Opinion of the European Economic and Social Committee on the Proposal for a Council Decision on guidelines for the Employment Policies of the Member States COM(2006) 815 final — 2006/0271 (CNS)
Date: 2007-04-25
Institutions: European Economic and Social Committee
Subjects: ESC opinion, EU Member State, EU employment policy, European Employment Strategy

20.7.2007

EN

Official Journal of the European Union

C 168/47

Opinion of the European Economic and Social Committee on the Proposal for a Council Decision
on guidelines for the Employment Policies of the Member States

COM(2006) 815 final — 2006/0271 (CNS)

(2007/C 168/10)

On 12 January 2007 the Council decided to consult the European 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 23 March 2007. The rapporteur was Ms O'Neill.

At its 435th plenary session, held on 25 and 26 April 2007 (meeting of 25 April 2007), the European
Economic and Social Committee adopted the following opinion by 129 votes to 4 with no abstentions.

1. Conclusions and recommendations

In accordance with Article 128(2) of

the Treaty the
1.1
require confirmation by a
current Employment Guidelines
Council decision to be maintained for 2007 following consulta-
tion with the European Parliament,
the
Regions and the EESC.

the Committee of

1.2
The EESC supports the proposal that the Employment
Guidelines 2005-2007 be maintained for 2007 bearing in mind
the highlighted areas of concern and recommendations.

1.3
The EESC strongly recommends that the timetable and
process to be adopted is widely and timeously circulated to the
range of stakeholders in order to maximise the benefit from this
process, to build on good will and to ensure the maximum
participation by stakeholders and to allow sufficient time for
responses at EU and national level at the development stage.

The EESC recommends that there is stronger emphasis
1.4
on the inclusion of people with special needs into the new
Employment Guidelines with specific targets and greater recog-
nition of social policy requirements. The EESC stresses the
importance of
the involvement of social partners and civil
society at the earliest possible time in the development of the
guidelines by the Commission as well as being consulted on the
final document.

1.5
The EESC recommends that the Commission takes steps
immediately to engage with the EESC on the development of
the Employment Guidelines by establishing formal and informal
contacts in order to take a proactive approach to the develop-
ment of the Employment Guidelines for the next three years.

1.6
The EESC calls for much more ambitious, measurable
targets which can be benchmarked in the new guidelines at EU
and member state level, and for more enforcement powers for
the Commission.

The EESC recommends that appropriate ICT systems are
1.7
available in all member states to ensure an improvement in the
collection of data and to facilitate monitoring and evaluation by
both member states and the Commission.

The EESC continues to recommend that National Reform
1.8
Programmes must include more concrete evidence of defined
objectives, timescales, cost and budget provision.

2. The Commission's proposal for a decision

2.1
At the beginning of 2007 the Commission sent the EESC
a proposal as part of the consultation process to validate the
‘Guidelines for the employment policies of the Member States’
for 2007 which require to be confirmed by a Council decision.

2.2
The Commission proposes that the employment guide-
lines set out for period 2005-2008 (1) based on Article 128 of
the Treaty, be maintained for 2007 and shall be taken into
account by Member States in their employment policies (2).

In proposing this decision, the Commission is taking
2.3
account of the Lisbon Strategy from 2005 which is based on
the new cycle of governance with an integrated package of
guidelines which remain valid until 2008. These encompass
economic, social and environmental dimensions.

2.4
The Member States are required to prepare National
Reform Programmes which have been assessed by the Commis-
sion. This annual review sets out the progress that has been
made in meeting the guidelines and provides the conclusions
from which the proposal to continue with the guidelines has
been drawn.

3. Previous observations from the EESC

The EESC has commented upon the guidelines in two previous
opinions (3). The specific areas of concern were as follows:

— The timetable for the development and adoption of

the
guidelines was very tight and did not allow for real debate
and involvement on this important topic with a range of
stakeholders both at EU and national
level which had an
impact on the democratic processes in relation to the devel-
opment of the national programmes.

(1) COM(2005) 141 final,

(2005-2008).

Integrated Guidelines

for Growth and Jobs

(2) COM(2006) 815 final, Proposal for a Council Decision on guidelines for the

Employment Policies of the Member States.

