it * COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 16.04.1997 
COM(97) 128 final 
GREEN PAPER 
PARTNERSHIP FOR A NEW ORGANISATION OF WORK 
(presented by the Commission) 

TABLE OF CONTENTS 
EXECUTIVE SUMMARY ' ill 
INTRODUCTION 1 
1 : TOWARDS A NEW ORGANISATION OF WORK WHY AND HOW ? 3 
Mass production 3 
Step-by-step improvements 3 
The flexible firm 3 
A new organisation of work, a demanding change 4 
A great potential for Europe 4 
Flexibility and security 5 
2 : POLICY CHALLENGES AND NEW PARTNERSHIPS 7 
The labour market context 7 
Modernising the legal, contractual and policy framework 7 
Education and training : lifelong learning 7 
Labour law and industrial relations 8 
Wage systems 9 
Working time : a new approach 9 
Taxation 11 
Social security 11 
Health and safety at work 11 
Environmental issues 12 
Mainstreaming equal opportunities policies 12 
Integration of people with disabilities 12 
Labour market policies 13 
Modernisation of public sector 13 
Telework 14 
Building a partnership for a new organisation of work 15 
The challenge to the social partners 15 
The challenge to policy makers 15 
3 : THE CONSULTATION PROCESS 16 
/|«t 
Executive S\ 
Why a Green Paper? 
This Green Paper is about the scope for improving employment and competitiveness through a bet­
ter organisation of work at the workplace, based on high skJl», high trust and high quality. !t is about 
the will and ability of management and workers to take initiatives, to improve the quality of goods 
and services, to make innovations and to develop the production process and consumer relations. 
The purpose of the Green Paper is to stimulate a European debate on new forms of organisation of 
work tc release this potential. The Green Paper is focused on three questions: 
c why £ new organisation of work - and how? 
G what are the policy challenges of new forms of work organisation? 
c is it possible to establish a new partnership for a mere productive, participative and ie&ming or­
ganisation cf work? 
TcwereSs a new organisation of work - why and how? 
The traditional organisation of work, based on the ideas of industrial mass production, has been 
questioned more and more during the last 20 to 30 years. A number of organisational changes have 
been tried in order to improve productivity, quality and working conditions (quality circles, just-in-
time systems, team work). 
In parallel with these many different trends there is now a more fundamental change in the organ­
isation of work, a shift from fixed systems of production to a flexible, open-ended process of organ­
isational development. This new concept of a process of continuous change is sometimes described 
as "the flexible firm" and the workplaces as high trust and high skill workplaces. There is no one 
model, but an infinite variety of models, which are constantly being adapted to the circumstances 
of the individual firm and its workers. 
The transformation can be explained by three factors, representing change: human resources, mar­
kets and technology. 
There are already a number of case studies demonstrating the potential for productivity and pros­
perity of a new organisation of work. However, the great majority of firms - and public authorities 
- are stilf in the traditional form of work organisation. The diffusion of new practices seems to be 
slow. 
The policy challenges 
The policy challenges could be summarized in one question: how to reconcile security for workers 
with the flexibility which firms need? This raises a number of issues for the public authorities and the 
social partners across the spectrum of employment, education and social policy areas: 
• how to organise the necessary training and retraining, so that the workforce can meet the in­
creasing needs for skills and competence 
• how to adapt social législation to take account of new employment trends 
• how to change wage systems along with the organisational structures on which they are based 
• how to adapt working time arrangements in the light of the new situation 
• how to take advantage of the new employment trends with regard to equal opportunities 
• how to develop more flexible organisations in the public services 
• how to provide adequate support to firms, in particular small firms, who wish to change, but lack 
the resources or expertise to do so. 
Ah 
Building a partnership for a new organisation of work 
The Green Paper invites the social partners and public authorities to seek to build a partnership for 
the development of a new framework for the modernisation of work. Such a partnership could 
make a significant contribution to achieving the objective of a productive, learning and participa-' 
tive organisation of work. 
The word framework should be given a broad interpretation. It could include everything from the 
creation of a common understanding of the importance of new forms of work organisation, through 
joint declarations, to binding contractual or legal initiatives. The level and content of such a frame­
work has to be clarified through discussions in the social dialogue. 
The Commission would like all interested to develop their views on how these objectives could be 
reached and how all policies, whether they are public policies or policies for which the social part­
ners are responsible, could be mobilized to create a new framework to modernise work and the 
economy. 
At 
INTRODUCTION : WHAT ARE THE AIMS OF THE GREEN PAPER ? 
1. This Green Paper is about the scope for im­
proving employment and competitiveness 
through a better organisation of work at the 
workplace. This need to improve the employ­
ment situation by increasing competitiveness has 
been at the heart of EU policy and was given add­
ed impetus with the publication of the White 
Paper on Growth, Competitiveness arid Employ­
ment in 1993. It has been a main theme at all the 
meetings of the European Council since then and 
is a central element in the Commission's Pact for 
Confidence in Employment. In the course of the 
discussions on the Pact, the Commission sent a 
questionnaire to the social partners and prepared 
a synthesis of the responses received1 . More re­
cently the European Council in Dublin empha­
sised the importance of adequate benchmarking. 
2. This Green Paper has also to be situated in 
the wider context of the various Community in­
itiatives related to employment, competitiveness 
and new technologies, for example, the Monti 
Group on taxation, the social security initiatives, 
initiatives in the area of new technologies, and 
the Davignon group on workers' involvement in 
Europe. 
3. The European employment strategy calls for 
an integrated approach, whereby all the rele­
vant policies, including macro-economic and 
structural policies, contribute and support each 
other in the fight against unemployment. Im­
provements in flexibility of work have been 
highlighted as essential elements of this strategy. 
For example, the European Council meeting in 
Essen in 1994 stressed the need to increase the 
employment intensity of growth, in particular by 
a "more flexible organisation of work in a way 
which fulfils both the wishes of employees and 
the requirements of competition". But while 
much has been written about the need for flex­
ibility of the labour market and its regulation, 
much less has been said about the need for flex­
ibility and security in the organisation of work at 
the workplace. 
4. One of the main aims of this document is to 
redress this balance by concentrating on this as­
pect of the wider employment debate. An im­
proved organisation of work will not of itself 
solve the unemployment problem, but it can 
make a valuable contribution, firstly, to the com­
petitiveness of European firms, and secondly, to 
the improvement of the quality of working life 
and the employability of the workforce. 
1 This summary was distributed on the occasion of the Round Table organised by the Commission with the social 
partners on 30 April 1996 on the Pact of Confidence for Employment 
2 Growth, Competitiveness, Employment: The Challenges & Ways forward into the 21st Century (Chapter 2.3 (b)) 
3 The First Action Plan for Innovation in Europe: Innovation for Growth and Employment (COM(96) 589 final) 
1 5. Research has demonstrated that a renewal of 
the organisation of work is of fundamental im­
portance for improved productivity. The White 
Paper on Growth, Competitiveness and Employ­
ment2 highlighted organisational capacity as 
one of the key components of a firm's competi­
tiveness. The Commission's First Action Plan for 
Innovation in Europe3 also stressed the impor­
tance of organisational innovation for growth in 
employment. 
