In January, Flemish social partners finally reached an agreement on the 2012-2013 employment policy. It is high time to do the same at the federal level.

The employment policy agreement is a biennial policy guideline designed to address the most urgent trends and issues in the Flemish labor market. The 2012-2013 agreement – the so-called ‘career agreement’ – focuses on increasing workforce participation of youth and the over-55s.

Every second year, both employers and workers’ federations discuss new effective strategies to enhance the Flemish labor market and strengthen career opportunities for the most vulnerable groups of society. Once agreed on, a career agreement text is presented to the regional government, which approves it and implements its strategies.

This year’s ‘career agreement’ (loopbaanakkoord) is based on two pillars. On one side, social partners strive to increase workforce participation of workers and employees over 50. To this end, the agreement proposes the implementation of a special ‘target’ system, designed for companies employing a statutory minimum of the over-50s. By doing so, companies fulfilling specific employment targets will be eligible to apply for extra financial bonuses.

“These targets would be established on an annual basis and supervised by the public employment service of Flanders (VDAB),” says Ann Vermorgen from the Confederation of Christian Trade Unions (ACV/CSC). Furthermore, social partners want VDAB to guide older unemployed in their job search until the age of 58, three years longer than currently.

On the other side, the agreement addresses the issue of youth unemployment and emphasizes the need to match employment-specific skills with labor market demand. It proposes to develop a better dialogue between education institutions and the labor market and to create individual truancy plans for difficult youth. Moreover, to stop low- or unskilled youth remaining unemployed, social partners want the Flemish public employment service to actively guide 2,500 low qualified youth.

The training would not only prepare youngsters to draft job applications, but also provide them with a unique chance to take part in internships and job-oriented workshops. If a person refuses to take part in trainings, sanctions will be imposed by the National Employment Office (RVA/ONEM) which is responsible for social security benefits for unemployed. Also, for those who are often employed for short-term contracts, the 2012-2013 agreement provides a number of extra measures securing their position in the labor market.

Social partners, gathered at the Flemish Socio-Economic Council, will also advocate the agreement at the federal level. “I appeal to the Minister of Work and federal social partners to invest in similar strategies which can effectively keep more people in the workplace,” says Jo Libeer from the Flanders' Chamber of Commerce and Industry (VOKA). He adds that “a real test for the agreement will happen only at the federal level. I hope that the social dialogue between the federal government and social partners will be as strong and effective as the Flemish social dialogue.”

AmCham Belgium’s position
Well-developed social dialogue, both at the regional and federal level, is a key feature of the Belgian labor market. It has often proven to be a unique tool in addressing important issues and developments in employment and labor strategies. The recent agreement worked out by Flemish social partners is a step in the right direction and should motivate their federal counterparts to proceed with the design and implementation of similar labor strategies nationwide. AmCham Belgium has been promoting the increase in workforce participation of both younger and older people as one of its key priorities, particularly given the urgent need to reform the social security system. For more information concerning the Chamber’s labor policy recommendations, please see the 2011 Priorities for a Prosperous Belgium.