Nielson Report Working Life In The Nordic Region Challenges And Proposals

Working life in the Nordic regionChallenges and proposals/ Poul NielsonWorking life in the Nordic regionWORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSOn 20 November 2014 the Nordic ministers for labour in the Nordic Council of Ministersdecided to carry out a strategic examination of Nordic co-operation in the field of workinglife. The report was to contain 10–15 specific action-oriented proposals for improvingNordic co-operation in the field of working life over the next 5–10 years. In April 2015 Iagreed to assume this task.Since then I have had extensive consultations with ministers, parliamentarians, civilservants, researchers and representatives of employers and trade unions throughout theNordic region and meetings with the EU Commission, the European Parliament, Europeanthink-tanks, the ILO and the OECD. My work on the report involved over 100 interviews,and among other things I went through the minutes of several years of ministerialmeetings. In writing the report I have chosen to omit specific references – also becausethis better reflects the fact that I alone am responsible for the content of the report.I have encountered great interest and helpfulness from all concerned in this undertaking,which has vindicated the timeliness of the decision to carry out this analysis. I would liketo thank all of the many people who have contributed their insight, experiences and viewsin the process. Particular thanks go to the Secretariat of the Nordic Council of Ministersand in particular Senior Adviser Ulf Andreasson, who has been both a good friend on themany trips and an inspiring and shrewd sparring partner in the process.Poul NielsonWorking life in the Nordic region – Challenges and proposalsISBN 978-92-893-4580-4 (PRINT)ISBN 978-92-893-4581-1 (PDF)http://dx.doi.org/10.6027/ANP2016:735ANP 2016:735© Nordic Council of Ministers 2016Layout: Jette Koefoed/Erling LynderCover Photo: Erling LynderPhotos: p. 8, Yadid Levy; p. 22, 33, ImageSelect;p. 26, Karin Beate NøsterudType: Meta LFPaper: Munken Polarwww.norden.org/nordpubNordic co-operationNordic co-operation is one of the world’s most extensiveforms of regional collaboration, involving Denmark,Finland, Iceland, Norway, Sweden, and the Faroe Islands,Greenland, and Åland.Nordic co-operation has firm traditions in politics, theeconomy, and culture. It plays an im-portant role inEuropean and international collaboration, and aims atcreating a strong Nordic community in a strong Europe.Nordic co-operation seeks to safeguard Nordic and regionalinterests and principles in the global community. CommonNordic values help the region solidify its position as one ofthe world’s most innovative and competitive.Nordic Council of MinistersVed Stranden 18DK-1061 Copenhagen KPhone (+45) 3396 0200www.norden.orgWorking life in the Nordic regionChallenges and proposalsIntroduction 6Substantive, common Nordic topics 9Obstacles to cross-border freedom of movement 9Migratory pressures 10Statistics 11Working environment 12Gender equality 14Structural changes and the representativeness of organisations 15Education and training 18The western Nordic region 20Institutional topics 23Nordic Council of Ministers for Labour 24The Nordic region in the EU 27Description 27What can the Nordic region do? 30The Nordic region in the world 33International Labour Organisation (ILO) 33OECD 34WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSIntroductionApart from a number of differences historical context with the establishmentbetween the countries in the Nordic region of our Nordic welfare societies based onas regards the structure and policies of a recognition of the social and humantheir labour markets generally, there is responsibility of the community. Anda core of common types of approaches, just as there is a distinction betweenstandards and values which together the Nordic region and many otherdefine the nature of working life and labour countries in the labour market, themarket policy in the Nordic countries so Nordic countries also stand out in thatthat one can speak of a “Nordic model”, they are characterised by less inequalitywhich in important areas is distinct from and greater social security than mostconditions in the labour market in most other countries. The political negotiatingother countries – both in Europe and the culture, where proportional representationrest of the world. has fostered a degree of pragmatism anda need for compromises, also chimes withOver time we have developed a negotiating the development in the labour market.culture in the Nordic region between This overall development has also led toemployers and employees founded on prosperous and well-functioning societies.an understanding of the value of a well- So when the Nordic model is referred toorganised labour market and where the throughout the world, one does not onlystate and the legislator have a detached think of labour market conditions, but ofand supporting role. An organisation rate the nature of our societies as a whole.that is high by international comparisons The theme of this report is not socialboth on the employee and employer side policy in general, but working life and co-has underpinned both the legitimacy and operation around it in the Nordic region.the functioning of the model. One can say But there are many aspects to working life,that a “compromise competence” has been and they cannot be clearly demarcatedbuilt up that is in contrast to relations from other areas (e.g. education, health,between the two sides of the labour migration). The democratic welfare societymarket in many other places. and the Nordic labour market model arepreconditions for each other.It is essential to understand that thisdevelopment has not taken place in The Convention Concerning a Commona social or political vacuum but in a Nordic Labour Market of 1954 was a6WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSprogressive decision that has contributed active effort to formulate a common policyto growth and employment in our and seek influence on the very substancecountries. But over the last 20 years of the European process. The desire tothere has not really been a concomitant create a more markedly Nordic effort in thefollow-up in terms of a systematic effort field of working life should not, however,towards harmonisation and integration in only be seen as a defensive endeavourthe Nordic region in the various areas of to cling on to our principles and values.working life. We should therefore explore We have good reason to react positively,ways in which common solutions can and jointly, to the interest shown inpreserve and strengthen the values that many quarters in the Nordic model. Anwe have in common and that can provide a active branding of our ways of working,response to the challenges we face today. standards and values in working life isIt is not difficult to spot the challenges: quite simply a positive proposition for theglobalisation and technological outside world.developments, structural changes in thelabour market, the difficulty of maintaining For the sake of clarity it should be notedhigh organisation rates, the flow of that in the drafting of the report it wasrefugees, global migratory pressures a conscious choice not to go into theand the side-effects of freedom of particular conditions of the public sector.movement for enterprises and employeesin Europe. The process in the EU, with the The challenges and the opportunitiesestablishment of a labour market policy for identifying new ideas that couldwhich from directive to directive – and strengthen co-operation in the Nordicfrom judgement to judgement – aims region in the field of working life can beto create common rules to secure the divided into four categories:fundamental principles of the Treatiesand the creation and protection of rights • Substantive, common Nordic topicson both sides of the labour market, has in • Institutional topics in Nordicpractice meant that the Nordic countries co-operationhave to a large extent been placed in a • The Nordic labour market and the EUreactive position, where implementation • The Nordic region in the world.of directives and compliance with courtrulings are taking precedence over a pro-7WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALS8WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSSubstantive, commonNordic topicsObstacles to cross- makes it difficult to tackle the problemthrough legislation!border freedom ofmovement All these obstacles represent real, andoften significant, inconveniences forWork to remove various impediments the citizens and companies concerned,and obstacles to cross-border freedom especially in border regions, even thoughof movement is an important part of the nationally the problems do not carryendeavour to bring about a truly common much weight. One