Opinion of the Economic and Social Committee on the "Proposal for a Council Decision on guidelines for Member States' employment policies for the year 2001"

(2001/C 14/15)

On 28 September 2000 the Council decided to consult the Economic and Social Committee, under Article 262 of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for Employment, Social Affairs and Citizenship, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 3 October 2000. The rapporteur was Mr Beirnaert.

At its 376th plenary session on 19 October 2000, the Economic and Social Committee adopted the following opinion with 104 votes in favour, no dissenting votes and two abstentions.

1. Introduction

1.1. Under Article 128 (2) of the Treaty, the Economic and Social Committee must be consulted on proposals for employment guidelines. As a forum of organised civil society, the Committee attaches special importance to this consultation. In this context, attention is drawn to the detailed ESC opinions issued on the guidelines for 1999 and 2000(1).

1.2. The draft guidelines for 2001, the Joint Employment Report for 2000 and the Member States' recommendations were adopted by the Commission on 6 September 2000.

1.3. Although, in accordance with the referral, this opinion will be limited to an appraisal of the new employment guidelines, the Committee will also issue an own-initiative opinion to assess the Luxembourg process mechanism in connection with the Cardiff and Cologne processes. The Committee believes that there should be a debate on the procedures followed, the respective roles of the Community institutions and the social partners, the number and structure of the guidelines and the qualitative nature of the progress recorded.

1.4. The guidelines for 2001 are influenced by the conclusions of the Lisbon Summit, which set a strategy for the decade ahead - to make the European Union "the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion". "This strategy is designed to enable the Union to regain the conditions for full employment ...".

The Luxembourg process, based on the framing of guidelines for employment policy and their transposition into national action plans, is a key instrument of this strategy. The Lisbon conclusions confirm and consolidate this process, while suggesting a mid-term review which should "give a new impetus to this process by enriching the guidelines and giving them more concrete targets by establishing closer links with other relevant policy areas and by defining more effective procedures for involving the different actors."

1.5. Following on from the conclusions of the Lisbon and Feira Summits, the mid-term review and labour market trends, the 2001 guidelines emphasise in particular:

- the catalyst key objective of full employment;

- the vital need for lifelong learning;

- closer involvement of the social partners in the process;

- the need for balanced implementation of the various pillars;

- the need for quantitative and qualitative indicators.

The Committee fully endorses these key points, which it has already highlighted in its earlier opinions.

2. General comments

2.1. In 1999, 2,1 million new jobs were created, representing a growth in employment of 1,4 %. The unemployment level dropped from 10 % in July 1998 to 9,3 % in July 1999. However, this undoubtedly positive trend in the employment markets cannot hide certain evident weaknesses which call for special attention. For example:

- despite an improvement in the employment situation for women - 52 % of new jobs are occupied by women - there remains a significant gap (19 %) in relation to that of men;

- although the employment of older workers has benefited to a modest extent from the general upturn, the level of activity in the 50-64 age group remains limited to 48.6 %;

- the proportion of long-term unemployed - which includes the particularly vulnerable category of young people unable to complete their studies - is still high: 46 % in 1999;

- tensions, or indeed bottlenecks, are increasingly found on the labour markets as a result of a lack of skilled workers;

- regional differences in unemployment rates continue to be high - and are even tending to increase - in many Member States.

2.2. The job market policies pursued in the Member States must, therefore, pay particular attention to these aspects, especially in view of the fact that pockets of structural unemployment are accompanied by skill shortages. This situation further highlights the importance of training and retraining policies that are sufficiently geared to labour market requirements. The Member States must therefore make it a priority to adapt their policies in this area. The Committee believes that policy success will depend on and be gauged by close and effective cooperation between all training operators and the social partners. The Committee would also stress the valuable contribution to be made by NGOs in the area of training.

