1. LABOUR ISSUES IN THE EUROPEAN UNION The European Social Model? Roger.blanpain@cer-leuven.be

2. EUROPE at the beginning of the XXIst Century ENLARGED EUROPE: 27 STATES = = 485,000,000 people: 7% of the world population 1/3 of world GDP EU (25) –62.9 % employment rate (15 – 64 years of age) –2010: 70 % target –55+ : 40. 2 % –Fixed term: 13 % –Part time: 17 % –55 million poor – 5 million=homeless Demographic implosion (2007)

3. GLOBALISATION Technology + market economy Free to invest and disinvest – share holders value Power relations vs. State and Social Partners have changed Fair ? Only 35 countries are in, China and India included – 140 countries are out (Africa, LA…)

4. CONSEQUENCES Economic --Tertiarisation: service jobs (70%) –Creative jobs in the lift –Outsourcing and networking –Restructuring – delocalisation Social –Dualism (in and out); Social Exclusion –Reward of capital and of wagearners –Representativity of TU –Migration (legal and illegal) – diversity – religion - fundamentalism

5. CONSEQUENCES Societal: Dramatic and ongoing changes War and terrorism Powerless and unsafe Rejection –Anti-globalism –Most Trade Unions are heading towards the past –Xenophobic : No »European Constitution »Diversification » Free movement of services » Free movent Central – Eastern Europe » Turkey

6. EVOLUTION OF EMPLOYMENT Industry and services

7. COMPARATIVISM Employee relations remain national Diversity is the rule and there to stay –Culture –Unionisation – trade union structure –Employers organisations –Collective bargaining – incomes policies –Words and gestures –Convergence of costs vs. divergence of content No political will to confer more competences to Europe

8. Trade union density, Europe, Japan and USA CountryUnion density (%) Denmark87.5 Finland79.0 Sweden79.0 Belgium69.2 Luxembourg50.0 Ireland44.5 Unweighted EU average43.8 Austria39.8 Italy35.4 Unweighted average of 10 candidate countries34.1 Greece32.5 Weighted EU average30.4 Portugal30.0 Germany29.7 UK29.0 Netherlands27.0 Weighted average of 10 candidate countries21.9 Japan20.7 Spain15.0 USA13.5 France9.1

9. Collective bargaining coverage, Europe, Japan and USA CountryCoverage Austria98 % France90%-95% Belgium90%+ Sweden90%+ Finland90% Italy90% Netherlands88% Portugal87% Denmark83% Spain81% Average of 13 EU Member Statesc. 80% Germany67% Luxembourg58% Average of 9 candidate countriesc. 40% UK36% Japan21% USA15%

10. European social model? Majority voting: 2/3 of States; 62% population –working conditions –information - consultation –health and safety Unanimity: –job security - social security - taxes –workers participation –collective bargaining Excluded: –remuneration- –trade union freedom –strikes and lock-outs Systems remain national: race to the bottom?

11. EUROPEAN SOCIAL MODEL? Is there a European model when the EU lacks core social competences: –Social security –Job security –Collective bargaining – workers participation –Remuneration –Trade union freedom –Strikes and lock-outs?

12. THE EUROPEAN UNION

13. EUROPE: A KNOWLEDGE DRIVEN ECONOMY The Union has set itself a new strategic goal for the next decade: to become the most competitive and dynamic knowledge based economy in the world. Businesses and citizens must have access to an inexpensive, world-class communications infrastructure and a wide range of services. Every citizen must be equipped with the skills needed to live and work in this new information society.

14. WEB SITES: EU European Commission http://europa.eu.int/comm/index_en.htm Directorate General competent for employment and social policy: http://www.europa.eu.int/comm/dg05/index_en.htm European Parliament website: http://europarl.eu.int/ European Council website: http://ue.eu.int/en/info/eurocouncil/

15. EU WEB SITES European Foundation for the Improvement of Living and Working Conditions website: http://www.eurofound.ie/ European Social Partners ETUC (European Trade Union Confederation) website: http://www.etuc.org/ UNICE (Union of Industrial and Employers' Confederations of Europe) website: http://www.unice.org/unice/

16. SOCIAL POLICIES BEYOND AMSTERDAM OBJECTIVES –A HIGH LEVEL OF EMPLOYMENT –A HIGH LEVEL OF SOCIAL PROTECTION –EQUAL TREATMENT –IMPROVED LIVING CONDITIONS –IMPROVED WORKING CONDITIONS –PROPER SOCIAL PROTECTION –SOCIAL DIALOGUE –UPWARDS HARMONISATION –COMBATTING OF SOCIAL EXCLUSION

17. ACQUIS COMMUNAUTAIRE Free movement of workers (art. 39) Individual employment contracts (1991) Protection of young people at work (1994) Equal treatment (art. 141 and directives) Motherhood (1992) Working time (1993) Safety and health (Art. 137 and directives) Collective redundancies (1975-1992-1998) Transfer of undertakings (1977-1998-2001)

18. ACQUIS COMMUNAUTAIRE Insolvency of the employer (1980) European Works Councils (1994) Parental leave (1996) Posting of workers (1996) Part-time (1997) Reversal of proof in case of discrimination (1997) Agreement on fixed term contracts (1999) Equal treatment (racial-ethnic origin) (2000) Equal treatment (general framework) (2000) European Company Statute (2001) Information and consultation (2002) Voluntary agreement on telework (2002) Voluntary agreement on related work stress (2004)

19. EU Employment guidelines Method of open coordination Guidelines National plans – evaluation Guidelines –Employability = flexsecurity –Entrepeneurship –Adaptability –Equal opportunities

20. SECURITY Active employment policies –Competences and skills –Job- vs. employment security Danish model –Terms of notice –Compensation –Training –Job offer

21. SOCIAL DIALOGUE A lot of contact – alsmost no contract Agreements + directive –Parental leave (1996) –Part time (1997) –Fixed term contracts (1999) –Some sectoral agreements Voluntary agreements –Telework (2002) –Stress related work (2004)

22. THE HUNGRY SPIRIT We cannot build our future by prolonging the past (Charles Handy) Someone, who thinks purely economically is a social idiot (Prof. Amartya Sen, Harvard, Nobel Prize Economy)