reason for the inertialabour market in the Nordic region. in accommodating the desire for changesThe working method of the Freedom of is that in many cases it would requireMovement Council is a meaningful and thorough and fundamental changesdirect way to push for solutions to the in e.g. taxation systems to eliminatevarious problems. Just to mention some something that is a problem for relativelyof these: recognisation of professional few persons. In such cases it might beauthorisations (e.g. certified electricians) an idea to create a sort of virtual, border-and better monitoring and follow-up specific jurisprudence for a clearly definedin the other countries in cases where group of affected citizens without alteringthe authorities in one country have e.g. the overall system. If the systems cannotremoved a doctor’s licence; problematic be harmonised, but the objective isinteraction between unemployment nonetheless to remove obstacles to thebenefit rules and unemployment funds; freedom of movement, there should bestudent grants and taxation. Regarding customised, specially negotiated andtechnical standards in construction, the demarcated border solutions. As far asFreedom of Movement Council points out the Øresund region is concerned, thisyear after year that the fact that many of proposal could be referred to illustrativelythese are determined by sectoral business as a “legal virtual Hven”.organisations in the various countriesProposal 1: The work of the Freedom of Movement Council should besupplemented with an examination of the possibility to createsolutions that cut across established systems affecting limited andspecifically defined groups of persons. Such an examination mustnecessarily be a joint Nordic task on the basis of explicit supportfrom the governments.9WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSMigratory pressures co-ordinated co-operation. The absenceof an effectively administered commonIt would appear totally divorced from European refugee and immigration policyreality to talk about obstacles to freedom as a reference point does not make thisof movement in the Nordic region without easier. Nor have the Nordic countries as aincluding the pressure on our labour group so far contributed to facilitating themarkets following the influx of refugees formulation of such a policy.and global migratory pressures. Within ashort time the proportions have become The fundamental, overarching aspects ofsuch that this challenge has topped all refugee and immigration policy are beyondthe other already identified problem the scope of this report. But the factareas such as labour market training, remains that the list of challenges facingyouth unemployment, social dumping, a working life in the Nordic region remainsweakening of the organisation rate and essentially unchanged – but now with athe challenge of countering the tendency weightier layer of problems on top of it all.towards increased inequality. Our common will and ability to meet thechallenges based on the values at the coreThe consequence of this is that the area of of the Nordic model will determine whetherpolitics focused on the labour market and immigration can end up being a positiveworking life more generally has become resource in our societies. For genderone of the weightiest issues on the overall equality, and in particular for immigrantpolitical agenda. In the short term it is women, it is essential that these valuespointless to talk of “labour market policy are upheld.as usual”. It will therefore be necessaryto confront the governments of the Nordic All the indications are that earlycountries and ask them to what extent participation in working life – combinedthey wish to co-operate to hold on to the with an element of language teaching etc.basic principles in the common Nordic – is a better way forward than spendinglabour market and the values that are several years on preparatory activities.the core of the model – regardless of the Learning by doing is a good motto for theextra challenges we face from refugee and integration effort. Experience-sharing ismigratory pressures. This question needs a vital, established quality in Nordic co-to be asked both in relation to managing operation and this will also apply to theimmigration in the short term and to what way migratory pressures are handled. Butthis means for working life in the Nordic more is needed. A systematic commonregion in the longer term. effort is necessary. In the light of thecrucial importance of participation in theSeen from the outside, the way the labour market for integration efforts, thegovernments of the Nordic countries have Nordic Council of Ministers for Labourhandled the problem has not strengthened (MR-A) ought to be in the forefront of this,the picture of the Nordic region as an even though a cross-sectorial approach isentity that stands out with close, well- required.Proposal 2: A special working group should be set up under the Council ofMinisters to collect updated state-of-play reports on an ongoingbasis, carry out consolidated joint analyses (an ongoing Nordic peerreview) and present proposals and recommendations for initiatives.The working group should contribute to creating the basis for a moresubstantial and action-oriented joint Nordic political effort in linewith our fundamental values.10WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSStatistics and the formulation of joint policy. Thefact that e.g. Eurostat, the OECD andIn talks throughout the Nordic region, the ILO obviously face even greaterthere have been calls from many parties challenges than the Nordic countries infor more determined efforts to improve the producing comprehensible and directlyproduction of statistics relevant to working comparable definitions and descriptions oflife generally. There are many areas where unemployment figures, accidents at work,incompatibility creates problems, not the working environment, gender equality,just in research and education, but also conditions for persons with disabilitiesfor practical co-operation. To give a clear etc. does not make the task any easier.example of this, it has not been possibleto produce joint, unambiguously defined A number of initiatives have already beenstatistics on the number of posted workers launched in this area, but this is clearlyin the Nordic region. The Freedom of an area of work where a joint NordicMovement Council also refers to the need effort would be useful, not just for thefor better common statistics. development of Nordic co-operation,but would also be an activity that wouldIn many cases there are of course good demonstrate the capacity of the Nordicreasons why statistical definitions and countries to contribute ideas and solutionsmethods reflect particular legislative and that would be welcomed internationally.practical circumstances, and many of Although the emphasis needs to be onthese problems cannot simply be narrowed labour market statistics, an initiativedown to labour market statistics. But of this type from the Nordic countriesthe problems of statistical comparability could stimulate better co-operation moreare so real that they in themselves broadly in the endeavour to improveimpede proper exchange of experiences statistics in the international community.Proposal 3: The Nordic governments should set up a steering group involvingrelevant expertise from authorities, universities and the socialpartners, initially to draw up a problem list of shortcomings andtechnical criticisms, and subsequently draw up a priority list of theseand present proposals to achieve better quality and compatibilityin labour market statistics. Ultimately, this work should link intothe work in the ILO, OECD and EU on improving the production ofstatistics. Co-ordination and support for the work of the steeringgroup should be provided by the Secretariat to the Nordic Council ofMinisters.11WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSWorking environment relatively few dedicated experts in thefield in the individual countries, it wouldThe working environment is set to become also be right both professionally anda key problem area in working life in politically to strive for better co-ordinationthe future and also something that will of activities and projects in this domain.place greater demands on the interplay Authorities, researchers and organisationsbetween the social partners and the state. ought to prioritise projects of joint interestLater retirement, faster technological when they work together. Networks aredevelopment and global competition will good, but in the Nordic region more ismean efforts to achieve a good working needed.environment must be prioritised if qualityof life is to be maintained at the workplace. The work in the EU’s expert committeesis of great practical importance for theGreater Nordic co-operation is advisable requirements, limit