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FLEXICURITY Marije Bosman Kevin De Bruycker Mathias Settele Gabriele Grosso Andreas Michael Egle Arcisauskaite Irmantas Berzauskas Mercè Valldeperas Sumarroca Inholland Hogeschool Plantijn Hogeschool University of Nürtingen University of Bologna University of Florence Mykolas Romeris University Kaunas College University of Girona IP Project Flexem ter 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 Topic 5 FLEXICURITY IP Project Flexem ter 2 The golden triangle Topic 5 FLEXICURITY IP Project Flexem ter 3 Contents I. INTRODUCTION II. CURRENT SITUATION 1. 2. 3. 4. FLEXIBILITY OF THE LABOUR MARKET SOCIAL SECURITY ACTIVE LABOUR MARKET POLICY TRADE UNIONS III. CONCLUSIONS IV. RECOMMENDATIONS Topic 5 FLEXICURITY IP Project Flexem ter 4 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 Topic 5 FLEXICURITY IP Project Flexem ter 5 Flexibility of the labour market Worker mobility • 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 Topic 5 FLEXICURITY IP Project Flexem ter 6 Flexibility of the labour market Employment Protection • Strict rules lack of flexibility unlike the Danish model • INDICATORS: Protection against dismissal probationary period employer‘s period of notice Topic 5 FLEXICURITY IP Project Flexem ter 7 Flexibility of the labour market Types of contracts open-ended labour contract part-time contract fixed-term contract temporary work contract different regulations in the various countries Topic 5 FLEXICURITY IP Project Flexem ter 8 Flexibility of the labour market Current level of flexibility in EU? • depending on the different indicators and countries • furthermore flexibility must be increased especially concerning dismissal rules Topic 5 FLEXICURITY IP Project Flexem ter 9 Contents I. INTRODUCTION II. CURRENT SITUATION 1. 2. 3. 4. FLEXIBILITY OF THE LABOUR MARKET SOCIAL SECURITY ACTIVE LABOUR MARKET POLICY TRADE UNIONS III. CONCLUSIONS IV. RECOMMENDATIONS Topic 5 FLEXICURITY IP Project Flexem ter 10 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 Topic 5 FLEXICURITY IP Project Flexem ter 11 Social Security • INDICATORS: unemployment benefits unemployment rate Denmark Netherlands Belgium Spain Italy Germany Lithuania Europe 3,2% 3,6% 7,7% 8,5% 6,7% 7,9% 5,7% 7,6% Topic 5 FLEXICURITY IP Project Flexem ter 12 Social Security Pensions GDP rate for social security Denmark Netherlands Belgium Spain Italy Germany Lithuania Europe 34% 28,5% 29,3% 20,0% 26,4% 29,5% 17% 27% minimu m wages Topic 5 FLEXICURITY IP Project Flexem ter 13 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 Topic 5 FLEXICURITY IP Project Flexem ter 14 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 Topic 5 FLEXICURITY IP Project Flexem ter 15 Active Labour Market Policy • Life long learning (LLL) an attitude to open new ideas, decisions, skills and behaviours Denmark Netherlands Lithuania Belgium Italy Spain Germany 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) Topic 5 FLEXICURITY IP Project Flexem ter 16 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 Topic 5 FLEXICURITY IP Project Flexem ter 17 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 Topic 5 FLEXICURITY IP Project Flexem ter 18 Trade Unions Country's Trade union representativity 0% 20 % 40 % 60 % 80 % 100 % percentage Belgium Denmark Finland Germany Italy Lithuania Spain The Netherlands % of total national union membership in 2003 Topic 5 FLEXICURITY IP Project Flexem ter 19 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 Topic 5 FLEXICURITY IP Project Flexem ter 20 Final Conclusion • Question: Would there be a possibility to have a general flexicurity model in Europe? „golden triangle“ differences general policy Topic 5 FLEXICURITY IP Project Flexem ter 21 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 Topic 5 FLEXICURITY IP Project Flexem ter 22 Recommendations • Flexibility of the labour market investing in employability flexible level of contracts • Social Security minimum expenditure in social security effective taxation retirement age Topic 5 FLEXICURITY IP Project Flexem ter 23 Recommendations • Active Labour Market Policy education and LLL expenditure on ALMP Private Agencies • Role of Trade Unions Topic 5 FLEXICURITY IP Project Flexem ter 24 Recommendations • Modernisation and fundamental rights Role of labour law Topic 5 FLEXICURITY IP Project Flexem ter 25 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 Topic 5 FLEXICURITY IP Project Flexem ter 26 Annex – Leave Schemes Netherland s Lithuania Annual/ordinary Yes Yes Yes Yes Yes Yes Maternity Yes Yes Yes Yes Yes Yes Parental Yes Yes Yes Yes Yes Yes Carer’s Yes Political or public duties Belgium Yes Spain Germany Yes Yes Yes/No Study/learning Yes Part-time pension Yes Yes Sabbatical Yes Yes Sickness Yes Topic 5 FLEXICURITY Italy Yes Yes Yes Yes IP Project Flexem ter Yes Yes Yes Yes (Yes) Yes Yes Yes 27 Annex – Employment Protection Employment Protection legislation Particular restrictions against dismissal of specific persons maximum probationary period Denmark Yes Yes 3 months 6 months Netherlands Yes Yes 2 months 2 months Lithuania Yes Yes 6 months 4 months Belgium Yes Yes 14 days/ 6 months 8 weeks/18 months Italy Yes Yes 6 months collective labour agreement Spain Yes Yes 6 months 30 days Germany Yes Yes 6 months 7 months Topic 5 FLEXICURITY IP Project Flexem ter Maximum period of notice 28 Annex – Social Security • Unemployment rates Denmark Netherlands Belgium Spain Italy Germany Lithuania Europe 3,2% 3,6% 7,7% 8,5% 6,7% 7,9% 5,7% 7,6% • GDP rate for social security Denmark Netherlands Belgium Spain Italy Germany Lithuania Europe 34% 28,5% 29,3% 20,0% 26,4% 29,5% 17% 27% Topic 5 FLEXICURITY IP Project Flexem ter 29 Active Labour Market Policy • Financing concept of life long learning (LLL) Denmark Government Companies Worker Topic 5 FLEXICURITY X Netherlands Lithuania Belgium Italy Spain X X X X X X X X X X IP Project Flexem ter Germany X X X X 30