28-29 April Employment Round Table

Date: 02/05/1996

THE two-day round table held to discuss Commission President Jacques Santer's proposal for a 'confidence pact' on employment ended with few concrete results. But Santer, speaking after the meeting which brought together over 70 representatives from 11 umbrella employers' and employees' bodies, said there was agreement that something needed to be done to reduce unemployment, adding: “We cannot go on as we are ... Everyone said they are prepared to contribute. The question is who does what.”

THERE was sharp disagreement over the question of high labour costs, prompting Santer to remark that it was “pretty clear that the question of non-wage costs raised hackles”. In their replies to a Commission questionnaire sent out before the event, organisations representing workers claimed that recent wage restraint had not produced any trade-off in terms of job creation, as companies had used increased profits for financial investment rather than productive investment, and rejected arguments that reducing non-wage labour costs has a significant long-term effect on unemployment. Employers stressed the need to reduce non-wage labour costs to ease the burdens on business.

THE two sides also had different views on how a reduction in working time could contribute to job creation and how 'atypical' (fixed time, temporary or parttime) work should be regulated. There was a certain amount of agreement, however, on issues such as the annualisation of working time, the reduction of overtime and the need to reconcile flexibility and security. The unions emphasised the continuing job market segregation between men and women.

MOST groups agreed there was a mismatch between supply and demand on the labour market, but also a large discrepancy between skill supply and demand. Workers' groups called for new job creation sources to be developed, while employers wondered whether the problem lay in the inadequacy of opportunities offered by the education system.

ON job creation mechanisms, the unions pointed out that wage moderation had not been accompanied by the measures they expected in return from companies. Some organisations proposed the creation of 'local development pacts', and some suggested that these could make better use of the Union's Structural Funds.

SANTER said it was up to the participants to devise specific proposals. The Commission has committed itself to preparing a comprehensive report on the work under way in time for the June summit in Florence. Santer said the summit would do for employment what the Madrid summit did for the single currency.