1999 Action Plan for Employment - Investing in People and Jobs - Belgium

Source: European Union

• Introduction
  1. Belgium's macro-economic policy in the European context
  2. Changes in the job market¹
     1. The employment rate is rising
     2. Employment is linked to economic dynamism
     3. An unemployment rate that is too high, but falling
  3. Employment policy in Belgium
• Report on the implementation of the employment guidelines
  • Section 1: Improving professional integration capacity
    • Guideline 1: Combating youth unemployment
    • Guideline 2: Combating long-term unemployment
    • Guideline 3: Going from passive measures to active measures
    • Guideline 4: Reinforcing professional integration capacity and maintaining the capacity to work
    • Guideline 5: Promoting an approach based on the partnership improving professional integration capacity
    • Guideline 6: Promotion of a lifelong learning approach based on the partnership
    • Guidelines 7 + 8: Facilitating the transition from school to work
    • Guideline 9: Promoting a labour market open to everyone
  • Axis II: Developing the entrepreneurial spirit
    • Outline 10: Substantial reduction of administrative expenses of entreprises
    • Outline 11: Making starting and managing a bussiness easier
    • Outline 12: Local employment, social economy, new activities
    • Outline 13: Make the most of the employment potential of the sector of services and of services to companies
    • Outline 14: Reduction of fiscal expenses on employment and reduction of indirect wage costs
    • Outline 15: Reduce the vat-rate on services that are very labour-intensive
  • Axis III: Encouraging the adaptation capacities of companies and their workers
    • Outline 16: Modernization of the organisation of work (1)
    • Outline 17: Modernization of work organisation
    • Outline 18: Investment in human resources
  • Axis IV: Reinforcing the policies of equal opportunities for women and men
    • Outline 19: Gender mainstreaming
    • Outline 20: Fight against discrimination between men and women
    • Outline 21: Combine family life and professional life
    • Outline 22: Facilitate reintegration in active life

Introduction

For the last several years Belgium's employment policy has been based on the recommendations of the European Union, in particular those approved at the Essen Summit in 1994. This policy has been reinforced and refocused based on the 1998 European employment guidelines.

In a difficult context (given the reality of the budget stabilisation and public debt reduction policy) this strategy has yielded very good results:

• 233,000 additional jobs were created in Belgium between 1990 and 1998, including 67,000 during the last two years. Three-quarters of these jobs were created in Flanders, 19% were created in the Walloon region and 4% were created in Brussels.
• the total volume of employment has never been as high as it is now;
• the rate of employment, which over the past few decades has always been very low in Belgium, has never been as close as it is now to the European average. The gap, which was still 8 points in 1990, is only 3 points today. These results have been obtained despite average economic growth that, due to the aforementioned context, has been slightly lower than Europe's average growth over the period in question. This indicates a greater intensity in jobs created as a result of economic growth;
• unemployment has been declining continuously since 1995. The number of fully unemployed job seekers who receive unemployment benefits once again fell below the level of 4,000 (the actual figure was 393,278 in April 1999, the lowest in seven years). The unemployment rate is also below the European average (9.2%, compared to 10.6% in 1997). The fall in unemployment is seen in the country's various regions.. However, the rate of unemployment is still much higher in the Walloon region (12.5%) and in Brussels (13.5%) than in Flanders (6.3%) and in the German-speaking community (4.3%). However, the Belgian unemployment insurance system is more open than most other European systems, in particular by granting unemployment benefits to young job seekers and to the long-term unemployed. The system’s specific characteristics help to reduce the poverty rate, which in Belgium is 6%. Unemployment expenses, and more broadly Social Security expenses, are nevertheless consistent with the European average, which demonstrates the efficiency of our system.

These good results must be consolidated and reinforced. We must continue to increase the rate of employment in order to reach the European average and we must continue to reduce the unemployment rate in order to catch up with the most successful Member States in this area. The point is not to set purely quantitative objectives, but rather, to establish targets that will increase economic dynamism and overall well being, thereby reinforcing socio-professional integration and reducing social exclusion. The 1999 Belgian employment action plan is based on this objective.

This second plan includes the following components:

• the 1998 Belgian employment action plan was fully executed. Certain measures that were already in gestation during the preparation of this plan yielded immediate effects. Others (that merely required the execution of decrees) were quickly operational. Still others, related to commitments by the social partners, have only been applied since 1999. Still others, involving the adoption of laws, have only been implemented since 1 April 1999. In addition, this 1998 action plan was prepared from a multi-year perspective.
• Belgium's employment policy is closely linked to the inter-professional agreements concluded by the social partners. These agreements are concluded for two years. The last inter-professional agreement concluded in December 1998 therefore covers the period 1999-2000. This agreement is remarkable for two reasons: on the one hand, because it follows a period of four years without an agreement of this type, and secondly, because it is quite similar to the 1998 Belgian employment action plan and sets important objectives and commitments in terms of wages, employment and training.
• The term of the current legislature will soon come to an end (after the elections of 13 June 1999).

For all these reasons, and, just like the guidelines themselves, more than anything else, the 1999 Belgian employment action plan is an extension and a reinforcement of the 1998 action plan. Once again focus is placed on the need to adopt a continuous multi-year approach for the process of the guidelines that were set out in Luxembourg in November 1997. Belgium is also in favour of the biannual process at the European level. Given the time needed to adopt and implement employment action, a period of two years is in most cases needed in order for a new system to produce all of its effects, to be assessed and, if applicable, adjusted.

The 1999 plan aims primarily:

• on the one hand, to take account of the assessment of the 1998 plan by the Belgian and European entities. Based on the experience acquired, certain mechanisms have been enlarged, improved or adapted;
• on the other, to reflect the new 1999 guidelines that Belgium supported and to which it fully subscribes.

As was the case with the 1998 plan, the Belgian 1999 employment action plan is the result of a broad consultation between the federal state, the regions and the communities on the one hand, and between the various governments and their social partners on the other.

1. Belgium's macro-economic policy in the European context

Whether it is implemented in Europe or in Belgium, macroeconomic policy aims to create and to maintain a stable macroeconomic environment, which is a necessary condition to enable the economic players to take the most effective decisions possible.

Ever since the signing of the Maastricht Treaty, European monetary policy has been clearly focused on the introduction of the euro. Since then, real interest rates, both short- and long-term, have fallen and they are therefore at a very low level, even though the ECB does not see any risk of inflation. As a result, policies have increasingly focused on supporting growth.

Belgium's macroeconomic policy is completely integrated in this European context. Belgium is therefore taking full advantage of favourable European economic conditions: low interest rates, low inflation and a stable currency for more than 60 percent of Belgian exports.

However, Belgian's policy has gone further than merely integrating in European policy. Its public finance policy, which aims to achieve a high primary public account surplus, continues to be implemented and for the first time, in 1998, there was a balance between current revenues and expenses. In 1998, the primary surplus was 6% and the total deficit was 1.3% of GDP. Macroeconomic projections show that in two years, there will be no public deficit, and that it will not be necessary to take additional measures to achieve this. In this area, Belgian has not only done more than the EU overall, its policy mix is currently better than the average. Belgium's stability programme also provides for considerable policy stability in this area.

Similarly, with regard to what has been Belgium's traditionally weak point - the low employment rate- there have been clear improvements and even more is expected. Corporate wage costs have been limited in two ways. First, thanks to the law on the preventive protection of competitiveness, which stipulates that wage costs cannot rise more quickly than they do at Belgium’s three main trading partners. Secondly, thanks to the authorities’ long-term policy aimed at reducing employers’ Social Security contributions to the average of the same neighbour countries. The other measures taken within the framework of the employment policy in areas such as the redistribution of work, flexibility in labour organisation and the creation of new jobs have also yielded very good results. As a result, more people were able to participate in the labour process and the unemployment rate has been reduced.

The positive economic picture and the lowering of the unemployment rate are elements that influence each other, with the result that they constitute a "virtuous" circle. This was quite clear in 1998, when consumer confidence continued to be sustained by the creation of jobs and vice versa.

The reduction of the deficit and the levels of real interest rates made it possible to reduce interest charges on the public debt (reduction estimated at 0.3 to 0.4% a year) and to gradually reduce the share of the debt. In order to continue this policy it will be necessary to continue to monitor the balance of public accounts and to see to it that

economic growth is sufficiently strong to generate extra funding. An increase in the supply and demand of labour is a necessary condition for the standard of living and level of employment to continue to rise in a sustainable fashion.

Growth prospects for Europe and Belgium are positive. After two years (1997-1998) of growth of roughly 3% per year, this year is witnessing a temporary weakening (with growth of roughly 2%), although employment is not falling. After the slowdown, both private economic forecasters and national and international public analysts once again expect better growth figures for the year 2000. Against this macroeconomic backdrop it is reasonable to expect a structural and economic improvement of the Belgium labour market.

2. Changes in the job market¹

2.1 The employment rate is rising

Total employment rose by 67,000 units during the last two years and by 110,000 units during the last four years (+18,000 men and +92,000 women).

The overall employment rate rose 54.7% in 1990 to 56.6% in 1986, 57.3% in 1987, and is estimated at 57.5% in 1998². This development is the result of a sharp rise (roughly 6%) of the employment rate among women, which has more than offset the fall of 1% among men. The difference between the employment rates of men and women thus fell from 27 to 20.5 points.

For the last few decades, the Belgian employment rate has been lower than the European average. However, the gap fell significantly during the last two years and has never been as small as it is now. In 1990 it was still 7.9 points. It was only 3.2 points in 1997. The growth of the employment rate between 1990 and 1997 was stronger than the European average and that of our main trading partners, with the exception of the Netherlands.

The gap that remains is only due to the relatively low employment rate, on the one hand, among young people, which is positively explained by a school enrolment rate that is among the highest, and, on the other hand, for older members of society, which is mainly due to early retirement.