6. Work organisation itself is a broad subject, 
including, as it does, most aspects of the way 
work is organised in and between firms, the re­
lation between the social partners, the organisa­
tion of the labeur market, the relationship 
between work and the organisation of society. 
There is an intensive debate about the role of 
work in the future and there are many ongoing 
research projects that will further improve our 
understanding of the new working life. 
7. In particular, the Commission's Green Paper 
on "Living and Working in the Information Soci­
ety: People First", covered a wide range of issues 
related to the introduction of new technology 
and the organisation of work, some of which are 
developed further in this Green Paper. At the 
same time there are issues dealt with in the 
present Green Paper, which are not related to 
new technologies and the Information Society, 
notably those related to the evolution of the 
workforce and of consumer requirements. 
8. The present Green Paper does not seek to 
cover all aspects of this vast area. Instead it seeks 
to concentrate on developments in work organ­
isation in firms and public bodies in the context 
of the economic and social environment. Thus in 
this paper, work organisation is taken to mean 
the way in which the production of goods and 
services are organised at the workplace. The fo­
cus is on a new organisation of work. While 
there is no one model, this concept implies, in 
particular, the replacement of hierarchical and 
rigid structures by more innovative and flexible 
structures based on high skill, high trust and in­
creased involvement of employees. The focus is 
emphatically not on short-term cost-cutting 
measures. 
9. It should be emphasised that this Green 
Paper is concerned with the organisation of 
work in all types of workplace and in all sectors 
of activity. Though much of the language, much 
AX 
of the experience and many of the examples re­
late to large firms in manufacturing industry, the 
new innovative and flexible structures are often 
just as appropriate in small firms as in large, and 
in services, including public services such as 
health, education and environmental services. 
The development of naw forms of work organ­
isation in SMEs, in particular, is of central impor­
tance, given that they are the main source of 
new jobs. 
10. The modernisation of the organisation of 
work can only be achieved by the firms them­
selves, involving management and workers - and 
their representatives - and taking into account 
the diverse nature of the situation in each sector, 
company or organisation and the speed of 
change. 
11. 3ut the new organisation of work also poses 
challenges to policy makers - whether they be 
public authorities, social partners or non-
Governmental organisations - and at all levels: lo­cal, national and European. In particular the chal­
lenge is how to develop or adapt policies which 
support, rather than hinder, fundamental organ­
isational renewal and how to strike a productive 
balance between the interests of business and 
the interests of workers, thereby facilitating the 
modernisation of working life. An essential ob­
jective is to achieve such a balance between flex­
ibility and security throughout Europe. 
12. Ail Member States are facing similar chal­
lenges both with regard to labour productivity, 
competitiveness and employment and with re­
gard to achieving the right balance between 
flexibility and security of employment. There is 
much to learn from progress made in other com­
panies and in other Member States. The Commis­
sion hopes that this Green Paper will further 
stimulate the debate at European and national 
level on the organisation of work among all the 
actors involved and that the outcome of this de­
bate will be a new framework for the modernisa­
tion of working life based on partnership. 
"A co-operative approach to a different organisation of work within the firm will improve indus­
trial relations, allow greater worker participation in decisions and potentially lead to a better 
product quality. The latter in fact represents an essential component in any strengthening of the 
competitiveness of the European economy. " - Ciampi report. 
1 : TOWARDS A NEW ORGANISATION OF WORK - WHY 
AND HOW? 
13. For almost a century the organisation of 
work was usually founded on the same basic 
principle: a hierarchical top-down organisation 
with a high degree of specialisation and simple, 
often repetitive, jobs. 
Mass Production 
14. This type of organisation was developed as a 
tool for the emerging industrial society, the 
transformation of the economy from handicraft 
via manufacturing to industrial mass production. 
Europe can be described as the cradle of the 
manufacturing society and the US as the cradle 
of the mass production system. The ideas were 
developed originally in the US car industry, 
which became the role model for successful in­
dustries. 
15. During the 20th century, this type of work or­
ganisation spread all over the industrialised 
world. The rebuilding of European industry dur­
ing the post-war period was based on the con­
cept of the mass production system. This produ­
ction system contributed for several decades to 
an unprecedented growth in productivity and 
prosperity. 
Step-by-step improvements 
16. However, during the last 20-30 years, the lim­
itations of this way of organising work have be­
come evident. One major problem has been that 
under the traditional system the work is split up 
into narrow functions with short, repetitive work 
cycles. The way work is done is prescribed in de­
tail. The system does not give sufficient room for 
a process of upgrading and innovation. For con­
tinuous improvement to be possible, it is impor­
tant to involve the workers themselves and in or­
der to be involved they must have the possibility 
of exercising judgement, developing social con­
tacts and learning. These are the points where 
the traditional mass production system becomes 
too much of a hindrance. The workplace has to 
be opened up: to flows of ideas, to suggestions, 
to learning, to improvement. Initially, this was 
done through the introduction of a parallel de­
velopment organisation, such as quality circles. 
The idea was to make step-by-step improve­
ments, day by day, to get visible results over 
time, instead of waiting for a crisis to occur. 
17. The need for such improvements has been 
more apparent the more the service sector has grown and the more services are integrated into -
the traditional production of goods. As a conse­
quence, both management and workers have 
been looking for new ways of improving produ­
ctivity and working conditions. We have seen a 
number of efforts and experiments : new forms 
of team-work, just-in-time production systems, 
lean production, "kaizen" (continuous improve­
ment), total quality management, eco-
management, benchmarking, etc. 
The flexible firm 
18. Both the traditional form of organisation 
and that based on step-by-step improvements 
still exist and will continue to do so for many 
years. But in parallel, a more fundamental 
change in the organisation of work is emerging, 
a shift from fixed systems of production to a flex­
ible, open-ended process of organisational de­
velopment, a process that offers new opportu­
nities for learning, innovation, improvement and 
thereby increased productivity. 
19. This new concept of a process of continuous 
change is sometimes described as "the flexible 
firm" and the workplaces as high trust and high 
skill workplaces. There is no one model, but an in­
finite variety of models, which are constantly be­
ing adapted to the circumstances of the individu­
al firm and its workers. The transformation can be 
explained by three factors, representing change: 
human resources, markets and technology. 
- Human Resources, in traditional economic 
thinking, labour is a factor of production similar 
to land and capital - a cost to be reduced. In a 
knowledge based economy, however, people 
represent a key resource. Organisations are val­
ued not only on the basis of their products or 
machines but primarily on the knowledge-
creating capacity of the workforce, the people 
who work for them, how they work, what work 
means to them. The rate of innovation and 
change in products and technologies is so rapid 
that the competitive advantages of companies 
and countries will be the capacity of the work­
force to create knowledge. The European work­
force of the 1990s, especially the younger age 
group, Is much better educated and trained than 
any earlier generation. About 70 per cent of this 
young European workforce have an upper sec­
ondary level education and about 20 per cent 
have a university degree. 
