THE European Commission is to press for tougher worker protection laws in the light of French car manufacturer Renault's controversial decision to close a profitable factory in Belgium with the loss of 3,100 jobs.
Protests grew yesterday with a rare personal intervention by the Belgian king, and the first public criticism by French President Mr Jacques Chirac and Prime Minister Mr Alain Juppe of Renault's handling of the closure, which has provoked demonstrations in Belgium.
European Union commissioners last night instructed Mr Padraig Flynn, social affairs commissioner, to examine whether EU laws on worker consultation needed to be strengthened, and to produce recommendations on strengthening workers' rights.
The Commission's action could antagonise Britain, which opposes further EU legislation in social matters, but it reflects concern about a popular backlash over the effects of EU policies after Renault's decision, which Mr Jacques Santer, Commission president, has called a "grave blow to confidence in Europe".
The Commission last night issued an unprecedented opinion that Renault had failed to respect two EU directives on works councils and collective redundancies by failing to warn workers at Vilvorde before the announcement.
Renault could be fined 20 million Belgian francs (£363,100) under Belgian law if it were found to have breached the rules.
Separately, a Belgian federal ministry confirmed it had can[celled an order for 150 Renault vehicles. Belgian newspapers have called for a consumer boycott against Renault.
In Paris, Mr Chirac let it be known he was "shocked" by the way the closure had been announced, and Mr Juppe summoned Mr Louis Schweitzer, Renault chairman, and another executive and demanded they begin consultations with interested parties, including the Belgian government, "without delay".
