Flexicurity Concept and practice

2 Subjects Definition of flexicurity Flexibility: different interests of employees and employers Flexibility: economic context Labour protection Dealing with different interest positions Flexicurity: areas of change The “golden triangle” Case study: flexicurity framework in the Netherlands International comparison Assignment: perspective for flexicurity in Turkey

Definitions…. Flexibility:  Elimination of barriers of formal or customary rules that lead to rigidity on the labour market (both supply and demand side). Security:  Regulation and facilities providing workers with safety in employment and income. 3

Definitions of Flexicurity…  “Social protection for flexible work forces” (Klammer and Tillman, 2001)  “A policy strategy that attempts - synchronically and in a deliberate way – 1. to enhance the flexibility of labour markets, the work organisation and labour relations, 2. and to enhance security – employment security and social security – notably for weaker groups in and outside the labour market.” (Wilthagen and Rogowski, 2002) 4

One more definition…. Flexicurity is… 1. a degree of job, employment, income and combination security that facilitates the labour market careers and biographies of workers with a relatively week position and allows for enduring and high quality labour market participation and social inclusion, -while at the same time providing 2. a degree of numerical (both external an internal), functional and wage flexibility that allows for labour markets' (and individual companies') timely and adequate adjustment to changing conditions in order to maintain and enhance competitiveness and productivity.” (Wilthagen & Tros 2004) 5

Different interests in flexibility Employee Working hours Holidays Study leave Sabbatical Maternity Parental Family care (emergency) Older workers Disability – diminished capacity Employer Working hours Work schedule Place of work Qualification level Experience level Adaptability level Contract conditions & form Contract duration Contract termination Labour costs – (wage flexibility) 6

More on employer’s interest Working hours:  Daily  Weekly  Monthly  Yearly Working schedule:  Day time  Day shifts  Week shifts Working place Probation period Contract form:  open-end contract  part-time contract  fixed-term contract  temporary work contract Contract duration Contract termination  Procedures  Notice period Qualification level Experience level Adaptibility level Labour costs (wage flexibility)  Performance appraisal  Output-related  Turnover-profit-related 7

Economic context for flexibility Economic needs vary Technology has made economic developments go faster – smaller world Labour market needs (demand side) must “breath optimally” with economic needs in order to:  Optimise economic performance  Optimise conditions for sustainable employment  High employment level is best condition for growing income 8

Determinants for flexibility: labour protection (Regulation for) Contract forms Regulation for private temporary employment agencies Probation period Protection against dismissal  General procedures – external authorisation?  Dismissal prohibition for certain groups and/or circumstances Employer‘s period of notice Employee‘s period of notice Leave schemes Unilateral transfer of personnel by employers Limitation of the employee’s liberty to switch employers Regulation for business take-overs 9

Dealing with different interest positions By law  Directive & descriptive  Framework: minimal requirements and provisions/conditions By collective bargaining agreement:  Directive & descriptive  Framework: minimal requirements and provisions/conditions By individual agreement Flexibility and security are excellent themes for trade-offs: negotiations 10

Playground for Flexicurity Legislative:  Labour laws & regulation  Labour market policies  Life-long-learning and educational facilities  Health & safety regulation  Collective bargaining laws & regulation  Works councils regulation  Economic laws (business take-overs)  Social security laws and regulation  Tax policies  (Regulation for self- employment) Infrastructure:  Sound vacancy registration  Active flex/temp agencies  Facilities for adult education & training  Adapted control system  (child care facilities) Culture:  Awareness employers  Willingness employees 11

The “Golden Triangle” 12

Flexibility – Security Matrix 13

Summarising Flexibility in labour relations predominantly economic context However:  There are also many employees’ interests in flexibility  Social security arrangements can function as a stimulus and a safety net This makes flexicurity excellent for trade-offs / negotiations between TU and employers Flexibility needs tailor made arrangements – more on sector and company level rather than in labour laws Labour laws can have an important – different – role as framework law with minimum provisions Flexibility needs well functioning employment services and modular VET Simple flexibility arrangements are part-time work and moving from job- security to employment security A flexible labour market is an important competitive condition 14

Flexicurity framework in the Netherlands Starting point  Dual system of dismissal law for (open-end) employment contracts, “preventive nature” Before dismissal, employers have to address either:  The public employment service  Or the lower courts  High level of “a-typical workers”: Workers in temporary employment agencies without contract “0-hour contracts” and minimal (flexible) contracts Flexicurity debate started in 1995 Bi-partite, tri-partite and parlementary deliberations and negotiations Concluded in Law on Flexibility and Security

Flexicurity - flexibility measures: More possibilities for (consecutive) temporary contracts Maximum length of time for temporary work scrapped Notice period is set on one month in principle Shortened and easier dismissal procedures Employees have a conditional right to expand/reduce their working hours. Facilitations for improved combinations of ‘work and care’. More possibilities for employers to make the length of the workdays and workweeks dependent on business activity More possibilities for sectors and companies to make tailor made arrangements for contracts and working time, deviating from law standards 16

Flexicurity - security measures: Strengthening position of a-typical workers:  Assuming existence of an employment contract  Conditional assumption of agreed working hours Minimum pay of 3 hours when a worker is called for work 0-hour contracts: employers have to resume paying for non-worked hours after six months Temp-agency-worker get normal employment contract after the first 26 weeks Requests to terminate employment contract of occupationally disabled employee must be accompanied by a reintegration plan Collective Bargaining Agreement for workers in temporary work agencies 17

Results of flexicurity? No – yes, partly Identified economic policy: knowledge, services & trade economy Active enterprises with multinational focus Sound image – true or not true…. Easiness of doing business Social (partnership) climate Educational policies and facilities Social security & flexibility arrangements 18

Results Netherlands 19

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Developments Netherlands 21

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International comparison – part time work 23

International comparison – temporary contracts 24

International comparison: market penetration temp agencies 25

International comparison: number of temp agencies 26

International comparison: reasons for accepting temp work 27

International comparison: Flexicurity arrangements 28 Security + Source: IP Flexum Flexibility - Italy Belgium Finland Germany Spain Netherlands Denmark

Group assignment How does Turkey score in a flexicurity framework Could flexicurity help in making Turkey’s labour force more competitive? Can it reduce unregistered employment? Do you see opportunities? Where? What is essential? 20 minutes group discussion 5 minutes prepare report 5 minutes presentation 29