Amended proposal for a Council Decision on Guidelines for Member States' employment policies for the year 2002
Date: 2001-11-09
Institutions: European Commission
Subjects: EU Member State, employment policy, fight against unemployment

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Amended proposal for a Council Decision on Guidelines for Member States’ employment policies
for the year 2002

(2002/C 51 E/24)

(Text with EEA relevance)

COM(2001) 669 final (cid:151) 2001/0208(CNS)

(Submitted by the Commission on 9 November 2001)

INITIAL PROPOSAL

AMENDED PROPOSAL

THE COUNCIL OF THE EUROPEAN UNION,

Unchanged

Having regard to the Treaty establishing the European
Community, and in particular Article 128(2) thereof,

Having regard to the proposal from the Commission,

Having regard to the Opinion of the European Parliament,

Having regard to the Opinion of the Economic and Social
Committee,

Having regard to the Opinion of
Regions,

the Committee of

the

Having regard to the Opinion of the Employment Committee,

Whereas:

by

the

(1) The Luxembourg process, based on the implementation of
the coordinated European Employment Strategy, was
launched
European Council
extraordinary
meeting on Employment on 20 and 21 November 1997.
The Council Resolution of 15 December 1997 on the
1998 Employment Guidelines (1) has launched a process
with high visibility, strong political commitment and a
wide-ranging acceptance by all parties concerned.

the most

(2) The Lisbon European Council on 23 and 24 March 2000
for the European Union to
set a new strategic goal
become
dynamic
and
competitive
knowledge-based economy in the world capable of
sustainable economic growth with more and better jobs
and greater social cohesion. The attainment of this goal
will enable the Union to regain the conditions for full
employment.

___________
(1) OJ C 30, 28.1.1998, p. 1.

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INITIAL PROPOSAL

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(3) The Nice European Council on 7, 8 and 9 December 2000
approved the European Social Agenda, which states that
the return to full employment involves ambitious policies
in terms of
reducing
increasing employment
regional gaps, reducing inequality and improving job
quality.

rates,

(4) The Stockholm European Council on 23 and 24 March
2001 agreed to complement
for
employment rates to be reached by 2010 with inter-
mediate targets for employment rates by 2005 and a
new target for 2010 for increasing the employment rate
among older women and men.

the Lisbon targets

(5) The Stockholm European Council

also agreed that
regaining full employment not only involves focusing on
more jobs, but also on better jobs, and that to this end
common approaches should be defined to maintaining
and improving the quality of work, which should be
included as a general objective in the employment
guidelines.

(6) The Stockholm European Council further agreed that the
modernisation of
labour markets and labour mobility
need to be encouraged to allow greater adaptability to
change by breaking down existing barriers.

development

(7) The G(cid:246)teborg European Council on 15 and 16 June 2001
recognised that
the fundamental Treaty objective of
employment,
sustainable
economic reforms, social and environmental policies be
addressed in a mutually reinforcing way, and invited
Member States
to draw up sustainable development
strategies; such strategies should include the promotion
of employment in the environmental field.

implies

that

(8) In implementing the employment guidelines, Member
States should aim at a high degree of consistency with
two other priorities highlighted by the Lisbon Summit,
modernising social protection and the promotion of
social inclusion, while ensuring that work pays, and the
long-term sustainability of social protection systems is
secured.

(9) The Lisbon European Council stressed the need to adapt
European education and training systems both to the
demands of the knowledge society and to the need for
an improved level and quality of employment, and called
upon Member States, the Council and the Commission to
capita
in per
pursue a substantial annual
investment
In particular, Member
States should strengthen their effort towards the use of
information and communication technology (ICT)
for
learning.

in human resources.

increase

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INITIAL PROPOSAL

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(10) The Santa Maria da Feira European Council on 19 and
20 June 2000 invited the social partners to play a more
prominent role in defining, implementing and evaluating
the employment guidelines which depend on them,
focusing particularly on modernising work organisation,
lifelong learning and increasing the employment rate,
particularly for women.

(11) The Council Decision of 19 January 2001 on guidelines
for Member States’ employment policies for the year
2001 (1) reflects the new political messages endorsed by
the Lisbon and Santa Maria da Feira European Councils.

