Opinion of the Committee of the Regions on Flexicurity
Date: 2008-02-07
Institutions: European Committee of the Regions
Subjects: EU employment policy, job mobility, labour flexibility, labour market, open method of coordination, regional and local authorities, social security, work contract, worker adaptability

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Opinion of the Committee of the Regions on ‘Flexicurity’

(2008/C 105/04)

THE COMMITTEE OF THE REGIONS

— calls for the role of local and regional authorities in delivering flexicurity within the Lisbon context to
be considered henceforth in future discussions, to reflect its true importance both at an EU and
Member State level. As key deliverers of flexicurity policies,
local and regional authorities create
dynamic labour markets, help citizens into work, and provide protection for those outside the labour
market, and should be involved at the outset of policy formulation;

— urges the European Commission to use wherever possible the Community method and reiterates that
the open method of coordination process, which is becoming more prominent in EU policy develop-
ment, should become more inclusive and involve a variety of stakeholders including local and regional
government, which is the level at which such policy is usually implemented;

— requests that the EU Lisbon peer review process, existing for Member State governments, be extended
to enable local and regional authorities and other stakeholders to benefit from peer exchanges across
the EU to explore different forms of flexicurity;

— recommends annual

‘summits’

to improve participative interaction at European level between
EU institutions and the CoR to facilitate agenda setting, consultation, and information sharing on
issues relating to flexicurity and the wider Lisbon agenda, which would further build on the
CoR-Commission Structured Dialogue meetings and the CoR Lisbon Monitoring Platform.

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Rapporteur: Councillor Dave QUAYLE (UK/PES), Trafford Metropolitan Borough Council

Reference documents

Communication from the European Commission to the European Parliament, the Council, the European
Economic and Social Committee and the Committee of the Regions — ‘Towards Common Principles of
Flexicurity: More and better jobs through flexibility and security’

COM(2007) 359 final

Policy recommendations

THE COMMITTEE OF THE REGIONS

General remarks on the role of local and regional authorities

1.
calls for the role of local and regional authorities in deli-
vering flexicurity within the Lisbon context to be considered
henceforth in future discussions, to reflect its true importance
both at an EU and Member State level. As key deliverers of flexi-
curity policies,
local and regional authorities create dynamic
labour markets, help citizens into work, and provide protection
for those outside the labour market, and should be involved at
the outset of policy formulation;

2.
urges the European Commission to use wherever possible
the Community method and reiterates that the open method of
coordination process, which is becoming more prominent in EU
policy development, should become more inclusive and involve
a variety of stakeholders including local and regional govern-
ment, which is the level at which such policy is usually imple-
mented;

3.
requests that the EU Lisbon peer review process, existing
for Member State governments, be extended to enable local and
regional authorities and other stakeholders to benefit from peer
exchanges across the EU to explore different forms of flexi-
curity;

recommends annual

to improve participative
‘summits’
4.
interaction at European level between EU institutions and the
CoR to facilitate agenda setting, consultation, and information
sharing on issues relating to flexicurity and the wider Lisbon
agenda, which would further build on the CoR-Commission
Structured Dialogue meetings and the CoR Lisbon Monitoring
Platform;

calls on the European Commission to provide information

5.
on the outcome of the debates on flexicurity;

recommends decentralised debates be held between local
6.
and regional authorities, social partners, non governmental
organisations and the wider community on flexicurity and its
delivery;

believes that

7.
local and regional authorities should be
equipped with the power and financial resources to intervene at
their respective levels. Promoting flexicurity must not lead to
higher costs or increased burdens for local and regional authori-
ties, or the erosion of labour rights;

8.
considers that only a comprehensive, permanent infra-
structure of public services, decided on, organised and funded
by local and regional authorities, such as transport infrastruc-
ture, affordable housing, and affordable, accessible and timely
childcare and care for people with disabilities and the elderly,
can provide a solid basis for achieving the objectives set under
the Lisbon strategy;

9.
therefore would point out that existing European legal
provisions governing competition, state aids and the internal
market must support the delivery and funding of essential social
services;

The flexicurity concept

considers that flexicurity, as a concept, should not be a
10.
standardised model that can be applied in the same way across
all Member States, but a concept that has to be defined as part
of an ongoing process, given its wide ranging consequences for
some Member States, and little impact for others;

believes that the flexicurity concept should coordinate
11.
strong flexible labour markets with secure social
security
systems to better achieve the Lisbon goals of growth, more and
better jobs, thereby strengthening the European social model
and stronger social cohesion;

supports the creation of an accessible,

12.
inclusive and
flexible labour market, recognising and encouraging ICT, and
enabling varied work patterns (i.e. homeworking and tele-
working);

13.
considers that there should be better acknowledgement
of demographic change and intergenerational issues. Measures
for older workers such as flexible working, pensions and retire-
ment ages, and better training should be promoted. There is
also a need to encourage lifelong learning, better training, and
mentoring schemes for young people;