- Markets. Consumers are more demanding 
than ever before and they do not accept simple 
standardised products. They look for innovation, 
for variety and novelty, for high quality, both in 
goods and services. Competition in the market­
place forces firms to organise production in such 
a way that changing consumer preferences can 
be met. That creates demand for close links 
between market and production, capacity for 
continuous innovation and improvement, and a 
high degree of flexibility in production. Compet­
itiveness and success will more and more be 
based on the innovative capacity and adaptabil­
ity of firms, less and less on the traditional con­
cept of producing more of the same at low prices. The 
most innovative and flexible firms are more like­
ly to survive and expand. 
- Technology. During the last 20-30 years a new 
technological revolution has begun, based on 
the introduction of information and communica­
tion technologies, (ICTs). One of the main effects 
of the new ICTs has been a dramatic reduction in 
the cost and time of storing, processing and 
transmitting information. Such changes have a 
fundamental effect on the way we organise the 
production and distribution of goods and servi­
ces, and thereby, on work itself. At the begin­
ning of this technological revolution, the eco­
nomic result of the introduction of new informa­
tion systems was rather poor in terms of produc­
tivity growth. But, more recently there is a grow­
ing number of examples where the introduction 
of ICTs has met the highest expectations. The 
main message from these examples is the need 
for an integrated approach, linking the introduc­
tion of ICTs with the education and training of 
the workforce and with organisational renewal. 
A new organisation of work, 
a demanding change 
20. These three factors - human resources, mar­
kets and technology - can have a fundamental 
impact on the way workplaces are organised. 
21. The new flexible firm is a demanding form of 
organisation of work. That goes for the introdu­
ction of a new organisation, as well as for the re­
quirements of skills and competence and the de­
velopment of industrial relations. In the new de­
centralised and network-oriented organisations, 
workers perform a range of tasks, rather than 
pass the job on from one to another. The skill 
structure is changing. Good skills in numeracy 
and literacy as well as with computers, the abil­
ity to interact with new technology and with en­
vironmental requirements, are becoming more 
and more important. There is a need not only for higher skills but also for broader skills. That is 
why continuous learning, the updating and up­
grading of skills and competencies, as well as in­
vestment in human capital, are of crucial impor­
tance for the improvement of the competitive- -
ness and productivity of the European economy. 
22. Furthermore as workers develop a wider 
range of skills and become more adaptable, the 
new organisation of work will further facilitate 
geographical mobility. This in turn will enable 
workers to exploit their potential more fully and 
exercise their rights in this respect. 
23. The new organisation of work will challenge 
industrial relations. The old organisation is char­
acterised by specialisation of tasks and skills and 
the separation of design from the production 
phase. Industrial relations will require, in a new 
organisation of work, to be built on a basis of co­
operation and common interest. Therefore, new 
forms of industrial relations have to be devel­
oped, including, for example, greater participa­
tion by employees, since efficient production re­
quires enhanced levels of both trust and commit­
ment in firms. 
A great potential for Europe 
24. European industry, manufacturing as well as 
services, has many underlying strengths. One 
such strength is the Single Market, the biggest 
economic entity in the world. Sixteen million 
firms established in this market have a great ad­
vantage in being close to 370 million consumers. 
The new way of organising work that is slowly 
emerging in Europe could be another strength, 
by improving the ability to adjust production to 
the new market conditions of ever changing con­
sumer preference. In this way the flexible firm 
could offer a sound basis for fundamental organ­
isational renewal built on high skill, high produc­
tivity, high quality, good environmental manage­
ment - and good wages. 
25. It is important to recognise that European 
companies and public services have already in­
troduced a great number of organisational inno­
vations, which are in tune with European condi­
tions. There are a number of case studies - some 
examples are presented in the Report from the 
Commission's Competitiveness Group - demon­
strating the potential for productivity and pros­
perity of a new work organisation. The findings 
confirm that these innovations in the organisa­
tion of firms lead to improved business perfor­
mance, better job protection and job enrich­
ment. The same message comes from the German 
programme on Work and Technology and the 
Scandinavian programmes, showing that the firms 
O that have restructured their work organisation 
and industrial relations have been far more suc­
cessful than those that have attempted to meet 
the challenges solely through the introduction of 
advanced manufacturing technology. These pro­
grammes also show that trust and commitment 
cen be effectively combined with sound forma! 
and contractual agreements. However, many firms 
- znd public authorities - are still in the age-old 
work organisation: hierarchical, with a high de­
gree of specialisation and low degree of integra­
tion and product innovation, defensive methods 
of restructuring and political demands for reduced 
responsibility in relation to the workforce. The dif­
fusion of new practice seems to be slow. 
26. Their traditionally informal structures, 
coupled with the smaller scale of operations, 
have enabled SMEs to avoid the organisational 
sclerosis which has hindered the adaptation of 
many large firms. However, the informal nature 
of relationships in SMEs gives rise to a different 
set of problems in relation to work organisation: 
in particular the lack of resources necessary for 
systematic organisational planning tends to 
hinder long-term personnel development. As a 
result, although SME's are potentially better able 
to adopt flexible forms of work organisation, 
further efforts need to be made if they are to 
exploit fully the opportunities presented. 
27. It has to be acknowledged that impr­
ovements in productivity can result in a 
reduction in employment in one part of the 
production chain. But improved productivity is 
necessary if real wages and profits are to be 
increased. Higher wages and profits lead in turn 
to the craation of employment in a number of 
ways: in the firm itself, in its suppliers, by 
increasing demand and by creating the wealth to 
pay for the employment intensive services, which 
are needed in fne future: in health, education, 
leisure and care for the sick and elderly to name 
but a few*. 
28. The choice is not, in fact, between be:ng 
more productive or staying as we are. It is 
between remaining competitive or reiegation to 
the second division. This is not an easy option. 
There ara a number of obstacles to the 
modernisation of firms and one such obstacle is 
the lack of awareness of the possibilities and of 
the potential* of a new way of organising work. 
There is a need for information and debate and 
for initiatives that can stimulate the deve­
lopment of new forms of work organisation, not 
least among the many SMEs. 
29. Furthermore, alt change creates turbulence and uncertainty. There are balances which have 
to be struck: 
• between young workers and older workers 
• between the well-educated and the less well-
educated 
» between the need for high production levels 
and the health of workers and 
• above aiJ, between flexibility and security. 
IFbxfbiGHy and Security 
30. The potential economic benefits of a new-
form of work organisation based on 
participation and trust are substantial, with 
potential gains for everyone. Public policies need 
to be built on this understanding. However, it 
has to be recognised that certain categories of 
workers in some areas at different periods in the 
economic cycle wHI have more difficulty in 
adjusting to the new situation than others: these 
include, in particular, older workers, younger 
workers with low levels of qualification and 
workers who live in areas of high unemployment 
and are not mobile. Similarly while there are 
considerable benefits for firms and workers 
engaged in core activities, care is needed to 
ensure that a!2 workers. Irrespective of their 
contractual status, share in the 'potential benefits 
of the new work organisation. 
