MODERNISING LABOUR LAW TO MEET THE CHALLENGES
OF THE 21ST CENTURY (15725/06)
Letter from the Chairman to Jim Fitzpatrick
MP, Minister for Employment Relations and Postal Services, Department
of Trade and Industry
You EM on the above topic dated 11 December
2006 was discussed by Sub-Committee G at its meeting of 18 January
2007.
We are pleased to note that the Government will
be fully engaged in the debate launched by the Green Paper. We
look forward to an up-date from you following the informal Employment
and Social Affairs Council on 18 and 19 January and in advance
of the adoption of Conclusions at the Council of 31 May.
In the light of the obvious importance of this
dossier, the Committee is considering whether to launch an Inquiry
into the topic and Sub-Committee G will be in contact with you
about this in due course. Pending further information from you
on the debate in Council and the views of stakeholders, we will
hold the document under scrutiny.
19 January 2007
Letter from Jim Fitzpatrick MP to the
Chairman
Thank you for your letter of 19 January following
on from the EM on the above.
You requested an update on the Informal Employment
and Social Affairs Council of 18 and 19 January, which was expected
to address the Green Paper. Both the Secretary of State for Work
and Pensions, John Hutton and I attended that meeting and a formal
statement on the meeting was made to the House of Lords on 29
January by the Department for Work and Pensions Parliamentary
Under Secretary, Lord McKenzie (a copy is attached).
In the event the German Presidency decided not
to focus the Informal entirely on the issues raised in the Labour
Law Green Paper. The broader theme was "Good Work",
which is one of the focal points of Germany's current EU Council
Presidency. A Presidency discussion paper defined good work as
consisting of:
(b) protection against health risks at work;
(c) worker's rights to assert their interests
and to participate;
(d) family-friendly working arrangements; and
(e) enough jobs.
The paper highlighted a number of references
made to good work in the Green Paper and in other Commission documents
such as the Communication on the Demographic Future of Europe.
To facilitate the debate, the Presidency proposed
a series of questions for ministers to address:
1. Where and in what manner do you see for
your country and for the EU as a whole a particular need to act
to achieve the goal of good work:
— with wages?
— in asserting workers' rights?
— in protection against health risks at
work?
— in family-friendly working arrangments?
2. Should the Member States agree (much more
binding goals on the road to good work?
3. A variety of other forms of employment
has developed in addition to regular, unlimited employment relationships.
Do ministers agree that the regulary unlimited employment relationship
will also in future provide a legal framework that promotes:
— workers' motivation;
— further training; and
— reliable communication and participation
structures in the enterprise?
4. What concrete measures must be taken to
provide legal and social security to people working in the new
forms of employment or making transitions between different employment
situations and periods without employment?
Taking their cue from the German Presidency
paper, there was a wide-ranging exchange of views and national
experiences. There was no negotiation, nor agreements reached.
However the German Presidency prepared their own conclusions (attached),
which essentially reflected points raised in debate.
For the UK, I pointed to the importance of flexible
labour markets in stimulating job creation and higher employment.
I went on to say that while we encourage choice in ways of working,
only 6% of our work force was on a non-standard contract. I also
make it clear that all workers had certain basic rights. John
Hutton was one of the eight keynote speakers in the afternoon
session. He said that the best way to manage insecurities was
to provide employment security through equipping people to manage
and take advantage of change and warned against protectionism
and over-regulation. In both our interventions, we stressed that
most of this work had to be done at the Member State level.
You also requested information on the views
of stakeholders. My officials are holding meetings with interested
parties during the ongoing consultation period. Areas of interest
that have emerged in the discussions have included agency workers
and the advantages of flexibility and choice to both employers
and workers. A number of business representatives have expressed
concern regarding the possibility of further employment legislation.
Stakeholders have been encouraged to make their views known formally
to the Commission and to engage with their European networks.
The Commission's consultation on the Green Paper
finishes at the end of March. The Commission will report soon
after on the views that have been gathered. At present, there
is no definitive indication that the Green Paper debate will result
in any new legislative initiatives. It is expected that the debate
will feed into ongoing work, such as that on "flexicurity".
As you are aware, we in Government are considering
the questions in the Green Paper and will respond in due course.
I will ensure that a copy of formal response is copied to the
Committee.
5 February 2007
Annex A
EXTRACT FROM
OFFICIAL REPORT
(TAKEN
FROM THE
PARLIAMENTARY WEBSITE)
29 JANUARY 2007,
HOUSE OF
LORDS, COL(S)
WS4-WS6
EU: Employment and Social Policy Ministers' Meeting
The Parliametary Under-Secretary of State,
Department for Work and Pensions (Lord McKenzie of Luton):
My right honourable friend the Secretary of State for Work and
Pensions (John Hutton) and my honourable friend the Minister for
Employment Relations and Postal Services (Jim Fitzpatrick) represented
the UK.
The theme of the informal was "Good Work—more
and better jobs", which was discussed in two plenary sessions.
My honourable friend Jim Fitzpatrick participated in the morning
plenary stressing that the real outsiders were the unemployed.
He went on to say that if Europe is to remain competitive in a
global market and continue to afford valued social protection
systems, flexible labour markets are needed both for workers and
employers to stimulate job creation and encourage more people
into work. One size does not fill all and member states have to
develop approaches that work for their own labour market structures
and traditions. But overly restrictive employment legislation
risks a two-tier labour market and more jobs in the illegal sector.
