Nummer: 175

Respect for National Labour Market Models

Upcoming EU-legislation or revision of existing EU-legislation needs to respect the national labour market models and industrial relations. This principle is enshrined in the TFEU article 151. 

The EU has 27 seven different labour markets that are organized in different ways. 

The functioning of the national labour markets in the EU are a result of different welfare models and of culture and history including various roles of the social partners.  

The European integration and the free movement of workers requires EU-legislation in place that can secure the various aspects of the free movement.

But in order to protect well-functioning labour markets in the Member States EU-regulation must be drafted in such a way that it respects the national labour market models, and adhere to the principles of proportionality and subsidiarity, that ensures that well-functioning national solutions aren’t undermined by EU-legislation. 

When proposing legislation in the field of social and labour market policy, the Commission should explain how it takes national labour market models into account and how to promote national implementation through collective bargaining between the most representative national social partners.  

Dato:
13. september 2023
Type af anbefaling:
Tidlig interessevaretagelse i EU
Tema:
Tidlig interessevaretagelse
Ansvarlig ministerium:
Beskæftigelsesministeriet
Status på anbefaling:
Følges

The affected EU-Regulation

All relevant EU-proposals that will be put forward during the upcoming Commissions term.
 

The affected Danish regulation 

All relevant Danish legislation that will implement EU-legislation adopted during the upcoming Commissions term.
 

Affected businesses 

All Danish and European companies subject to EU legislation. According to Statistics Denmark there are around 300,000 Danish companies[1].

 

Reasoning behind the recommendation 

There is a need for all relevant EU-legislation to respect the national labour market models.  

There are big differences between Members States according to for example whether main aspects of the labour market are regulated through collective agreements or through legislation.  

If EU-regulation is not framed in a way that respects the various labour market models then it will not have the desired effect once implemented and furthermore, it runs the risk of harming the national labour markets.

 

Expected consequences for industry and commerce

The ability of Danish industry and commerce to compete on global markets are heavily influenced by societal framework conditions. On labour market- and social policy for instance, Danish companies benefit from a long labour market tradition that – through intense social dialogue and political arm-length provisions – has delivered very stable and effective labour markets. EU policy initiatives on social and labour markets policy that don’t' bear consideration for national labour market differences threatens to undermine national well-functioning and well-tested systems, that contribute to the competitiveness of Danish industry and commerce.

More workable initiatives that exhibit a larger degree of respect for the principles of proportionality and subsidiarity will reduce those threats to Danish industry and commerce.
 

Economic consequences 

Well-functioning labour markets will underpin a well- functioning society to the benefit of people and companies.
 

Current Danish efforts  

The Danish Ministry of Employment alongside representatives from the Danish Trade Unions and employer organisations are already working to ensure that EU-proposals respects the Danish labour market model.

 

_______________________________________________________________

[1] Statistics Denmark: https://www.dst.dk/en/Statistik/emner/erhvervsliv/erhvervslivets-struktur/firmaer-og-koncerner# 

 

Secure that new EU-legislation bear consideration for national labour market models and their differences.

Regeringen tiltræder EU-og Regelforums anbefaling og vil prioritere, at den danske arbejdsmarkedsmodel respekteres i fremtidig EU-regulering. Derfor vil regeringen over for en ny Kommission fremhæve vigtigheden af, at Kommissionen bidrager til at sikre, at nye EU-lovgivningsinitiativer respekterer velfungerende arbejdsmarkedsmodeller i EU.