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An introduction to contract and agency labour in the ICEM sectors
- 1. An updated introduction to the ICEM CAL CAMPAIGN Fons Vannieuwenhuyse ICEM Projects Officer April 2010
- 16. A few statistics Temporary employment advanced economies – 1991 – 2006 (source: IILS - ILO)
- 17. Temporary employment transition economies – 1998 – 2006 (source: IILS - ILO)
- 19. “ The global annual turnover of the Private Employment Agency industry amounted to € 232 billion in 2008” Source: Ciett 2010 - “The agency work industry around the world”
- 20. Europe is the largest in terms of Ciett affiliates’ income (48% of worldwide revenues in 2008), followed by USA (21%) and Japan 21%) Source: Ciett 2010 - “The agency work industry around the world”
- 21. Source: Ciett 2010 - “The agency work industry around the world”
- 22. Source: Ciett 2010 - “The agency work industry around the world”
- 27. Gender Differences for agency workers Source: Ciett 2010 - “The agency work industry around the world”
- 30. Source: Ciett 2010 - “The agency work industry around the world”
- 31. TAW employment and revenues A few European examples Source: European Institute for the Improvement of Living Conditions, Dec. 2008 7.0 (8.7) 1,196,000 UK - 69.7 59,400 Sweden 219.3 93.5 60,000 Poland 17.9 11.9 637,901 France 110.2 100.0 28,000 Finland 11.3 53.6 614,000 Germany 35.2 27.1 (17.3) 95,465 (382,188) Belgium Sector revenue change since 2004 (%) Change since 2004 (%) Number of workers, 2007 Country
- 40. Source: ICEM co-sponsored research – Brazil chemical sector, Nov. 2009 Permanent vs. CAL workers in the Brazilian Chemical sector
- 41. Informal employment in Latin American countries 1998 – 2006 Informal employment in the formal sector includes those workers who do not have a proper contract (source: IILS - ILO)
- 47. Statistics – ICEM Asia MNC Project - 2009 26.7% 37.5% 0 MNCs 5 MNCs 24.2% 67.9% 0 MNCs 11 MNCs 40.6% 95% 1 MNC 11 MNCs 41.6% 85% 0 MNCs 14 MNCs 13.2% 50.1% 0 MNCs 5 MNCs 19.0% 67.1% 0 MNCs 7 MNCs 37.8% 64.9% 2 MNCs 10 MNCs 29.3% 65.9% 1 MNC 10 MNCs Thailand 26.7% 58.5% 0 MNCs 17 MNCs 23.0% - - 13 MNCs Malaysia 27.3% 90% 2 MNCs 16 MNCs 31.7% 50% 4 MNCs 22 MNCs Indonesia Average % CAL Average union density regular workers CAL workers ( partially ) unionised Trade unionists at the seminar from Country
- 56. Has the share of contract and agency labour (CAL) in your sector(s) in your country increased over the last five years? IMF survey: 9 out of 10 88% 12% Yes No
- 57. Do workers in your country feel less secure as a result of the changing employment relations? IMF survey: 9 out of 10 83% 10% 7% Yes No Don’t know
- 58. Please provide an estimated share of the contract and agency labour work in your sector(s) in your country IMF: 44% IMF: 13% IMF: 33% 53% 33% 14% Less than 20% 20% to 50% More then 50%
- 59. Are wages of contract and agency labour workers in your country much less than for permanent employees in similar jobs? 78% 22% Yes No
- 60. If wages are lower, at what percentage of a permanent worker’s wages are they? 40% 48% 12% Less than 50% 50 to less than 75% 75% up to 100%
- 63. In which areas, and to what degree, do employers evade their obligations to contract and agency labour workers? 1= fully complies 5=completely evades obligations Overtime payments Vacation and holidays Maternity and family leave Social security and pensions Occupational health and safety
- 64. Does your union have contract and agency workers as members? 54% 46% Yes No
- 65. Is organising contract and agency workers a priority for your union? 62% 38% Yes No
- 67. Almost nine out of ten respondents indicate that CAL workers are (where they are organised) mainly organised inside existing trade union structures IMF survey: The actions identified as most important among union strategies regarding precarious workers include first and foremost recruiting these workers into existing unions. 87% 13% Inside existing unions Through separate unions
- 68. Does your union provide information or education on contract and agency issues to union members? 69% 31% Yes No
- 69. Has your union revised its rules recently to facilitate CAL workers’ membership?
