Europe in recession: Employment initiatives at company and Member State level

This short background paper seeks to describe how some companies, the social partners and Member States in the EU have reacted to forestall or mitigate the negative employment consequences of the economic downturn. The emphasis on three specific types of initiative: short-term working, paid/unpaid sabbaticals and 'pay for jobs' clauses in restructuring agreements. A common feature is negotiated reduction of working time balanced by increased provision of training. The rationale for such measures is that upskilling during a period of reduced demand retains qualified staff, enhances human capital and preserves internal flexibility in anticipation of an upturn. Most of the short case examples date from September/October 2008 onwards.

• Primary Source

European Foundation for the Improvement of Living and Working Conditions: Press Release, 16.3.09: Signs that employers opt for alternatives to redundancy http://www.eurofound.europa.eu/press/releases/2009/090316.htm

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