LABOUR ISSUES IN THE EUROPEAN UNION

DOING BUSINESS IN THE EU

Roger.blanpain@cer-leuven.be

CHALLENGES EU

• Referendum = No– Deeper & wider– Globalisation

• Too fast = EU = 5000 tot 15000 jobs per day lost and created• Jobs +

– 2,2% lower-skilled

– 14, 2 % high skilled

– 25,1 % higher skilled

– Security & own destiny– Fear for the future

• Time & transition

EUROPEat the beginning of the XXIst Century

• ENLARGED EUROPE: 25 STATES = = 455,000,000 people: 7% of the world population

• Roumania & Bulgaria = 500,000,000• EUROPEAN ECONOMIC AREA: 27 MEMBER STATES• 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 (2006)

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

European social model?

• Majority voting: 2/3 of States; 60% 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?

EUROPEAN SOCIAL MODEL?

• Wage cost : national– European minimum wage?– European collective agreements?– European social security?

• Systems remain national: race to the bottom?

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?

Trade union density, Europe, Japan and USACountry Union density (%)

Denmark 87.5

Finland 79.0

Sweden 79.0

Belgium 69.2

Luxembourg 50.0

Ireland 44.5

Unweighted EU average 43.8

Austria 39.8

Italy 35.4

Unweighted average of 10 candidate countries 34.1

Greece 32.5

Weighted EU average 30.4

Portugal 30.0

Germany 29.7

UK 29.0

Netherlands 27.0

Weighted average of 10 candidate countries 21.9

Japan 20.7

Spain 15.0

USA 13.5

France 9.1

Wage bargaining levels EU, Japan and USAIntersectoral level Sectoral level Company level

Austria XXX X

Belgium X XX X

Denmark XX XX X

Finland XXX X X

France X XXX

Germany XXX X

Greece X XXX X

Ireland XXX X X

Italy XXX X

Japan XXX

Luxembourg XX XX

Netherlands XXX X

Portugal XXX X

Spain XXX X

Sweden XXX X

UK XXX

USA XXX

X= existing level of wage bargaining; XX= important, but not dominant level of wage bargaining; XXX= dominant level of wage bargaining

Collective bargaining coverage, Europe, Japan and USA

Country Coverage

Austria 98 %

France 90%-95%

Belgium 90%+

Sweden 90%+

Finland 90%

Italy 90%

Netherlands 88%

Portugal 87%

Denmark 83%

Spain 81%

Average of 13 EU Member States c. 80%

Germany 67%

Luxembourg 58%

Average of 9 candidate countries c. 40%

UK 36%

Japan 21%

USA 15%

THEEUROPEAN

UNION

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.

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/•  

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/•  

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

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)

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)

EU Employment guidelines

• Method of open coordination

• Guidelines

• National plans – evaluation

• Guidelines– Employability = flexsecurity– Entrepeneurship– Adaptability– Equal opportunities

SECURITY

• Active employment policies– Competences and skills– Job- vs. employment security

• Danish model– Terms of notice– Compensation – Training– Job offer

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)

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)