As in most other European countries this change was primarily due to part-time work. The proportion of people working part-time in total employment rose sharply, exceeding 10.9% in 1990, 14.7% in 1997 and 15.7% in 1998. However, these figures are still slightly below the European average (16.9% in 1997). This is primarily due to the low rate of part-time work among men (3.3% in Belgium, compared to 5.8% in Europe).

1. Unless otherwise stated, the figures cited are taken from the "Employment in Europe-1998" report published by the European Commission in October 1998. The change in Belgium is compared to the European average and to the change in the three neighbouring countries that are our main trading partners and with which our labour market has the most in common.
2. According to the administrative statistics of the National Social Security Office, salaried employment rose by 53,084 units between the 2nd quarter of 1997 and the 2nd quarter of 1998. This seems to indicate that the growth of employment as measured by the survey on labour forces for Eurostat was somewhat overvalued between 1996 and 1997 and undervalued between 1997 and 1998.

2.2 Employment is linked to economic dynamism

From 1990 to 1996 Belgium’s job growth exceeded the European average (annual average of 0.7% in Belgium, compared to -0.3% in Europe), despite economic growth and a rate of investment that were slightly below the EUs average (average annual GDP growth of 1.2% in Belgium, compared to 1.5% in Europe). This trend continued between 1996 and 1997, with stronger economic growth of 2.7% (compared to 2.6% on average in Europe) and job creation of 1.2% (compared to the European average of 0.6%). These positive results for job and activity rates can therefore also be attributed to the employment policy, as growth was more intensive in jobs.

2.3 An unemployment rate that is too high, but falling

The unemployment rate peaked at 10% in 1994 and has since fallen slowly but surely each year. The standardised unemployment rate is still too high, but it is lower than the European average (9.2% compared to 10.6% in 1997). This trend continued in 1998 and is continuing in 1999. According to the most recent government data available, the number of fully unemployed job seekers who receive unemployment benefits fell by 36,510 units between April 1998 and April 1999 (8.5%). Unemployment compensation expenses are at similar levels to those seen in neighbouring countries (2.06% of GDP. Source: OECD), while providing effective social protection that is reflected by one of the highest coverage rates for job seekers (80.2%) and one of the lowest poverty rates (6%).

There are several aspects to Belgium's unemployment situation that set it apart from other European countries:

• a higher share of the long-term unemployed among the unemployed, although this difference has fallen significantly;
• a larger gap between female and male unemployment rates, particularly for those with the lowest levels of education. However, this gap is gradually being reduced;
• the appearance of labour shortages in certain activity sectors in Flanders;
• although it has fallen, youth unemployment levels are still very high in the Walloon region;
• a particularly high rate of unqualified unemployment in the Brussels region.

However, several of the above factors must be understood in terms of the specific nature of the Belgian unemployment insurance system, which, in principle, provides benefits for an unlimited period of time.

3. Employment policy in Belgium

The employment policy that has been implemented in Belgium over the past several years is based on the recommendations of the European Union's 1993 White Paper entitled "Growth, Competitiveness and Employment". It is based on two pillars implemented by the authorities at all levels: - the first consists of reinforcing the economic foundation and supporting the growth that constitutes the base that is crucial to maintaining and developing employment; - the second consists of implementing accompanying measures in order to increase job growth intensity.

In the area of job promotion, there is no miracle solution to drastically reduce unemployment in the short-term. The number of job guidelines adopted by the European Union confirms this reality. The policy that is being implemented therefore consists of developing any ideas capable of maintaining and creating jobs and getting more people to participate in the job market.

Job promotion involves the five issues mentioned at the Essen Summit: 1. The reduction of the cost of labour via wage moderation and the reduction of employer social security contributions; 2. The redistribution of work over a large number of people and measures promoting greater flexibility in labour organisation; 3. Measures encouraging the insertion of target groups that encounter specific difficulties on the job market; 4. The development of sources of employment that meet society's needs; 5. Worker training.

Within the framework of the employment policy Belgium has always attached considerable importance to three factors:

Continuity

A coherent and constant approach is needed in order to engender a climate of security for employers and workers and to ensure sustainable results.

Consultation with the social partners

The creation of conditions favourable to the creation of jobs is not a mission reserved solely to the authorities; it also (and above all) comes under the responsibility of the social representatives. Belgium has a long tradition of social consultation and is committed to this consultation. Social consensus can provide important value added to the employment policy.

Complementarity with regional and community policies

In Belgium, employment competence is shared between the federal authority on the one hand and regional and community authorities on the other. Social Security, labour law and most tax issues are federal matters. Teaching, training, placement and guidance of job seekers and get-back-to-work programmes for the unemployed are regional or community matters. In the area of employment, the role of the federal state consists primarily of contributing to the creation of an environment favourable to the maximum development of employment and to ensuring solidarity and equality of rights and opportunities between workers. In this same area, the role of the federated states consists primarily of ensuring the best conditions of access and participation to the job market and to developing reintegration initiatives that are adapted to their specific situation while ensuring equal opportunities between workers. It is very important that the policies carried out at the different levels of authority are complementary in order to maximise the effects of these policies on employment.

Finally, Belgium has always attached considerable importance and participated actively in the development of a Social Europe. This active contribution once again took concrete form during the adoption of the Amsterdam Treaty and during the Luxembourg Job Summit. Since then, Belgium's employment policy has been reinforced and refocused based on European guidelines for employment and factors specific to Belgium's situation.

II. Report on the implementation of the employment guidelines

Section 1: Improving professional integration capacity

Guideline 1: Combating youth unemployment

I. ASSESSMENT

1. Situation

Youth unemployment is improving in Belgium: youth unemployment, calculated in relation to the total population between 15 and 24 years old (6.8% in 1987 and 6.1% in 1998) is still well below the European average (9.8% in 1997). There was a clear improvement for young women from 1997 to 1998 (fall from 7.5% to 6.3%). Similarly, the national figures reflect a continuous downward trend of the number of unemployed below the age of 25 who receive unemployment benefits (from 102,470 in 1994 and 83,612 in 1997 to 77,173 in 1998). However, far too many young people still have not found work five months after having registered as a job seeker.

2. Primary objective

One-half of unemployed young people find a job within six months. For young people with integration problems, the reinforcement and refinement of the strategy of guidance, training and professional experience should facilitate the integration into active life.

3. Initiatives taken and timetable

The guidance programme for the young unemployed -for which the federal authority has concluded a co-operation agreement with the communities and the regions- constitutes the key element of the multi-year policy to combat youth unemployment. This programme, which was launched on 1 January 1999, requires each unemployed young person (below the age of 25) who has been unemployed for five months and does not have a high school diploma or its equivalent to take intensive training aimed at improving his or her employability. Certain communities or regions include the guidance programme for unemployed youth in guidance actions aimed at a broader target group such as the German-speaking community’s SAVE programme. In Flanders, this approach is part of the new management contract with the VDAB and considerable additional resources have been released in order to support a larger number of job seekers. In addition to the guidance programme, during the last 12 months, both the federal authority and the communities and regions have taken (or reinforced) measures favouring the integration of young job seekers.

4. Actions and participants

The young people benefiting from the guidance program are convened by the regional placement services for a screening and a diagnosis, after which an individual action plan is prepared. During the implementation of this action plan several formulas may be used ( socio-professional guidance actions such as practising job interviews and learning to search for a job more actively, vocational training programmes and professional experience, etc.). For those with the most limited qualifications, intensive training is offered with the perspective of job (such as the "persoonsgerichte vorming" in Flanders). Special measures have been implemented at the various political levels as a complement or as a possible component of the guidance programme for unemployed youth. The communities and regions accord considerable importance to intensifying training efforts. In addition to the increase in the participation of the target group in existing training programmes, initiatives have been developed to encourage alternate-based training and part-time teaching, in order to improve consistency between academic training and vocational training, offer more training for professions suffering from a shortage of labour or to encourage work site training. The supply of training for professions characterised by a shortage of labour rose to 20,000 in Flanders and the share of work site training courses quickly went from 1 training course out of 7 to 1 training course out of 4. As regards professional experience, all regions, via professional transition programmes, offer unemployed youth with limited qualifications the chance to acquire professional experience in the public not-for-profit sector after nine months of unemployment. In order to offer greater job possibilities to this target group the already significant supply of possible job measures has been enlarged and improved. In particular, the application conditions of the federal "advantage to hiring" programme for unemployed youth have been made more flexible.

5. Indicators and results

I - Indicator of policy effectiveness, 10/1997 – 9/1998 average

These indicators were calculated based on the methodology communicated by the commissions services at the beginning of May 1999.

II - Measurement of the effort made, 10/1997 – 9/1998 average

(1) one-person may benefit from several measures. As a result, the total does not correspond to the sum of the components. It is important to remember that the above-mentioned guidance programme for young people only took effect on 1 January 1999.

II. New initiatives in light of the 1999 guidelines

The guidance program covers the years 1999-2000. An assessment will be made at the beginning of 2000. This assessment will constitute the basis of negotiations concerning the 2001-2002 unemployed youth guidance programme. For its part, the Walloon government has decided to standardise access conditions to the various measures implemented within the framework of its unemployment reduction programme. Since 7 May 1999, the period of time during which unemployment benefits or «minimex» [minimum subsistence payment] are paid, which condition access to job growth promotion measures was reduced from 6 or 12 months to one day. In addition, after having identified a population of roughly 3,000 people with only a primary school diploma and without professional experience in the Walloon region, the Walloon government, within the framework of the unemployed youth guidance program, introduced an intensive training programme (1,000 hours of training, including a 400-hour in- company training course) offering all participants the prospect of a job. A co-operation draft agreement concerning the organisation of alternate-based training was submitted to the government of the French community and to the French Community Committee. The goal, via this co-operation agreement, is to improve alternate-based training for French speakers from the Brussels-Capital region, as well as to provide proof of the training provided.