values etc. adoptedon three issues in particular in the working in the working environment area viaenvironment area: the psychological directives etc. The Nordic region hasworking environment, enhanced joint considerable potential expertise spreadNordic efforts in work in the EU’s expert over various institutions and researchcommittees which set standards, limit environments in the countries, and veryvalues etc. and a review of experiences many meetings take place in the variousof labour inspection in the working specialisations within the workingenvironment area. environment area. A more organised andtargeted effort between these networksThe Nordic Institute for Advanced Training and the authorities in the Nordic regionin Occupational Health (NIVA) has could strengthen our influence andconsiderable competence in facilitating furthering our interests in the ongoingand educating health and safety experts work in the EU.and practitioners, including labourinspectors, and in further education. The As regards inspection, three particularinstitute would be a valuable component in questions emerge: the quantitativeimplementing cross-sectoral initiatives in effort, self-monitoring and inspection asthis area. an inspection method and the effect onmaintenance of quality and the scope ofThe psychological working environment supervision in the light of the increasedneeds to be upgraded, both perception- use of subcontractors, temporarywise, in terms of research and politically employment agencies and the growthThe role of the state in relation to the in independent self-employment. In thissocial partners in this area and the right context the interaction between labourof inspection bodies to intervene more inspection and other authorities suchauthoritatively in psychological working as the tax authorities and the policeenvironment versus the autonomy of is fundamental. A joint, continuallybusiness management varies from one updated Nordic database of particularlyNordic country to another. This makes problematic cases and a comparativethe psychological working environment review of the situation in the three areasan obvious area where Nordic legislation listed here could be useful.could be harmonised. Since there are12WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSProposal 4: The Council of Ministers should decide to upgrade efforts regardingthe psychological working environment. The possibility of true Nordicharmonisation of legislation in the area should be studied, putting thepsychological working environment on an equal legal footing with thephysical environment. In any case a joint Nordic working programmeshould be developed to gather best practices, identify and developmore structured forms of co-operation in the area in the Nordic regionand involve the Nordic region in a more sustained and pro-activemanner in co-operation in this area in the EU.The Working Environment Committee under the Nordic Committee ofSenior Officials for Labour should draft proposals for enhanced Nordicparticipation in and shaping of the work in the EU’s expert committeesin the working environment area.Exchanges of experiences between ministers on inspection of theworking environment should be supported by independently producedproposals for thematic discussions with particular emphasis on thethree issues raised here.13WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSGender equality quantitative and qualitative updating ofthese facilities would enhance genderLower wages remain a reality for women in equality in the labour market – not leastsome areas of employment. The problem for female refugees and immigrants.is not being alleviated by the tendencytowards lower organisation rates and the The introduction of mandatory adult“crowding in” effect on the worst paid and further training as proposed in thisand worst educated section of the labour report could contribute to reducing themarket. The structural background to this educational and career lag that manyis of course general and not specifically women experience compared to their maledirected against women in the labour colleagues.market. But it is a factor that prolongs andintensifies the problem of discrimination, A particular aspect of significance forand therefore deserves attention. With gender equality is the relatively lower levelthe current migratory pressures and the of diversity in the economic structure andchallenge of integration into the labour thereby in the educational make-up in themarket, a particular need has arisen to peripheral regions in the Nordic countries,ensure that the position of women does first and foremost Greenland and the Faroenot end up in a sort of gender-policy Islands, but also Iceland. Again this is notcultural blind alley blocking gender something that is directed solely againstequality in the longer term. For this the situation of women, but something thatreason too we should remind ourselves in practice complicates gender equality inof the positive gender equality impact the labour market.that e.g. the presence of well-staffedchildcare facilities has had for the positionof women in the labour market. A criticalProposal 5: The gender equality issue should be prioritised in a fully horizontalmanner in co-operation in working life in the Nordic region.14WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSStructural changes and powerful singles” – to pursue theirinterests independently of employers’the representativenessorganisations – regardless of whetherof organisations they are members of them or not. All in all,therefore, both sides of the labour marketAlthough there are differences between face a common challenge in maintainingtrade union organisation rates in the the authority and legitimacy of theirNordic countries, a common feature is that central role in the negotiating model.a number of factors have contributed to a Notwithstanding the natural conflicts ofweakening of the high organisation rate interest that constantly define the contentthat characterised industrial society in the of negotiations, there is a recognition ofyears when the Nordic welfare societies a joint responsibility to maintain a statewere being created. The rise of a highly of affairs in the labour market where it isdiversified service sector and the growth possible to make binding agreements thatin small companies in communications, ensure stability and predictability, andconsultancy etc. have altered the classic where this way of defending respectivestructure in the labour market. Moreover, interests also forms the basis forat least in one of the Nordic countries, considerable joint influence on socialcompeting professional organisations policy more generally.have emerged which offer members acheaper alternative, but do not cover There is an extensive Nordic network andthe spectrum that the traditional bodies co-operation both on the employees’offer in the form of real negotiating power and employers’ side, even though actualin collective agreements and a range negotiations are naturally conducted moreof services in areas like the working or less centrally on a national basis. Co-environment, further training etc. An operation between employers is informalincreased tendency to use temporary rather than extrovert in nature, but isemployment agencies and subcontractors, clearly structured. On the employees’ side,and the varying commitment of foreign the Council of Nordic Trade Unions (NFS)companies, has also fragmented the represents a more formalised and explicitlabour market, especially in certain organisational culture. Whilst the pressuresectors such as construction. Finally, on representativeness described aboveimmigration, both from EU countries and is generally recognised as a worryingbeyond, has increased the supply of only problem politically, in keeping with thepartially integrated labour, especially at basic agreement that it is not for the statethe bottom of the qualification hierarchy. to determine organisational arrangementsin the labour market, this is in principleStructural changes have affected the a challenge that the organisationsclassic situation on the employers’ themselves must address. It is importantside too. Today it is a major challenge to recognise, however, that the existenceto unionise many companies in new of representative organisations in thesectors where the culture and perhaps labour market that are competent toalso the relationship between owners negotiate can in fact be seen as a resourceand employees is different than in that in many contexts, both generallyindustry. Additionally there is a tendency and in tandem with the state and thefor large international groups – “the legislative authority, enables solutions in15WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSthe Nordic region that are not possible in Distance work, not least IT functions,societies where similar