adapting to change: the eu approach to restructuring (social agenda issue nº 27-july 2011)

8/4/2019 Adapting to change: the EU approach to restructuring (Social Agenda Issue Nº 27-July 2011)

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ISSUE N° 27 • July 2011

Adapting to change –

the EU approach to restructuringOlder but healthier

Social services of general interestand EU rules: help is on the way

The European Commission’s magazine on employment and social affairs

ISSN: 1682-7



EDITOrIal

Focu O:

2 SocialAgenda–July2011

Older but healthier

The third edition of the EuropeanCommission’sDemographyReportshowswearelivinglongerthanever,andstay-inghealthywellintooldage. p.7

Adapting to change – the EUapproach to restructuring

Restructuringmaybeanecessarypartofeconomic life, but its consequences canbepainfulforthoseaffected.ThatiswhytheEUtriestohelpanticipatingandman-agingchangethrougharangeofpoliciesandinstruments. p.15

Social services of generalinterest and EU rules:help is on the way

The European Commission has pub-lished a guide to help public authori-t ies better to understand and applyEuropeanUnionrulestosocialservicesofgeneralinterest. p.21

S

ince the beginning o the economic crisisthe issue o restructuring has been placedat the top o the agenda o social partners,

managers and social workers across the world.In the current economic climate anticipating,managing, limiting and cushioning job losses,however caused (rom mass dismissals ollowingbig company closures to sporadic lay-os in SME’sand the termination o casual workers) becomesincreasingly diicult. But even in previous, lesschallenging times, restructuring had already madeits mark as a permanent, structural component o the economic abric o everyday lie. Globalisa-tion, inormation technologies, climate change anddemographic changes are inexorably changing

our economies and societies, pushing companiesto restructure in orderto s tay compet i t ive.The question is “should

we be doing anythingabout that?”, and i so, what can we do?The European Unionbelieves that we have toadapt – it’s the best wayor us to ensure our uture growth and prosperity.Restructuring can underpin economic and social

progress — but only i the structural changes arecorrectly anticipated, i the irms aected can takecorrective measures and manage the necessarychange quickly and eectively, and i the publicauthorities help to create the right conditions.

Thus, anticipation, preparation and accompanyingmeasures are essential.

In this edition’s “Special eature”, which beginson page 15, we take a closer look at the dierent initiatives that the EU has put in place in order tohelp Member States reduce the negative impact o restructuring and help people capitalise on theopportunities it presents. They encompass theexchange o experience and best practice, thedissemination o inormation and the provision o inancial support, notably through the EuropeanGlobalisation Adjustment Fund.

Elsewhere in the magazine we examine the

ndings o the latest European Commission report on demography. I t shows that Europeanscontinue to live longerand heal thier l ives.I t also points to theemergence o a newgeneration o “border-less” Europeans: young,educated and moving

with great ease between dierent countries to study, work and live. We also take a look at the situation

in respect to the ree movement o workers withinthe EU as the last post-2004 restrictions are lited,an event o high symbolic value.

Koos Richelle

“Restructuring can underpineconomic and social progress — but only if the structural changes

are correctly anticipated”

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COnTEnTsDEMOGraPHY

Older but healthier 7

FrEE MOVEMEnTWorkers rom eight more EU countries to enjoy ull reedom o movement 11

EMPlOYMEnT

New Commission action to create jobs or the young 13

sPECIal FEaTUrE

Adapting to change – the EU approach to restructuring 15

Anticipating change 16

Tackling the skills gap 18

Talking therapy 19

The European Globalisation Adjustment Fund adjusts itsel to change 20

sOCIal InClUsIOn

Social services o general interest and EU rules: help is on the way 21

sOCIal PrOTECTIOn

EU consultation on pensions – the results 24

nTErnaTIOnal

Greening the global economy 25

OTHEr VOICEs

Capitalising on past and present European experience to anticipateand manage restructuring 26

TEMs

News in brie 4

Interview with Pervenche Berès, MEP, Chair o the European Parliament Employment and Social Aairs Committee 27

Recent publications 28

Useul websites 28

magazineprovidinginformationonEuropeanemploymentandsocialpolicies,SocialAgendaispublishedinEnglish,FrenchandGermanbytheEuropeanCommission’sDirectorate-GeneralrEmployment,SocialAffairsandInclusion.ditorinchief:KoosRichelle,Director-General,DGEmployment,SocialAffairsandInclusion–EuropeanCommission,B-1049Brussels5,000copiesofthisissuewerepublished.Subscriptionisfreeonrequest–pleasecontact:EuropeanCommission,Employment,SocialAffairsandInclusionDG–InfoCentre,1049Brussels,Fax.:(32-2)2962393;http://ec.europa.eu/social/contactotice:NeithertheEuropeanCommission,noranypersonactingonitsbehalf,maybeheldresponsiblefortheusetowhichinformationcontainedinthispublicationmaybeput,orforanyerrorshich,despitecarefulpreparationandchecking,mayappear.•©EuropeanUnion,2011on-commercialreproductionauthorised,subjecttoacknowledgementofthesource.oranyuseorreproductionofphotoswhicharenotunderEuropeanUnioncopyright,permissionmustbesoughtdirectlyfromthecopyrightholder(s).Coverphoto:GettyImages


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nEWs In BrIEFEMPLOYMENTANDEUROPEANSOCIALFUND

The Commission is organizing a series o high-levelevents on the contribution of EU funds to theintegration of Roma in June in Bulgaria. The eventscome as a ollow-up to the 2008 EU Roma Summit inBrussels and to similar events in Hungary in 2009 andRomania in 2010. A national event is taking place on21 and 22 June in Soia, ollowed by two regional

events in Veliko Tarnovo on 23 June and in Burgas on24 June. The events aim at raising awareness about the opportunities oered by EU unds, promoting theiruse and improving the impact o projects supported bythem. They are also part o a process towards a betterinvolvement o the Roma in the implementation o theEU-unded operational programmes. Speakers includerepresentatives rom EU institutions, the BulgarianGovernment, the National Assembly, local authorities,international organisations and NGO. They will addressa target audience o representatives rom national,

regional and local authorities, potential beneciaries o EU unds, including municipalities and NGOs dealing

with the integration o the Roma, and the media.

The European Commission has launched Youth@ Work, a new action that links business and youngpeople. Youth@Work will build contacts between youngpeople and small and medium size enterprises (SMEs)- to encourage demand among SME employers or

young employees and, in turn, to promote working inSMEs to young people. In this way, it will help Europe’s

youngsters to nd jobs, and provide small companies

with inventive, energetic new employees. Young people’sideas and enthusiasm can also translate into a desire toset up their own businesses. To encourage this interest,

Youth@Work will also oer inormation and advice to would-be young entrepreneurs to help them developentrepreneurial skills and mindsets. It will reach out to

young jobseekers and SME employers through innova-tive sessions, on topics such as networking, mentoringand recruitment, which will be organised at job airsacross the EU rom autumn 2011. The action will workin close cooperation with the EURES network o employ-ment advisors and the national public employment

services, present in every EU country. Youth@Work ispart o the EU’s Youth on the Move initiative (see related article on p. 13) .

The demand or labour in Europe increased signii-cantly in 2010, mainly in trade, manuacturing andnon-inancial business services, according to theMarch edition of the European VacancyMonitor. All sources point to a positive develop-ment o the job market in Europe, with increasing job

vacancies and hiring, though not in all regions to thesame degree. Lithuania, Germany and Sweden showa particularly strong growth in labour demand. This

trend is less pronounced in Latvia, Cyprus, Romania,Bulgaria, Slovakia, Netherlands, Slovenia, CzechRepublic and Greece. While manuacturing labourersare the astest growing group o job nders in Europe,there is rising demand also or cashiers, tel lersand related clerks, sales and marketing managers,as well as inance and administration department managers, housekeeping and restaurant services

workers, oice clerks with general clerical dutiesand electrical and electronic equipment mechanicsand tters. ❙■

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The European Commission reairmed its commitment to promoting corporate social responsibility withthe publication o the study “Responsible Supply ChainManagement, potential success actors and challengesor addressing prevailing human rights and other CSRissues in supply chains o EU-based companies”. A keyarea o CSR adherence is the extent to which companiesmanage their supply chains responsibly, i.e. they ensuretheir chains o suppliers and/or subsidiaries respect basicrights – be they labour rights (or example, a living wage,reedom o association, work-lie balance, or aspects o

decent work), or other rights (or example, health andsaety at work, no use o child or orced labour, respect or citizens in local communities, or access to water/ood). The study looks at responsible supply chainmanagement in practice by European companies. It ocuses on three industrial sectors o major importanceto the EU (cotton, sugar rom sugar cane, and mobilephones) in relation to ve key CSR supply chain manage-ment issues (child labour, reedom o association andcollective bargaining, an adequate standard o living,unair price levels, and biodiversity). ❙■

