Opinion of the European Economic and Social Committee on the Communication from the 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
Date: 2008-04-22
Institutions: European Economic and Social Committee
Subjects: EU employment policy, EU financing, job mobility, labour flexibility, labour relations, organisation of work, social security, work contract

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Opinion of the European Economic and Social Committee on the ‘Communication from the
Commission to the European Parliament,
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’

the Council,

COM(2007) 359 final

(2008/C 211/15)

On 27 June 2007 the Commission decided to consult the European Economic and Social Committee, under
Article 262 of the Treaty establishing the European Community, on the

Communication from the 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.

The Section for Employment, Social Affairs and Citizenship, which was responsible for preparing the
Committee's work on the subject, adopted its opinion on 2 April 2008. The rapporteur was Thomas Janson
and the co-rapporteur was Christian Ardhe.

At its 444th plenary session, held on 22 and 23 April 2008 (meeting of 22 April 2008), the European
Economic and Social Committee adopted the following opinion by 147 votes to 1 with 8 abstentions.

1. Conclusions and recommendations

1.1
The EESC welcomes the inputs from the European
Parliament, the Council and the European social partners into
the flexicurity debate. In a changing world it is essential to
discuss how the balance between flexibility and security at EU
and Member State level can contribute to the creation of more
and better jobs.

The EESC has already emphasised that the flexicurity
1.1.1
concept does not mean unilateral and illegitimate reduction of
workers' rights. The European social partners have called upon
Member States to review, and if necessary adjust, the design of
labour law, job protection systems and, together with the social
partners, collective bargaining practice with a view, for example,
to ‘ensuring an optimal balance between flexibility and security
for all employment
[and] providing adequate
security for workers under all forms of contracts in order to
tackle segmented labour markets’.

relationships

1.2
The discussions on flexicurity have also triggered debates
in Member States and concerted action in a few. This underlines
that
the social partners to be actively
involved in the debate and the decision-making process.

is important

for

it

1.3
The EESC emphasises that flexicurity cannot be viewed
separately from the challenges facing the European Union.
Globalisation, the rapid development of new technologies and
the demographic challenge as well as environmental challenges
are changing the European labour market. Flexicurity should be
a part of a response to these external and internal trends and
pressures, aiming for a fair balance between workers and
employers.

1.4
The EESC considers that Europe should focus on its
innovation capacity, the high quality of its products and services,

its well-trained workforce and its social model, and should
compete with its global competitors on quality. This should be
reflected in the Employment Guidelines. The EESC would like to
see changes in the guidelines due to the flexicurity discussions
and especially regarding the quality of jobs.

Finally, the Committee makes some recommendations

1.5
regarding the implementation of flexicurity. It

— recommends that the Commission take stock of the different
contributions and views on the Commission Communica-
tion, and that it consult Member States social partners at all
levels;

— encourages the Commission to monitor the implementation
process and to establish a platform for exchange of good
practices that
includes the social partners; supports the
active involvement of social partners in the design and
implementation of flexicurity policies within the Member
States in all stages of the process;

— emphasises that mutual trust between the actors involved is

very important;

important preconditions

— underlines that sound macroeconomic policies fostering
employment growth, as well as a favourable business envir-
onment realising and supporting the full growth potential,
are
to work;
encourages Member States and the EU to create and main-
tain a legal framework conducive to adaptability, which is
simple, transparent and predictable, as well as to strengthen
and uphold employees' rights and their justiciability, and to
promote throughout the EU a stable legal framework for
collective bargaining and social dialogue when implementing
flexicurity;

flexicurity

for

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— points out that general welfare systems can improve mobi-
lity by ensuring that workers do not lose out when they are
confronted with changes affecting their workplace; to follow
national and EU rules on information and consultation is
important for anticipating change and mitigating its conse-
quences; underlines the importance of devoting economic
resources to flexicurity, including public and private aid for
employees in transition to a new job;

2.3
Taking the EESC opinion on flexicurity that was adopted
in July 2007 (2) as a still valid basis the present opinion intends
to:

— present the EESC's views on important focus points in order
to facilitate the implementation of flexicurity in Member
States and to look at the consequences for EU policies;

— emphasises that all relevant policies should be mutually rein-

forcing;

— maintain the EESC's views regarding the crucial role of
social partners' and further highlight the role of civil society
in this process.

