Flexicurity an answer to the challenged European welfare states

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Flexicurity - an answer to the challenged
European welfare states?

• Mikkel Mailand
• Employment Relations Research Centre (FAOS)
• Department of Sociology, University of Copenhagen
  
• University of Copenhagen,
• November 5, 2007

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Lineout

• What is flexicurity and why the focus on it?
• Flexicurity in more details - definitions
• The basics of the Danish flexicurity-model
• The context of flexicurity in Denmark
• Variations within the Danish flexicurity model
• What can be learned from the Danish flexicurity
  model?
• Is flexicurity an answer to the challenged
  European welfare state?

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1. What is flexicurity and why is it important?

• Holland since the mid1990s
• 1995 Flexicurity as shift from job security to
  employment security
• 1999 Legislation on flexibility and security
• The EU level in the 2000s
• The guidelines of the European Employment
  Strategy (EES) make explicit references to the
  balance between flexibility and security from 01
• 2006 EU communication on labour law emphasising
  FC and initiation of a process towards adoption
  of common principles for FC in late 2007
• Why is flexicurity taken up on the EU-level?
• promise the best of two worlds
• might be an acceptable alternative to pure
  liberalisation

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2. Flexicurity in more details definitions

• Wilthagen et al. 2004 - definition and components
  
• to enhance the flexibility of the labour
  markets, work organisation and labour relations
  on the one hand, and to enhance security
  employment security and social securityon the
  other hand
• flexibility external numerical, time,
  functional, wage
• security job, employment, income, combination
• deliberate and synchronised efforts and include
  disadvantaged groups
• European Commission 2007 - definition and
  components
• integrated strategy to enhance flexibility and
  security
• flexible and reliable contractual arrangements
• comparative lifelong learning strategies
• effective active labour market policies
• modern social security systems

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3. The basics of the Danish flexicurity model

• The Danish Flexicurity Model (PK Madsen et al.)

The main axis of the flexicurity model
Flexible labour market
The qualification effect of the LMP
Active LMP
Generous welfare schemes
Motivational effect of ALMP
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4. The context of flexicurity in Denmark

• The broader Danish model for labour market
  regulation
• historically rooted model, not a deliberate
  strategy
• strong labour market organisations
• self-regulation collective agreements with high
  coverage levels important for flexibility and
  less important for security
• consensus-model, including wage-restraint
• mutual trust between the actors
• Other important contextual features
• highly skilled labour force
• high minimum-wages
• affordable childcare facilities

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5. Variations within the Danish flexicurity model

• Not everybody is covered equally by both parts of
  the model
• the ideal type flexicurity-employee is a hourly
  paid blue-collar worker in manufacturing and
  construction
• income security of salaried employees reduced,
  but still high relatively long terms of notice
  (gtreduced flexibility)
• weak groups benefits from flexicurity, but income
  security of some uninsured unempl. (incl.
  immigrants) severely reduced increasing demands
  for labour market participation/activation
• is the Danish flexicurity model an insider-model?
  No

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6. What can be learned from the DK flexicurity
model

• Difficult to transfer the whole model
• context reforms have to be mediated through
  deep-rooted institutions
• flexicurity the Danish way is expensive are
  taxpayers willing to pay?
• flexicurity the Danish way is demanding are
  the organisations strong enough are they
  cooperative enough do they trust each other?
• flexicurity debate face make-work-pay debate
  which one is strongest?
• Inspiration from the model is possible
• inspiration ok, but be careful if just one or two
  of the three elements are taken back home from
  Copenhagen
• learning 1 build trust between actors in labour
  market regulation
• learning 2 establish a labour market where firms
  and employees feel safe enough to be willing to
  take risks
• if trust among all actors is necessary for
  flexicurity, social partners have to be involved
  in flexicurity policy formulation
• if trust is to be created or sustained, and
  social partners are involved, win-win reforms are
  more likely than win-loose reforms

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7. Is EUs flexicurity initiative the answer?

• Draft common principles of flexicurity
• reinforcing the implementation of the EUs
  strategy for Growth and Jobs and strengthening
  the European social models
• striking a balance between rights and
  responsibilities
• adapting flexicurity to different circumstances
• counteract segmentation reduce the gap between
  insiders and outsiders
• developing internal and external flexicurity
• promote equal opps and opportunities to reconcile
  work and family life
• FC requires a climate of trust and dialogue
• ensuring a fair distribution of the cost and
  benefits of the flexicurity policies and
  contribute to sound budgetary policies

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7. Is EUs flexicurity initiative the answer?

• Four draft flexicurity pathways
• tackling contractual segmentation
• developing flexibility within the enterprises and
  offering transition security
• tackling skills and opportunity gaps
• improve opportunities for benefit recipients and
  informally employed
• How has EUs flexicurity initiative been received
  so far ?
• great interest from many government
• some scepticism from trade unions and socialist
  parties
• Is the initiative the answer to the challenged
  welfare states?
• EUs flexicuity initiative so far very broad and
  general
• learning possible, but difficult
• flexicurity relates only to some problems