
Confronting Demographic Change
To be checked against delivery
My message this morning is a simple one - the issues on demographics are too difficult, too complex simply to be a task for governments alone.
It is obvious that the problems can only be tackled if the approach is consistent over a long period and commands the confidence of the population - and the electors! If the issues at stake become politically contentious, if there is no consensus, the governments will find it hard to act, or at least, act and win the next election! So political consensus over a sustained period is necessary and so is an active role for agreements between the social partners.
This morning, I issue a challenge to colleagues from UNICE, CEEP and UEAPME.
That challenge is for the Social Partners at European level to seek to agree guidelines on the following matters:
the transition from education to work
lifelong learning with minimum rights and obligations
the work/family balance and related working time issues
the quality of the working environment and the need to avoid burn out
a flexible approach to retirement for those who want it with incentives to stay in the labour market
more flexible pension schemes allowing receipt of wages and salaries
These issues are difficult and complex but all countries are having to face them. The European dimension can help. This conference points the way forward.
But let me say that it will be extremely difficult to deal with all this while unemployment, and especially youth unemployment, is so high - 17,9% for the under 25s in December 2004.
The early retirement arrangements of the past 30 years were initially a response to high unemployment. They were a reasonably generous way of employers and unions handling restructuring and job losses. And the hope was that vacancies which were created would go to the young. Employers too wanted younger workforces wherever possible because they were cheaper, seen as more adaptable and less stuck in their ways.
So parallel action to boost economic activity and to reduce unemployment is essential. If there are larger numbers of young employed, the calls for the older generations to stay in employment will sound hollow and meet strong opposition.
My final point is - can action at European level help? I think it can by providing guidelines for member states which are struggling to deal with this issue. If we can build a consensus on the best ways of handling this very big question at European level, it can assist the necessary processes in the member states.
Demography is one of the key points of the new European Social Model along with handling restructuring and delocalisation much better than we do now, and running our economies at much higher levels of growth and employment.
The Social Partners face a big challenge and the employers need to join us in formulating an early positive response and follow-up.
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