Debate: A social Europe in a Digital world
Date: WEDNESDAY, 12 FEBRUARY 2020
Speaker: Nikolina Brnjac
Language: EN

Our social market economy is our competitive advantage globally. We need to defend it but also to adapt it to the changing world. Digitalisation is a broad and cross-cutting transformation process which presents opportunities and risks. It can be an engine for innovation and the creation of new quality jobs. It can increase labour productivity. It can enhance the well—being of workers, thereby also contributing to the reconciliation of work and private life. It can also offer new opportunities to people from vulnerable groups, including persons with disabilities. As with any change, however, there are also risks which we need to be aware of. The EU stands at the forefront in efforts to ensure that technological developments result in social equitable benefits and in protecting those at risk of falling behind. EU Member States played an important role in the 2019 ILO Declaration on the Future of Work, which they promptly endorsed and promoted. Today I would like to address three aspects related to digitalisation, which we can already see will have a significant impact on our lives: first, required skills; second, the platform economy; and third, the broader social impact of digitalisation. On skills: the impact of digitalisation on the labour market is twofold. First, it increases the demand for highly-skilled workers and other workers with the right skills. Second, certain jobs change significantly or even disappear. This risks increasing structural unemployment, creating new inequalities and leading to the polarisation of the labour market due to a loss of intermediate-level jobs. We already observe a skills mismatch today with the skills shortage, notably in ICT but also in related fields like engineering, mathematics, science and technology. In these fields, we also observe a high gender imbalance. This is likely to get worse if we do not react. To face this, we need to take into account the impact of the digital revolution over the whole human life cycle, from early childhood to old age. No one should be left behind, and well-being is an important factor in this regard. Both women and men are needed to fill the shortage in ICT skills across all occupations and sectors. Education and training systems should systematically prevent and combat stereotypes and discrimination. Collaboration between all stakeholders is vital for the successful management of tomorrow’s job requirements. The social partners play a crucial role in this process, helping to maintain the adaptability of the labour force. Regarding the platform economy, we all struggle to clearly define what is meant by this widely-encompassing term. Digital platforms bring service providers and their customers into direct contact. Many platforms work with people who are formally self—employed but who depend economically and organisationally on the platform. This form of organisation often has a negative impact on the level of pay, social protection, occupational health and safety, the right to paid leave, and other aspects. Effective social dialogue at all levels and a balance in the bargaining power is indispensable for securing a fair and equitable future of work, but it is difficult for platform workers to organise their presentations, as they often do not know each other. The Council has already addressed a number of issues related to new forms of work. Decent working conditions must be ensured for all, regardless of changes in employment patterns and, where necessary, by adapting the national legislative frameworks. At Union level, a first step has been made with the Directive on Transparent and Predictable Working Conditions adopted in June last year, which notably protects on—demand workers. The Recommendation on access to social protection for workers and the self—employed, adopted by the Council in December, makes explicit reference to platform workers. It recommends that Member States provide access to social protection for all, including the self—employed. The Council also highlighted that social protection policies should be balanced with making work pay policies. In this regard, it is important that people in a non—standard employment relationship can also benefit from collective bargaining. On a number of occasions, the Council has made it clear that workers in new forms of work should also be adequately protected in terms of occupational health and safety, irrespective of the size of the enterprise or the type and duration of the employment relationship. The Council also stressed the need to ensure an effective implementation and enforcement of EU law on working conditions and health and safety, including for new forms of work. A better understanding of platform work is a prerequisite for defining further policy responses. In this respect, we look forward to the platform work summit organised jointly by the future German Presidency and the Commission in October 2020. Thirdly, and finally, regarding the social impact, changes related to digitalisation have different impacts on different actors. On one hand, people can organise their work more flexibly and, on the other hand, face—to—face interactions decrease and constant connectivity means that people can never truly disconnect. New job opportunities can be created, for example for rural populations or people with disabilities. Working people have access to better tools to perform their jobs more efficiently. At the same time, employers are provided with better tools to monitor and optimise output efficiency. To conclude, technological development is inevitable and should be embraced. Fostering the development of new technologies will give us more control over the direction it takes, to make it more ethical and human-centred. As policy-makers, we should be aware of the full picture and make informed decisions, without forgetting that our social market economy remains one of our strongest assets.