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Governance of the European Social Model: The Case of Flexicurity

Governance of the European Social Model: The Case of Flexicurity. Ralf Rogowski School of Law, University of Warwick

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Governance of the European Social Model: The Case of Flexicurity

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  1. Governance of the European Social Model: The Case of Flexicurity Ralf Rogowski School of Law, University of Warwick Talk at the Workshop Governing Social Policy in Europe: the Promotion of Capabilities and Transitional Labour Markets, University of Warwick, Palazzo Pesaro-Papafava, Venice, 10-11 April 2008

  2. New Governance and the Open Method of Coordination (OMC) EMU and Broad Economic Policy Guidelines • 1997: OMC in Employment • 2000: OMC in Social Inclusion • March 2001: OMC in Pensions • June 2001: OMC in Health care and care for the elderly

  3. OMC 2000: White Paper on Governance Guidelines Evaluation Report Indicators National Action Plans

  4. The Social Dimension of European Integration Stages: • 1957: EEC Treaty • 1973: Social Action Programme • 1989: Community Charter of Fundamental Rights of Workers • 1992: Maastricht (‘Social Chapter’) • 1997: Amsterdam (‘Employment Chapter’) • 2000: Lisbon Agenda • 2006: Green Paper on Reform of Labour Law

  5. European Employment Strategy OMC in Employment Employment Guidelines Employment Report Indicators for employment National Action and unemployment rates Plans

  6. Employment Guidelines1997-2003 Four pillars • Employability • Entrepreneurship • Adaptability • Equal Opportunities

  7. Employment Guidelines2003 Three objectives • Full employment • Improving quality and productivity at work • Strengthening social cohesion and inclusion

  8. Integrated Economic and Employment Guidelines (2005-2008) Macroeconomic guidelines (1) To secure economic stability. (2) To safeguard economic sustainability. (3) To promote an efficient allocation of resources (4) To promote greater coherence between macroeconomic and structural policies. (5) To ensure that wage developments contribute to macroeconomic stability and growth. (6) To contribute to a dynamic and well-functioning EMU. Microeconomic guidelines (7) To extend and deepen the internal market. (8) To ensure open and competitive markets. (9) To create a more attractive business environment. (10) To promote a more entrepreneurial culture and create a supportive environment for SMEs. (11) To expand and improve European infrastructure and complete agreed priority cross border projects. (12) To increase and improve investment in R&D. (13) To facilitate innovation and the take up of ICT. (14) To encourage the sustainable use of resources and strengthen the synergies between environmental protection and growth. (15) To contribute to a strong industrial base. Employment guidelines (16) To implement employment policies aimed at achieving full employment, improving quality and productivity at work, and strengthening social and territorial cohesion. (17) To promote a lifecycle approach to work. (18) To ensure inclusive labour markets for job-seekers and disadvantaged people. (19) To improve matching of labour market needs. (20) To promote flexibility combined with employment security and reduce labour market segmentation. (21) To ensure employment-friendly wage and other labour cost developments. (22) To expand and improve investment in human capital. (23) To adapt education and training systems in response to new competence requirements.

  9. Employment Guidelines 2005-8 (16) To implement employment policies aimed at achieving full employment, improving quality and productivity at work, and strengthening social and territorial cohesion. (17) To promote a lifecycle approach to work. (18) To ensure inclusive labour markets for job-seekers and disadvantaged people. (19) To improve matching of labour market needs. (20) To promote flexibility combined with employment security and reduce labour market segmentation. (21) To ensure employment-friendly wage and other labour cost developments. (22) To expand and improve investment in human capital. (23) To adapt education and training systems in response to new competence requirements.

  10. GREEN PAPER “Modernising labour law to meet the challenges of the 21st century”(COM(2006) 708 final) “need for the adaptation of employment legislation to promote flexibility combined with employment security” Issues for debate: a. Employment transitions b. Uncertainty with regard to the law c. Three Way Relationships d. Organisation of working time e. Mobility of workers f. Enforcement issues and undeclared work

  11. COMMISSION COMMUNICATION On the outcome of the Public Consultation on the Commission’s Green Paper “Modernising labour law to meet the challenges of the 21st century” (COM, autumn 2007) “The Commission will … take the necessary steps in 2008 to pursue the issues raised in this Communication in the wider "flexicurity" context. Despite a difference of views on the extent and nature of EU action, the consultation has identified a demand for improved cooperation, more clarity, or just more and better information and analysis, in a number of areas, such as: • The prevention and combating of undeclared work, especially in cross-border situations; • The promotion, development and implementation of training and life-long learning to ensure greater employment security over the life cycle; • The interaction between labour law and social protection rules in support of effective employment transitions and sustainable social protection systems; • The clarification of the nature of the employment relationship to promote greater understanding and facilitate cooperation across the EU; • The clarification of the rights and obligations of the parties involved in subcontracting chains, to avoid depriving workers of their ability to make effective use of their rights.”

