Flexicurity – why it’s useful for crafts and SMEs ? Gerhard Huemer UEAPME Director Economic and Fiscal Policy 5 th SME Summit Graz, April 07, 2006

Outline of presentation n Introduction – flexicurity: nothing new n UEAPME’s Futurisme Projects n Challenges for the European Social Models n Social Dialogue and Tripartite Coordination – can they deliver? FLEXICURITYFLEXICURITY

Introduction: UEAPME on Flexicurity  Futurisme I: About work organisation in general  Futurisme II: About adaptability and employability  Social Model debate: How to implement reforms ?  Social Dialogue: What is possible at which level? FLEXICURITYFLEXICURITY

The Futurisme Projects n Different problems need different solutions => independent negotiations for SMEs n Agreements too restrictive for SMEs => more flexible working time => profit related earnings => elements to enhance employability n Increase of labour market participation => (re) integration of young, female and older employees FLEXICURITYFLEXICURITY

The Social Model debate n Consequences of economic & social developments => structural unemployment / wage differentiation => industrial relations in a service economy => incentives to work / social benefit systems => from job-security to employment-security n Economic reforms  Socal reforms => which interdependencies? => how to reduce transition costs? => reforms: too far or not far enough? FLEXICURITYFLEXICURITY

Social Dialogue and Tripartite Co-ordination n It’s about involving the stakeholders n What’s the right level for cooperation? => creation of win-win situations => negotiations versus legal competences => shortcomings of EU level dialogue n Areas for co-operation on EU level => economic restructuring => fight against undeclared work => solutions for the low wage sectors => improve training in the SME sector FLEXICURITYFLEXICURITY