Regional Labour Market Councils to Ensure that Labour Market Policy meets Business Needs: A Danish Case

Transcription

1 Seminar on Employment, Economic Development and Local Governance in North-west Russia. Regional Labour Market Councils to Ensure that Labour Market Policy meets Business Needs: A Danish Case By Jan Hendeliowitz, Director General of the Employment Region for Greater Copenhagen and Zealand, Denmark The Premise of Danish Employment Policy The overall objective of Danish employment policy is to provide business with appropriate labour resources in both the short and the long-term perspectives. To achieve this, employment policy has a dual focus, namely: - Close cooperation with the business community on providing labour and information on labour market conditions - A pro-active stance on unemployment and developing the skills and adaptability of the workforce. Employment policy is increasingly being co-ordinated with other policies on local economic development at the central, regional and local levels. 1

2 Reform of Local Government in Denmark To maintain a productive base for the Danish level of welfare, a structural reform of local government is in the process of being implemented. The reform will take full effect from January For employment policy this entails that: - The decentralised levels of the Public Employment Service (PES) will merge with the municipal labour market administrations - Local state and municipal authorities will retain extensive delegated power to define employment policy within the overall national framework on the basis of local needs and priorities - In a revised framework for tri-partite cooperation, the social partners will continue to be closely involved in strategic planning and coordination of employment policy objectives at the national, regional and local levels. Four New Employment Regions in Denmark (formerly 14) 2

3 The Future Employment Administration (2007-) National level Ministry of Employment National Labour Market Authority National Employment Council (1) Regional level (4 new Employment Regions) Employment Region monitors effects and results Regional Employment Councils (4) Local level Approx. 100 local Job Centres State Employment Authority (presently PES) Local Job Center Municipal Employment Authority Local Employment Councils (100) Municipal Councils Why Change the Employment Administration? - Presently, the employment administration is divided into two parallel systems (overseen by the state and the municipalities, respectively). This is not logical and does not reflect the needs of the citizens. - In a knowledge-based economy, there is an increasing need for a professional and well-coordinated service to the business community. This will be easier to achieve through a common approach. - A more stringent monitoring of results and effects will result in a more clear-cut focus on employment and job availability rather than the traditional emphasis on social welfare benefits. 3

4 Main Elements of the Employment Administration Reform 1. Job Centers in all municipalities 2. One point of access for both citizens and business 3. Coherence between employment policy and social benefits (employability and social problems can be identified and solved within the same context) 4. A stronger focus on employment and availability versus emphasis on social issues 5. Separation of efforts to gain employment and payment of social benefits (Job Centers have no authority to allocate funds for benefits) 6. Focus on effects and results - benchmarking 7. Standardised service nationwide (versus considerate local variations) 8. Employment policy can be closely monitored by the parliament and government (versus decentralised municipal authority) 9. Influence of the social partners at all levels national, regional and local 10. Establishment of a common system for handling complaints. Main Differences between the Present and the Future Employment Administrations The present administration ( ) Two parallel systems Emphasis on the regional level Considerable powers delegated to the social partners at the national and regional levels Focus on targets and results. The future administration (2007-) One (merged) system Emphasis on the local level Consultative function of the social partners at all levels (national, regional and local) Focus on effects and benchmarking. 4

5 Composition of the Future Regional Employment Council for Greater Copenhagen and Zealand (2007-) This Regional Employment Council will consist of 42 members and one Chairman, appointed by the Minister of Employment. Employer Organisations (14 members) Employee Organisations and Trade Unions (14 members) The Regional Council and the Municipalities (12 members) 10 from the Confederation of Danish Employers (DA) 2 from the Danish Confederation of Employers' Associations in Agriculture (SALA) 10 from the Danish Confederation of Trade Unions (LO) 2 from the Danish Confederation of Professional Associations (AC) 2 from the Regional Council 10 from selected municipalities 2 from the Danish Association of Managers and Executives (LH) 2 from the Salaried Employees and Civil Servants Confederation (FTF) 2 from the Danish Council of Organisations of Disabled People (DSI) Main Tasks of the Regional Employment Councils (2007-) The Regional Employment Councils will: Monitor and propagate knowledge about the regional labour market and the work force. Monitor the results of the state and municipal employment effort of the local Job Centers. Enter into a contract with the Minister of Employment every year concerning regional targets and scope of employment policy initiatives, including priorities and dimensions of policy instruments. Coordinate eduational and vocational guidance activities. Launch initiatives to prevent and relieve problems of labour shortage (bottlenecks). Mobilise efforts in response to mass layoffs or the closing down of major enterprises in the region. 5

6 Composition of the Future Local Employment Councils (2007-) 15 members, including one Chairman Up to 3 from the Confederation of Danish Employers (DA) Up to 3 from the Danish Confederation of Trade Unions (LO) 1 from the Salaried Employees and Civil Servants Confederation (FTF) 1 from the Danish Confederation of Professional Associations (AC) Up to 2 from the Danish Council of Organisations of Disabled People (DSI) 1 from the Organisation of General Pracititioners in Denmark (PLO) 1 from the Municipal Council 1 from the local Integration Council (where established) Up to 2 members of relevant local associations Members are appointed for four-year terms The council members appoint a Chairman from their midst Secretarial assistance to the council is undertaken by the Job Center staff. Main Tasks of the Local Employment Councils (2007) The Local Employment Councils will: Monitor results and effects of the Local Job Centers and advise on initiatives for improvement of employment efforts. Be involved in the elaboration of the annual Employment Plan. Have authority to request changes of the Employment Plan or the actual employment effort of the Job Center. Have authority to request that the Regional Employment Council take action if intervention is necessary. Be responsible for writing up a yearly plan of initiatives to promote employment in relation to local business and industry. (With a corresponding budget allocation). 6

7 Future Challenges for Danish Employment Policy To secure that businesses can get the labour they need by making job openings more visible and increasing geographical and occupational mobility of the workforce. To ensure that the workforce has or can get the competences in demand on the labour market through a pro-active approach to skills upgrading and lifelong learning. To promote an inclusive labour market that meets the needs of those with reduced working capacity through socially inclusive employment policies. To enhance the conditions for productivity growth and adaptability in response to the pressures of globalisation. To secure the continuation of a well-mediated and productive dialogue between the social partners and the employment authorities. 7