1. © Erling Rasmussen & Jens Lind, 2013
Labour market regulation in Denmark during and beyond the economic crisis
Erling Rasmussen & Jens Lind
AUT, Auckland, New Zealand & Aalborg University, Denmark
© Erling Rasmussen & Jens Lind, 2013

2. © Erling Rasmussen & Jens Lind, 2013
Overview
Focus on the ‘Danish Model’ of ER
Includes supporting ‘flexicurity’ approach
Successful but under various pressures
Paper points to 3 key types of ‘threats’
Focus: changes in ER structures & behaviours
Part of larger DK-NZ comparative study
Regulatory & systemic NZ changes
Path dependency & changing key features
© Erling Rasmussen & Jens Lind, 2013

3. © Erling Rasmussen & Jens Lind, 2013
How can this work?
“Despite high taxes, high unionization rates, and egalitarian income distribution they demonstrated from the mid-1990s to 2008 that it was possible to improve competitiveness, secure macroeconomic balances, lower unemployment, and engage a high proportion of women, youngsters, and senior people in economic activity, while state institutions played a large role in the economy” (Kristensen & Lilja, 2011: vii).
© Erling Rasmussen & Jens Lind, 2013

4. Contextual & regulatory changes
Contextual change
Economic & public policy thinking moves away from traditional ‘social democracy’
‘Flexicurity’ is undermined
Does emphasis on ‘flexibility’ deliver dynamics?
Public sector employers change tack
‘collectivism’ v/s management decisions
Cost-cutting aligns with managerial control
© Erling Rasmussen & Jens Lind, 2013

5. DK’s ER regulatory approach
DK has a voluntaristic tradition
Build on collectively-agreed regulation
More scope & high coverage since 1980s
Strong workplace employee participation structures (eg. OHS Com., Works Councils)
Move to adjust to market & EU changes
Growing concerns about non-influence
Issue 1: union ability to influence outcomes
Issue 2: atypical work & workforce migration
© Erling Rasmussen & Jens Lind, 2013

6. 4 key ‘threats’ to DK’s ER model
Weakening of trade unions
Fewer members & new accommodating unionism
Decentralisation of collective bargaining
‘ability to pay’ & less solidaric wage setting
EU influence & rise in migrant labour
More transient workforce limits solidaric behaviour
Exploits lack of coverage of low wage work
Employment/unemployment policies
Less ‘active labour market policy’ & security
© Erling Rasmussen & Jens Lind, 2013

7. © Erling Rasmussen & Jens Lind, 2013
Is the end nigh?
Too early to call
Still high bargaining coverage & union influence
‘Danish Model’ has been under threat before
Labour market performance isn’t substandard
Change in union role & behaviour
This has wider implications re: ‘knowledge society’
Loosing ability to influence on work & workplaces
Main worry(?): employer reactions
© Erling Rasmussen & Jens Lind, 2013

8. © Erling Rasmussen & Jens Lind, 2013
Conclusions
Danish changes have wider theoretical & empirical labour market implications
Successful model is not pre-ordained
Continuation: how much can key hallmarks change?
Model highlights alternatives to standard ER & public policy prescriptions from OECD, etc.
Have changes undermined ‘Danish Model’?
Economic & social context is very important
Less union influence on ER processes & outcomes
Growing concerns around atypical employment
© Erling Rasmussen & Jens Lind, 2013