WORKORGANISATION,WORKING

CONDITIONSANDSOCIALDIALOGUE

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MOBILITY

The transitional arrangements which allowedthe EU-15 countries to restrict access to their laboumarkets or workers rom eight countries which joinedthe EU in 2004 came to an end on 1st May. Workersrom Hungary, the Czech Republic, Slovakia, SloveniaPoland, Latvia, Lithuania and Estonia are now ree togo and work in other EU countries. No restrictions had

been oreseen or Maltese and Cypriot workers, whileor Bulgaria and Romania, which joined the EU on 1

January 2007, the transitional arrangements apply unti31 December 2013 at the very latest. Those EU countries

which impose restrictions on the right o Bulgariaand Romanian nationals to work there must lit theserestrictions by 31 December 2011. Only i they inormthe Commission o serious disturbances in their laboumarkets by that date will they be able to continue torestrict access to their labour market or two more years(see related article on p.11). ❙■

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The 19th European Social Services Conerence will takeplace in Warsaw rom 6 to 8 July. The conerence will beorganised by the European social network (ESN) in partner-ship with the Polish Presidency o the European Union. This

year’s theme is “Building an Active and Caring Society:Innovation, Participation, Community”. Regularly attractingover 400 delegates rom more than 30 countries, the annualEuropean Social Services Conerence is intended or all thoseconcerned with planning and delivering European socialcare and health. Through plenary presentations and a topical

workshop programme, the conerence oers learning andnetworking opportunities to all those responsible or planningand implementing services in dierent European regions:

planners, politicians, managers and proessionals.

To mark the 3rd European Day on Solidaritybetween Generations on 29 April, the EuropeanCommission organised the high level conerence ‘Towardsthe European Year or Active Ageing and Solidarity betweenGenerations (2012)’. The conerence brought togetherMember States, regional and local authorities, social partnersand civil society organisations. It also served as an important milestone in nalising plans or the European Year 2012.

Active ageing is key to Europe reaching its Europe 2020headline employment target o 75%. It is also an important

way to maintain solidarity between generations in societies with rapidly increasing numbers o older people. At theconerence, stakeholders were invited to commit to specicobjectives and activities in view o the European Year2012. A rst version o the uture website o the European

Year 2012 was also launched: http://europa.eu/active-ageing-2012

The irst two EU microfinance projects werelaunched in February in the Netherlands and in Belgiumrespectively. Dutch Micronance Institution Qredits will

be able to provide loans totalling over 20 million euros tosmall businesses and people in the Netherlands who havelost their jobs and want to set up their own company. InBelgium, micronance provider Microstart will do thesame starting in three Brussels neighbourhoods severelyaected by unemployment and social exclusion, andgradually extending its operations to Flanders and

Wallonia by the end o next year. Both institutions benetrom a guarantee by the European Progress MicronanceFacility. ❙■

PROMOTINGANINCLUSIVESOCIETY


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DEMOGraPHY

SocialAgenda–July2011 7

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radual but nonethe lessmajor changes are aecting

Europe’s population. Recent demographic trends – namely anageing population coupled with ashrinking workorce – remain irmlyentrenched; however a new report bythe European Commission shows someinteresting new developments: a modest rise in ertility and an increase in theold continent’s diversity, with moreand more o its citizens (especially the

young) being oreign-born and/ormoving reely across national bordersto work, study and live.

The third Demography Report,unveiled on 1 April, conirms thetrend towards an older population.

As the so-called “baby-boomers”born in the post-war years begin toreach their sixties and retire rom thelabour market, ageing is no longersomething that will happen at somepoint in the distant uture; it is startingnow. In 2010, the oldest popula-tions were ound in Germany and

Italy, whose citizens’ median ages were respectively 44 and 43, while

the youngest are by ar the Irish, at “just” 34.

Europe is getting older…

On the plus side, lie expectancy hasbeen increasing in an almost contin-uous and uniorm trend at the rateo 2-3 months every year: Europeanmen can now expect to reach arespectable 76 years o age, but theyare still outdone by women, with an

impressive average lie expectancyo just over 82. O course thesituation varies across memberStates: on average, French womencan condently expect to live to 85,

while their Romanian and Bulgariancounterparts wil l “only” reachthe age o 77. What’s even moreimportant, longevity is accompaniedby a rise in “healthy” years: up to acertain point old age does no longerautomatically mean rail health and

loss o autonomy and independ-

ence. This is o course a pre-requisiteor active ageing. Moreover, in acontext o rising lie expectancy, arise in healthy lie expectancy willhelp curb the increase in healthcosts associated with ageing. At the same time, the share o thoseaged 80 and above is rising ast. It is around 4% now, but will rise to12% in 2060. The growing shareo over-80’s will put a strain on theprovision o services or the elderly,

mainly health and long-term care.The share will be highest in Italy andlowest in Luxembourg and the UnitedKingdom.

“Lie expectancy is increasing whileEurope’s workorce is shrinkingand, in some Member States, thisis happening very ast. We haveto adapt our policies to promote abetter work/lie balance so parentscan have children while contin-uing to work, and we must design

policies to encourage Europeansto remain active longer,” saidEuropean Commissioner or Employ-ment, Social Aairs and InclusionLászló Andor, adding: “The EU’sEurope 2020 strategy provides theramework or eorts to increaseemployment and reduce poverty but to tackle the demographic challenge

we also need to anchor our priori-ties in areas like health, migrationand regional policies”.

Older but healthier

The thid demogphy epotidetifie the mi tedffectig the EuopeUio’ poputio

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… but fertility is rising

Skipping across generations, thereport also shows that ertility ratesin the EU continue to rise slowly. Theyincreased rom below 1.45 childrenper women to 1.6. However, or apopulation to be sel-sustaining, 2.1children per woman are needed.Fertility is one o the main drivers inpopulation change. Low ertility ratescontribute to population ageing andthe current levels o ertility in the EUactually mean that our population willstart decreasing in 2050-2060. Thepopulation in some Member States

is already shrinking due to the lowertility rates registered in the past.Interestingly, the report shows that the modest increase in ertility resultsrom somewhat unusual amily-building patterns: countries withewer marriages, more cohabitation,more divorces and an older averageage o women at childbirth tend tohave higher ertility. The increaseitsel is observed mostly in the Centraland Eastern EU Member States,

where ertility had dropped signii-cantly in the recent past. The highest ertility is in Ireland (just above 2children per woman) ollowed byFrance (just under 2). The lowest rates

are in Latvia, Hungary and Portugaljust above 1.3.

Fami l ie s themse l ves are a l soundergoing dramatic changes. Thenumber o marriages is decreasing

while the number o divorces andbirths outside marriage is on therise. There are now about oudivorces per every ten marriagesand more than one-third newbornsare born out o wedlock. There isa great disparity among MembeStates as to the age at which youngadults leave their parents home andstart to live independently or begin

their own amilies. The lack o jobsecurity and/or the perspective ounemployment can act as a deterrenhere and delay amily ormationThe biggest di erences amongMember States are ound in amilypatterns. In Romania and Lithuaniaor instance there are six marriagesper year per 1000 inhabitants. InSlovenia, just three. In Belgium, thereare three divorces per 1000 inhabitants every year, in Ireland and Italy

less than one. In Estonia, almost 60%o babies are born outside marriage(single women or non-marriedcouples) in Greece, only 7%.

Enabling immigrantsto play a full role in society

Popu la t ion growth in recen years has been mainly uelled bymigration. A study on the impaco migration since 1960 has shown

that it has had a major inluenceon the size and composition o theEuropean population. The populations o France and Germany

would be each more than temillion smaller i there had been nomigration; conversely, Portugal’s

would have been more than twmillion bigger.

