część iii rynek pracy w gow

CZĘŚĆ III
RYNEK PRACY W GOW
Magdalena Knapińska
Akademia Ekonomiczna w Poznaniu
Katedra Makroekonomii i Badań nad Gospdarką Narodową
LABOR MARKET POLICY IN EUROPEAN UNION
The goal of the study is to present and evaluate labor market policy realized in the European
Union. There have been presented the principles of this policy which have been shaped over a
dozen years of the European integration. Moreover, there have been shown the basic
assumptions of the European Employment Strategy as well as the European Social Fund, the
main instrument for the implementation of the labor market policy at the level of the EU. The
knowledge of the assumptions and principles of the European labor market policy is crucial
for the integration of Poland with the EU and for the common creation of this policy.
The Principles Of The Labor Market Policy In The EU
One of the basic principles for the creation of the European Union is unification of
economic rules of the member states. According to Article 2 of the Treaty of Rome, it is a
task of the European Union to contribute to the harmonious development of economic life,
steady and balanced economic development, greater stability, faster growth of living
standards and tighter binds among the member states1.
There are several means designated to realize the above mentioned aims. Firstly, it is the
gradual elimination of the customs duties and of trade quantity limits among the members of
the Union. Secondly, there should be established a common customs schedule accompanied
by the implementation of common trade policy towards non-member states. Free mobility of
individuals, services and capital, namely the creation of common production factors market, is
aimed at integration of the members. This process should be reinforced by the introduction of
common agricultural policy, transport policy and maintenance of free competition on the
common market. Moreover, economic policies of member states should be coordinated to
help them maintain financial balance, high level of employment and price stability2.
Free mobility of workers is crucial as regards labor market and its policy. According to
articles 39-42 of the Treaty of Nice3, free mobility of workers within the Union is assured by
abolition of all forms of nationality discrimination as regards employment, earnings and other
1
L. Ciamaga, E. Latoszek, K. Michałowska-Gorywoda, L. Orężak, E. Teichmann, Unia Europejska,
Wydawnictwo Naukowe PWN, Warszawa 2002, p.19.
2
Ibidem, p.19-20. See also: Polityka gospodarcza, red. B. Winiarski, Wydawnictwo Naukowe PWN, Warszawa
1999.
3
Treaty of Niece was agreed at the summit of The European Union in Nice on 7-11 December 2000. It is the
latest set of changes of the Treaty on European Union and the Treaty establishing European Community used in
the current study.
Labor Market Policy In European Union
91
working conditions for workers coming from member states4. The mobility freedom gives
workers the right to accept employment offers, to move freely around the territory of member
states, to stay in a particular member state in order to be employed according to legal and
administrative regulations of that state, and, finally, to stay on the territory of the member
state once the employment period has been over, according to pre-established conditions5.
Although freedom of mobility was already written down in the Treaty of European
Economic Community of 25 March 1957 in Rome, it was determined in stages. The following
Community documents confirmed the entry on the mobility freedom, both the Single
European Act signed in 1986 and implemented on 1 July 1987, and the Treaty on European
Union of Maastricht, signed on 7 January 19926. The stipulation for the creation of common
labor market was sustained by the Treaty of Amsterdam, signed on 2 October 19977.
The period from September 1961 to May 1964 was the first stage of the liberalization of
labor market. At that time workers were required permissions of the target employment
country to work there. Having worked regularly for a year they could extend the permission
for the same work and for the same period of time. After three years migrating workers were
allowed to renew their work permissions for performance of all kinds of work related to their
skills, and after four years – for performance of any paid work. Thus, it took four years to
escape the discrimination of employees. In the meantime, the workers of the target state
nationality enjoyed employment preferences.
In the second stage of the labor market liberalization, comprising the years 1964-1968,
there was an improvement as regards freedom in the system of permissions. It was only after
two years of regular employment that immigrants from the Community states were allowed to
perform any jobs on the terms binding on local worker.