— wants to see an integrated, multi-level approach; given the
it is important to

multidimensional nature of flexicurity,
strive for an integration of different policy levels;

— argues that new risks should be taken into account and that
transitions should be rewarded in the implementation of
flexicurity but also that permanent job contracts should not
be systematically abolished;

— thinks that in five years time the Commission should under-
take a review of flexicurity practices in the Member States
and especially their impact on employment rates in both the
Member States and at EU level.

2. Background

‘flexicurity’. At

two Tripartite Social Summits,

Flexicurity has been an ongoing issue ever since the first
2.1
the current
employment guidelines were adopted. However,
debate started in January 2006 with an informal Council
meeting on flexicurity. The 2006 Spring European Council
asked Member States to direct special attention to the key chal-
lenge of
in
conjunction with the December 2006 and March 2007
European Summits, the issue of flexicurity was discussed. The
Commission published a Communication on flexicurity in
June 2007 which has been discussed and processed in the
European Parliament and the Council, and the Council Decision
was unanimous. Furthermore, in October 2007 the social part-
ners concluded a joint analysis of key challenges
facing
European labour markets, including recommendations on flexi-
curity. The EESC welcomes all contributions and especially the
European social partners' joint analysis (1).

3. Implementing flexicurity

3.1
The EESC welcomes the various inputs into the flexi-
curity debate. In a changing world it is essential to discuss how
the balance between flexibility and security at EU and Member
State level can contribute to the creation of more and better
jobs.

3.2 Challenges for the labour market

Flexicurity cannot be viewed separately from the chal-
3.2.1
lenges facing the European Union. Globalisation,
the rapid
development of new technologies and the demographic chal-
lenge are changing the European labour market. The EESC
would however like to add that the environmental challenges
are also likely to have an impact on labour markets. Flexicurity
should be a part of a response to these external and internal
trends and pressures, aiming for a fair balance between social,
environmental and economic progress.

The EESC is of the opinion that environmental chal-
3.2.2
lenges will affect Europe's labour markets. They will
increase
pressure to save energy and introduce systems for a more
sustainable environment. But they can also spur technological
innovation contributing to economic growth and employment
growth.

2.2
The discussions on flexicurity have also triggered debates
in Member States and, recently, concerted action in some. The
EESC welcomes these discussions and activities but underlines
that it is crucial that the social partners should be actively
involved in the debate and the decision-making process.

(1) ‘Key challenges facing European labour markets: A joint analysis of

European social partners’, October 2007.
URL: http://www.ceep.eu/media/right/publications/key_market_chal-
lenges_facing_european_labour_markets.

3.2.3
The Committee has observed that climate change may
accentuate current social distortions and gaps (3), in both the EU
and in other parts of the world. It has also noted that the objec-
tive must be to manage adaptation and achieve mitigation
without causing unemployment and social distortion (4).

(2) EESC opinion of 11 July 2007 on Flexicurity (collective bargaining and the
role of social dialogue), rapporteur: Mr Janson (OJ C 256, 27.10.2007).

(3) See http://www.etuc.org/a/3356 Climate change and employment.
(4) EESC opinion of 24 October 2007 on Climate Change and the Lisbon
Strategy, rapporteur: Mr Ehnmark (NAT/362, OJ C 44, 16.2.2008),
point 1.11.

