Flexicurity

Concept and practice

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Subjects Definition of flexicurity Flexibility: different interests of employees and

employers Flexibility: economic context Labour protection Dealing with different interest positions Flexicurity: areas of change The “golden triangle” Case study: flexicurity framework in the Netherlands International comparison Assignment: perspective for flexicurity in Turkey

Definitions….

Flexibility: Elimination of barriers of formal or customary rules that

lead to rigidity on the labour market (both supply and demand side).

Security: Regulation and facilities providing workers with safety in

employment and income.

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Definitions of Flexicurity… “Social protection for flexible work forces” (Klammer and

Tillman, 2001)

“A policy strategy that attempts - synchronically and in a deliberate way –

1. to enhance the flexibility of labour markets, the work organisation and labour relations,

2. and to enhance security – employment security and social security – notably for weaker groups in and outside the labour market.” (Wilthagen and Rogowski, 2002)

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One more definition…. Flexicurity is…

1. a degree of job, employment, income and combination security that facilitates the labour market careers and biographies of workers with a relatively week position and allows for enduring and high quality labour market participation and social inclusion,

- while at the same time providing

2. a degree of numerical (both external an internal), functional and wage flexibility that allows for labour markets' (and individual companies') timely and adequate adjustment to changing conditions in order to maintain and enhance competitiveness and productivity.” (Wilthagen & Tros 2004)

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Different interests in flexibility

Employee Working hours Holidays Study leave Sabbatical Maternity Parental Family care (emergency) Older workers Disability – diminished

capacity

Employer Working hours Work schedule Place of work Qualification level Experience level Adaptability level Contract conditions & form Contract duration Contract termination Labour costs – (wage flexibility)

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More on employer’s interest Working hours:

Daily Weekly Monthly Yearly

Working schedule: Day time Day shifts Week shifts

Working place Probation period Contract form:

open-end contract part-time contract fixed-term contract temporary work contract

Contract duration Contract termination

Procedures Notice period

Qualification level Experience level Adaptibility level Labour costs (wage flexibility)

Performance appraisal Output-related Turnover-profit-related

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Economic context for flexibility Economic needs vary Technology has made economic developments go

faster – smaller world Labour market needs (demand side) must “breath

optimally” with economic needs in order to: Optimise economic performance Optimise conditions for sustainable employment High employment level is best condition for growing

income

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Determinants for flexibility: labour protection (Regulation for) Contract forms Regulation for private temporary employment agencies Probation period Protection against dismissal

General procedures – external authorisation? Dismissal prohibition for certain groups and/or circumstances

Employer‘s period of notice Employee‘s period of notice Leave schemes Unilateral transfer of personnel by employers Limitation of the employee’s liberty to switch employers Regulation for business take-overs

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Dealing with different interest positions By law

Directive & descriptive Framework: minimal requirements and provisions/conditions

By collective bargaining agreement: Directive & descriptive Framework: minimal requirements and provisions/conditions

By individual agreement

Flexibility and security are excellent themes for trade-offs: negotiations

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Playground for Flexicurity Legislative:

Labour laws & regulation Labour market policies Life-long-learning and educational

facilities Health & safety regulation Collective bargaining laws &

regulation Works councils regulation Economic laws (business take-

overs) Social security laws and

regulation Tax policies (Regulation for self-employment)

Infrastructure: Sound vacancy registration Active flex/temp agencies Facilities for adult education

& training Adapted control system (child care facilities)

Culture: Awareness employers Willingness employees

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The “Golden Triangle”

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Flexibility – Security Matrix

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Summarising Flexibility in labour relations predominantly economic context However:

There are also many employees’ interests in flexibility Social security arrangements can function as a stimulus and a safety net

This makes flexicurity excellent for trade-offs / negotiations between TU and employers Flexibility needs tailor made arrangements – more on sector and company level rather

than in labour laws Labour laws can have an important – different – role as framework law with minimum

provisions Flexibility needs well functioning employment services and modular VET Simple flexibility arrangements are part-time work and moving from job-security to

employment security A flexible labour market is an important competitive condition

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Flexicurity framework in the Netherlands Starting point

Dual system of dismissal law for (open-end) employment contracts, “preventive nature”

Before dismissal, employers have to address either: The public employment service Or the lower courts

High level of “a-typical workers”: Workers in temporary employment agencies without contract “0-hour contracts” and minimal (flexible) contracts

Flexicurity debate started in 1995 Bi-partite, tri-partite and parlementary deliberations and negotiations Concluded in Law on Flexibility and Security 1999

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Flexicurity - flexibility measures:

More possibilities for (consecutive) temporary contracts Maximum length of time for temporary work scrapped Notice period is set on one month in principle Shortened and easier dismissal procedures Employees have a conditional right to expand/reduce their working hours. Facilitations for improved combinations of ‘work and care’. More possibilities for employers to make the length of the workdays and

workweeks dependent on business activity More possibilities for sectors and companies to make tailor made

arrangements for contracts and working time, deviating from law standards

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Flexicurity - security measures:

Strengthening position of a-typical workers: Assuming existence of an employment contract Conditional assumption of agreed working hours

Minimum pay of 3 hours when a worker is called for work 0-hour contracts: employers have to resume paying for non-worked hours

after six months Temp-agency-worker get normal employment contract after the first 26

weeks Requests to terminate employment contract of occupationally disabled

employee must be accompanied by a reintegration plan

Collective Bargaining Agreement for workers in temporary work agencies

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Results of flexicurity?

No – yes, partly Identified economic policy: knowledge, services & trade

economy Active enterprises with multinational focus Sound image – true or not true…. Easiness of doing business Social (partnership) climate Educational policies and facilities Social security & flexibility arrangements

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Results Netherlands

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Developments Netherlands

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International comparison – part time work

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International comparison – temporary contracts

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International comparison: market penetration temp agencies

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International comparison: number of temp agencies

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International comparison: reasons for accepting temp work

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International comparison: Flexicurity arrangements

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•Security• +

•Source: IP Flexum 2006• -

•+•Flexibility -

•Italy

•Belgium

•Finland•Germany

•Spain

•Netherlands•Denmark

Group assignment

How does Turkey score in a flexicurity framework Could flexicurity help in making Turkey’s labour force more

competitive? Can it reduce unregistered employment? Do you see opportunities? Where? What is essential?

20 minutes group discussion 5 minutes prepare report 5 minutes presentation

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