Flexicurity – why it’s useful for crafts and SMEs ?

Gerhard HuemerUEAPME Director Economic and Fiscal Policy

5th SME Summit

Graz, April 07, 2006

Outline of presentation

Introduction – flexicurity: nothing new

UEAPME’s Futurisme Projects

Challenges for the European Social Models

Social Dialogue and Tripartite Coordination

– can they deliver?

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Introduction:UEAPME on Flexicurity

Futurisme I:• About work organisation in general

Futurisme II:• About adaptability and employability

Social Model debate:• How to implement reforms ?

Social Dialogue:• What is possible at which level?

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The Futurisme Projects

Different problems need different solutions=> independent negotiations for SMEs

Agreements too restrictive for SMEs=> more flexible working time

=> profit related earnings

=> elements to enhance employability

Increase of labour market participation => (re) integration of young, female and older

employees

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The Social Model debate

Consequences of

economic & social developments => structural unemployment / wage differentiation

=> industrial relations in a service economy

=> incentives to work / social benefit systems

=> from job-security to employment-security

Economic reforms Socal reforms => which interdependencies?

=> how to reduce transition costs?

=> reforms: too far or not far enough?

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Social Dialogue and Tripartite Co-ordination

It’s about involving the stakeholders

What’s the right level for cooperation?=> creation of win-win situations

=> negotiations versus legal competences

=> shortcomings of EU level dialogue

Areas for co-operation on EU level => economic restructuring

=> fight against undeclared work

=> solutions for the low wage sectors

=> improve training in the SME sector

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