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3.2.4
Globalisation and the resulting integration of markets
are affecting Europe's labour markets. Consumption, production
and investment patterns are changing. These developments are
not inevitable nor are they impossible to affect or shape. Legisla-
tion on health and safety and workers' rights improve working
life and shape global norms. Product standards can improve
competitiveness with due regard to adaptability of enterprises.
Nevertheless, European labour markets will have to adjust to
meet the challenges of a globalised world. In many respects,
Europe has benefited from globalisation. The single market has
helped to create globally competitive companies in the EU. The
EU has consequently been able to sell products and services at
the top of the value chain.

Globalisation and technological

3.2.5
change have not
undermined employment growth in Europe. Over the period
1995-2005, the EU saw a net expansion of employment with
18,5 million jobs created. The number of job losses due to
trade-related adjustment is small compared with the overall rate
of job creation in the economy. Indeed, openness to trade can
increase employment possibilities, as recent developments in the
European Union have shown.

3.2.6
But globalisation can also cause increased vulnerability.
Companies are exposed to increased competition. Jobs that were
previously considered as protected are now exposed to interna-
tional competition. Services that for many years were considered
as local can now be provided across borders. Restructuring
takes place more often and at a quicker pace. When workers
who are trade-displaced become re-employed they typically
receive lower pay. Thus for many globalisation is about losing
income when they move to new jobs. In fact, the wage share of
the economy has decreased. The social partners have also
remarked that in comparison with the US, the EU has created
more jobs in sectors at
the productivity
growth scale while employment in sectors experiencing high
productivity gains has declined (5).

the lower end of

3.2.7
Labour market changes have led to an increasing share
of part-time and fixed-term work. These types of employment
may have helped to ease entry into employment and increase
employment rates in Europe. But workers in temporary employ-
ment tend to be less productive, receive less employer-supported
training (6) and are more prone to work-related accidents (7).
They also risk getting stuck in temporary employment. Just over
those with temporary contracts have a permanent
half of

(5) See footnote 1.
(6) ‘Assessing the impact of labour market policies on productivity: a
difference-in-differences approach’. OECD Social, Employment and
Migration Working Papers No 54, 2007.
URL: http://www.oecd.org/dataoecd/27/20/38797288.pdf.

(7) European Working Conditions Survey (European Foundation for the

Improvement of Living and Working Conditions).

contract after six years compared to more than three-quarters of
those who started with a permanent contract (8).

To meet the demographic challenges new services and
3.2.8
employment opportunities need to be created within,
for
example, child care and elderly care. Within this framework
to improve work organisation, gender
Europe also needs
equality and work-life balance.

Fiscal policy in many EU countries has tended to be
3.2.9
loosened in good times and tightened in the lower part of the
business cycle. This is notably the case with the larger euro area
countries. In addition, public debt remains high in a number of
EU countries in the light of demographic ageing (9).

3.3 The Employment Strategy and flexicurity

3.3.1 When implementing flexicurity policies in Member
States, the Employment Guidelines will give Member States indi-
cations on what sort of labour markets and economy Europe
should aim at. The EESC's view on this is clear: Europe should
focus on its innovation capacity, the high quality of its products
and services, its well-trained workforce and its social model, and
should compete with its global competitors on quality and not
enter a race for the lowest wages and social standards in which
Europe is bound to be the loser (10).

3.3.2
Several of the Employment Guidelines could form the
basis for a discussion on flexicurity. The EESC would like to see
changes in the guidelines reflecting its recommendations, espe-
cially regarding quality of jobs, as stated in its opinion on the
Employment Guidelines (11).

3.3.3
On several occasions, the EESC has commented on the
revised Lisbon process and the new Employment Guidelines (12).
The Committee has welcomed the new integrated approach and
the multiannual cycle but has also pointed out that:

— in some areas, there are inconsistencies between the Broad
Economic Policy Guidelines and the Employment Guidelines;

(8) Joint analysis (see footnote 1).
(9) Idem.
(10) EESC opinion of 13 September 2006 on Quality of working life, produc-
tivity and employment in the context of globalisation and demographic chal-
lenges,
(OJ C 318, 23.12.2006),
point 1.1.

rapporteur: Ms Engelen-Kefer

(11) ‘Employment Guidelines’ (SOC/303), rapporteur: Mr Greif (scheduled
for adoption in March 2008). The new set of Employment Guidelines
for 2008-2010 that was proposed by the Commission in December
2007 is identical to the previous package (2005-2008).