The integration o immigrants acrossgenerations happens rather quickly ©

1 2 3 R F

The EU has registered a modest increase in fertility rates

Fertility ratesin the European Union

1980 1990 2000 2003 2009EU-27 - - - 1.47 1.60BE 1,68 1,62 1,67 1,66 1,84BG 2,05 1,82 1,26 1,23 1,57CZ 2,08 1,90 1,14 1,18 1,49DK 1,55 1,67 1,77 1,76 1,84DE - - 1,38 1,34 1,36EE - 2,05 1,38 1,37 1,62IE 3,21 2,11 1,89 1,96 2,07EL 2,23 1,40 1,26 1,28 1,52ES 2,20 1,36 1,23 1,31 1,40FR 1,95 1,78 1,87 1,87 1,98IT 1,64 1,33 1,26 1,29 1,42

CY - 2,41 1,64 1,50 1,51LV - - - 1,29 1,31LT 1,99 1,03 1,39 1,26 1,55LU 1,50 1,60 1,76 1,62 1,59HU 1,91 1,87 1,32 1,27 1,32MT 1,99 2,04 1,70 1,48 1,44NL 1,60 1,62 1,72 1,75 1,79 AT 1,65 1,46 1,36 1,38 1,39PL - 2,06 1,35 1,22 1,40PT 2,25 1,56 1,55 1,44 1,32RO 2,43 1,83 1,31 1,27 1,38SI - 1,46 1,26 1,20 1,53SK 2,32 2,09 1,30 1,20 1,41

FI 1,63 1,78 1,73 1,76 1,86SE 1,68 2,13 1,54 1,71 1,94UK 1,90 1,83 1,64 1,71 1,96

Source: Eurostat



In most countries with a substantialproportion o second-generationimmigrants, these perorm muchbetter than the newly arrived bothin education and on the labourmarket, and almost as well as thoseo no oreign descent; this applies todescendants o citizens rom other

Member States and o immigrantsrom non-EU countries. Nevertheless,even ater three generations – thetime it takes usually or ull integra-tion – the descendants o migrantsmaintain some attachment to thecountries o their ancestors, throughtheir knowledge o oreign languagesor example. The main challenge,according to the report, will be tourther improve the conditions ortheir integration, to allow them to ulltheir ambitions and to give them the

opportunity to contribute ully to theiradoptive societies. Through improvededucation and employment levels,migrants and their descendants willbe able to dampen the eects o theuture decline in Europe’s working-age population. To give an example,in France among those born outsidethe EU 43% o the women and 36%o the men aged 25 to 49 have alow level o education (ISCED 0-2,or lower secondary at most); among

those born in the EU rom parentsborn outside it, the share goes downto 25 and 29% respectively; with onlyone parent born in the EU, to 21 and18% - the same level as those whoare not second generation migrants.In Belgium, this convergence at thesecond generation is much slower

and children o migrants retaindiiculties. Similar outcomes applyto the labour market. But migration isalso changing. Large-scale migrationand mixing o cultures are clearly not new phenomena in the history o theEU. Past fows have had a dierent impact on the size and structure o thepopulation in most EU-27 MemberStates, and they have contributed toa more European outlook among itscitizens. Immigrants oten want tomaintain a close attachment to their

country o origin, but these links tendto weaken over time.

Borderless Europeans

Alongside traditional long-termmigration, new orms o mobility aretaking shape. Europeans move moreoten than beore and or shorterperiods. Increasingly, this ormo mobility is based on personal

preerences and lie choices, andnot only on economic opportu-nities. I t involves mostly youngpeople, well educated and at thehigher end o the occupationalscale. It goes without saying that theincreased propensity o Europeansto move across borders can greatly

benet the EU by enabling a bettermatching o skills and languageability with job opportunities. Theresults o a recent Eurobarometersurvey point to a growing numbero mobile young people character-ised by a common interest in lookingbeyond national borders. As theymove abroad and return home, theycreate connections and disseminateknowledge and experiences. Most o this mobility is short-term andhas little negative impact on any

populations. It is precisely the type o mobility intended by the EU when it created its policies o ree movement

within i ts borders. The surveyshows that one in ve o the EU-27respondents has either worked, orstudied in another country, lived witha partner orm another country orowns property abroad. One in teno the respondents plan to move toanother Member State in the next ten years.

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Half of young Europeans would like to work in another EU country



When Abshir Abukar started

working in one o thelargest garden centres

in Sweden, he did not know muchabout plants or tools and he waseven allergic to pollen. But he learnedquickly and now has a varied rolethat involves managing stock, helpingcustomers and working in a team. In

act, it has proved a great role or the25-year-old.

Abshir was 17 when his amilymoved to Malmö in Sweden romEthiopia in 2002. As a sociableand lively individual, he wantedto get involved in lie in his newlcountry, but ound it dicult at rst.“It was a real culture shock,” hesays. “Everything was dierent rom

what I had imagined and I elt likean outsider. A lot o things were

conusing.”

He went to a language school to learnSwedish and his ather, a teacher

who had moved to Sweden ve yearsbeore the rest o the amily, wantedhim to continue with his studies. “But I didn’t want to. I would have had tostart the education system rom thebeginning,” says Abshir. “It causedtension between us.”

He wanted to be independent andstand on his own two eet, “But I didn’t know how to get a job or anythinglike that,” he says. He picked up somecasual work cleaning and was a careassistant or handicapped children.“I did that or two and a hal yearspart-time, but I wasn’t earning enoughmoney,” he recalls.

Not having any stable work, hecould not aord to move out andget a place o his own, and with 10

younger brothers and sisters, lieback home was crowded. “I also got a girlriend at this time and I wantedmore space,” he says.

Learning valuable skills

A programme or young people, NewCity, helped him change his lie. Run

by a local community organisation,Drömmarnas Hus, and co-undedby the European Union through theEuropean Social Fund, the project provides advice, training, culturaland sel-development activities orpeople who are not ully integratedinto society.

Through the programme, Abshirgot training or work and lie skills

and learned how to present himselHe also obtained a work experience placement at the garden centre

which led to the oer o a permanenposition. “I really like my job, “hesays. “Especially helping customerand working as part o a team.”

A place of his own

He was able to get his ownapartment and he has learnt tobecome more independent. “Manythings are dierent now because othe course,” he says. “I have my ownplace. I also got a driving licenceand I have my own car.” Outside

work, he has an active social lieSports and dancing are his passionshe plays ootball regularly andpractices salsa up to three timesa week.

Abshir is now satisied with hilie. “And I also get on much bette

with my parents. Even my ather ihappy.” The security he has gainedthrough getting a permanent jobmeans Abshir can plan or the utureHe and his girlriend, Shanka, areplanning to get married next year“And then I want to start a amily. Abig one,” he says.

ESF in Sweden –Standing on one’s own two feet

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FrEEMOVEMEnT


May 1st 2011 is an important date or the EuropeanUnion. In 2004, the EU saw

its biggest expansion ever: ten newcountries joined, bringing the numbero Member States rom 15 to 25. Seven

years later, the transitional arrange-

ments put in place by the15 originalMember States (EU-15) in order torestrict the access o workers romeight o the new members (that is allexcept Malta and Cyprus) come to anend. This date marks a signicant steporward: ree movement o workers isone o the undamental reedoms o EUmembership and now it applies ully to

workers rom the Hungary, the CzechRepublic, Slovakia, Slovenia, Poland,Latvia, Lithuania and Estonia.

The transitional arrangements haveserved their purpose. They wereintroduced to allow Member States totake on EU law on the ree movement o workers gradually so as to avoid anylabour market disturbances through asudden infow o jobseekers. Beore the

2004 enlargement, many governments were concerned about a massive infuxo workers rom the EU-8 countries,earing this would have a negativeimpact on jobs and push down wagesin the EU-15.

As a consequence, the labour marketso EU-15 countries have opened toEU-8 workers at dierent moments.Some Member States (UK, Ireland andSweden) opened their labour markets

Workers from eight moreEU countries to enjoy fullfreedom of movement

Titio gemet imitig cce to boumket to woke fom ome Membe stte hvecome to ed

Next steps for EU-2:Bulgaria and Romania

Bulgaria and Romania are EUMember States since 1 January2007. As or the 2004 Member

States, the transitional arrange-ments apply or seven years: until31 December 2013 at the verylatest. As a matter o act, the EUcountries which impose restric-tions on the right o Bulgarianand Romanian nationals to workthere must lit these restrictionsby 31 December 2011 unlessthey inorm the Commission o serious disturbances in theirlabour markets.

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immediately rom 1 May 2004 andreceived large infows o workers romEU-8 countries. The other MemberStates opened their labour marketsgradually, mainly during 2006 and2007. EU-8 workers have thereorealready been ree to work (without needing work permits) in most EU-15Member States or several years now.

The Commission does not thereoreexpect a new massive wave o workersmoving rom EU-8 to EU-15 countriesater 1 May, especially against thebackground o a limited labourdemand (since most labour markets

have not yet totally recovered romthe economic and nancial crisis).Theend o the transitional arrangements

will impact more on Germany and Austria, the two Member States that maintained substantial restrictions onree movement o workers during theentire seven year transitional period.

