Employer federation cautions against regionalisation of employment policies

In February 2007, the Belgian Federation of Employers (FEB/VBO) set out its demands in advance of the forthcoming federal elections and parliamentary period 2007–2011. FEB/VBO’s proposals stipulate the parameters within which it would like to see state reforms taking place, as well as outlining recommendations for building a more dynamic and competitive knowledge-based economy.

On 8 February 2007, the Belgian Federation of Employers (Fédération des Entreprises de Belgique/Verbond van Belgische Ondernemingen, FEB/VBO) published its Memorandum for the next term 2007–2011 (in French), outlining its key objectives in advance of the June 2007 federal elections. Among its objectives are five key goals for the Belgian economy, along with a proposed change to the country’s institutional structures.

FEB/VBO had already outlined its targets for 2010 in its Strategy 2010 – Growth and jobs: Breaking the taboos (in French), published at the beginning of 2006, which included objectives for the implementation of the Lisbon Strategy.

Concerns over employment reforms

According to President of FEB/VBO, Jean-Claude Daoust, any reform of the state must be based on open dialogue, while respecting the mutual solidarity between the regions and allowing all parties – including the social partners – to express their views freely. Moreover, such reforms should not only encompass plans to transfer powers from the federal authorities to the regions but also vice versa.

According to the employer federation, a reform of employment policies towards regionalisation could prove detrimental to companies, as it would make the operation of enterprises established in different regions more complicated. Different labour laws, wage policies or employment taxes would be counterproductive and would not encourage employers to invest in Belgium. FEB/VBO contends that employment reforms would only bring benefits if they guaranteed legal security, simplified the administrative process and reduced the cost of all public services.

Overall, FEB/VBO has not taken a particular stance on the debate currently under way in Belgium on the regionalisation of employment policies. Instead, the federation merely recommended certain strict conditions aimed at securing more beneficial reforms for Belgian companies and the economy.

Views of other social partners

As the next federal elections approach, several political leaders and some Flemish employers and their representatives – including the Organisation for the Self-Employed and Small and Medium-sized Enterprises (Unie van Zelfstandige Ondernemers, UNIZO) and the Flemish Employers’ Organisation (Vlaams Economisch Verbond, VOKA) – raised the idea of a possible reform of the state. In particular, they proposed a reform that would give greater powers to the regions in relation to employment policies. They argue that the labour market varies widely in different parts of the country and that federal policies have not evolved accordingly to adapt to the requirements of the regions.

Nevertheless, opinions differ in both the north and south of the country. The two main national trade union groups, the Confederation of Christian Trade Unions (Confédération des Syndicats Chrétiens/Algemeen Christelijk Vakverbond, CSC/ACV) and the Belgian General Federation of Labour (Fédération Générale du Travail de Belgique/Algemeen Belgisch Vakverbond, FGTB/ABVV), have already rejected the proposed regionalisation of employment policies. According to the President of CSC/ACV, Luc Cortebeeck: ‘The fundamental mechanisms of solidarity between workers must remain federal: social security, labour law and inter-professional collective agreements’ (BE0611049I).

President of the FGTB/ABVV, Rudy De Leeuw, stated that a regionalisation of employment policies would fragment the social security system and in turn threaten workers’ solidarity, while causing a loss of purchasing power throughout the country. Mr De Leeuw contended that employment policies must remain a federal matter but that they should be implemented logically and take into account the differences between the various parts of the country.

Towards a more competitive economy

Besides its concerns in relation to state reforms, FEB/VBO expressed its desire to help make the Belgian economy more dynamic and competitive. Its recommendations in this respect encompass the five following key objectives:

• The Belgian economy must be made more attractive to investors, in particular through a more favourable tax system and greater investment in innovation.

• More active unemployment measures are needed and also more flexible hire and fire processes in order to respond quickly to the needs of companies.

• A more effective public sector should be fostered, offering easier and quicker administrative procedures.

• Corporate legislation should not hinder economic development and should leave more scope for self-regulation.

• The Belgian government should add its weight to the European decision-making process and support a European strategy in favour of enterprise and the creation of new jobs.

Innovation remains a topical issue in Belgium; in September 2006, the Central Economic Council (Conseil Central de l’Économie/Centrale raad voor het bedrijfsleven, CCE/CRB) hosted a meeting between the social partners on the Belgian system of innovation (BE0610019I).

Emmanuelle Perin, Institut des Sciences du Travail (IST), Catholic University of Leuven