Restructuring in The Netherlands
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1 Restructuring in The Netherlands Antcipation and management at various inter-related levels Wim Sprenger October 2010
2 Content A: Labour market : figures employment, participation, vulnarable groups B: Restructuring: policy recent years anticipating restructuring management of restructuring management restructuring during crisis interesting cases social responsible restructuring?
3 Labour market and employment employment growth(except 2002&2003) Decline in 2009 and 2010 Construction and Services boomed ; social service sector permanent growth Active population on average older. Average pension 61 in 2008, substantial differences between sectors: Energy&Water just over 58, manufacturing, services and hospitality well above the national average Despite conflict in 2009, new national agreement social partners 3
4 Participation rate and Unemployment : Active labour market participation from 67 to 71% Women responsible for higher rate Part-time ratio (FTE's/persons employed) steadily declining, from 0,85 in ,774 in 2010 Unemployment lower than in EU-15 and EU /9 NL 4,0 EU-27 9,3 2010/1 NL 4,5 EU-27 9,5 2010/8 NL 4,5 EU-27 9,6 4
5 Vulnerable groups labour market Most vulnerable groups on the labour market (rising unemployment): Youngsters (net participation rate down 1.9%), Older workers between 55 and 65 (-1.9) 'Non western originated migrants' (- 1.8) Skill level indicator unemployment risks: 2003 to 2008: lower skilled workers 'overrepresented' in unemployment (rate ) Underrepresented in unemployment: 'Middle' educated (0.87 every year) Higher educated (0.75)
6 Restructuring in recent years 4 dismissal procedures: Individual agreement of dissolution (ontbindingsovereenkomst) Bankruptcy Procedure lower judge (kantonrechter) Procedure via UWV (employment service) January September 2009: persons dismissed (January - September 2008: ) 48 % (41.000) forced dismissal on em-ployers initiative or bankruptcy employer ERM database: Main mass 6
7 Anticipating restructuring Social dialogue at national level: long term reports and strategies of tripartite SER and bipartite Labour Foundation Innovation Platform, experts (from 2003) and National Centre for Social Innovation, social partners and knowledge institutes (from 2007) 14 Regional Technocenters Platform Bèta-techniek: more 'bèta's' and technical staff in schools and companies (from 2004) 140 sectoral training and development funds (bipartite) only marginally; % financed job-to-job transitions, 37% mobility within the
8 Management of restructuring Early retirement schemes rapidly declined as tool, though still popular with groups of employees and employers In social plans often job-to-job as central objective: in 1,050 companies (most 100+) 1,130 social plans for managing restructuring negotiated. 93% of the plans: job-to-job transitions, following a national social partner advice in the Labour Foundation of 2005 In 2009 more than 100 institutions offered employees APL (Accreditation of Prior Learning). Tax credits and funding based on Collective Labour Agreements or sectoral training funds
9 Management of restructuring during crisis Social Pact (national social partners and government), March 2009: traineeship for all (three months) jobless school leavers with sectoral agreements for a follow-up employment contract; regional mobility centers all over the country; public/sectoral training and mobility funding (government and training funds); inter sectoral mobility in social plans; special attention for flexworkers and vulnerable groups (long term unemployed, young people with a disability,older employees). Indeed this Pact has been followed up bij agreements at sectoral and company levels
10 Management of restructuring during crisis (2) 3 special government initiatives: Part-time Unemployment (PTU, Deeltijd WW): from April employees were in, over 50% out July % of them did not face redundancy after PTUB. 6,420 employees made redundant after PTU, 42% within 13 weeks 33 Regional Mobility Centers: multi stakeholder; between Macrh an November 2009 the centers claim to have moved 12,000 people from jop-to-job, 88,500 to a new job within 3 months of uemployment Action Plan Youth Unemployment: regional covenants, traineeships for youngsters, special provisions for 'vulnerable youngsters (inclusding care, education and orientation)
11 Long term job-to-job scheme at Philips Drachten Anticipative collective agreement in 5 metal sectors NCSI promoting smarter working and social Interesting cases Poortwachters ( Gatekeeper centers): Regional employers 'initiatives' organising intersectoral and professional mobility Anticyclic training during crisis in the construction sector, social partner initiative (employees trained, newcomers take their places temporarily) Age Phase based diversity (anticipation ) at ACHMEA insurance company Individual employability budget (anticipation) and internal Labour mobility policy (management) at bank/insurer ING
12 Social responsible restructuring? Anticipation less prominent than management of restructuring Job-to-job transitions seem successful but not for the most vulnerable PTU saved many jobs Trust between social partners and other stakeholders crucial factor for both anticipation and management as was confirmed at the national seminar Key question: how to move from managing restructuring towards anticipation of future restructurings?
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