According to estimates rom theFriedrich Ebert Foundation, the net fows o nationals rom EU-8 countries

(i.e. the Member States that joined in2004 except Malta and Cyprus) toEU-15 Member States could be around200,000 per year in 2011-2013,decreasing gradually to 150,000 per

year in 2015 and less than 100,000per year in 2020. It is much lowerthan the level reached in the years2006-2007 (around 350,000 per

year). I those orecasts are conrmed,the total stock o nationals rom EU-8countries living in EU-15 Member States

will increase rom the current 2.4 million

to 3.3 million in 2015 and 3.9 millionin 2020 and their share in the totalpopulation rom currently 0.6% to 0.8%in 2015 and a bit less than 1% in 2020.

Beore the 2004 enlargement, manygovernments were concerned about amassive infux o workers rom the EU-8countries, earing this would have anegative impact on jobs and push down

wages in the EU-15. However historyand experience proved that most o

these ears were unounded.

On the contrary, the ree movement o workers has had positive impact on theGDP o the host countries in the short and long-term. No serious negativeeects on their labour markets havebeen observed. The ear o socialdumping has not materialised either:east-west mobility lows observedduring the period 2003-2007 orexample, had hardly a noticeableimpact on wages in EU-15 countries inthe short-term and no long-term impact at all. The eect on unemployment hasalso been negligible.

Figures show that cross-border labour

mobility is sel-regulating and dropssigniicantly in times o economicdownturns. The 2008 economiccrisis saw a decrease in the fows o

workers rom the EU-8 to the EU-15countries (in particular to the UK andIreland) simply because ewer jobs

are available. There is also evidencethat migration fows can turn with theeconomy, like the East German workers

who are now travelling eastwards toPoland in search o work, as Polandavoided recession and continuedto see growth these past years. Thebottom line is that people only go to

where there are jobs. Various studieshow that, in the uture, migration isnot expected to increase massivelyeither, as the biggest part o estimatedmigration rom EU-8 to EU-15 countriestook place between 2004 and 2010.

The possibility to work in anothe

Member State is a undamental righand reedom, but it’s also an importan way to raise employment across thEU. I we are to reach the Union’s 75%employment target by 2020, Europehas to take ull advantage o thisopportunity.

EURES: Latvians interestedin working in Germany on the rise

On 1 May Germany and Austria became the last two countries to lit

their restrictions on workers rom Eastern and Central European countries which joined the EU in 2004. The end o the transitional rules on labourmobility creates new opportunities or workers to nd a job abroad and oremployers to recruit without asking or a work permit.One example o this can be ound in Latvia, where the number o people

contacting EURES Advisers about job opportunities in Germany has morethan doubled in the rst three months o 2011.“There are a number o reasons or this increase. Germany opened thelabour market or seasonal job vacancies as o 1 January 2011. Wereceived several job vacancies rom EURES Germany. Some o these

vacancies are still open,” she adds.“Some Latvians who have ound their own jobs in Germany also wanted

more detailed inormation on living and working conditions, as well associal security and tax rates.” According to EURES data, the most popular sectors attracting workersincluded: agriculture (51.6 %); construction work (11.2 %); hotel andcatering (9.3 %); manuacturing (7.9 %); and health and social care (6.9 %).“Between January and March this year the average number o individualconsultations per month or people interested in opportunities in Germany is66. This compares to 30 in the same period o 2010,” says Ivonna Deisone,EURES Manager in Riga, Latvia.So ar 197 people have received such careers advice. This represents 31.6%o the total number o consultations.



New Commission actionto create jobs for the young

Youth@Work is a new actionto combat youth unemploy-ment. It aims to do this through

increasing demand or young peopleamong business, especially smalland medium size entreprises (SMEs),

bringing about more contact between young people and SME employers,and encouraging young people tobecome entrepreneurs and start theirown businesses. SMEs are a keyemployer in today’s labour market, yet they are oten not the rst sector that

young people look to when searchingor work. Equally SMEs are not alwayskeen on employing young people dueto their lack o skills and experience

which can result in them missing out on a large pool o potential talent.

Youth@Work will bring together SMEsand young jobseekers and provideinormation and support to encouragethem to think dierently. It aims toalso inspire young people to createtheir own jobs by starting a business.The number o young entrepreneursin Europe is currently low with only2.5 % o sel-employed people inthe EU aged under 25 years old, yet a recent survey shows that young

people are more interested in starting

their own businesses compared toolder people. Youth@Work will tryto tap into this enthusiasm and give

young people the inormation andskills they need to make this a reality.

A crucial actor in the action’s success

will be intermediaries who can bridgethe gap between young people andSMEs, such as the European Employ-ment Network EURES and the PublicEmployment Services which exist ineach EU Member State to provideinormation and advice to jobseekersand employers. To reach these goals,practical sessions or workshops ontopics such as networking, mentoringand recruitment will be organised at job airs throughout the EU. Inorma-tion, including examples o eective

projects or useul tools, will also beproduced and distributed. This newaction supports the EU’s Youth onthe Move initiative which aims toenhance Europe’s education systemsand support young people’s entryinto the labour market. Youth on theMove is one o the fagship initiativesrom Europe 2020, the EU’s growthstrategy or the coming decade,

which aims to help the EU become‘a smart, sustainable and inclusive

economy’.

Youth@Wok eek to bigtogethe youg jobeeked the wod of m buie

Youth employmentin the EU

There are currently around ivemillion unemployed young peoplein the EU. At the beginning o the economic crisis in early 2008there were around our million15 to 24 year-olds out o work, sothe downturn has resulted in anextra one million young peoplebeing unable to nd a job. Thiscorresponds to around 20 % o the total number o young peoplein the labour market. Youngpeople in all EU Member Stateshave been aected by the risingunemployment rates rom 2009to 2010. The situation is particu-larly worrying in some countries,

with unemployment among youngpeople now exceeding 30 % inLithuania and 40 % in Estonia,Latvia and Spain.Data also shows that youngpeople with low skills are beinghit hardest by the crisis, withan almost 8 % rise recordedcompared to the beginning o 2008. Conversely, high skilled

youngsters are seeing the least impact. Young people who arenot in employment, nor in anyeducation or training, are alsoat risk i they are unable to gain

working experience or skills tohelp them nd employment duringthese dicult times.

EMPlOYMEnT

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Sheena Matthews is a tutoron a course training youngpeople as gym instructors and

sports coaches and preparing themor other activity-based careers. It ishard work, but 27-year-old Sheenais ull o energy and enthusiasm asshe talks about her job. “I really liketeaching. It’s great to see the students

transorming their lives by becomingmore active,” she says.

The course she teaches, Spoir t Teic, is a local training initiativeprovided by FAS (Ireland’s NationalTraining and Employment Authority)and co-unded by the EuropeanUnion through the European SocialFund. “The course gives studentsthe means to get a job in a leisurecentre and an international qualii-cation as a sports coach or itness

ins t ruc tor ,” says Sheena. Theprogramme can be tailored to suit the students’ preerences. “Thetraining has a high success rate, shesays. “About 90% get jobs in sports,leisure or activities.” I Sheena isan enthusiastic ambassador or thecourse, she has a good reason – aew years ago she was a student hersel . The nine-month course“totally turned my lie around”, shedeclares.

A direction in life

“I let school when I was 14 or15” she explains. “I had no idea

what I wanted to do. I never hadany direction or goals.” She tookon dierent kinds o employment,including waitressing, cleaning, and

working in a market. “I went rom job

to job,” she says, “bad job to badjob. And yet I was always a good worker. They wanted to promote me,but I knew I didn’t want to do that jobor ever, so I would always leave.”

Then she became pregnant at 18. As a single mother, Sheena becamereliant on welare payments tosupport hersel and her baby,Megan. It was hard personally as

well as inancially – she put on weight and suered rom post-natal

depression. “About a year aterMegan was born I decided to dosomething to change my situation.I didn’t want her to look at me asnothing,” says Sheena. “I wanted toset an example.”

Precious advice

E xe r c i s i n g an d p r o e s s i o n a lguidance proved to be the big

turning point. “I joined a gymand I did a personal development course.” She lost weight andher conidence grew. “I remembegoing to an aerobics class andseeing the instructor. She lookedgreat and she seemed so togetherI said to mysel ‘I want to do hejob’.”

It was Sheena’s instructor who toldher about the Spoirt Teic courseSheena enrol led and el t greabenei ts. Ater graduating, she

worked in gyms and as a dancinstructor, beore getting a job athe South Tallaght leisure centre

where the courses are based. She was initially working as a gym anddance teacher, but knew that shereally wanted to be a tutor on thecourse. She began covering o

other tutors. “I used to work 11days in a row. I used to be so tiredbut I really wanted to get a job asa tutor. I wasn’t going to give up.”Sheena’s experiences have taughher that she can change her lie“I’ve learnt how to set goals andgo ater them. My next step wouldbe to go to medical school,” shesays. “I know I can do it. Even i itakes a long time to do it, I’ll stick

with it.”

