Nicolas Schmit sets out the Council's position on the issue of precarious employment during a debate in the European Parliament - Hoofdinhoud
Nicolas SCHMIT Minister of Labour, Employment and the Social and Solidarity Economy, EP President Martin SCHULZ i, Strasbourg, 9 September 2015
On 9 September 2015, the Minister for Labour, Employment and the Social and Solidarity Economy, and President of the Employment, Social Policy, Health and Consumer Affairs Council (EPSCO), Nicolas Schmit, spoke on behalf of the Council of the EU at the plenary session of the European Parliament in Strasbourg, during a discussion on the EU labour market. In the presence of MEPs, the Luxembourg Minister was asked to respond to a question on precarious employment submitted to the Council by MEP Thomas Händel i (GUE/NGL).
By way of an introduction, Nicolas Schmit stated that while the recent economic and financial crisis had led to an increase in unemployment, it had also contributed to reduced social benefits and entitlement to these benefits, as well as an increase in precarious employment. "This has serious consequences for our economies, stability and social cohesion but also, ultimately, for the sustainability of our social protection systems", added the Minister.
However, while the possibility of paid employment for those who want it is one of the "basic values that govern our society", it is also a "key element of social recognition and participation in society", stressed the Minister, adding that the Treaties and the social market economy are synonymous with high quality employment.
The Minister then highlighted the fact that over the past few decades, industrial relationships had "diversified considerably" and had often deteriorated. This tendency has been further accentuated in the face of the crisis and has led to an increase in workers in a "long-term precarious situation", in so far as they are unable to find permanent contracts, he continued.
Even though 22 Member States have a minimum wage, it is "on its own no guarantee against poverty", he stated because "it all depends on the level of that wage". In addition, the objective of the Europe 2020 strategy to reduce the number of poor workers in Europe by 20 million has not been met, observed the Minister. In the context of the ongoing review of the Europe 2020 strategy, it is therefore necessary to "find new paths and new ways in which to achieve this objective".
"People in precarious employment often face low-quality jobs, poor wages, in-work poverty, job insecurity and vulnerability", declared the Minister, calling for a "comprehensive approach" in this field.
"We need to focus on different aspects to improve the quality of work, in particular, remuneration, adequate benefits and working conditions, occupational health and safety, and access to vocational education and training", he said. "Ultimately in Europe we must guarantee access for each worker to vocational training because it ensures career progression in line with labour market development", he noted.
To improve the quality of work for those in a precarious situation, it is also necessary to "fight against and prevent undeclared work", explained Nicola Schmit. He hopes that negotiations between the Council and the Parliament on the decision to set up a platform to fight against undeclared work will be brought to a successful conclusion "as quickly as possible". For the Presidency, the objective is still to reach a conclusion by the end of the year, announced the Minister, stressing that interinstitutional trilogue negotiations were held earlier this week.
Nicolas Schmit also highlighted "the crucial role" played by social partners. "Social dialogue should be encouraged at both European and national level", he stated, while preserving the right to conclude collective agreements.
The Minister then focused on the most vulnerable groups, i.e. young people and women. In that regard, Nicolas Schmit referred to the Youth Guarantee, the main recommendation of which is to guarantee that all young people below 25 years of age are offered high quality employment, ongoing training, and an apprenticeship or internship within four months of being laid off or leaving formal education. The Minister also spoke of a Commission Recommendation mentioning the abuse of internships, with certain Member States seeing the development of a true "internship generation". "Although certain Member States regulate [this practice], a consistent approach is needed", stressed the Minister.
With regard to women, Nicolas Schmit highlighted the fact that they are disproportionately represented in precarious employment. They are often most at risk of "working very short hours, being paid low wages and having limited access to benefits" not to mention their reduced pension entitlements, which "actually creates new sources of poverty", added the Minister.
In addition, the Minister for Employment who is also the Minister for Social and Solidarity Economy, stressed that the Luxembourg Presidency had made the social dimension one of its priorities, in particular by promoting this alternative form of economy. He announced that the Presidency will hold a big conference in that regard to be held in December and that it has the intention of submitting conclusions to the EPSCO Council of 7 and 8 December 2015 on promoting and strengthening the social and solidarity economy and social entrepreneurship.
Nicolas Schmit went on to observe that precarious employment was harmful for the economies of Europe, in that it "blocks opportunities for an entire generation of young people". "This could lead to a vicious cycle by increasing inequalities and by generating insecurity and instability", he pointed out.
Following the debate, the Minister put forward four ideas which he believes should be explored. First of all, "the need for genuine socio-economic governance which gives social and employment issues their rightful place and corresponds to the objective of a social market economy, as provided for in the Treaty". The next step is to amend the Europe 2020 strategy through "innovative approaches to boost the quality of employment, to fight against poverty and exclusion, and to facilitate training in all its forms", he said, stressing the "key role" played by social entrepreneurship in this context.
In the same way, the major technological developments of recent years, in particular digital technology, and their impact on the labour market, qualifications and skills should all "be taken very seriously", continued Nicolas Schmit.
Lastly, the Luxembourg Minister highlighted the fact that introducing competition between social systems without establishing basic rules will mark a shift towards "fewer social benefits" and he referred, in that regard, to Article 9 TFEU. Article 9 TFEU provides that "in defining and implementing its policies and activities, the Union shall take into account requirements linked to the promotion of a high level of employment, the guarantee of adequate social protection, the fight against social exclusion, and a high level of education, training and protection of human health". "Perhaps it is necessary to put this into practice", concluded the Minister.
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