Guideline 2: Combating long-term unemployment

I. ASSESSMENT

1. Situation

With regard to long-term unemployment, we should remember that under the Belgian unemployment insurance system there is not, in principle, any time limit regarding the right to receive benefits. In Belgium, long-term unemployment (more than one year) in relation to the active population exceeds the European average. However, during the last few years, the gap has been reduced. The number of long-term unemployed aged 25 and over continues to fall, although long-term unemployment (and in particular, very long-term unemployment) is still too high.

2. PRIMARY OBJECTIVE

Each year 195,000 people on average begin receiving unemployment benefits. Roughly 115,000 find a job within the year. In order to arrive - in a four-year period- at an entry figure of zero long term unemployment a new beginning must be offered to 80,000 people.

3. Initiatives taken and timetable

In order to offer a new start to unemployed people aged 25 and over before they reach 12 months of unemployment, an overall strategy has been agreed to for the period 1999-2000, in consultation with the various levels of authority. This strategy is based on screening, guiding and advising the unemployed, as a complement or as an element of the possibilities of guidance, training or reintegration on the job market.

4. Actions and participants involved

Guidance is also provided to people aged 25 and over, as well as for young people. This guidance begins with a screening and a diagnosis by the regional placement services. This serves as a beginning to the establishment and execution of an individual action plan. All the authorities concerned have committed themselves to a co-operation agreement that, for the period 1999-2000 includes guidance for unemployed people aged 25-45 who have been unemployed for 12 months and do not hold a high school diploma or its equivalent. In Flanders, this approach is included in the management contract with the V.D.A.B., and, in framework of a multi-your programme, additional resources have already been released for 1999 in order to reach a larger target group. In the other regions or communities, guidance actions for the long-term unemployed also target a larger target group, such as, for example, actions aimed at unemployed people over the age of 45 implemented by Bruxelles Formation [Brussels Training] or in the German speaking community.

As a complement to or as a part of this guidance, job market advice is available through specific measures developed at various levels of authority. As regards training, the regions and the communities have launched initiatives to encourage the participation of the target group in training programmes. One such example is the partnership agreement on improvement courses. This agreement was concluded between the French Community and the French Community Commission in order to broaden and adapt the supply of training. In addition, special attention is being given to the least qualified: the communities and the regions have organised more intensive guidance and training for this group, preferably at the work site and with the prospect of a job. In addition to training, the acquisition of professional experience also plays a key role in the process of re-integrating the long-term unemployed. In the three regions, people who have been unemployed for more than 24 months can acquire professional experience in the public not-for-profit sector via professional transition programmes. In addition, reintegration opportunities are offered to the long-term unemployed via a broad range of federal and regional measures such as the advantage to hiring programme, «Smet» jobs, local employment agencies, hiring bonuses and other existing unemployment reduction programmes.

5. Indicators and results

I - Indicator of political effectiveness, 4/1997 – 3/1998 average

These indicators were calculated based on the methodology communicated by the Commission’s services at the beginning of May 1999.

II - Measurement of the effort made, 4/1997 – 3/1998 average

(1) A person may benefit from several measures. As a result, the total does not correspond to the sum of the components.

II. NEW INITIATIVES IN LIGHT OF THE 1999 GUIDELINES

Beginning in the year 2000, an assessment of the efforts made concerning Guideline 2 will be carried out in order to prepare a plan for the coming years, so as to reach this guideline’s objectives by the end of the 2001-2002 period. Beginning on 1 April 1999, access to «Smet» jobs and to local employment agencies was reduced to 2 years of unemployment for unemployed people below the age of 45 and to 6 months for unemployed people over the age of 45. The Walloon government decided to standardise the conditions of access to the various unemployment reduction programmes. (see Guideline No. 1)

Guideline 3: Going from passive measures to active measures

I. ASSESSMENT

1. Main problem

In relation to the active population, the long-term (more than one year) unemployment rate is still slightly higher than the European average. This particularity must be analysed after taking account of the specific nature of the Belgian unemployment insurance system, which, in principle, pays benefits for an unlimited period of time. However, this rate is falling, and the gap with the European Community is decreasing.

Long-term unemployment rate

This gradual decrease continued in 1998 (it was 4.4% below the 1997 figure), according to government statistics. The degree of qualification of most job seekers is relatively low: 53% of the unemployed (56% for men and 50% for women) do not have a high school diploma (or its equivalent), while the European average is 46.5%.

2. Objective

To transform passive expenses into active expenses while broadening and reinforcing measures for activating unemployment benefits and training for job seekers.

3. Initiatives taken

In Belgium, unemployment compensation is the jurisdiction of the federal authorities. The placement and training of job seekers is under the jurisdiction of the regional and community authorities. The social partners also carry out training and integration initiatives, including in activity sectors and, in particular, in favour of groups at risk.

There has been an intensification of training efforts made in the various regions, although these have had different focuses. Flanders is investing in the development of a professional experience policy, which, on an annual basis, offers integration to more than 12,000 job seekers («wep-plus»: 6,000, «wep-privé»: 2,000 and individual vocational in-company training: 4,000). In addition, the supply of training has been increased. Flanders has focused on investing in training for professions where there is a shortage of labour and the concept of work site training (which has been tested for a number of years) continues to develop (from 1 out of 7 in 1994 to 1 out of 4 in 1999). In the Walloon region, there has also been a rise of 10% in the number of training courses provided to job seekers. This increase is primarily explained by the implementation of new training measures focused on new information and communications technologies (NTIC), as well as by training agreements at SMEs and the Integration Training Programme.

In the Brussels region, the professional transition programme (PTP) is being implemented through local missions and is a tool for co-ordinating all socio-professional integration not-for-profit associations present in the field. Bruxelles Formation and its partners are working to make this programme a training component in order to improve the chances of gaining access to employment by the public in question at the end of the PTP contract. In addition, there has been a gradual adaptation of training course supply by Bruxelles Formation to the characteristics of Brussels job seekers: increase in the number of trainees, the proportion of job seekers among the trainees (Bruxelles Formation and its partners work with 7.5% of unemployed job seekers counted by ORBEM), and the participation of the least qualified in the training programme. The proportion of job seekers who have benefited from training rose 5% between 1997 and 1998.

The chance to return to one’s studies by the unemployed while continuing to receive unemployment benefits has been broadened, in particular for studies that offer preparation for professions in which there is a shortage of labour.

As regards the activation of unemployment benefits, Belgium has a long and significant experience in this area. As a result, it would like to present this activation as an example of good practice. Many measures exist in this area.

Two recent measures are being presented by the federal authorities as good practices.

The local employment agencies are responding to the demand for services, mainly on the part of individuals (household cleaning, minor gardening, etc.), as well as non-commercial and community associations, which is not offered by the regular sector, and offers reintegration to the long-term unemployed. The jobs are financed and the services are solvent as a result of the activation of unemployment benefits or «minimex» and through taxation (tax deductions).

The activation of unemployment benefits at companies ("SMET jobs") is creating additional jobs in services,

primarily in the private not-for-profit sector, and is also targeting the long-term unemployed. These positions improve the quality of service to clients, improve the working conditions of personnel or are related to the protection of the company's environment. These jobs are financed via the activation of unemployment benefits and by the exemption from social security taxes normally due by the employer. This measure has been applied since March 1998. In March 1999, the number of additional jobs recognised was 10,111.

«SMET» jobs- Workers employed at 3/99

A recent third activation measure was the object of a co-operation agreement between the federal state and the regions and communities. The professional transition programmes (PTPs) are creating additional jobs while meeting the collective needs of society in socio-cultural, sports and environmental sectors, and offer reintegration to the long- term unemployed. These jobs are financed by the activation of unemployment benefits, the reduction of social security taxes due by the employer and by financial contributions from the regions. This measure was first implemented in March 1998.

«P.T.P. – Workers employed at 3/99

These three recent activation measures have already offered integration opportunities to 50,000 people, in addition to the 80,000 people already occupied in the various federal and regional programmes for employment. This figure will almost certainly continue to rise because these measures have still not reached cruising speed. In addition, we should also mention here that since the end of April 1999, activation has also been used in the social economy. Social workshops (in Flanders) and integration enterprises (in the Walloon region and in Brussels) are able to activate unemployment benefits when hiring workers who have already been seeking a job for more than five years (see also Guideline No. 12).

4. Indicators

1998 average (e)

(e) estimate

II. NEW INITIATIVES IN LIGHT OF THE 1999 GUIDELINES

Given their success, the activation measures are being broadened and reinforced in order to: - meet the increased demand for services; - improve the chances of reintegration for job seekers. Particular attention is being given to older job seekers. For these people, the required unemployment period for access to the activation measures has been shortened. These new provisions took effect on 1 April 1999. The beneficiaries of the minimum subsistence wage have also had access to all of these activation measures since 1999. The status of job seekers who work at local employment agencies will be improved: in the near future they will be hired under a labour contract with these agencies. In addition, attention will be paid to ensure that the activation measures cannot compete with regular employment via a strict selection of eligible jobs.

A draft agreement was concluded on 11 December 1998 between the federal state and the Flemish region, in order to gradually install a single local employment centre (i.e. at the community or "Tewerkstellingsconvenant" level). At the beginning of March 1998, all of the Flemish districts were invited to sign a standard agreement for this purpose. This service, which associates federal, regional and community officials, will be authorised to offer (in a decentralised manner) a broad range of information and a line of services to job seekers, workers and employers in the area of activation, training, employment and reintegration measures. In the Walloon region, an employment centre system has also been created in the form of "job houses" which, by combining the various operators acting at the local level will also be able to offer extensive information and a broad range of services to job seekers. In the Brussels region, similar centralisation has already existed in the field for the past 10 years or so. The local missions (of which there are 9) and their Flemish equivalent (the OOTB), provide information to the public and to operators and co-ordinate all socio-professional integration actions (guidance, training, finding work, etc.) in the field, whether they are public (community or social assistance centres) or private.