ESF in Ireland – Fit for work © E

u r o p e a n U n i o n



sPECIal FEaTUrE

Adapting to change –the EU approachto restructuring

Res t r u c t u r i ng – companyreorgan isa t ion , c losures ,

downsiz ing, outsourc ing,relocation, and so on – is widelyconsidered a necessary part o economic lie. It is, thereore, nothingnew. What is new is that while inthe past companies might have hadto restructure in order to adapt to aspecic event, like the introduction o a new technology or manuacturingprocess, today change no longerconstitutes a response to a speciccrisis. It has become permanent,

like the phenomena that underlieit - chie amongst them globalisa-

tion. What has not changed, bycontrast, are the consequences oremployees in the shape o job losses,collective lay-os and changes in

working conditions. In act, restruc-turing can cause major problemsor local communities. When, orexample, a car maker decides toshut down a actory, thousands o

workers can lose their jobs. Whenentire industries are restructured –such as coal mining – the impact on

the regions which rely on them orgrowth and jobs can be elt or years

to come. The EU is acutely awareo the negative eects restructuringcan have on society, businesses andthe labour market. Consequently, it has developed a number o specicinitiatives in to help Member Statesanticipate and manage change.It also provides support to thosenegatively aected. The articlesthat ollow take a closer look at thedierent initiatives and the issuessurrounding them.

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The Euope Commiio’ ew epot oetuctuig eek to fote cutue of poctiveticiptio d mgemet to hep Membestte de with ecoomic chged it coequece

Today, all economic sectorsace the permanent eects o economic change. They are

hit by various shocks, which maybe cyclical, structural or related toglobalization, and have an impact on the organization o companies, as

well as on the structure o the labourmarket. The European Commission haslong been aware o the social implica-tions o restructuring, and has made

several eorts to develop a proactiveattitude amongst stakeholders in theanticipation, preparation and respon-sible management o change. It hasalso developed a set o policies andinstruments to acilitate economic andsocial adaptation.

The main starting point is that economic change canno t bemanaged by preserving old practices.

I t requires the development ocommon approaches and modernpractices. This is the logic underlyingthe European Commission’s newRestructuring in Europe 2010Report . The report’s objective ito help combat passive and resistance practices and to generalisea proactive culture o anticipatingchange. It concentrates on the mosmodern, innovative and dynamic

Anticipatingchange

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examples related to the anticipation,the preparation and the management o restructuring processes.

The report describes the actionsdeveloped by the Commission anddetails the reasons why urther actionis needed in this eld. It covers multiplepolicy areas and a wide range o instruments, and demonstrates aneort o internal co-ordination that isall the more needed as restructuring isa complex and multiaceted phenom-enon that cannot be eciently dealt

with otherwise.

The report starts by examining themain recent restructuring develop-ments across Europe, ident i -ying recent levels o restructuring

and the numbers o jobs lost andcreated. It gives examples o initia-tives undertaken at company level topreserve employment in the context o the economic crisis; it looks at Member States’ responses to the crisis,including labour market reorms andthe widespread use o short-time

working in some countries, and it examines the role o industrial policyduring the crisis, ocusing in particularon the steel and automotive industries.

The EU also makes a range o unds available to Member Statesin order to support restructuring,and this plays an important role inhelping to anticipate and manage itsconsequences. The report examinesthe role o State aid to Member

States, including the Commission’spolicy response to the economiccrisis, the role o the European SocialFund (over 400,000 enterprises havebeneted rom its interventions andmore than seven million have beensupported by its unded actions) andthe European Globalisation Adjust-ment Fund (a total o 29 applications

were submitted to the Commission in2009 with an amount requested per

worker varying rom slightly above€ 500 to over € 15,700, with anaverage o €5,698), giving exampleso where the unds have succeededin helping manage restructuring andsuccessully adapt to change.

Within the EU restructuring actions arecarried out in the ramework o a body

o legislation consisting o a number o relevant directives. These deal mainly with the inormation and consultationo workers on changes that are likelyto aect them. Thereore, the report examines this ramework and alsolooks at the implementation o EU lawand the preparation o possible newinitiatives in this area.

In order to relect the changed andchanging environment in which the

Europe nds itsel, the report examinesthe challenges that the EU is likely toace in the coming years. They includeinding the necessary skills to allowthe European economy to remaincompetitive in the global market,dealing with the health consequenceso restructuring, coping with global

warming and climate change,including inding new and alterna-tive sources o energy, and adaptingindustrial policy to ensure that theEU can compete with its globalneighbours.

Anticipedia -all about economic

restructuring in the EU

Launched by the EuropeanCommission in 2010, Antici-pedia is a collaborative websiteentirely devoted to industrialrestructuring. It is open toanybody interested in this topic,

whether proessionally or out o curiosity, and relies on its

users or most o the inorma-tion it contains. It consists o adocuments library, a discus-sion orum, and a “wiki”

where users can collaborateto drat joint documents. Userscan read, rate, comment andtag documents. They can alsoupload documents or otherusers to see. All the content is ree or anybody to see, but users need to log in to partici-

pate actively. The purposeo Anticipedia is to providea platorm where interestedparties can ind documenta-tion about restructuring, discussproblems related to restruc-turing and work together onprojects linked to restructuring.“Restructuring” in this context means changes in companystructures that are accompaniedby job losses, such as collec-tive lay-os, site closures, orbankruptcies. Such processescan be made less painulby policy measures basedon adequate oresight. Thisoresight is generally reerred toas “anticipation”.

Anticipedia: https://ec.europa.eu/employment_social/anticipedia/

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E v e n w i t h t oday ’ s h i ghunemployment, job vacanciespers is t on the EU labour

market. This is partly due to the

changing job market which is callingor new skills which many peopledo not have, and the act that those

who have the skills ind it diicult togain access to the labour market —or instance because their skills arenot recognised.

Within the Europe 2020 Strate-gy’s lagship New Skills and Jobsstrengthens the need to reduce thisgap and help workers adapt tochanging labour markets through

comprehensive skills agenda. It callsor the need or a skilled workorce,or massive investments in improvingskills and competencies to tap intothe talent which is there already orpotentially. This isn’t just a quick-ixor the short-term, but is also alonger-term challenge, becausecurrently 80 million citizens onlyhave basic skills – i.e. do not meet the basic requirements or entry intothe labour market, and by 2020,

55% o jobs will call or medium tohigh skills.

Where do we start? We need to

really understand those who arenot part ic ipating in educationand training and understand whythis is so. Why are the incentivesor individuals to participate not

working? Why are incentives orcompanies to train workers so ew?

Why is support and guidance toencourage workers to engage intraining insuicient? Equally wemust seek to comprehend whyrecognition o non-ormal learning is

virtually non-existent. Only then can

we develop strategies and incentivesto support people to participate inthe right education and training at the right time o their lives that willhelp them cope with changes and,o course, develop eective meanso unding, given current budgetaryconstraints.

Under the agenda New Skills and Jobs, the Commission is preparingEU-level proposals on these issues

in conjunction with the MembeStates. There is a clear need obetter labour market and skil lsinormation. A ew examples in the

pipeline include the development oan EU skills Panorama: A one-stopportal to access all the availableinormation to support proessionaguidance towards sectors, occupations, skills where there is a growingdemand rom the labour markeand to lag up where educationand training providers need toupdate their curricula. To ensurethat the education and trainingsystems provide the right mix o

skills the Commission is exploringa new benchmark on educationor employabil i ty. Through thedevelopment o surveys the needso employers and workers will bebetter understood. Finally, in ordeto acilitate the recognition o nonormal learning, the Commission ispreparing drat Council Recommendation on promotion and validation o non-ormal and inormalearning.

What is clear is that working ico-operation/partnership to ensureeective investment in skills development that supports positive changemanagement i s paramount toachieving a smart, sustainable andinclusive Europe as set out in theEurope 2020 Strategy.

More inormation is availableunder: http://ec.europa.eu/social/newskillsornewjobs

The Euope Commiio wi

deveop ew ttegie dicetive to hep woke dptthei ki to chgig boumket

Tackling the skills gap ©




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Launched in 2005 as a platormor the exchange o ideas oncompany restructuring and the

beneits o proactive and positivemanagement o the change processes,restructuring orums involve both publicand private representatives. They play

an important role in helping unions,businesses and workers to conront thecurrent challenges. This is refected inthe choice o topics addressed in themeetings.

