RESUMEN DE LA REUNIóN DE CORRESPONSALES DEL MISEP

							                                                                          SECRETARIA    GENERAL   DE
                                                                          EMPLEO

                                                                          GABINETE TECNICO




                               MEETING REPORT
                     MEETING OF THE MISEP CORRESPONDENTS
                              AVILA, 13-14 JUNE 2002


The six monthly meeting of correspondents of the MISEP (Mutual Information System on
Employment Policies) network took place on the 13th and 14th of June 2002 in Avila? Spain.

Delmira Seara welcomed the correspondents, in particular those who joined the MISEP network
for the first time and spoke about the difficulties encountered in organising the meeting. The
Spanish Presidency was exclusively responsible for the organisation of this meeting, with no
support either from the European Commission or from the Secretariat of the European
Employment Observatory, due to the lack of budget resources, a fact which has prevented the
formalisation of a new contract with the firm ECOTEC, who were responsible for the Secretariat
up to April 2002.

13th June, morning session

The first session was given over to analysis and discussion of the theme chosen by the Spanish
Presidency for this meeting: Increasing labour market participation rates, in particular, of
women and older workers in order to meet the targets set in Lisbon.

Dolores Cano, Director General of the Spanish National Institute for Employment (INEM)
focussed on the recent reform of unemployment protection, under the Royal Decree Law 5/2002
of the 24th May. This law is part of a raft of measures intended to improve the workings of the
labour market in order to create both more and better work. One of the more important of these
measures is the future Employment Law. Both of these laws can be seen as another step forward
in the process of reform which has contributed to the favourable development of employment in
Spain since 1997.

Alfonso Prieto, Deputy Director General of Employment Studies, analysed the situation of older
workers and women in the Spanish labour market, shaped by the development over the last three
decades of a series of factors which include notably: a sharp drop in the birth rate, the later entry
into the labour market of young people and the development of an employment policy which
favoured early withdrawal from the labour market. Currently, although in Spain the adult
employment levels for both men and women are lower than in Europe, that of men taken alone,
at 67.7 %, is above the European average. For women, activity and occupation rates have
increased continuously since 1990, although they are more than 25 points below the levels for
men. There exists, therefore, a large pool of inactivity which taken together with the continuing
high level of unemployment– particularly for young people and women– means that the
problems due to the ageing of the population are, for the moment, of secondary importance. In
short, it could be concluded that it seems to be necessary to take action on training older workers
in order to ensure that they remain in the labour market and to concentrate efforts on increasing
employment levels in young people and women.
During the round of questions, the correspondents expressed interest in the official retirement
age and flexible retirement (Austria), employment on temporary contracts (United Kingdom),
the drop in activity rates for young women and the measures which might help to increase them
(Germany), the attitude of social partners regarding part-time contracts and the guidelines for
collective negotiation (Netherlands) and promoting regional geographic mobility (Norway).

The afternoon session began with a speech by Gabriel Alvarez del Egido, Deputy Director
General of Employment Promotion from the INEM, about the measures intended to improve
employment levels in women and the older population. Over the last few years the importance
of gender in employment promotion schemes has increased, both in terms of incentives to
promote stable employment contracts through advantages based on Social Security contributions
payments and in terms of action taken to improve occupation rates. Further points of interest
here are the scheme on consultancy and support for self-employment and setting up businesses,
the Optima Programme to guarantee equality in the workplace or the increase in schooling
levels among the under 6 year-olds.

Although in the past policies designed to keep older workers in the labour market had been
under-developed, incentive schemes for employing the over-45s have now been set up. In 2002,
in line with the objectives set in Stockholm, and in developing the agreement signed with the
social partners, the regulations covering retirement were modified and voluntary mechanisms
and incentive packages for gradual, flexible retirement were established. The recently passed
reform allows for the possibility of the over-55s combining work and receiving unemployment
benefit. Moreover, specific measures have been drawn up for activity improvements in older
people.

Alfonso Alba, lecturer from Universidad Carlos III in Madrid, presented the data from an
econometric study analysing activity and occupation rates for women in relation to their level of
education and the number and age of their children. These are three basic aspects relevant to the
integration of women in the labour market. The results demonstrate the need for the Public
Employment Services to focus their attention on women with younger children and a lower level
of education and to develop family support structures.

The session ended with participants’ questions aimed mainly at getting more information on
advantages based on social security contributions payments (Germany), other specific measures
for older workers besides the economic incentives for employers (Ireland), the cost of a flexible
retirement system and the impact of female uptake of activity improvement measures
(Netherlands), the assistance given to single mothers and private sector job availability (United
Kingdom), and the compatibility of positive discrimination measures and Equal Opportunity
Directives (Norway).

13th June, afternoon session

The afternoon of the first day of the meeting, continued with a presentation of Member States’
Experiences.

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The German MISEP correspondent gave information on the labour market situation in Germany
and on specific measures concerning women and older workers. Activities focussed on support
for childcare have been boosted, supporting by the Government. Amongst measures intended to
increase the share of older workers in the labour market, the Soft Management programme
implemented by the PES and social partners is noteworthy. This includes campaigns aimed at
persuading the business community to employ older workers and at effecting a change in
mentality. Furthermore, in the Employment Pact and the joint Declaration signed by the
government and social partners there is a chapter which covers the outlook for older workers. It
proposes a series of measures: among others help with integration through advantages based on
training payments for qualification for older workers in SMEs.