conditions do not communications and various forms ofprevail in the labour market. consultancy, are performed on the basisof more or less formalised contracts, butIn practice there are a number of areas typically without security for these self-where legislation and administration employed persons as regards terminationdirectly affect the background and of the employment relationship,opportunities for strengthening pensions, parental leave, holiday payorganisations’ representativeness, or many other rights which are settledprimarily on the employees’ side. Taxation in regular employment relationships,rules in relation to unemployment fund where professional organisations andand trade union subscriptions are an the exercise of regular employer’sexample of this. Differences of this responsibility is the employment context.type are typically treated as variants of Many service areas are increasinglyobstacles to cross-border freedom of dominated by a working life that doesmovement, but are in this context rather not necessarily lie within the confinesobstacles to organisation. In a number of of the formal economy, which is in itselfrespects this can naturally also be seen as a serious societal problem. Many –a politically controversial problem area. especially the more affluent – simply seeBut to the extent that we take seriously this development as a private matter, andthe importance of retaining the value something that is felt is consistent with aand the functioning of the Nordic labour desire for freedom and independence. Butmarket agreement model, we must also the reality is that most of those who endacknowledge that there are areas where it up in the “self-employed” category do sois meaningful to contributing politically. out of necessary due to the difficulty ofAnd inasmuch as we would like labour getting a regular job, not as a preferredmarket co-operation in the Nordic region alternative.not just to be about the common labourmarket as such, but also about there There is a huge divide between thebeing a common challenge in Nordic co- situation of a highly educated academicoperation to contribute to the quality of with special qualifications and thethis, it would be appropriate to look at the predicament of most others in this growingways the countries and their co-operation market of day-labourers. Without thecan strengthen representativeness in the security that a classic organisation givesagreement model in the dialogue between the members of a trade union, a growingthe governments. group of self-employed persons will overtime put the public social security systemTo an even greater extent than the under pressure. At the same time, furtherfactors flagged up here, technological erosion of trade union membership andchanges, structural changes in the fragmentation of the organised employer’seconomy and not least the emergence role will weaken the authority of bothof new forms of organisation of working parties in the exercise of their jointlife are contributing to the erosion of responsibility for stability in the labourorganisations’ representativeness. market. All in all this is a developmentIndividuals perform tasks for companies that conflicts with the values we wish towithout any regular employment safeguard in the Nordic labour market.relationship being established.16WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSThis development has attracted a great Even though new trends tend to attractdeal of attention internationally. In a major disproportionate attention, there isproject entitled “The Future of Work”, the nothing to indicate any let-up in theILO proposes focusing on these issues fragmentation of the labour market.as a key topic in connection with the Therefore it is a challenge, especially forcommemoration of the organisation’s the trade union movement, to develop100th anniversary in 2019. The OECD new forms of organisation and servicesis also putting considerable resources for the diverse group of self-employedinto the area. Both organisations see the persons to make the individual’s situationgroup of Nordic countries as a welcome secure even if he or she is not employedand important partner in efforts to find at a workplace as with traditional wagesolutions to the problems entailed by earners. In the quest for ideas to developthe fragmentation of working life. The this sort of hybrid organisation, oneEU Commission also considers this could look to the ways in which e.g.development as something that further freelance journalists, artists and similarcomplicates efforts to achieve stable and independent operators are organised.orderly conditions in the European labour The state’s role ought to be to supportmarket through a broad-based dialogue organisations’ work by finding solutions towith the social partners. these challenges so as to ensure a workingbalance between the public social systemThe trade union movement is based on the and the conditions in this different part oforganisation of wage earners at workplaces the labour market.and safeguarding their interests throughcollective agreements with employers. “Self- Employers will face a similar challenge inemployed” in its various guises does not filling the organisational vacuum createdfit into this model. Another complicating by the fragmentation of the economicfactor is that there is a degree of uncertainty structure. It is essential to underlineamong employers as to how to respond that society’s overall interest in theto this phenomenon, which is moving development of new, more appropriate andeconomic activity away from well-defined flexible forms of organisation implicatesstructures, and which is also hard to square employers’ and employees’ organisationswith companies’ efforts to highlight their to an equal extent.Corporate Social Responsibility. One couldterm this employers’ “Organised SocialResponsibility”.Proposal 6: On the basis of preparatory work in the Nordic Committee ofSenior Officials for Labour, the ministers should discuss specificlegislative conditions, including taxation, which may curb therepresentativeness of labour market organisations. Together withthe Secretariat and the social partners in the Nordic region, theNordic Committee of Senior Officials for Labour should draw up aproposal for a thematic discussion between the ministers with thefurther goal of arriving at a list of ideas for use in efforts in the Nordicregion and internationally to adapt to the demands we face from thefragmentation of working life.17WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSEducation and training The problems of the large group of youngpeople who do not make progress in theThere is general agreement in all the education system after leaving schoolNordic countries that more education is naturally the subject of considerableis a crucial part of the response to the attention in all the countries. It is notchallenge posed by globalisation, the intention to go into details about thedigitalisation and technological advances various areas of education and trainingin general. This is not just in relation to the in this report on working life in thecompetitiveness of industrial society, but Nordic region. But a broad-based generalis equally central in a services-oriented approach is essential in order to create aknowledge society. The combination higher baseline in the labour market. Thisof rapid technological changes and a is both because this will deliver a betterprogressively higher retirement age starting point for involving this labourfurther increases the need for something market category in further training, andnew in the education area. On top of partly because migratory pressures simplythis there is the general extra pressure mean that there is no alternative to makingon capacity in the education system major efforts in this area.from migratory pressures. Maintaininghigh levels of prosperity and a humanly To prepare ourselves for the future we needsatisfying working life that can be to think out of the box in education andexpected to be longer than today are training.It would be a visionary decisionpremises that we largely take for granted if the Nordic countries, jointly and withas part of the Nordic model. But for the the involvement of the social partners,Nordic countries to be able to maintain developed a model for putting into practicetheir position in global competition in the the principle that adult education andfuture, something else is required within in-service training will be a mandatoryeducation and training, and not just more element of working life. The creation of theof the same. The challenge is not to work common Nordic labour market in 1954 washarder, but to work smarter. not a routine decision either. There will bemany misgivings, conflicts of interest andThe observation that more ambitious not least great difficulties in the allocationefforts are required