EU: Social partners agree on inclusive labour markets

EU-level trade union and employers' organisations signed a framework agreement in March 2010 on inclusive labour markets. It commits their members across Europe (such as the CBI and TUC in the UK) to a range of actions aimed at helping disadvantaged people to enter, remain and develop in the labour market.

On this page:
Social dialogue
Agreement on inclusive labour markets
Aims of framework agreement
Scope of framework agreement
Obstacles to inclusive labour market
Social partners' actions
Recommendations to public authorities
Implementation and follow-up
Inclusive growth.

Social dialogue

The central "cross-industry" European-level social partner organisations are:

• the European Trade Union Confederation (ETUC);
• BusinessEurope, representing private sector employers;
• the European Centre of Employers and Enterprises providing Public Services (Ceep); and
• the European Association of Craft, Small and Medium-sized Enterprises (Ueapme).

For the purposes of EU-level social dialogue, the ETUC delegation also involves the Eurocadres/CEC liaison committee, which represents managerial and professional staff unions.

The social partners have a formal role in the formulation and implementation of EU employment legislation and policy (currently enshrined in arts.154 and 155 of the Treaty on the Functioning of the European Union). They are consulted by the European Commission on proposals for EU action in this field and given the opportunity of negotiating European-level agreements on the issues concerned, which may be implemented either by EU Directives or by the social partners themselves. This process has led to agreements on parental leave (1995 and 2009), part-time work (1997) and fixed-term contracts (1999), all of which were implemented by Directives, and an agreement on telework (2002), which was implemented by the social partners' national member organisations.

In addition to their consultative role, the social partners engage in a more independent, bipartite dialogue among themselves, resulting in a range of joint work and initiatives, which since 2003 have been based on a series of work programmes. The outcomes of this process have included:

• a framework agreement on work-related stress, signed in 2004, which was implemented by the social partners' member organisations in the member states (such self-implemented accords are known as "autonomous" agreements);
• an autonomous framework agreement on harassment and violence at work, signed in 2007;
• a "framework of actions" for the lifelong development of competencies and qualifications, agreed in 2002; and
• a framework of actions on gender equality, agreed in 2005.

Agreement on inclusive labour markets

The social partners' 2006-08 work programme included a commitment to conduct a joint analysis of the "key challenges facing Europe's labour markets", which would form the basis for a number of further initiatives, including the negotiation of an autonomous framework agreement on either the integration of disadvantaged groups on the labour market or lifelong learning.

The joint analysis of European labour market challenges was agreed by the social partners in October 2007. In the meantime, the European Commission had held a two-stage consultation in 2006 and 2007 on the "active inclusion of people furthest from the labour market". In March 2008, the social partners confirmed that they would negotiate an autonomous European agreement aimed at "facilitating access to and progression in the labour market for disadvantaged groups through a series of preventive and curative measures, including lifelong learning". Talks began in October 2008 and the commitment to an agreement on "inclusive labour markets" was reiterated in the 2009-10 work programme. An agreement was reached in December 2009 and, following approval by the signatory organisations, signed formally on 25 March 2010.

Aims of framework agreement

The framework agreement on inclusive labour markets aims to make a contribution to maximising the full potential of Europe's labour force, increasing employment rates and improving job quality, through measures including training and skills development. Inclusion is also described as an important element of Europe's response to long-term challenges, in particular demographic change, the shrinking working-age population and the sustainability of social protection systems. Further, inclusive labour markets are a way of taking advantage of new job opportunities such as those resulting from the "greening" of the economy.

The agreement is based on the principle that ensuring inclusive labour markets implies shared responsibilities for employers, individuals, workers, and workers' and employers' representatives. Public authorities and other actors have responsibilities in providing a framework that encourages and promotes inclusive labour markets, and an annex to the agreement contains recommendations to these authorities.

