It is also intended that employers should not be deterred from hiring staff on account of high ancillary social charges. These proposals are to be presented to the jobs summit which will take place this month in Luxembourg. However, some member states have already expressed reservations about the setting of targets. The European Parliament's approach to the jobs summit has been similar in tone. A European approach to the job creation process has to be promoted in the context where employers believe that expansion will lead to increased profits or market share.
Employers are reluctant to take on extra labour in the face of restrictive conditions.
Employment protection, such as a statutory minimum wage, is often considered costly and unrealistic, all the more so given that countries are forced to compete within a globalised economy. Companies dare not raise their prices for fear of losing business as a result of tougher competition. On the other hand, it is argued that by paying employees a decent wage, adopting consultation practices, providing training and a measure of stability, a company is, in the long term, far more efficient and more profitable. This approach also attracts a loyal labour force. Hiring and firing only causes friction and does nothing for efficiency.