31. The key issue for workers, management, the 
social partners and policy makers alike is to strike 
the right balance between flexibility and 
security. This balance has many aspects. The 
reorganisation of work often causes uncertainty. 
Workers need above all to be reassured that 
after the changes are made they will still have a 
job and thai this job wil! last for a reasonable 
time. At the same time, once the changes are 
made, the new organisation of work can offer 
workers increased security through greater 
involvement in their work, more job satisfaction 
and the possibility of developing skills and long-
term employability. This security for workers can 
a!so provide emp'evsrs with increased security in 
the form of a more stable, versatile and 
contented labour force. Employers need greater 
flexibility in order, in particular, to cope with 
fluctuations in demands for their goods and 
services. In particular, they are often looking for 
interchangeable fxiifs and adaptable working 
patterns, including working time arrangements. 
Such flexible arrangements can also have 
advantages for employees, provided thst they 
are negotiated : vor example working time 
arrangements which si:st their private or family 
commitments. 
4 The employment potential in this area is set out in the Commission's report on "Local development and employment 
initiatives: an investigation in the European Union" (SEC/S64/9S) 
32. It is the achievement of this balance between 
flexibility and security which is at the heart of 
the partnership for-a new organisation of work, 
which is the subject of this Green Paper. So far 
we have discussed the implications for employers and workers. But if this balance is to be achieved, 
there is a need to adapt a wide range of public 
policies accordingly. These policy challenges will 
be discussed in the next chapter. 
Questions 
Do you share the views expressed above on the evolution of the organisation of work and the 
main driving forces behind the new developments? Are there other factors that should be includ­
ed? 
What is your experience of firms that have introduced new forms of organisation of work? 
Are there particular experiences in respect of small firms, which you would like to mention? 
Are there examples of new business strategies, which appear more successful in dealing with such 
changes? 
2 : POLICY CHALLENGES AND NEW PARTNERSHIPS 
The labour market context 
33. There is a broad public debate about the de­
velopment of labour markets and working life. 
This debate is linked to new technologies, the 
globalisation of our economies and to new forms 
of work organisation. 
34. The new forms of work organisation are as­
sociated with greater specialisation by firms, 
which leads to new employment-creating oppor­
tunities for sub-contractors. However, some of 
the changes that we are witnessing today are 
caused not by a new organisation of work and 
new technology, but by a lack of adaptation and 
modernisation. The downsizing of many firms is 
often the consequence of adverse macro-
economic conditions and bad management. 
35. Some of the problems are caused by a failure 
to integrate new technologies with changes in 
the organisation of work and the upgrading of 
skills and competence. 
36. It is difficult to isolate these factors in statis­
tics on the development of the labour market. 
Therefore caution is needed when studying such 
statistics in order to avoid blaming the new or­
ganisation of work for the problems created by 
quite different factors. 
37. A few facts can serve as a background to the 
further discussion of the challenges to existing 
policies and the need to modernise our policies: 
- employment has increased in the Mem­
ber States of the EU in 15 of the 23 years since 
1973. The total increase in these years of employ­
ment growth reached 16 million jobs. However, 8 
million of these jobs were lost during periods of 
economic downturn, giving a net employment 
growth of 8 million. This contrasts with the 
growth of the working age population by nearly 
28 million people over the same period. Thus, 
the main problem is that job growth has not 
been strong enough to absorb the growing 
working age population. 
- there are many more jobs requiring 
higher and broader skills; there has been a 
marked shift in the structure of employment to­
wards higher-skillecf jobs that are, in general, 
more stable. Professional, technical and manage­
ment personnel grew by 25 per cent, while the 
number of production workers decreased. Those 
who have lost their old jobs have had great dif­ficulties in returning to a working life with new 
and higher skill requirements. 
- the level of permanent employment remains 
high; temporary jobs account for a relatively 
small proportion, around 12 per cent of employ­
ees. Such jobs are often important as entry jobs; 
for example, in 1995 50 per cent of the unem­
ployed who found a job took temporary posi­
tions. A recent study, undertaken by the ILO, 
shows that job tenure has not been reduced in 
recent years. 
- working time has become more flexible; about 
16 per cent of employees work part-time and 
such work has become more common. Only 5 
per cent of men work part-time while 30 per 
cent of women work part-time, mainly in the 
service sector. 
- self-employment has been stable over the last 
20 years; self-employed counted for about 15 
per cent of the total workforce in 1975 and that 
figure has not increased at all. However, if agri­
culture is excluded, there is evidence of some 
growth. 
38. These patterns are important to recognise as 
a basis for the discussions on policies supporting 
flexibility and security in working life. A more 
detailed description of the trends in the labour 
market in the Member States is available in the 
Commission's publication "Employment in Eu­
rope 1996". 
Modernising the legal, contractual 
and policy framework 
Education and training: 
lifelong learning 
39. The new forms of work organisation require 
a much better educated and trained workforce, 
including in particular management. The flexibil­
ity and adaptability of skills are key. Continuous 
training and retraining are essential: in 10 years' 
time 80% of the technology we operate today 
will be obsolete, and replaced by new, more ad­
vanced technologies. By that time, 80% of the 
workforce will be working on the basis of formal 
education and training more than 10 years' old. 
40. Europe needs to develop a new architecture 
of lifelong education and training which involves 
not only all parts of education and training 
systems but also firms and individuals them-
selves. In addition, a culture of learning and 
training throughout working life needs to be ful­
ly embedded. It is hardly possible to over­
estimate the importance of action in this area, 
which has been the subject of a number of Com­
mission initiatives. For example, the Com­
mission's Green Paper "Living and Working in 
the Information Society: People First" identified 
four crucial areas: 
• Laying the best foundations: the foundations 
cf our knowiedge and skills are laid during the 
first years of education, and the education pro­
cesses involved need to evolve with the develop­
ment of new technology and with the new re­
quirements for sustainable development. Teach­
ers and trainers in particular must be targeted 
and the quality of their initial training and con­
tinuing professional development secured. 
• From teaching to learning: education and 
training institutions must be swiftly reoriented 
so that learning institutions are much more re­
sponsive to changes in the skili needs of business 
and industry. One of the key objectives identified 
in the Commission's White Paper "Teaching and 
Learning: towards the Learning Society5" was 
the need to bring schools and the business sector 
closer together to better complement each oth­
er as places of learning. 
• The learning company requires that new 
forms of partnership between business, other or­
ganisations and educators are needed to ensure 
that the new and changing skills required are 
made available. The crux of this approach is con­
tinually to reinforce the employabiiity of the 
workforce, as well as to increase the competence 
of managers and decision-takers through train­
ing. 
• Lifelong learning for all: there is a strong 
need to transform passive labour market policies 
into active policies for human resource invest­
ment, in line with the agreement at the Florence 
Summit, whereas at present not more than 7 per 
cent of the unemployed are offered training 
which would help to equip them to re-enter the 
labour market. 