Finally, in July 1968 full mobility freedom of workers was realized. Workers coming
from other Community states were given the same employment access as local workers. Work
permissions were completely abolished, and to start working one needed only a stay
permission8.
Moreover, to improve the circulation of information on available work places in member
states in 1972 the European Commission established the SEDOC. Its basic aim was to create a
single system of work posts codification and transmission of data on available work places
among member states. This system was modified over the period of the construction of
unified internal market9.
In the chapter on the mobility of individuals of the Treaty of Nice, it was stated that
member states support exchange of young workers within a common exchange program10.
The Professional Training Development Center, seated in Berlin, was established for this
purpose. Moreover, Union Council issued a decision on general principles for the realization
of the common professional training policy, which focused especially on the problem of
training and employment of young people. The first common program only for the exchange
of young workers was prepared in 1964. Then, in 1967 the Commission issued a
recommendation on particular protection of young workers by member states, which was
4
Art. 39, Treaty establishing European Community, ref. to: Z. Brodecki, M. Drobysz, P. Majkowska, Traktat o
Unii Europejskiej i Traktat ustanawiający Wspólnotę Europejską z komentarzem, Wydawnictwo Prawnicze
Lexis Nexis, Warszawa 2002, p.181.
5
Ibidem.
6
L. Ciamaga, E. Latoszek, K. Michałowska-Gorywoda, L. Orężak, E. Teichmann, op. cit., p.15-17.
7
More on the Union documents refer to K. Głąbicka, Polityka społeczna w Unii Europejskiej. Aspekty
aksjologiczne i empiryczne, Dom Wydawniczy ELIPSA, Warszawa 2001, p.154-166.
8
J. Witkowska, Rynek czynników produkcji w procesie integracji europejskiej. Trendy, współzależności,
perspektywy, UŁ, Łódź 2001, p.27-28.
9
Ibidem, p.28.
10
Art. 41 Treaty establishing European Community, Z. Brodecki, M. Drobysz, P. Majkowska, op. cit., p.194.
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Magdalena Knapińska
systematically implemented in the yearsto come11.
Obviously, the labor market policy of the Community, concerning member states markets
as well as the common labor market comprised also a wide range of other activities as it was
written in the Articles 125-130 of the Treaty establishing European Union12, devoted to the
issue of employment. It is stated, among others, that member states act to prepare a
coordinated employment strategy, especially to support skilled, trained and apt at adaptation
labor force as well as labor markets reacting to economic changes as to achieve objectives of
European integration.
The Employment Strategy of The EU
Employment strategy was prepared at meetings of the Union Council in Luxembourg,
Cardiff and Köln. The meeting in Luxembourg was held in 1997 and focused on exchange of
efficient experiences on fighting unemployment. There were worked out guidelines which
were implemented since 1998 into the national systems as the National Action Plans13.
Following the summit there were determined the first Employment Policy Guidelines, and the
process of convergence in the field of employment was begun along with the realization
criteria for member states, which is at present called the Luxembourg Process. It introduced
supervision of realization of national actions for employment14.
The Luxembourg Employment Summit made simultaneously three key decisions, which
bind member states to implement national supervision procedures, transforming the intentions
of the Employment Policy Guidelines into the National Action Plans and preparation of
reports on their realization. Moreover, member states are obliged to create a management
system through goals by defining quantified aims for annual Employment Policy Guidelines.
The third decision enforced determination of approximate level (convergence) of the
employed in the working age population in Europe15.
Similarly, Employment Policy Guidelines were prepared after an analysis of previous
annual reports for 1999 and 2000. On 14 February 2000 the Council agreed on instructions for
member states concerning employment policy of member states16.
The meeting in Cardiff oscillated mainly around continuous growth of the new work
places promotion level. In Köln in 1999 there was passed the European Employment Pact,
and in March 2000 the extraordinary summit of The European Union in Lisbon was devoted
to the issues of employment, economic reforms and social cohesion17.