- 73. Where CAL problems exist in your country, would you say the main problem is the lack of legal protection, or the fact that the law is not enforced correctly/adequately? 44% 56% Not good enough Not enforced
- 74. Have you ever made use of labour inspection to offset CAL abuses? 47% 53% Yes No
- 75. If yes, was the experience positive? 57% 43% Yes No
- 76. The follow-up ICEM-IMF Questionnaire 2009 Asked for their experience over the year 2009 , 66% of ICEM and IMF affiliates indicated that there was a continued increase in CAL , in spite of (or thanks to) the economic crisis. Significant was that about on 1 in 3 noted an increase of over 10%.
- 153. The company angle – Latin America Evolution of permanent vs. outsourced workers in Petrobras
- 156. Petrobras in Peru
- 171. An ICEM overview study in Colombia found one union sharing meals with CAL workers, as they did not have a food allowance. Sometimes small things
- 172. The ICEM CAL Campaign site cal.icem.org This PowerPoint Presentation is also available on the ICEM CAL site, under “Publications / CAL background documents”
Notas del editor
- So this is not something we invented
- What has been changing is, in essence, the previous “normal” relationship between employers and workers. For a large segment of the world’s workforce, this relationship has become one of a ‘much lesser’ quality . For many others, such the increasing contingent of “ self-employed” workers, it has changed from a labour relationship to a commercial relationship , with the worker taking all the risks . As a result of that, many of the protections that workers have fought for, often over a very long time, such as social protection or anti-discrimination rules, were simply lost.
- A million excuses can, and have been, given, as well as invented. Among the more universal ones: “ our demand fluctuates a great deal”, “ it’s a global evolution”, “ everyone is doing it”, “ head office orders us to do so” or “ it’s just a temporary measure”. The overall thinking becomes “ We don’t pay them, they don’t work for us, we don’t have any responsibility to make sure they get treated right”.
- The full list: Job insecurity and an uncertain future. Often, temporary contracts can be terminated at any point in time, with almost no prior notice Higher risk for unemployment and underemployment Workers’ assignments and functions can change at any time at the employer’s initiative Uncertain working hours Continuous demand for total availability Low(er) wages , or irregular wages No annual pay rise or bonus The right to sick leave often does not exist Limited or no access to social benefits , including pension rights health insurance maternity/paternity rights holiday rights and payments 10. Fewer benefits overall. For example, transport of food allowance 11. Increased risk to health and safety problems 12. Verbal abuse 13. Poor, or no training 14. Not much, or no career development 15. Lack - or denial - of rights at work , including the right to join a union and the right to collective bargaining, resulting in a weak bargaining position 16. Low level of unionisation
- The full list Among the problems for trade unions: Many contractors/agencies to negotiate with Unclear which employer is responsible Contractors often change Permanent workers can be hostile to contract workers . Sometimes, 2 separate workforces are created with different interests Contract workers are scared for their jobs Agencies can exploit workers Agencies can be a front for illegal or criminal elements Contract and agency labour is used to do away with the union Contract and agency labour workers are legally, or practically, not allowed to join the union , or a union. Contract and agency workers don’t see an immediate value in joining the union Unions are loosing members Collective bargaining is more difficult as there is less bargaining power
- Beyond that, efforts are also needed to prevent good laws to be overturned by politicians who believe that flexibility is a synonym for violating workers’ rights .