Questions 
How can firms which seek to introduce new 
forms of work organisation optimise their in­
vestments in human resources? 
What are the obstacles, including accounting 
and tax constraints, to the promotion of in­
vestment in human resources ? Labour law and industrial 
relations 
41. The new organisation of work calls into ques­
tion the basic foundations upon which labour 
law and industrial relations are built. 
42. The concepts of work-place, firm, factory 
and, in particular, the notion of employer are 
undergoing a process of diversification, leading 
to an erosion of traditional employment rela­
tionships. Downsizing, outsourcing, subcontract­
ing, teleworking, net-working and joint ventures 
bring new dimensions to the world of work for 
which traditional labour law provisions do not 
appear to have adequate answers. 
43. All this raises fundamental questions con­
cerning the balance of regulatory powers 
between public authorities (legislation) and the 
social partners (collective bargaining) and 
between the social partners and individual em­
ployees (individual employment contracts). In 
particular the possibility of derogating from leg­
islation by collective agreements and the scope 
for individual contracts versus collective agree­
ments are central issues on today's European in­
dustrial relations agenda. 
44. In this context, the likely development of la­
bour law and industrial relations from rigid and 
compulsory systems of statutory regulations to 
more open and flexible legal frameworks may 
pave the way for a new balance of reguiatory 
powers between the State and the social part­
ners, in particular in the areas connected with 
the internal management of firms. Within this 
framework the relationship between employers 
and employees becomes a key factor as firms 
move from traditional methods of organisation 
to more flexible internal arrangements. The role 
of workers in decision making and the need to 
review and strengthen the existing arrange­
ments for workers involvement in their compa­
nies will aiso become essential issues. The Com­
mission will launch, in the coming weeks, consul­
tations with the social partners on the advisabil­
ity and direction of Community action in the 
field of information and consultation of employ­
ees at national level. 
45. The participation of employees in profits and 
enterprise results could also assume greater im­
portance. In this connection the Commission re­
cently prepared a report6 on the ways Member 
States have promoted the participation by em­
ployees in profits and enterprise results. This 
shows that in all cases profit-sharing is associat­
ed with higher productivity levels no matter 
5 "Teaching and Learning: Towards the Learning Society" (December 1995) 
6 PEPPER II: promotion of participation by employed persons in profits and enterprise results (including equity 
participation) in Member States (COM (96) 697 final of 8.1.97) 
what methods, model specification and data are 
used. Other positive effects of the schemes are 
on wage flexibility, .employment and employee 
involvement. The development of financial par­
ticipation schemes is, however, strongly influ­
enced by government action, in particular by the 
availability of tax incentives. 
Questions 
How should the current legal framework be 
modernised to take account of new employ­
ment trends ? 
Which types of workers' involvement mecha­
nisms could contribute to successful strategies 
on technical and organisational change? 
How would the development of direct worker 
participation affect the role of bodies or or­
ganisations representing workers? 
Wage systems 
46. Pay is, of course, at the heart of the contract 
between employers and workers. But some of 
the pay systems in use today were developed for­
ty or fifty years ago. Frequently they provided 
only for payment for a specific job in a hierarchi­
cal organisation with a rigid division of labour. 
Such wage systems are now proving an obstacle 
to the introduction of more flexible company 
structures. It is precisely in the most up-to-date 
companies that traditional pay differentials 
between manual and white collar workers, 
between women and men, or between members 
of the same team are no longer workable. Wage 
systems are the financial expression of organisa­
tional and status structures within a company. 
47. New wage systems, compatible with the flex­
ible firm, have been introduced into many firms, 
in both manufacturing and services and in large, 
medium-sized and small firms. The characteristics 
typical of these new payment systems are broad­
er job descriptions and a corresponding decrease 
in the number of pay grades, incentives to ac­
quire extra qualifications, higher valuation of 
new job requirements (such as co-operation, re­
sponsibility, decision-making, problem solving, 
etc.), supplements to the basic wage paid accord­
ing to results or for continuous improvements, 
establishment of internal job equity for blue and 
white-collar employees, for time and piece-rate 
workers, for part-timers and full-timers and 
equal pay for women and men. Questions 
What experience do you have of changes in 
payment systems? 
What innovations are taking place, in particu­
lar by means of collective bargaining? 
lime: a new approach 
48. Working time is at the centre of the public 
debate on the organisation of work. In particu­
lar, the European Parliament adopted last year 
an important resolution on a reduction and ad­
aptation of working time7, based on the Rocard 
report. The debate is about two separate ques­
tions. One is about working time flexibility: the 
adjustment of working time arrangements to 
the needs of firms or the needs of individual 
workers. The other question is about working 
time and employment: can a shortening of work­
ing time create more jobs? 
49. Many innovative working time arrangements 
are being introduced in firms throughout the EU, 
both on the initiative of the firm concerned, or 
as the result of pressure or incentives from the 
Member State. Such arrangements can take a 
number of forms, including: 
Changes in the length 
of the working week 
50. An important development in recent years 
has been the decoupling of plant operating 
times and shop opening hours from individual 
working time. This has allowed firms to increase 
the utilisation of expensive equipment, or to 
meet shoppers' wishes more effectively, while re­
ducing individual working time, often at no cost. 
In this context, some research has shown that 
firms may employ more workers as a result of re­
ducing working time, provided that certain con­
ditions outlined below (box) are met. 
7 O.J. N' C 320 of 28.10.96 p. 97 J. 
Conditions which may need to be satisfied for working time reductions to have an im­
pact on employment 
Reductions in working hours should take place in the broader context of a better balance between 
flexibility and security: reducing working hours while maintaining the same pattern of work or­
ganisation will be counter-productive. 
The way work is distributed has to be planned and working time patterns have to be adapted to 
the new situation. 
The redistribution of working time should be accompanied by an active training policy. Otherwise 
skill shortages are likely to arise. The speed with which they arise depends on the nature of the 
work and the quality of the available labour force. 
Barriers to recruitment should be low. In this context there is a need to look in particular at the 
effects of taxation systems on working time and to make the necessary adaptations to social se­
curity systems. 
Co-operation between the public authorities, trade unions and the various training bodies with 
interests at plant level is important. 
Working time reductions should be incorporated into long-term bargaining packages. Many 
working time reductions in recent decades, for example in Germany, Belgium and the Nether­
lands, have been traded against long-term wage moderation. Such long-term packages have the 
advantage of making it possible to use productivity increases to reduce working time over a peri­
od of several years, while at the same time reducing the wage increases needed to offset the re­
duction in working time. 
Annualisation of working time 
51. There has also been a trend in recent years 
towards coping with fluctuations in demand by 
calculating working time on an annual basis 
rather than on a weekly basis. Agreements to 
this effect usually provide, within certain limits, 
for the workers to receive a regular salary, rath­
er than one which fluctuates week by week or 
month by month. It can also enable workers to 
better organise their time between work and lei­
sure. For employers it allows for greater flexibil­
ity in the organisation of production and avoids 
expensive overtime premia. 
Part-time work 
52. There are now 24 million people working 
part time in the Member States. This form of 
work represents both opportunities and risks. 
