LABOUR ISSUES IN THE EUROPEAN UNION DOING BUSINESS IN THE EU

CHALLENGES EU Referendum = No –Deeper & wider –Globalisation Too fast = EU = 5000 tot jobs per day lost and created Jobs + –2,2% lower-skilled –14, 2 % high skilled –25,1 % higher skilled –Security & own destiny –Fear for the future Time & transition

EUROPE at the beginning of the XXIst Century ENLARGED EUROPE: 25 STATES = = 455,000,000 people: 7% of the world population Roumania & Bulgaria = 500,000,000 EUROPEAN ECONOMIC AREA: 27 MEMBER STATES 1/3 of world GDP EU (25) –62.9 % employment rate (15 – 64 years of age) –2010: 70 % target –55+ : % –Fixed term: 13 % –Part time: 17 % –55 million poor – 5 million=homeless Demographic implosion (2006)

COMPARATIVISM Employee relations remain national Diversity is the rule and there to stay –Culture –Unionisation – trade union structure –Employers’ organisations –Collective bargaining – incomes policies –Words and gestures –Convergence of costs vs. divergence of content No political will to confer more competences to Europe

European social model? Majority voting: 2/3 of States; 60% population –working conditions –information - consultation –health and safety Unanimity: –job security - social security - taxes –workers participation –collective bargaining Excluded: –remuneration- –trade union freedom –strikes and lock-outs Systems remain national: race to the bottom?

EUROPEAN SOCIAL MODEL? Wage cost : national –European minimum wage? –European collective agreements? –European social security? Systems remain national: race to the bottom?

EUROPEAN SOCIAL MODEL? Is there a European model when the EU lacks core social competences: –Social security –Job security –Collective bargaining – workers participation –Remuneration –Trade union freedom –Strikes and lock-outs?

Trade union density, Europe, Japan and USA CountryUnion density (%) Denmark87.5 Finland79.0 Sweden79.0 Belgium69.2 Luxembourg50.0 Ireland44.5 Unweighted EU average43.8 Austria39.8 Italy35.4 Unweighted average of 10 candidate countries34.1 Greece32.5 Weighted EU average30.4 Portugal30.0 Germany29.7 UK29.0 Netherlands27.0 Weighted average of 10 candidate countries21.9 Japan20.7 Spain15.0 USA13.5 France9.1

Wage bargaining levels EU, Japan and USA Intersectoral levelSectoral levelCompany level AustriaXXXX BelgiumXXXX DenmarkXX X FinlandXXXXX FranceXXXX GermanyXXXX GreeceXXXXX IrelandXXXXX ItalyXXXX JapanXXX LuxembourgXX NetherlandsXXXX PortugalXXXX SpainXXXX SwedenXXXX UKXXX USAXXX X= existing level of wage bargaining; XX= important, but not dominant level of wage bargaining; XXX= dominant level of wage bargaining

Collective bargaining coverage, Europe, Japan and USA CountryCoverage Austria98 % France90%-95% Belgium90%+ Sweden90%+ Finland90% Italy90% Netherlands88% Portugal87% Denmark83% Spain81% Average of 13 EU Member Statesc. 80% Germany67% Luxembourg58% Average of 9 candidate countriesc. 40% UK36% Japan21% USA15%

THE EUROPEAN UNION

EUROPE: A KNOWLEDGE DRIVEN ECONOMY The Union has set itself a new strategic goal for the next decade: to become the most competitive and dynamic knowledge based economy in the world. Businesses and citizens must have access to an inexpensive, world-class communications infrastructure and a wide range of services. Every citizen must be equipped with the skills needed to live and work in this new information society.

WEB SITES: EU European Commission Directorate ‑ General competent for employment and social policy: European Parliament website: European Council website:

EU WEB SITES European Foundation for the Improvement of Living and Working Conditions website: European Social Partners ETUC (European Trade Union Confederation) website: UNICE (Union of Industrial and Employers' Confederations of Europe) website:

SOCIAL POLICIES BEYOND AMSTERDAM OBJECTIVES –A HIGH LEVEL OF EMPLOYMENT –A HIGH LEVEL OF SOCIAL PROTECTION –EQUAL TREATMENT –IMPROVED LIVING CONDITIONS –IMPROVED WORKING CONDITIONS –PROPER SOCIAL PROTECTION –SOCIAL DIALOGUE –UPWARDS HARMONISATION –COMBATTING OF SOCIAL EXCLUSION

ACQUIS COMMUNAUTAIRE Free movement of workers (art. 39) Individual employment contracts (1991) Protection of young people at work (1994) Equal treatment (art. 141 and directives) Motherhood (1992) Working time (1993) Safety and health (Art. 137 and directives) Collective redundancies ( ) Transfer of undertakings ( )

ACQUIS COMMUNAUTAIRE Insolvency of the employer (1980) European Works Councils (1994) Parental leave (1996) Posting of workers (1996) Part-time (1997) Reversal of proof in case of discrimination (1997) Agreement on fixed term contracts (1999) Equal treatment (racial-ethnic origin) (2000) Equal treatment (general framework) (2000) European Company Statute (2001) Information and consultation (2002) Voluntary agreement on telework (2002) Voluntary agreement on related work stress (2004)

EU Employment guidelines Method of open coordination Guidelines National plans – evaluation Guidelines –Employability = flexsecurity –Entrepeneurship –Adaptability –Equal opportunities

SECURITY Active employment policies –Competences and skills –Job- vs. employment security Danish model –Terms of notice –Compensation –Training –Job offer

SOCIAL DIALOGUE A lot of contact – alsmost no contract Agreements + directive –Parental leave (1996) –Part time (1997) –Fixed term contracts (1999) –Some sectoral agreements Voluntary agreements –Telework (2002) –Stress related work (2004)

THE HUNGRY SPIRIT We cannot build our future by prolonging the past (Charles Handy) “Someone, who thinks purely economically is a social idiot “(Prof. Amartya Sen, Harvard, Nobel Prize Economy)