2.3. Labour market policies must be particularly attentive to these more specific aspects. However, the Committee takes the view that governments still need to base all their policies on the promotion of employment. An integrated policy is therefore required. On this note, the Lisbon Council was right to emphasise the positive impact of research and development policy in job creation. Jobs can also be generated by a legislative environment that is favourable to investment, innovation and entrepreneurship. As the Committee opinion on the 1999 employment guidelines pointed out, studies on the preconditions for a successful employment policy point to a number of factors(2):

- a comprehensive macro-economic approach;

- the creation of a climate favourable to investment and the growth of domestic demand;

- moderate wage rises and maintenance of the regulatory function of collective wage agreements;

- a reduction of labour factor costs by cutting down on statutory non-wage benefits;

- active measures in favour of employment, along with incentives to take up work;

- structural reforms of the economy to improve competitiveness.

3. Specific comments on the employment guidelines for 2001

3.1. On the thrust of the 2001 guidelines

While the Committee takes the view that maintaining the four basic pillars is the right approach - it is desirable to allow time for the measures taken at national level to have an effect and to maintain consistency in policies - it does think it necessary to emphasise additional new points taking account of the objectives set by the Lisbon Summit and of sociological, economic and social policy developments in the Member States (health and safety, training, social exclusion etc.). The Committee therefore supports the Commission's approach.

3.1.1. Improving employability

The Committee recalls the overall objective set by the Lisbon Summit: "to raise the employment rate from an average of 61 % today to as close as possible to 70 % by 2010 and to increase the number of women in employment from an average of 51 % today to more than 60 % by 2010".

Meeting this objective will require the Member States to confront the unavoidable challenge of investing more in the training of workers and jobseekers through lifelong training. That training must meet the needs of companies in both market and non-market sectors and be forward-looking. Such efforts should boost the participation of young people, women and older workers in the labour market. The Committee therefore shares the Commission's approach of prioritising active measures in favour of employment, while stressing the crucial importance for employment of training measures.

3.1.1.1. The Committee endorses the merging of guideline 1 (new start for young unemployed) with guideline 2 (new start for unemployed adults) since this combination is intended to stress the need for comprehensive preventive measures. However, the Committee emphasises that the greater vulnerability of young people and adults threatened with long term unemployment calls for increased efforts. Experience shows that young people who leave school with poor qualifications represent a particularly at-risk group. The guidelines therefore call for appropriate assistance to be provided for these young people. The Committee recommends that they be guided towards suitable branches of education.

3.1.1.2. In the own-initiative opinion which it issued with a view to the Lisbon Summit, the Committee stressed the importance of giving women greater access to new technologies. This is one of the most decisive ways of furthering equality of opportunity in the information society. Weaknesses in this field must be remedied to ensure that women are not driven out of the labour market.

3.1.1.3. Raising the level of employment depends in part on improving the level of employment among older workers. In the own-initiative opinion which the Committee is preparing on older workers, stress is laid on the need for a policy of maintaining employability throughout life and retraining wage-earners over 40. The Committee is therefore pleased to note that in the third guideline, the Commission proposes positive measures to maintain the capacity and skills of workers, introduce flexible working arrangements and raise employers' awareness of the potential of older workers. The advantage of the guideline formula is that it entrusts Member States with operational responsibilities through a joint framework.

3.1.1.4. The Committee has always been acutely aware of the difficulties of underprivileged groups and individuals, such as the disabled, ethnic minorities and migrant workers, where the labour market is concerned. It is therefore fully in favour of the call in the eighth guideline for a policy to combat discrimination in access to the labour market. All the leading players should be involved in this policy of opening up the labour market. The Committee also supports the Commission's proposal to organise a European year for the disabled. It is of the opinion, however, that the guidelines on employability could have reflected the need to give special attention to the disabled.

The Committee believes that the guideline's invitation to Member States to develop pathways consisting of effective measures to promote the integration of groups and individuals at risk, in order to avoid marginalisation, should involve the associations concerned, especially those who work with the disabled.

