Trade unions and employers clinch deal on flexicurity

redtape.jpg

European social partners have agreed upon the key principles to guide “flexicurity” labour market reforms in member states at a key meeting with EU leaders in Lisbon, bringing an end to months of bickering.

European trade unions and employers presented EU leaders with a “milestone” joint text defining the main challenges facing Europe’s labour markets and proposing common recommendations during the Tripartite Social Summit, which took place on 18 October in parallel to the informal meeting of heads of state and government in Lisbon (EURACTIV 19/10/07). 

After months of arguments over the ‘right’ amounts of flexibility and security required to put the flexicurity model into practice, trade unions and employers agreed on a common approach, which they say can “create a win-win situation and be equally beneficial for employers and employees”. 

But despite agreement on the flexicurity concept from trade union leaders at European level, more than 150,000 people demonstrated on the streets of Lisbon, with banners such as “Jobs with rights – Against Flexicurity”, in a protest staged by Portugal’s main trade union. 

While stressing the need to adapt labour law and contracts to make it easier for employers to hire and fire people, the joint document adds that flexicurity “needs to be accompanied by the provision of good working conditions and quality of jobs”. These include:

  • Ensuring career and employment security; 
  • maintaining and promoting the health and well-being of workers; 
  • developing skills and competencies, and; 
  • reconciling working and non-working life. 

The joint document also calls on member states to adapt education and training systems to the needs of the labour market and to examine how tax systems, social benefits and wage policies can better encourage workers to stay in or return to the labour markets. 

The social partners said they hoped EU employment and social ministers would take up their recommendations when they meet to discuss flexicurity on 5-6 December. 

Read more with Euractiv

Subscribe now to our newsletter EU Elections Decoded

Commission President José Manuel Barroso congratulated the social partners on their agreement, saying: "This is a consensus for a Europe that recognises that we live in a more competitive world." 

Employment and Social Affairs Commissioner Vladimír Špidla welcomed the emergence of a consensus on the crucial elements of a flexicurity approach and called on member states and social partners to follow up with concrete action. 

Georg Toifl, president of the European craft and SME employers’ organisation (UEAPME), said the most important aspect of this text was that employers and trade unions had agreed on a common understanding of the issues at stake, providing an excellent basis for future discussions. 

However, he regretted that the social partners "were not able to go further and draw up concrete joint recommendations" on fighting undeclared work, a "key concern for SMEs operating in labour-intensive sectors", often caused by ill-adapted taxation and social security systems. 

Rainer Plassmann, general secretary of the European Center of Enterprises with Public Participation and of Entreprises of General Economic Interest (CEEP), said the joint analysis represented a "milestone" and expressed particular satisfaction that, "probably for the first time", a jointly-agreed social partners' text recognised "the fact that high-quality public services play a crucial role in the development of effective labour market and competitive economies, representing a substantial employment growth potential". 

John Monks, general secretary of the European Trade Union Confederation (ETUC) recognised the discussion had been "hard" but said the joint text represented "a way of giving new life to social Europe", by rebalancing the Commission's proposal. 

He said the document reflected the fact that the challenge facing the European labour market is not only to create more jobs, but also to create better jobs and offer more security for workers in a labour market that is already very flexible. 

"With the European labour market already capable of a process of 'creative destruction', destroying around 4% of jobs and creating 5-8% of new ones every year, the most urgent issue is how to ensure the European labour market can offer more security for workers," he stressed. 

Faced with the twin challenges of heightened competitive pressure caused by globalisation and an ageing population - which is increasingly weighing down on Europe's economy through swelling pension and healthcare costs and a dwindling workforce - the Commission published, in November 2006, a Green Paper on the reform of European labour law. 

A wide-ranging public consultation based on this document was followed in June 2007 by a Communication on "flexicurity" (EURACTIV 26/06/07), which advocates a combination of policies aimed at guaranteeing more flexibility for enterprises to hire and fire workers while maintaining high standards of social security. 

Since then, employers and trade unions have been fighting over how best to define the term (EURACTIV 08/03/07). 

  • 5-6 Dec. 2007: Employment and Social Affairs Council to discuss the Commission's flexicurity proposals

Subscribe to our newsletters

Subscribe