(12) The 2001 Joint Employment Report, drawn up by the
Council and the Commission, describes the employment
situation in the Community and examines the action
taken by the Member States
in implementing their
employment policy in line with the 2001 Employment
Guidelines,
of
19 January 2001 on the implementation of Member
States’ employment policies (2).

the Council Recommendation

and

(13) Consistency

and synergy between the Employment
Guidelines and the Broad Economic Policy Guidelines
should be ensured.

(14) The opinion of the Employment Committee was drafted

jointly with the Economic Policy Committee.

(15) On [. . .] the Council adopted a further recommendation
on the implementation of Member States’ employment
policies.

(16) The implementation of the guidelines may vary according
to their nature, the parties to whom they are addressed
and the different situations in the Member States. They
should respect the principle of subsidiarity and Member
States’ responsibilities with regard to employment.

(17) In implementing the Employment Guidelines, Member
States should be able to take regional situations into
account, while
attainment of
respecting
national targets and the principle of equal treatment

fully

the

(18) The effectiveness of the Luxembourg process requires that
the implementation of the employment guidelines is also
reflected inter alia in financial provision. To this end, the
include
national
budget
to permit an effective
the progress achieved by each Member
assessment of
State
into
guidelines,
account their impact and cost effectiveness.

information in order

in implementing

should, where

appropriate,

reports

taking

the

___________
(1) OJ L 22, 24.1.2001, p. 18.
(2) OJ L 52, 25.2.2000, p. 32.

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(19) Partnership at all levels should be encouraged, including
with the social partners, regional and local authorities and
representatives of civil society so that they can contribute,
in their respective fields of responsibility, to promoting a
high level of employment.

(20) There is a need to consolidate and develop further
comparable indicators to make it possible to assess the
implementation and impact of
the annexed guidelines,
and to refine the targets which they contain and facilitate
the identification and exchange of best practice.

(21) Member States should strengthen their efforts to include
and make visible a gender perspective across all
the
pillars.

(22) Quality in work is an important objective of the European
It involves both the job charac-
Employment Strategy.
teristics and the wider
labour market context, and
should be promoted through actions across all the pillars,

HAS ADOPTED THIS DECISION:

Sole Article

The guidelines for Member States’ employment policies for the
year 2002, annexed hereto, are hereby adopted. They shall be
taken into account by the Member States in their employment
policies.

ANNEX

Unchanged

THE EMPLOYMENT GUIDELINES FOR 2002

Horizontal objectives (cid:151) building conditions for full employment
in a knowledge-based society

The careful build-up, over
the last decade, of a macroeconomic
framework for stability and growth coupled with consistent efforts to
reform labour, capital, goods and services markets, as well as an
improvement in the labour market situation over the last few years,
has brought
the
the attainment of some of
European Employment Strategy within reach. This
is why the
European Council has embraced full employment as an overarching
objective of the EU’s employment and social policy. It committed the
Member States to reach the strategic goal of making the 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.

the key objectives of

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AMENDED PROPOSAL

The achievement of these objectives requires simultaneous efforts by
the Community and the Member States. It also requires a continued
implementation of a comprehensive set of policies aiming at growth
and macroeconomic stability, further structural reforms to improve the
functioning of the European labour market, innovation and competi-
tiveness, and an active welfare state promoting human resources devel-
opment, participation,
inclusion and solidarity. Further progress is
however not automatic and requires strengthened efforts in view of
the less favourable economic and employment outlook.

the

information and

Preparing the transition to a knowledge-based economy, reaping the
benefits of
communication technologies,
modernising the European social model by investing in people and
combating social exclusion and promoting equal opportunities are
key challenges for the Luxembourg process. In order to achieve the
goal of
the Member States should
articulate their response to the guidelines under the four pillars in a
coherent overall strategy which incorporates the following horizontal
objectives:

full employment set at Lisbon,

full employment

A. Enhancing job opportunities and providing adequate incentives for
all those willing to take up gainful employment with the aim of
recognising Member States’
moving towards
different
full
starting positions, and recognising the fact
employment is a goal of overall national economic policy. To this
end Member States should set national targets for raising the rate of
employment,
to contribute to the overall European
objectives of:

in order

that

(cid:151) reaching by January 2005 an overall employment rate of 67 %

and an employment rate of 57 % for women

(cid:151) reaching by 2010 an overall employment rate of 70 per cent
and an employment rate of more than 60 per cent for women

(cid:151) reaching by 2010 an employment rate among older persons

(aged 55-64) of 50 per cent.

