Transcript This is the title of the presentation

Flexicurity
Young professionals – Europe’s resource and opportunity
Conference 2006
28-29/11/2006
Janine Leschke
European Trade Union Institute for Research, Education and Health and Safety
http://www.etui-rehs.org
Definition of Flexicurity
Flexicurity is a policy-strategy that attempts,
synchronically and in a deliberate way, to
enhance the flexibility of labour markets, the
work organisation and labour relations, on the
one hand, and employment and income (social)
security – notably for weak groups inside and
outside the labour market – on the other
(Wilthagen/Rogowski, 2002).
Forms of flexibility
numerical flexibility
functional flexibility
internal
flexibility
adaptation of working hours:
adaptation of work organisation
to new needs:
external
flexibility
hire and fire:
fixed-term employment,
temporary agency work,
work on call,
marginal employment
part-time, overtime, working
time accounts, employment- continuing education, on-the-job
securing reduction of working training, life-long learning, job
hours, week-end working
rotation
adaptation of unemployed and
productive flexibility:
active labour market policies
(prevent mismatch),
subcontracting, use of freelance
labour
Source: adapted from European Foundation (2003) and Keller/Seifert (2002).
Forms of security

Job security: certainty of retaining a specific job with a
specific employer

Employment or employability security: certainty of
remaining in work, not necessarily with the same employer

Income security: income protection in case that paid work
ceases, for instance, through dismissal or mass
unemployment, or through chronic illness, disability or
retirement

Option/combination security: certainty of having various
employment options, for instance the possibility to combine
paid work with unpaid work (for example caring or civic
engagement) or the right for intermediate working time
reduction.
The flexibility-security nexus
flexibility/
security
job security employment/ income security
employability (social security)
security
internalnumerical
externalnumerical
internal
functional
external
functional
Source: adapted from Wilthagen/Tros 2004.
combination/
option security
Denmark and the Netherlands as flexicurity
examples
Denmark and the Netherlands are usually reported as good practice
cases. However, both countries follow quite different concepts of
flexicurity:

Denmark combines low employment protection legislation with
generous unemployment benefits and high spending and intensity on
active labour market policies,

the Netherlands, on the other hand, combine high employment
protection with high variability of employment contracts (part-time
employment, fixed-term employment, temporary agency work).
There are thus alternative path to flexicurity  country specific
strategies which are in line with political traditions and institutions
thus have to be developed.
Fixed-term employment by age group, 2006
(% total number employees in age group)
15-24
25-49
50-64
70
60
50
40
30
20
10
0
EE MT LT IE UK SK HU LV CZ CY DK GR LU BE AT IT EU EU NL PT FR FI DE SE SI ES PL
15 25
Data source: Eurostat (2006, 2nd quarter).
BG RO
Fixed-term employment by reason among
youth, 2005
(% of total, 15-24)
Could not find permanent job
In education or training
No reason given
Did not want a permanent job
Probationary period
missing information
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
DE
IE
NL UK LV
SI
IT
DK FR
FI
SE HU PL LU GR BE PT SK CZ LT CY
Data source: Eurostat (2006, 2nd quarter). No data for Austria and Spain
BG RO
Fixed-term employment and security
Job security

Weak employment protection legislation resulting in low job security is
one of the essential features of fixed-term employment.
Employment (employability) security

Fixed-term workers are less likely to participate in further education
(especially employer sponsored training) than permanent workers
Social security

Access can be problematic for fixed-term or casual workers mainly due
to the required minimum contribution period.

Vicious relationships are possible (cycling between fixed-term
employment and unemployment or between different fixed-term jobs)
Combination or option security

Clear trade-offs due to insecure jobs or in the case of temporary agency
work irregular working schedules
Fixed-term employment and security - How can
trade-offs be changed to complementarities?
Job security:
 Lower job security is the defining feature of this employment type.
Nevertheless, governments should be careful not to implement to
high differences in EPL between permanent and temporary jobs
Employability security:
 Guarantee equal access to further training, life long learning, ALMP
for all independent of contract type (here, the state has to step in)
Income security:
 Broaden access to unemployment benefits and other social security
benefits; make social security less dependent on ‘standard
employment‘, possibly introduce a basic benefit for all
Combination/option security:
 The state could introduce encompassing „new social rights“ such as
a right to substantive training leaves, the right to sabbaticals, to
income insurance at temporary working time reduction, etc.
Conclusions on flexicurity
General conclusions

Not one flexicurity strategy but many

Importance of balancing flexibility and security – recent labour
market reforms, for instance in Germany, have strenghtened
flexibility more than security

Danger in current discussion that ‘flexicurity‘ is used for just anything

Necessity to re-focus discussion on flexicurity to specific labour
market groups (young, women)
What‘s in it for youth?

Shift from job security towards employment or employability security
could well be in the interest of more mobile young people in that it
would facilitate transitions from one job to another