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Communiqué, issue 4, 2002

Articles

Foundation Forum 2002

The Foundation is organising an annual forum in which high-level actors and thinkers can debate socio-economic issues related to the development of European social policy. The first Foundation Forum will take place in Dublin on 29-30 August next. The European Social Model faces important challenges in the coming years. Issues such as globalisation, enlargement, and technological change will affect the relationship between employees, employers and the state. In addition, the ageing of the population and the workforce, as well as changing employment and family patterns, will demand an active response by policymakers.

The Foundation has created an annual stage to bring together high-level politicians, social partners, researchers and experts in the socio-economic policy field. The Foundation Forum 2002, entitled 'Europe makes a difference - Challenges for the European Social Model', will be held at Dublin Castle. Some 200 people, among them Irish Prime Minister Bertie Ahern, EU Commissioner Anna Diamantopoulou and ministers from EU Member States and candidate countries, will be present.

Voice of the young

'The European Union has to cope with enlargement at the same time as trying to achieve the goal of being the most competitive and dynamic knowledge-based economy in the world,' says Foundation Director Raymond-Pierre Bodin. 'We have created the Foundation Forum as a platform for an open and frank debate on how these challenges affect the future of the European Social Model, letting the voice of the young be heard alongside high-level policy-makers and experts.' The Forum will also present the vision of today's young people about tomorrow's Europe. Professor Theodore Zeldin of Oxford University will chair a parallel debate with young Irish students in Dublin Castle. Selected European students will also participate in this event.

Challenges and choices

The Forum will examine and discuss what characterises the European Social Model, and how it has developed across Europe. The debates will focus on flexible labour markets, an active society for all, social rights and social standards, and the governance of an enlarged European Union. The balance between social and economic interests in both the short and long term will be specially emphasised. At the opening of the conference, key speakers will present the European Social Model and its significance in the social policy context. The first day's panel debate will consider what makes an efficient and effective European social model. In four parallel debates during the afternoon, potential policy dilemmas and challenges will be identified, and the future choices of social, economic and employment policies will be discussed in more detail. On the second day, the topic of the European Social Model in a competitive world will be presented, followed by a concluding debate on the role of the Social Model in a future Europe. A bulletin board has been posted on the Foundation's website. This will allow a wider audience to formulate questions which can be taken up for discussion at the Forum.

For more information, please consult: http://www.eurofound.europa.eu/about/foundation_forum.htm

To submit questions for discussion at the Forum, go to the bulletin board at: http://www.eurofound.europa.eu/about/forumbb.htm

For detailed information on the Forum, contact Ola Persson, responsible for programme development, e-mail: olp@eurofound.europa.eu

More supportive policies for social inclusion

Insertion to employment is a key issue for the 'inactive' population and not only for unemployed people, according to a new Foundation study into the problems facing vulnerable groups. The report, Integrated approaches to active welfare and employment policies, was presented at the conference 'Employment and labour market insertion strategies as a tool for social inclusion', an event organised under the auspices of the Spanish EU Presidency, in Toledo, Spain on 17-18 June 2002. ´The availability and accessibility of "quality services" is the key to the development of good support to vulnerable groups,' said Robert Anderson, research coordinator of the living conditions unit at the Foundation. 'This means attention to training, working conditions and work organisation in order to get and retain the front-line staff necessary to deliver good quality services.' The interrelationship between social protection and labour market strategies has been an important research topic for the Foundation over the last ten years. The Foundation has specifically looked at guidelines to improve the effectiveness of the strategies behind integration measures, such as public/private partnerships, coordination, user involvement and equal opportunities. The second Foundation paper, Access to employment for vulnerable groups, also launched at the conference, gives an overview of the Foundation's research in this area.

Access online http://www.eurofound.europa.eu/publications/EF0204.htm

For further information, contact Teresa Renehan, e-mail: ter@eurofound.europa.eu

The Foundation paper is available at: www.eurofound.europa.eu/publications/EF0244.htm

Balancing demand and supply in home care services

The need to recruit to the household services sector across Europe has become more pressing as the labour market tightens and the population gets older. Lack of career opportunities, poorly defined routes to skills training and accredited qualifications are some of the reasons that prevent household services from gaining the acceptance this sector needs across Europe, according to Foundation research on employment in household services. At a recent European conference, 'Care Workers-matching supply and demand: employment issues in the care of children and older people living at home', held in Sheffield, England, on 20-21 June, labour supply problems in the care sector were specifically under scope. The conference was organised jointly by the Foundation and the Centre for Regional Economic and Social Research at Sheffield Hallam University.

