The Nordic labour market model faces a plethora of threats, and there are plenty of reasons why cooperation to secure the model should be intensified, says the report ‘Working life in the Nordic region – challenges and proposals’, which former Danish government minister and EU Commissioner Poul Nielson has written on commission from the Nordic Council of Ministers.
Training for all
In it he presents a total of 14 proposals for how to strengthen the cooperation on securing Nordic citizens a good working life. Poul Nielson freely admits that some of the proposals are fairly wide-ranging. One is for Nordic governments to make training a completely systematic and integrated part of working life. The governments should agree to the principle that adult education and in-service training will be a mandatory element of working life for everyone in the Nordic labour markets, and then work with the social partners to create two basic models in an attempt to make this vision a reality.
This would be a visionary decision, says Poul Nielson in the report, and writes that in order “to prepare ourselves for the future we need to think out of the box”.
He is well aware that the proposal will face resistance on many fronts. He expects many misgivings, conflicts of interest and not least major difficulties when it comes to the allocation of costs and rights. This should not deter the countries, however. Poul Nielson points out that the creation of the common Nordic labour market in 1954 was not a routine decision either, and he is convinced that mandatory adult education and further training for all could lift the Nordic countries into a winning position in the global competition, and should therefore be tried out.
“Just as the Nordic countries were in the forefront in 1954 with the creation of a joint labour market, today we ought to be in the forefront in meeting the challenges of the future,” he writes.
More cooperation on migration
In the report, Poul Nielson describes a Nordic labour market cooperation with room for improvement. It started well with the Convention Concerning a Common Nordic Labour Market of 1954. That was a progressive decision that has contributed to growth and employment in our countries, Poul Nielson writes. But he thinks there has not been enough measures aimed at harmonisation and integration in the Nordic region in the various areas of working life over the last 20 years.
Inaction is a serious problem, according to Poul Nielsen, who sees threats from many fronts. One threat, which is specifically mentioned in the report, is the pressure which refugees and migration put on the Nordic labour market model. Poul Nielsen puts aside his otherwise diplomatic language when describing the Nordic governments’ ability to cooperate on refugee and immigration issues:
“Seen from the outside, the way the governments of the Nordic countries have handled the problem has not strengthened the picture of the Nordic region as an entity that stands out with close, well-coordinated cooperation,” he writes.
As an example he mentioned the fact that the Nordic countries as a group have not contributed to finding a joint EU solution in the shape of an efficiently administered joint European refugee and immigration policy.
Immigration can end up being a positive resource in our societies only if there is a common will and ability to meet these challenges, based on the values at the core of the Nordic model, thinks Poul Nielson, who continues: “All the indications” are that it is better to provide newly arrived people with early participation in working life, combined with language training, rather than having them spend several years preparing for working life.
“Learning by doing is a good motto for the integration effort,” he writes. He proposes that the Council of Ministers create a working group which should provide ongoing joint analysis and present proposals for a more substantial and active joint Nordic political effort in this area.
Joint rules for the psychosocial working environment
The working environment is another growing labour market challenge, which according to Poul Nielson calls for stronger Nordic cooperation. It is necessary to increase efforts to improve working environments, if quality of life is to be maintained at the workplace as people retire later, technology develops faster and global competition grows, he points out. The psychosocial working environment is particularly ripe for improvement – it needs more recognition, more research and more political focus, he thinks.
He proposes that the Nordic countries try to harmonise their legislation in the area and improve their coordination of activities while giving priority to projects which are of joint interest.
Hybrid organisation
The fragmentation of the labour market is a third tendency which already represents a challenge to the Nordic labour markets, thinks Poul Nielson, who points out that fewer employees choose to be members of traditional trade unions, while employees use more temporary and short-term staff and there is easier access to foreign labour.
There are also problems getting businesses from new sectors and large, independent groups to become members of employers’ organisations, writes Poul Nielson. This fragmentation represents a joint challenge for the organisations on both sides of the labour market when it comes to maintaining their central roles in the Nordic labour market model, and the Nordic countries should support the organisations in finding more flexible organisation models.
The report does not spell out how to do this, but recommends that government ministers discuss it and produce a list of ideas for use in efforts both in the Nordic region and internationally to adapt to the demands faced as a result of the fragmentation of working life.
Improved debates
As a seasoned parliamentarian, Poul Nielson also has some recommendations for how the Nordic ministers of labour can enjoy even better political debates when they meet at the Nordic Council of Ministers for Labour (MR-A). He suggests making the meetings between ministers a “good club” rather than “an over-formalised meeting machine”.
”The way to increase the political relevance of the MR-A is to make participating in this cooperation an attractive, meaningful and necessary part of the ministers’ use of their time,” he writes, and adds that meaningful and jointly prepared briefings for the ministers are necessary, as well as “a degree of boldness”.
While strongly appealing for increased Nordic labour market cooperation, Poul Nielson is also full of praise for the comprehensive and multifaceted network of relations on many levels which he sees in the Nordic cooperation in the working life area.
“On all levels – ministers, the committees of senior officials, the labour market organisations, the relevant administrative branches related to the labour market and university researchers – exchanges of experience and informal and direct forms of co-operation have been emphasised as being amongst the most important and valuable elements,” he writes.
Poul Nielson also suggests a more active approach in Nordic labour market cooperation when it comes to relations with the outside world. He suggests that the Nordic labour ministers organise stronger joint branding of the core of the Nordic labour market model both in the EU Commission, the Parliament, during meetings of ministers and in the social dialogue with the EU. The Nordic Council of Ministers for Labour should also intensify its cooperation with the ILO and reprioritise the Nordic region’s cooperation in the OECD, he writes.
Read more: Former EU commissioner Nielson wants radical Nordic reforms
New strategic analysis: Working Life in the Nordic region: Challenges and proposals
