IP Project Flexem ter FLEXICURITY Marije BosmanInholland Hogeschool Kevin De BruyckerPlantijn Hogeschool Mathias SetteleUniversity of Nürtingen Gabriele GrossoUniversity of Bologna Andreas MichaelUniversity of Florence Egle ArcisauskaiteMykolas Romeris University Irmantas BerzauskasKaunas College Mercè Valldeperas SumarrocaUniversity of Girona

IP Project Flexem ter Topic 5 FLEXICURITY 2 Objectives  Description of the concept ‘flexicurity’ as the golden triangle  Comparison of the current situation in the participating countries in the context of the ‘golden triangle’  Conclusions on the possibilities to have a universal flexicurity model working for a whole Europe  Recommendations resting upon the analysis of current situation on what could be done in the member states and on the European level using the ideas and concepts of flexicurity

IP Project Flexem ter Topic 5 FLEXICURITY 3 The golden triangle

IP Project Flexem ter Topic 5 FLEXICURITY 4 Contents I.INTRODUCTION  II.CURRENT SITUATION 1.FLEXIBILITY OF THE LABOUR MARKET 2.SOCIAL SECURITY 3.ACTIVE LABOUR MARKET POLICY 4.TRADE UNIONS III.CONCLUSIONS IV.RECOMMENDATIONS

IP Project Flexem ter Topic 5 FLEXICURITY 5 Flexibility of the labour market Labour market flexibility refers to the degree in which labour markets quickly adapt to fluctuations and changes in society as well as in the economy or production. point of departure: - globalisation - technological change - international competition - unemployment  Flexibility is necessary

IP Project Flexem ter Topic 5 FLEXICURITY 6 Flexibility of the labour market INDICATORS:  employee‘s period of notice  leave schemes  unilateral transfer of personnel by employers  limitation of the employee’s freedom to elect a new employer  average length of service Worker mobility

IP Project Flexem ter Topic 5 FLEXICURITY 7 Flexibility of the labour market Strict rules  lack of flexibility  unlike the Danish model INDICATORS:  Protection against dismissal  probationary period  employer‘s period of notice Employment Protection

IP Project Flexem ter Topic 5 FLEXICURITY 8 Flexibility of the labour market  open-ended labour contract  part-time contract  fixed-term contract  temporary work contract  different regulations in the various countries Types of contracts

IP Project Flexem ter Topic 5 FLEXICURITY 9 Flexibility of the labour market depending on the different indicators and countries furthermore flexibility must be increased  especially concerning dismissal rules Current level of flexibility in EU?

IP Project Flexem ter Topic 5 FLEXICURITY 10 Contents I.INTRODUCTION  II.CURRENT SITUATION 1.FLEXIBILITY OF THE LABOUR MARKET  2.SOCIAL SECURITY 3.ACTIVE LABOUR MARKET POLICY 4.TRADE UNIONS III.CONCLUSIONS IV.RECOMMENDATIONS

IP Project Flexem ter Topic 5 FLEXICURITY 11 Social Security Social security - a regulation that gives the employees security for employment and income irrespective of developments on the labour market or developments in the employee’s own situation High social security – a precondition for flexible labour market in the flexicurity model

IP Project Flexem ter Topic 5 FLEXICURITY 12 Social Security INDICATORS:  unemployment benefits  unemployment rate DenmarkNetherlandsBelgiumSpainItalyGermanyLithuaniaEurope 3,2%3,6%7,7%8,5%6,7%7,9%5,7%7,6%

IP Project Flexem ter Topic 5 FLEXICURITY 13 Social Security  Pensions  GDP rate for social security DenmarkNetherlandsBelgiumSpainItalyGermanyLithuaniaEurope 34%28,5%29,3%20,0%26,4%29,5%17%27%  minimu m wages

IP Project Flexem ter Topic 5 FLEXICURITY 14 Contents I.INTRODUCTION  II.CURRENT SITUATION 1.FLEXIBILITY OF THE LABOUR MARKET  2.SOCIAL SECURITY  3.ACTIVE LABOUR MARKET POLICY 4.TRADE UNIONS III.CONCLUSIONS IV.RECOMMENDATIONS

IP Project Flexem ter Topic 5 FLEXICURITY 15 Active Labour Market Policy Active labour market policies (ALMP’s)  government programmes that intervene in the labour market to help the unemployed to find work Categories of ALMP:  public employment services  training schemes  employment subsidies

