Promoting Decent Work in Europe: the Role of Social Partners The Social and Economic Council of the Netherlands/ Gak Institute 30 May 2016 Minister Asscher -------------------------------------------------------- Ladies and gentlemen, Thank you for the invitation to speak here today at this conference about decent work. A conference jointly organized by the Gak Institute and the Social and Economic Council of the Netherlands. Decent work has become a fashionable term over the past few years. This has not always been the case. August 2013, when I published an opinion article on this topic together with the British author David Goodhart, decent work was not yet that well known. At the time, I issued a Code Orange warning. A code used in our country when the rivers reach an alarmingly high level. I felt it was appropriate to issue a similar alarm call concerning some negative consequences on free movement in the EU. 1
About the need to protect the labour market situation of vulnerable groups in a way that does not violate the principle of non-discrimination. And about the race to the bottom in which we managed to get ourselves involved. A ruthless race on labour conditions with many innocent victims. Honest employers who are forced out of competition. Local workers who face the risk of losing their jobs. Mobile workers who are treated badly and are forced to work for next to nothing. Our downward speed was increasing by the minute. With more and more incidents of shady employers bending the rules, while taking advantage of the benefit of free movement. It s almost three years later now. And now that we ve almost reached the end of the Dutch Presidency, let s take stock of the situation. Have we averted the danger? Are we still at risk? Or was the issued alarm in the end a false one? Ladies and gentlemen, Almost three years ago, I spoke about Code Orange. Today, I want to talk about Code Red. A very deeply coloured Code Red. 2
Deeper than this red colour is perhaps and hopefully impossible. And I want to talk about how it relates to some of you here. As social partners, in the Netherlands and in Europe. The Code Red I am referring to was issued on 31 January 1953. During the ill-fated night when the flood and waves overwhelmed our sea defences and caused extensive flooding of the North Sea shores. While most of you know about this disaster, most of you probably don t know about what happened at Colijnsplaat. A village in Zeeland, one of our coastal provinces. Let me tell you the story, which you can also read about at the Watersnoodmuseum. The museum about the 1953 floods. During the storm, the water near this fishing village rose to alarming levels. The dyke warden decided to close the coupure in the harbour dyke. Huge waves were seen thundering against the beams put in place. But the brick buttress in the middle of the coupure started to buckle under the pressure of the surrounding water. If the buttress failed, the beams would collapse and the village would disappear under the waves. Suddenly, a man set his back against the buttress. Bystanders immediately rushed to lend their support. Forty buddies took the brunt of the first wave as living sandbags. 3
One by one, more villagers joined them. Shoulder to shoulder, four rows thick, a living dyke of tensed muscles. The village school teacher encouraged the men. Every time he saw another foaming wave heading towards them he shouted 'Hou aan mannen', Stand firm men. Suddenly, the sea deposited a barge onto the jetty, right in front of the coupure. From that moment, the vessel took the force of the torrent of water. The village was saved. It s a beautiful story. They call it the Miracle of Colijnsplaat. As I said, a more deeply coloured Code Red is almost impossible than the one of that winter night. How does this story relate to our current situation? Can we similarly speak of a Code Red in 2016? No. The Code Orange issued in 2013 served as a green light for change. A turn away from a road that was going steeply downhill. A turn away from the race to the bottom. It s been a slight turn. But a turn nevertheless. However, I told you the story about Colijnsplaat for a different reason. What happened at Colijnsplaat and what I ve witnessed over the past few years are similar in one important way. 4
Both show how peril brings out the best in people. Because the progress we ve made recently is not something one individual person can take credit for. It s something we ve accomplished together. As a living dyke of tensed muscles, if you like. Social partners, politicians, governments. We all have different stakes, yet we ve been fighting for a common goal: providing decent work for all EU citizens. There are many examples of this great partnership. Take for example the social deal crafted by the Dutch government, employees and employers. Together, we signed for a better-functioning labour market with a renewed focus on the value of work. Another great example of such social partnership is the joint agreement made between the EU-level employers and employees organizations in the construction sector. With this agreement, they signed for fair competition and preventing a race to the bottom in terms of wages. The SER, too, has played an important role. As one of the navigators, the SER has shown us a detailed map of the future and has advised us which route to take. 5
