Dilemmas in Organising the Labour Market, Experiences with Flexicurity in the Netherlands

Abstract

Flexicurity is used as a strategy in the Netherlands in order to increase flexibility for the permanent workers and improve the position of the flexible workers. The concept was introduced in the 1990s by the government in a paper and was further elaborated in an agreement of both sides of industry. This involved that the position of temporary agency workers was regulated and improved, and it was made easier to provide contracts for a definite period. This agreement was laid down in an act, thus amending the existing labour code. Important was that the position of the trade unions was reinforced since the Act allowed deviation from the general rules only by a collective labour agreement. In 2013, again the social partners were asked to negotiate on the flexibilisation of dismissal law and improving the position of flexible workers. This led to an agreement of the social partners and was subsequently laid down in the labour code. This procedure is relatively successful but leaves some dilemmas untouched, such as it is easier for employers to make use of the flexibilisation of the position of permanent workers than for flexible workers to make use of the rules that are meant as an improvement. Most of them can be escaped, e.g., by employing the workers shorter than the threshold for improving their position. This may sometimes even mean that flexible workers are worse off since they lose their work sooner than they did under the old rules.