The Flemish region has decided to allocate an additional BEF 300 million in 1999 to training for those professions where thereisa shortage oflabour. Another priority is the professional experience acquisition policy. In 1999, priority will be given to opening the private sector to both the long-term unemployed («wep-privé», professional experience in the maintenance of regional roads) and for young people who are required to attend school on a part-time basis (new programme). The Walloon region has implemented an "insertion process" system that networks and co-ordinates -within the framework of the sub-regional committees- more than five hundred entities and training and integration centres. Training courses offered will increase by 16% in 1999. In order to optimise coherency between job and training policies, competence for employment issues has been transferred from the Walloon region to the German-speaking community (BEF 401 million). In the Brussels region, the reform of individual vocational training is underway and is aimed at encouraging companies to make greater use of this formula. Finally, the Brussels region has also developed the social clauses in public contracts. Concretely, this is reflected in an obligation to hire a certain number of job seekers for maintenance labour and services contracts concluded by the regional authorities. The originality of this system lies in the fact that this is not simply a training social clause. Rather, it puts people to work, enabling these job seekers to acquire concrete professional experience by improving their competitiveness on the job market.

Guideline 4: Reinforcing professional integration capacity and maintaining the capacity to work

I. ASSESSMENT

1. Main problem

1.1 Unemployment compensation system

Reintegration incentives are primarily related to the benefit payment period, the amount of benefits and to the monitoring of the availability for work of the unemployed. The benefit payment period is unlimited in Belgium. In addition, after a waiting period of nine months on average, unemployment benefits are paid to young job seekers leaving school, until they find a job. Given the above-mentioned specific characteristics, the amount of the benefits is not particularly high in Belgium and is adjusted based on the family’s situation.

The monitoring of availability for work is based on the exchange of information between the regional entities that are competent for placement and training and the federal entity that is competent for granting insurance benefits. This compensation system is effective in the area of social protection and is making a significant contribution to reducing the poverty rate, which is roughly 6% in Belgium (i.e. one of the lowest rates among the industrialised countries).

With regard to reintegration incentives, the moderate amount of benefits is not, in principle, an obstacle. The benefit payment period assumes that there is a close link between the payment of benefits and the availability to work of the unemployed. We should also note that penalties, in particular for not being available to work, are relatively severe (6 to 12 months of suspension of the right to receive benefits).

1.2 Tax system

After the deduction of the worker’s social security and fiscal charges, the net salary of workers receiving the lowest salaries is sometimes close to those receiving the most generous social benefits. The social partners are demanding that the net salary of these workers be increased via taxation and that it be stipulated in the inter-professional agreement.

1.3 Older workers

The employment rate among workers aged 50 and over is relatively low in Belgium (18.3%, compared to 26.4% on average in Europe). The Belgian authorities have already taken the following measures in order to keep older workers at work:

• the full-time early retirement age was increased to a minimum of 58 years old, without exception, in particular for companies experiencing major problems or undergoing restructuring;
• the additional unemployment benefits paid to unemployed people aged 50 and over was also reduced for certain unemployed people under the age of 58;
• part-time working formulas are encouraged for older workers:
• early retirement while working half a normal week as of the age of 55, via a collective labour agreement, and as of 58 years old, with the employer’s authorisation;
• part-time career interruption (1/2 time, 1/3 time, 1/4 time or 1/5 time) as of the age of 50 years old, with a doubling of the amount of the interruption benefit amount, which supplements the salary;
• the legal ban on setting an age limit during selection and recruitment.

2. Objective

Given the effect of the best economic situation and the employment policy resulting from the first three guidelines, the supply of jobs, training, and activation and reintegration measures have increased significantly. In view of this

reality, the objective is to encourage, stimulate and help the unemployed to look for and to find these new job and reintegration possibilities and to reinforce their professional integration capacity. The objective is also to keep older workers working and to facilitate the reintegration of unemployed people who are older.

II. NEW INITIATIVES IN LIGHT OF THE 1999 GUIDELINES

1. Unemployment compensation system

The Belgian authorities are committed to maintaining the system’s specific characteristics, including the payment of benefits during an unlimited period of time. In order to stimulate the reintegration of the unemployed in such a system, the Minister of Employment and Labour submitted to the social partners a proposal for a new procedure for monitoring the availability to work of the unemployed. The social partners response to this proposal was mixed. The government has called on the social partners to continue to examine the problem of the availability to work of the unemployed with the National Labour Council or another entity in order to arrive at a consensus on a procedure that would offer better control of this availability.

In the 1999-2000 inter-professional agreement the social partners agreed to carry out a short-term study at the National Labour Council (CNT) and the Central Economic Council (CCE) on the unemployment traps that are said to impede the participation of the unemployed in the labour process. This study will focus on the Employment Council’s report of 17 December 1998 on employment traps. It is expected to be finished by July 1999 at the latest and should lead to the formulation of proposals to be sent to political decision-makers. A detailed report on the problem of unemployment traps was also recently drafted within the framework of the Flemish VIONA research programme. A VDAB working group is currently preparing proposals aimed at resolving the problems of mobility and childcare, two factors that often constitute an obstacle to training. These proposals will be submitted to the Flemish Economic and Social Council

2. Tax system

The above-mentioned study by the C.N.T. and the C.C.E. will also focus on increasing the net revenue of unskilled workers. In addition, the government has decided to allocate a budget of BEF 1 billion in order to increase the net revenue of workers receiving the guaranteed minimum wage (see L.D. 14).

3. Older workers

In the 1999-2000 inter-professional agreement the social partners agreed to organise an in-depth discussion at the National Labour Council on the problem of end of career. Within the framework of this examination, the federal government is calling on the partners to give special attention to the tools used to increase the low activity rates of older workers, in particular by making use of alternative measures such as outplacement, transfer, training or collective labour sharing systems, before turning to the early retirement system. The federal government is asking the Employment Council to examine the factors that cause firms to part company prematurely with their older workers or that causes older workers to leave the job market prematurely, and to propose reforms for keeping these workers at work.

Guideline 5: Promoting an approach based on the partnership improving professional integration capacity

I. ASSESSMENT

1. Situation

In addition to the efforts made by the authorities, the social partners must develop initiatives aimed at facilitating professional integration capacity, by increasing, among others, the number of training and professional experience opportunities.

2. Main objective

Encourage the social partners to take initiatives, such as, for example, including sector training agreements or developing training programmes in order to increase professional integration capacity and to resolve labour market tensions.

3. Initiatives taken and timetable

In the 1999-2000 inter-professional agreement, concluded on 8 December 1998, the federal social partners committed themselves to participating to the implementation of an employment action plan and, above all, highlighted training efforts to improve the professional integration capacity of the economically active. The social partners are assuming their responsibilities by concluding clear agreements in their areas of competence in order to ensure that this commitment takes a concrete form. Agreements have been concluded within the regions and communities, with and between the social partners to respect their commitment to the action plan, particularly in terms of training initiatives.

4. Actions and participants

The federal social partners have confirmed their commitment to devoting more resources to continuing training, with the objective of bringing Belgium to the average level of its three neighbour countries within six years. For the period 1999-2000, this means that the effort made by companies will rise from 1.2% to 1.4% of payroll (at least BEF 4 billion in 2 years). This is why the sectors are being called on to conclude training (and job) agreements geared to all categories of workers, including job seekers, with special attention to be paid to the participation of women, and maximising the return on regional and community training initiatives. The federal social partners also decided to continue in 1999 and 2000 efforts made for groups at risk (0.10% of payroll). The Flemish social partners are continuing their involvement in encouraging companies to create training programmes and to examine possible job rotation initiatives. In the Walloon region the government and the social partners agreed, in a joint declaration of 12 March 1998, to combine their efforts to offer greater reintegration prospects to unemployed youth and to the long-term unemployed. In the meantime, the efforts made have been assessed for the first time. In certain sectors, partnership agreements have been concluded to encourage, among others, like alternate-based apprenticeships and lifelong learning. In addition, in-company training, including training cheques, has been carried out with the support of the social partners. Since February 1999, the German- speaking community, through its "Community Training and Employment Pact", has had a framework within which the government and the social partners are jointly developing initiatives to improve the level of training and the professional integration capacity of labour. Framework agreements are currently being prepared or have been concluded between the French Community and the French Community Commission on alternate-based training and improvement courses, where significant emphasis is being placed on the contributions of employers.

II. NEW INITIATIVES IN LIGHT OF THE 1999 GUIDELINES

The 1999-2000 inter-professional agreement contains renewed commitments to wage moderation, continuing training and employment. This is a promising approach that will give rise in the spring 1999 to negotiations within sectors and companies. These negotiations will lead to collective labour agreements aimed at translating into concrete results the commitments made in the inter-professional agreement. An assessment will be made every year (in September). It will be possible to make corrections based on this assessment. In addition, an effort will be made to ensure that the sector agreements can be easily applied to SMEs (small- and medium-sized enterprises).

Guideline 6: Promotion of a lifelong learning approach based on the partnership

I. ASSESSMENT

The competent authorities are making significant efforts in terms of lifelong learning. For example, paid education leave offers full-time private sector salaried employees the chance to improve their skills. This federal system has been improved and reinforced by making it accessible to certain part-time workers and by providing specific application arrangements for SMEs. Over the last few years, a system has been created where the social partners in the sectors agree to set aside an employer contribution (0.10% of payroll) to training workers and job seekers. The regional placement services offer a wide range of training courses that employees can take either at their own initiative or at the request of their employer. In addition, the regions and communities offer a wide range of training options for workers, including within the framework of improvement courses.