IP Project Flexem ter Topic 5 FLEXICURITY 16 Active Labour Market Policy Life long learning (LLL)  an attitude to open new ideas, decisions, skills and behaviours DenmarkNetherlandsLithuaniaBelgiumItalySpainGermany Participation in LLL 27.4%15.4%6.0 %8.3 %5.8%10.5%7.7 % Public expenditure education % GDP 8.4%5.3%5.2%6.2%4.9%4.5%4.8% Financing concept of life long learning (LLL)

IP Project Flexem ter Topic 5 FLEXICURITY 17 Active Labour Market Policy Job rotation  a transfer of employees among a number of different positions and tasks within jobs where each requires different skills and responsibilities Current situation:  Belgium, The Netherlands - a working concept  Italy, Spain – a certain form, but it is bound to a lot of rules  Germany, Lithuania – set by law, but not working practically

IP Project Flexem ter Topic 5 FLEXICURITY 18 Contents I.INTRODUCTION  II.CURRENT SITUATION 1.FLEXIBILITY OF THE LABOUR MARKET  2.SOCIAL SECURITY  3.ACTIVE LABOUR MARKET POLICY  4.TRADE UNIONS III.CONCLUSIONS IV.RECOMMENDATIONS

IP Project Flexem ter Topic 5 FLEXICURITY 19 Trade Unions % of total national union membership in 2003

IP Project Flexem ter Topic 5 FLEXICURITY 20 Contents I.INTRODUCTION  II.CURRENT SITUATION 1.FLEXIBILITY OF THE LABOUR MARKET  2.SOCIAL SECURITY  3.ACTIVE LABOUR MARKET POLICY  4.TRADE UNIONS  III.CONCLUSIONS IV.RECOMMENDATIONS

IP Project Flexem ter Topic 5 FLEXICURITY 21 Final Conclusion Question:Would there be a possibility to have a general flexicurity model in Europe?  „golden triangle“  differences  general policy

IP Project Flexem ter Topic 5 FLEXICURITY 22 Contents I.INTRODUCTION  II.CURRENT SITUATION 1.FLEXIBILITY OF THE LABOUR MARKET  2.SOCIAL SECURITY  3.ACTIVE LABOUR MARKET POLICY  4.TRADE UNIONS  III.CONCLUSIONS  IV.RECOMMENDATIONS

IP Project Flexem ter Topic 5 FLEXICURITY 23 Recommendations Flexibility of the labour market  investing in employability  flexible level of contracts Social Security  minimum expenditure in social security  effective taxation  retirement age

IP Project Flexem ter Topic 5 FLEXICURITY 24 Recommendations Active Labour Market Policy  education and LLL  expenditure on ALMP  Private Agencies Role of Trade Unions

IP Project Flexem ter Topic 5 FLEXICURITY 25 Recommendations Modernisation and fundamental rights  Role of labour law

IP Project Flexem ter Topic 5 FLEXICURITY 26 Contents I.INTRODUCTION  II.CURRENT SITUATION 1.FLEXIBILITY OF THE LABOUR MARKET  2.SOCIAL SECURITY  3.ACTIVE LABOUR MARKET POLICY  4.TRADE UNIONS  III.CONCLUSIONS  IV.RECOMMENDATIONS 

IP Project Flexem ter Topic 5 FLEXICURITY 27 Annex – Leave Schemes Netherland s LithuaniaBelgiumItalySpainGermany Annual/ordinaryYes MaternityYes ParentalYes Carer’sYes Political or public duties Yes Yes/No Study/learningYes Part-time pension Yes Yes SabbaticalYes (Yes) SicknessYes

IP Project Flexem ter Topic 5 FLEXICURITY 28 Annex – Employment Protection Employment Protection legislation Particular restrictions against dismissal of specific persons maximum probationary period Maximum period of notice DenmarkYes 3 months6 months NetherlandsYes 2 months LithuaniaYes 6 months4 months BelgiumYes 14 days/ 6 months 8 weeks/18 months ItalyYes 6 monthscollective labour agreement SpainYes 6 months30 days GermanyYes 6 months7 months

IP Project Flexem ter Topic 5 FLEXICURITY 29 Annex – Social Security DenmarkNetherlandsBelgiumSpainItalyGermanyLithuaniaEurope 3,2%3,6%7,7%8,5%6,7%7,9%5,7%7,6% Unemployment rates GDP rate for social security DenmarkNetherlandsBelgiumSpainItalyGermanyLithuaniaEurope 34%28,5%29,3%20,0%26,4%29,5%17%27%

IP Project Flexem ter Topic 5 FLEXICURITY 30 Active Labour Market Policy Financing concept of life long learning (LLL) DenmarkNetherlandsLithuaniaBelgiumItalySpainGermany GovernmentXXXXX X Companies XXXXXX Worker XX X