing strategically to remain resilient under global pressure. It needs robust trade defence instruments, coordinated industrial strategy and targeted support for strategic sectors — not a dismantling of rights.

What makes the current deregulation push especially dangerous is its timing. At the precise moment when workers and employers need social dialogue more than ever to navigate restructuring and decarbonisation, some employer groups are trying to weaken the very tools that allow industries to manage change responsibly.

This is not abstract. Information and consultation rights are critical for orderly restructuring, early anticipation of change and avoiding unnecessary job losses. Pay transparency is essential for fairness and retention. Protections for trainees and precarious workers support skills development and workforce stability — indispensable elements in a green and digital transition.

The same is true from a competitiveness perspective: deregulation weakens skills, erodes job quality and destroys the very foundations of Europe's social and industrial model. Social standards are not red tape — they are the basis of trust, investment certainty, productivity and innovation.
But this deregulation drive is not just an attack on worker protections — it is a direct threat to democratic stability. By weakening rules that safeguard fairness and rushing major rollbacks through without proper debate, policymakers risk eroding public trust. This hollowing-out of democratic checks and balances creates the perfect opening for far-right forces that thrive on anger, insecurity and disillusionment. Protecting strong, transparent rule-making is therefore essential — not only for workers and communities, but for safeguarding democracy itself.

A credible industrial strategy must focus on what matters

Instead of relying on deregulation dogma, national governments should commit to a strategy grounded in the real needs of Europe's industrial base — one centred on investment, fair competition and strong social conditions. IndustriAll Europe's six priority demands from United to Fight for Good Jobs outline exactly such a path:

1. First, Europe needs coordinated public and private investment to build green, resilient, socially responsible industrial capacity — investment, not deregulation, is the key to restoring competitiveness.
2. Second, all public support, including procurement, must come with social and local-content conditions to ensure investment strengthens European sites and prevents offshoring.
3. Third, effective job-saving tools, like SURE-style mechanisms, are essential in volatile markets because worker security is a prerequisite for stability and long-term planning.
4. Fourth, industrial transformation must include concrete planning, training and social dialogue — no worker or region should be left behind as Europe decarbonises and digitalises.
5. Fifth, Europe must act decisively against dumping and global overcapacity because a competitive Europe requires a level global playing field grounded in fair labour standards.
6. Sixth, industry needs predictable access to clean, affordable energy to remain viable — this is the cornerstone of long-term competitiveness.
   These priorities form the backbone of a credible industrial strategy — one that strengthens, rather than sacrifices, Europe's workers and industrial regions.

Europe's industrial crisis is real, and it demands decisive action. But weakening workers' rights is not action — it is avoidance. It is a political shortcut masquerading as industrial policy.

IndustriAll Europe calls on EU leaders to reject the siren calls from certain employers and turn their attention back to saving our industries and our jobs. Deregulation is a trap, while investment in people, technology and quality jobs is the true foundation of a competitive European economy.
Europe will not win a race to the bottom. It will win by doubling down on what has always made its industries strong: skilled workers, high standards, social partnership and strategic investment. Workers deserve nothing less — and Europe's industrial future depends on it.