  12. Flexicurity Green Paper on Reform of Labour Law: “making the job market more flexible while improving security for workers (the flexicurity approach)” Flexibility: external numerical, internal numerical, functional and wage flexibility Security: job, employment, income and combination security

  13. Flexicurity MatrixBased on Wilthagen and Tros 2004

  14. COMMISSION COMMUNICATION Towards Common Principles of Flexicurity: more and better jobs through flexibility and securityCOM(2007) 359 final • “Flexible and reliable contractual arrangements (from the perspective of the employer and the employee, of ‘’insiders’’ and ‘’outsiders’’) through modern labour laws, collective agreements and work organisation; • Comprehensive lifelong learning (LLL) strategies to ensure the continual adaptability and employability of workers, particularly the most vulnerable; • Effective active labour market policies (ALMP) that help people cope with rapid change, reduce unemployment spells and ease transitions to new jobs; • Modern social security systems that provide adequate income support, encourage employment and facilitate labour market mobility. This includes broad coverage of social protection provisions (unemployment benefits, pensions and healthcare) that help people combine work with private and family responsibilities such as childcare.”

  15. Eight Common Principles of Flexicurity, EU Council 6.12.2007 • “1) Flexicurity is a means to reinforce the implementation of the Lisbon Strategy, create more and better jobs, modernise labour markets, and promote good work through new forms of flexibility and security to increase adaptability, employment and social cohesion. • (2) Flexicurity involves the deliberate combination of flexible and reliable contractual arrangements, comprehensive lifelong learning strategies, effective active labour market policies, and modern, adequate and sustainable social protection systems. • (3) Flexicurity approaches are not about one single labour market or working life model, nor about a single policy strategy: they should be tailored to the specific circumstances of each Member State. Flexicurity implies a balance between rights and responsibilities of all concerned. Based on the common principles, each Member State should develop its own flexicurity arrangements. Progress should be effectively monitored. • (4) Flexicurity should promote more open, responsive and inclusive labour markets overcoming segmentation. It concerns both those in work and those out of work. The inactive, the unemployed, those in undeclared work, in unstable employment, or at the margins of the labour market need to be provided with better opportunities, economic incentives and supportive measures for easier access to work or stepping-stones to assist progress into stable and legally secure employment. Support should be available to all those in employment to remain employable, progress and manage transitions both in work and between jobs. • (5) Internal (within the enterprise) as well as external flexicurity are equally important and should be promoted. Sufficient contractual flexibility must be accompanied by secure transitions from job to job. Upward mobility needs to be facilitated, as well as between unemployment or inactivity and work. High-quality and productive workplaces, good organisation of work, and continuous upgrading of skills are also essential. Social protection should provide incentives and support for job transitions and for access to new employment. • (6) Flexicurity should support gender equality, by promoting equal access to quality employment for women and men and offering measures to reconcile work, family and private life. • (7) Flexicurity requires a climate of trust and broadly-based dialogue among all stakeholders, where all are prepared to take the responsibility for change with a view to socially balanced policies. While public authorities retain an overall responsibility, the involvement of social partners in the design and implementation of flexicurity policies through social dialogue and collective bargaining is of crucial importance. • (8) Flexicurity requires a cost effective allocation of resources and should remain fully compatible with sound and financially sustainable public budgets. It should also aim at a fair distribution of costs and benefits, especially between businesses, public authorities and individuals, with particular attention to the specific situation of SMEs.”

  16. Transitional Labour Markets and Social Risk Management Based on Schmid and Schömann 2004 Managing Social Risks Through Transitional Labour Markets: Towards a European Social Model. TLM.NET Report No. 2004-01. Amsterdam, SISWO / Institute for the Social Sciences.

  17. European Social Model • Decentred • Plural • Reflexive

  18. Bibliography (1) • COMMISSION OF THE EUROPEAN COMMUNITIES INTEGRATED GUIDELINES FOR GROWTH AND JOBS (2005-2008) COM(2005) 141 final of 12.4.2005 • COMMISSION OF THE EUROPEAN COMMUNITIES GREEN PAPER Modernising labour law to meet the challenges of the 21st century COM(2006) 708 final of 22.11.2006 • COMMISSION OF THE EUROPEAN COMMUNITIES COMMUNICATION Towards Common Principles of Flexicurity: more and better jobs through flexibility and security COM(2007) 359 final 27.6.2007

  19. Bibliography (2) • Rogowski, R. (ed.) (forthcoming 2008) The European Social Model and Transitional Labour Markets – Law and Policy. Aldershot: Ashgate. • Rogowski, R. (2007) “Flexicurity and Reflexive Coordination of European Social and Employment Policies", Chapter 5 of Flexicurity and Beyond. Finding a new agenda for the European Social Model. Ed. by H. Jørgensen, P.K. Madsen. Copenhagen: DJØF Publishing, pp. 131-153. • Schmid, G. / K. Schömann (2004). Managing Social Risks Through Transitional Labour Markets: Towards a European Social Model. TLM.NET Working Paper No. 2004-01. Amsterdam: SISWO/Institute for the Social Sciences • Wilthagen, T. / Tros, F. (2004) The concept of ‘flexicurity’: a new approach to regulating employment and labour markets, Transfer, Vol. 10 (2), pp. 166-186.

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