Fifth European Conference on Sustainable Cities and Towns Sevilla, Spain, March , Workshop C07 What is flexicurity? – And why is local partnership between the trade unions, the employers and the municipality important? By Niels Jahn Knudsen Consultant City of Aalborg Jobcenter Aalborg Envisions – 23. November 2005

Denmark Aalborg Sweden Norway

Inhabitants total City Total area1.144 km 2 Economy: Engineering, Foods, Manufacturing, Telecommunication & Construction, trade and restaurants, banking and insurance, education and health service/social institutions.

nassisting all kinds of jobseekers in finding a job noffering services to private and public employers who are looking for labour The Jobcentre is responsible for:

Statements: 1.A reduction of the numbers of persons left outside the Labour Marked is an important objective to create a social sustainable city. 2.An active Labour Market policy leads to economical growth. 3.Partnership between employers, trade unions and the local authorities is a necessary to fight the consequences of the global competition

Agenda nWhat is flexicurity? - the Danish tradition of partnership between employers, trade unions and the local authorities. nCorporation on a local scale - illustrated by a case story

The danish model: nDenmark has the highest expenditure on active labour market policy nDenmark has some of the highest replacement rates for unemployed nDenmark is one of the world’s most competitive economies nUnemployment over the past 10 years has been low, around 3-4% below the EU average. Source: OECD

Flexicurity = Flexibility + Security. The flexibility nit is easy for the enterprises to hire and fire employees - Most of the fired quickly gets a new job n1/3 of the labour force changes jobs each year nLow strictness of employment protection legislation The security npeople are not afraid of changing job nhigh level of social security. nThere is an active employment policy - A lot of funding is used on programs getting the unemployed back in job

How is this possible? A long tradition of cooperation between The Danish Confederation of Trade Unions (LO) The Confederation of Danish Employers (DA) The danish goverment

Labour market in Aalborg December 2006 Unemployment benefit4.000 Cash benefit solely due to unemployment1.100 Cash benefit - unemployment + social problems2.700 Sickness benefit2.000 In rehabilitation700 In sheltered employment1.500 Waiting for sheltered employment.200 Persons outside the Labour Market Persons in employment

A case story Jobcenter Aalborg finds 18 unemployed, who receives cash benefit. Education at a vocational training centre (AMU Nordjylland) Job training at the company Employment at the company Difficult for company to recruit new skilled workers.

The 7 members of the board are representatives from local trade unions, local employers organisation and from Jobcentre Aalborg Before the start of the project, it was discussed at a special “activation board” The board wants to make sure, that only those, who really lacks skills get job training.

An example of a win-win situation nthe unemployed get education and get back in job nthe company get new skilled workers the trade union can recruit new members and prevent that those already employed in the company looses their job.

nMutual respect – it is important to know, understand and respect each others agenda. nTransparency – all relevant information have to be given. nConfidence - all written or un-written agreements has to be respected Corporation is based on

On a local scale - consider to ncreate a board with representatives from the most important trade unions and employers organisations ninvolve them in future projects on job creation, job training and educating unemployed nuse their experiences from the labour market to optimise your own labour marked policy.

Further recommended reading: How can it possibly fly? The paradox of a dynamic labour market in a Scandinavian welfare state. by Kongshøj Madsen, CARMA, University of Aalborg, (Strongly recommended) Executive Summary of the Danish report Flexicurity, May 2005: “Traditions, experiences and challenges for the Danish model and Danish labour market and social policies". 77E5DBC1A316/0/Executivesummaryflexicurity.doc Flexicurity – Developing people through jobs by Director General Jørn Neergaard Larsen, Confederation of Danish Employers – DA For the Danish, A Job Loss Can Be Learning Experience, by Marcus Walker, WSJ: E5DBC1A316/0/Executivesummaryflexicurity.doc