B. With a view to raising employment rates, enhancing competi-
tiveness, productivity and the functioning of the labour market,
Member States will ensure that policies across the four pillars
contribute to raising quality in work. Such actions should take
into account both job characteristics (such as intrinsic job quality,
lifelong learning and career development) and the wider
skills,
labour market context encompassing gender equality, health and
safety at work, flexibility and security, inclusion and access to the
labour market, work organisation and work-life balance, social
dialogue and worker involvement, diversity and non-discrimination
and overall work performance and productivity.

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further education and vocational

C. Member States shall develop comprehensive and coherent strategies
for Lifelong Learning, in order to help people acquire and update
the skills needed to cope with economic and social changes
throughout the entire life cycle. In particular, the strategies should
cover the development of systems for initial, secondary and tertiary
education,
training for young
people and adults to improve their employability, adaptability and
skills, as well as their participation in the knowledge-based society.
Such strategies should articulate the shared responsibility of public
authorities, enterprises, the social partners and individuals, with
relevant contribution from civil society, to contribute to the real-
isation of a knowledge-based society.
In this context, the social
partners should negotiate and agree on measures to improve
further education and training of adults to enhance the adaptability
of workers and competitiveness of business. To this end, Member
States should set national targets for an increase in investment in
human resources as well as in participation in further education
and training (whether formal or informal) and monitor regularly
progress towards such targets.

D. Member States shall develop a comprehensive partnership with the
social partners for the implementation, monitoring and follow-up
of the Employment Strategy. The social partners at all
levels are
invited to step up their action in support of
the Luxembourg
process. Within the overall framework and objectives set by these
guidelines, the social partners are invited to develop, in accordance
with their national traditions and practices, their own process of
implementing the guidelines for which they have the key respon-
identify the issues upon which they will negotiate and
sibility,
report
the National
regularly on progress,
Action Plans if desired, as well as the impact of their actions on
employment and labour market functioning. The social partners at
European level are invited to define their own contribution and to
monitor, encourage and support efforts undertaken at national
level.

in the context of

E.

In translating the Employment Guidelines into national policies,
Member States will give due attention to all the four pillars and
the horizontal objectives by setting their priorities in a balanced
manner, so as to respect the integrated nature and equal value of
the guidelines. The National Action Plans will develop the strategy
for employment
(adopting a gender mainstreaming approach),
comprising an identification of the policy mix based on the four
pillars and the horizontal objectives which should make explicit
how policy initiatives under different guidelines are structured in
order to reach long-term goals. In giving effect to the Strategy, the
regional dimension and regional disparities will be taken into
account in terms of differentiated policies or targets, while fully
respecting the attainment of national targets and the principle of
equal
is appropriate for Member States,
without prejudice to the overall framework, to focus, in particular,
on certain dimensions of the strategy to meet the particular needs
of their labour market situation.

treatment. Likewise,

it

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F. Member States and the Commission should strengthen the devel-
opment of common indicators in order to evaluate adequately
progress under all four pillars, including with regard to quality in
work, and to underpin the setting of benchmarks and the identifi-
cation of good practice. The social partners are invited to develop
appropriate indicators and benchmarks and supporting statistical
databases to measure progress in the actions for which they are
responsible. In particular, the Member states should evaluate and
report on the efficiency of their policy measures in terms of their
impact on labour market outcomes.

F. Member States and the Commission should strengthen the devel-
opment of common indicators in order to evaluate adequately
progress under all four pillars, including with regard to quality in
work, and to underpin the setting of benchmarks and the identifi-
cation of good practice. The social partners are invited to develop
appropriate indicators and benchmarks and supporting statistical
databases to measure progress in the actions for which they are
responsible. In particular, the Member States should evaluate and
report on budget allocations to policy measures and on their effec-
tiveness in terms of labour market outcomes.