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14.
considers that greater reference should be made to issues
of equality for women and for all. There is still severe underem-
ployment among women with reference to the Lisbon Strategy
target and many people with disabilities have a lot to contribute
and a full role to play in the labour market. Measures must
therefore be taken within the flexicurity concept to allow them
to find sustainable solutions where gaps still exist;

15.
considers that flexicurity concerns both workers in stable
employment and the unemployed, together with those at risk of
social exclusion. Flexicurity policy should create new opportu-
nities for access to employment to those on the fringes of the
labour market. This will also help to boost occupational mobi-
lity and the circulation of jobs among those in stable employ-
ment. It notes, in this regard, the European Commission's refer-
ence to a shift away from ‘job security’ to ‘employment security’
(implying that keeping the same job for life can no longer be
considered to be the rule);

believes that mutual

16.
trust and dialogue between the
social partners, and their strong involvement at the European,
national, regional and local level is necessary if flexicurity is to
be achieved;
it is very difficult to devise generally applicable
indicators to assess the application of flexicurity. Delivery of
flexicurity in the Member States should be evaluated on the
basis of national factors, taking political, legal, institutional and
labour market conditions into account. These issues should be
borne in mind when developing European cooperation;

Supports the view that there should be fair and just

20.
labour laws in the Member States:

— these laws should not only include, but also ensure the
application of equal treatment, health and safety protection,
freedom of
collective
bargaining and collective action, and fair access to training;

association and representation,

— undeclared labour should be tackled through better enforce-

ment of labour law;

— the Committee of the Regions believes it is important for
the EU and the Member States to be actively involved, for
instance, in the practical efforts of the International Labour
Organisation (ILO) to promote and implement international
labour standards;

draws attention to the fact

that a flexible European
21.
the living
labour policy must address and take account of
conditions and needs of the respective populations. Promotion
of the catchword ‘flexicurity’ must not result in a one-sided
watering-down of regional social standards, where applicable;

22.
suggests that a phrase such as ‘flexible and reliable contrac-
tual arrangements’ gives reason for concern, since this would also
allow for extensive deregulation of normal working conditions
so as to increase precarious employment;

in

internal

productivity

on mobility, considers that

17.
flexicurity is an
important component of the concept as it offers employers
and
advancement
employees a longer period within a particular workplace. Local
and regional authorities should join with the social partners at
the local level to identify and tackle barriers to internal flexi-
curity (i.e. need for workers to learn new skills), thus minimising
redundancy, and unnecessary movement;

competitiveness,

and

The four flexicurity components

believes that a lack of social protection can threaten
18.
labour market flexibility. To minimise this risk, the four princi-
ples of flexicurity should be established and upheld in equal
measure;

— a c t i v e l a b o u r m a r k e t p o l i c i e s ( A L M P ) :

jobs by promoting the creation of

23.
strongly believes that the Lisbon Strategy is about both
the quality and quantity of jobs, and jobs should pay more than
benefits. To this end, the EU and Member States should encou-
rage ‘quality’
inclusive,
sustainable labour markets, and address the regrettable chal-
lenges of in-work poverty and discrimination, as well as focus
on the ‘quantity’ by promoting active labour market policies
(ALMP)
to tackle worklessness. A job is the best safeguard
against social exclusion: unemployment/inactivity can lead to
inequality and divisions in society;

24.
presumes that the promotion of ALMP and flexicurity
could place further pressures on local and regional authorities
to help those furthest from the labour market;

— f l e x i b l e

c o n t r a c t u a l

a r r a n g em e n t s

fo r

t h e

e mp l oy e r a n d e mp l oye e :

whilst welcoming the European Commission's intention
19.
(those in a job) and
to reduce the divide between ‘insiders’
‘outsiders’ (those without a job), urges that ‘insiders’ rights and
protection,
(which in some cases are fairly basic), are not
compromised as a result of reducing the divide;

25.
believes that real progress can only be made by devol-
ving, localising and incentivising national and European active
labour market policies, employment and skills programmes
since many programmes and systems impose rules and criteria
which can act as a barrier to progression from worklessness to
work for key groups. Where applicable local and regional autho-
rities should have the discretion to flex national rules such as
the time a jobseeker has to spend claiming benefit before they

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are eligible to receive ALMP support, the kind of support and
mentoring regular repeat claimants should get, or the kinds of
training it is possible to receive while remaining on benefit;

nised and supported by employers and society. The quality of
training and further training provided both before and after
entry into employment should be promoted;

26.
believes that labour markets are sub-national in nature.
For instance labour markets have local or regional employment
and wage variations, local industries with specific skills needs,
local pockets of benefit claimants, low skills, and worklessness,
and providers which support disadvantaged groups in local
communities. The reasons for worklessness need to be under-
stood and focused on; some groups have higher levels of work-
lessness including children leaving care, older workers,
lone
parents, those with disabilities, ex-offenders, some ethnic mino-
rities, and those with drug, alcohol or mental health problems;

recognises that

local and regional authorities engage,
27.
advise, and help those furthest
from the labour market by
tailoring and personalising Member States' ALMPs to individual
and local need. They coordinate partnerships with the private
and voluntary sector and across the public sector to help bring
various services and organisations together needed to help
someone gain entry into employment. They should be encour-
aged to exploit new and innovative approaches and methods to
bring employment and skills policy together. Partnerships facili-
tate shared priorities working to joint targets, often enabling
resources to be pooled to avoid duplication of activity and leads
to more focused outcomes;