(3) EESC opinion on The Employment Guidelines 2005-2008 (rapporteur:
Mr Malosse), OJ C 286 of 17.11.2005 and EESC opinion on The
Employment Guidelines (rapporteur: Mr Greif), OJ C 195 of 18.8.2006.

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Official Journal of the European Union

20.7.2007

— With the emphasis within the current guidelines for Member
States to set their own targets there is continuing concern
that the employment policy measures can no longer be
judged against specific and quantifiable targets as was the
position in previous programmes which has resulted in the
National Reform Programmes being less ambitious in rela-
tion to employment policy, workers rights and obligations.

— There needs to be a much stronger emphasis on the integra-
tion of young people into the labour market, with some
guarantee for a first job with future prospects.

— There needs to be continued emphasis in combating discri-
mination in relation to age, disability or ethnic origins.

— That the transition to the knowledge economy requires a
much more rigorous and focused approach to vocational
training and lifelong learning in order to adapt to new tech-
nologies, restructuring of the industrial base, and enabling
individuals to acquire transferable skills.

— That there should be more consistency in integrating invest-
ment in research and development and innovation both to
stimulate the economy and to develop new jobs.

— That there was insufficient attention being given to gender

equality and the need to balance work and family life.

— That more attention is required in relation to the impact of
demographic change and the challenges of an ageing work-
force.

— The need to strengthen and monitor the implementation of
immigration policies and the impact on national workforce
planning.

strength and value to the Annual Reports from the National
Reform Programmes in each member state.

4.4
The EESC welcomes the proposals from the Commission
to commit funding from the Structural, Social and Globalisation
Funds to support
the Employment
the implementation of
Guidelines. The EESC continues to emphasise the importance of
appropriate funding being made available at European and
national level in order to prioritise employment initiatives.

lack of
The EESC in reiterating its concerns about
4.5
progress would wish to see measures and amendments in the
Employment Guidelines for 2008-2010 to reflect the need for
improvement.

5. Continuing areas of concern

In the guidelines for growth and jobs set out in 2005 specific
areas for improvement were set out and the EESC remains
concerned that a range of targets continue not be met, that
there is a lack of prioritisation at national level, and would wish
to see measures to tackle these deficits put in place for the new
guidelines to be issued in 2008.

— The overall target of 70 % for overall employment is unlikely
to be reached within this period. Although the rate set for
the employment of women will have reached the proposed
60 % this is comprised of part-time, flexible and temporary
work.

— The importance of having appropriate funding at national
and EU level in order to implement the employment policy
measures.

— The target for older workers (people between 45 — 65 The
Commission's definition) will also not reach the proposed
target of 50 % although progress has been made.

4. General comments

The EESC has in previous opinions welcomed the adop-
4.1
tion of the integrated guidelines for 2005-2008 and continues
to emphasise that success depends on the Member States taking
their responsibilities seriously and putting the agreed priorities
into practice at national level. There must be a strong emphasis
the social partners and civil society being genuinely
on all
involved at all stages in the development and implementation.

4.2
The EESC recognises that progress has been made in rela-
tion to economic growth in the EU 25 and with the specific
employment measures (4), but remains concerned that
there
continues to be a disparity between the implementation of the
different measures within and between different member states
and remains of the opinion that there is a lack of urgency and
prioritisation to effect significant change.

4.3
The EESC would wish to see the Commission taking a
stronger role in developing European wide and national targets,
and monitoring and evaluating progress which would add

(4) Implementing the renewed Lisbon Strategy for Growth and Jobs — ‘A

year of delivery’, COM(2006) 816 final.

— The development of strategies for and the inclusion of
people with disabilities or special needs in employment still
remain poor.

— There is on-going concern about the level of youth unem-
ployment which continues to increase and that appropriate
measures are being taken to improve the situation.

— The basis of education as it relates to the modern labour
market is a major issue in that basic and intermediate skills
are lacking and there is a mismatch between skills and quali-
fications in relation to the employment market.

