119/04/23

Flexicurity : Flexicurity : models and systems in the EU models and systems in the EU

Flexicurity – verso i principci comuni della flexicurityFlexicurity – verso i principci comuni della flexicurity

ISFOL - Convegno Venezia, 30 di Maggio 2008ISFOL - Convegno Venezia, 30 di Maggio 2008

Greet Vermeylen, Greet Vermeylen,

European Foundation for the Improvement of Living and Working European Foundation for the Improvement of Living and Working ConditionsConditions

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Background : some of the challenges of Background : some of the challenges of globalisation and demographic changeglobalisation and demographic change

Productivity and innovation : more flexibility needed by companies

Attract and keep a motivated workforce Ageing:

Employment careers will be longer : keep workforce fit and able to work for a longer period

Fertility rate : work-life balance for men and women

Flexicurity : employment security, training, job development, ‘easing’

of transitions

Life course perspective: transitions

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From a dynamic concept ...From a dynamic concept ...

Flexibility covers an ever-widening range of situations e.g. the High Performance workplace, employment contracts, flexible working time arrangements etc

A domination of the short-term : from mass-production to ‘flexible’ tailored production, ‘shorter contracts’, changes in working hours

Hence, heterogeneity over homogeneity

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… … to a workable conceptto a workable concept

Flexibility Quantitative Qualitative

External Employment status -Non permanent non full-time contracts-> numerical/ contractual flexibility

Production system-subcontracting, outsourcing, and self-employed workers-> productive/geographical flexibility

Internal Working hours and pay

- Changes on working time-Individualisation in pay ->Time/financial flexibility

Work organisation-teamwork, multiskilling, matrix organisation, etc ->Functional/ organisational flexibility

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Quantitative flexibility : Temporary employment / Quantitative flexibility : Temporary employment / part-time work - 2007 data (LFS)part-time work - 2007 data (LFS)

Temporary employment

< 10 % BE, BU, CZ, DK, EE, IE, LV, LT, LU, HU, MT, AUT, RO, SV, UK

10-20%

EU27 14%

D, EL, FR, IT, CY, NL, SI, FI, SE

>20% ES (31%), PL, PT

Part-time work

< 10 % BU, CZ, EE, EL, CY, LV, LT, HU, PL, RO, SI, SK

10-15%

EU27 18%

ES, FR, IT, IE, LU, MT, PT, FI

>15% BE, DE, DK, NL (47%), AT,SE, UK

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Qualitative flexibilityQualitative flexibility

External The existence of subcontracting chains

Contracting out strategic activities of high added value

Contracting out non strategic activities of low added

value Internal

Job enrichment, multi-skilling, working in teams ,

project groups

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Some challenges Some challenges

Different accents over the countries: choices embedded in labour market structure and systems

External flexibility : often only for part of the workforce

Particular contractual arrangements which offer flexibility

(FTC, TAW)

Risk of labour market segmentation Internal flexibility (working time or functional flexibility)

equiping workers to deal with changes (employment security) Important to make transitions possible

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FlexicurityFlexicurity

flexicurity : integral combination of flexibility-oriented and security-oriented policies

Combination of policy measures introduced simultaneously

Need to tackle flexibility and security together

Main idea: security does not come from ‘job security’ but from security in employment and during transitions

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Flexibility and social protectionFlexibility and social protection

For employers:

social protection systems might be regarded as a burden

(inappropriateness to new economic realities) For workers in flexible forms of employment:

social protection systems are not always adapted to their

situation (not necessarily sufficient security) These forms are often stimulated by states

- > growing need to overcome pbs of mismatch between flexibility and security / flexicurity

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Social protection / labour market system : Social protection / labour market system : how to adapt to need of flexibility / flexible how to adapt to need of flexibility / flexible

workers while keeping security workers while keeping security

Employment protection regulation (EPL) Active labour market policies (activation / ALMP) Transitions (unemployment benefits) Social protection systems:

Pension schemes (how to build up decent pension over different

pillars)

Parental leave / health care / guaranteed minimum income Taking into account also a life course perspective

All systems have to adapt, but each with their own particular accents

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Aims of social protection systemsAims of social protection systems

Decommodification Short term: temporary income to overcome ‘risks’, unemployment benefits, etc Long term: contuation of income in case of structural/ long term events (disability,

pensions not linked to activities)

Employability Ways to get back into employment: re-employment, IIary status, FTC, integration

schemes in companies Can already start before ‘getting fired’/throughout the career : development of

personal projects that are not necessarily immediately profitable in the ST on the labour market, skills development / capabilities