(12) EESC opinion of 31 May 2005 on The Employment Guidelines:
2005-2008, rapporteur: Mr Malosse (OJ C 286, 17.11.2005), EESC
opinion of 17 May 2006 on Employment Guidelines, rapporteur:
Mr Greif (OJ C 195, 18.8.2006) and EESC opinion of 24 April 2007
on Guidelines for employment policies, rapporteur: Ms O'Neill (OJ C 168,
20.7.2007).

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— success depends above all on the Member States taking their
responsibilities seriously and actually putting the agreed
priorities into practice at national level;

3.5 Components in the implementation of flexicurity

— national parliaments, social partners and civil society must
be genuinely involved in all stages of employment policy
coordination.

The EESC has also pointed out that one key to the
3.3.4
success of
the National Reform Programmes is the widest
possible involvement of all relevant social players — in particu-
lar the social partners — in every phase of the process, and that
the role of the social partners has to be strengthened (13). The
Committee would also like to emphasise the importance of
consulting national economic and social councils within this
framework.

3.5.1
The EESC has already emphasised that the flexicurity
concept does not mean unilateral and illegitimate reduction of
workers' rights, an idea the EESC rejects (16). The European
social partners (17) have called upon Member States to review,
and if necessary adjust, the design of labour law, job protection
systems and,
together with the social partners, collective
bargaining practice with a view to:

— ‘ensuring an optimal balance between flexibility and security

for all employment relationships;

— providing adequate security for workers under all forms of
contracts in order to tackle segmented labour markets;

3.4 The concept of flexicurity

— developing complementary employment security measures
promoting transitions to productive and rewarding jobs;

3.4.1
Flexicurity can play a major part in achieving the objec-
tives of the renewed Lisbon Strategy, framing national reforms
and policy options. However, neither
the
components of flexicurity are new. The first Employment Guide-
the European Employment
lines, adopted in the context of
Strategy in 1998, already called on the social partners to
negotiate a balance between flexibility and security.

the concept nor

3.4.2
The EESC wishes to underline that there is no single
solution for all and that the right mix will vary in different
Member States. The EESC has already stressed that the debate
has been mostly limited to increasing external flexibility and
ways of compensating for such an increase by strengthening
labour market policies or social security provisions. Instead, the
aim should be to focus on other dimensions to more effectively
create win-win situations (14). Flexicurity also entails deciding
the balance of rights and obligations between employers and
workers where balanced and fair packages need to be nego-
tiated (15).

— enhancing legal

for both
employers and workers with regard to the scope, coverage
and the enforcement of labour law;

and transparency

certainty

— implementing and respecting at national level the principles
and rules of European social directives,
including those
deriving from a framework agreement among European
social partners, as well as the basic principles of equal treat-
ment and non-discrimination;

— promote stable employment relationships and sustainable

labour market practices;

— put in place the framework to develop workplace practices
improving the work/life balance and in this way promoting
full use of the productive potential of the European labour
force.’

3.4.3
Flexicurity is used, among others, by the Commission
when assessing National Reform Plans and by the Presidency
when discussing labour market challenges.
It has become a
framework for evaluating Member States' labour markets. The
Commission must take note of all recent developments and
contributions. To assess
the different, often very complex
preconditions in the different Member States a close cooperation
with the relevant actors is essential. The social partners must be
consulted before governments present their National Reform
Plans.

(13) EESC opinion of 17 May 2006 on Employment Guidelines, rapporteur:

Mr Greif (OJ C 195, 18.8.2006).

