EZA MAGAZINE
EZA PODCAST

Impact of the new active labour market policy in Europe

The theme of the seminar held on December 1 and 2, 2022 was “Impact of the new active labour market policy in Europe”. A total of 46 representatives of workers’ organisations from 12 European countries, and 17 speakers took part. The event took place in St Julian’s / Malta and was organised by UHM Voice of the Workers, with the support of EZA and funded by the European Union.  

Important aspects under the spotlight

The event analysed the impact which active labour market policies can have to address major economic and social challenges which in turn having a direct bearing of the quality of life.  The issues under the spotlight were the following:

  • Overview of the evolution of labour market policies with particular reference to the Maltese scenario
  • Challenges brought about by the increase in labour participation with respect to work-life balance
  • Impact of the Covid-19 pandemic on the labour market and risks of a lost generation in virtue of the closure of schools
  • The experience of third-country nationals working in low-paid jobs and downward pressures on salaries of the rest of the workforce
  • Re-skilling and upskilling of the workforce to respond to the change needs of the economy and new challenges
  • Addressing the demands of specific sectors where there is a shortage in the labour supply
  • Impact of automation and artificial intelligence on the labour market
  • Fighting the black economy and empowering low-paid workers prone to exploitation to fight for their rights possibly through mandatory unionisation
  • EU initiatives in favour of inclusion and integration in the labour market

Results and calls for action

  • The Covid-19 pandemic has impacted negatively on the work-life balance especially for women who shouldered the biggest burden when it comes to family responsibilities. There must be more recognition to “unpaid work” and this should be done through specific policies which place this kind of work at par with other labour activities. 
  • Active market labour policies must focus on increasing human capital not just numbers as the most sustainable way to improve work-life balance such as reducing the 40-hour week is by boosting workers’ productivity.
  • Vocational education is key to have a diversified economy and address labour shortages. Moreover, the system must be based on competence training to allow students to pace the learning process according to their needs, like the model in Finland. 
  • Social partners, government and employers must speak the same language and have a relationship based on mutual trust to address challenges such as specific shortages and respond to the emerging needs.
  • Creating working conditions that promote a healthy work-life balance is key to attracting new workers and retain current ones and avoid shortages such as those experienced in the healthcare sector.
  • Despite improvement in the number of disabled persons in the workforce there is still a glass ceiling with regards to managerial positions. Moreover, a one-size-fits-all approach must be avoided as there are different kinds of disabilities ranging from intellectual, physical and sensory. Hence, labour market policies must take into consideration these aspects to improve employment opportunities of disabled persons and avoid allowing them to fall into poverty.
  • Research shows that wherever there is a high trade union density conditions, payment and work-life balance improves. Mandatory union membership for low-income workers who are the most vulnerable for exploitation should be seriously considered. On the other hand, if free riders are allowed to flourish, there is a risk that collective bargaining will move towards extinction, which would be a huge blow not only for union members but also for non-members.
  • Automation and artificial intelligence are positive developments but there must be safeguards to prevent such technology from replacing employers. Therefore, the platform economy needs to be regulated.
  • At EU level there is the need to sustain efforts to mitigate the impacts of the war in Ukraine in terms of inflation and the energy crisis. The Recovery and Resilience Plans must also play an important part. 
  • Any disruptions to the educational systems must be avoided that the closure of schools during the Covid-19 pandemic had a negative impact especially in terms of the mental wellbeing. Furthermore, digital services such as remote learning must be revisited to ensure this does not create additional educational barriers.
  • Given that the dependence on foreign and third-country national is likely to continue or even increase further the risk of these workers being treated as commodities, human trafficking an exploitation will rise further. Consequently, trade union density must increase to pave the way for collective bargaining which is a strong tool to address these issues. 
  • Unions must pile pressure on governments to move away from economies based on cheap labour as otherwise there will never be fertile ground for upskilling of the workforce and value-added jobs. 

Conclusion

The two-day event was a good opportunity to discuss a wide variety of issues which we as trade union members deal with at grassroot level. Unfortunately, complaints of precarious working conditions, mental health issues, discrimination and exploitation comprise the lion’s share of the cases we come across. This is why, as unions we must tackle the root of these problems which more often than not are a result of weak policies and legal grey areas.