II. NEW INITIATIVES IN LIGHT OF THE 1999 GUIDELINES

1. Concrete objectives and timetable

Lifelong learning must be described in consultation with the Committee for Employment and the labour market, so as to ensure that it is possible to set an objective that is adapted to the national conditions for the number of people able to use the options offered. As a result, specific attention must be paid to information and communications technologies. In addition, as regards the problem of lifelong learning, improving accessibility by older workers and encouraging the participation of women are two important themes.

In terms of concrete initiatives, it is important to remember the commitment made by the federal social partners to increase the resources allocated to lifelong learning to the average level of the three neighbour countries within a period of 6 years (see Guideline 5). Given the distribution of competences, the primary aspect of lifelong training comes under the scope of the initiatives developed by the communities and regions. In Flanders, the number of training for workers organised by the VDAB continues to grow. The "leverage credit" developed in 1998 by the Flemish government for innovative training supports company or sector training projects to supplement product or process innovation. The Flemish reduction of charges for "Vlaminov" jobs was renamed "Vlamivorm". This reduction must be fully invested by companies in supplementary training for their workers. As a result of work carried out by sector training consultants, the different training incentives will be more effectively communicated to Flemish economic players and complementary training projects will be developed. In the Walloon region, a new training structure has been set up via the creation of areas of development. Eleven technical and training knowledge dissemination centres have already been created. The regional authority and FOREM, the social partners and the universities and research centres have contributed to this programme. In addition, different measures have been developed to effectively meet the demand for training in new communications and information technologies. Short duration training periods for SME workers and for job seekers have been operational since October 1998 and the number of training opportunities is expected to double in 1999. Finally, we should mention the training cheque. This tool encourages lifelong learning by the self employed and SME salaried employees (see also Guideline 18).

2. Implementation measures

In the spring of 1999 the sectors and/or companies will negotiate sector or company agreements aimed at materialising the commitment made by the federal social partners. These agreements must pay specific attention to older workers.

3. Players involved

The following are involved: the social partners (within sectors or within companies), the federal authority, the regions and communities, training centres for small firms and traders, and various other entities.

Guidelines 7 + 8: Facilitating the transition from school to work

I. ASSESSMENT

1. Main problem

The 1997 Eurostat survey indicated that in Belgium, 11.3% of the young people (12.4% for men and 10.2% for women) left school between the ages of 15 and 24 without having obtained a high school diploma (or its equivalent). Belgium compares favourably in this area with the European average (14.5% in 1997). Given the fact that children in Belgium are required to attend school until the age of 15/16 (on a full-time basis) and until the age of 18 (on a part-time basis), as well as active measures to combat dropping out and school failure, the proportion of young people leaving the school system without obtaining a high school diploma (or its equivalent) can be further reduced.

2. Objective

The proportion of young people who leave school without having obtained a high school diploma (or its equivalent) must be reduced. In addition, the number of young people who fulfil their school obligations without having benefited from in-company training must also be reduced.

3. Initiatives taken and timetable

In Belgium, education is the exclusive competence of the communities. Within each community initiatives are created to prevent the premature departure of young people who leave school without any qualifications. In the Flemish community, a project to modularise technical and professional secondary school teaching is underway and the establishment of profession profiles is continuing. In the French community, several measures have been undertaken to reduce school failure (creation of an educational continuum, use of formative assessment, new guidance systems, etc.) and to ensure that vocational and technical training reflects socio-economic reality (definition of qualification and training profiles, etc.) more accurately. The German-speaking community is placing emphasis on improving the co-ordination of academic and vocational training. There are several important apprenticeship systems in Belgium. The «small firms and traders» apprenticeship (in which young people prepare for self employment), the salaried workers apprenticeship and fewer hours of classes. Federal regulations concerning the apprenticeship of the professions exercised by salaried workers has been made simpler and more transparent. The regions have implemented initiatives that enable a larger number of young people to participate in alternate-based training (job-training) and to acquire work experience. In order to better familiarise students with computers, programmes aimed at providing schools with computers, and adapted software programmes and continuing training for teachers have been developed by all levels of authority.

4. Actions and participants involved

With regard to the reduction of school failure and dropping out of school, the French Community’s decree on «The School’s Missions» (July 1997) was primarily aimed at promoting social integration and the continuation of studies and the mastering of skills, as well as the definition of an academic and professional «life project» for each young person. The decree on «positive discrimination» (June 1998) has led to the release of additional funding for certain schools. The purpose of this funding is to provide students with equal opportunity for academic success. A charter entitled «languages and cultures of origin» has been adopted to better integrate children of immigrants into the school system. As regards higher education, efforts will continue to be made to improve quality and combat failure, in particular by enabling students to spread a year’s studies over several years and to be rapidly reoriented in the event that it seems likely that they will fail in the first year. As regards the adaptation of qualifications and the practice of alternating and monitoring technological developments, we should note that in the French Community Commission has been created to define (together with the players involved in qualification and training profiles. The practice of alternating in obligatory education is becoming increasingly popular. In 1999, a professional integration agreement was adopted; an experiment involving certification in alternating is underway. The adaptation of the supply of teaching to the dynamic of economic developments is also taking the form of the development of technological innovation areas at schools.

In Flanders, the modularization project is being prepared in 5 activity sectors and a test will be carried out at certain schools as of September 2000. In conjunction with the social partners, efforts are still being made to establish professional profiles in order to ensure that teaching and training better match job market needs. The new federal framework has broadened the scope of application of salaried worker apprenticeships and has improved applicability, thereby offering the social partners the chance to step up the use of the system. The 1998- 1999 school year is a transition year. The new system will begin to be applied on a widespread basis as of 1 September 1999. In addition, an entity has been created to support the system co-financed by the European Social Fund. The Walloon region has acted on its commitment to developing different types of in-company training in order to obtain 20,000 training courses in 1999 and 27,000 in the year 2001. This training is primarily geared to young people. Many measures have been taken by the region to stimulate alternate-based training and in order to conclude 3,000 training contracts between now and the end of the year 2000.

5. Indicators and results

In 1997, the proportion of young people who left school without having obtained a high school diploma (or its equivalent) was 11.3% (12.4%among men and 10.2% among women). Belgium’s situation in this area is better than the European average (14.5%). The OECD estimates that the percentage of the population that is aged between 24 and 65 and that holds a high school diploma or its equivalent will rise from 53% in 1995 to 70% in 2015.

II. NEW INITIATIVES IN LIGHT OF THE 1999 GUIDELINES

A new work experience programme in the private sector, targeted at young people who are required to attend school on a part-time basis, will be operational in Flanders as of September 1999. At the end of this work experience period (one year at most) young people will be put to work under a labour contract or a salaried worker apprentice contract. At the same time, the Flemish social partners have committed themselves to developing salaried worker apprenticeship in those sectors where apprenticeships still do not exist.

Guideline 9: Promoting a labour market open to everyone

1. ASSESSMENT

(the former Guideline 19 only addressed the professional integration of the handicapped).

1. Main problem

The handicapped still experience special problems in integrating the labour market.

2. Objective

Develop and improve supports to promote the integration of the handicapped in the working world.

3. Initiatives taken and timetable

In addition to the numerous measures already existing that are aimed at promoting the integration of the handicapped on the labour market (training centres for the disabled, intervention in wage costs, professional adaptation contracts, integration bonuses, position adaptation, etc) different initiatives have been taken by both the federal authorities and the regions and communities in order to improve the professional integration of the handicapped.

4. Actions and participants involved

At the federal level, a decision has been taken to contribute to the application of the minimum wage to the sector of training centres for the disabled on 1 January 1999 via additional reductions of social security contributions of BEF 1.2 billion. Handicapped people’s access to federal employment measures has been facilitated. In the Walloon region, regulations have been adopted recently that are aimed at reinforcing in-company training and the employment of the handicapped. In Flanders, the access of the handicapped to training, experience and job- finding options has been improved, in particular by broadening integration options, introducing an integration bonus system, improving awareness of employers via «job finders» and offering employer assistance via «job coaches». In the Brussels region, the decree on the social and professional integration of the handicapped was definitively approved by the College of the French Community Commission.

5. Indicators

The Ministry of Employment and Labour carries out an annual assessment, based on statistics furnished by the ONSS. There is a regulatory commitment to increase the volume of employment in the sector by 430 units in relation to the year 1996 and to maintain the jobs of the most handicapped people.

II. NEW INITIATIVES IN LIGHT OF THE 1999 GUIDELINES

1. Objective

To develop a policy to promote the integration of the handicapped, ethnic minorities and other groups and people who may be discriminated against in the job market.

2. Implementation measures and participants

The second part of the social partners’ 1999-2000 inter-professional agreement addresses subjects related to labour conditions that should contribute to social cohesion.. The inter-professional social partners will carry out a study within the CNT regarding the possible activation of revenue replacement benefits granted to the handicapped and the possible standardisation and the coherence of regulations and procedures existing at the federal and community levels concerning the socio-professional integration of the handicapped. Collective labour agreement No. 38 stipulates that an employer must treat all candidates in the same manner during the recruitment and selection process. Since November 1998 this provision has been obligatory. Since 1993, Belgium has had a centre whose purpose is to achieve equal opportunity and combat racism. In 1999, this centre will have a special budget of BEF 10 million in order to carry out an information campaign aimed at the general public, as well as to organise seminars aimed at corporate executives, regarding the ban on discrimination in hiring. This centre will also be asked to formulate additional proposals to reduce hiring discrimination and to reinforce the job market integration of ethnic minorities. In the Brussels-Capital region a campaign against discrimination in hiring has been launched as part of a territorial employment pact. This campaign, which is linked with that of the federal authorities, is primarily aimed at maximising the aptitudes and skills of job seekers in the Brussels region, regardless of their origin, while placing particular emphasis on young people. A BEF 5 million budget has been allocated to this campaign. The job market and qualifications observatory is currently preparing a report on discrimination in hiring. The commitment on the part of the government and the Flemish social partners to promoting jobs for immigrants is reflected each year in a concrete action plan: in 1999, 75 companies and public institutions will implement actions aimed at helping migrants. The government and the Flemish social partners intend to conclude similar action plans in order to promote employment among the handicapped. The Flemish government has set aside additional budget funding (BEF 70 million) to broaden and reinforce measures to improve the professional integration of the handicapped. Through the PRIME programme and the Subsidised Contractual Agents the Walloon region subsidises adapted work enterprises, day care centres and occupational workshops, as well as re-adaptation and revalidation centres. Regulatory provisions have been adopted by the Walloon region in order to reinforce in-company training and the employment of the handicapped (hiring quota in public services). Finally, the socio-professional integration system introduced in the Brussels-Capital region offers the weakest job seekers an entire range of personalised actions that should enable them to participate in the job market.