in the field of of costs and rights regardless of whateducation is nothing new. Considerable models are envisaged for this. Owingresources are devoted to adult education to the duration of training initiatives,and in-service training, often closely there should naturally be a progressivelinked to companies’ or institutions’ needs approach as regards the level of ambition.and run by them, but also in the form of But something of this type, somethingemployees’ right to in-service training as that affirms our societies’ capacity fornegotiated between the social partners. innovation and can lift the Nordic countriesThe general picture is that academics, by into a winning position in the globalvirtue of the nature of their work, are more competition, deserves to be tried.involved in continuing training throughoutworking life than other groups, but there One can imagine two basic models inis also an increasing tendency for skilled the attempt to make this vision a reality.workers to complete training that moves The systemically most ambitious wouldthem up the skills hierarchy. be a joint development project decided18WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSby the Nordic Council of Ministers and based on an organic and less controlledwith a joint Nordic steering group with increase in agreements between thethe participation of the social partners, parties that would progressively coverwhere pilot projects in the various more and more of the overall labour market,countries comprising various parts adapted to the many different conditionsof the labour market could be used to that prevail from sector to sector etc. Thetest their feasibility and to determine role of the state in this model would bethe costs. The public sector needs to to facilitate and economically encourageaccept this approach as a necessary this development. The role of Nordic co-and forward-looking continuation of the operation in this model would be to bringinvestment in education and training together initiatives and agreements,that has been the pattern hitherto. After ensure immediate exchange of experiencesall, the fact that children and young and stimulate the dissemination of bestpeople need to be educated, and that practices.society has a responsibility for this,has not been controversial for over 100 Regardless of which model might beyears. The involvement of labour market decided by the governments, the veryorganisations will be essential – not fact that something of the sort is beingleast because it is they, consistent with launched in the Nordic region wouldthe negotiated basis of the evolution of contribute to increased understandingworking life, who will be able to ensure a of the potential we have in the innovativebalance between obligations and rights in negotiating culture in the Nordic model.such a system, as well as the relevance of Just as the Nordic countries were in thethe content of mandatory adult training. forefront in 1954 with the creation of ajoint labour market, today we ought to beThe other basic model is perhaps less in the forefront in meeting the challengessystemic and ambitious and would be of the future.Proposal 7: The Nordic governments should commit to the principle of introducingmandatory adult and continuing training for everybody in the labourmarkets in the Nordic region and, together with the social partners,should decide to implement experimental activities via joint pilotprojects as described here in the two basic models for implementationof the principle.In connection with this necessary upgrading of education and training as a more systematicand integrated part of working life in the future, it will be important for society and thesocial partners to show responsibility and solidarity to that category of citizens who quitesimply are unable to keep up, for whom the requirement of upskilling is perceived moreas a threat than an opportunity. It is politically incorrect to say it, but it is disingenuousto claim that everybody can be educated to fulfil a productive and meaningful role in thelabour market of the future. In tandem with the competitive demands of digitalisation,technological advances and globalisation, we must be prepared for the likelihood that thisresidual group will increase, and society must prepare to provide these citizens a secureand decent existence. It is of course not easy to define the boundaries of this categoryin terms of labour market policy and social policy. The point is, however, that the easyanswers that “everybody can do something, everybody can learn something and must havea job” are not necessarily either realistic or especially humanely compassionate.19WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSThe western Nordic The limited diversity in these relativelysmall economies, which are dominated byregionthe fisheries sector, means that the needfor job creation at all levels is especiallyFor reasons of geography and the economic important. Moreover, relatively extensivestructure, the labour market conditions in commuting, or more or less permanentthe Faroe Islands, Iceland and Greenland migration, to jobs in the Nordic countriesare radically different from the situation in (e.g. workers from the Faroe Islands in thethe rest of the Nordic region. But training Norwegian oil industry or construction)young people and efforts to combat youth makes planning or initiatives moreunemployment are a familiar challenge complicated. As indicated above, thethroughout the Nordic region. Many young economic structure in the western Nordicpeople leave for other countries – both in economies may also be a factor affectingthe Nordic region and beyond – for higher gender equality.education, and many do not return. Theco-operation in distance learning in legal In relation to the Faroe Islands, Icelandtraining between the University of Aalborg and Greenland, language may act as anand the universities in Greenland and obstacle to educational and occupationalthe Faroe Islands could be an example of integration in the rest of the Nordic region.actions to lessen this trend.Proposal 8: The particular challenges that exist for job creation in the westernNordic region should be the subject of a special study conducted incollaboration between the Nordic Committee of Senior Officials forLabour and the Secretariat, the conclusions of which should form thebasis of the ministers’ deliberations and the positions adopted.20WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALS21WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALS22WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSInstitutional topicsCo-operation in the working life area in as being amongst the most importantthe Nordic region is characterised by a and valuable elements. At the samecomprehensive and multifaceted network time this emphasis may be interpretedof relations on many levels. Indeed it is as an expression of the absence of astriking in the co-operation between the higher political level of ambition in theNordic countries that this is something co-operation. Before we look into this,that is replicated in all areas, also beyond it should be noted in all fairness thatthe co-operation that takes place under multifaceted Nordic co-operation as wethe auspices of the Nordic Council of know it is something that has not beenMinisters and the Nordic Council. built up in most regions of the world andis something that many envy us for. It isOn all levels – ministers, the committees an immense resource to be able to discussof senior officials, the labour market problems and ideas between neighboursorganisations, the relevant administrative who, despite certain differences, canbranches related to the labour market and understand each other because they haveuniversity researchers – exchanges of much in common. This provides the basisexperience and informal and direct forms for genuine and relevant experience-of co-operation have been emphasised building and innovation transfer.23WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSNordic Council of where for example adoption of the minutesof the previous meeting resembles aMinisters for Labourmomentous decision. The tendency tofill up the agenda with items that neitherA specific objective of this review of stimulate debate nor entail decision canworking life in the Nordic region is also make the meeting invitation lookhowever to make proposals to strengthen important, but in reality acts as a timeNordic co-operation. Therefore the waster, and is anything but motivating forlevel of ambition and working method the ministers’ personal commitment andof the Council of Ministers naturally investment in active participation in thecall for closer discussion. It should be meetings.emphasised here that the Nordic Councilof Ministers for Labour cannot be expected Given the reality of both the formal andto differ essentially from the