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FLEXICURITY

FLEXICURITY. Marije Bosman Inholland Hogeschool Kevin De Bruycker Plantijn Hogeschool Mathias Settele University of Nürtingen Gabriele Grosso University of Bologna Andreas Michael University of Florence Egle Arcisauskaite Mykolas Romeris University

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FLEXICURITY

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  1. FLEXICURITY Marije Bosman Inholland Hogeschool Kevin De Bruycker Plantijn Hogeschool Mathias Settele University of Nürtingen Gabriele Grosso University of Bologna Andreas Michael University of Florence Egle Arcisauskaite Mykolas Romeris University Irmantas Berzauskas Kaunas College Mercè Valldeperas Sumarroca University of Girona

  2. Objectives • Description of the concept ‘flexicurity’ as the golden triangle • Comparison of the current situation in the participating countries in the context of the ‘golden triangle’ • Conclusions on the possibilities to have a universal flexicurity model working for a whole Europe • Recommendations resting upon the analysis of current situation on what could be done in the member states and on the European level using the ideas and concepts of flexicurity Topic 5 FLEXICURITY

  3. The golden triangle Topic 5 FLEXICURITY

  4. Contents • INTRODUCTION  • CURRENT SITUATION • FLEXIBILITY OF THE LABOUR MARKET • SOCIAL SECURITY • ACTIVE LABOUR MARKET POLICY • TRADE UNIONS • CONCLUSIONS • RECOMMENDATIONS Topic 5 FLEXICURITY

  5. Flexibility of the labour market Labour market flexibility refers to the degree in which labour markets quickly adapt to fluctuations and changes in society as well as in the economy or production. • point of departure: • globalisation • technological change • international competition • unemployment • Flexibility is necessary Topic 5 FLEXICURITY

  6. Flexibility of the labour market Worker mobility • INDICATORS: • employee‘s period of notice • leave schemes • unilateral transfer of personnel by employers • limitation of the employee’s freedom to elect a new employer • average length of service Topic 5 FLEXICURITY

  7. Flexibility of the labour market Employment Protection • Strict rules • lack of flexibility • unlike the Danish model • INDICATORS: • Protection against dismissal • probationary period • employer‘s period of notice Topic 5 FLEXICURITY

  8. Flexibility of the labour market Types of contracts • open-ended labour contract • part-time contract • fixed-term contract • temporary work contract  different regulations in the various countries Topic 5 FLEXICURITY

  9. Flexibility of the labour market Current level of flexibility in EU? • depending on the different indicators and countries • furthermore flexibility must be increased  especially concerning dismissal rules Topic 5 FLEXICURITY

  10. Contents • INTRODUCTION  • CURRENT SITUATION • FLEXIBILITY OF THE LABOUR MARKET  • SOCIAL SECURITY • ACTIVE LABOUR MARKET POLICY • TRADE UNIONS • CONCLUSIONS • RECOMMENDATIONS Topic 5 FLEXICURITY

  11. Social Security Social security - a regulation that gives the employees security for employment and income irrespective of developments on the labour market or developments in the employee’s own situation High social security – a precondition for flexible labour market in the flexicurity model Topic 5 FLEXICURITY

  12. Social Security Denmark Netherlands Belgium Spain Italy Germany Lithuania Europe 3,2% 3,6% 7,7% 8,5% 6,7% 7,9% 5,7% 7,6% • INDICATORS: • unemployment benefits • unemployment rate Topic 5 FLEXICURITY

  13. Social Security Denmark Netherlands Belgium Spain Italy Germany Lithuania Europe 34% 28,5% 29,3% 20,0% 26,4% 29,5% 17% 27% • Pensions • GDP rate for social security • minimum wages Topic 5 FLEXICURITY

  14. Contents • INTRODUCTION  • CURRENT SITUATION • FLEXIBILITY OF THE LABOUR MARKET  • SOCIAL SECURITY  • ACTIVE LABOUR MARKET POLICY • TRADE UNIONS • CONCLUSIONS • RECOMMENDATIONS Topic 5 FLEXICURITY

  15. Active Labour Market Policy • Active labour market policies (ALMP’s)  government programmes that intervene in the labour market to help the unemployed to find work • Categories of ALMP: • public employment services • training schemes • employment subsidies Topic 5 FLEXICURITY