Suppliers of training in Brussels are making a significant effort to adapt to this region’s population: the percentage of non-ECC trainees rose from 14% to 26% of the total number of trainees between 1990 and 1997.

Axis II: Developing the entrepreneurial spirit

Outline 10: Substantial reduction of administrative expenses of entreprises

I ASSESSMENT

1. ISSUES INVOLVED

When looking at the evolution of the amount of new companies and the relatively high amount of bankruptcies, it is obvious that efforts will have to be made in two ways: one in stimulating starters and one in improving the preparations of starters. For instance, administrative expenses weigh more heavily on small than on large businesses. Small businesses do not have sufficient specialised staff nor do they have sufficient financial means to resort to experts.

2. MAIN OBJECTIVE

As too many companies stop their activities during their first years of existence and in the aim of preserving employment (both self-employed and salaried) it is necessary to modernise the instruments for the management of SMEs.

3. INITIATIVES AND TIME SCHEDULE

The framework-act of February 10 1998 for the promotion of self-employed work contains a number of specific measures making it possible to better prepare starting entrepreneurs and making access to the profession easier. At the same time guiding measures have been taken to improve the access to capital markets and to reduce the (social)- administrative formalities. In the Walloon Region, the "Conseils aux entreprises/ Advice bodies for businesses" have been given the task of informing small and medium businesses as far as administrative steps are concerned. The Brussels Region has opened a single information counter (ECOBRU) for businesses. In the spring of 1999 a virtual counter has been set up in Flanders for administrative formalities in which companies and the VIZO can exchange information. Since the spring of 1999 companies can also consult an Internet-counter regarding spatial planning and the environment.

4. ACTIONS AND ACTORS

To guarantee that people who start up a business are better prepared, the demands as far as basic knowledge of business management are concerned have been broadened. The demands as far as professional experience is concerned are put up-to-date every 7 years to adapt them to the evolution of new technologies. People who do not have the required experience or diploma can start a self-employed activity after a traineeship period, this is the "trainee-self-employed"system. Unemployed people are still being encouraged to start working as self-employed (see also outline 11). A new guarantee mechanism makes it possible for small businesses to finance their investment projects (up till 5 million BEF) with a minimum of personal guarantees, which makes their solvency position a lot better when they are starting their activities.

As far as the simplification of administrative formalities is concerned, the social identity card makes it possible to identify all social ensured people in one and the same way. At a later stage a multifunctional registration can be used, centralising all the necessary data for the collection of social contributions. The office for administrative simplification, covering several departments, will be operational shortly. In order to promote employment in small businesses a fiscal exemption has been introduced for the creation of net supplementary jobs in companies with less than 11 salaried employees. The department " Conseils aux entreprises / Advice bodies for businesses" helps Walloon SMEs to complete their files regarding regional grants and tells the company managers which are the various competent services they can turn to in order to obtain all necessary information regarding subjects as varied as the environment, spatial planning, job creation instruments…As far as the help given by the Walloon Region in the reduction of costs of companies when they take on extra personnel is concerned, the supplementary bonus for jobs (100 000 BF per new job) is becoming more and more of a success. In the Brussels Region, an ad hoc commission has been created to make a list of the administrative obligations for businesses in order to simplify them.

II NEW INITIATIVES SEEN IN THE LIGHT OF THE OUTLINES FOR 1999

At federal level, a project for the simplification and co-ordination of all existing texts regarding working time and the organisation of working time has been prepared and has been submitted to the social partners. Moreover, the federal government has introduced a bill to give all companies and other legal entities a single identification number; this single number should simplify the relations with the various administrative authorities considerably.

With the introduction of an impact-card for SMEs one shall not only try to avoid new financial and administrative expenses but also particular attention shall be paid to the simplicity and efficiency of the legal and regulatory frame in which companies operate. Finally, in order to make the organisation of work more flexible and to create jobs in SMEs, a systematic inquiry into all the obligations and formalities of social law will be carried out, in particular regarding work organisation and employment measures.

Outline 11: Making starting and managing a bussiness easier

I ASSESSMENT

1. ISSUES INVOLVED

A lot of self-employed have to cope with heavy financial expenses during the first years. This can in the long run pose a threat to the continuity of their business and to the job that goes with it. A similar problem occurs when the entrepreneur wishes to dispose of his business. Donation and succession duties are so high that they prevent the transfer to take place at the right time or encourage the elaboration of complicated fiscal constructions.

2. MAIN OBJECTIVE

The main objective is to have a policy that avoids new expenses as much as possible and that alleviates current expenses where possible, in order to encourage the development of the self-employed business and to strengthen the fighting spirit and the functioning modes of companies. The main objective is also to strive for the same policy regarding social protection of the self-employed without increasing the parafiscal pressure on social security.

3. INIATIVES AND TIME SCHEDULE

To make the access to self-employed professions easier for the unemployed, several measures have been taken such as the introduction of the status of trainee-self-employed, the larger flexibility regarding conditions to be able to benefit from a loan when one is unemployed and maintaining unemployment benefits during the preparation phase before becoming a self-employed worker. Other federal measures aim at guaranteeing a better preparation for beginners, at making the transfer of businesses easier and at improving the social status of self-employed workers.

The regions have also developed various initiatives in view of better preparing or better guiding the newly self- employed and small businesses.

4. ACTIONS AND ACTORS

To guarantee a better preparation to people who start up a business, federal authorities have strengthened the role of service professions such a consultant and assistant for SMEs; in that way, the newly self-employed can have their business plan made up by a trainee-accountant. As far as the social status is concerned, the social contributions of the newly self-employed are reduced during the fourth year of activity and the options as far as freely composed retirement pension and complementary pension have been broadened for the self-employed and for their spouses who assist them in their work. To ensure the continuity of (family) businesses and to maintain employment, de donation duties on the assets of the business have been reduced to 3%. For the same reasons death duties in Flanders have been diminished from 3% tot 0%, provided certain employment conditions are met. The Walloon Region has set up various training systems that are specifically aimed at managers of SMEs. The training for business creation is a flexible training and coaching instrument, individually aimed at candidate-business creators, through the IFPME, in partnership with the Offices for job creation and the Centres for business and innovation; a new training for administrators, mainly of SMEs, has started in January 1999. The policy of the Brussels Region encompasses the following key points: -specific information and guidance for starters by ECOBRU and support to private initiatives to give guidance to starters; -allotment of specific training programmes to starters, as well as financial support and help with access to capital; -a consistent policy concerning centres for companies and allotment of guarantees. In 1999 priority shall be given to the development of mini-companies that make young people sensitive to the entrepreneurial spirit. For the fourth year in a row, the Flemish government has granted supplementary budget means to scientific research (an annual increase of 2 billion BEF, which in a comparison between 1999 and 1995 means a supplementary effort totalling 8 billion BF). Particular attention is paid to the access of SMEs to subsidies for applied research as well as to the development of new entrepreneurial initiatives to valorise university research. New regulations have been elaborated as far as bonuses for the professional council are concerned. In the German-speaking Community help is given to the creation of companies, to self-employed work, to innovative companies and in case of the take-over of a company within the frame of the "Gemeinschaftliches Ausbildungs-und Beschäftigungsbündnis".

5. INDICATORS AND RESULTS

In 1997, the proportion of self-employed within employment as a whole was exactly on the level of the European average, namely 14,9% (18.2% for men en 10.1% for women). If the assistants of the self-employed are added to this figure, self-employed work amounts to 17,2%. Self-employed work has decreased continually since 1997 but has redressed with 100,000 people since then. In 1997 about 700,000 people worked as self-employed. A phenomenon that deserves to be pointed out is the fact that the amount of people working as self-employed next to their salaried job is increasing rapidly. Within 10 years this figure has increased with about 60%, now totalling over125,000 people.

III NEW INITATIVES IN THE LIGHT OF THE 1999 OUTLINES

In order to support the creation and the growth of SMEs, the feasibility of a revaluation of the "company risk" will be looked into. Attention will be mainly paid to the fiscal handling of owner's long-term equity and outside capital in SMEs. It will be looked into how structural forms of collaboration between SMEs and between SMEs and large companies can be given support. Regarding the social protection of self-employed entrepreneurs, it will be examined which initiatives have to be taken concerning the collection of social contributions during the first years of activity. Furthermore, an inventory will be established of non-fiscal levying, payments and various assigned contributions that companies currently have to pay.

Finally, the legislation on public markets will be corrected and simplified in order to make this market more accessible to small businesses.

Outline 12: Local employment, social economy, new activities

I. ASSESSMENT

1. MAIN ISSUE

Provide support to the local level, through social economy and the non-trade sector, in order to meet needs that are not sufficiently satisfied at the moment.

2. OBJECTIVE

Strengthen the regulatory framework, create additional jobs and improve the quality of services rendered.

3. INIATIVES AND TIME SCHEDULE

At federal level all the decisions taken in the context of the national action plan of 1998 have been carried out according to the time schedule and the set objectives. The social Maribel, a measure aiming at creating additional jobs in the non-trade sector, has been strengthened. Various incentives to promote social economy have been developed and the employers of that sector will be represented within the central Council for the economy. On the first of April 1999 an experience of service-cheques has been started for a two-year period. At the Regional level several measures have been taken to support and promote job creation at a local scale, within social economy and the non-trade sector.