Training, development (learning opportunities in the job), work organisation etc

3rd one : redistribution ? In some countries

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Key to combine flexibility and security : Key to combine flexibility and security : trusttrust

In the future If people believe in the future, they will take up employment,

are more flexible and combine it with having a family etc

In changes Trust that changes are not catastrophic and that the means are

there to overcome and adapt (eg Danish flexicurity model)

In work People can plan over their life without too many

inconveniences and risks for their career/pensions Job/employment interruptions /transitions Support structure to combine working & non-working life

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Measures to be undertaken to make a Measures to be undertaken to make a framework for a society of trustframework for a society of trust

Social protection systems Maternity benefits, parental leave benefits (temporary) unemployment benefits, combined with ALMP Adapted to new realities (eg pension rights for ‘non-standard’

workers) Labour market measures

Flexible working time arrangements at request of employee

Employment security / Employability: training, ALMP Smoothen transitions in fragmented careers (FT, PT, unemployment

spells) Social infrastructures

Childcare facilities, out of school care (afterschool, sick children) While combating discrimination between men and women

Taking into account different career trajectories

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Challenges posed between flexibility Challenges posed between flexibility and securityand security

Not a one fits all solution Different ways possible with very different accents Depend on the ‘system’

Historically rooted (not easy to make changes, politically difficult/courage needed / certain limits)

Economic situation of the countries

->Reflection needed on how to do this in each system !

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Flexicurity: normalisation of ‘atypical’ Flexicurity: normalisation of ‘atypical’ contractscontracts

Eg Dutch system: try and re-reflect upon ‘non-permanent contracts’ in

order to push labour market dynamics: Fixed-term contracts: get better rights Temporary working agencies: idem

‘Transition’ easing Taking into account rights accumulated for ‘life

course’

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Flexicurity: more flexibility for all workersFlexicurity: more flexibility for all workers

Austria : Increase of occupational mobility: Reform of severance pay system, which workers can ‘take’ with them

Berufsschutz

Entgeltschutz Denmark: A golden triangle between :

A high labour mobility and liberal regime of employment protection (a high

turnover of hire and fire)

A fairly generous and widespread social protection system (unemployment

benefit, cash benefit for non-insured)

An active labour market policy – job and training offers combined with

availability criteria and sanctions

+ close cooperation between social partners and gvt

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Important to ‘equip your workers’: Important to ‘equip your workers’: employment securityemployment security

In order to smoothen changes in (working) life (transitions) : very important to keep up to date your skills

Different ways to ensure continuous development of workers : training, work organisation etc

However, huge differences over countries / high or low skilled workers etc

Hence … room for reflection …

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Training in the workplace: Training in the workplace: big differences over countriesbig differences over countries

Training

0

10

20

30

40

50

60

Training paid for or provided by your employer, or by yourself if you are self-employed?Training paid for by yourself?

On-the-job training?

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Training paid by the employerTraining paid by the employeror yourself by education and type of or yourself by education and type of

employment contractemployment contract

05

101520253035404550

Primary or le

ss

Lower seco

ndary

Upper seco

ndary

Post-secondary

Tertiary

education

total eu27

Indefinite

Fixed-te

rm

Temporary

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Some of the challenges to reflect uponSome of the challenges to reflect upon Flexicurity touches upon all the spheres

National, regional, workplace AND household level

Often decisions are made at the kitchen table

Sustainability of the system Economic situation & trust

Social infrastructure for an inclusive LM (eg affordable child care, etc)

Life course : building up of rights (eg pension rights, second pillar schemes)

Risk of losers of this model:

Low qualified ?

‘Vulnerable workers’ / new generation of working poor?

-> hence : a holistic reflection needed

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Summing up … Summing up … Flexicurity : potential to enhance competitiveness :

most important element: reflect on rights and tools for workers Combination of different forms of flexibility:

With external flexibility: careful for labour market segregation / are transitions possible?

With internal flexibility: could be way to combine work and personal life (decisions at

kitchen table) way of enhancing employability/employment security for

workers (functional flexibility) Trust is vital ingredient:

Involvement of all actors (companies, social partners, governments) Employment security :

Rights: social protection rights / all pillars / life course Tools: specific attention to most vulnerable / employability

(equip workers to deal with change) / skills building / training and work organisation

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Thank you Thank you

More info : www.eurofound.europa.euMore info : www.eurofound.europa.eu

Email: gve@eurofound.europa.euEmail: gve@eurofound.europa.eu