MEPs favour employment security over job guarantees

mechanical_isp_R_Kyllo.jpg

An own-initiative report on flexicurity and labour law adopted by the European Parliament is mildly critical of the Commission’s Communication on the matter, asking for indefinite employment contracts to be the norm.

The report defines flexicurity as “combining flexibility and security in the job market in a way that helps increase both productivity and the quality of jobs by guaranteeing security, while at the same time allowing firms the flexibility needed to create jobs in response to the changing needs of the market”.

It goes on to say: “If labour law is to meet the challenges of the 21st century, it must focus to a large extent on employment security throughout a worker’s life rather than protecting particular jobs.” 

  • International consistency

The report stresses the importance of achieving “a degree of consistency” in the field of labour law. It suggests that this may be achieved though collective agreements and the “open method” of co-ordination.

  • Workers’ mobility

MEPs call on member states to remove the restrictions on access to their labour markets, so as to improve worker mobility within the EU. 

  • Duration of contracts 

MEPS called for EU labour law to recognise employment contracts of an indefinite duration as the general form of employment. The report adopted says that contractual arrangements should be flexible and secure, adding that any non-standard forms of work, such as fixed-term contracts, temporary contracts obtained through employment agencies, recurring freelance contracts and project contracts, should go hand-in-hand with support for workers who find themselves in transit between jobs. 

  • Working time 

MEPs called for working-time arrangements to be “sufficiently flexible” to meet the needs of employers and employees and to enable people to better balance work and family life, as well as to safeguard competitiveness and improve the employment situation in Europe.

  • Administrative burden

The report stresses the need for simplifying administrative procedures for companies, and especially for new, small- and medium-sized enterprises (SME). “Excessive administrative burdens” could deter employers from taking on new workers even during times of economic growth, it notes. 

  • Enforcement

MEPs say that, in order to combat the exploitation of undocumented workers, labour law should be better enforced and legal employment should be made easier. The report expresses regret that existing EU rules are not properly implemented or enforced. 

Read more with Euractiv

Subscribe now to our newsletter EU Elections Decoded

MEP Ole Christensen (PSE, Denmark), said: "We managed not only to turn around a very right-wing initial Committee report but in fact to produce an entirely different text that strongly disagrees with the Commission's Green Paper on Labour Law. Importantly, we secured the introduction of a core of rights regardless of the type of contract concerned." 

Irish MEP Mary Lou McDonald (GUE/NGL) said: "The resolution represents a step back from existing Parliament positions, most recently expressed in the Schröder Report [on the posting of workers]. The fact is that the Commission has not enforced the Directive, and many member states ignore its provisions. These failures should not be sidestepped in arguments about proportionality or protectionism. When Parliament adopted the Services Directive, those of us who were concerned about its impact on workers' rights were assured that the proper enforcement of the Posting of Workers Directive would deal with our concerns. That has not happened, and the Commission has failed to enforce this Directive properly. This leaves many workers exposed, without the minimum standards necessary to avoid exploitation and abuse."  

BusinessEurope President Ernest-Antoine Seillière said: "It is satisfactory for companies that the European Parliament wants to reform labour law. This will influence the flexicurity debate positively." He added: "It is important to anchor further debate on labour law reform in the wider discussion on how to achieve a better balance between flexibility and security for workers. Efforts have to be concentrated on how to create new jobs, facilitate transition between jobs and not on how to artificially preserve existing ones. Companies need both a variety of contractual arrangements and improved flexibility in traditional standard contracts. Social partners have to engage at national level to find win-win compromises for both companies and workers."  

Fintan Farrell, director of the European Anti-Poverty Network, declared: "The security we need cannot be summarised by secured transitions between jobs. What we need instead are policies implementing an inclusive labour market, contributing to the fight against in-work poverty and discrimination, and allowing access for all to quality sustainable employment. These policies should go along with high levels of social protection and respect of fundamental rights - notably human dignity, the right to engage in work and the right to social assistance. No real security can be built without progressing on the road to ambitious social standards, including adequate minimum income distinct from employment status."  

On 23 November 2006 the Commission published a Green Paper entitled "Modernising labour law to meet the challenges of the 21st century". The publication was followed by a public consultation, with a view to the publication of the 27 June 2007   Communication on flexicurity

The process aims at guiding European states dealing with the growing pressures of globalisation and demographic change. The approach chosen by the Commission is flexicurity, a strategy aiming at reconciling flexible labour-market rules with high social protection. The Commission attempted to map out possible solutions for member states to provide more and better jobs and tackle the labour-market challenges of the 21st century.

The Parliament reacted with its own-initiative report, which was drafted by Polish conservative MEP Jacek Protasiewicz. The report was adopted, on 11 July 2007,  by 479 votes in favour with 61 against and 54 abstentions.

13 September 2007: Portuguese Presidency conference on flexicurity

5 December 2006: Commission Communication on common principles on flexicurity on agenda of Employment and Social Policy Council 

Subscribe to our newsletters

Subscribe