4. ACTIONS AND ACTORS CONCERNED

The application field of the social Maribel has been broadened and the amount of reduction of social contributions will increase to 9,750 BF per quarter by the first of July 1999. As far as the social economy is concerned, the following initiatives have been taken: legal definition of social insertion economy, access of social economy businesses to public markets, definition of the status of in-company trainees who learn while working, fiscal measures in favour of businesses with a social goal and in favour of insertion companies. A test of service-cheques is being carried out in the sector of painting and upholstering at people's homes. Through the system of service- cheques, the federal State bears half the cost of the manpower of these services. The Walloon Government, together with the social partners and in close collaboration with local authorities, encourages the emergence of new work opportunities through various measures. Insertion companies: those are companies that have a social goal and that commit themselves to lastingly reintegrate in a normal job at least 50% of long-term unemployed people or people with the same status and who are particularly difficult to place. 30 businesses have asked for recognition and 23 out of them have been recognised, which represents about fifty people looking for a job. Being recognised enables those companies to benefit from a regional degressive grant over three years and from a degressive reduction over a four-year period of the social security contributions paid by employers. The "Agences de développement local/Offices for local Development" aim at bringing the various actors on the local scene closer together, actors in the fields of economy, social aspects, environment, culture and the administration and the municipal representatives in view of elaborating common projects that can generate local employment. Each ADL (Office for Local Development) gets an annual fixed sum from the Walloon Region during a two-year period.

In the Brussels Region, as far as social economy is concerned, a regulation that was voted in March 1999 provides for social help to development of insertion companies that take on job seekers that are particularly vulnerable; those businesses benefit from a hiring bonus for the manager who takes on those vulnerable job seekers and from a loan at favourable conditions. At local level, contracts between commercial groups have been developed. They make it possible to revitalise certain neighbourhoods in which trade is predominant. 12 pilot-project have been launched in

19999. In the same vein, neighbourhood contracts aim at revitalising the most deteriorated neighbourhoods where social handicaps pile up. People who are in a precarious situation or who are excluded, get work again in the context of neighbourhood control. To improve the living environment and to strengthen social cohesion of seven particularly disadvantaged neighbourhoods, a regional budget of 650 million BF, to which are added 250 million BF from the Federal level, has made it possible to take on more than 200 job seekers to embellish public spots. In Flanders, social workshops give job seekers that are particularly difficult to place the opportunity to work again and to benefit from intensive assistance while doing their job. In 1998 the number of jobs in such workshops has increased from 500 to 800; for 1999 a new increase (from 800 to 1,500 jobs) has been foreseen thanks to additional financial means (100 million BF) granted by the Flemish government and the activation of benefits decided upon by the federal authorities. The experience regarding insertion companies has been adapted and improved. During the starting period these companies, that mainly employ long-term unemployed people who are not highly qualified, often have a low profitability. In order to get round this difficult phase, a degressive wage grant is assigned, which should make it possible for these businesses to insert themselves in the ordinary economy in the long run. The carrying out of the Flemish agreement for the non-trade sector has led to substantial job creation. The Flemish government has freed a general budget of 3 billion BF extra, namely for the realisation of new initiatives. This should permit the creation of more or less 3,000 jobs.

5. INDICATORS AND RESULTS

The reduction of social security contributions by employers, foreseen by the federal authorities (social maribel) should permit the creation of 15,000 additional jobs between 1997 and 1999 in the health sector and the sector of social actions, the gross costs amounting to 12.5 billion BF. In the non-trade sector, that falls under the competence of the Federal state, specific measures lead to the creation of 3 700 additional jobs for the 98/99 period, with a cost of 3.8 billion BF.

II NEW INITIATIVES IN THE LIGHT OF THE 1999 OUTLINES

As has been mentioned in the good practices (see outline 3), the federal government has carried out a specific measure of activation of unemployment benefits for people who have been unemployed for more than 5 years, in the context of the social insertion economy, starting May 1999.

Outline 13: Make the most of the employment potential of the sector of services and of services to companies

I. ASSESSMENT

(new outline)

II NEW INITIATIVES

1. CONCRETE OBJECTIVES AND TIME SCHEDULE

According to the study of the Bureau fédéral du plan/ Federal Plan Office "Délocalisation et mondialisation", the sectors of the economy that exploit computer science technologies are growing immensely. For example, business- related services that combine technological knowledge and social skills. New jobs, generated by the information society, are very demanding as far as knowledge and skills are concerned; that's why it is so important to invest in human capital. As far as employment is concerned, the fact that the telecommunications market is now open to free competition has created a double movement: on the one hand, the employment level of the traditional operator is under the influence of technological evolutions and on the other hand the new operators on the telecommunications market create new jobs. Eighteen months after the liberalisation of the sector, one can see that the two movements create a balance and that employment in the sector has, as a result, remained on more or less the same level.

2. IMPLEMENTATION MEASURES

In the context of the liberalisation of the sector of telecommunications, federal government has opened markets in the field of infrastructure, telephone services, mobile telephone services, telephone directories, and so on. This openness to a number of new markets has contributed to creating jobs and lifting the consequences of the restructuring of the traditional operators. The federal authority has committed itself to creating a climate that is favourable to the development of information technologies. Thus, in March 1999, the Council of Ministers has passed a bill that sets a legal frame for the use of digital signatures. Furthermore, this authority has also encouraged research and development of knowledge and qualifications related to the information society. When granting licences, telecommunication operators were forced to spend a percentage of their turnover on research and development activities or to put information technologies at the disposal of SMEs, young people or disadvantaged groups. Federal authorities have made considerable investments (860 million BF) to facilitate the access of young people to the information society. The public federal authority will set up a database with the different training possibilities turned towards new information and telecommunication technologies that exist at the different education levels. In order to develop electronic commerce, conditions have been created in order to be able to use high levels of information output both on the network of the traditional operator and the network of alternative operators. Furthermore, the safety of electronic commerce has to be strengthened in order to increase the trust consumers have in that type of transaction. In this regard public authorities have to set the example by doing their own shopping through electronic commerce in the context of public markets. Finally, federal authorities will encourage the construction of flexible and attractive structures for "call centres" as incubators for new investments. Regional authorities have contributed to help promote employment in the sector of services; in the Walloon Region there are several help-measures for SMEs to encourage the development of new economic activities. In the Region of Brussels-Capital, where the sector of services represents 88% of the total economic activity, the employment observatory created by ORBEM regularly carries out studies about the evolution of the qualification requirements in various professional sectors.

Outline 14: Reduction of fiscal expenses on employment and reduction of indirect wage costs

I. ASSESSMENT

1. ISSUES

When, a few years ago, the competitiveness of Belgian companies was threatened due to an unfavourable development of salaries, the federal government took measures in order to have a better control on the evolution of salaries. Currently, the evolution of salaries is assessed and permanently compared to the increase of wage costs in our three neighbouring countries. During the elaboration of the national plan of 1998, it was found that the social security contributions paid for by the employers in Belgium was 3.4% higher than the average in our three neighbouring countries. Furthermore, a specific problem affects workers with a low salary. In certain cases, the difference between the highest unemployment benefit and the minimum guaranteed monthly income is not important enough to encourage the unemployed to take on a job.

2. MAIN OBJECTIVE

As far as the reduction of fiscal charges is concerned, the federal government, after consulting the social partners, has set as an objective to bring the contributions by employers down to the average of our neighbouring countries within a delay of 6 years and this without endangering the financing of social security. At the same time the evolution of salaries will be permanently followed up, to avoid salaries to increase more rapidly than in our 3 neighbouring countries. To eliminate the thresholds preventing the unemployed to look for a job that pays the minimum wage, measures have to be taken to increase the net income of this category of workers.

3. INITIATIVES AND TIME SCHEDULE

In the context of the legislation to safeguard the competitiveness of Belgian companies, the social partners have agreed in an interprofessional agreement that in the period 1999-2000 the salaries could augment with 5.9% on average (including the adaptation to the index and the barema increases). To apply the national action plan of 1998, a system of reduction of social contributions by employers has been elaborated that harmonises the existing Maribel measures and measures for low salaries. From the 1st April 1999 onwards, additional reductions of cost amounting to 18 billion BF will be granted during 6 years, totalling after 6 years an annual reduction of 108 Billion BF. This reduction of structural costs consist, on the one hand, in a lump sum assigned for each worker, and on the other hand an additional reduction for workers with a modest salary (maximum 62,000 BF gross salary per month). As a result, this measure has a relatively higher impact on low salaries. For people who work part-time, the reduction of costs is calculated in proportion to the working time, after which a multiplication factor is used, which means that part-time workers get a reduction which is more than proportional. The federal government has also decided to spend 1 billion BF for the increase of the net income of workers who have the minimum wage. Finally, as far as the reduction of costs is concerned, it should also be noted that in Flanders a reduction of work- related costs is granted, namely Vlamivorm (see outline 6).

4. ACTIONS AND ACTORS

The final objective of the reduction of costs has been set by the federal government taking into account the suggested objective of 6 times 18 billion BF of additional reductions. The evolution of wage costs, of employment and of training efforts will be assessed yearly by the social partners, in first instance at a general level. If no general explanation is satisfactory, correcting mechanisms have been provided for and an inquiry per sector can be carried out which can then in turn give rise to the application of correcting mechanisms such as the postponement for one year of half of the structural reduction of social costs in the sectors where no training or employment agreements have been concluded. It has also been decided, after consulting the social partners, to achieve the increase of the net salary of workers who get the minimum wage through a reduction of personal contributions to social security, which will increase their net income by at least 1 500 BF per month.