other sectoral political setting of the co-operation in theCouncils of Ministers as regards its formal Nordic Council of Ministers, therefore,possibilities and limitations in terms of it is not appropriate to measure thedecision-making powers. productivity of a Council of Ministers bythe number of decisions it makes thatIt is striking that in the institutional image are directly applicable throughout theof the co-operation all sides would like Nordic region. By contrast, it makesministerial meetings to be characterised perfect sense to measure the productivityby more substantive political themes, of the co-operation by the quality of thedebates and decisions. This desire is discussions between the minsters directly,not new, but it seems as if everyone is by the initiatives they decide to launchresigned in advance to the view that together and by the ministers’ collectivewhen it appears unrealistic to expect commitment to implement these. At theclear, directly binding decisions from risk of being misunderstood, it is hardthe ministers, not much can be done to to put it better than that it comes downimprove the political productivity in the to making the meetings between thesystem. Comparing the Nordic Council ministers a “good club” rather than anof Ministers for Labour and the Councils over-formalised meeting machine. The wayof Ministers in most other sectors, to increase the political relevance of thehowever, it must be borne in mind that the Nordic Council of Ministers for Labour isreality and political working conditions to make participating in this co-operationof a minister for labour are to a large an attractive, meaningful and necessaryextent defined by the interaction with part of the ministers’ use of their time. Inlabour market organisations, whether this context it will be necessary in all areasin formalised tripartite negotiations of co-operation to take a pragmatic andor in ongoing consultations on e.g. unsentimental approach to the languageimplementation of EU directives or a problem.variety of other issues. Furthermore, thisinteraction is in practice shaped by the A prerequisite for this is meaningful andway matters related to working life are jointly prepared briefings for the ministersdealt with in the country concerned. and a degree of boldness on their part toraise the ambition level in the co-operation.Therefore it is somewhat too facile to The decision to carry out the presentclaim that what is lacking is quite simply analysis of working life in the Nordicpolitical will. There is a common tendency countries with a view to strengtheningin international organisations (and not Nordic co-operation in this area can be seenonly there) to compensate for the absence as a sign that the ministers have taken theof interesting genuine political discussion first step in this direction.by formalising the agenda to the point24WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSProposal 9: The agenda for ministerial meetings should be divided into A points,which are not expected to give rise to discussion, and B points, wherediscussion and possibly decisions are anticipated. This division shouldbe made in the Nordic Committee of Senior Officials for Labour, whereahead of the meetings the senior officials ascertain on behalf of theirministers what points there is agreement on. There should be morescope than hitherto for thematic political debates between the ministerson the basis of presentations produced in broader co-operation.There are three principal actors in the organisation of meetings between the ministers: theminister for labour in the country holding the Presidency, who will typically have drawn upcertain priorities in connection with the country’s overall programme for the Presidency.The Nordic Committee of Senior Officials for Labour (EK-A), where officials provide technical/political speaking points for their respective ministers, which then guide the substance of thediscussions. The Secretariat of the Council of Ministers has traditionally had a predominantlylogistical and practical support function in the working life area, but the desire for a morerobust highlighting of the cross-cutting, joint Nordic perspective suggests that the Secretariatplays a more substantive role in preparing ministerial meetings, in line with the argumentsset out in the “New Nordic Region” report. Thus there will be a need for closer co-ordinationbetween these three bodies in conjunction with an upgrading of the Secretariat’s role.The work of the various committees under the Nordic Committee of Senior Officials forLabour should be better integrated into the ministerial meetings. These are: the legal NordicIndustrial Relations Committee, the Labour Market Committee and the Working EnvironmentCommittee. The committee on migratory pressures proposed in this report should form partof this process. Above all, the particular legal expertise in the Nordic Industrial RelationsCommittee should be brought to bear as a fundamental element in the activity described inproposal 12 on the legislative process in the EU.Proposal 10: The Secretariat of the Nordic Council of Ministers should exercise amore substantive, initiating and co-ordinating role in the preparationof ministerial meetings, both to ensure better coherence andincorporation of the work in the various committees under the NordicCommittee of Senior Officials for Labour and to strengthen thecommon Nordic dimension in the ministers’ discussions.An unavoidable problem in connection with the whole thinking behind this analysis willnaturally be that a higher level of ambition for Nordic co-operation in the working lifearea, as expressed in this report and in line with the mandate, must necessarily entailincreased resources. The ministers for labour cannot be expected to deliver this alone. Thegovernments must address the need to create a balance between the ambition in Nordicco-operation and the resources provided for it.Proposal 11: The governments must address the need to ensure adequate andstable financing of more ambitious Nordic co-operation in the workinglife area.25WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALS26WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSThe Nordic region in the EUDescription world) in that they have a structure inthe labour market with well-definedThe endeavour to build up a labour and representative actors both on themarket policy in the EU through a common employers’ and employees’ sides, wherelegislative process is a justified and the state has a relatively detachedlogical consequence of the consolidation role, and where the agreementsof the single market. Making a reality of negotiated by the parties are respected.freedom of establishment for companies In contrast, many other countries areis a clear bonus for Europe’s economic characterised by a fragmented and weakdevelopment. Safeguarding the rights organisation structure on both sides ofof migrant workers whilst maintaining the labour market – or an imbalance inrespect for collective agreements and the relationship between them – andrules in general in the Member States’ a tradition for the legislature to decidelabour markets is an equally essential many of the conditions that in the Nordicprecondition for attaining a well- countries are determined throughfunctioning single market. Striking the negotiations between the parties.right balance between these factors isnot merely a technical/legal challenge Therefore the fact that the legislativebut also a matter that in many ways is process in the EU is being used to createcharacterised by classic, conflicting a common legal basis for labour marketinterests. policy is seen as a natural and welcomeapproach to secure rights and defineA direct comparison between the a certain balance between the variousprerequisites and conditions for the conflicting interests and views. Seencreation of the common Nordic labour with Nordic eyes, however, this process,market and the joint European labour regardless of the content of individualmarket, which following the EU’s directives, is seen as a threat to the coreenlargement in 2004 includes Member of the model we have built up. ThereStates with very different economic and are therefore two layers of questions tosocial starting points, illustrates both address in the relationship between thewhy it is complicated to create a broadly Nordic model and the legislative processaccepted balance and why in most Member in the EU: the role of the state in relation toStates there is a well-founded interest in freedom of contract between the partiesbuilding up a Community-based labour and the specific substantive aspectsmarket policy. concerning the content of the directivesand their implementation. In both respectsThe Nordic countries differ from most there is a need for the Nordic countriesof the rest of the EU’s Member States to jointly play a more