The Dutch government has welcomed the SER advice to develop an action plan to promote fair mobility in Europe, and the need to do this together with the social partners. Until recently, it was a taboo to talk about the downside of free mobility. Indeed, I was considered to be deranged when I addressed these problems. And I was heavily criticized for the opinion article I wrote with David Goodhart. Yet now things are changing. Fair mobility is slowly but gradually seeping into the European vocabulary. And decent work has even become a fashionable term! Last March was a turning point. The European Commission published plans to improve the rules on the posting of workers. The new proposal aims at ensuring that the work of posted workers is better rewarded. It reduces the ambiguity concerning their working conditions and fosters a level playing field for companies. It also offers a clear definition of the temporary nature of a posting in the directive: a maximum of two years. In addition, the proposal extends the 'hard core' working conditions defined in the directive and makes it applicable to all economic sectors. It goes without saying that I am very pleased with this proposal. It is definitely a step in the right direction. 6
Ladies and gentlemen, A downward path is much more easygoing than an upward one. This is also the case for the race to the bottom. You can reach the bottom effortlessly. Yet climbing back out of the pit again is a lot harder. It requires elbow grease. Patience. The ability to deal with setbacks. One of the setbacks occurred earlier this month, when a third of the national parliaments of the Member States initiated a yellow-card procedure against the Commission s proposal. The fear exists that the revision of the directive may endanger their competitive advantage. I very much regret this move. I am convinced that the proposed rules leave enough room for fair competition. Yet next to fair competition, the proposal also ensures fair mobility. In fact these two go hand in hand. Competition can t be fair if some workers are treated more equally than others. Income should be like an incontestable maths expression. 7
Equal work 'equals' equal pay in the same place. Or phrased differently, the Polish and Portuguese painters posted to the Netherlands standing on scaffolding should be paid the same as the Dutch painter standing right next to them. Fair mobility is in the interests of everyone. It is good to see that the European trade unions also supported this position. Nevertheless, it is now up to the European Commission to look into the objections. This will take time. From a Dutch point of view, of course, we hope that the Commission will decide to retain the proposal for revision as it is. At the same time, we think it is important to take the yellow card instrument seriously. Of course there will be implications for the negotiations in the Council. We intend to carry on with the work in the Council Working Group, especially on technical issues and aspects. It s our ambition to agree on a progress report at the June EPSCO Council. Ladies and gentlemen, We need to fight for decent work, together. By building on the power of our partnership. Both our partnership in Europe. And our social partnership. 8
EU rules in the health and safety field should be designed in such a way that they leave room for social partners at national level to decide on how to implement EU standards. Social partners can also help in ensuring that the rules on working conditions established in collective labour agreements are clear and transparent. And that they will be enforced properly. While we have made a turn away from the race to the bottom, we still have a long way to go, in Europe, but also in the rest of the world. In the framework of the annual ILO International Labour Conference there will be ample opportunity in the coming weeks to discuss the global promotion of decent work in global supply chains. I think this is a very positive development. Because participation in a global supply chain should not result in a new race to the bottom. Instead, it should give decent work a global impulse. In the Netherlands, we try to foster positive developments in poorer regions of the world through good practices. In doing so, I think we are one of the front runners. Yet international action is also required. We need to develop a shared responsibility of governments, social partners, NGOs and companies. A multi-stakeholder and 9
sectoral approach is very important. We cannot simply focus on one end of the chain, and neglect the other end. Ladies and gentlemen, It would be great if we could agree on an ILO Agenda for the future embodying a shared responsibility for decent work. Let s build on that shared responsibility, not only by offering work, but also by protecting employees. Let s change decent work from a fashionable term to an everlasting standard. Let s fight for this together and stand firm. Thank you. 10