28.
(often
believes that support in the form of outreach,
carried out by community organisations), is required to provide
support before and after entry into employment to ensure new
workers retain their place in the labour market;

believes that there is a need for effective and targeted job
29.
match services, capable of matching jobseekers with the right
type of job that makes best use of their interests and skills.
There is always more opportunity to enhance one's employment
profile from within the labour market than from the outside;

— r e l i a b l e a n d r e s p o n s i v e l i fe l o n g l e a r n i n g s y s t e m s
a d a pt a b i l i t y a n d e mp l oy -

c o n t i n u a l

to e n s u r e
a b i l i t y o f wo r k e r s :

considers that it is vital that people are encouraged to
32.
learn entrepreneurial skills to enable them to set up their own
businesses, thus fostering SME growth, which are local in nature
as they recruit local people, use local services, and invest in the
local area;

believes that trainers should better identify those in need
33.
of assisted learning since high levels of
innumerate/illiterate
people continue to work in low paid jobs without their needs
ever being identified;

and should therefore

recommends that training and further training and,

34.
in
particular cases, also retraining courses should in part be offered
by employers since they benefit from their employees' knowl-
edge
in skills development.
Adequate resources are required for local and regional authori-
ties if they take on additional responsibility for safeguarding life-
long learning if increased worker mobility reduces employers'
willingness to train staff;

invest

that

believes

local and regional authorities

35.
respond
quickly and effectively to the impact of restructuring in employ-
ment such as redundancies which result from manufacturing
plant closures. They have the knowledge and experience to
develop projects funded by European Social Fund etc to retrain,
advice, and upgrade skills of affected workers so that skills can
be linked to new jobs being created. Similarly the EU Globalisa-
tion Adjustment Fund should also be available to local and
regional authorities to react and provide re-training and re-skil-
ling. The loss of a major employer has long term effects on the
local community including young peoples' skills and employ-
ment prospects, a resulting derelict site, and impact on local
suppliers of goods and services. Partnership working is key to
responding to these
all organisations
including local and regional authorities, public employment and
skills agencies, trade unions, community groups and industry
bodies can coordinate their activity to ensure that resources are
being targeted effectively;

challenges

so that

emphasises that

30.
local and regional authorities play a
crucial role in influencing skills levels through the provision of
training and education. They are also major employers, thereby
have a duty to upgrade skills of their workforce and wider com-
munity;

believes that lifelong learning should be real and acces-
31.
sible for people throughout
their lives. Everyone should be
encouraged to reach their full potential, which should be recog-

36.
whilst believing that it is right that people should be
equipped with skills so that they become adaptable to new chal-
lenges, considers that a cultural change is required for people to
be able to offset risks in the labour market but this attitudinal
the flexicurity
change will only be exercised if all
components do not cause the erosion of labour rights, and if
the mechanisms for implementing them are robust and deliv-
ered to equal importance;

four of

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— m o d e r n s o c i a l s e c u r i t y s y s t e m s s h o u l d c o m b i n e
a d e q u a te i n c o m e s u p p o r t w i t h t h e n e e d t o f a c i l i -
t a te l a b o u r m a r k e t m o b i l i t y

39.
believes that alongside non governmental organisations,
local and regional authorities offer a strong voice to outsiders.
The most vulnerable should continue to be protected;

37.
urges better linkage at EU level between the flexicurity
debate and the EU Active Inclusion agenda. The EU should not
lose sight of its broader social inclusion aims and the European
Social Model. Weak social welfare programmes are a barrier to
flexible labour markets and will ultimately slow economic
growth. Economic security is a prerequisite for all workers
whether they hold positions of low, medium or high responsi-
bility, and adequate social security systems should support
people as they move between jobs and into the labour market;

38.
calls for national debates between Member State govern-
ments, local and regional authorities, and social partners on the
level of social security required to achieve flexicurity. The effec-
tiveness of transitions is determined by the strength of Member
States' social security systems;

Brussels, 7 February 2008.

40.
recognises that levels of worklessness remain stubbornly
high across the EU with people trapped on benefit dependency,
many of whom are repeat claimants. Believes that real progress
localising and incentivising
can only be made by devolving,
national and European employment and skills programmes;

41.
even in those EU Member States in which national
governments set the total budget for social security benefits and
labour market
local and regional authorities
should have the discretion to manage these funds as they see fit
within a national framework, thus allowing them to use the
money as efficiently as possible to drive down the numbers of
people claiming benefit.

interventions,

The President

of the Committee of the Regions

Luc VAN DEN BRANDE