1. Ola Asplund, IF Metall Anders Weihe, Teknikföretagen
CEEMET – IndustriAll
SD, Competitiveness & Employment WG
Cochairs summary of Joint Conclusion on Adaptability and Flexible Forms of Employment
Ola Asplund, IF Metall
Anders Weihe, Teknikföretagen

2. Cochairs summary… …of discussions during 2011 and 2012 in the workgroup on “Competitiveness & Employment”
Committee has discussed topics of adaptability and drivers for change (in 2011) and flexible forms of employment (in 2012).
A joint conclusion paper is adopted after each separate meeting of the group.
Understanding of relevant factors and driving forces regarding adaptability as a starting point before entering into the discussions on flexible forms of employment.

3. Starting point
Companies must be able to adapt to a fast changing global business environment, cycles and recurring economic shocks.
At the same time, a need for all workers to have decent jobs and working conditions, adequate social security, education and workers’ rights.
The pace of change has significantly increased – represents an adaptability challenge for companies and their workforces

4. Drivers of variation Short-term and long-term drivers
Predictable and non-predictable drivers
Different types of drivers call for different tools
The workgroup has identified
a number of main drivers for adaptability
benefits and drawbacks of use of such
instruments to handle adaptability needs

5. Long term drivers
Long-term drivers relate to structural change – a permanent feature of industrial development, due to:
faster pace of technological change
penetration of ICT
the need to meet the sustainability challenge
demographic change and others
They are also, to an extent, predictable drivers
Long-term drivers of change require a more qualitative approach:
innovative work organization
developing skills
communication etc.

6. Short term drivers
Short-term, non-predictable drivers can also have considerable effects for MET companies.
Numerical flexibility such as working time flexibility might help to provide solutions to short-term market changes

7. CEEMET Survey on Flexible forms of Employmentin the MET sector (2011)
Fixed-term contracts are used at a level of around 4.3%
Temporary agency work (TAW) at around 5.4%
Part-time work at around 5%
A substantial variation between industries, companies and regions.
An increase in the use of TAW – a relatively new type of flexible employment
Fixed-term contracts and part-time work – relatively stable over the years.

8. Discussion on flexible employment
Part-time work is not a major problem in the MET sector
Fixed-term work is mostly connected to specific needs (apprenticeship, maternity replacement etc.)
Employers believe that an increase in fixed-term contracts relates to rigidity of open-ended contracts
In general equal treatment in terms of working conditions between workers on fixed-term and open-ended contracts
A fixed-term contract can be a stepping stone into a permanent contract

9. Discussion on flexible employment
Temporary agency work is controversially discussed between the social partners
The triangular relationship between worker, user-company and agency impacts on conditions, collective bargaining coverage and union membership
Unions contest the use of TAW to execute core tasks over long periods of time as this contradicts the notion of temporarily absorbing periods of high demand
Some companies have negotiated agreements with trade unions to limit the use and length of TAW
There are different rules regarding TAW in EU Member States, in some countries TAW is regulated by collective agreements.

10. Main drivers for the use of flexible employment are:
Companies’ flexibility needs
The wish to avoid effects of rigid regulations regarding dismissals
The need to find specialists
Employee needs such as work/life balance (e.g. in case of part-time work)

11. Further…
Cost advantages of hiring TAWs are likely to disappear when the EU Directive on TAW is fully implemented
The use of flexible employment can pose challenges to maintaining a company’s skills base
Trade unions emphasize that most workers would prefer an open-ended contract
Flexible employment can lead to financial insecurity, difficulties in life-planning and other disadvantages such as problems in obtaining loans

12. Minimizing drawbacks – Inside Company
Ensure flexible working time arrangements /job design reasonably correspond to employees’ needs – may reduce the need for part-time work
In cases of job sharing, it is necessary to ensure complementary skills
A joint interest to limit excessive use of fixed-term work to prevent the erosion of a company’s skills base
The non-discrimination principle regarding working conditions and pay must be respected and enforced
Companies own interest on realistic/requisite levels of TAW – prevent unnecessary costs and maintain skills base
The trade unions underlined that it was necessary for TAWs to be covered by collective agreements
Smart preparing can help companies to deal with fluctuations: optimization work organization, development of skills and use of flexible working hours

13. Minimizing drawbacks – Outside company
Member States could improve facilities for child care and care for the elderly thereby reducing the need for part-time work.
Reforms of employment legislation might reduce the need for fixed-term employment
The operation of regional employment pools can reduce the need for fixed-term work
The non-discrimination principle regarding working conditions and pay must be respected and enforced. Equal treatment of temporary agency workers will likely be ensured by the EU Directive once fully implemented.
Job insecurity for workers on fixed-term contracts in times of crisis and high unemployment, is problematic for the worker and divisive for society. Solutions not always in the hand of companies