I. IMPROVING EMPLOYABILITY

Unchanged

Tackling youth unemployment and preventing long-term unemployment

In order to influence the trend in youth and long-term unemployment,
Member States will
intensify their efforts to develop preventive and
employability-oriented strategies, building on the early identification
of individual needs. Within one year (cid:151) although this period may be
extended in Member States with particularly high unemployment and
without prejudice to the review of the Guidelines which will take place
in 2002 (cid:151) Member States will ensure that:

1. Every unemployed person is offered a new start before reaching six
months of unemployment in the case of young people, and twelve
months of unemployment in the case of adults in the form of
training, retraining, work practice, a job, or other employability
measure, including, more generally, accompanying individual voca-
tional guidance and counselling with a view to effective integration
into the labour market.

These preventive and employability measures should be combined
with measures to reduce the stock of the long-term unemployed by
promoting their reinsertion in the labour market.

In this context, Member States should pursue the modernisation of
their Public Employment Services,
in particular by monitoring
progress, setting clear deadlines and providing adequate retraining
of their staff. Member States should encourage cooperation with
other service providers so as to make the strategy of prevention
and activation more effective.

A more employment-friendly approach: benefits, taxes and training systems

Benefit, tax and training systems (cid:151) where that proves necessary (cid:151)
must be reviewed and adapted to ensure that they actively support the
employability of unemployed persons. Moreover, these systems should
interact appropriately to encourage the return to the labour market of
those inactive persons willing and able to take up a job. Particular
attention should be given to promoting incentives for unemployed or
inactive people to seek and take up work, as well as measures to
upgrade their skills and enhance job opportunities in particular for
those with greatest difficulties.

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2. Each Member State will:

(cid:151) review and, where appropriate, reform its benefit and tax
system to reduce poverty traps, and provide incentives for
unemployed or inactive people to seek and take up work or
measures to enhance their employability and for employers to
create new jobs;

(cid:151) endeavour to increase significantly the proportion of unem-
ployed and inactive persons benefiting from active measures
to improve their employability with a view to effective inte-
gration into the
the
outcomes, outputs and cost effectiveness of such measures;

labour market,

and will

improve

(cid:151) promote measures for unemployed and inactive people to
including IT and communication
acquire or upgrade skills,
skills,
thereby facilitating their access to the labour market
and reducing skills gaps. To this end, each Member State will
fix a target for active measures involving education, training or
similar measures offered to the unemployed thereby aiming at
gradually achieving the average of
the three most advanced
Member States, and at least 20 per cent.

Developing a policy for active ageing

In-depth changes in the prevailing social attitudes towards older
workers, as well as a revision of tax-benefit systems are called for, in
order to reach full employment, to help ensure the long-term fairness
and sustainability of social security systems, and to make the best use
of older workers’ experience. The promotion of quality in work should
also be considered as an important factor in maintaining older workers
in the labour force.

3. Member States, if appropriate with the social partners, will therefore
develop policies for active ageing with the aim of enhancing the
capacity of, and incentives for older workers to stay longer at work,
in particular by:

(cid:151) adopting positive measures to maintain working capacity and
skills of older workers, not least in a knowledge-based labour
market, in particular through sufficient access to education and
training, to introduce flexible working arrangements including,
for example, part-time work if workers so choose, and to raise
employers’ awareness of the potential of older workers; and

(cid:151) reviewing tax and benefit systems in order to reduce disin-
centives and make it more attractive for older workers to
continue participating in the labour market.

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Developing skills for
Learning

the new labour market

in the context of Lifelong

Effective and well
functioning educational and training systems
responsive to labour market needs are key to the development of the
knowledge-based economy and to the improvement of the level and
quality of employment. They are also crucial to the delivery of lifelong
learning to allow for a smooth transition from school to work, lay the
foundations for productive human resources equipped with core and
specific skills and enable people to adapt positively to social and
economic change. The development of an employable labour force
involves providing people with the capacity to access and reap the
the knowledge-based society, addressing skill gaps and
benefits of
preventing the
resulting from unemployment,
non-participation and exclusion throughout the lifecycle.