From the employer's point of view it provides the 
flexibility which is necessary to meet changing 
consumer demands, especially in services. From 
the worker's point of view it also provides a flex­
ibility that makes it easier to combine work with 
other responsibilities, for example studies or 
housework. The problem is that conditions of 
employment, for example social protection, for 
part-time workers are often limited when com­pared with those for full time work. This crystal­
lises the need for a new balance between the 
interests of employers and workers, which would 
have positive benefits for both sides and could 
lead to the integration of part-time workers into 
the labour market, in particular by making their 
work less precarious. The social partners are now 
negotiating at European level on the basis of the 
Commission's consultation document on flexibil­
ity in working time and security for workers. A 
European agreement on this would make an im­
portant contribution to the development ot flex­
ibility and security in working life. 
Flexible leave arrangements through­
out working life 
53. A number of interesting experiments are be­
ing undertaken in Member States and in individ­
ual firms to allow workers to take career breaks 
for family, training or other reasons. The recent 
framework agreement on parental leave con­
cluded by UNICE, CEEP and the ETUC8 is a good 
example of the progress at Community level. 
54. Such working lifetime policies may reduce 
unemployment and improve the quality of life 
by humanising the world of work and, above all, 
its compatibility with private life. 
8 Annex to Council Directive 96I34IEC of 3.6.97; O.J. N" L 145/4 of 19.6.96 
10 
Questions • e 
What contributionjdo you consider that a re­
duction and adaptation of working time can 
make to the improvement of growth, produc­
tivity and employment? 
What is the scope for agreement at sectoral 
level on working time arrangements? Are oth­
er levels more appropriate? 
Taxation 
55. The existing taxation systems are not normal­
ly designed to cope with the new flexible work 
organisation. On the contrary, taxation systems 
may give employers a financial incentive to em­
ploy people in traditional work arrangements 
and therefore act as a barrier to a more flexible 
work organisation. 
56. Taxes, including social security contributions, 
falling on labour are often reiated to employees' 
income levels. Some taxes may distort employers' 
choices on organisation of working time as the 
imposition of the taxes can give incentives to 
work either more than a certain level or less than 
a certain level. For example, some taxes may 
hBMe a ceiling which can be an incentive for em­
ployer? tc hire only one employee whose salary 
exceeds the ceiling, and beyond which no addi­
tional contributions ara payable, compared tc 
hiring two part-time employees whose individu­
al salaries would be below the ceiling and whose 
combined contributions would be greater than 
for one employee. Such ceilings may also give in­
centives to employers tc use overtime instead of 
hiring extra people. 
57. Other taxes may have a tax-free floor which 
gives an incentive to employers to employ part-
time workers below a cartain number of hours 
per week. Some taxes are a fixed amount per em­
ployee, irrespective of the level of earnings, and 
consequently give an incentive for employers to 
use as small a number of employees as possible. which assumes that the "normal" pattern of em­
ployment is lifelong and permanent, with retire­
ment from the labour market taking place at the 
end of the employee's working life. Benefits are 
therefore predicated upon a contributory insu- -
ranee model and eligibility often depends upon 
continuous service. 
59. If, as predicted, "traditional" work structures 
are to continue to change over the next few 
decades, the implications for social protection 
policies in the longer term are enormous. The 
most frequently-advanced change scenario en­
visages the replacement of the 20th century lin­
ear career concept by a norm of a varied work­
ing life. 
60. Such changes should not be perceived as a 
threat to social security : flexible working can ba 
both beneficial to European economies and at­
tractive to individual employees. Therefore, the 
latter should not be penalised for adopting such 
working patterns. 7Ns means that the multitude 
of different forms of employment, which em­
ployees may increasingly experience, must be 
supported by appropriate social protection 
systems. 
61. However, it is vital that mechanisms be found 
for adapting European social protection systems 
to take account of these new patterns of work. 
Obviously there are no easy solutions to this 
complex problem. Therefore, in October "[995 
the Commission launched a debate on the future 
of social protection which addresses among oth­
er things the implications of changing work pat­
terns for social protection. A Communication' 
taking stock of the debate during 19S6 and pro­
posing appropriate follow-up has recently been 
published. 
Q<LB®$t§oft 
What reforms are necessary to taxation 
systems, in order to avoid the disincentive ef­
fects ? 
Social security Question 
What adaptations are necessary to social se­
curity rules to stimulate more innovative forms 
of work organisation? 
Health and safety at work 
62. There is an important body of Community 
legislation in this area, which already makes a 
significant contribution to the hearth and safety 
of workers'0 . These measures may need to be 
strengthened and adapted in order to take ac­
count cf changes in work organisation. 
58. At present, most European social security 63. In this context it should be noted that it is the 
systems are based upon a model of employment employer that has the duty of managing the pre-
9 Modernising and Improving Social Protection in the European Union (COM(97) 102 of 12.3.97) 
1G See in particular Council Directive 89/391/EEC of 12 June 1989 on the introduction of measures to encourage 
improvements in the safety and heaith of workers (O. J. N' L 183/1 cf 29 June 1989) - and subsequent individual directives 
11 
venticn of occupational ill-health. The growing 
importance of SME's as employers, including sub­
contractors, raises important health and safety 
issues. Furthermore, new employers often lack 
knowledge of health and safety risks, and fre­
quently have neither the time or money to recti­
fy this. Some initiatives have already been under­
taken to address this information gap11, but fur­
ther measures may be necessary. In addition the 
incorporation of health and safety within early 
education and within the lifelong learning ap­
proach will be increasingly necessary to ensure 
that workers are adequately trained. 
Environmental issues 
64. The development towards a more flexible or­
ganisation of work is likely to have effects on the 
natural environment, for example by changes in 
transport demand. These effects can be positive 
or negative, depending, in particular, on individ­
ual working time arrangements, the transport in­
frastructure and the location of the work. It will 
be necessary to identify the environmental im­
pacts of new forms of work organisation more 
accurately in order to develop approaches which 
are compatible with sustainable development 
and which are beneficial for the whole of society. 
Question 
What impacts, both favourable and detrimen­
tal, are the new forms of work organisation, 
flexibility in working time and employment 
contracts, having on the health, safety and job 
environment of workers and for the manage­
ment of these issues? 
Mainsireaming 
equal opportunities policies 
Women and men 
65. The new developments in relation to work 
organisation present a challenge and an oppor­
tunity with regard to equal opportunities for 
men and women. Employment is declining in 
typical traditional male jobs with traditional 
work organisation, such as heavy manufacturing 
industries, and growing in the service sector, 
where women have a stronger position and 
where new ways of working are more devel­
oped. The question is whether the new organisa­
tion of work, emphasising social skills, broader 
skills and multi-tasks, can contribute to the pro­
motion of equal opportunities. 
