Promoting Employment

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1 Promoting Employment MORE AND BETTER WORK WHAT CAN THE TRADE UNION MOVEMENT DO TO PROMOTE PRACTICAL EMPLOYMENT INITIATIVES IN THE EU S MEMBER STATES? Kopenhagen, 29 November 2012 Bernhard Jirku ver.di Bernhard Jirku ver.di Arbeitsmarkt - und Beschäftigungspolitik 1

2 What can trade unions do? - Do not expect miracles! - Do not believe in spin-doctors! - Have a thorough look at the facts! - Analyse and transfer good practice! - Head for social dialogue! - Convince employers! Bernhard Jirku ver.di Arbeitsmarkt - und Beschäftigungspolitik 2

3 No job-miracle in Germany What helped stabilising employment and the economic system in 2009 / 2010 Three employment - instruments Bernhard Jirku ver.di Arbeitsmarkt - und Beschäftigungspolitik 3

4 Kurzarbeit Statutory short-time work - Efficient social insurance - Well-prepared unemployment funds - Social dialogue at enterprise level as well as at social insurance level - Adequate parliamentary framework < ~ 1920 / ~ 1960 > Bernhard Jirku ver.di Arbeitsmarkt - und Beschäftigungspolitik 4

5 Beschäftigungssicherungs-Tarifverträge Employment protection collective agreement - VW-Modell (crisis 1993/1994) - Exchange of working-time & wage-components against job-security for a limited period - Social dialogue with enterprises and affected branches - Experienced social partners < ~ 1995 > Bernhard Jirku ver.di Arbeitsmarkt - und Beschäftigungspolitik 5

6 Langzeit-Arbeitszeitkonten Long term working-time-accounts - Transfer of overtime hours into secured long-term accounts - Experienced social partners orientated on tough negotiations - Strict legal framework < ~ 2000 > Bernhard Jirku ver.di Arbeitsmarkt - und Beschäftigungspolitik 6

7 What helped stabilising employment and economy in Germany 2009 / 2010? 10 % deficit-spending <~1920> 30 % Statutory short-time work <~1960> <~1995> 30 % Employment protection collective agreement 30 % Long term working-time-accounts <~2000> 0 % Hartz-Reform-Agenda <~2005> 0 % Miracles <~2010> Bernhard Jirku ver.di Arbeitsmarkt - und Beschäftigungspolitik 7

8 What did the Hartz-Reform-Agenda contribute to employment 2009 / 2010? Deepening the crisis through destabilasation of employment and a shift towards precarious employment: - Temporary work / Labour leasing - Fixed term work contracts - Minor part-time jobs - Dequalification Bernhard Jirku ver.di Arbeitsmarkt - und Beschäftigungspolitik 8

9 Winners and Losers ver.di Bundesvorstand Wirtschaftspolitik 126,6% Real profits and fortunes Real wages upper 20 % 100% 101,7% Real wage last 20 % 89,4% Quelle: Volkswirtschaftliche Gesamtrechnung und DIW-Wochenbericht 45/2011, eigene Berechnungen 10

10 PRACTICAL EMPLOYMENT INITIATIVES (I) Fill-up social-insurance unemployment funds (be prepared for the following crisis) Fill-up working-hours-accounts (be prepared for the next crisis) Be aware of new negotitions of employment protection collective agreement to ensure employment (be prepared for the coming crisis) < Aiming at internal flexibility > Bernhard Jirku ver.di Arbeitsmarkt - und Beschäftigungspolitik 11

11 PRACTICAL EMPLOYMENT INITIATIVES (II) Stick to internal flexibility and social partners Leave the Hartz-Reform-Agenda and external-flexibility-path Be orientated on real economy (industries and services), and free real economy from being driven and chased by virtual economy Face the fiscal and financial risks Govern financial markets instead of being governed by financial market actors Labour market policies and real economy cannot correct the failures of virtual economy Bernhard Jirku ver.di Arbeitsmarkt - und Beschäftigungspolitik 12

12 PRACTICAL EMPLOYMENT INITIATIVES (III) Follow and prolong experienced paths of employment Don t believe in futurism predicting no more employment Diminishing employment within the industrial sector Growing employment within the service sector - 70 % of employment - 70 % creation of value Bernhard Jirku ver.di Arbeitsmarkt - und Beschäftigungspolitik 13

13 100% Agriculture 90% 80% Development of gross value added 70% Industry Anteile in Prozent 60% 50% 40% 30% 20% Services 10% 0% Quelle: Statistisches Bundesamt: Volkswirtschaftliche G t h *) Bis 1990 früheres Bundesgebiet einschl. 14

14 Employment in Germany 100% 90% Agriculture Anteile in Prozent 80% 70% 60% 50% 40% 30% 20% 10% Industry Services P r o g n o s e I A B 0% // Quelle: Daten bis 2009: Statistisches Bundesamt: Volkswirtschaftliche Gesamtrechnung; bis 1990 früheres Bundesgebiet einschl. Berlin-West 15

15 Sozialstaat in der Krise Anteil von Staat und Sozialversicherungen am Bruttoinlandsprodukt ver.di Bundesvorstand Bereich Wirtschaftspolitik 47,6% 47,6% 48,1% 48,5% 47,1% 46,8% Ausgaben 47,6% 48,0% 47,0% 46,0% 46,4% 45,4% 45,0% 44,7% 44,4% 44,5% 43,9% 44,4% Projektion der Bundesregierung 43,3% 43,5% 43,7% 43,7% 43,7% Einnahmen 42,5% 42,0% 42,0% 42,0% Quelle: Statistisches Bundesamt 2009 und Bundesregierung, Deutsches Stabilitätsprogramm, Januar 2010

16 PRACTICAL EMPLOYMENT INITIATIVES (IV) Look at the development of the service sector: Parts of the service sector are changing Parts of the service sector are increasing: e.g. individual-related services (care, education, leisure, ) Finance soc. services through social insurance budgets and local and national state-budgets Focus on real instead of virtual services Bernhard Jirku ver.di Arbeitsmarkt - und Beschäftigungspolitik 17

17 Thank you < > Bernhard Jirku ver.di Arbeitsmarkt - und Beschäftigungspolitik 18

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