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Joint Committee on the Secondary Legislation of the European Communities debate -
Wednesday, 13 May 1981

Guidelines for a Community Labour Market Policy

Senator Robinson is unavoidably absent, so I will put her draft report on Proposed Guidelines for a Community Labour Market Policy before the Joint Committee. The report first of all refers to a communication from the Commission to the Council in May of last year, proposing the guidelines. In the language of the document it is designed "to facilitate investment both in time and space on the labour market." The Communication surveyed the basis and development of existing elements of labour market policy and drew attention to the dependence of Community measures upon national labour market services and examined the economic and social environment of this decade and the implications of that environment for the policies.

Following that, in June last year, the Council adopted a Resolution based on the Commission's Communication. The background to the problem is well known to members of the Committee and to other members of the public, that is, the vast level of unemployment. The number of registered unemployed in the Nine at the end of February 1981 was 8.5 million which is 7.8 per cent of the civilian workforce, and between February of last year and February of this year the unemployment level in the Community increased by 30 per cent and increased in this State by a significantly higher percentage, 37 per cent, to 126,300. The Commission attributed four functions to labour market policy. The first of these functions is that of placement, that is, the active business of bringing together job offers by enterprises and job demands by workers. The second involved discovering facts by statistical and other studies and forecasts, discovering what was the labour market. Included in the second function are aids to geographical mobility and promotion of vocational mobility by vocational guidance and training. The Commission pointed out that all these including, in particularly serious situations, subsidies and aids to direct job creation, might be incorporated in measures of general application and also in measures aimed at particular regions of the Community, sectors of industry or commerce or categories of workers.

The labour market policy stems generally from the Treaty of Rome and in 1974 there was a social programme recognising the need for an integrated answer to particular problems such as youth and women's unemployment and there was legislation with regard to directives on women's employment which, as we know, was followed in this country, and an increase in the financial means available to the European Social Fund. The purpose of the policy, as I have already indicated, is supplementary and accompanies or supports member countries' own efforts, directing them to common objectives by taking account of differences.

Finally, the current action aimed at mutual recognition of qualification of one kind or another is designed to give increasing access to employment by nationals of one State in labour markets of others.

In her report Senator Robinson makes the point in paragraph 7 that an active labour market policy is a necessary, but not sufficient, condition for a return to full and better employment. The Commission point out that the resolution of this serious social problem depends mainly on three factors, the revival of non-inflationary growth, the success of structural adaptations and an appropriate policy on the re-organisation of working time. Labour market policy is an important aspect of the overall strategy. It is essential to ensure the reciprocal adjustment of supply and demand and to make the structural adaptations more effective. This will be made even more important in the light of the problems raised by the development of new technologies.

In paragraph 8 Senator Robinson summarises as the Commission's view that the objectives of labour market policy should be optimum response to any policy designed to increase employment; a reduction in mismatch between supply and demand — in particular of a qualitative nature, particularly by awareness, of changes in technology and the international economy; a better integration of the Community labour market; the implementation of these objectives through structures of public employment services and vocational training which will be taken up at a later stage of this report. The objectives should include active participation by representatives of employers and workers in implementing the policy at Community level through the Standing Committee on Employment. A further objective is a greater degree of consistency between actions at the economic and social levels in order to improve the employment situation and to combat unemployment.

The areas for action suggested in the resolution are on the same lines as the objectives we have just mentioned — better knowledge and information on the labour market; improved guidance, training and retraining; more experienced officials in the matter of placement to bring together enterprises and people wanting to work in them; a forward looking approach on education and information — and, of course, there have been some useful developments here in this matter of information by the authorities — by management and by workers themselves; special measures for specific categories of workers, for example, young people, women, elderly, and handicapped; regional and sectoral measures.

The resolution which we are reporting on envisages better use of the Community's financial instruments, in particular the European Social Fund; integration of the market through what is called SEDOC, which is the European system for the international clearing of vacancies and applications for employment, taking account of the employment priority to be afforded to workers who are nationals of other Member States; combating immigration and illegal employment; the Community legal instruments with regard to harmonising throughout the Community the treatment of men and women relative to employment; adaptation of working time; improvement in working conditions.