5. INDICATORS AND RESULTS

In 1998 the reductions of the contributions by employers to social security are estimated at 66 billion, which means a decrease of wage costs of about 1.9%. The net increase of employment thanks to efforts as far as reduction of contributions is concerned, is estimated at 7,400 units in 1999, 15,800 (all added up) for 2000 and 50,000 (all added up) for 2004. This increase of employment is mainly due to: -higher employment levels thanks to higher demand for jobs because of the reduction of wage costs; -higher level of activity thanks to the positive effect on economic incentives because of the reduction of the cost of the work factor; -the targeting of the measure on the categories with the lowest salaries, where elasticity is higher than on average; -specific measures for promoting employment in the non-trade sector and job creation in the sector of services.

The implicit tax level on salaried work amounted to 44.8% in 1996, which means a slight decrease (-0.1 point) compared to the previous year. However, this level remains higher (+ 2.2 points) than the European average.

Outline 15: Reduce the vat-rate on services that are very labour-intensive

I ASSESSMENT

(the service-cheque, mentioned in the action plan 1998, replaces outline 12 in this case).

II NEW INITIATIVES IN THE LIGHT OF THE 1999 OUTLINES

1. CURRENT SITUATION

A number of proximity services are already exempt from VAT (babysitting, housework…). Other services that have been suggested (sales of gardening products, cleaning services,…) are in principle submitted to VAT but are exempt from this if the turnover is less than 225,000 BF per year.

2. NEW ACTION

The federal authorities have decided to let a number of activities performed by bodies with a social character benefit from a reduced VAT-level (6%). The European Commission is currently examining a draft-directive aiming at authorising, by way of experiment, the application of a reduced VAT-level on services that are labour-intensive and that are not exposed to competition. Each Member State has to formulate proposals for the Commission and make remarks in this regard before the 1st

September 1999. Belgium has already formulated a number of remarks but has also asked for the date of September the first to be postponed to October or November the first, taking account the formation of the next government. Each Member State has to point out which sectors could benefit from the experience. The services that are likely to be aimed at by this measure are the reparation of movable goods; renovation works in old houses and renovation of the artistic heritage as well as maintenance of gardens and green areas.

However, the impact on the budget will be an important element in choosing the sectors for which the measure will apply.

Axis III: Encouraging the adaptation capacities of companies and their workers

Outline 16: Modernization of the organisation of work (1)

I ASSESSMENT

1 ISSUES

Promoting the redistribution of work and part-time work are important factors in the fight against unemployment. The amount of part-time workers has strongly increased over the last few years in Belgium (from 10.9% in 1990 tot 14.7% in 1997) but still remains below the European average (16.9%). The amount of part-time workers in the active population can still grow. Combining professional tasks and care for the family remains an important problem for many parents who go out working; the possibility to retire, for a while, partly or entirely, from professional life can still be refined. For the various systems of collective working time reduction, a context is needed in which the rights and wishes of both workers and companies are taken into account.

2 MAIN OBJECTIVE

In Belgium there are already a number of measures to organise and distribute work in a different way, to create more jobs and at the same time strike a balance between flexibility and security. As far as individual measures are concerned, the focus remains on the improvement of the status of part-time workers and on the adjustment of the system of career interruption. As far as collective measures are concerned, the focus is on the development of a frame in which the collective reduction of working time can be better and more often used as an instrument of work redistribution.

3. INITIATIVES AND TIME SCHEDULE

Implementing the Belgian action plan of 1998, a right to interrupt one's career has been introduced in the private sector since January first 1999 for 3% of workers, with special application modes for SMEs. The regulations concerning the specific right to career interruption in case of leave for palliative care, parental leave or to take care of severely ill members of the family. In the field of part-time work it's worth mentioning that some part-time workers can now also benefit from paid educational leave. As far as collective measures are concerned, the conclusion of agreements about the planning of labour organisation has been encouraged by the reduction of company costs. On one hand the systems of reduction of costs in case of redistribution of work in businesses with difficulties or restructuring have been strengthened, on the other hand the reduction of contributions in case of redistribution of work in companies that take on new workers has been strengthened as well. A new system has been introduced, namely the four-day working week, for reasons of work organisation, that offers companies reductions of contributions for the additional staff they have to take on when they change to a four-day working week. The various regional governments have elaborated measures that complement and strengthen federal policy as far as modernisation of work organisation is concerned.

4. ACTIONS AND ACTORS

The right to interrupt one's career can be further extended through collective labour agreements in various sectors or enterprises. If one wants to apply the system of collective reduction of working time together with reductions of contributions in case of redistribution of labour, a collective labour agreement has to be signed at company level. Since 1994 the Flemish authority encourage, through a system of temporary bonuses- systems of voluntary redistribution of labour. Career interruption as well as reducing working time are encouraged during maximum two years. This measure that has been extended and strengthened is becoming more and more of a success; in 1998 the amount of applications exceeded 14,000 and one expects an even stronger growth for 1999. The Walloon government gives additional support to Walloon enterprises that participate to federal initiatives concerning collective reduction of working time, namely for the carrying out of feasibility studies or as a help for the costs of reorganisation and training of staff. A partial compensation in wages will be provided for the workers who reduce their working time.

5. INDICATORS AND RESULTS

The level of part-time work has increased in the last few years, but it still remains (14.7% in 1997) below the European average (16.9%). This is due to the small amount of part-time work by men (3.2%) whereas the female part-time work level (31.3%) is quite close to the European average (32.4%). At the end of 1998, the amount of beneficiaries of a career interruption has increased to almost 72,000 people (10,400 men and 61,500 women), which represents an increase of 12,000 units compared to the previous year.

Outline 17: Modernization of work organisation

I ASSESSMENT

1. ISSUES

To bring supply and demand on the labour market closer together as well and as soon as possible, one turns more and more too flexible systems and flexible labour contracts. This need for a larger flexibility on the labour market needs to be permanently conciliated with the need for security of the worker and the need of flexibility that can be a benefit for the worker himself.

2. MAIN OBJECTIVE

The federal government and the social partners wish to achieve, between now and five or six years' time, the average level of our three neighbouring countries as far as modernisation of the labour organisation is concerned.

3. INITIATIVES AND TIME SCHEDULE

The initiatives announced in the action plan 1998 have partly been carried out, namely the improvement of the status of part-time workers, the labour contract for workers who work for local employment offices, the improvement of the system of career interruption and the participation of staff to profits of companies.

4. ACTIONS AND ACTORS

The status of part-time workers has been improved, amongst others, by making the general reduction of costs (see outline 14) in proportion more strongly felt for the work of part-time workers and by making paid educational leave in certain cases accessible to part-time workers (see outline 16). An act was passed that grants to workers who work for a Local Employment Office a status with more legal and qualitative guarantees. The system of career interruption has been adapted (see outline 16). Finally, an act was passed encouraging the participation of staff to the profits their company makes with a legally sound system that comprises a favourable tax and tax-related treatment for the allotment of shares below par rating or options on shares.

5. INDICATORS AND RESULTS

In 1997 almost 200,000 salaried workers were working in a temporary job (85,000 men and 115,000 women). The amount of salaried workers who have a temporary job has increased by more than 30% during the last five years. Compared to the total amount of salaried workers, the level of temporary work amounts to 6.3%, 4.6% for men and 8.6% for women. The growth of temporary work as compared to salaries work goes on, the proportion of temporary work had increased from 0.9% in 1993 to 1.4%.

II NEW INITIATIVES IN THE LIGHT OF THE 1999 OUTLINES

A draft-bill has been elaborated and has been submitted to the national Labour Council on the basis of a study about the possibilities to make a more precise and legally sound distinction between self-employed and salaried workers. In accordance with the interprofessional agreement, the national Council of Labour will look into the possibilities of separating permanent workers; the national Council of Labour will also look into the status of part-time workers in a number of specific respects (early retirement, yearly holidays,…). Finally, it will be looked into if further systems of participation of workers can be introduced, with a particular focus on the specific situation of SMEs.

Outline 18: Investment in human resources

I ASSESSMENT

1. ISSUES

The rapid technological changes and the innovations of production systems force workers to constantly perfect their professional skills and knowledge. This means one needs to further and better develop the possibilities for life-long learning.

2. MAIN OBJECTIVE

All three Belgian authority levels encourage investments in human resources and in in-company training through a whole series of measures. The interprofessional agreement provides for additional efforts by companies regarding life-long learning in the context of planning over the years.

3. INIATIVES AND TIME SCHEDULE

At federal level, one can point out in this context that improvements have been made to the system of paid educational leave (educational leave for part-time workers and a specific system of paid leave in SMEs) and that there has been an initiative, which has already been mentioned, by social partners to allow additional efforts regarding life-long learning (outline 5). Aside from actions in the context of the fourth objective of the ESF programme, Flemish authorities continue to encourage investments in life-long learning and in updating knowledge constantly through a credit as a lever for innovative training. Furthermore, Vlamivorm provides a reimbursement of the property deduction for the companies that increase the level of training in their company (see outline 6). In the Walloon Region, the new system of training cheques gives more possibilities for life-long training to self- employed workers and to workers occupied in companies with less than 50 people. Furthermore, a database has been put on the Internet, with information about the training possibilities and within FOREM a department has been set up that gives advice and guidance to SMEs when they engage in life-long learning actions.

4. ACTIONS AND ACTORS

The commitment of the social partners to allow additional training efforts should bring Belgium, as far as life-long training is concerned, to the average level of our three neighbouring countries within 6 years. For the 1999-2000 period, this means that the general effort of companies will increase from 1.2% tot 1.4% of the aggregate remuneration of employees. The various sectors have been invited to valorise the training initiatives of the regions and communities when signing training agreements; the training should affect all categories of workers as much as possible and particular attention needs to be paid to training courses for women. The Flemish lever-credit finances 27.5% of the training-related costs, training should be demand-oriented and should adapt the qualifications of workers or job seekers to new functions or functions that have been modified due to innovations. In the conte