erosion of

skills

Effective and well
functioning educational and training systems
responsive to labour market needs are key to the development of the
knowledge-based economy and to the improvement of the level and
quality of employment. They are also crucial to the delivery of lifelong
learning to allow for a smooth transition from school to work, lay the
foundations for productive human resources equipped with core and
specific skills and enable people to adapt positively to social and
economic change. The development of an employable labour force
involves providing people with the capacity to access and reap the
the knowledge-based society, addressing skill gaps and
benefits of
resulting from unemployment,
preventing the
erosion of
non-participation and exclusion throughout
the lifecycle. Effective
access of adults, whether employees or job seekers, to further voca-
tional training should be ensured by Member States through the devel-
opment,
in consultation with the social partners, of an appropriate
framework.

skills

4. Member States are therefore called upon to improve the quality of
their education and training systems, as well as the relevant
curricula,
including the provision of appropriate guidance in the
context of both initial training and lifelong learning, the modern-
isation and greater effectiveness of apprenticeship systems and of
in-work training, and promote the development of multi-purpose
local learning centres, in order to:

Unchanged

(cid:151) equip young people with the basic skills relevant to the labour

market and needed to participate in lifelong learning;

(cid:151) reduce youth and adult illiteracy and reduce substantially the
number of young people who drop out of the school system
early. Particular attention should also be given to young people
with learning difficulties and with educational problems.
Member States will in this context develop measures aimed at
halving by 2010 the number of 18 to 24 year olds with only
lower-secondary level
in further
education and training;

education who are not

(cid:151) promote conditions to facilitate better access of adults, including
those with a-typical contracts, to lifelong learning, so as to
increase
the proportion of adult working-age population
(25-64 year olds) participating at any given time in education
and training. Member States should set targets for this purpose.

In order to facilitate mobility and encourage lifelong learning,
Member States should improve the recognition of qualifications,
acquired knowledge and skills.

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5. Member States will aim at developing e-learning for all citizens. In
particular, Member States will continue their efforts to ensure that
all schools have access to the internet and multimedia resources and
that, by the end of 2002, all the teachers needed are skilled in the
use of these technologies in order to provide all pupils with a broad
digital literacy.

Active policies to develop job matching and to prevent and combat emerging
bottlenecks in the new European labour markets.

In all Member States unemployment and exclusion from the labour
market coexist with labour shortages in certain sectors, occupations
and regions. With the improvement of the employment situation and
accelerating pace of
these bottlenecks are
technological change,
increasing. An insufficiency of active policies to prevent and combat
emerging labour
increase
inflationary pressures and keep structural unemployment high. The
mobility of workers should be facilitated and encouraged in order to
exploit fully the potential of open and accessible European labour
markets.

shortages will harm competitiveness,

In all Member States unemployment and exclusion from the labour
market coexist with labour shortages in certain sectors, occupations
and regions. With the improvement of the employment situation and
accelerating pace of
these bottlenecks are
technological change,
increasing. An insufficiency of active policies to prevent and combat
emerging labour
increase
inflationary pressures and keep structural unemployment high. The
mobility of workers should be facilitated and encouraged in order to
exploit fully the potential of open and accessible European labour
markets, with due regard to a regional balance in economic and
social development.

shortages will harm competitiveness,

6. Member States will, as appropriate with the social partners, step up
in

to identify and prevent emerging bottlenecks,

their efforts
particular by:

Unchanged

(cid:151) developing the job-matching capacities of employment services;

(cid:151) developing policies to prevent skills shortages;

(cid:151) promoting occupational and geographical mobility;

(cid:151) enhancing the functioning of

labour markets by improving
databases on jobs and learning opportunities which should be
interconnected at European level, making use of modern
information technologies and experience already available at
European level.

Combating discrimination and promoting social
employment

inclusion by access

to

Many groups and individuals experience particular difficulties
in
acquiring relevant skills and in gaining access to, and remaining in,
the labour market. This may increase the risk of exclusion. A coherent
set of policies is called for to promote social inclusion by supporting
the integration of disadvantaged groups and individuals into the world
of work, and promoting the quality of their employment. Discrimi-
nation in access to, and on the labour market, should be combatted.