In what is a very interesting paragraph for the Houses of the Oireachtas, Senator Robinson has drawn together in this draft report, in paragraphs 11, 12 and 13, the position in this country with regard to this question of labour market information. The bulk of the labour market information at present available on a regular basis in Ireland is limited to what can be got from the live register, the Quarterly Industrial Inquiry carried out by the Central Statistics Office, vacancy and job-seeker data compiled by the NMS and, more recently, a Manpower Information Quarterly, which provides statistical and other information mainly on the activities of the NMS and AnCO. On a less regular basis we have the Census of Population, which we only get every five years. We also get biennial labour force surveys and an estimate of total employment by broad sector compiled annually.

The Manpower Consultative Committee, the Irish equivalent of the Standing Committee on Employment, which is referred to in the original resolution, and representative of employer and trade union organisations and appropriate Government Departments and agencies, identified a number of key occupations currently in short supply where demand is expected to grow rapidly over the next few years. The Quarterly Industrial Inquiry provides information on average hours worked in transportable goods industries but not on industries outside that, for example, service industries. Transportable goods industries include all manufacturing industries and activities like mining, turf cutting and so forth. We state in paragraph 11 that the Joint Committee feel that some follow-up action in this area would be desirable, particularly involving further research into sectoral employment and forward planning.

In paragraph 12 we state that in Ireland we are dependent on isolated research projects and surveys when information is required in other areas. The Committee recommend that further projects could be undertaken by or in conjunction with the universities and other third-level institutions, for example, of the type carried out by UCG on the extent of overtime working in Ireland.

In paragraph 13 we state on the question of the structure of employment, for example, occupational, industrial and regional breakdown, that we rely mainly on the Census of Population and the biennial labour force surveys. While the labour force surveys are comprehensive in nature, the Joint Committee understand that the two-year time span and the time lag before data is published have been major disadvantages in their usefulness and they recommend that annual surveys be introduced as soon as possible with faster processing and publishing of the results.

The National Manpower Service carry out annual surveys of second-level school leavers to establish the numbers taking up employment, apprenticeships, third-level education and so forth, but again their value can be reduced through delay in publication. For example, the results of the survey carried out in April 1980 on 1979 school-leavers are not yet published. The Joint Committee recommend that the question of availing of the research services of the universities in this area could be examined and that publication of the survey should be available as soon as possible after it is carried out in order to maximise its benefits.

Basic vocational guidance is provided to job seekers by the placement officers of the NMS. Where necessary, job seekers can be subsequently referred to the occupational service of the NMS. The Joint Committee understand that the requirements in the Resolution in respect of vocational guidance are in line with the projected development of the occupational guidance services.

There are some statistics given in paragraph 15. I do not think it is necessary to go through them. We are not certain that the services are sufficient, that there are enough people involved in them. The Joint Committee doubt if 40 offices are sufficient for the whole State. It was suggested to the Committee that those NMS offices should have a higher profile. The public should be more aware of the facilities they are providing. The Commission in their Communication state that exchanges of experience between the Member States showed that it was necessary to strengthen public employment services and to improve their standing with enterprises.

SEDOC, the system for the Community clearance of vacancies and applications for employment, have been fully operational insofar as this country is concerned since early 1979 through the agency of our NMS offices. In 1980 it is understood that 1,300 persons applied through SEDOC for permanent work in other EEC countries; 327 persons were offered employment.

The Joint Committee are satisfied that the majority of the Irish public are not aware of the existence of SEDOC and that if, as the Resolution envisages, it should play an important role in the labour market and the employment field here, steps should be taken to make its existence and functions better known so that the people in Ireland who wish to go to some other Member State for employment may at least be aware of the possibilities.

Paragraph 17 deals with the relevance of industrial training to the general employment situation which is continually monitored by AnCO who carry out various services and training programmes to ensure that trainees are fit to take up employment in areas where there are labour demands. There are 14 training centres throughout the country, now being increased to 20, as well as mobile trainee units. Use is also made of spare training capacity in State-Sponsored Bodies or private industrial firms in close co-operation with AnCO.

AnCO carry out industrial training at all levels and the vocational training of apprentices incorporates instruction both in the educational system and in AnCO training centres. Alternance training is a new expression to me; perhaps Senator Molony or Senator Mulcahy can tell me what it means: I take it to mean that a person already in employment will be released for training to acquire a skill, Alternance training notably in the form of apprenticeship training, day or block release and training employment contracts is widespread in many EEC countries. Particular attention is paid to the needs of young persons who leave school with low level qualifications and enter jobs which do not offer training opportunities. The EEC Resolution on this subject expresses commitment to the development of alternance training and the committee do not see this as presenting a major problem for this country.