pro-active role to(and for that matter from the rest of the safeguard our viewpoints and interests.27WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSThe question of the relationship between they implement them. Considering thethe state as legislator and the parties’ interests attaching to the entire subjectfreedom of contract goes beyond a matter matter, and considering the piecemealof principle about institutional power nature of legislation, it is no wonder thatrelations. At the workplace, it makes a real cases are continually being brought beforedifference whether an employee can get the European Court of Justice, whosesupport and assistance for mediation from rulings in reality ultimately determinehis or her shop steward and trade union, the content of the EU’s policy and legalor is forced to seek legal counsel and go to position in the labour market area.court, with the negative consequences thiswill inevitably have, both for the continued Therefore the process contributes to aemployment of the person concerned and shift in the balance between the parties’for the company. The agreement system freedom of contract and the state asalso has considerable advantages for legislator, with the judiciary gaining aemployers in the form of no-strike (and central role in defining applicable law.no lock-out) clauses and stability. Joint This is not unique to labour market policyownership of agreements by employees in the EU, but is a construction that wasand employers and the existence of a created on purpose in order to allow forspecial system of industrial relations both mediation and decisive action in thebased on respect for this creates the basis complicated ongoing integration process,for trust that is anchored in a different way, and which has generally served Europeanand works better in practice, than if the co-operation well. But the contrast,state has dictated the rules. especially in the labour market area,compared with the Nordic model is clear.Labour market policy in the EU requiresunanimity in the Council of Ministers. The EU Court of Justice bases its rulingsWhilst the Commission has its right of on the treaties – including the preambleinitiative, it does not have the same to the Lisbon Treaty on human rightscompetence in this area as in e.g. trade – and interpretation of legislation inpolicy or other areas. It is therefore the form of directives and regulations,necessary to navigate through a more and it is entirely legitimate for it tofragmented and situation-specific process emphasise that the rulings are designedusing “open co-ordination”. It is very to strengthen the fundamental principlesdifficult to find unanimity for regulations, for the development of the co-operation inwhich are directly applicable in the Europe.Member States. Directives, which containa degree of flexibility in the way individual The EU Court of Justice, however, is notMember States transpose and implement alone in issuing rulings affecting thethem in national law, are thus naturally labour market in Europe and the Nordicthe dominant legal framework for the region. Norway and Iceland, like thelegislative process in European labour other EEA countries participating in themarket policy. It is the Commission’s job EU’s single market, are obliged to complyto monitor that the Member States uphold with virtually all the rules adopted in thethe aims and substance of directives when EU. Compliance with this requirement28WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSby the EEA countries is monitored by In the light of the piecemeal nature ofthe EFTA Secretariat in a parallel to the directives and the very loosely wordedCommission’s role in the EU. Cases can be principles in the treaties and human rightsbrought before the EFTA court, which then texts as well as the specific background toalso interprets EU legislation and issues the cases that emerge as a consequencefinal rulings. The third court that issues of the lack of clarity in Member States’rulings on labour relations matters is the implementation of directives etc., itEuropean Court of Human Rights, the legal must be said that the situation does notbasis of which is the European Convention correspond to what one would expect theon Human Rights, which deals with judicial authority to look like in a well-matters including the right to organise. organised democratic political system.Individuals can bring a case before the But no-one makes an issue of this outCourt of Human Rights after the national of respect for the independence of thejudicial bodies have been exhausted. courts. Nor does this report contain anyproposals for specific initiatives from theAll three courts issue final rulings and Nordic ministers for labour on this point.do so entirely independently of each But it is both legitimate and relevant toother. One could object that whilst the lay bare the situation – not least becauserulings might be final, the EU always the Nordic countries, with their somewhathas the possibility to amend legislation different status as regards the legislativesubsequently and thereby have the last process in the labour market area inword. But in any event such corrective Europe, must comply with the rulingsfine-tuning takes quite some time and of the three courts, and because theseis no easy matter to complete; all the rulings directly or indirectly affect theopposing interests naturally re-emerge. particular balance between the state andThe current process on a revision of the the social partners, which is a crucial partPosting of Workers Directive is a clear of the core of the Nordic model.illustration of this.29WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSWhat can the Nordic One of the many persons I spoke to in thework with of the report said of the Nordicregion do?region in an international context: “Itis difficult to be different”. Managing toThe governments of the Nordic countries gain understanding and respect for theand the social partners already invest core of the Nordic model requires jointconsiderable resources in monitoring efforts of a more general and sustainedand exerting influence on the legislative nature. This applies in relation to the EUprocess in the EU. This work is done in the and in relation to the world beyond. It is aIndustrial Relations Committee (NAU), pedagogical challenge, in which nuancesthe ministries in the capitals and the and differences between countries in therepresentations in Brussels. However, labour market area naturally have to beefforts seem to have centred on each explained, but where the emphasis mustNordic country highlighting the particular be placed on presenting the value of aconditions in its labour market policy, labour market where there is faith that theand attempting to gain understanding parties’ agreements will hold, and whereand consideration for these from other in practice their ability to compromisecountries. What constitutes the legitimacy represents a resource for society – bothin this form of optimisation of influence economically and in terms of stability. Theis typically that very specific elements Commission’s revived Social Dialogue inof a proposal can be pointed to that will the EU is an obvious forum where Nordiccause significant practical problems in employers and professional organisationsthe country’s existing situation, without can contribute to understanding andthese elements being central to the aims of respect for the Nordic model.the proposal as a whole. This is a form oftechnical/political consultancy of mutual As regards the more specific domain ofinterest. the legislative process in the EU, a moremarkedly joint Nordic approach would addGoing it alone like this may be justified a substantial and pro-active dimensionin the light of nuances in the way the to the countries’ individual efforts. Itvarious Nordic countries implement is not a matter of either-or between andirectives, for example, and also it may organised joint effort and the countriesbe easier for the countries to put their working individually. But it is necessaryviews across individually in a more for the interests of the Nordic region toselective and network-based dialogue in be safeguarded more robustly, – notthe complex decision-making structure just to avoid rules being adopted thatin the Commission, Parliament and in undermine the way the Nordic labournegotiations in the Council. The limitation markets function, but also so that thein this method, however, is that it is principles, whose value and viability wemostly a reactive and also typically have demonstrated, are given weight indefensive approach, and an approach the future policy formation in the EU.that does not permit a more general andstrategic dialogue on the principles in the There is a need therefore both for generallegislation. And the main problem for the visibility – or branding – of the core of theNordic