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7. Each Member State will:

(cid:151) identify and combat all forms of discrimination in access to the

labour market and to education and training;

(cid:151) develop pathways consisting of effective preventive and active
policy measures to promote the integration into the labour
market of groups and individuals at risk or with a disadvantage,
in order to avoid marginalisation, the emergence of (cid:145)working
poor(cid:146) and a drift into exclusion;

(cid:151) implement appropriate measures to meet

the
disabled, ethnic minorities and migrant workers as regards
integration into the labour market and set national
their
targets where appropriate for this purpose.

the needs of

II. DEVELOPING ENTREPRENEURSHIP AND JOB CREATION

Making it easier to start up and run businesses

The development of new businesses in general, and the contribution to
the growth of small and medium-sized enterprises (SMEs) in particular,
is essential for job creation and for the expansion of training oppor-
tunities
for young people. This process must be promoted by
encouraging greater entrepreneurial awareness across society and in
educational curricula, by providing a clear, stable and predictable set
of rules and regulations by improving the conditions for the devel-
opment of, and access to, risk capital markets. Member States should
also reduce and simplify the administrative and tax burdens on SMEs.
These policies should strengthen the prevention of undeclared work.

The development of new businesses in general, and the contribution to
the growth of small and medium-sized enterprises (SMEs) in particular,
is essential for job creation and for the expansion of training oppor-
tunities
for young people. This process must be promoted by
encouraging greater entrepreneurial awareness across society and in
educational curricula, by providing a clear, stable and predictable set
of rules and regulations by improving the conditions for the devel-
opment of, and access to, risk capital markets. Member States should
also reduce and simplify the administrative and tax burdens on SMEs.
Policies should strengthen the prevention of, and the fight against,
undeclared work.

8. Member States will give particular attention to reducing significantly
in
the overhead costs and administrative burdens for businesses,
particular when an enterprise is being set up and when hiring
additional workers. Also, Member States should, when drafting
new regulations, assess their potential impact on such administrative
burdens and overhead costs for businesses.

Unchanged

9. Member States will encourage the taking up of entrepreneurial

activities:

(cid:151) by examining, with the aim of reducing, any obstacles which
may exist, especially those within tax and social
security
regimes, to moving to self-employment and the setting up of
small businesses;

(cid:151) by promoting

entrepreneurship and self-
employment, targeted support services as well as training for
entrepreneurs and would-be entrepreneurs;

education for

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(cid:151) by combating undeclared work and encouraging the transformation
of such work into regular employment, making use of all relevant
means of action including regulatory measures, incentives and tax
and benefit reform, in partnership with the social partners.

New opportunities for employment
services

in the knowledge-based society and in

If the European Union wants to deal successfully with the employment
challenge, all possible sources of jobs and new technologies must be
exploited effectively.
find a supportive
Innovative enterprises must
environment because they can make an essential contribution to mobi-
lising the job creation potential of the knowledge-based society. A
considerable potential
for jobs and for increasing quality in work
exists in particular in the services sector. The environment sector in
particular may open important possibilities of allowing the low-skilled
to enter the labour market, and there is also a potential to upgrade
through the more rapid introduction of modern
workers’
environment technology. To this end:

skills

10. Member States will remove barriers to the provision of services
and develop framework conditions to exploit fully the employment
potential of the full range of the services sector to create more and
better
the
knowledge society and the environmental sector should be tapped.

the employment potential of

In particular,

jobs.

Regional and local action for employment

All actors at the regional and local levels, including the social partners,
must be mobilised to implement the European Employment Strategy by
identifying the potential of job creation at local level and strengthening
partnerships to this end.

11. Member States will:

(cid:151) take

into account, where

appropriate,

in their overall

employment policy the regional development dimension;

(cid:151) encourage local and regional authorities to develop strategies
fully the possibilities
for employment
offered by job creation at local level and promote partnerships
to this end with all
including the
representatives of civil society;

the actors concerned,

to exploit

in order

(cid:151) promote measures to enhance the competitive development
and the capacity of the social economy to create more jobs
and to enhance their quality, especially the provision of goods
and services linked to needs not yet satisfied by the market, and
examine, with the aim reducing, any obstacles
to such
measures;

(cid:151) strengthen the role of the Public Employment Services at all
in identifying local employment opportunities and

levels
improving the functioning of local labour markets.