Effective, light-touch employment legislation is consistent with
job creation and more permanent jobs. For example, in the UK,
while we encourage choice in ways of working, only 6% of the workforce
is on non-standard contracts; all workers have certain basic rights.
My right honourable friend Mr Hutton was one
of eight keynote speakers in the afternoon session. He said that
the best way to manage insecurities was to provide employment
security through equipping people to manage and take advantage
of change rather than through protectionism and over-regulation.
This could be done by providing insurance in the broadest sense—through
active labour market policies, skills and re-training, and the
right labour law framework. Most of this work had to be done at
member state level, but in the context of our shared European
values. Even well functioning labour markets could have groups
of vulnerable workers but it should not be assumed that this was
due to their employment status alone.
All member states broadly agreed on the importance
of high levels of health and safety at work. There was a strong
emphasis on the social dimension of Europe, including, from some
quarters, calls for an EU minimum wage, minimum standards for
workers on "atypical contracts" and a European definition
of a worker, although others continued to emphasise the primacy
of meeting Lisbon targets and made it clear that social issues
were for member states to decide. They also underlined the important
role of social partners, of work-life balance, of life-long learning,
of a greater emphasis on skills and training, better childcare
facilities, and promoting gender equality. Most member states
agreed that it was up to them to lead on social issues, although
the EU could provide added value by exchanging best practice and
a general framework. The other recurring theme was that, with
increased mobility of workers and free movement, member states
had to co-operate more closely.
The German presidency concluded that we needed
to look further at a number of issues, including the integration
of ethnic groups and minorities into the labour market, grey areas
such as bogus independent workers, and where the balance between
rights and responsibilities was; also, that part-time work could
be positive when it was what the workers wanted. But there were
concerns that increased temporary work created uncertainty for
employees where this was at the expense of permanent regular contracts.
Social policy was a national issue. The German presidency would
continue to try to define what the social dimension of Lisbon
should be.
Annex B
CHAIR'S
CONCLUSIONS DRAFTED
IN COOPERATION
WITH THE
TWO FOLLOWING
PRESIDENCIES PORTUGAL
AND SLOVENIA
Europe needs more and joint efforts to promote
GOOD WORK. GOOD WORK means employee rights and participation,
fair wages, protection of safety and health at work as well as
a family friendly work organisation. Good and fair working conditions
as well as an appropriate social protection are indispensable
for the acceptance of the European Union by its citizens.
The Ministers are of the opinion that greater
flexibility on the labour market has to be reflected in adequate
employee rights. This includes that employees can defend their
participation rights with the help of collective bodies representing
their interests. The Member States and the social partners bear
great responsibility for preventing that more labour market flexibility
will lead to a reduction of social protection for employees.
Fair wages are an important characteristic of
GOOD WORK. The Member States and the social partners are called
upon to ensure that wages are set in a fair and adequate manner
while safeguarding the national wage setting systems' characteristic
features.
Working conditions that promote lifelong learning
and the chance for further occupational education, modern and
staff-oriented leadership and work organisation as well as promoting
and maintaining health and occupational qualifications are the
key to corporate competitiveness and to the employability of especially
older employees. Corporate prevention and rehabilitation programmes
must become standard practice.
Regular employment relationships are indispensable.
They provide security and strengthen competitiveness in a sustainable
manner. The Member States are called upon to strengthen standard
working relationships in accordance with their national practice
and to limit their circumvention by atypical employment relationships.
New forms of employment types can facilitate
reintegration into the labour market. They must, however, not
be abused of for the purpose of excluding employees from their
rights. They must not lead to discrimination and exclusion.
Family friendly work organisation is an opportunity
to improve equal rights, competitiveness, health protection, income
security and coping with the demographic development. A family
friendly work organisation must be developed consistently.
Young people need security in their occupational
development and perspectives for their own future and the foundation
of a family. They need clearly defined framework conditions for
a good start in working life.
Wage replacement benefits and minimum security
for job seekers are elements of a social Europe that has made
the fight against poverty and social exclusion one of its central
priorities. The persons concerned must receive help from a well
balanced system of support programmes within the meaning of an
activating labour market policy, in particular in view of threatening
or actual unemployment. This approach combines support and demands.
Letter from the Chairman to Jim Fitzpatrrick
MP
Thank you for your letter of 5 February supplying
the information I requested when I wrote to you on 19 January.
This was considered by Sub-Committee G on 22 February.
We note the views that the UK Government put
forward at the 18-19 January information Employment and Social
Affairs Council meeting. In addition, we welcome the consultation
the Government is carrying out with stakeholders, and note the
issues which have already emerged from this.
As foreshadowed when I wrote to you on 19 January,
EU Sub-Committee G has now decided to carry out an Inquiry into
the issues raised by the Commission's Green Paper; and we will
therefore be retaining the document under scrutiny until that
has been completed.
A Call for Evidence for the Inquiry was published
on 8 February, with a closing date for written evidence of 30
March, and the Government's input to this will be most helpful.
We hope that you will be willing to visit a meeting of Sub-Committee
G to give oral evidence for the Inquiry; and the Committee Clerk
has arranged a time of 10 am to 11 am on Thursday 3 May for this
with Louise Stevens.
23 February 2007
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