  16. Active Labour Market Policy Denmark Netherlands Lithuania Belgium Italy Spain Germany Participation in LLL 27.4% 15.4% 6.0 % 8.3 % 5.8% 10.5% 7.7 % Public expenditure education % GDP 8.4% 5.3% 5.2% 6.2% 4.9% 4.5% 4.8% • Life long learning (LLL)  an attitude to open new ideas, decisions, skills and behaviours • Financing concept of life long learning (LLL) Topic 5 FLEXICURITY

  17. Active Labour Market Policy • Job rotation  a transfer of employees among a number of different positions and tasks within jobs where each requires different skills and responsibilities • Current situation: • Belgium, The Netherlands - a working concept • Italy, Spain – a certain form, but it is bound to a lot of rules • Germany, Lithuania – set by law, but not working practically Topic 5 FLEXICURITY

  18. Contents • INTRODUCTION  • CURRENT SITUATION • FLEXIBILITY OF THE LABOUR MARKET  • SOCIAL SECURITY  • ACTIVE LABOUR MARKET POLICY  • TRADE UNIONS • CONCLUSIONS • RECOMMENDATIONS Topic 5 FLEXICURITY

  19. Trade Unions % of total national union membership in 2003 Topic 5 FLEXICURITY

  20. Contents • INTRODUCTION  • CURRENT SITUATION • FLEXIBILITY OF THE LABOUR MARKET  • SOCIAL SECURITY  • ACTIVE LABOUR MARKET POLICY  • TRADE UNIONS  • CONCLUSIONS • RECOMMENDATIONS Topic 5 FLEXICURITY

  21. Final Conclusion • Question: Would there be a possibility to have a general flexicurity model in Europe? • „golden triangle“ • differences • general policy Topic 5 FLEXICURITY

  22. Contents • INTRODUCTION  • CURRENT SITUATION • FLEXIBILITY OF THE LABOUR MARKET  • SOCIAL SECURITY  • ACTIVE LABOUR MARKET POLICY  • TRADE UNIONS  • CONCLUSIONS  • RECOMMENDATIONS Topic 5 FLEXICURITY

  23. Recommendations • Flexibility of the labour market • investing in employability • flexible level of contracts • Social Security • minimum expenditure in social security • effective taxation • retirement age Topic 5 FLEXICURITY

  24. Recommendations • Active Labour Market Policy • education and LLL • expenditure on ALMP • Private Agencies • Role of Trade Unions Topic 5 FLEXICURITY

  25. Recommendations • Modernisation and fundamental rights • Role of labour law Topic 5 FLEXICURITY

  26. Contents • INTRODUCTION  • CURRENT SITUATION • FLEXIBILITY OF THE LABOUR MARKET  • SOCIAL SECURITY  • ACTIVE LABOUR MARKET POLICY  • TRADE UNIONS  • CONCLUSIONS  • RECOMMENDATIONS  Topic 5 FLEXICURITY

  27. Annex – Leave Schemes Netherlands Lithuania Belgium Italy Spain Germany Annual/ordinary Yes Yes Yes Yes Yes Yes Maternity Yes Yes Yes Yes Yes Yes Parental Yes Yes Yes Yes Yes Yes Carer’s Yes Yes Yes Political or public duties Yes Yes/No Study/learning Yes Yes Yes Yes Part-time pension Yes Yes Yes Yes Yes Sabbatical Yes Yes (Yes) Sickness Yes Yes Yes Yes Yes Yes Topic 5 FLEXICURITY

  28. Annex – Employment Protection Employment Protection legislation Particular restrictions against dismissal of specific persons maximum probationary period Maximum period of notice Denmark Yes Yes 3 months 6 months Netherlands Yes Yes 2 months 2 months Lithuania Yes Yes 6 months 4 months Belgium Yes Yes 14 days/ 6 months 8 weeks/18 months Italy Yes Yes 6 months collective labour agreement Spain Yes Yes 6 months 30 days Germany Yes Yes 6 months 7 months Topic 5 FLEXICURITY

  29. Annex – Social Security Denmark Denmark Netherlands Netherlands Belgium Belgium Spain Spain Italy Italy Germany Germany Lithuania Lithuania Europe Europe 34% 28,5% 29,3% 20,0% 26,4% 29,5% 17% 27% 3,2% 3,6% 7,7% 8,5% 6,7% 7,9% 5,7% 7,6% • Unemployment rates • GDP rate for social security Topic 5 FLEXICURITY

  30. Active Labour Market Policy Denmark Netherlands Lithuania Belgium Italy Spain Germany Government X X X X X X Companies X X X X X X Worker X X X • Financing concept of life long learning (LLL) Topic 5 FLEXICURITY

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