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AMENDED PROPOSAL

Tax reforms for employment and training

It is important to deepen the examination of the employment impact
of the tax burden, and make the taxation system more employment
friendly by reversing the long-term trend towards higher taxes and
charges on labour. Tax reforms must also take into account the need
to increase investment in people, by business, public authorities and
individuals
term impact on
themselves,
employment and competitiveness.

in view of

the longer

12. Each Member State will:

(cid:151) set a target, if necessary and taking account of its present level,
for gradually reducing the overall tax burden and, where appro-
priate, set a target
for gradually reducing both the fiscal
pressure on labour, and on non-wage labour costs, in particular
on relatively unskilled and low-paid labour. Such reforms
should be undertaken without jeopardising public finances or
the long-term sustainability of social security systems;

(cid:151) provide incentives and remove tax obstacles to investment in

human resources;

(cid:151) examine the practicability of and design options for using alter-
native sources of tax revenue, inter alia energy and pollutant
emissions taking into account the experience with environ-
mental tax reforms in several Member States.

III. ENCOURAGING ADAPTABILITY OF BUSINESSES AND THEIR

EMPLOYEES

The opportunities created by the knowledge-based economy and the
prospect of an improved level and quality of employment require a
consequent adaptation of work organisation and the contribution to
the implementation of Life Long Learning strategies by all actors
the needs of workers and
including enterprises,
employers.

in order to meet

Modernising work organisation

In order to promote the modernisation of work organisation and forms
of work, which inter alia contribute to improvements in quality in
work, a strong partnership should be developed at all appropriate
levels (European, national, sectoral, local and enterprise levels).

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13. The social partners are invited:

the

required balance between flexibility

(cid:151) to negotiate and implement at all appropriate levels agreements
to modernise the organisation of work,
including flexible
working arrangements, with the aim of making undertakings
productive, competitive and adaptable to industrial change,
and
achieving
security, and increasing the quality of
jobs. Subjects to be
covered may, for example,
include the introduction of new
technologies, new forms of work and working time issues
such as the expression of working time as an annual figure,
the reduction of working hours, the reduction of overtime, the
development of part-time working, access to career breaks, and
associated job security issues; and

(cid:151) within the context of

the Luxembourg process,

to report
annually on which aspects of the modernisation of the organi-
sation of work have been covered by the negotiations as well as
the status of their implementation and impact on employment
and labour market functioning.

14. Member States will, where appropriate in partnership with the
social partners or drawing upon agreements negotiated by the
social partners,

(cid:151) review the

and examine
existing regulatory framework,
proposals for new provisions and incentives to make sure
they will contribute to reducing barriers to employment, to
facilitate the introduction of modernised work organisation
and to helping the labour market adapt to structural change
in the economy;

(cid:151) at the same time, taking into account the fact that forms of
employment are increasingly diverse, examine the possibility of
incorporating in national law more flexible types of contract,
and ensure that those working under new flexible contracts
enjoy adequate
status,
compatible with the needs of business and the aspirations of
workers;

security and higher occupational

(cid:151) endeavour to ensure a better application at workplace level of
existing health and safety legislation by stepping up and
strengthening enforcement, by providing guidance to help
enterprises, especially SMEs, to comply with existing legislation,
by improving training on occupational health and safety, and
by promoting measures for
the reduction of occupational
accidents and diseases in traditional high risk sectors.

Supporting adaptability in enterprises as a component of Lifelong Learning

In order to renew skill levels within enterprises as a key component to
lifelong learning:

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15. The social partners are invited, at all relevant levels, to conclude
agreements, where appropriate, on lifelong learning to facilitate
adaptability and innovation, particularly in the field of information
and communication technologies. In this context, the conditions
for giving every worker the opportunity to achieve information
society literacy by 2003 should be established.

IV. STRENGTHENING EQUAL OPPORTUNITIES

POLICIES

FOR

WOMEN AND MEN

Gender mainstreaming approach

In order to meet the objective of equal opportunity and reach the
target of an increased employment rate for women in line with the
conclusions of the Lisbon European Council, Member States’ policies
towards gender equality should be strengthened and should address all
relevant
to take up
employment.

influencing women’s decisions

conditions

Women still face particular problems in gaining access to employment,
in career advancement, in earnings and in reconciling professional and
family life. It is therefore important, inter alia:

(cid:151) to ensure that active labour market policies are made available for

women in proportion to their share of unemployment;

