paul cullen labour law unit dg empl european commission estoril, 6-9th march 2008

1 European Commission

Labour market reforms: a European perspective

Reflections on the debates at EU level on modernising labour law and devising

common principles on flexicurity

Paul CullenLabour Law Unit

DG EMPL European Commission

Estoril, 6-9th March 2008SINTTAV, Portugal


Livro Verde sobre as Relações Laborais, April 2006

Successful ‘flexicurity’ strategies↕↕

redefining the role of legislation +

collective bargaining,

involving the active participation of the social partners


Community Social Order


What role can labour law play in advancing a

« flexicurity » agenda to support a fairer, more

responsive, more inclusive and more competitive

labour market? Green Paper 22 November 2006


A new focus for labour law?

Deficit between existing legal framework & realities of the world of work

What role for labour law reform in boosting flexibility and security, under all forms of contracts?

How to ensure protection for new contract forms & assist successful labour market transitions, creativity and workforce mobility?

How do Legislators /Governments /social partners

test experience of their national labour law, its support for training and its labour market impact?


7 Themes x 14 Questions

• A Flexible & Inclusive Labour Market • Facilitating employment transitions• Uncertainty with regard to the law • Three Way Relationships• Organisation of Working Time • Mobility of Workers• Enforcement of employment rights &

combating undeclared work


Partial approach to reform has promoted "two-tier" labour market – divided between

stability and precariousness"insiders" and "outsiders"

Erosion of employment status Threatens to undermine:

Minimum wages; hours of work; overtime pay; holidays; social security, maternity protection;

health & safety protection;

Labour Market Segmentation


Focus on contractual arrangements

• How to promote flexibility, legitimise contract diversity, facilitate transitions from unemployment into employment and between contract forms, & facilitate entry into mainstream employment?

• How to reduce labour market segmentation, combat precariousness ?

• What changes are needed to shift the focus from “protection in a job” to sustaining security of employment in a challenging environment?


Diversity of Contracts

Transitions – negative/positive – “stepping stones”; “durable traps”;

or just “revolving doors”?

Importance of transparency of terms, responsiveness to choice on working time, etc, and voluntariness in choice of status.

Need to innovate beyond limits of gender & “job for life” stereotypes from which labour law/contractual models /social insurance evolved


Social DialogueMeans of promoting law & devolving the

selection of implementation options;Internal & Functional Flexibility:

successfully negotiated via collective agreements.

“Flexicurity”good practice models based on tripartite concordats in AT, NL and DK

Social partnership builds trust and continuity to sustain viable “trade offs”

Quality of Enforcement – focus on resources


Outcome of Public Consultation

• Institutions – EP, EESC, 25 MS, National Parliaments

• EU Social Partners [3 x SSDC]• EU Industry bodies, NGOs, etc• National Social Partners, • National NGOs & regional authorities• Enterprises• Labour lawyers & “Think Tanks”• Individuals

> 450 responses


Social Partner Responses• Why public consultation, not Article 138 social

partner consultation?

• “The autonomy of Labour Law” Instrumental purpose (vis-a-vis Lisbon Strategy, etc) or sui generis based on Fundamental Rights

• Too restrictive a focus on individual employment relationship) ?

• Relevance of “Insider / Outsider” dichotomy – do vulnerable workers count as “outsiders”?

• Prioritise the Open-ended contract or new flexible work contracts

continued/


Social Partner Responses (continued)

• Relevance of the design & severity of employment protection measures

• Labour law & commercial law codes -respective contract forms should be distinguished

• Subsidiarity – shared disinclination for harmonisation of labour rules or framing a uniform Community definition of “worker”

• Integrity of Industrial Relations systems – but some convergence necessary to achieve a level playing field and to avoid social dumping

• Differences in views on “added value” of EU in promoting labour law reform, advancing equal treatment and setting minimum standards


Divergent Perspectives of Social Partners


Comissão do Livro Branco das Relações Laborais -

1. Cutting red tape and simplifying legislative rules;

2. Re-defining law, collective agreements and the individual labour contract are related;

3. Considering how diverse labour situations are dealt with in employment law;

4. Diversifying contractual forms; 5. Focusing attention on internal flexibility; 6. Reviewing provisions about termination of

the labour contract; 7. Collective labour law.


Community Social Order


EP Resolution 11th July 2007

• Treaty competences in social policy field & principle of subsidiarityi.e. internal limits on EU competence

• Conduct of social dialogue and its relation to Better Regulation agenda

• Development of the Open Method of Coordination of Employment Policies


The Key to Employment Transitions - Training

• Business – Legislation is not an appropriate instrument to influence the learning behaviour. Personal motivation is the key driver.

• Trade Unions – “Core of rights” should include access to training. But outcomes more important than instruments.

• European Parliament - a combination of individual motivation, employers' support, accessibility and availability of facilities

Reforms of labour law should facilitate companies'

investment in the skills of their workers, stimulate workers to upgrade their own skills and guarantee the intervention of social security systems to ensure such an approach


Flexicurity: Common Principles Commission Communication, June 2007

EU Social Partner Joint Analysis of Labour Market Challenges, October 2007

Employment Ministers, 5th December 2007

European Council, 14th December 2007

New cycle of Integrated Guidelines for Growth and Jobs (2008-2011)

Employment Ministers, 29th February ‘08


Follow Up Communication, October 2007

Communication + Services Working Document containing summary of

responses

Full publication of responses on DG EMPL website

Conclusion of the public consultation process


Integrated Flexicurity Approach4 policy components

• Modern labour law regulating flexible and reliable contractual arrangements,

• active labour market policies, • comprehensive lifelong learning

strategies • modern social protection systems

providing adequate income support during periods of unemployment.


Follow Up Communication, October 2007

Commission does not propose any new legislative initiatives

It encourages social partners to negotiate on life long learning

It identifies areas where there is a need for

further cooperation, legal clarity &

more and better information.


Areas identified for further attention

• The prevention and combat of undeclared work, especially in cross-border situations

[parallel Communication on UDW]

The promotion of training and life-long learning to ensure greater employment security over the life cycle


Identified Areas (continued)

The interaction between labour law

&social protection rules

in support of efficient labour market transitions &

sustainable social protection systems


Identified Areas (continued)

The clarification of the nature of the employment relationship to promote greater understanding and facilitate cooperation across the EU

The clarification of the rights and obligations of the parties involved in sub-contracting chains, to ensure that workers are not deprived of the effective use of their rights.


Next Steps

The Commission considers that the most

appropriate avenues for pursuing the issues

arising from the public consultation are

The national reform process under the EU's strategy for Jobs and Growth

The integrated approach to developing &

implementing flexicurity-based principles


Outcome of the public consultation on the Green Paper:

Modernising Labour Law to meet the challenges of the

21st Century

For access to the responses see the EUROPA Green Paper webpage

http://ec.europa.eu/employment_social/labour_law/green_paper_responses_en.htm

paul cullen labour law unit dg empl european commission estoril, 6-9th march 2008

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