tilburguniversity.nl/flexicurity

1. www.tilburguniversity.nl/flexicurity The Concept of “Flexicurity” A new approach to regulating employment and labour markets Ton Wilthagen Thomas Bredgaard wilthagen@uvt.nl thomas@socsci.auc.dk Flexicurity Research Programme

2. The Flexibility-Security nexus On the one hand: there is a strong demand for further flexibilisation of labour markets, employment and work organisation At the same time: an equally strong demand exists for providing security to vulnerable groups of employees and to outsiders in the labour market

3. Developments in EU policy-making (1) 1993: White Paper on Growth, Competitiveness and Employment 1997: Green Paper on Partnership for New Organisation of Work: “The key issue for workers, management, the social partners and policy makers alike is to strike the right balance between flexibility and security”

4. Developments in EU policy-making (2) Several EU summits: Essen 1994, Florence 1996, Amsterdam 1997, Luxembourg 1997, Lisbon 2000 … showing the emergence of a social policy perspective next to the already existing economic perspective

5. The European Employment Strategy (1) ‘Improving quality and productivity at work’ is one of the overarching objectives. Quality is regarded a multi-dimensional concept, including among other things flexibility and security

6. The European Employment Strategy (2) Specific employment guideline 3: “Address change and promote adaptability and mobility in the labour market” “Member States will facilitate the adaptability of workers and firms to change, taking account of the need for both flexibility and security and emphasizing the key role of the social partners in this respect.”

7. Flexicurity as a ”state” • a degree of job, employment, income and combination security that facilitates the labour market careers and biographies of workers with a relatively week position and allows for enduring and high quality labour market participation and social inclusion, while at the same time providing • a degree of numerical (both external an internal), functional and wage flexibility that allows for labour markets' (and individual companies') timely and adequate adjustment to changing conditions in order to maintain and enhance competitiveness and productivity.

8. Flexicurity as 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 to enhance security – employmentsecurity and social security – notably for weaker groups in and outside the labour market on the other hand

9. Various trade-offs between flexibility and security

10. Various modalities/equilibriums of flexibility vs. security (1) Netherlands:Trade off between external-numerical (temp work), internal-numerical (part-time work) and employment security Denmark: a “systematic” and long standing state of both flexibility and security Belgium: Fordist flexibility (over-time, shift-work) and fordist security (income security) Germany: Security over flexibility?

11. Various modalities/equilibriums of flexibility vs. security (2) Spain: Bifurcation of the labour market: secure vs. flexible groups New Eastern EU-member states: High flexibility for enterprises, increased security for outsiders in the labour market Japan: High internal flexibility and high job / employment security USA: Flexibility over security?

12. Flexicurity in the real world (1) Question: Does Flexicurity exist in reality? Answer: Well, Denmark, Netherlands and Sweden come relatively close first evidence shows. Question: Is Flexicurity related to economic performance? Answer: Well, these three countries have been doing quite well over the past years …

13. Flexicurity in the real world (2) Question: Can a country quickly become a “flexicurity state?” Answer: Not likely; depends on sense of urgency, basic levels of both flexibility and security, decentralisation of labour market policy, coordination and negotiation platforms, involvement of social partners, trust, certain architects. Maybe country size and labour market conditions matter as well … Question: Is the concept of Flexicurity merely a veil for further deregulation? Answer: The final judgment is not yet in. You have to make flexicurity work! Answer: These three countries have been doing quite well over the past years

14. Preconditions for Flexicurity Strategies • Platforms for coordination, consultation and negotiation (at central and decentral level) • Role of social partnership and trust. Negotiated flexibility • Extending the scope of collective bargaining • Acceptance of employment rather than job security • Decentralisation of labour market policy, coordinated decentralisation • Need for certain “architects” • Sense of urgency and basic levels of flexibility and security • Favourable labour market conditions? Country size?

15. Points for discussion • Flexicurity: rhetoric or myth versus reality? How secure is flexicurity? • Flexibility through security and security through flexibility? The best of both worlds? Can we have the cake and eat it too? • Preconditions for flexicurity • Can EU member states learn from each other? • Future role of the European Commission, social partners and the European Employment Strategy