At the beginning of a presentation on measures designed to increase employment levels in older
people, the Belgian correspondent pointed out the need to bring about a change in the way
society sees this subject. As a result, the speech focussed on experienced rather than older
workers. The need to maintain this experienced human capital has led to the implementation of a
number of active and preventive measures. One of the active measures is Plan Activa, which
envisages: reducing social security contribution payments for employing unemployed over-45s;
a specific reduction in social security payments contributions for over-58s; the obligation for
businesses to offer outplacement services in certain cases of firing over-45s; and the obligation
for recently unemployed over-50s to remain on the job seekers’ register. Of particular interest
amongst the preventive measures are flexible working schemes (partial early retirement, time
credits), measures focussing on training and development of mentoring, the creation of a fund
for promoting quality in working conditions for older workers and the setting up of professional
consolidation unit.

In the Netherlands, the significant increase in female employment levels since 1992 and the
maintenance of a low level of employment for the older population has led to the creation of
specific targets for 2010 as follows: an annual 0.75 % increase in employment for older people
(aged between 55 and 64) until 42 % is reached, and female employment levels of 65 %.
Amongst the measures intended to help older people, activation policies with the cooperation of
social partners, development of human resources policies which take account of the needs of
older workers in businesses, elimination of fiscal benefits in early retirement systems through
replacement by incentives for flexible retirement and progressive tax deductions for older
people depending on how long they remain at work are all worth pointing out. For women, steps
taken have been aimed at changing weekly schedules through agreements with employers,
increases in crèche services and specific fiscal measures. Furthermore, there is an additional
programme to get 70,000 women into the labour market between 2002 and 2005. Lastly, the
correspondent from the Netherlands pointed out that the new government elected in the last
general elections has not yet published its policy, although few changes in terms of direction are
expected.

The correspondents form Sweden indicated that the labour market in Sweden has continued to
develop very favourably in recent years and that some very high activity and occupation rates
have been achieved. Having already surpassed the Lisbon and Stockholm objectives, Sweden is
now looking at improving quality in work to encourage inactive persons to enter the labour
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market. In order to deal with labour market bottlenecks new types of worker are to be attracted
(immigrants, the disabled and those in a situation of long term disablement) and the proportion
of older workers in the market is to be increased.

The Norwegian observer pointed to high education levels and childcare services as basic aspects
in the positive position of women in the labour market. Moreover, the government has
developed a very active policy for dealing with sexual discrimination and on the same point has
declared its intention to modify equal opportunities legislation if the 40% target for women in
company management bodies is not met. Similarly, the adoption of measures intended to
increase the number of women in certain sectors has been proposed. In terms of older workers,
the government’s concern at the increase in the number of pensioners, because of both age and
disability, has resulted in the adoption of agreement with social partners aimed at labour market
participation. The main objectives of this measure are a reduction in the number of people off
sick, a reduction in the number of people receiving additional disability benefits, and an increase
in the retirement age, to 59. Similarly, the government has presented parliament with a proposal
for limiting the duration of disability benefits to three years. At present, there is no time limit.

After the presentations there was a general discussion in which the correspondents asked for
extra information on the issues covered in the presentations.

14th June session

The second day of the meeting concerned the outlook for the MISEP network.

The first person to speak was Guido Vanderseypen, representing the European Commission. He
thanked the Spanish representatives for organising the meeting in spite of the difficulties due to
lack of financing for holding the meeting. These difficulties were due to delays in renewing the
contract between the European Commission and the firm ECOTEC who is responsible for the
Secretariat of the European Employment Observatory. He restated EU interest in the
Observatory, demonstrated by an agreement reached between the Council and the Parliament on
measures designed to boost employment (article 129 of the EC Treaty). Although a legal basis
already existed for the Observatory’s activities, whose financing is a priority for the Committee,
funds to renew the contract would be made available later in the summer 2002.

Manuel Lloredo, the Spanish representative at the initial informal meetings of said Committee,
highlighted the importance of the Observatory’s activities given the wider significance that the
Decision attributes to information and its dissemination to the public and local bodies.

The German correspondent, who is also a representative on the Committee, told the meeting that
he had requested a more detailed breakdown of the budget from the Commission. It is hoped
that from now on the continued flow of resources and the contract for the Secretariat are
assured. Clarity is still lacking in the definition of the MISEP’s tasks.

Other correspondents requested information on the future contract of the Secretariat, the funds
available and the translation of the Basic Information Reports. Everyone shared the concern
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over the network’s unclear future and bewilderment at the situation of the last three years of
delays and interruptions in contractual arrangements for the Observatory. Correspondents also
expressed the hope that with continuous administrative support the network will regain
momentum.

The second part of the speech by the representative from the European Commission was
devoted to information regarding the assessment projects on the impact of the European
Employment Strategy. The Commission has carried out a macroeconomic study and the
Member States have presented their individual national studies. The Commission compiled an
executive summary, which has already received attention in the Employment Committee and is
preparing a Communication for July with the assessment conclusions and its view on the future
of the Strategy. The context in which the new phase is to be developed includes a number of
factors, particularly: enlargement, globalisation, immigration, bottlenecks, demographic changes
and economic restructuring. Some key elements can be identified in the new process: greater
clarity and improved presentation of objectives, simplification and concentration in guideline
priorities, greater participation of social partners and complementarity with other processes.

To end the meeting there was a round of speeches in which most of the correspondents present
explained the new aspects of labour market policy in their countries.

The representative from Denmark announced that the MISEP meeting for the period of the
Danish presidency will take place in Elsinore in early October 2002. Although the specific
theme has yet to be decided it will probably be related to the main theme of the Presidency in
the field of employment and social policy: social inclusion through social dialogue and
partnership.




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