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Pacts for employment and competitiveness in Europe

Author

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  • Jacques Freyssinet

    (Professor of economics, University of Paris I and Director, Institut de Recherches Economiques et Sociales (IRES), Paris.)

  • Hartmut Seifert

    (Head of Department at the Wirtschafts- und Sozialwissenschaftliches Institut (WSI) of the Hans Boeckler Foundation.)

Abstract

This article analyses collectively agreed PECs in 11 EU countries, focusing on their importance for employment and collective bargaining policy. It is shown that, irrespective of differences in emphasis, the agreements reached generally constitute a productive alternative to the prevailing strategy of responding to declining demand primarily by shedding labour. PECs, by contrast, do not rely mainly on short-term cost-cutting, but rather seek to raise both productivity and flexibility by means of comprehensive restructuring measures within the company. The focus is on improving internal flexibility; indeed external flexibility is often reduced by way of job guarantees. An important role is also played by steps to redistribute work via working time reductions.

Suggested Citation

  • Jacques Freyssinet & Hartmut Seifert, 2001. "Pacts for employment and competitiveness in Europe," Transfer: European Review of Labour and Research, , vol. 7(4), pages 616-628, November.
    • Handle: RePEc:sae:treure:v:7:y:2001:i:4:p:616-628
    DOI: 10.1177/102425890100700405
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