At present AnCO's apprenticeship courses normally combine one year off-the-job training or day or block release with job experience. Also young persons trained by CERT for the hotel and catering industry are given on-the-job training in line with this concept. The Joint Committee recommend that Government agencies, in consultation with industry, the trade unions and educational authorities, should take further steps to expand apprenticeship training and increase the apprenticeship intake to the proportions in other EEC countries.

The growing proportion of young people in our population has led to an increased awareness of the problems of transition from education to employment and there are a number of programmes designed to alleviate these problems. Pre-employment courses were introduced into second-level schools during the session 1977-78 for students who had left school on reaching the school leaving age and who had not been able to receive suitable or any employment and who did not wish to proceed with normal schooling. These courses included vocational guidance, basic skills or communications and mathematics, social skills, knowledge of industry and the work situation and practical training in technical skills which would enhance students' opportunities of obtaining employment locally. Work experience is an integral part of these courses. It is good to note that three years later approximately 2,700 students are attending these courses in 110 schools. These numbers show that the decision to introduce these courses was well taken.

In third-level education there is a continued expansion of courses which are designed to render the students more employable at certain levels, in certain fields and in high technology courses.

The Joint Committee welcome these improvements in the Irish educational system and hope that they will make the system more relevant to the needs of modern employment of youth in the technical and technological fields. The growth areas in these industries make this more than ever necessary. Even the more traditional industrial and service type industries require more technical expertise. We recommend that further examination of the educational system should be undertaken to discover whether the objectives envisaged have been attained and whether further action is required in these areas.

The Manpower Consultative Committee provide a forward looking approach to the problems of the labour market as envisaged in the Council Resolution. Since their establishment in November 1978, the Committee have set up a number of subcommittees dealing with shortages of one kind or another; attitudes towards work in industry, and youth employment. A working group has recently been set up to look at the question of work-sharing. Regional committees are being established in the planning regions. The Joint Committee believe that new concepts will have to be studied in an endeavour to improve the situation; for example, a fresh look could be taken at new concepts for the payment of unemployment benefits. Such a concept could include, where appropriate, the payment to otherwise unemployed persons of a work-related wage to undertake community work whether of a social, environmental or infrastructural nature.

The Resolution gives weight to the case for improved Community assistance towards various categories — young people, women, elderly, migrant and handicapped workers. The Joint Committee recommend that the Commission and the Council should be encouraged to provide better resources in these areas.

In particular the problem of youth unemployment is more acute in Ireland than in the rest of the Community and is likely to last longer. This is because a higher proportion of our population is in the youth category and the proportion of unemployed in this group is also higher. No new specific areas for action are suggested by the Council in regard to youth unemployment.

At present assistance from the European Social Fund is made available for 55 per cent of expenditure under the employment incentive scheme relating to first time young job-seekers. Premiums payable under the scheme for such persons are £14 per week. It is thought that as this figure was arrived at in 1977 it may be unrealistic in 1981. The Joint Committee strongly recommend that it be increased in order that employers will be encouraged to recruit young people.

There is a continuing and increasing emphasis in the Community on the participation of women in working life. The Resolution recommends that vocational guidance should encourage equal opportunities for men and women as regards access to employment. Council Decision 77/804/EEC provided that assistance from the Social Fund be granted in respect of women of 25 years of age or over, whose entry or re-entry into working life proved particularly difficult. To date a sum of £313,093 has been approved for Ireland for this purpose.

The Joint Committee consider that, in co-operation with employers and trade unions, a greater variation in the structure of working hours in paid employment should be introduced, for example, flexi-time, which would significantly contribute towards eliminating barriers to women in employment. In conjunction with improvements in working hour arrangements and the institution of maternity leave protection, it is vital that ancillary child support systems should be established in the work place. Professionally administered work place creches and the provision of entitlement to parental leave for both fathers and mothers would also contribute the essential prerequisite for equal employment opportunities.

Within employment in Ireland affirmative action programmes will be necessary to tackle and redress the imbalance of low female representation in occupations traditionally geared for males and to allow for enhanced possibilities for women to develop fully their career prospects. This should be reflected in the education system where a greater emphasis and more effective encouragement is needed for girl students to take up mathematics, science and technical subjects which will ensure they have the ability to compete equally for employment in new technology areas.

In regard to migrant workers Ireland has a very low intake, and integration is not a problem, but handicapped workers face major disadvantages in seeking employment, and policy in this country is aimed at eliminating these problems and enabling handicapped persons to take up employment for which they would otherwise be qualified. The Government, we understand, aim to have 3 per cent of public service jobs filled by handicapped persons.