3.1.2. Developing entrepreneurship

3.1.2.1. A policy of business creation is a key element of any successful employment policy. It has to be noted that, despite undoubted improvements, the proliferation of red tape continues to dissuade people from setting up firms. It also slows down the growth of small and large companies, which also have to face increasingly tough competition. In the opinion issued with a view to the Lisbon Summit, the Committee stressed the need to remove the obstacles to company formation and development(3). This argument is in line with the concerns expressed in the European Charter for Small Enterprises, which the Committee supports and according to which small businesses are an irreplaceable source of jobs, especially in the services sector(4). In this context the Committee also wishes to highlight the full importance of cutting red tape and reducing administrative charges so as to promote the setting-up of businesses in unemployment blackspot regions.

3.1.2.2. As the Commission noted, efforts to reduce fiscal and para-fiscal labour costs remain slow in many of the Member States. Reducing these costs has proved to be an important factor, among others, in promoting employment in several countries. Like the Commission, the Committee feels that these reforms must be implemented without jeopardising the financial balance of the social security systems.

3.1.3. Encouraging adaptability of businesses and their employees

3.1.3.1. The Committee shares the Commission's view that the "adaptability pillar" should receive more attention from the Member States and the social partners, whose important role the Commission is right to emphasise. Organisation of work is still too bound up with traditional patterns which block or slow down the necessary adaptation to market fluctuations; in parallel, protection of social rights must take account of society's changing values. Career breaks, leave of absence for domestic reasons, time credit and part-time working formulae, for example, must allow for social and family concerns and for lifelong training.

3.1.3.2. In its opinion on safety and health in the workplace, the Committee took the view that this subject should be covered by one of the employment guidelines. "An effective health and safety policy is warranted not just for obvious human reasons and because of the economic cost of accidents and illness, but also because it enhances worker employability and productivity and boosts employment(5)". The Committee is therefore pleased to note that the Commission has accommodated these concerns in its proposals.

3.1.4. Strengthening equal opportunities

In the Committee's view, the guidelines must reflect the conclusion of the Lisbon Summit in calling for the boosting of all aspects of equal opportunities; this includes making it easier to reconcile work and family life, in particular by setting a new benchmark for improved child care provision. The Committee also feels that it could be useful to follow more closely the practical application of the directives on equal treatment of men and women. The Committee will address the issue of equal treatment in access to employment in a separate opinion.

3.2. Implementing mechanisms

3.2.1. The Committee notes that despite the importance attached by the Community institutions to involving the social partners in the employment process (and not just in the preparation and implementation of the national action plans), in practice the same priority is not evident in all the Member States, and particularly at the time when the national action plans are assessed by the European Commission. It therefore endorses the Lisbon appeal to involve the social partners more closely in the Luxembourg process. Meanwhile, both the Commission and Member States must leave the social partners room to play out their role, by avoiding inappropriate or premature intervention and enabling them to fulfil their responsibilities in their field of expertise.

3.2.2. This role of the social partners is all the more justified given the emphasis placed by the Lisbon Summit on a "new open method of coordination as the means of spreading best practice and achieving greater convergence towards the main EU goals". This method has indeed proved itself in the field of employment policy, for which the primary responsibility rests on the Member States.

3.2.3. The Committee welcomes the growing consistency and linkage between the priorities of the employment guidelines, the programming documents approved by the European Social Fund committee and the main points of the social agenda proposed by the Commission.

Brussels, 19 October 2000.

The president

of the Economic and Social Committee

Göke Frerichs

(1) Opinion of the Economic and Social Committee on the Implementation of the Employment Policy Guidelines, OJ C 209, 22.7.1999 and OJ C 368, 20.12.1999.

(2) Opinion of the Economic and Social Committee on the implementation of the employment policy guidelines for 1999, OJ C 209, 22.7.1999.

(3) Opinion of the Economic and Social Committee on Employment, economic reform and social cohesion - Towards a Europe of innovation and knowledge, OJ C 117, 26.4.2000, p. 62.

(4) Opinion of the Economic and Social Committee on the European Charter for Small Companies, OJ C 204, 18.7.2000.

(5) Opinion of the Economic and Social Committee on Health and safety in the workplace, OJ C 051, 23.2.2000, p. 33-41.