Headings: Collective agreements promotes ’flexicurity’ – the Danish case

1. Flexicurity: State of the Art in European Research, June 9, 2006Collective Bargaining and Flexicurity - some comparative remarks Headings: • Collective agreements promotes ’flexicurity’ – the Danish case • The need for coordination; horizontal and vertical • Comparative remarks

2. Collective agreements and flexicurity- the Danish case Why focus on collective agreements? 1. The importance of collective agreements for the overall labour market regulation in Denmark 2. Flexicurity is not only about (high) external numerical flexibility and (high) income security in case of unemployment Other forms of flexibility and security – cf. Wilthagen and colleagues The possibilities for flexibility-security trade-offs differs between different types of workplaces

3. Collective agreements and flexicurity (1)- the Danish case Four forms of flexibility: (the industrial agreement) 1. External numerical flexibility(the flexibility of hiring and firing) • Flexible terms of notice Virtually unchanged 2.Internal numerical flexibility(working hours, overtime, part-time work, etc.) • Expanded via the decentralisation of bargaining competencies 1995 – reference period: from 6 weeks to 6 months 1998: 12 months 2004: a pilot scheme – company based framework agreements 3. Functional flexibility(multi-employability, flexible organisation of work) • Further education and training Early 1990s 2 weeks paid … 4.Wage flexibility(performance or result-based pay) • Sectoral negotiations, the dominance of minimal-pay systems Early 1990s and onwards

4. Collective agreements and flexicurity (2)- the Danish case Four forms of security: (the industrial agreement) 1. Job security(the certainty of retaining a specific job with a specific employer) • So far job security perceived as high 2. Employment security(the certainty of remaining in work – not necessarily with the same employer) • Wage restraint - ’Job feast over wage feast’ 1987 the tripartite ‘Joint Statement‘ 3. Income security(income protection in the event that paid work ceases) • Occupational pensions – income security beyond working life 1989 and onwards 4. Combination security(the certainty of being able to combine paid work with other social responsibilities and obligations) • Maternity leave Introduced in 1995, 2004: from 14 to 30 weeks of paid maternity leave

5. Collective agreements promotes flexicurity! Over the last 1½ decade the Danish collective bargaining system…has paved the way for flexibility–security trade-offs: Scope of bargaining New welfare issues on the bargaining agenda Flexicurity Dept of bargaining decentralisation of bargaining competencies

6. The challenge of coordination Horizontal coordination Social partners vs. the political system Vertical coordination The shop steward as key actor Potential flexicurity trade-offs

7. Collective agreements vs. legislation- variations in the role of key actors / comparative remarks Horizontal coordination Social partners vs. the political system or … Social partners vs. the political system Some form of multi-level governance Potential flexicurity trade-offs Vertical coordination Workers representation based on agreements or laws

8. Flexicurity, collective agreements and the ‘snakes’ 1. The decentralisation of regulation…increases the possibilities for creating flexicurity trade-offs Questions: • Will extended decentralisation threaten vertical coordination and control in the bargaining system ? • Will increased local bargaining authority disturb the balances between flexibility and security ? 2. The increased scope of collective agreements … … increases the possibilities for creating ’flexicurity trade-offs’ • Problem: A blurred interface between agreements and legislation – the bargaining system delivers welfare services (pensions, pay during maternity leave and sickness, training, etc. = security) • Background: a) a political need for having welfare services co-financed b) labour market parties need to expand the bargaining agenda Question: Can this blurred interface be handled ?