Labour law in contemporary world: discussion of selected issues in light of European experiences Corinne Vargha International Labour Office Geneva D I A L O G U E

Drivers of labour law evolution Major changes in Government policies (democratisation, transition towards market economy, fight against unemployment and poverty, promotion of SMEs, etc..) Changes in working patterns and labour market ( rural-urban migration, informal economy, increased competition, new technologies, decline in standard employment

Economists do influence labour law evolution National policy choices are driven by a number of assumptions, including on the impact of labour market regulations on poverty reduction strategies and economic growth. These working hypotheses, sometimes supported by economic analysis or business surveys, challenge the need for and the level of protection provided for by statutory provisions and collective agreements.

As a result Labour law reforms are based on legal and economic arguments

Overall trends in Europe Flexibilization though not deregulatory trends (eg NL- DK- flexicurity, Biagi reform, contrat nouvel emploi) Collective bargaining is not predominatly anymore a wage setting instrument and benefits from political support Civil servants terms and conditions more and more frequently determined under private law Changes in working patterns and LM have lead to: –Narrowing scope of wage employment –Externalization of employment Crucial role played by EC law and ECJ case law on some topical issues (equal rights and equal remuneration)

Key European features Many countries rely on statutory regulation supplemented by collective bargaining (France, Germany, Italy, Spain) Other rely on collective bargaining + residual statutory regulation (Sweden, Denmark, Belgium)

New practices in industrial relations

Flexibility trade offs trade-offs at the national level usually cover 4 subject areas: –(i) macroeconomic stability (wage moderation together with budgetary, fiscal and monetary measures); –(ii) labour market flexibility (working-time, wages, employment contracts, etc); –(iii) promotion of employment (training, redistributing work, local development); and –(iv) reform of social security and social welfare systems.

Flexibility trade offs (ctd) At sectoral level, is a typical approach wage moderation + reduction of working time + increased working time flexibility

Flexibility trade offs (ctd) At enterprise level, the range of bargained solutions is even larger : –pay –job security – redundancy alternatives – working time –workers’ lifestyles

Central Europe Worldwide the most impressive change. 3 waves of Labour Law reform –Collective rights ( ILO minded reforms) –Reforms to adapt national law to market economy ( ) –Integration of acquis communautaire and new LC (2000 onwards) Weak law enforcement Essentially company level bargaining Relatively important national level social dialogue

Non EU members or candidates –Reforms at a slower pace –Strong influence of EC Law and law and practice of EU Members –The Office has been very active in the provision of advice to these countries (Albania, Bosnia, Serbia, Romania, Bulgaria, Kosovo, Ukraine, Russian Federation) –WB intervention in many cases (Croatia, Bosnia, Romania) –Some new Labour Codes have still a foot in the future and a foot in the past.