Industry social partners sign agreement to bring more people into employment

In January 2003, the social partners in Denmark's industrial sector concluded an agreement on the implementation of a government plan entitled 'Bringing more people into employment', which is due to be enacted during 2003. The aim is to increase employment by introducing subsidised periods of employment to upgrade the skills of people facing labour market difficulties, along with 'workplace introduction' schemes, while ensuring that these initiatives do not lead to the replacement of existing jobs on ordinary terms

On 8 January 2003, the main social partner organisations in the industrial sector, the Confederation of Danish Industries (Dansk Industri, DI) and the trade union bargaining cartel, the Central Organisation of Industrial Employees (CO-industri), concluded an agreement which aims to implement the government's labour market reform plan agreed in October 2002, entitled 'Bringing more people into employment' (Flere i arbejde) (DK0210102F). The agreement is based on the assumption that the legislation to implement this plan - which seeks to create a simplified single system of measures aimed at getting unemployed people back into work - will be presented and implemented in the course of 2003.

The aim of the DI/CO-industri deal is to increase employment in the industrial sector through the conclusion of an agreement on how the social partners and enterprises can help people who are not immediately able to perform a job on normal terms and improve their chances of obtaining employment at ordinary terms and conditions on the labour market. It is a precondition for the social partners that people employed through a temporary wage subsidy must not displace regular employees.

The main points of the agreement are that:

• local agreements may be concluded concerning the conditions to apply during the period of upgrading of skills for people employed on a wage subsidy. The aim is to upgrade social, linguistic and/or professional skills at the workplace with a view to qualifying the person concerned for performing a job without a wage subsidy. Similar agreements may also be concluded with a view to maintaining people with reduced working capacity in employment;

• company-level cooperation committee s are to be informed and involved in the determination of the principles for workplace introduction schemes, which are aimed at improving people's professional, linguistic and/or social competences within private sector enterprises and clarifying job prospects, for instance prior to recruitment on a wage subsidy. It is a precondition that the workplace introduction period must be financed by the public authorities, as foreseen in the government's 'Bringing more people into employment' plan. People undergoing workplace introduction schemes are not employees of the enterprise concerned. The duration of the workplace introduction period will be determined within the legislative framework which is to be laid down; and

• there should be a reasonable balance in individual enterprises between the number of regular employees and the number of people employed with a wage subsidy, on a workplace introduction scheme or on other schemes. It is a prerequisite for the social partners that the use of workplace introduction schemes must not lead to abuse, including the displacement of ordinary employees.

This agreement has been incorporated as a protocol on 'Bringing more people into employment' to the collective agreement for the industrial sector, and will come into force as soon as the relevant legislation has been implemented.