Euro buzzwords, no. 749: Flexicurity
It's probably a good thing that the news that the European Commission formally adopted a paper on "flexicurity" on Wednesday was ignored in the UK, where the floods and the small matter of a change of prime minister took precedence.
If the Commission's latest attempt to promote a debate on labour market reform and the European social model had been reported in the UK, no doubt most attention would have focused on the word itself: "flexicurity" - an ugly neologism if ever there was one, destined to join "subsidiarity" in the list of Euro buzzwords that plain-speaking, no-nonsense Brits (me included) love to hate.
But that would be a shame, because the paper - Towards Common Principles of Flexicurity: More and better jobs through flexibility and security (PDF format, 90K) - discusses many crucial issues intelligently and is certainly worth a read for anyone interested in how a public policy framework can marry the best elements of the European social model with the dictates of the global economy.
The paper, which is really a discussion document and is non-binding on member states, defines "flexicurity" as an "integrated strategy to enhance, at the same time, flexibility and security in the labour market". It is an alternative to an approach based on stringent employment protection legislation, characteristic of several EU states including France and Spain, on the one hand, and to the "hire and fire" labour market of the United States, on the other.
The problem with a highly regulated employment protection model, says the Commission, is that it reduces the number of dismissals at the expense of restricting the access of the unemployed into work and encouraging the use of temporary contracts with low protection. The labour market becomes segmented into an elite who can't be sacked and a marginal workforce who can't be offered permanent jobs.
The key components of the alternative are:
– flexible and reliable contractual arrangements (from the perspective of the employer and the employee) through modern labour laws, collective agreements and work organisation;
– comprehensive lifelong learning strategies to ensure the continual adaptability and employability of workers, particularly the most vulnerable;
– effective active labour market policies that help people cope with rapid change, reduce unemployment spells and ease transitions to new jobs; and
– modern social security systems that provide adequate income support, encourage employment and facilitate labour market mobility. This includes broad coverage of social protection provisions (unemployment benefits, pensions and healthcare) that help people combine work with private and family responsibilities such as childcare.
All these ideas are at the least worthy of serious debate. If only they didn't come with that horrible word attached.
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