An overview of the main issues facing EU labor markets right now
The European economy is finally showing signs of coming out of a crisis that has lasted way too long. Economic growth, however, is still feeble, and forecasts are hardly reassuring. According to experts, long term solutions to stabilizing the European economy require changes in the relationship between employers and employees. To this end, a permanent and constructive social dialogue is essential. At EU level, the institution that is meant to provide this dialogue is the European Economic and Social Committee. Radio Romania International asked Jacek Krawczyk, head of the group of employers with the Committee, what the challenges were in terms of European social dialogue under the new circumstances:
“It is quite clear that if we are to provide social protection at a high level, if we are discussing about efficient wealth systems, social wealth systems, we need a competitive economy, and I think this language of competitive economy, competitive enterprises, for the good of society, for the good of citizens, is becoming more and more a reality. So it is no longer our interest or your interest, and it is no longer the blame-shame game. I think we are discussing more and more openly about what we need to do to have the European social economy continue being a success, as it was a success in the past. I think we have a very high standard of social protection, we have a very high standard of labor protection, we have a very civilized labor market in the European Union, definitely the most developed in the world. We have a very developed social security system, and what we need to discuss now is what can be improved, but we start at a very high level, that’s why we have no challenges.”
In order to face the social challenges brought on by new economic developments, the European Commission has launched a debate on the so-called European social rights pillar. This is a framework meant to lead to an evolution of the process of creating jobs and sustaining a high-performance social system. The European Economic and Social Committee also got involved in the European pillar of social rights. Here with details is Jacek Krawczyk, head of the group of employers with the Committee:
“We have just completed work in our committee an opinion on the pillar of social rights, I was one of the three rapporteurs, First of all, the committee came up with a unanimous opinion. If you look at our composition, employers, trade unions and NGOs, to have a unanimous opinion, I think, is valuable. What we have focused on in the paper is the challenges ahead of us regarding the future of work, because of the incredible change brought about by the digital revolution, which will change labor markets and relations. A lot of jobs will disappear, new ones will be created, and the question is how we, in the EU, will respond to that. So instead of quarreling about some traditional conflicts, we decided to look into the future. Of course we believe there is a need for more transition, we have to support citizens in getting new skills, we also have to make the necessary adjustments in education systems, we have to support the creation of a healthy infrastructure for R&D, for innovation. I think the digital revolution will change a lot, but this is one of the major challenges with regard to the labor market in the EU, even if some of our citizens don’t realize it, but this is like a speed train, it comes quickly and leaves quickly, so if we don’t jump on it, it will go away, then countries like the US or Korea will take the lead for the next decades.”
Jacek Krawczyk, head of the group of employers with the Economic and Social Committee, emphasized a number of concrete aspects:
“Of course the problem is the future of systems like that of pensions. We need to make sure that, with this changing economy, we still find a way to finance, responsibly, healthcare, some public services, but also pension systems. And we were able to create a common opinion on that. So on one hand I think that our colleagues in trade unions had to reduce their expectations as well, because initially I think that some of them wanted the pillar of human rights to be a call for more regulation. But I think that, as we progressed in our discussions, of course there will be, perhaps, regulation, but there should be a broad range of tools, legislative, non-legislative, some benchmarking, some best practices, using, for instance, the European semester mechanism, but this is a very broad subject. The Pillar should be a major proposal for EU citizens. There are so many discussions nowadays that EU institutions are so far away from citizens, many people, including myself, believe the gap is too big. If we want to close that gap, we have to make sure that our citizens maintain their interest in the EU, and the EU has to provide to them safety, opportunities for prosperity, and, of course, as always in the past, peace, cooperation. Safety and prosperity for big groups in society are some of the reasons for the creation of the Pillar of Social Rights.”
European expectations continue to be high, in spite of polls indicating rising skepticism regarding the EU and its institutions. The results of elections scheduled for this year in major EU countries, such as France and Germany, will go a long way towards redefining the European social model, with major effects in terms of reforming the European labor market. (Translated by C. Cotoiu)
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