Local flexicurity: resolving the conflict between direct and representative participation

Norway is often praised for its flexible workforce and flexible workers, which contribute to the adaptive capacity and competitiveness of the economy. At national level, the interplay between strong welfare arrangements, active labour market policies and generous protection in the event of lay-offs also contributes to labour mobility: being laid off does not entail personal catastrophe, as unemployment benefits are universal and generous, and access to new employment is likely to come quickly, due to an active employment and labour market policy. At company level, flexible employees are characterised by their ability and willingness to combine different tasks, take on new responsibilities and use their skills in the best interests of the company. At the same time, laws and agreements secure employees against arbitrary and unfair treatment from management and colleagues. What sort of mechanisms provide for this combination of security and flexibility at company level? We argue that this security and flexibility can be attributed to the manner in which representative and individual participation interact at company level in Norway. We call it ‘local flexicurity’.