The agreement aims to:

• consider the issues of access, return, retention and development with a view to achieving the full integration of individuals in the labour market;
• increase awareness, understanding and knowledge among employers, workers and their representatives of the benefits of inclusive labour markets; and
• provide workers, employers and their representatives at all levels with an "action-oriented framework" to identify obstacles to inclusive labour markets and solutions to overcome them.

Scope of framework agreement

According to the agreement, inclusive labour markets allow and encourage all people of working age to participate in paid work and provide a framework for their development. The agreement covers people who encounter difficulties in entering, returning to or integrating into the labour market and those who, although in employment, are at risk of losing their job. While recognising that these people face different challenges that require adapted measures, the agreement does not focus on specific groups but provides a general framework focusing on what can be done to enhance labour market inclusion.

Several factors, individually or in combination, may encourage or discourage labour market participation. These include:

• contextual factors linked to the economic and labour market environment, such as employment opportunities, the existence and quality of care facilities and employment services, transport networks or housing, as well as the interplay between fiscal and social policies;
• work-related factors, such as work organisation and the work environment, recruitment processes, technological change and training policies; and
• individual factors linked to aspects such as skills, qualification and education levels, motivation, language knowledge, health status and frequent or long periods of unemployment.

Obstacles to inclusive labour market

The agreement identifies the following main obstacles to an inclusive labour market:

• Obstacles regarding the availability of information. This refers to information relating to: jobseekers and available jobs, including that notified to public or private employment agencies; the content and conditions of jobs; prospects for career development; training schemes; access to advice and guidance; support measures to assist employers in filling vacancies and "initiatives regarding the image conveyed by a sector or a company".
• Obstacles regarding recruitment. These include: recruitment methods that are ineffective in attracting a wide diversity of applicants for vacancies without discrimination; the effects on employability of frequent or long absences from the labour market; and the absence of special advice and guidance on how to apply for and perform jobs.
• Obstacles regarding training, skills and capabilities. These relate to: investment in or access to learning opportunities; the existence and/or recognition of individuals' skills (formal, informal, technical, social and language skills) and professional experience; the match between the training offered by education systems, vocational methods and the needs of the labour market.
• Obstacles regarding the responsibilities and attitudes of employers, workers, their representatives and job seekers. These relate to: motivation; self-confidence; anticipation of and adaptation to change; the quality of information, consultation, internal communication and social dialogue; support and accompanying measures for people who encounter difficulties in entering, returning to or integrating into the labour market or are at risk of losing their job; and pressures from management, colleagues, customers and families.
• Obstacles regarding working life. These include working conditions and work organisation, work-life balance policies and career development prospects.

Social partners' actions

The social partners consider that labour market inclusion is an essential condition for cohesion, including the fight against poverty, and economic success. To overcome the obstacles identified above, achieving inclusive labour markets entails various measures, actions and/or negotiations at all levels, which can be taken by employers, workers, their representatives, jobseekers and third parties. These should promote the creation of jobs and the employability of workers and jobseekers, with a view to integrating everyone in the labour market.

The specific measures set out in the agreement are:

• where relevant, organising awareness-raising campaigns and designing action plans to "improve and/or restore the image" of a sector or occupation;
• where relevant, organising awareness-raising campaigns and designing tools to promote the diversity of the workforce;
• disseminating information about the availability of jobs and training schemes;
• cooperating with the "third sector" (voluntary and not-for-profit organisations) to support those who encounter particular difficulties in relation to the labour market;
• cooperating with education and training systems in order to better match the needs of the individual and the labour market, including by tackling the problems of basic skills (literacy and numeracy), and promoting vocational education and training, and measures to ease the transition between education and the labour market;
• implementing "specific and effective" recruitment methods and induction policies, as well as ensuring the "right working conditions to welcome and support" new entrants in companies;
• introducing individual competence development plans (in line with the social partners' 2002 framework of actions for the lifelong development of competences and qualifications), jointly elaborated by the employer and the worker, taking into account the specific situation of each employer, particularly small and medium-sized enterprises, and worker (these plans identify the required competences for a job and actions to develop the worker's competences);
• improving transparency and transferability, both for the worker and for the enterprise, in order to facilitate geographical and occupational mobility and increase the efficiency of labour markets, by promoting the development of means of recognising and validating competence, and improving the transferability of qualifications; and
• promoting more and better apprenticeship and traineeship contracts.

