Industrial Relations in Europe 2012 - European Commission - Europa

Through the AGS the Commission has emphasised the need for modernising wage-setting systems,
so that wage developments better reflect developments in labour productivity and competitiveness.
This is a necessary condition to reduce unemployment and favour correction of large
macroeconomic imbalances that have materialised in a number of European countries. The role of
social partners and collective bargaining has to be respected in the process. The Commission is
engaged to promote and support social dialogue throughout the EU, while fully respecting the
autonomy of the social partners and the diversity of national systems of industrial relations.
The Employment Package, presented in April 2012, proposes to reinforce the involvement of the
EU social partners in the European Semester, together with the reinforcement of multilateral
surveillance in the area of employment policies and a strengthening of the link between
employment policies and relevant financial instruments. Among other elements the Commission
has put forward plans for EU-level exchanges of views and monitoring on wage developments. A
first exchange with the social partners on wages developments at EU level took place at the end of
January 2013.
Flexicurity
In May 2011 the European social partners completed a joint study on The implementation of
flexicurity and the role of the social partners, the main purpose of which was to “jointly monitor the
implementation of the common principles of flexicurity, notably in order to evaluate the role and
involvement of the social partners in the process and to draw joint lessons.” A further aim was to
promote greater trust and mutual understanding among the social partners to facilitate the
implementation of the flexicurity principles at national level. The project specifically examined the
impact of the crisis on the concept of flexicurity.
Importantly, the study showed that if flexicurity is implemented in a balanced way, an
overwhelming majority of employers and a certain majority of trade unions believe that it has the
potential to provide win-win situations. At the same time, however, the project indicated that certain
challenges remain, and not only those caused by the 2008 global financial and economic crisis. In
particular, in countries where the past decade has been characterised by strong pressure towards a
liberalisation of labour law regulations and more flexible forms of employment, it has proved very
difficult for the social partners to develop a joint understanding and common view on flexicurity.
The study uncovered rather worrying evidence from countries normally cited as models of
flexicurity, namely the Netherlands and Denmark, where trade unions are concerned about negative
effects of recent reforms and changes in the balance of flexibility and security in the labour market.
The Dutch trade unions reject the concept of flexicurity and while the Danish trade unions are still
convinced of the potential strength of this labour market model, they are concerned about the
erosion of some of its major components.
The major concern of trade unions in most countries is related to the imbalance of flexibility and
security in today’s labour market, the polarisation between workers “inside” and at the “margins”,
the increase in precarious forms of work and other trends of labour market segmentation. In this
context, both trade union representatives and employers have stressed the need to define “modern
social protection rights” that reflect the challenges and risks in today’s labour markets. Making the
notion of flexicurity live for Europe’s small and micro businesses is also a major challenge that can
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