Demand for care

As female participation rates in Europe have risen, all countries have seen rapid growth in the services and jobs needed to provide childcare. At the same time, the informal care of Europe's growing numbers of older people by their grown-up children is increasingly being supplemented or even replaced by domiciliary care services, delivered in the homes of those who need support. Research carried out by the Foundation and others show that care is provided by families, as well as by paid workers, in both formal and informal economies. The problems encontered in home care are very different in the Nordic and Mediterranean and Central European countries.

Quality of employment

In childcare as in eldercare, there are also widespread concerns about the quality of employment and about the relatively poor prospects for the recruitment of skilled workers. Although upgrading of the skills of the existing workforce is important, there needs to be a progressive approach, as the workforce encompasses workers with different levels of skill requirements. However, the main tension is between demand for better quality and accessibility of services in an environment of cost containment.

Balancing demand and supply

There is a need to develop services that support and recognise the contribution of family care. However, there is also a need for citizens and users to recognise the value of work done in the care sector, and for workers to receive recognition in terms of wages and training. Furthermore, public authorities have a role to play in the development of both the quality and accessibility of care services.

For more information on this subject, consult www.eurofound.europa.eu/living/emp_hholdserv.htm

For further information, contact Teresa Renehan, e-mail: ter@eurofound.europa.eu

Better governance through clearer social dialogue

The European Commission has declared that social dialogue is the key to better governance of an enlarged Union and a driving force for economic and social reform. The Foundation has been asked to play an active role in establishing the new 'European social dialogue, a force of innovation and change.' The European Commission has come to the conclusion that a collaborative effort, involving social partners and political decision makers, is required to achieve the goals set out at the European Summit in Lisbon, as well as ensuring good governance in an enlarged European Union. In a communication adopted in Brussels on 26 June, the Commission put forward a series of concrete measures aimed at strengthening the different levels and forms of social dialogue, to bring about the necessary environment of innovation and change.

Strengthened role for the Foundation

The Foundation currently publishes regular reports, background information and reviews on developments in industrial relations across Europe. It also continuously establishes new analysis and research to improve understanding of industrial relations. The Commission, which advocates continued and closer collaboration with the Foundation in the future, has commended this effort. On a practical level, the Commission has requested the Foundation to organise joint training sessions to create partnerships on subjects relevant to the guidelines defined in Lisbon, open to representatives from the social partners, and local and regional authorities.

Focus on EIRO and the EMCC

The Commission stresses that it is in the interests of the European social partners to take full advantage of existing tools and monitoring when defining their own targets for social and economic reform. It highlights the importance of two Foundation monitoring tools, the European Industrial Relations Observatory (EIRO) and the recently established European Monitoring Centre on Change (EMCC). In its communication, the Commission envisages reviewing the technical and logistic facilities available to the social partners. At a time when the European Industrial Relations Observatory has expanded its current network of national industrial relations centres from the 15 EU Member States to include the first new centres (Slovenia, Slovakia, Poland and Hungary) for the provision of information on industrial relations in the candidate countries, the Commission sees an increasingly important role for EIRO.

A tripartite social summit for growth

The European Commission Communication contains a proposal for a Council decision on establishing a tripartite social summit for growth, a suggestion prompted by the social partners' contribution to the Laeken European Council and by the reflections of the High-Level Group on Industrial Relations

To consult the industrial relations pages on the Foundation's website, see: www.eurofound.europa.eu/industrial/industrial.htm

For more information, contact Camilla Galli da Bino, Information Liaison Officer, email: gdb@eurofound.europa.eu

Research in figures

Gap between real and desired working hours in Europe There is a mismatch between how long those in employment want to work and how long they have to work, according to a Foundation survey into working time preferences. It found that many are tied to a working rhythm that diminishes the ability to integrate non-work activities, for instance family or caring responsibilities, into their working life.

