The Danish labour market model 3 parties
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1 Claus Bang Møller
2 Workindenmark Governmental organisation Objective: to ensure that Danish companies have the right labour force they need at the right time International recruitment and retention International network - EURES Key customers: Danish companies, employees and job seekers from abroad. - job database, CV bank and information Spouse programme, Welcome to Denmark and job search courses Personal guidance International Citizens Service (Immigration authorities, State Administration, Municipality of Aarhus, Tax authorities, International Community and Workindenmark)
3 The Danish labour market model 3 parties State Private and public employers Collective agreements Employees (unions) high degree of flexibility when hiring and laying off employees high degree of economic safety when loosing job active employment policy high organisational rate both employers and employees (approx. 80%) Result: high job mobility low level of labour market conflicts
4 The Danish labour marked model Collective agreements agreement between employers and employees both parties respect each other as negating partners Regulates salary and working conditions (working hours, holiday, maternity leave, pension, training etc.) Collective agreements negotiated between the two parties is the key principle Private sector 3 levels: - national (overall frame) negotiated by DA and LO - industry/sector (minimum salary, pension, working hours, training etc.) negotiated by employers associations and unions or cartels of unions - local (actual salary, bonus etc.) - negotiated by trade union representatives and company management In the public sector, the main collective agreements are also between cartels of unions on the one hand and employers (central government and the associations for regional and local government) An agreement is normally valid for 2-3 years During this period of time strike or lock out is not accepted In case of disputes a official conciliator, appointed by the government, to resolve disputes.
5 Employees organisations 3 levels National (umbrella) national (professional) local (company) Level 1 Umbrella organisations: The Danish Confederation of Professional Associations (Danish: Akademikerne) (professional and managerial staff graduated from universities and other higher educational institutions) FTF (teachers, nurses, police, social workers, finance, IT etc.) The Danish Confederation of Trade Unions (Danish: LO) (Building and Construction, metal workers (Dansk Metal), clerical employees (HK), The United Federation of Danish Workers (3F), hotel- and restaurant workers etc. Main objective: Handle employee interests vis-a-vis employers and authorities. Influence the government and the political parties when it comes to drafting and implementing legislation, especially in relation to labour market policies. Coordinator in relation to central collective bargaining - secure common overall demands. Achieve a better harmony between working life and family life.
6 Employees organisations level 2 (professional) Professional organisations: e.g. Danish Association of Masters and PhDs (MA) Danish Architects Association (Arkitektforeningen) Dentists Medical doctors Lawyers Priests Complete list on Main objective Negotiate collective agreements Improve salary and employment conditions support to 3. level Supplementary training Information web site, newspaper etc. Discount in banks, insurance, fitness etc. Job adds Support professional networks
7 Employees organisations level 3 (company level) Local representatives (Danish: Tillidsrepræsentant) Elected among employees Special protection against dismissal Main objectives: Local negotiations concerning salary- and employment conditions Stimulate cooperation between employer and employees Conflict handling Conflict: strike
8 Employers organisations 3 levels The Confederation of Danish Employers (DA) Finanssektorens arbejdsgiverforening Main objectives: coordination of collective agreements employment policy and skills occupational health and safety labour law international industrial relations monitoring in terms of analysis and statistics on wages, conflicts, etc. Level 2 Private sector: e.g. Confederation of Danish Industries (DI), Danish Shipowners' Association + more that 100 others Public sector: Local Government Denmark (KL), Danish Regions (Danske Regioner), State: Ministry of Finance Main objectives: negotiate collective agreements negotiate salary and employment conditions support to 3. level Coordination Level 3 Local negotiations concerning salary- and employment conditions Stimulate cooperation between employer and employees Conflict handling Conflict: lock out
9 Unemployment insurance fund (Danish: a-kasse) 27 different private associations Complete list on ( Often linked to unions Insurance company: members pay a monthly fee and will receive a benefit in case of unemployment Financed via members contributions and state contribution (labour market contribution/danish: arbejdsmarkedsbidrag). Membership fee: insurance contribution 960 kr./ quartal. + administration fee approx. 250 kr./ quartal Task: administration of the unemployment benefit scheme: - payment of unemployment benefit - holiday payment - early retirement payment - career guidance - job search activities registered at the Jobcentre - availability assessment (job search, illness, part time work etc.) - personal interviews and group meetings - quarantines (if you terminate your job without any valid reason, if you are absent from meetings, refuse training/education
10 Unemployment benefit - workers (Danish: dagpenge) Conditions for receiving unemployment benefit - workers: - member of an unemployment insurance fund at least one year - have been employed for at least one year - at least working hours within the last 3 years (full time insured) - at least working hours within the last 3 years (part time insured) - registered at the job center - available for work at one day s notice - valid work- and residence permit to Denmark - living/present in Denmark - good health and fully capable to work - check your /post on a daily basis Exceptions: - job interview abroad - 3 months job search in another EEA country Transfer of unemployment insurance from another EEA country: register in a Danish fund max. 8 weeks after termination of insurance abroad. Unemployment benefit: full time insured 801 pr. day part time insured 534 pr. day Maximum 2 years unemployment benefit If you have terminated your employment yourself or if you are responsible for losing your job, you will normally receive unemployment benefit following 111 hours quarantine.
11 Unemployment benefit - graduates Conditions for receiving unemployment benefit - graduates: - You had a permanent address in Denmark no later than one day before the start of your education. - You are in Denmark no later than 14 days (including weekends) after you end your education - You have to apply for membership of an unemployment insurance fund within 2 weeks (14 days) after you have graduated. For example, if you pass your last examination on 10 January 2014, your fund has to have your written application no later than 24 January registered at the job centre - available for work at one day s notice - valid work- and residence permit to Denmark - living/present in Denmark - good health and fully capable to work - check your /post on a daily basis Exceptions: - job interview abroad - 3 months job search in another EEA country Unemployment benefit: graduates 657 d.kr. pr. day Maximum 2 years unemployment benefit If you have terminated your employment yourself or if you are responsible for losing your job, you will normally receive unemployment benefit following 111 hours quarantine.
12 Unemployed and not member of an unemployment insurance fund If you become unemployed and you are not a member of an unemployment insurance fund you may be entitled to social benefit. Social benefit: Dependents on your savings, partners income, other values Administrated and paid by the municipality Many different levels e.g. +25 years without children: max pr. month (find a complete list on registered at the job centre available for work at one day s notice valid work- and residence permit to Denmark living/present in Denmark good health and fully capable to work check your /post on a daily basis
13 ?? Questions?? Claus Bang Møller Workindenmark Nordhavnsgade 4-6 DK Aarhus C Tlf Mobil cba@workindenmark.dk
14 Not only the rules and regulations are different!!
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