Diversity Of Education And Professional Development – Important Factors For Employment Relationships

Globalization and flexicurity

Through an official Communication, the European Commission (2007) has underlined in 2007 that „globalisation is beneficial for growth and employment, but the change it brings requires rapid responses from enterprises and workers’’. At that time, the European economies needed restructuring while there were still 17 million unemployed in the EU in 2007.

In fact, over the past decade, European labour market has met a series of serious challenges: restructuring of businesses involving massive dismissals followed by increase of the unemployment rate and significant decrease of the of vacant job positions. While the compensation packages and other means of protection of the employees dismissed were always modalities of attenuating the immediate effects of losing the jobs, it was necessary to find other measures that do not only involve costs for the employers and state budgets, but are also useful for the respective individuals to create value for themselves and also for the business and contribute to restarting the economic development.

In this context, the Commission stated that in order for Europe to adapt to such challenges a more flexible labour market is needed and there should be considered levels of security that address simultaneously the new needs of employers and employees. Thus, the concept of flexicurity was created and its common principles were further explored.

In Commission’s opinion, „individuals increasingly need employment security rather than job security, as fewer have the same job for life” while „the companies, especially SMEs, need to be able to adapt their workforce to changes in economic conditions” by recruiting staff „with a better skills match, who will be more productive and adaptable leading to greater innovation and competitiveness” (According to the Commision’s reserch and assessment, European citizens accept the need for adaptation and change. 76% of Europeans agree that lifetime jobs with the same employer are a thing of the past. 76% also consider that being able to change easily from one job to another is a useful asset to find a job nowadays. 72% of people said work contracts should become more flexible to encourage job creation. Finally, 88% of citizens said that regular training improves one's job opportunities.) (European Commission, 2007).

Flexicurity was defined by the Commission as „an integrated strategy to enhance, at the same time, flexibility and security in the labour market”.

“Flexibility, on the one hand, is about successful moves ("transitions") during one’s life course: from school to work, from one job to another, between unemployment or inactivity and work, and from work to retirement. It is not limited to more freedom for companies to recruit or dismiss, and it does not imply that open-ended contracts are obsolete. It is about progress of workers into better jobs, "upward mobility" and optimal development of talent. Flexibility is also about flexible work organisations, capable of quickly and effectively mastering new productive needs and skills, and about facilitating the combination of work and private responsibilities”.

“Security, on the other hand, is more than just the security to maintain one's job: it is about equipping people with the skills that enable them to progress in their working lives, and helping them find new employment. It is also about adequate unemployment benefits to facilitate transitions. Finally, it encompasses training opportunities for all workers, especially the low skilled and older workers”.

Given the above, flexicurity policies can be designed and implemented across four policy components among which we consider relevant from the perspective of the present study: (i) comprehensive lifelong learning strategies to ensure the continual adaptability and employability of workers, particularly the most vulnerable and (ii) effective active labour market policies that help people cope with rapid change, reduce unemployment spells and ease transitions to new jobs.

A high quality initial education gives to the employees broad and high level competencies while the continuous professional training or education, professional improvement allows them to easily adapt to the economic changes. From this perspective, it is important to implement lifelong learning strategies which sustain the long-term employability of workers (both with results of staying employed and finding new employment). On the other side, this determines also an increasing competitiveness of the employing companies.

Of course there are cases when simply ensuring lifelong learning programs is not enough. The Commission has note also some barriers such as: only high skilled employees generally benefit of such programs, while low-skilled workers, fixed term and temporary workers, self-employed, and older workers do not benefit of them, as not being included in such learning programs. On the other side, the employers are reluctant sometimes to invest in the professional training or continuous education of their employees, as the respective employees may be hired by the competitors and leave their employer. Therefore, the training and education programs provided by the employer must be backed up by the involvement of social partners and also governments.

Romanian legal framework

Practice of labour relations

In addition to the above mentioned legal obligations to ensure regular professional training to their employees and legal benefits offered by the National Unemployment Agency within the national unemployment insurance system and paid from the national unemployment insurance budget, the employers’ have found and implemented in practice additional solutions to avoid dismissals and increase the chances for both individuals and businesses’ future development.

In the most part of the cases, the main category of measures implemented in case of imminent dismissals is represented by the compensation payments. Unfortunately, the employees are more interested in such amounts than in professional training courses.

However, there are cases when either upon decision of the employer or following the consultations with the employees’ representatives (in case of collective dismissals) the solutions to avoid dismissals and/or reduce the consequences of dismissals belong to the area of continuous education and professional training, i.e.:

• regular trainings offered to the employees to adapt their knowledge, competencies and abilities to new work procedures and technical requirements

• considering other professional competencies held by the employees to redeploy them within the company

• trainings offered as part of outplacement services granted by the employers (acquiring new competencies, consultancy to start independent activity or a new business, mediation on the labour market exploiting any knowledge, competencies and abilities obtained due to multidimensional education and professional development)

Nokia example – Bridge Program

We have found as a relevant example the closure of Nokia’s factory located in Jucu, Cluj, Romania, as part of the Nokia’s worldwide program to sustain the employees affected by dismissal to find new employment.

Nokia’s Jucu factory was closed in 2012, following the implementation of a social program aimed to support the employees. “Nokia is ready to support its employees.” Has declared the factory’s General Manager. “We invest time, money and expertise to sustain re-deployment, to stimulate new growth opportunities for local community” (Nokia Romania, 2011).

Nokia has created worldwide the Bridge Program to support its employees affected by massive measures of restructurings (Kiuru, Handelberg & Rannikko, 2013).

In Romania, such program has included, among others:

• 6 additional months on payroll

• Multiple training and personal development courses within a specific amount allocated to each employee

• Training on how to create a business plan

• Selection procedure for business plans and payment of a specific amount to start a new business

• Job fairs and consultancy to find new jobs by capitalizing any competencies and abilities of the employees

• Outplacement services

• Counselling on professional re-orientation

• Application through the local unemployment agency to obtain funds from the European Globalization Adjustment Fund