(cid:151) to pay particular attention to the gender impact of tax and benefit
systems. Wherever tax-benefit structures are identified that impact
they
negatively on women’s participation in the labour force,
should be reviewed;

(cid:151) to pay particular attention to the gender impact of tax and benefit
systems. Wherever tax-benefit structures are identified that impact
they
negatively on women’s participation in the labour force,
should be reformed;

(cid:151) to pay particular attention to ensuring the application of

the
principle of equal pay for equal work or work of equivalent value;

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(cid:151) to give particular attention to obstacles which hinder women who

wish to set up new businesses or become self-employed;

(cid:151) to give particular attention to obstacles which hinder women who
wish to set up new businesses or become self-employed, with a
view to their removal;

(cid:151) to ensure that women are able to benefit positively from flexible
forms of work organisation, on a voluntary basis and without loss
of job quality;

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(cid:151) to ensure the conditions for facilitating the access of women to

lifelong learning and in particular to IT training.

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16. Therefore, the Member States will adopt a gender-mainstreaming
approach in implementing the Guidelines across all four pillars:

(cid:151) developing and reinforcing consultative systems with gender

equality bodies;

(cid:151) applying procedures for gender impact assessment under each

guideline;

(cid:151) developing indicators to measure progress in gender equality in

relation to each guideline.

In order meaningfully to evaluate progress, Member States will need to
provide for adequate data collection systems and procedures and ensure
a gender breakdown of employment statistics.

Tackling gender gaps

Member States and the social partners should pay attention to the
imbalance in the representation of women or men in certain
economic sectors and occupations, as well as to the improvement of
female career opportunities.

17. Member States will, where appropriate with the social partners:

(cid:151) strengthen their efforts to reduce the gap in unemployment
rates between women and men by actively supporting the
setting
increased employment of women,
national targets in accordance with the objectives set out in
the conclusions of the Lisbon European Council;

and consider

(cid:151) strengthen their efforts to reduce the gap in unemployment
rates between women and men by actively supporting the
increased employment of women, and set national targets in
accordance with the objectives set out in the conclusions of the
Lisbon European Council;

(cid:151) take action to bring about a balanced representation of women

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and men in all sectors and occupations;

(cid:151) adopt a multi-faceted strategy to achieve gender pay equality in
both the public and private sectors, and consider the setting of
targets to tackle the pay gap. Such a strategy could include inter
alia a review of job classification and pay systems to eliminate
gender bias, improving statistical and monitoring systems, and
awareness-raising and transparency as regards pay gaps;

(cid:151) adopt a multi-faceted strategy to achieve gender pay equality in
both the public and private sectors,
including the setting of
targets to tackle the pay gap. Such a strategy could include
job classification and pay systems to
inter alia a review of
eliminate gender bias,
improving statistical and monitoring
systems, and awareness-raising and transparency as regards
pay gaps;

(cid:151) Consider an increased use of measures for the advancement of

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women in order to reduce gender gaps.

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Reconciling work and family life

Policies on career breaks, parental leave and part-time work, as well as
flexible working arrangements which serve the interests of both
employers and employees, are of particular importance to women
and men. Implementation of the various Directives and social-partner
agreements in this area should be accelerated and monitored regularly.
There must be an adequate provision of good quality care for children
and other dependants in order to support the entry of women and men
into, and their continued participation in, the labour market. An equal
sharing of
in this respect. Those
returning to the labour market after an absence may also have
to
outmoded skills, and experience difficulty in gaining access
training. Reintegration of women and men into the labour market
after an absence must be facilitated.
In order to strengthen equal
opportunities,

family responsibilities is crucial

18. Member States and the social partners will:

(cid:151) design,

implement

and promote

family-friendly policies,
including affordable, accessible and high-quality care services
for children and other dependants, as well as parental and
other leave schemes;

(cid:151) consider setting a national

national
for
services for children and other dependants;

situation,

target,

in accordance with their
increasing the availability of care

(cid:151) set a national

target,

in accordance with their national
for increasing the availability of care services for

situation,
children and other dependants;

(cid:151) give specific attention to women, and men, considering a
return to the paid workforce after an absence and, to that
end,
they will examine the means of gradually eliminating
the obstacles to such return.

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