The Nordic countries’ labour markets might differ from each other in
many ways, but the outside world commonly view them as one joint model.
There are shared traits like high living standards, high taxes, a
comprehensive social security system, strong unions and a dialogue
between the parties in the labour market – as well as a dialogue
between those parties and the authorities.
Between 1973, when Denmark joined the EU, and the 1993 Maastricht
Treaty, the Commission and Council of Ministers showed little or no
understanding for the independent roles played by the parties in the
labour market in the Nordic countries. They were viewed as private
entities not to be trusted with authority decisions.
During that same period the EU labour market policy was being
modelled on the principles of harmonisation found in the French
model.
The Maastricht Treaty granted the parties in the labour market
independent roles to do deals which formed the basis for labour market
directives (e.g. on part-time work). As a result, the Nordic model of
cooperation between the parties on a national level gained more
legitimacy. The particular role granted to the parties in that treaty
could be viewed as a result of the inspiration the then Commission
President Jacques Delors found in the Nordic region. But it could also
have been the result of a lack of willingness from member countries to
work towards a harmonisation of labour markets.
Now that Finland and Sweden are EU members, and Iceland and Norway
are participating in the EU’s social dialogue, the parties and the
cooperation between them have been strengthened further, and we see
intensified cooperation between BusinessEurope and the European Trade
Union Confederation.
Both trade organisations and employers’ organisations from the
Nordic countries come out as strong proponents of an individual role
for the parties in the labour market.
Lately we’ve seen an initial sceptical reaction to the flexicurity
model. Employers fear large costs, pointing to the Nordic countries’
high taxes. The unions fear flexicurity will quietly undermine the
protection workers enjoy under current legislation.
The main reason many now admire Nordic labour markets is the high
level of employment across all walks of life, and low unemployment.
Meanwhile, high unemployment rates in both Germany and France exclude
two normally dominating actors from promoting their own models.
The Nordic labour markets are viewed with both envy and respect, but
also with a degree of scepticism, by those looking at what can be
learnt from the Nordic experience.