The Impact of FinancialInvestors on enterprises -

July 2010

The role o unconventional inancialactors, such as private equity investors,

hedge unds and sovereign wealthunds, in initiating industrial restructuringhas considerably grown. Althoughsome o these actors have been aroundor a long time, in recent years theyhave reached a size and importance

which allows them to signiicantlyinfuence industrial restructuring. Yet thepolicy consequences o this develop-ment remain insuiciently explored.The Forum also looked at the potentialo employee inancial participation.

Indeed, employees are an otenoverlooked potential source o capital,providing both a stable ownershipstructure and an alternative to outsideinvestors, whether traditional orunconventional. In addition, employeeinancial participation has obviously

a signicant impact on issues such asemployment numbers and conditions.

Anticipating and managingrestructuring in a sociallyresponsible way - Newpartnerships to preserveemployment - October 2010

The main objective was to debate withthe social partners, the Member Statesand the EU institutions the way in which

the EU, Member States, social partners,companies and workers should ace thechallenge o corporate restructuring inthe context o an economy in deep andquick transormation and with a view toensure that restructuring takes place ina socially responsible way and benetsto employment.

A series o workshops presents the mainindings o each o the twenty-sevennational seminars organized by the

Commission in the last year-and-a-hal and which analysed and debatedthe measures and instruments used or

anticipating and managing restructuringin the 27 EU Member States.

Investing in well beingat work - Addressingpsychosocial risks in timesof change - November 2010

Restructuring can create opportunitiesbut it also puts mental strain on those

who are aected, the “victims”, but

also the “survivors”. Restructuring at the workplace can have a proound impact on health. Understandably, this concernis oten overshadowed by immediatematerial concerns. But new researchevidence shows that neglecting thehealth side o restructuring comes at ahigh price or workers, the organisa-tion and or society. In many Europeancountries, changes in the world o

work have come to be discussed asa risk or the psychosocial health o

workers. In the European Union, we

have instruments to protect workers’health and saety. The FrameworkDirective or Occupational Health andSaety ensures a preventive approachbased on risk assessment that alsoinvolves psychosocial actors. Buildingon this, the social partners haveagreed and implemented a Europeanramework agreement that providesan action-oriented ramework onidentiying, preventing, and managing

work-related stress.

The EU etuctuig foum big

tkehode togethe to yediffeet pect of chge

Talking therapy



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i S t o c k

Wh e n t h e E u r o p e a nGlobal isat ion Adjus t -ment Fund (EGF) was

es tabl ished in 2006 i t s mainobjective was to give the EU anins t rument to show sol idar i ty

with workers who had lost their workplace as a consequence o changes in world trade patterns,supporting redundant workers byco-unding active labour market policy measures.

But in 2009 the severe economicslowdown brought with i t newdemands on the Fund, and adetermination by the EuropeanCommission to gear the EGF morespeciically towards responding tothe economic crisis. This resultedin several changes in the Fund’srules, some o a permanent natureand others time limited and directlyrelated to the crisis.

The duration o the EGF support waspermanently extended to 24 monthsollowing the date o application,to ensure that the aected workerscan be assis ted with the most appropriate and eective measuresor their reintegration into newjobs. At the same time the eligibilitythreshold or EGF applications

was lowered rom 1000 to 500dismissed workers, enabling agreater number o cases to become

eligible and thereore also a greaternumber o redundant workers to besupported in their eorts to returninto employment. In addition tothese permanent changes, the scopeo the EGF was temporarily widenedto cover not on ly redundan-cies resulting rom globalisationmeasured in terms o internationaltrade, but also those deriving romthe inancial and economic crisis.

And the inancial contribution rom

the EGF was increased to 65% ototal costs, to take into account theemergency nature o the Fund’scontribution to supporting redundan

workers and to encourage MembeStates, already under budgetarypressure, to apply more readily oEGF unding. Since the temporaryderogation entered into orce, thenumber o workers supported bythe EGF increased by 60 % andour out o ive workers targeted oEGF support had lost their jobs oreasons directly related to the crisisThis temporary derogation expireon 30 December 2011.

In 2009 - in the eight monthsollowing the entry into orce o thenew rules - the number o applications received exceeded the total o

applications received in the previou28 months. Between 1 January2007 and 30 April 2009 (i.ebeore the crisis derogation enteredinto eect) the Commission received15 applications, targeting 18 430

workers or EGF support, whilbetween 1 May 2009 and the endo the same year the Commissionreceived 26 applications, targeting25 950 workers or EGF supportIn 2010, 31 applications were

received, targeting 29 507 workeror EGF support

The European Globalisation Fundhas clearly played a very practical

visible and meaningul role as acrisis intervention instrument, buits mission in this respect is not yeinished. The Commission is awareo the diiculties Member Statescan encounter - in this particularly diicult economic context - toprovide tai lor-made support to

large numbers o workers simultaneously made redundant as aresult o the crisis. The provision oswit and eective help will averpotentially disastrous consequencesin both human and economic termsThereore the Commission wilpropose to extend the temporary‘crisis derogation’ until the end o2013, i.e. until the time when thecurrent EGF Regulation must in anycase be reviewed.

EGF ctivity iteified coequece of the eceio

The EuropeanGlobalisation

AdjustmentFund adjustsitself to change



sOCIalInClUsIOn

A new guide published bythe European Commissionon 28 January will help

public authorities to understand andapply European Union (EU) rules to

social services o general interest.The “Guide to the application o theEuropean Union rules on state aid,public procurement and the internalmarket to services o general economicinterest and in particular to socialservices o general interest” attemptsto clariy the relevant European rulesand how to comply with them.

Experience has shown that i t is sometimes diicult or public

authorities and service providers inthe social ield to understand andapply the relevant EU rules to thesocial services they provide. Thisguide is the latest in a series o tools

put in place by the Commission inorder to help with this prickly subject.It builds on existing material, suchas the “Frequently asked Questions”documents based on questionsreceived through the online InteractiveInormation Service set up in 2007.

Using a question and answer ormat,the guide addresses a variety o topic,rom the denition o social services o general economic interest, or SGEI’s,

Social services of generalinterest and EU rules:

help is on the way a ew Commiio guideeek to povide guidceto thoe i chge of ogizig

d ficig ssGI’o how to compy with EUpocuemet d stte id ue

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n i o n

What is a social serviceof general interest?

No binding legal text denes social serviceso general interest (SSGI). Nevertheless,

we can consider that SSGI are activi

ties supplied by the public authorities orentrusted by them to private entities, to which missions o general interest areentrusted or the purpose o social protec-tion, social and territorial cohesion,national solidarity and implementation oundamental rights. Thereore, accordingto the Commission, SSGI all into two majorgroups, beyond health services themselves.These are:•Statutory and complementary social

security schemes organized in various

orms (mutual or occupational organi-zations) covering the main risks in liesuch as those linked to health, ageing,occupational accidents, unemployment,retirement, disability;

•Other essential services provided directlyto persons. These services, which playa preventive and social cohesion role,consist o customized assistance to acili-tate social inclusion and saeguardundamental rights.



to the instances in which state aid rulesapply to them.

The guide provides guidance on howMember States may nance serviceso general interest in compliance withState aid rules. It states clearly that the rules are not about imposing aparticular model o the organisationo public services, but about ensuringthat the unding provided does not go beyond what is necessary. It answers questions raised by variousstakeholders on the entrustment o services o general interest to externalproviders and on the calculation o the

compensation due to these providers.

The document urther explains that public authorities can use publicprocurement rules and, at the sametime, ensure quality, innovation,continuity and comprehensivenesso social services. It also claries theconditions under which the provisiono social services can be limited tonon-prot providers.

Finally, the guide provides speciicguidance on the application o theInternal Market rules, and o theServices Directive, to social services.It also highlights that the applica-tion o this Directive does not prevent Member States rom regulating, orrom continuing to regulate, socialservices in order to guarantee theiraccessibility and quality.

The guide also seeks to dispel somecommon concerns oten voiced bypublic authorities when it comesto applying EU rules on State aid,public procurement and the internal

market to social services o generalinterest. Sometimes public authori-ties – mainly local – which are most oten in charge o social services, andservice providers active in the socialeld tend to perceive EU state rulesas an obstacle to organising andnancing high-quality social services,or misinterpret them. For instanceit is sometimes wrongly assumedthat EU rules entail liberalisation,

privatisation or deregulation othe social services sector, that theyoblige public authorities to select thecheapest provider at the expenseo the quality o the service or thathey do not allow public authorities to inance service provisionadequately. But in act, as the guidemakes abundantly clear, where publicauthorities correctly apply EU ruleon State aid and public procurementthese rules can help them organisingand inanc ing good qua l i t ycost-eective social services.