68. Women have made great progress in the la­bour market during the last 10-20 years, but 
there is still a big gender gap in employment and 
persisting segregation in the labour market. The 
difference in employment between men and 
women is 25 million, 85 million men and 60 mil-, 
lion women in work. Women's working patterns 
are also sometimes different from those of men 
and that may also affect the development of 
work organisation. In order to realise this poten­
tial it is necessary to organise not only firms but 
the whole social infrastructure to support men 
and women on a more equal footing. That in­
cludes for example training, child care, transpor­
tation, gender balance in decision making, indi­
vidualisation of rights and so on. 
67. Mainstreaming, which is the guiding princi­
ple of the Fourth Community Action Programme 
on Equal Opportunities for Women and Men 
(1996-2000)12 , aims to promote the integration 
of equal opportunities for women and men in 
the process of preparing, implementing and 
monitoring all policies and activities of the Euro­
pean Union and the Member States. 
Questions 
What more can be done to ensure that a bet­
ter gender balance is achieved through the 
development of a new organisation of work? 
How far will the growing participation of 
women in the labour market have an impact 
on work organisation? 
Immigrants and ethnic minorities 
68. New developments in relation to work or­
ganisation also present risks and opportunities 
for workers from immigrant or ethnic minority 
backgrounds. Businesses and other organisations 
are operating in an increasingly multi-cultural 
environment, with customers, suppliers and em­
ployees from diverse national, ethnic and cultu­
ral backgrounds. Success in the market-place in­
creasingly depends on the ability to integrate 
this potential to best effect. 
Integration of people with 
disabilities 
69. A better organisation of work can improve 
job opportunities of people with disabilities, in 
particular it can help to ensure that workplaces 
and work arrangements are adapted to their 
needs. Measures involving working time organ­
isation have aîso proved to be essential to in-
company reintegration. The same consideration 
applies to the effect of the introduction of new 
? 1 See "Self-Audit Handbook for SMEs on Safety and Health at Work", European Commission, 1995 
12 Council Decision of 22.12.95, O.J. N° L. 335 of 30.12.95 
12 
technologies. Telewerking can expand dramati­
cally the employment opportunities of a wide 
range of people with disabilities, in that it can 
overcome or remove barriers and problems relat­
ing to health conditions, safety, fatigue and 
stress, the need for personal assistance, inaccess­
ible transportation or architectural barriers. Con­
siderable human resources, which are today non­
productive and have to rely mainly on social as­
sistance, can be released in this way for employ­
ers and in general for the benefit of all society. 
QuesticFè 
What practical steps can be taken to ensure a 
better use of the potential of all our people in 
the new organisation of work? 
Labour merket policies 
70. Labour market policies play an important 
role in the development of the new organisation 
of work, reconciling flexibility for firms and se­
curity for workers. First of all, there are huge fi­
nancial resources spent on passive policies, that 
should be activated. Secondly, the new concept 
of 'job rotation" offers opportunities for firms 
as well as for jobseekers. Job rotation means on 
the one hand upgrading the existing workforce 
in order to achieve bettei quality, higher produ­
ctivity and new forms of work organisation, on 
the other hand a need to recruit substitutes, 
while the workers are being trained. This recruit­
ment could provide good entry jobs for young 
and unemployed people. Such a shift from pas­
sive to active measures, based on the job rota­
tion idea, is in line with the European Council 
agreement on a selective restructuring of public 
expenditure to stimulate growth and empk--
ment. 
71. Most of the initiatives for the modernisation 
of work organisation must be taken at a local or 
national level. However, these initiatives can get 
support from the European Union, through the 
European Social Fund. Objective 4 of the Structu­
ral Funds has as its aim to "facilitate workers' ad­
aptation to industrial changes and to changes in 
production systems". Created for the current 
programming period 1994-99, it is a new and 
challenging Objective in so far as it deals primar­
ily with people in employment as compared with 
the traditional target groups of the Social Fund, 
namely the unemployed. Objective 4 (together 
with the ADAPT Community Initiative) carries a 
budget of about 4 billion ECU, which when mar­
ried with Member State and private funding 
makes it a European fund for supporting indus­trial change of about 7.5 billion ECU <&\?er ths., 
five years of its operation. The actions•supported'' 
are to a major extent concerned with training 
and re-training, but within an overall context of 
organisational change within and among com-
panies. 
72. During the remaining period of current pro­
gramming (1997-99), the interventions under 
Objective 4 and ADAPT will be pursued with spe­
cific aims which support the process cf improving 
work organisation. An improved use by the rele­
vant bodies of the opportunities offered by Ob­
jective 4 and ADAPT will be a key demonstration 
of their willingness to improve work omzrSit-
tien. 
73. In addition the Leonardo da Vinci pro­
gramme supports experiments and the launch of 
particularly innovating projects in this ares-. The 
Fifth Framework Programme for Research and 
Development ccuid also make a contribution in 
support of research on new methods of organ­
isation of work13. 
Question I 
How do you consider that the contribution of ! 
i the Structural Funds, and in particular Ob;'e- ! 
! ctive 4, could bsst be optimised to promote a j 
, better organisation of work? j 
Modernisation of the public sector 
74. The public secte employs a significant oro-
portion of the E J abour force. For example over 
9 million people are employed full-time in local 
government alone. Within these public organisa­
tions there are increasing pressures tc get value 
for money both in order to keep public expendi­
ture in check and tc improve the quality and 
flexibility of service which the public expects. 
There are a number cf example; where public 
sector bodies nave devefoped innovative forms 
of work organisation, with the active participa 
tion of trade unions, but both employers and 
trade unions are conscious of the fact that more 
needs to be done. Indeed in November 1996, the 
social partners at European level adopted a Joint 
Declaration14 on the modernisation of public ser­
vices which recognised inter alia that the reor­
ganisation of work processes and administrative 
structures is often the main instrument for 
adapting to the changing environment. They 
emphasised that this requires a long-term com 
mitment to employment and the development 
of professional skills, and that management of 
change demands co-operation between man 
75' "Towards the 5th Framework Programme: Scientific and Technological Objectives" (COM(97)47) 
14 Joint Declaration of the CEMR Employers' Platform and the European Federation of Public Service Unions, Brussels 
November 1996 
13 
agement and. labour in all organisations. The 
parties stressed their striving for reconciling effi­
ciency with a high quality of working life: "In an 
open and secure climate the move towards a 
learning organisation may be a natural outcome 
of the adaptation to the continuous change". 
Telework 
75. Telework comes in a variety of forms - home-
based telework, alternating telework, multi-site 
telework, freelance telework, mobile teiework­
ing and telework from relocated back offices. Its 
centra! features involve the use of telecommuni­
cations and advanced information technologies 
and the performance of work at a location other 
than the traditional workplace. 
76. Although the spread and penetration of tele­
work remains unclear, the current numbers of 
teleworkers do not seem to meet the expansive 
forecasts made in the 1970s. However, the lower­
ing cost of telecommunications, changes in 
managers' and trade unions' attitudes towards 
telework, as well as new practices in respect of 
alternating telework, are strong indications that 
the number of teleworkers will increase substan­
tially in the coming years. Telework is particular­
ly evident in industries and occupations which 
are information intensive. 