It is worth noticing that the employment policy of The European Union rests on four
pillars which were described at the Luxembourg Employment Summit in 1997. The first
pillar, employability, refers to improvement of quality of labor resources, which should lead
to increased ability to undertake work. The second pillar, entrepreneurship, means
development of entrepreneurship by creating motivation for self-employment and by
employment promotion via development of non-state social institutions at the local level18.
The third pillar, adaptability, is understood as improvement of adaptation abilities of
companies and worker. The fourth pillar, equal opportunities, concerns the assumption of
11
Z. Brodecki, M. Drobysz, P. Majkowska, op. cit., p.194.
Ibidem, p.312-316.
13
Ibidem, p.312.
14
Z. Wiśniewski, Niektóre aspekty europejskiej strategii zatrudnienia, Rynek Pracy 1999, nr10, p.12.
15
Ibidem, p.13.
16
Z. Brodecki, M. Drobysz, P. Majkowska, op. cit., p.312.
17
Ibidem.
18
P. Golinowska, Kompetencje Unii Europejskiej w dziedzinie polityki społecznej oraz polityki rynku pracy,
Polityka Społeczna 1999, nr10, p.21-22.
12
Labor Market Policy In European Union
93
equal opportunities. Each of the pillars has its implementation tools19.
Additionally, member states, using their employment policies, help achieve the above
mentioned goals in accordance with general guidelines of economic policies of member states
and of the Community, and they also regard support of employment as the subject of common
interest20.
The European Council evaluates every year the employment situation in the Community
and accepts motions for this issue based on the annual reports of the Council and
Commission. These reports constitute the basis for the formulation of guidelines to be
implemented by member states in their employment policies. Moreover, each member state
presents an annual report on main means taken to implement its employment policy.
Following the reports there is prepared a common report for the European Council on the
employment situation in the Community and on the realization of employment guidelines21.
By the terms of Article 30 of the Treaty establishing European Community, in January
2000 there was formed the Employment Committee, which replaced the previous
Employment and Labor Market Committee, established by the power of the Amsterdam
Treaty22. The new Committee should, among others, observe the employment situation and
employment policies in member states of the Community, and formulate respective opinions.
To realize its goals, the Committee consults its social partner. The Committee consists of two
persons from each of member states and from the European Commission. Thus, it has a
consultative function, and its main goal is coordination of employment policies of member
states23.
At the same time it is worth mentioning that, though the problem of free mobility of
workers was written down in the first documents concerning European integration, the issues
of employment policy were legislated only in the Treaty of Amsterdam. The White Book by
J. Delors from 1993, titled ‘Growth, Competitiveness and Employment’, formed the
ideological, political and analytical foundations for the coordinated European policy,
sometimes called the European Employment Strategy.
In December 1994 in Essen the European Council implemented the employment strategy
and determined five basic goals for the so-called Essen strategy. They comprised undertaking
actions for the faster growth of employment in the periods of economic growth and reductions
of non-payment costs of labor force. Moreover, employment policy was aimed at
improvement of efficiency of national policy on the labor market through a switch from
passive to active forms, such as employment exchange, training courses, employment
subsidies as well as improvement of efficiency of active programs through a proper selection
of the program candidate. Finally, employment policy, according to the strategy of Essen, was
aimed at drawing special attention to active programs meant for the groups of labor force
which were characterized by higher unemployment risk and worse position on the labor
market, i.e. young people, women and the long-term unemployed24. However still the
realization of these goals was of a wishful nature.
It was only the Treaty of Amsterdam in which a separate chapter was devoted to
employment policy according to which member states and the Community work for the
benefit of coordinated employment strategy, especially supporting skilled, trained and apt at
adaptation labor force as well as labor markets reacting to economic changes25. Member
19
I. Wolińska, Europejskie wytyczne w zakresie zatrudnienia na rok 1998 i 1999 rok, Rynek Pracy 1998, nr12,
p.73.
20
Z. Brodecki, M. Drobysz, P. Majkowska, op. cit., p.313.
21
Ibidem, p.313-314.