The Commission hopes that the

new guide will help public authorities in the Member States better tounderstand and apply the existing EUrules so that they can reap their ulbenets. This is particularly importanas the public authorities responsible or organising and inancingsocial services o general interesare exposed to growing inanciaconstraints, making increasingeciency essential.

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Childcare services are a typical example of social services of general interest



As a result o mental illness,Georgia Chrisikopoulou, 36,has spent years in and out o

hospital in her native Coru, Greece.But since 2006, a ar-sighted rehabili-tation scheme has helped her moveout o residential care into her ownfat, and to start work. It is run by the

New Horizons Cooperative, co-undedby the European Union through theEuropean Social Fund (ESF).

Georgia is part o a team o gardeners tending the surroundingfower beds and lawns, all dressed ingrey overalls and caps. Her story isone o hardship and courage. At 12she was diagnosed with psychiatricproblems. By 17, she was pregnant,and attempted suicide. Despite herparents’ opposition, she let school,

got married, and went to live with herhusband’s parents. But the marriage

was not a happy one. The couplestarted to drink heavily and takedrugs, and he became violent.

In 2002, she was admitted to apsychiatric hospital, but her husbandcame to take her out. In 2005,Georgia inally realised that shecould not get better on her own: shereturned to hospital, and a year

later transerred to the rehabilita-tion programme. For six months shelived in a hostel at Thinalion. And inOctober 2006 she was well enough tomove to a protected fat with anotherpatient. She also started to work orthe cooperative’s gardening andenvironmental team.

“I love everything about the job. It haschanged my lie completely,” she says.“I have always enjoyed gardening – Ilike being close to nature.” A team o proessionals monitors her progress,and she can call or round-the-clockhelp rom her own doctor.

Cooperative approach

New Horizons has 70 employees,including 45 patients who work

alongside the other sta. Set up in2005, the cooperative has grown romten people to 183 voting members, 98o them patients. The governing boardalways includes at least two ormerinmates.

The environmental team has acontract with the local authority.Dmitris Vlachos, the team supervisor,is proud o the act that it oers aproessional and competitive service.

“Our customers are very happy withthe work,” he conirms. “We teachour sta to do a good job.” All the

workers have training – to handle thepower tools, or instance – and wearull saety protection. Georgia startsevery morning at 8 am, sometimestravell ing by minibus with her

workmates to more distant locations.She earns € 500 a month or our orve mornings a week, plus the support she gets through the health services,

while the fat she shares is rent-ree.

“We don’t tell clients that some o our workers are patients,” explainsThanasis Papavlasopoulos, a socialeconomy expert who helped to set upthe cooperative. “We don’t want anyo them stigmatised, and you wouldnd it dicult to tell who the people

with problems are. Ten o them arealready completely autonomous. Youcan see the dierence the ESF project has made in our years,” he adds. “In1997, there were 350 inmates in thehospital rom all over the island. Nowthere are only 15 beds, or absoluteemergencies. It’s real progress. Reinte-gration is the most important thing,and our main aim is to give people anopportunity to work and enable themto be independent.”

ESF in Greece – Georgia’s story

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Last summer, as we reported inissue 25 o Social Agenda, theEuropean Commission published

a Green Paper on Pensions. Its aim was to oster an EU-wide debateon the key challenges concerningpensions and on how the EU canbest support the eorts o MemberStates to ensure adequate, sustain-

able and sae pensions or itsc i t izens, both now and in theuture. The timeliness and interest o the initiative were conirmedby the success o the consultation:the Commission received almost 1,700 responses rom across theEU, including around 350 romMember State governments, nationalParliaments, business and tradeunion organisations, civil societyand representatives o the pensionindustry.

The initial results o the consultation were presented by EU Commissioneror Employment, Social Aairs andInclusion, László Andor at a meetingo European Employment and Socialaairs ministers in Brussels. “Theresults o this wide public debateare helping to shape our work onpensions,” he said. “The consultationPaper was clearly not just a statement - it has been echoed in national

discussions, helping to encourageand acilitate change.”

The general comments provided by therespondents were largely positive and

welcomed the Green Paper’s multi-dimensional approach as well as thecommitment o the European Union tosupport Member States.

But while all EU Member States acemajor challenges in the pension eld,notably due to population ageing,respondents generally elt that thereis no ‘one-size-its-all’ solution orpension policies and pension schemedesign, given the heterogeneity o theEU economies and diversity in thispolicy ield in the EU. At the sametime, because o the dierent circum-stances Member States nd themselvesin, the sharing o best practices, peer

reviews, collection o statistics and theidentication o indicators at the EUlevel are widely supported.

Some view avourably a deepeningo policy coordination and implemen-tation at EU level and the creation o a new platorm, a European PensionPlatorm, which would monitor allaspects o pension policy in anintegrated manner, in line with theapproach adopted by the Commis-

sion in the Green Paper. Howevera more common view is that thecompetence on pension pol icy

should remain at the Member Statelevel and that existing coordination rameworks, notably the OpenMethod o Coordination, but also thePension Forum and more broadly theStability and Growth Pact and theEurope 2020 strategy, are satisactory at the EU level. Nevertheless, alarge proportion o respondents elthat there was room or improvement within the existing coordinationstructures.

The main messages that emergedrom the public consultation relecthe Commission’s ongoing work, inparticular the main lines o the AnnuaGrowth Survey, which calls or ahigher retirement age, a reductionin early retirement schemes andthe development o complementaryprivate savings.

The results also showed that theGreen Paper’s approach and contri

bution to the pension debate wasbroadly welcomed, in particular itsholistic approach which considerboth economic and social aspects opension reorm.

The Commission now plans topresent a ollow-up white paper inthe third quarter o this year to seout proposals or EU initiatives onpensions to support the MembeStates.

amot 1700 epie gey

uppot Commiio’ ppoch

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1 2 3 R F

EU consultationon pensions – the results

sOCIalPrOTECTIOn



InTErnaTIOnal

Climate change and the needor our economies to becomegreener have become very

high on the policy agenda, both at

national, EU and international level.In its Europe 2020 strategy, theEuropean Commission proposes that EU policies be geared towards thethree overarching objectives o smart,sustainable and inclusive growth. Thisincludes promoting a competitive,low-carbon, resource-eicient andgreener economy.

The transition to such an economyhas signiicant implications in termso employment. On the one hand,

jobs will be created in sectors directlyrelated to the environment and thenew economic model, some requiringspeciic skills and competences. Onthe other hand, a more undamentalshit towards a greener economycould aect virtually all types o jobs,making environmental considerationspart o the daily work - much like theIT revolution that has created millionso jobs in the IT sector and at thesame time has changed the way most

o us work. Finally, jobs will be alsolost, which will require adequatelymanagement o transition and change.

There is thus a great interest ingathering inormation and analysingthe employment eects o the transitionto a greener economy. Nations andinternational organisations are increas-ingly aware o the situation and areacting to address climate change andto adapt their economies to a challengethat aects both our environment and our economies. In this context,international dialogue and coopera-tion play a central role. The EU hasproven its willingness to strengthen its

international engagement to addressthe climate change issue, includingin the eld o employment and socialpolicies. The European Commissionhas engaged in an active dialogue

with its main global partners, bothon a bilateral basis as well as in theramework o international ora such asthe OECD, the ILO and the G20.

On a bilateral basis, the Commis-sion recently launched talks with

non-EU countries such as China,the USA and Canada to discuss

and share policy approaches on ways to deal with the labour market aspects o the transition to a greenereconomy. These working meetingsbrought together representatives o governments, trade unions, industry,and non-governmental organisa-tions to share inormation about experiences, challenges, and best practices or preparing workersor an upcoming transition andensure they are well equipped to

be engaged in the green economy.The discussions addressed both theemployment and skills aspects o the transition to a green economyas well as the social dimension.

All these countries have activelyadopted climate change mitiga-tion policies and measures. The talksallow to highlight themes commonto all parties. First, the necessity oraccurate labour market inormationand vigilant planning to minimisebottlenecks between industry needs

and availability o skilled workorce.Partnerships between nationaland local stakeholders will also beimportant to help jumpstart the greeneconomy by identiying employment opportunities, implementing trainingpolicies, and promoting sustainablegreen economy investments. Finally it is important to promote green careerpathway opportunities or all workersto ensure that potential labour orcegroups are not underutilised.