(14) EESC opinion of 11 July 2007 on Flexicurity (collective bargaining and the
role of social dialogue), rapporteur: Mr Janson (OJ C 256, 27.10.2007),
point 1.1.
(15) Ibid., point 4.1.

The Committee agrees with the importance of compre-
3.5.2
hensive lifelong learning strategies and better investment
in
human resources as crucial for achieving the Lisbon strategy.
Nevertheless, Eurostat figures show that little or no progress has
been made when it comes to increasing workers' participation
in lifelong learning. The importance of
lifelong learning for
improving workers' skills, career opportunities and productivity
has been stressed in a number of recent EESC opinions. Whilst
many commitments have been made in the past to lifelong
learning, in practice much remains to be achieved by Member
States and other actors. In 2002, the European social partners
agreed on a Framework of actions for the lifelong development
of competencies and qualifications.

(16) Ibid., point 1.4.
(17) See footnote 1.

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active

policies

The EESC would argue that inclusive welfare systems
3.5.3
combined with
improve
labour market
job-matching and encourage innovation and higher productivity
in vulnerable industries which are crucial for Europe's future
competitiveness. An important part of flexicurity is unemploy-
ment benefits with high replacement rates which are efficient
and employment-oriented, providing additional possibilities for
adequate job matching into quality employment, while enhan-
cing employment security. It is therefore not only a matter of
offering ‘adequate’ replacement levels but also ensuring that they
maintain a proper living standard while remaining sustainable,
and linking them to activation strategies and high-quality
employment services.

The EESC has earlier stressed the importance of gender
3.5.4
equality (18). Policies should be implemented to reconcile profes-
sional, private and family life as well as measures which enable
both women and men to realise their professional potential and
to become economically independent. The EESC encourages the
European Institute for Gender Equality to monitor flexicurity
from a gender perspective.

3.5.5
Geographical and professional mobility of workers are
necessary tools for ensuring efficient labour markets and alle-
viating the mismatch between labour demand and supply, by
reducing bottlenecks in specific sectors and professions. Geogra-
phical mobility can contribute to upward convergence of
working and living conditions. Furthermore, geographical and
occupational mobility also have a significant impact on growth
and employment levels. In recent years, Member States with the
highest overall
levels of mobility have also registered strong
economic growth and low — or significantly reduced — unem-
ployment rates. This points to a relationship between mobility
levels and strong economic and labour market performance.

3.6 Flexicurity and the different stakeholders

The EESC underlines the importance of social dialogue
3.6.1
and of the social partners being actively involved at all relevant
levels in the design and implementation of
flexicurity poli-
cies (19). As the EESC pointed out
in its previous opinion,
strengthening industrial
systems at European and
national levels is essential for any discussion on flexicurity.

relations

Flexicurity requires a climate of trust and broadly-based
3.6.2
dialogue among all stakeholders, where all are prepared to take
the responsibility for change with a view to socially balanced
policies. This includes also the possibilities of monitoring and
evaluating the implementation as well as the results of policies.

3.6.3
Civil society also has a role in implementing flexicurity.
Social NGOs provide essential services for those at risk or
experiencing marginalisation and contribute to reconciliation of
family and professional life. Educational associations encourage
and provide lifelong learning for adults. Organised civil society
can help to increase the quality of employment and mitigates
challenges faced by the most vulnerable groups facing discrimi-
nation within the European labour market such as young and
older people, women, migrants and disabled people.

4. Recommendations

4.1
The EESC urges the Commission to take stock of the
different contributions and views on the Commission Commu-
nication, and other recent developments. Member States and
social partners at all
levels also have a role in shaping the
concept of flexicurity when it is implemented. This is essential
as flexicurity is used in the evaluation process of Member States'
National Reform Programmes.

4.2 When Member States incorporate the common principles
in their National Reform Programmes, providing a mix of the
national policies according to their conditions and practices, the
EESC encourages the Commission to monitor the whole process
and to establish a platform for good practices exchange and
benchmarking including especially the social partners but also
organised civil society. The EESC therefore welcomes the fact-
finding ‘Mission for Flexicurity’ set up by the Commission.

