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Michael Jacobsen The Danish Confederation of Trade Unions (LO)

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Presentation on theme: "Michael Jacobsen The Danish Confederation of Trade Unions (LO)"— Presentation transcript:

1 Michael Jacobsen The Danish Confederation of Trade Unions (LO)



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.

5 The Danish employment rate

6 Labour market participation rate - 2005
Kilde: OECD Employment Outlook

7 Seasonally adjusted unemployment figures in pct.

8 Unemployment rates DK, UU, Germany

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.

11 Average job tenure

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 year Labour market Lifelong Learning Active labour market policy Unemployment insurance Figuren viser de grundlæggende elementer i dansk arbejdsmarkedspolitik Fleksibilitet: let at fyre folk Høj 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 arbejdsmarkedet Aktiv linjen: opkvalificere ledige og opstramninger i kravene til accept af job High degree of compensation Four years in the insurance system Focus on better qualifications Right 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);

16 Unemployment benefit rates

17 The Danish unemployment insurance system
Compensation: 90 pct. of wage Max. Amount apprx euro per year Average compensation degree: 60 – 70 pct. Period: 4 years Right and obligation to activation or joboffers The 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: DA The General Agreement The Cooperation Agreement Employers’ associations TU’s and confederations Collective agreements Companies Workers Local agreements

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 employment After 5 years employment After 10 years employment Share of workforce employed in private sector Construction workers 3 days 5 days Approx. 10 % Industrial and transport workers, etc. 21 days 2 months 3 months Approx. 40 % Salaried workers 4 months 6 months Approx. 50 %

23 Degree of employment protection

24 Combinations of jobprotection and social security
High social security level Low social security level High jobprotection France Japan Low jobprotection Denmark USA

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 increased Unskilled workers constitute a declining share of the workforce Employment 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 years Salary employed Lower salary employed Skilled workers Unskilled workers Kilde: 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!

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