— There remain significant concerns that vocational training
and lifelong learning measures are being implemented effec-
tively and that there is real commitment to financial support
by either the public or the private sector.

— There is a continued lack of emphasis on life long learning
at all ages but particularly in relation to older workers. This
is of particular concern in relation to the adaptability of the
labour force.

— Concerns remain around the integration of migrant workers
across the member states who are filling major skills gaps in
the job market.

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— Although the rate of public investment in the EU is compar-
able to the US investment from the private sector is signifi-
cantly lagging behind.

6. Action taken by the Commission

6.1
The Commission has undertaken a review following
receipt of the Annual Reports from the Member States which
has resulted in the Communication Implementing the Renewed
Lisbon Strategy for Growth and Jobs ‘A Year of Delivery’ which
charts progress to date. This year there is a detailed annex
which sets out the recommended actions specifically required by
each member state. Whilst
importance in
contributing to the overall impact evaluation of the guidelines it
underlines the concerns of the EESC that there is lack urgency
and a disparity in the implementation of the guidelines. The
Commission must have more authority to set measurable
targets, co-ordinate activity and to enforce progress.

this is of critical

6.2
The EESC welcomes the proposed ‘Impact Evaluation’
which the Commission will be undertaking on the three year
programme in conjunction with a range of agencies to measure
its effectiveness and to influence the development of the new
employment guidelines for 2008-2010.

6.3
The EESC welcomes the proposed consultation process
on the new employment guidelines which will commence
following the publication of
in
December 2007 with a view to presenting the final proposal to
the Council in June 2008 for adoption. The EESC emphasises
the importance of consulting and involving the Member States
and all stakeholders during this process both at EU and National
level as soon as possible.

the Commission's draft

6.4
The EESC stresses the importance of having the opportu-
nity to consider the ‘Impact Assessment’ as early as possible
during 2007 in order to consider the contents, to receive infor-
mation and to take a proactive part responding in order to
influence the development of the guidelines and the drawing up
of national programmes.

The President

of the European Economic and Social Committee

Dimitris DIMITRIADIS

— Whilst the EESC supports the mobility of workers across the
Member States, it is concerned about the impact that the
transfer of skilled workers and the withdrawal of compe-
tence from one EU country to another has on the country
of origin. This must be monitored and action taken in order
to ensure a balance of skilled and qualified workforce is
retained to ensure sustainability.

— The effect on local employment opportunities needs to be
examined in relation to why unemployed people are not
pursuing local vacancies.

— The realisation that

the knowledge economy based on

research and innovation is still lagging behind.

— There is a lack of attention afforded to the integrated ‘life-
cycle’ approach by Member States. The EESC urges the
Member States to continue with their efforts to make the
world of work compatible with family life. This is a task for
society as a whole.
In particular, the provision of child-
minding facilities makes it possible to reconcile family and
occupational obligations and enables women to continue to
work in gainful employment, or to rejoin the labour market
quickly after a break (5).

— The need for Member States to move forward on strategies
to improve the adaptability of workers and enterprises and
in particular the potential of the concept of flexicurity (6).

— Issues around the impact of ‘undeclared work’ as it impacts
on the Member State and the individual still requires to be
addressed.

— The adoption and implementation of the ‘Decent Work’ (7)
still

agenda and the Quality of Work (8) principles
outstanding in some Member States.

is

— In comparison to the US average the productivity rates in
Europe remain poor which is a reflection of the rate and
level of investment in people and ideas.

Brussels, 25 April 2007.

(5) EESC opinion on The Employment Guidelines 2005-2008 (rapporteur:

Mr Malosse), OJ C 286 of 17.11.2005, page 41, point 3.2.3.

(6) EESC opinion on Flexicurity: the case of Denmark (rapporteur: Ms Vium),

OJ C 195 of 18.8.2006.

(7) EESC opinion on Promoting decent work for all, 19 December 2006

(CESE 92/2007), rapporteur: Mr. Etty.

(8) Improving quality in work, COM(2003) 728 fin, Communication from
the Commission to the Council, the European Parliament, the European
Economic and Social Committee and the Committee of the Regions, Improving
quality in work: a review of recent progress.