The agreement's signatories "recognise that they have a responsibility to deepen their reflections and engage themselves to find solutions and mobilise their members". Their exchanges, joint opinions and recommendations in this field aim to strengthen the access, retention, return and development of people in a precarious situation in relation to employment.

Recommendations to public authorities

An annex to the agreement sets out a series of specific recommendations to the public authorities and other actors. The EU-level social partners recommend that the member states design and implement comprehensive policies to promote inclusive labour markets. Wherever possible, and taking into account specific national situations, the social partners should be involved at the appropriate level in these measures, which should address:

• the extent and quality of specific transitional measures for people who encounter difficulties in the labour market;
• the effectiveness of employment and career advice services;
• education and training;
• the adequacy of investment in territorial (ie regional or local) development;
• the adequacy of access to transport, care, housing and education;
• the relative ease or difficulty of starting, sustaining and expanding businesses; and
• the role of tax and benefit systems.

The social partners also state that, alongside their new framework agreement, there are several legislative and non-legislative EU instruments whose implementation and application are particularly relevant in order to achieve the agreement's aims and principles. These instruments are listed in an annex and include: many of the social partners' agreements, frameworks of actions and joint analyses; and EU Directives on issues such as equality and discrimination, fixed-term work, temporary agency work and health and safety.

Implementation and follow-up

The national member organisations of the signatories - such as the CBI and the TUC in the UK - will promote and implement the framework agreement "in accordance with the procedures and practices specific to management and labour" in each EU member state (and in the other three European Economic Area countries - Iceland, Liechtenstein and Norway). The signatories also invite their member organisations in candidate countries for EU membership to implement the agreement.

The agreement must be implemented within three years of its signature (by March 2013). The signatories' member organisations will report on implementation each year and the social dialogue committee (the body that organises the cross-industry dialogue) will draw up an annual table summarising the ongoing implementation of the agreement, followed by a full report on implementation during the fourth year.

When implementing the agreement, the member organisations of the signatory parties will avoid placing "unnecessary burdens" on small and medium-sized enterprises.

Inclusive growth

The social partners presented their agreement to the "tripartite social summit" held before the European Council meeting of heads of state and Government on 25 and 26 March 2010. In a joint press release, the partners said: "With the EU unemployment rate currently at 9.5%, urgent and determined action is needed. Europe cannot afford such a waste of talent. Europe must make full use of its labour force potential, improve job quality and increase employment rates in the face of demographic ageing. Labour market inclusion is a key concern for European social partners and is essential to foster economic development and social cohesion. With this agreement, they commit to take concrete actions to help disadvantaged people to enter, remain and develop in the labour market."

The partners argue that implementation of the agreement will contribute to the European Commission's objective of achieving "inclusive growth" as part of the EU's Europe 2020 programme. This is a 10-year integrated economic and social strategy, proposed by the Commission to replace the current Lisbon growth and jobs strategy.

The framework accord on inclusive labour markets differs from earlier autonomous agreements reached by the EU-level social partners, for example on work-related stress and on harassment and violence at work. It is considerably less specific in its provisions than the previous agreements, committing the signatories only to adopting a range of general (and unquantified) actions and approaches aimed at getting disadvantaged people into the labour market. The agreement arguably has more in common with the "frameworks of actions" agreed by the social partners on the lifelong development of competencies and qualification, and on gender equality.

This article was written by Mark Carley, European editor.

European employment policy, practice and law, April 2010