How decision-makers responsible for labour law and social policy in their countries imagine the future of European employment was discussed during the first day of the spring edition of the European Forum for New Ideas. The heads of ministries responsible for the labour market in Poland, Spain and Lithuania presented their proposals.
Common challenges, technologies and deregulation were the topics of the ministerial panel “Challenges for work in Europe” during the European Forum for New Ideas taking place in Warsaw. Among other things, they discussed whether it will be difficult to develop solutions to such labor market challenges as automation, an ageing society, changing employment models and increasing employee mobility.
Many of the current skills will no longer be useful
According to Agnieszka Dziemianowicz-Bąk, Minister of Family, Labor and Social Policy, the most important challenge we face is technology, with particular emphasis on artificial intelligence and its impact on the world of work.
– We know that by 2030, almost 40 percent of the skills possessed by European workers will become redundant – says the minister. – On the other hand, there will be a huge demand for new skills and professions related to cybersecurity, innovative technologies or education and mental health, which are also greatly influenced by digital technologies.
The number of seniors has increased by 2 million in a decade
According to the Polish minister, the second challenge is demography and an ageing society. – Over the last ten years, 2 million seniors have joined Poland – says Agnieszka Dziemianowicz-Bąk. – That is why we are trying to shape the labor market in such a way that these people can remain on the labor market and share their experience. We need to change the labor market conditions in partnership with employers, to whom we will also offer incentives to employ older people. We must also take into account that these people naturally get tired and a flexible approach to providing them with appropriate conditions is necessary. There is no point pretending that a sixty-year-old will have as much strength as a twenty-year-old, but also has much greater knowledge and experience compared to younger colleagues.
According to Agnieszka Dziemianowicz-Bąk, the third challenge is competitiveness, which must be based on quality: employment, employee protection, consumer protection, and standards of competitiveness between businesses.
Unlike Silicon Valley
Yolanda Díaz Pérez, Deputy Prime Minister, Minister of Labour and Social Economy of Spain, also addressed the challenges of the labour market.
– In the last 5 years, our country has become an example of transformation of the labor market – said Yolanda Díaz Pérez. – We have implemented a reform that is against liberal beliefs and that is why in our country 22 million people work, of whom 10 million are women. The present and the future depend on our current policies. But we must also look to the past, because Europe was built on peace and social justice. We must be guided by it to create conditions for decent employment. This is a model that is against Silicon Valley.
The European labour market is male and ageing
According to the Spanish minister, the European labor market is male and ageing.
– We need to propose new industrial strategies for Europe. When creating jobs, we should be guided by quality employment. In Spain, we have signed 20 different agreements between employers, employees and other stakeholders to reach a social agreement on this. We need to respond to the challenges in a world that is becoming increasingly dystopian. We also need to use the power of trade unions. Europe during the economic crisis cannot repeat itself. We managed to save our workers after the pandemic. I hope that this will be possible now.
Higher productivity should mean higher earnings
Inga Ruginienė, Minister of Social Security and Labour of Lithuania, believes that in her country the future of the labour market is seen as green, digital and adaptable.
– It seems to me that productivity and work efficiency are common to both employees and employers. In our country, we would like to increase it, because it is low – says Inga Ruginienė. – This would mean higher wages for employees and higher profits for employers. This may not happen quickly, but if we want to invest in new technologies that are already entering our lives, we should adapt to this and improve our qualifications. Investing in employee competences will increase productivity, but it will also allow them to feel confident in the new reality.
According to the Lithuanian ministry, employers must play a big role here.
– It is not the government's job to determine what kind of workers they need. But employers should tell the government, and it will be happy to help them with that – believes Inga Ruginienė. – We need to invest in our employees and safe workplaces. All of this will make it easier for us to adapt to new technologies.
Reducing wages is not a good solution
According to Yolanda Díaz Pérez, we must not compete with ever lower wages because this leads to the impoverishment of workers.
– It's not about doing everything cheaper, but about competing with better technology – believes the Spanish minister. – This model should move towards sharing financial benefits. Especially since employees are working more and more efficiently. Recently, their productivity has increased by 15 percent. Despite this, large capital does not invest too much in employees.
– If wages stopped growing or were reduced, the services and catering industries would die first – says Inga Ruginienė. – Citizens would also start avoiding buying cars and apartments. This would have a very negative impact on the entire market. As long as we want to have a growing economy, we have to invest in employees. There is no other way.
Employees of one company should be treated equally
According to Agnieszka Dziemianowicz-Bąk, if we look at the treatment of employees by large international corporations in various countries, the situation is not so rosy.
– We have examples of the experiences of Polish employees employed in German, French and Spanish corporations who cannot count on similar income and the same treatment as their colleagues from across the Oder, working in exactly the same company. The answer to this does not have to be regulation, sometimes it is decisive state intervention where these EU standards are violated. And we do it. There is no reason for the state to be passive.
We need evolution, not a technological tsunami
Agnieszka Dziemianowicz – Bąk also referred to technological changes.
– They are already here and they are also happening at the level of the labor market and entire economies – believes the Polish minister. – We just have to decide whether we will be dealing with a revolution, evolution or a technological tsunami. It is in our common interest that these are evolutionary changes.
In turn, according to the minister from Spain, artificial intelligence should not arouse fear.
– Technology is already with us and it brings many benefits to employees – says Yolanda Díaz Pérez. – Thanks to it, we can, for example, create better profiles of needs on the labor market, which can improve our employability and efficiency. From the employee's point of view, it can eliminate monotonous positions with repetitive tasks. It also helps doctors, because robots are appearing in medicine. AI can also help us improve well-being. However, this must go hand in hand with human rights and workers' rights. Another step is necessary. A triple agreement between employers, employees and the government. One of the challenges is also to make Europe independent from the rest of the world in this respect, also at the level of individual countries – adds the Spanish minister.
