Observation (CEACR) - adopted 1994, published 81st ILC session (1994)

Employment Policy Convention, 1964 (No. 122) - Denmark (Ratification: 1970)

1. The Committee notes the Government's report for the period ending June 1992 and the detailed information which it includes in reply to its previous observation. It notes that the weak growth in production has been accompanied by a decrease in total employment over the period, while the OECD's standardized unemployment rate, which was 9.7 per cent in 1990, continued to increase to 10.6 per cent in 1991 and 11.1 per cent in 1992.

2. The Government states that the persistence of a high rate of unemployment has led it to give high priority to employment policy and new initiatives to combat unemployment. The report contains a detailed description of the measures taken to further strengthen the labour market policy measures which had already been implemented and the Government considers that it is now necessary to undertake a more long-term reform of the basic structures of the labour market. The Government also considers that the employment policy must not be in conflict with the pursual of other objectives, including combating inflation and maintaining a strict finance policy and a continued surplus of balance of payments. In this respect, its objective is to establish an economic environment which encourages trade and industry and the improved competitiveness of enterprises as an indispensable prerequisite to the growth of production and employment. The Committee notes these general economic policy objectives and observes that they appear to have been broadly achieved in terms of maintaining domestic and external financial balances, but that the employment situation has continued to worsen, as shown by the data referred to above.

3. The Committee notes all the information supplied in reply to its previous comments concerning active labour market policy measures. It notes that the Government considers that the results achieved by the job offer scheme have not been satisfactory. The Committee notes in this respect the new provisions introduced in the context of this scheme, and the creation of new forms of leave from the labour market in the context of the series of employment policy measures adopted in June 1992. It would be grateful if the Government would continue to supply detailed information on the results achieved by each of these measures. The Committee also notes that the Government intends to introduce a more basic reform of measures to combat unemployment, accompanied by a reform of the unemployment benefits system. In this connection, the Commitee draws the Government's attention to the Employment Promotion and Protection against Unemployment Convention (No. 168) and Recommendation (No. 176), 1988, which contain valuable indications as to how the unemployment protection scheme can be coordinated with employment policy.

4. With reference to its previous observation, the Committee also notes that, in the context of a complaint alleging violation of the principles of freedom of association (Case No. 1641), the Danish Confederation of Professional Associations (AC) referred, in its communication dated 15 April 1992, to the provisions of the Convention. The complainant organization considers that Act No. 929 of 27 December 1991 to amend the Consolidated Act on Job Offers for Unemployed Persons, which establishes a maximum hourly rate for jobs in the public sector offered as part of the job offer scheme, ignores "the mutual relationships between employment objectives and other economic and social objectives" which, under the terms of Article 1, paragraph 3, of the Convention, have to be taken into account in the employment policy. The AC, which also refers to the principle of proportionality in a later communication, dated 5 November 1992, considers that the protection of collective agreements which are in force forms part of the economic and social objectives which, in accordance with Convention No. 122, should not be violated by the employment policy. The Government states in its report that the establishment of a wage ceiling for the jobs offered in the job offer scheme in the public sector is intended to encourage the unemployed to seek work by themselves and to increase the number of job offers in the private sector, which has demonstrated that it provides better prospects of permanent employment.

5. While emphasizing that it is for the Committee on Freedom of Association to rule on the principal allegation of interference with the provisions of collective agreements, the Committee notes that the provision of Act No. 929 covered by the complaint deals with the remuneration of the long-term unemployed who accept a temporary job in the public sector for a maximum duration of seven months. It also notes that this system of job offers and remuneration is not in any event to result in the dismissal of regular employees. The Committee considers that, under these conditions, temporary employment measures to encourage the integration of the long-term unemployed into the labour market are not in themselves contrary to the provisions of the Convention. The Committee, considers, however it should emphasize that it is the responsibility of the Government to ensure that the temporary nature of the jobs which are offered is observed in practice, both in the public and private sectors, in order to ensure that the measure does not deviate from its objective and that it is not used as a measure to fill permanent jobs. Finally, it draws attention to the relevant provisions (Parts III and VIII of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), which includes the recommendation to hold full and timely consultations on the formulation, application and monitoring of such programmes between the competent authorities and the organizations of employers and workers concerned.