Improving labour market performance in EU accession countries
At a seminar on Employment and Social Reform Programmes for enlargement countries, the ILO Director for Central and Eastern Europe highlighted that even in times of fiscal constraints, social dialogue can greatly improve labour market performance.
27 October 2015
At a seminar on Employment and Social Reform Programmes for enlargement countries organized by the European Commission’s DG Employment, Antonio Graziosi, Director of the ILO Office for Central and Eastern Europe, highlighted that even in times of fiscal constraints, social dialogue can greatly improve labour market performance.
Tripartite social dialogue in South and East European countries, including all seven accession countries, is facing growing challenges, and the financial crisis has certainly interfered with a process of political, economic and social transition that was well underway.
In the Western Balkans, the indicators of labour market performance are far from satisfactory: economic activity is low, unemployment rates are high, especially among youth, undeclared work is growing, and the social security systems are under serious financial stress.
In recent years, tripartite discussions in these countries have focused on the need for labour market reforms. However, positions of employers’ and workers’ organizations on these reforms remain radically distant. Employers plead for increased deregulation and flexibility of labour laws, while trade unions, on the other hand, see no reason to accept easier lay-offs in a context where the economy is not generating new jobs.
As Mr Graziosi indicated, it would belong to the governments to reconcile these opposite concerns through policy and fiscal incentives and some kind of "flexicurity" approaches. However, the current fiscal constraints undermine the capacity of governments to absorb the social costs of flexibility and to invest in job creation.
As a result, labour law reform is either stuck in parliaments due to a lack of consensus, or it is pushed through by governments against the will of the social partners, causing a serious breach in mutual trust underpinning social dialogue.
Further, the ILO, the European Commission and the Regional Cooperation Council in the Western Balkans have joined forces to set up an “Employment and Social Affairs Platform”, expected to be launched soon, with the objective of strengthening the institutional capacities of governments, employers’ and workers’ organizations to implement labour market reforms.
Tripartite social dialogue in South and East European countries, including all seven accession countries, is facing growing challenges, and the financial crisis has certainly interfered with a process of political, economic and social transition that was well underway.
In the Western Balkans, the indicators of labour market performance are far from satisfactory: economic activity is low, unemployment rates are high, especially among youth, undeclared work is growing, and the social security systems are under serious financial stress.
In recent years, tripartite discussions in these countries have focused on the need for labour market reforms. However, positions of employers’ and workers’ organizations on these reforms remain radically distant. Employers plead for increased deregulation and flexibility of labour laws, while trade unions, on the other hand, see no reason to accept easier lay-offs in a context where the economy is not generating new jobs.
As Mr Graziosi indicated, it would belong to the governments to reconcile these opposite concerns through policy and fiscal incentives and some kind of "flexicurity" approaches. However, the current fiscal constraints undermine the capacity of governments to absorb the social costs of flexibility and to invest in job creation.
As a result, labour law reform is either stuck in parliaments due to a lack of consensus, or it is pushed through by governments against the will of the social partners, causing a serious breach in mutual trust underpinning social dialogue.
Making a difference through social dialogue
Against this background, the ILO is pursuing a number of initiatives. It is helping constituents to map the actual areas of disagreement and providing comparative knowledge regarding practices in the countries of reference. The ILO is also complementing the reforms with a broader policy agenda on which a consensus can be achieved, combining employment-friendly economic policies, active labour market policies, sustainable enterprise development and an extension of social protection.Further, the ILO, the European Commission and the Regional Cooperation Council in the Western Balkans have joined forces to set up an “Employment and Social Affairs Platform”, expected to be launched soon, with the objective of strengthening the institutional capacities of governments, employers’ and workers’ organizations to implement labour market reforms.