ESBA - The Independant Voice for Small Business

ESBA welcomes the flexible approach to ‘Flexicurity’

Brussels, 28th June 2007

On 27 June, the Commission published it Communication on flexicurity. The notion of flexicurity seeks to combine a certain level of social and job security with a flexible labour market. It is regarded by the Commission as a means of tackling a range of problems faced by European member states, including: an ageing population, the decline of manufacturing, crafts and farming; the pressures of globalisation; and the segmentation of the labour market according to employees’ skill levels.

The Communication sets out several ‘flexicurity pathways’, intended to tackle particular issues arising in different Member States. Pathway 1 seeks to tackle contractual segmentation, by allowing a more equal distribution of flexibility and job security across the labour market. Pathway 2 seeks to develop the skills of workers within enterprises to enable smoother job transitions resulting from restructurings. The third pathway seeks to reduce skills gaps to enable low-skilled workers to become upwardly mobile. Finally, pathway 4 seeks to improve the opportunities for benefit recipients through lifelong learning combines with adequate unemployment benefits.

ESBA welcomes the Commission’s proposed common principle emphasising that flexicurity cannot involve imposing a single system on all Member States, as it is not advisable to adopt an EU-wide ‘one size fits all’ approach to labour law. Economies which have developed around highly flexible labour markets and low taxation are not suited to such a model, as the increased tax burden and disincentive to work will provide an insurmountable challenge for many SMEs.

ESBA emphasizes that any future proposals in labour law must take the ‘think small first’ principle into account. The dynamic between employer and employee is very different for SMEs than it is for large companies. It is vital to recognise that regulations designed for large companies can present a severe and unnecessary burden for SMEs.

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Note to the editor:

The European Small Business Alliance is a non-party political European group, which cares for small business entrepreneurs and the self-employed and represents them through targeted EU advocacy activities. ESBA also works towards the development of strong independent advocacy and benefits groups in European countries. Today, ESBA is one of the largest organisations based on voluntary membership in Europe. Through its direct membership, associate membership and cooperation agreements, ESBA represents almost one million small businesses and covers 35 European countries For more information, please contact: secretariat@esba-europe.org

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Page last updated: 05/07/2007 3:53:35 PM