Source:
Working time preferences
in sixteen European countries,
s2002

Promoting financial participation for employees

Employee share ownership and profit-sharing are set to increase following the European Commission's recent decision to address current obstacles and introduce cross-border financial participation schemes for company employees in the European Union. Financial participation schemes are believed to benefit employees and at the same time increase the competitiveness of European companies. The European Commission argues that improved financial participation could play an important role in achieving the objectives of the Lisbon summit, that of making Europe the most competitive and dynamic knowledge-based economy in the world by 2010. The European Commission has identified a number of barriers that inhibit the introduction of financial participation schemes across the European Union. On 5 July, it adopted a plan to promote financial participation through the framework of Community actions and through a set of principles which identifies actions to be taken a national level. The Commission communication is the result on an extensive consultation process, launched in July 2001 and has involved - among others - the social partners and the Foundation. Room for improvement

A Foundation study on financial participation published in 2001 shows that only 28% of European companies had any financial participation schemes at all in 1997. The study found that it was primarily large companies, those with more than 200 employees, which had introduced financial participation schemes. Share ownership structures were reported to be particularly rare, existing in only 9% of companies.

Companies in France and the United Kingdom tended, however, to stand out from the rest, with more than half of these offering financial participation schemes to their employees. France has the highest incidence of profit-sharing, supported by mandatory regulations and promotional activities, while the United Kingdom, with its established tradition of financial participation, has the highest incidence of share ownership schemes in the EU.

Profit-sharing and employee share ownership

There are two categories of financial participation schemes, both linked to how well the company is performing. In profit-sharing plans, employees are given a variable income which is directly linked to profit or any other measure of the company's performance. In share ownership plans, employees are paid dividends on their company shares. Employees involved in financial participation schemes are not sufficiently informed about the risks involved, according to the European Commission. As with any other investment venture, employees in these schemes are at risk since their company can be affected by adverse economic developments. Also, a clear distinction should be made between a salary and a benefit from financial participation schemes, to avoid the possible substitution of profit-sharing and employee share ownership for regular wages and salaries.

Good practice

The Commission communication outlines a set of general principles which characterise most financial participation schemes in the EU Member States, to be used as a reference for good practice. Among them are requests that financial participation schemes should be open to all employees and should be voluntary for both companies and employees. They should be based on transparent formulas which facilitate the comprehension of all involved. Later this year, the European Commission plans to set up a group of experts to come up with solutions to facilitate the introduction of cross- border financial participation schemes, despite current differences between the Member States regarding taxation and social security systems as well as national laws governing employee contracts, including severance pay.

To download the Foundation report, Recent trends in employee financial participation in the EU, go to www.eurofound.europa.eu/publications/EF0112.htm.

The Commission communication may be viewed at:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52002DC0364:EN:HTML

For more information, contact Marina Patriarka, Information Liaison Officer, e-mail: mpa@eurofound.europa.eu

Inside the Foundation

Summer web visits

The Foundation's website (www.eurofound.europa.eu) recorded a total of 50,490 user sessions in June and 60,517 in July 2002. The EIROnline website (www.eurofound.europa.eu/eiro) recorded 73,116 user sessions in June and 79,592 in July 2002. All figures represent a net decrease on user levels over previous months, most likely due to a slowdown in net traffic over the holiday season.

Recent staff additions

David Foden, originally from the UK, commenced as research manager in the Industrial Relations section on 1 July 2002.
E-mail: dfo@eurofound.europa.eu
Isabella Biletta, a seconded national expert from France, also joined the Industrial Relations section as research manager on 1 July 2002.
E-mail: ibi@eurofound.europa.eu

EIRO Network extended

Four national centres have been added to the European Industrial Relations Observatory, in an effort to extend reporting of industrial relations issues and events to the candidate countries, hence offering a more comprehensive monitoring tool for EIRO users. Hungary, Poland, the Slovak Republic and Slovenia are the first four countries in the EIRO expansion, with other candidate countries due for inclusion in the near future. The first contributions from Slovakia on 'New labour legislation implemented' and Slovenia on 'New labour relations law passed' are available on the EIRO website at: www.eurofound.europa.eu/eiro

For more information, go to www.eurofound.europa.eu/eiro or contact Camilla Galli da Bino, Information Liaison Officer, e-mail: gdb@eurofound.europa.eu

Most popular downloads

The Foundation's Third European Working Conditions Survey was the document most downloaded from the Foundation website during July 2002 with 2,181 downloads, thus accounting for almost 5 % of the total number of document downloads. Especially the French language-version has been downloaded extensively, after media reports in the French-language press. The new Foundation report Work organisation, technology and working conditions was a good second, with 1,303 downloads in July 2002. Another recent publication, Promoting gender equality in the workplace, was downloaded 854 times in July 2002, only weeks after publication. All of the Foundation's publications are available to download on www.eurofound.europa.eu/publications/publications.htm

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