The Resolution is addressed to the future developments of the labour market in the Community by means of a uniform policy throughout. It draws attention to the fact that manpower policy cannot develop independently of economic policy and that there is a need for a co-ordinated approach. The proposals are particularly relevant to the Irish situation where regional underdevelopment is a problem. Again the greater the priority given to this at Community level the more opportunities there will be to direct resources towards this country's needs.

In general we express once more the view that the European Social Fund is inadequate, a matter to be dealt with in the whole context of the Community budget. We thank Senator Robinson for the report and regret her absence.

I support the adoption of the report. It is a pity we have not been stimulated by Senator Robinson to a better discussion on it. The report contains a lot of pertinent data, information about what is available and might become available. I hope the Chairman will forgive me for making one important point——

If you make one, I will make one back.

It is about the unemployment figures. It should be pointed out that in all other Member States the unemployment figures have been going up each year since 1977. Our figure fell back in the first two years — in 1978 and 1979 there was a decrease of 10 per cent. A point that might be taken up as time goes on is that when we refer to full employment we should also refer to a fully occupied labour force. Even though we may not have our people fully productively occupied we should have them occupied. There is a kind of evangelism developing in society through which people are developing a welfare complex. There are good suggestions in the report for that. The phrase "fully occupied" is a good one.

I endorse what Senator Mulcahy has said. Two years ago the Joint Committee published a report on Youth Employment. In some other European countries, notably in Germany, specific steps have been taken to try to deal with the problem. I regret we have not taken any specific steps other than that provided for in the European budget, now totally inadequate, the employment premium scheme, which gives £14 per week, which in 1977 terms is totally unrealistic in 1981. I am very concerned because I see it on the ground in a rural town where you would not expect to see the same problems as in cities. I have been appalled at the number of young people in trouble with the law. I see them in my legal practice in courts — all with the problems of unemployment or lack of occupation.

We must face up to the fact that we are not capable of producing or we have not the capacity to produce enough work for the unemployed. If we allow young people to go two years after school without learning the discipline of work we are committing a grave disservice to them and the community. We have not even taken steps to spread around the available work, whether by work sharing, early retirement or working shorter hours. The time has come for us to face this problem realistically, particularly in regard to young people.

It is a cruelty — there is no dispute about it.

There are other points in the report, particularly about handicapped workers, in this year of the handicapped.

I have a case in mind of a girl who is handicapped; she is deaf, she is a dress designer, but she cannot get work because she is deaf.

In a service industry, if there was some relief given for favouring handicapped persons it might stimulate some activity.

In the apprenticeship structure, only 4 per cent of girls go for apprenticeships whereas the rate for boys is 26 per cent. We say we try to bring about equivalent structures, but we are completely unequivalent. In other services, including nursing, 35 per cent of girls are included and the figure for boys is 16 per cent. I may be citing redundant data but the differences are huge.

I should like to make a point in regard to redundant managers. The Irish Management Institute run courses for them. A manager in middle life is shattered by the loss of a job, unexpectedly in many cases. Such a person had taken his career for granted and hides himself, worried about what the neighbours think. The IMI take about 20 of them at a time for a six-week course and it brings them from a shattered and lost condition to confidence, ready to go again with renewed vigour. Ninety-eight per cent of them are successful. That course has the support of AnCO. Senator Molony mentioned regional imbalances. Dublin is again coming under terrible pressure. It is one of the worst hit areas in Ireland, particularly the inner city.

During the Seanad debate on the budget of the National Board of Science and Technology earlier this year it emerged that within the next five years we are likely to have a severe undersupply of skilled workers. That is horrific. If I may speak on a parochial basis, it is vital that there be a change of attitude among young people and their parents in areas where there is likely to be unemployment. There is great need for the establishment of further regional technical colleges. Thurles has applied for one. In other areas where such colleges have been established there is a complete change of attitude to future employment opportunities among teachers, families and students. That is very important when you reflect that we are facing shortfalls in areas where we have the young people to fill the need.

If you would look at a report I did in the late sixties, that is exactly what is being said now and was described as a possible outcome at that time if the regional technical colleges were not started. So I do not mind taking credit for that.

Paragraphs 1 to 32, inclusive, agreed to.

Appendix agreed to.

Draft Report agreed to.

Ordered: To report accordingly.

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