4 Happy working fools ?Danes are the happiest people on earth. Different surveys reveal that from time to time when we try to compare different nations.The question is why are the Danes so happy? Is there something we have misunderstood? The Danes work hard for many years. And we as a Trade Union support this approach.
9 The dynamic Danish labour market The Danish labour market is extremely dynamic, - around 30% of the workforce change jobs each year.- Workers do virtually not loose any rights when they change jobs, such as their entitlement to paid holidays, pensions etc., and for companies,- It is relatively easy to dismiss employees thanks to procedures regarding notification etc. which are very flexible. As a consequence, average job tenure in Denmark is among the lowest in the EU.- Employers are relatively less reluctant to hire when it is needed.
10 Unemployment – is not uncommon to many danes! High mobility does not necessarily lead to lower unemployment, but rather to shorter spells of unemployment. Many Danes experience a period of unemployment during their working lives, but fewer end up in the ranks of the long-term unemployed than in other OECD countries. In Denmark, less than 25% of those out of work have been unemployed for more than 12 months, compared with one-third across the OECD as a whole. In the EU-15, more than 40% of those out of work are long-term unemployed.
12 What caracterizes the Danish enterprises Denmark has a small, flexible economy which relies on pockets of high-tech and generally small and medium-sized businesses.1/3 of the labourforce in the public sector.
13 The Danish Golden Triangle High flexibility (easy to lay off people)Many job openings, 1/3 of private workforce changes jobs in a yearLabour marketLifelong LearningActive labour market policyUnemployment insuranceFiguren viser de grundlæggende elementer i dansk arbejdsmarkedspolitikFleksibilitet: let at fyre folkHøj og lang social sikkerhed garantere mod at man mister tilknytningen sit fodfæste. Dermed skal færre samles op som socialt marginaliserede, der i har længere til arbejdsmarkedetAktiv linjen: opkvalificere ledige og opstramninger i kravene til accept af jobHigh degree of compensationFour years in the insurance systemFocus on better qualificationsRight and duty to accept job offers
14 The Danish model: Flexicurity The word ”flexicurity” is a combination of the words ”security” and ”flexibility” and signifies the ability to combine social security and flexibility on the labour market
15 The one leg of flexicurity - Security in a broad sense Security includes concepts such as:Active labour market policies and benefits (ALMP);Employment protection (regulations concerning dismissals);Employability (ability to find a new job);
17 The Danish unemployment insurance system Compensation: 90 pct. of wageMax. Amount apprx euro per yearAverage compensation degree: 60 – 70 pct.Period: 4 yearsRight and obligation to activation or joboffersThe unemployment insurance funds plays an active role in active labour market policy and are closely related to the Trade Unions.
18 Labour market spendings The Danish system is an“expensive investment”
19 The role of the social partners and the collective agreements Agreement hierarchy:DAThe General AgreementThe Cooperation AgreementEmployers’associationsTU’s andconfederationsCollectiveagreementsCompaniesWorkersLocalagreements
20 Degree of Unionisation, - the Three European Models Development in the degree of unionisation, 1980 – 2001 (pct.).
21 The other leg of flexicurity – Flexibility in a broad sense Flexibility includes concepts such as:Numerical flexibility(adjustment by numbers; number of workers, hours, shifts, types of contract, life-cycle needs, temporary placement agencies);Cost-flexibility (wage and non-wage labour cost, cost of hiring and firing);Organisational flexibility (lifelong learning, worker-sharing, organisational development).
22 The Flexible Labour Market Periods of notice:After 1 years employmentAfter 5 years employmentAfter 10 years employmentShare of workforce employed in private sectorConstruction workers3 days5 daysApprox. 10 %Industrial and transport workers, etc.21 days2 months3 monthsApprox. 40 %Salaried workers4 months6 monthsApprox. 50 %
24 Combinations of jobprotection and social security High social security levelLow social security levelHigh jobprotectionFranceJapanLow jobprotectionDenmarkUSA
25 The inter-action between the employment rate and economic security
26 The inter-action between unemployment rate and economic security
27 Globalisation and new technology have led to a fall in demand for unskilled labour, while demand for skilled labour has increasedUnskilled workers constitute a declining share of the workforceEmployment by educational level
28 Participation of labour force in lifelong learning Source: Commission (2006)
29 Long journey to life long learning ”Matthew rules” Share of employees who have not participated in formal training within the last two yearsSalaryemployedLowersalaryemployedSkilledworkersUnskilledworkersKilde: LO’s frihedsundersøgelse, 2003
30 Survival of the fittest in a globalized world Key challenges seen from the Trade Unions:Ability to have a competitive qualified labour force !Ability to have a society with social cohesion and a high degree of social security. The ability to secure flexibility !To maintain and develop the Flexicurity model especially the part dealing with life long learning. From job-security to employment security!To maintain and develop a high-quality public service!Good infrastructure in a broad sense!