countries in the legislative process Nordic model and a targeted and more pro-in the labour market area in Europe is active joint defence of Nordic interests,to create better understanding of the both through the Social Dialogue and infundamental principles, or the core, of the legislative process in the EU.the Nordic model, so that we are not facedwith greater and greater challenges withone directive after the other.30WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSProposal 12: Following consultations with Nordic employers’ and employees’organisations, the ministers for labour should decide in principleto organise stronger joint branding of the core of the Nordic labourmarket model in an ongoing effort designed to create greaterunderstanding and respect for it both in the revived Social Dialoguein the EU, in the pre-legislative work in the Commission and inmore robust pursuance of interests in the negotiating process inParliament and in Council following submission of a Commissionproposal.31WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSThe Nordic region in the worldInternational Labour and represents an impediment to theconstruction of a regular contractual labourOrganisation (ILO)market, where the obligations and rights ofboth employers and employees are set outThe International Labour Organisation clearly. In 2017 the ILO will organise a panelwill celebrate its centenary in 2019. The on the representativeness of the socialILO has been enormously important partners, which is an illustration of theglobally through its normative work in the fundamental importance accorded to theconventions, in resolutions of disputes creation and maintenance of well-organisedin the expert committee and in project labour markets.work on capacity building, not least indeveloping countries. The Nordic countries The ILO welcomes the active commitmenthave played an active role in the ILO over of the Nordic countries in a dialogue onthe years, not least because the aims and this challenge. Since the labour marketworking methods of the organisation, with model in the Nordic region functions welldirect participation of the employer side by international comparison, there is anand the trade unions, dovetails well with expectation that we in particular will havethe characteristics of the labour market an input of ideas into the “Future of Work”-in the Nordic countries. There is already a process.well functioning co-operation between thediplomatic representations of the Nordic The same applies in the area of statistics,countries at the ILO in Geneva, which could where closer co-operation with the Nordicserve as a starting point for more intensive group is welcomed.co-operation between the Nordic countriesand the ILO. When discussing the attractiveness of theNordic model and its possible applicationThe ILO’s “Future of Work” centenary round the world, the ILO is a naturalinitiative contains thorough analysis and platform for showcasing both freedom ofcomprehensive debates on the world of contract as the core of the model and thework. A fundamental part of this project variations that exist from country to countryhas to do with the representativeness of in the Nordic region, and the broader socialclassic forms of organisation in the labour policy preconditions, both historical andmarket in the light of e.g. technological cultural, that are related preconditionschanges, global competition and for the existence and functioning of thesectoral shifts in economic life, with a model. What is interesting in a joint Nordicrapid increase in “self-employment” or commitment to this discussion is theinformal single-proprietor arrangements extent to which Nordic experiences canwithout the security and clarity for the be selectively transferred and adapted toindividual that are part of the traditional other countries that see the Nordic modelemployment relationship. Not least in as an inspiration. However difficult thisdeveloping countries – but to a large discussion is, it will be meaningful for ourextent also in developed countries – this own self-image and for the sustainability ofinvolves a blurring of the border between the model in a globalised world, where it isthe informal and the formal economy difficult to be different.32WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSProposal 13: The Nordic Council of Ministers for Labour should intensify co-operation with the ILO as part of the “Future of Work” project, workto improve labour market statistics internationally and the generaldialogue on dissemination and understanding of the fundamentalprinciples in the Nordic model. This work should be conducted inthe broadest possible context in close co-operation with Nordicemployers’ and employees’ organisations.33WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALSOECD older population make-up; the growthin mental problems in working life; theThe OECD has a fundamental role in the fragmentation of working life (the self-ongoing international debate on the employment challenge), where the OECDprinciples and nature of economic policy has launched a systematic analysis;in developed countries. The organisation improved statistics, where the OECDis both a highly qualified institutionalised welcomes closer co-operation with thethink-tank and an actor which in its Nordic region; the education and trainingcountry examinations voices criticism and area, where a high priority is givenrecommendations on member countries’ to reforms of adult education; and aneconomic policy generally. There is a initiative to extend national GDP modelsclear acknowledgement in this work (“Better Life Initiative”) to include factorsof the difference that exists between such as human well-being, social securitythe American/Anglo-Saxon economic etc. in a more qualitative calculation thanmodel of society and the Nordic welfare the traditional GDP measure.societies with their negotiating model inthe labour market, which thus represents All this speaks in favour of resources beingan alternative in the international put into a direct and active involvement indebate on economic principles. It is these areas in Nordic co-operation in thealso acknowledged that the economic OECD – both to facilitate a qualitativelyachievements of the Nordic countries direct input into joint policy developmentcontribute to stimulating interest in the in the Nordic region, and so that the ideasNordic model. and views that have their roots in theNordic model are fed into globally orientedThis of course makes the OECD an policy development in the OECD. Co-important partner of the Nordic countries operation between the Nordic region andin general in the endeavour to create the OECD both generally and in these areasinternational understanding for the way should be followed up by substantivein which our societies – and not least thematic discussions at the meetings ofthe labour market – operate. But, in the Nordic Council of Ministers for Labouraddition to that, the OECD’s analytical and on the basis of co-operation between theinspirational work in a number of areas Nordic countries’ representations at theis of direct interest for the challenges we OECD Secretariat and the departments atface in the Nordic labour markets: the home and prepared and co-ordinated byconnection between labour market trends the Secretariat.and the demographic trend towards anProposal 14: The Nordic Council of Ministers for Labour should decide toupgrade Nordic co-operation in the OECD, both in the dialogueon fundamental principles in economic policy and the manyfundamental areas relevant to labour market policy indicated here.In view of the horizontal aspects of these problem areas, preparationof the subsequent thematic discussions in the Nordic Council ofMinisters for Labour should be co-ordinated by the Secretariat.34WORKING LIFE IN THE NORDIC REGION – CHALLENGES AND PROPOSALS35Ved Stranden 18DK-1061 Copenhagenwww.norden.orgWorking life in the Nordic region – Challenges and proposalsApart from a number of differences between the countries in the Nordicregion as regards the structure and policies of their labour marketsgenerally, there is a core of common types of employment, standards andvalues which together define the nature of working life and labour marketpolicy in the Nordic countries so that one can speak of a “Nordic model”,which in fundamental areas is distinct from conditions in the labourmarket in most other countries – both in Europe and the rest of the world.The challenges and the opportunities for identifying new ideas that couldstrengthen co-operation in the Nordic region in the field of working lifecan be divided into four categories:• Substantive, common Nordic topics• Institutional topics in Nordic co-operation• The Nordic labour market and the EU• The Nordic region in the world.ANP 2016:735ISBN 978-92-893-4580-4 (PRINT)ISBN 978-92-893-4581-1 (PDF)