77. Any consideration of telework at regional, 
national or European level should be strongly in­
fluenced by the need for job creation, increasing employment opportunities, environmental im­
provement and regional development. The cen­
tral question here is how can we use telework 
and related techniques to bring about a net in­
crease in work opportunities for Europeans in. 
such a way that the overall quality of working 
life is enhanced. 
78. The transnational dimension of ICTs, and in 
particular the fact that electronic commerce on 
the internet goes beyond geographical borders, 
brings to the fore the issue of transnational tele-
working, international private law and transna­
tional industrial relations. 
79. In 1996 the Commission undertook compara­
tive research and an analysis of labour law, 
health and safety and social security legislation 
and collective bargaining practices in Member 
States in respect of telework. As a result of this a 
number of issues were identified for considera­
tion by the public authorities and the social part­
ners (see box). 
80. It is necessary to assess what measures are 
necessary to facilitate the development of tele­
work, whether the existing rules are appropriate 
and what are the respective roles of the different 
actors. These issues will be further assessed in the 
context of the follow-up to the Green Paper on 
"Living and Working in the Information Society: 
People First" and in relation to the development 
of trans-European telecommunications net­
works. 
[5SUES CONCERNING TELEWORK PRACTICES 
Contractual status (empioyed-seif-ernployed teieworking) 
Voluntarism and teleworkers' right to return to the company's premises 
Written information on working conditions 
Equality of treatment between on-site workers and teleworkers 
Teleworkers' involvement in information, consultation, participation and negotiation 
Teleworkers" training rights and skill development 
Social security issues 
Data protection issues 
Environmental impact 
Inviolability of home and the employers' access to it 
Working time, availability and work load 
Pay systems 
Infrastructure, equipment and expenses 
Teleworkers' involvement in the company's affairs 
Separation of working and living environments 
Health and safety issues, including isolation, stress, checking and control 
Social mpiications of trans-border teieworking 
Legal framework applicable to freelance teieworking, including trade union rights 
14 
Building a partnership for a new 
organisation dï work 
The challenge to the social partners 
81. The role of the social partners, in firms, at 
sectoral, national and at European level, is cru­
cial in the development of a new organisation of 
work. But both sides face challenges. 
82. For management, the challenge is to achieve 
a fundamental renewal of their organisation in 
such a way that they create a climate of trust and 
partnership, based on the concepts of flexibility 
and security. For trade unions, the challenge is to 
ensure that they exercise a constructive and ac­
tive roie in the innovation and modernisation 
process within the firm and so achieve a sustain­
able balance between their social and economic 
objectives. 
83. In a number of Member States, the social part­
ners have shown their readiness to adapt to pro­
found changes taking place in organisational struc­
tures, management style and industrial relations 
practices in both the private and public sectors. 
84. This experience leads the Commission to in­
vite the social partners and public authorities to 
take part in a discussion about partnership. The 
concept of partnership includes, first of all, work­
ers and managers in the firm. The renewal of the 
organisation of work can only be achieved by the 
firms themselves, involving management and 
workers and their representatives. In addition, 
the social partners and the public authorities can 
facilitate this work by improving awareness of 
the potential of a new organisation of work. 85. This could lead towards a partnership for the 
development of a new framework for the moder­
nisation of the organisation of work, taking ac­
count of the interests of both business and work­
ers. The word "framework" should be given a 
broad interpretation. It could include everything 
from the creation of a common understanding of 
the importance of new forms of work organisa­
tion, through joint declarations, to binding con­
tractual or legal initiatives. The level and content 
of such a framework has to be clarified through 
discussions, in particular in the social dialogue. 
86. Such a partnership could make a significant 
contribution to achieving the objective of a pro­
ductive, learning and participative organisation 
of work. St would be based on European values, 
which combine competition between firms and 
solidarity between citizens. 
The challenge to polky makers 
87. The European institutions - the Commission, 
the Parliament, the Council of Ministers, the Eco­
nomic and Social Committee and the Committee 
of Regions - can stimulate the debate, give politi­
cal support and organise an exchange of informa­
tion and knowledge about the introduction of 
new forms of work organisation, both on the ba­
sis of the results achieved and the problems that 
have arisen. However, policy makers in European 
institutions, as well as in national and regional Par­
liaments and governments, need to understand 
what is happening in firms so that they can sup­
port the public debate in a well informed way and 
take these developments into account when for­
mulating policy and modernising legislation. 
Therefore, this Green Paper is also addressed to 
policy makers, to increase awareness of the poten­
tial and of the need for renewal of public policies. 
Questions on Section II 
What actions are appropriate at the different levels: the firm, local, regional, sectoral, national and 
European? 
Under which conditions, which will vary from country to country, could decentralised negotiations 
at firm level be developed to cover several aspects of work organisation? 
How could agreement be reached at sectoral or occupational level on framework guidelines for 
the organisation of work, which could be applied, at the same workplace, to workers with differ­
ent types of contractual arrangements? 
Which are the most appropriate ways in which this process can be supported at EU level, for ex­
ample support from the Structural Funds; support for training policies and innovations in them; 
dissemination of information, in particular in relation to good practice; medium-term social policy 
analysis and research, adaptation of the legal framework; other action ? 
How can we best mobilise our resources to realise the potential gains for both firms and workers, 
which could arise from a new organisation of work? 
How can we give particular support to SMEs? 
What should be the respective roles of the main actors who might be involved in such a partner­
ship, i.e. the social partners, the public authorities, NGOs in supporting the development of a pro­
ductive, learning and participative organisation of work? 
15 
3: THE CONSULTATION PROCESS 
88. As stated in the introduction, the main aim of 
this Green Paper is to raise awareness and stimu­
late debate on new ways of organising work. The 
Commission does not wish to pre-judge the out­
come of that debate by making concrete proposals 
for action, at this stage. 
89. The Green Paper is being given a wide circula­
tion and it is hoped that it will be discussed at local 
and national level, as well as at European level, in 
particular within the Social Dialogue. 
90. The Green Paper includes questions directed to 
the social partners, to the Member States' author­
ities and to the European Union institutions. The 
Commission welcomes comments also from individ­
uals and from institutions, from practitioners and from researchers, from NGOs active in the social 
and health fields, from people who have experi­
ence of new forms of work organisation as well as 
from people who are preparing to step from old 
forms of work organisation to new ones. 
91. Written comments should be sent by 30 Novem­
ber 1997, to 
European Commission 
Directorate-General V 
Rue de la Loi/Wetstraat 200 
B - 1049 Bruxelles/Brussel 
92. Comments can also be sent by e-mail to: 
DG5-PartnershipQBXL.DG5. CEC.BE 
This document is accessible at the following address: internet http://europa.eu.int/ 
The DGV homepage is accessible through the following path: 
Welcome, Policies, Employment and Social Policies, on which page there is a link to DGV 
16 
ISSN «254-1475 
COM(97) 128 final 
EN m os 
Catalogue number : CB-CO-97-154-EN-C 
ISBN 92-78-18671-6 
Office for Official Publications of the European Communities 
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