4.3
The EESC supports the active involvement of social part-
ners in the design and implementation of flexicurity policies in
all stages of the process. The EESC has previously underlined
the need for ‘a strong and vital social dialogue where the social
partners actively participate and are able to negotiate, influence
and take responsibility for the definition and components of
flexicurity and evaluation of its outcomes …’ (20).

trust

4.4 Mutual
is very important between the actors
involved. Organised civil society can play an important role in
increasing trust but also in providing stepping stones for those
furthest away from the labour market.

Important preconditions

4.5
flexicurity to work are
sound macroeconomic policies fostering employment growth
and a favourable business environment realising and supporting
the full growth potential.

for

(18) EESC opinion of 11 July 2007 on Flexicurity (collective bargaining and the
role of social dialogue), rapporteur: Mr Janson (OJ C 256, 27.10.2007).

(19) Ibid., point 4.1.

(20) EESC opinion of 11 July 2007 on Flexicurity (collective bargaining and the
role of social dialogue), rapporteur: Mr Janson (OJ C 256, 27.10.2007),
point 1.3.

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quality labour market. This would include the extension of
security to precarious jobs. Policies should focus on integrating
women, youth and older people into the labour market. Flexi-
curity should be applied with a holistic and consistent approach.
In this respect, devoting appropriate resources to European
funds such as the European Social Fund (ESF) and the European
Regional Development Fund (ERDF) is essential.

The EESC emphasises that all relevant policies should be
4.9
mutually reinforcing. Growth,
jobs, social cohesion and the
environment are equally important and mutually enabling.
Sustainable growth is a function of higher welfare aspirations
and an improved environment.

The EESC wants

4.10
to see an integrated, multi-level
approach. Given the multidimensional nature of flexicurity, it is
important to strive for an integration of different policy levels.
A more coherent policy to tackle the issue, increased interaction
between the different actors and levels is needed to improve
economic and social cohesion.

4.11
The EESC argues that new risks should be taken into
account and that transitions should be rewarded in the imple-
mentation of flexicurity. Globalisation will
increase risks for
workers and companies. Taking these new risks into account
would be essential for meeting the challenge of globalisation.
Promoting job mobility in a positive, high-quality way through
investing in people and improving portability of
rights is
crucial.

The President

of the European Economic and Social Committee

Dimitris DIMITRIADIS

4.6
The EESC encourages Member States and the EU to
create and maintain a legal framework conducive to adaptability,
which is simple,
transparent and predictable, as well as to
strengthen and uphold employees' rights and their justiciability,
and to promote throughout the EU a stable legal framework for
collective bargaining and social dialogue when implementing
flexicurity. The basis of all flexicurity models is a policy able to
guarantee high levels of social protection, the assumption of
responsibility by adequately funded public services, and a stable
legal framework for collective bargaining and social dialogue. In
this framework the ILO labour standards and EU legislation,
being transparent and predictable, are important bases.

systems

General welfare

can improve mobility by
4.7
ensuring that workers do not lose out when they are confronted
with changes affecting their workplace. To follow national and
EU rules on information and consultation is important
for
anticipating change and mitigating its consequences. The EESC
has in a previous opinion proposed that
the Directive on
European Workers' Councils should be reviewed (21) and the
Commission has recently launched a second phase consultation
that gives social partners the opportunity to start negotiations
with a view to revising the existing legislation. The Committee
also encourages the Council and the Commission to try to
resolve pending legislation in the social field.

The EESC underlines

importance of devoting
4.8
Implementing flexicurity
economic resources
without
investing in strengthening institutions, active labour
market policies and lifelong learning will not bring about a high

the
to flexicurity.

Brussels, 22 April 2008.

(21) EESC opinion of 13 September 2006 on the European Works Councils: a
new role in promoting European integration, rapporteur: Mr Iozia
(OJ C 318, 23.12.2006).