22
Z. Wiśniewski, Niektóre..., op. cit., p.12.
23
Z. Brodecki, M. Drobysz, P. Majkowska, op. cit., p.315-316.
24
Integracja europejska, red. A. Marszałek, UŁ, Łódź 1997, p.330.
25
K. Głąbicka, Polityka społeczna..., op. cit., p.165.
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Magdalena Knapińska
states, also for the first time, decided to coordinate employment policy at the level of the
whole organization26. Present regulations concerning issues of employment policy have
already been presented above on the basis of the currently binding Treaty of Nice, which
sustained resolutions of the previous Treaty of Amsterdam.
As regards the labor market policy of The European Union since 2000 there has been
paid attention to making the Union labor market more open and accessible till 2005 on the
assumption of free mobility of workers within a cohesive market, development of economy
based on knowledge and the principle of full employment agreed at the Lisbon European
Summit in 2000. In order to realize such tasks professional and geographical mobility should
be increased and there should be created the Labor Market Information System27.
European Social Fund As The Basic Tool Of Labor Market Policy In The EU
In order to realize the goals of The European Union there were established structural
funds such as European Social Fund, European Regional Development Fund, European
Agriculture Guidance and Guarantee Fund, Financial Instrument for Fisheries Guidance28.
The European Social Fund, one of the structural funds, was created on the basis of Article
123 of the Treaty of Rome on establishment of European Economic Community in 1957,
however, the proper regulations of its creation appeared in the Treaty on establishment of
European Community of Coal and Steel of 195129. In 1955 at the conference in Messina there
was stated the necessity to create a fund to support mobility of workers within the Community
as well as provide training and complementary education for workers. Final decision was,
however, made in Rome in 1957.30
In the currently binding Treaty of Nice, the European Social Fund is mentioned in Article
3. It is stated that to realize one of the European integration goals there is implemented policy
in social issues encompassing the European Social Fund31. In another place of establishing
The European Community it reads that to improve employment possibilities within the
internal market and, thus, raising standards of living, the European Social Fund is established
to facilitate employment and increase their geographical and professional mobility inside the
Community and to facilitate their adaptation to changes in industry and production systems,
especially through professional training and re-qualification32. Further, it is stated that the
Fund will be managed by the European Commission, supported by the committee under the
supervision of a member of the European Commission and composed of representatives of
governments, trade unions and employers’ organizations33.
K. Głąbicka mentions the following goals of the European Social Fund: professional
integration of the unemployed endangered with long-term work loss, professional integration
of young people looking for work and integration of people threatened with exclusion from
labor market. Moreover, the Fund aims at promotion of equal chances on labor market,
adaptation of workers to changes in industry, stability and growth of employment,
26
Z. Wiśniewski, Niektóre..., op. cit., p.12.
B. Piotrowski, Kwalifikacje i mobilność pracowników w Unii Europejskiej. Omówienie Raportu Specjalnej
Grupy Roboczej z 14 grudnia 2001, Rynek Pracy 2002, nr1/2, p.19-21.
28
K. Głąbicka, Integracja europejska, WSB, Radom 2001, p.104.
29
ECCS is an organization established to create common coal, iron and steel market in order to make conditions
for more reasonable specialization and the highest production in these branches of industry. Ref. to: L. Ciamaga,
E. Latoszek, K. Michałowska-Gorywoda, L. Orężak, E. Teichmann, op. cit., p.14.
30
M. Grewiński, Europejski Fundusz Socjalny jako instrument strukturalny w polityce zatrudnienia Unii
Europejskiej, Rynek Pracy 1999, nr7/8, p.91.
31
Z. Brodecki, M. Drobysz, P. Majkowska, op. cit., p.137.
32
Art. 146, Treaty establishing European Community, Z. Brodecki, M. Drobysz, P. Majkowska, op. cit., p.341.
33
Art. 147, Treaty establishing European Community, Z. Brodecki, M. Drobysz, P. Majkowska, op. cit., p.341.
27
Labor Market Policy In European Union
95
reinforcement of human resources in research, science and technology, as well as
reinforcement of the system of education and training34.
