Social protection

Social security

Social security coverage in the sector is frequently patchy, given the high proportion of part-time and temporary work. Coverage is also almost wholly inexistent in many countries where the sector is dominated by traditional family-based small and medium-sized enterprises or by informal economy businesses. It is hoped, however, that the continuing expansion of multinational retailers into these countries’ markets should contribute to strengthened social security systems for workers in the sector.

In the European Union, the Commission issued a communication on 27 June 2007 setting out a framework for common principles on flexicurity which is intended to shape the block’s future employment landscape, including in the commerce sector. It calls for an integrated flexicurity approach as a basis for the achievement of more and better jobs. The communications underlines the need for policies that simultaneously work towards flexibility of labour markets, work organization and labour relations, and both employment and social security.

EuroCommerce has welcomed the communication as an important opportunity to debate the impact of labour law on competitiveness, employment and long-term prosperity. Their position paper on the question can be accessed here.

Unions for their part, including UNI Europa, have expressed conditional support of flexicurity, stressing that it would only be acceptable if it creates a win-win situation for workers as well as for companies. Flexicurity, in other words, must emphasize the quality of employment and industrial relations, and increase the potential for workers and for jobs. This, in their view, presupposes policies to promote lifelong learning, and active policies on employment, social protection and support for workers during all forms of transition.