Does the European Commission Definition of Flexicurity Favour Flexibility over Security

1
Does the European Commission Definition of
Flexicurity Favour Flexibility over Security?

• CICERO FOUNDATION
• PARIS SEMINAR 11 October 2007

Maria Jepsen European Trade Union Institute for
Research, Education and Health and
Safety http//www.etui-rehs.org
2
The rise of flexicurity in Europe

• This concept of "flexicurity" is a way of
  ensuring that employers and workers feel they
  have the flexibility, but also the security they
  need. José Manuel Barroso
• Je pense enfin à la nécessité de créer de
  nouvelles formes de flexibilité et de sécurité
  ce que l'on appelle la "flexicurité".
  
  Vladimír pidla (Employment Commissioner)
• Renewed Lisbon strategy, Employment in Europe
  report, Green paper on labour law, common
  principles, etc.
• Informal summits, Social Summit, conferences etc.

3
The concept of flexicurity

• About positive and balanced combinations between
  different types of flexibility and different
  types of security
• Win-win approach catering to workers and
  employers
• Open concept many ways to combine flexibility
  and security
• Not a new way of thinking
• Gösta Rehn (WWII)
• Sorge and Streek Diversified quality production

4
Why promote flexicurity (2)

• Flexicurity falls into the realm of the European
  Employment strategy gt first direct mention in
  2006
• Main reasons for adopting flexicurity concept
• Disseminator of knowledge and best practice
• Broker of interest
• Lisbon, European Capitalism and the European
  Social Model

5
The COM as disseminator of knowledge and best
practice

• Main objectives of EES policy-learning and
  policy transfer via Open Method of Coordination
• Focus on employment rates
• Highest rates NL (73.2) and DK (75.9)
• Average EU25 63.8
• Flexicurity countries are NL and DK, each their
  own way.

6
The COM as broker of interest

• Commission has role as broker between economic
  interest and national (political) interests.
• Involvement of social partners.
• Reconcile different cognitive and normative
  frameworks.
• Call for balance between flexibility and security
  has always been part of the EES.

7
The COM as broker of interest

• Actors do not understand the functioning of the
  labour market in the same manner and they might
  not have the same final goal
• Impacts on choice of policies and way of
  reasoning with change of economic climate and
  ideology of government the concept is understood
  differently.

Flexicurity
Market-driven allocation of employment will
provide the necessary security
Guaranteed rights and high job and income security
8
Lisbon, European capitalism and the European
Social Model

• Commitment to the ESM and that social and
  economic progress should go hand in hand
• Apparent consensus around providing health care,
  education and social cohesion
• Advocating modernisation of the ESM in order to
  face the challenges of globalisation,
  technological changes and demographics.
• Flexicurity translates these ideas and presents
  it in one word.

9
The interpretation (1)

• The main thrust of the EU recommendation on
  flexicurity is to encourage a shift from job
  security to employment security
• Need for transitions and deal with segmented
  labour markets
• Flexibility
• Flexible and reliable contractual arrangements
  (fixed-term, temp agency work, )
• Less employment protection (protecting people
  instead of jobs)
• Any job is better than unemployment
• Security
• From protection against risk to increasing
  capacity to adapt
• Life-long learning fostering employability
• Active labour market policies
• Modernization of social security systems social
  security support during periods without
  employment reinforcing incentives to take up
  jobs.
• Emphasis on flexibility, not win-win approach

10
The interpretation (2)

• Main idea go from job protection towards
  employment protection.
• Why transitions inevitable and segmented labour
  markets.
• How Decrease ELP (employment protection
  legislation) and provide LLL and activation.
• Translation Can no longer protect against risk
  but need to adapt to risk gt big change for many
  countries.

11
The interpretation (3)

• Focus on dismissal protection Level of EPL
  rather than construction of EPL.
• LLL done it for 10 years and little results
• Activation focus on work-fare rather than
  learn-fare (job search coursed and job clubs)
• Modernisation of social protection give more
  incentives to work. Social policies aimed at the
  underprivileged and those furthest away from the
  labour market
• Finances sustainable budgetary policies

12
The interpretation (4) Indicators

• A flexible contractual arrangements
• EPL
• Diversity of contractual working arrangements
• B Comprehensive LLL strategies
• Numbers and not quality
• C. Effective active labour market policies
• Expenditure on active and passive labour market
  policies (GDP)
• Expenditure per unemployed person
• D. Modern social security systems
• Net replacement ratios
• Unemployment traps
• Number of participants in active labour market
  policies
• Share of people not having been offered a job or
  activation measure.
• E. Labour market outcomes
• Employment rates
• Youth unemployment ratio
• LT unemployment rate
• Growth in labour productivity
• Quality in work

13
Balanced ?

• Not balanced and hardly new.
• Emphasis on economic goals instead of social
  goals
• Social goals capacity to change and competitive
  solidarity.
• The discourse and broader theoretical approach is
  ready.
• Flexibility side well developed however the
  security side remains blurry.
• What about employment creation? Real employment
  security follows from high levels of employment.
  Flexicurity does not create employment.
• Are these the right elements in order to
  guarantee employment security and de-segmented
  labour markets??
• Little scope for grand trade-offs

14
Conclusions

• Steer the flexicurity debate away from its
  present focus on reducing job protection and
  increasing the use of flexible contracts
• Focus more on upgrading and creating positive
  conditions for mobility without reducing rights
• Bring employment creation back into the debate