Why labour market transformation requires a new social contract for Europe

In my work with the World Employment Confederation (WEC) - Europe , I have been reviewing and contemplating during the last weeks what the EU’s future labour markets will look like and what different actors can do to play a constructive role in creating socially just employment for European workers. This is a process that now involves consideration of changes similar to past industrial revolutions and rethinking how we integrate all stakeholders involved into planning for fair access to employment and subsequently fair employment practices.

Tech and green revolution impacts on how we deliver rules for work and employee security

One of the biggest changes reshaping our work environments, and also worker rights, is all the opportunities that new technologies enable. In the past four years, we have seen a complete rethinking of how employees can work in hybrid set-ups (on-site, remote, combined) and still deliver needed outputs for businesses. Likewise, we have seen how workers’ and employers’ experiences during the Covid pandemic caused both sides to re-evaluate issues such as mental and physical health and find ways to focus on flexible work structures. These realities require new thinking in how we provide job security through employment contracts, regulations on workplace protections, and also guarantees for fair, just compensation in work structures where teams are not always physically monitorable but still deliver the outputs organisations expect and need to thrive. In this context, my colleagues and I at WEC - Europe have put forward a number of proposals for work life flexibility that call for adaptable work agreements which will ensure the EU’s future competitiveness. Specific measures include a focus on flexible, fair regulation of temp agency work: guaranteeing agile work options while also delivering worker protections through social security contributions, healthcare coverage and portability of both benefits as workers move between jobs with different employers and in different countries. Similar protections should be afforded to gig workers who, when taking on consulting projects or limited-term contracts, also have certainty that employer-funded social and health contributions will be delivered as well.

Support for safe, fair international mobility of workers and skills access

Another point that WEC documents focused on policy requests, prior the upcoming European elections, address is the evolving demographic landscape of the EU’s labour force. We are in a moment of high tensions on job markets due to citizen’s unease with economic developments, with pressures on immigration caused by regional conflicts, and also the reality of ageing workforces in much of Europe: specifically in the West. As EU member states continue to search for solutions to these issues, they also need to reflect on the social contract that has been a pillar of EU policies since the bloc’s inception way back in 1957. The premise that economic stability guarantees political and societal security still holds true today. We just need to find ways for member states to plan and adopt worker mobility (and immigration) policies that deliver mutual benefits. In some cases, this means bringing in labour and talent that can help bridge current skills gaps and give employment training institutions in national economies time to reskill and upskill worker-citizens impacted by skill obsolescence and evolution. WEC proposals focus on investments into career guidance counselling, re-education programmes and outplacement initiatives. With the ongoing growth in tech transformation-influenced and green transformation roles (think energy, automotive and logistics sectors), national governments need to work with social partners (businesses, universities, social and fair employment advocacy groups) to make socially just future work the EU standard. This includes monitoring of fairness and non-discriminatory practice in digital labour platforms that form the gateway for most modern job access.

Seat everyone at the table when planning regulatory structure

It is impossible to capture every aspect of the moving parts that need to be aligned to create a socially just European labour market. But I feel that prior to closing this commentary, I have to mention stakeholder participation. In past decades, our EU regulatory engagement practices have been improving but, still, so much of the legislative drafting process feels like it is top-down: served by lawmakers to other market actors – educational and training institutions plus businesses – without the latter’s contributions along the way. To make Europe’s job markets and work environments fair across the board, regulatory norms must be informed by what skills businesses need most, what their requirements for future jobs will look like, and how they can partner with educators to train and innovate. This requires facing up to a future where job skills are perishable and education will increasingly be a life-long (or at least career-long) endeavour. If we get all actors in the process involved from the start and respect the needs and experiences of the entire collective, we can achieve a future where Europe’s workers are some of the safest, most competitive in the world.