By the powers of the resolutions of the Agenda 200035, in which numerous changes were
introduced into structural policy for the years 2000-2006 it is assumed that European Social
Fund acts in three field. Firstly, it supports individuals through education and professional
training, assistance in finding employment, academic education and creation of new work
places. Secondly, the Fund supports structures and systems through professional training,
modernization of labor exchange offices and education anticipation system. Thirdly, it
provides additional means aimed at raising social awareness of social issues, information and
preparation of service sector36.
Conclusions
The creation of a homogenious market of human resources in Europe has become a fact.
The process of the European labor market creation was initiated by the legalization of free
transfer of workers among the member states. Another important step was the formulation of
the European Employment Strategy, which makes it possible for the EU to control national
labor policies of the member states. The third elements of the creation of the homogenious
labor market is the European Social Fund. It is an instrument to finance the projects connected
with the labor market policy.
The present study leads to the conclusion that, although much has been done to liberate
the labor market in the EU, we are still on the way to the total freedom of human resources
transfer within the Union. Definitely in the future we must observe improvement of the EES,
opening of the labor markets of the ‘old’ member states to workers coming from the new
member states, as well as implementation of labor market policy programs financed by the
ESF.
BIBLIOGRAPHY:
1. Brodecki Z., Drobysz M., Majkowska S.: Traktat o Unii Europejskiej i Traktat
ustanawiający Wspólnotę Europejską z komentarzem, Wydawnictwo Prawnicze Lexis
Nexis, Warszawa 2002.
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Europejska, Wydawnictwo Naukowe PWN, Warszawa 2000.
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empiryczne, Dom Wydawniczy ELIPSA, Warszawa 2001.
34
K. Głąbicka, Integracja europejska, op. cit., p.112.
Agenda 2000 For Stronger and Expanded Union is a detailed strategy of strengthening and expanding at the
beginning of the 21st century, initiated by Jacques Santer and prepared by the European Commission in 1997.
This document, also called the Santer’s package, determines the strategy of strengthening of the EU, raise of
competitiveness, modernization of key policies, expanding of the EU, institutional reform of the UE, reform of
Agricultural Policy, growth of employment and standards of living and financing actions of EU from the union
budget in 2000-2006, including expenses for structural goals. The second part of the document describes
precisely preparation level of the eleven candidate states and recommends beginning negotiations with Hungary,
Poland, Estonia, Czech Republic, Slovenia and Cyprus. Agenda 2000 was agreed at the summit of the European
Council in Berlin in March 1998. Refer to: Negocjacje członkowskie. Polska na drodze do Unii Europejskiej,
Pełnomocnik Rządu do Spraw Negocjacji o Członkostwo RP w Unii Europejskiej, Kancelaria Rady Ministrów,
Warszawa 2000, p.116.
36
Ibidem, p.213.
35
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Magdalena Knapińska
5. Głowacka J.
E.: Cele i zadania Europejskiego Funduszu Socjalnego, Praca i
Zabezpieczenie Społeczne 1998, nr10.
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polityki rynku pracy, Polityka Społeczna 1999, nr10.
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Spraw Negocjacji o Członkostwo RP w Unii Europejskiej, kancelaria Rady Ministrów,
Warszawa 2000.
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Raportu Specjalnej Grupy Roboczej z 14 grudnia 2001, Rynek Pracy 2002, nr1/2.
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współzależności, perspektywy, UŁ, Łódź 2001.
14. Wolińska I.: Europejskie wytyczne w zakresie zatrudnienia na rok 1998 i 1999, Rynek
Pracy 1998, nr12.
LABOR MARKET POLICY IN EUROPEAN UNION
Summary
The subject of the study is labor market policy in European Union, which has been
formulated as a result of many years’ efforts to integrate member states. The issue of
unification of production factors markets, especially labor market, has recently become more
and more important as the unemployment rate in The European Union is rising. The issue of
the labor market policy in The European Union is also interesting for the membership of new
countries in the Union and especially for candidate countries.