Greeningthe global economy

EU egge i itetiodiogue o the empoymetdimeio of the gob titiotowd geee ecoomy

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OTHEr VOICEs

Restructuring is company-driven,ongoing and embeddedinto change process. It takes

place at dierent levels and involvesa larger number o actors thanthose belonging to the restruc-

turing company. We also know that it mustn’t be conused with massdismissals and their consequences

what entails to develop the antici-pation and management o restruc-turing in our elds where it remains

very weak: SMEs, agency workers,health and evaluation. In other

words, it is now possible to capitaliseupon the European experience andto ormalise a European method-ology or anticipation and managingchange and restructuring.

It is oten argued that the variousnational regulation and practices aretoo dierent to allow comparisons let alone cross border learning. Without underestimating the persistence o highly visible national traits in the eldo labour law and in the prevailinghiring and iring conditions in eachmember state, it may be shown that labour market policies and the mainadjustment drivers on the labour

market in Europe deine only threekinds o adjustment regime in thecase o restructuring: “administeredregimes”, “market-led regimes” and“negotiated regimes”. These workorceadjustment regimes and the tools,

settings and mechanisms they aremade o, are under the pressure o anew challenge: building an arrange-ment combining security and adapta-tion, and ensuring the progression o the workorce towards a knowledge-based society. They then evolve sinceactors promote innovations on theground and regulations change.

In that context every successulexperience is valuable but can it betranserred out o the country in which

it has taken place? Two things must betaken into account. First each “goodpractice” and the device mechanismor setting it reers to, is made o complementary elements whichinteract. Second, functional equiva-lents exist, that is: dierent elementso dierent devices may yield moreor less the same results in dierent contexts. It is then necessary to identiyunctions that have to be ulilled toanticipate and manage restructuring

and change beore trying to translategood practices rom the country in

which it has been set up to anotheone.

Regarding the unctions that have

to be ulilled, the hypotheses weare working on in the “Responsibility in Restructuring” project arethe ollowing. Three core unctionare needed to deal with restructuring: monitoring company restructuring processes; organising a aiand consistent transition or allorganizing local/regional redeployment in line with local/regionastrategies, and three core unctionare needed to deal with changedeveloping a multi-actor anticipa

tive orward-looking approach toeconomic trends and tendenciesdeveloping workers’ employabilityand developing a renewed industriapolicy or sustainable developmenand innovation.

Contribution by Frédéric BruggemanDirector, “Amnyos Mutation

Économiques”, Technical coordinatoo the project or the European

Vocational Training association

Fo good pctice to be uccefuy expoted to othecoutie, ceti bic equiemet eed to be fufied


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Capitalising on pastand present Europeanexperience to anticipateand manage restructuring



The latest European Commis-sion Demography Report confrms recent trends o longer lie expectancy coupled with a shrinking workorce.How should the EU adjust its policies to address this situation?

These indings are not a surprise,but the current crisis context andthe austerity policies make thechallenge all the more important. Thedemographic evolution is a challengeor the sustainability o our pensionsystems and or the elderly care. Forme, the rst answer is to return to ullemployment. It is also the priority weidentied in our report on the Commis-sion’s green paper on pensions.

The most visible development in the population is the rise o the oldest-old, i.e. those aged 80 and over. What are the implications or our societies?

Access to adequate health and careservices and digniied ageing areundamental or the European modelo solidarity. We have to devisesustainable inancing systems orlong-term care provision.

On Sept 9, 2010 the EuropeanParliament adopted a resolution onlong-term care or older people. It calls on Member States to support and acilitate the training and reinser-tion o persons, including inormalcarers, having long-term care respon-sibilities or older people. MemberStates should tackle poor payment o care work, shortage o personnelor inadequate training, which put a

strain on care provision. The resolutionasks the Commission to collect dataand to draw up in each MemberState a summary o care inrastructureor older people, be it institutional,community and home care and toestimate the needs until 2020.

The increasing demand or carers, who are oten in the remit o domestic work, increases the importance o thecurrent negotiations on ILO conven-tion on domestic work and the EP ullysupports the ILO and social partners.

The European year 2012 will bedevoted to active ageing. In the negoti-ations with Council and the Commis-sion, the EP has argued or aspects o solidarity between generations and the

ght against age discrimination to beincluded in this topic.

Data show a modest increase in ertility, stemming romunusual amily patterns: countries with ewer marriages, more cohabitation,more divorces and an older average age o women at childbirth tend to have higher ertility rates. What conclu-sions can be drawn?

The two chie causes o demographicchange – the alling birth rate andthe ageing o the population – arethe result o progress: increased lieexpectancy is the result o progress inscience, hygiene and living standardsand women’s control over theirreproductive lives is the result o theiremancipation and goes hand-in-hand

with higher levels o education or girlsand women’s participation in active lie

and public responsibilities; both shouldbe regarded as an irreversible benet.

But the average birth rate in the EUis not only a relection o women’schoice or o Europeans’ aspirationsor creating a amily. It is also linked tothe diculty o reconciling work with

amily lie (lack o child-care inrastruc-tures, social and economic support oramilies and jobs or women) and anuncertainty regarding the uture (lateaccess to employment or young peopleand job insecurity, expensive housing).

The report shows that Europe’s population growth is uelled mainly by immigration. What should the EU do to enable immigrants to play a ull part

in our societies and labour markets?

The path to integration, understood asopen, welcoming European societies,considering migration as an economicand cultural benet is still long.

I am particularly worried about themigration package currently discussedin Council and the EP, as it opens the

way or a ragmentation o the labourmarket. All third-country nationals

legally working in Europe should enjoy voting rights in local elections, equaltreatment with EU citizens in both workand the wider socioeconomic context.This equality is o mutual interest bothor airness and social justice and inorder to recognise the contributionmigrants make to the EU through their

work and the taxes they pay. With thecurrent proposals on the table, theirsegmented approach, exceptions andderogations, this is not the case.

InTErVIEWPervenche Berès,

MEP, Chair of the European Parliament Employmentand Social Affairs Committee


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Jump sttFour lives, our journeys. In this newcomic book Jump start, nd out how Alex,Nataline, Ivana and Dimitra managed tochange the course o their lives. Discoverhow these our Europeans took on anew challenge, thanks to the support they received rom the European SocialFund. Following the success o the comicbook “Take Two”, published in 2010 in23 languages, the European Commis-sion now brings you the second edition inthe series. Inspired by true stories, these

adventures are illustrated by our talentedcomic book artists — Maud Millecamps, Alexandre Teenkgi, Vanyda and You —and are based on a text by Rudi Miel. Thiscomic strip is available in all EU ociallanguages.

Catalogue No.: KE-32-10-446-EN-C

Euope Empoymet Obevtoy -Youth empoymet meue, 2010

Young people have been hit hard by theeconomic downturn with the EU youthunemployment rate reaching 20%. Thisreview summarises messages rom 33national articles on this theme, linkingthem to policy developments, studies anddata. It details the European and nationalcontexts beore examining measures topromote youth employment. These covereducation, training, labour market andbeneit policies, as well as measures to

address problematic aspects and labourmarket actors’ roles. Following this, nalconclusions are drawn. This publicationis available in printed ormat in English,French and German.

Catalogue No.: KE-AZ-10-002-EN-C

Copote soci repoibiity -ntio Pubic Poiciei the Euope Uio

Corporate Social Responsibility (CSR) isa well-established concept within the EUagenda, and although complex, infuencesa number o policy areas. This compen-dium o national public CSR policies inthe EU identies eight topics which refect current CSR priorities and trends. Sectionsare included on socially responsiblesupply chain management, reporting and

disclosure, and urther chapters explorethe potential o CSR in areas such asclimate change, small and medium-sizedenterprises, socially responsible invest-ment, education and public procurement.This document provides a timely update onmain Member State CSR priorities and willinorm the Commission’s uture work. Thispublication is available in printed ormat in English, French and German.

Catalogue No.: KE-31-11-095-EN-C

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European Employment Observatory Review

ISSN 1831-9750

Recent publications

To order these publications, please contact:European CommissionEmployment, Social Aairs and Inclusion DGInoCentreB-1049 Brussels

Uefu webiteThe website o Commissioner Andor: http://ec.europa.eu/commission_2010-2014/andor/index_en.htmThe home page o the Commission’s Directorate-General or Employment, Social Aairs and Inclusion: http://ec.europa.eu/social/The website o the European Social Fund: http://ec.europa.eu/es

Source: http://ec.europa.eu/social/main.jsp?catId=737&langId=en&pubId=5969&type=1&furtherPubs=no

http://ec.europa.eu/social/main.jsp?catId=737&langId=en&pubId=5969&type=1&furtherPubs=no

http://ec.europa.eu/social/main.jsp?catId=737&langId=en&pubId=5969&type=1&furtherPubs=no

adapting to change: the eu approach to restructuring (social agenda issue nº 27-july 2011)

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