- In general, favour permanent direct employment and limit the number of contract and agency labour workers Create better rules to avoid arbitrary dismissals and CAL abuse Guarantee that a formal ‘employment relationship’ will be established, before the work starts Where agency labour is used, make sure that the role of the user enterprise and of the agency is well described. Seek assurance that CAL workers are made aware of their rights and are informed of the conditions and surroundings of their job Guarantee protection for whistleblowers, i.e. workers who bring CAL abuses to the attention of unions, companies or authorities Equal pay for equal work, as of day 1 Set other levels of benefits (besides salary) also at the same level as for permanent workers, also as of day 1 Better social security protection for CAL workers Guarantee CAL workers’ training and career development Describe categories of work, sectors, or types of jobs where CAL labour is not allowed, or make sure the law specifies that CAL work will only be allowed in certain cases. Make sure CAL labour cannot be used in certain circumstances (as a minimum, to replace permanent workers in case of industrial action, or for dangerous jobs) Reduce the maximum allowed time periods for contract and agency labour Make sure CAL contracts can not endlessly be extended for years and years through loopholes Make sure the trade union at the company receives all available information on contract and agency labour work at plant level Allow core trade union rights Allow trade union organising, or make organising easier where restrictions apply
- In general, favour permanent direct employment and limit the number of contract and agency labour workers Create better rules to avoid arbitrary dismissals and CAL abuse Guarantee that a formal ‘employment relationship’ will be established, before the work starts Where agency labour is used, make sure that the role of the user enterprise and of the agency is well described. Seek assurance that CAL workers are made aware of their rights and are informed of the conditions and surroundings of their job Guarantee protection for whistleblowers, i.e. workers who bring CAL abuses to the attention of unions, companies or authorities Equal pay for equal work, as of day 1 Set other levels of benefits (besides salary) also at the same level as for permanent workers, also as of day 1 Better social security protection for CAL workers Guarantee CAL workers’ training and career development Describe categories of work, sectors, or types of jobs where CAL labour is not allowed, or make sure the law specifies that CAL work will only be allowed in certain cases. Make sure CAL labour cannot be used in certain circumstances (as a minimum, to replace permanent workers in case of industrial action, or for dangerous jobs) Reduce the maximum allowed time periods for contract and agency labour Make sure CAL contracts can not endlessly be extended for years and years through loopholes Make sure the trade union at the company receives all available information on contract and agency labour work at plant level Allow core trade union rights Allow trade union organising, or make organising easier where restrictions apply
- In India , laws usually limit the use of contract workers for core production work, but large differences exist in this between the different parts of the country. In Thailand , the law doesn’t allow agency workers to join the same union as the regular workers - agency workers can form their own union, separate from the regular workers’ union - a situation that the unions, with the support of the ICEM campaign, are protesting against. The law in Indonesia , heavily influenced by the Dutch law, avoids the “revolving door problem”, by stating that if a worker performs the same job for more employers, then the last employer has to give the worker the same rights as under the previous employer. A certain hiatus in time between similar jobs is allowed. In New Zealand , wages need to be at least as favourable as those enjoyed by unionised workers employed directly by the secondary employer under a collective agreement.
- It is only legal to use agency labour in those cases where agency labour is used to (temporarily) replace a permanent employee agency labour is used where the enterprise faces a temporary increase in the workload agency labour is used for exceptional work In several cases: “Agency work is only allowed if the union delegation agrees with it before the work starts This labour contract needs to contain a number of specific elements. Among several other:…. “The reason why a permanent worker is replaced ” At the time of the reception, the user enterprise is required to provide the agency worker with, among other, the following: ….” Information on whether or not a ‘ works council ’ exists at the enterprise, whether there is a ‘committee for safety and prevention’ and whether or not there is a union delegation . The names and an indication on how to find the trade union representatives also need to be communicated. “ The user enterprise also needs to inform the works council on the structure of the workforce (permanent workers, workers with a temporary contract, and agency workers). The user enterprise furthermore needs to provide information on the evolution of employment within the company, including on: The number of contract and agency workers employed at the company The procedure used to employ them (directly, agency, …) The reasons why agency workers, or workers with a temporary contract, were employed
- It is only legal to use agency labour in those cases where agency labour is used to (temporarily) replace a permanent employee agency labour is used where the enterprise faces a temporary increase in the workload agency labour is used for exceptional work In several cases: “Agency work is only allowed if the union delegation agrees with it before the work starts This labour contract needs to contain a number of specific elements. Among several other:…. “The reason why a permanent worker is replaced ” At the time of the reception, the user enterprise is required to provide the agency worker with, among other, the following: ….” Information on whether or not a ‘ works council ’ exists at the enterprise, whether there is a ‘committee for safety and prevention’ and whether or not there is a union delegation . The names and an indication on how to find the trade union representatives also need to be communicated. “ The user enterprise also needs to inform the works council on the structure of the workforce (permanent workers, workers with a temporary contract, and agency workers). The user enterprise furthermore needs to provide information on the evolution of employment within the company, including on: The number of contract and agency workers employed at the company The procedure used to employ them (directly, agency, …) The reasons why agency workers, or workers with a temporary contract, were employed
- The fact that only a recommendation could be agreed – and not a convention - is an indication of how difficult it is to reach agreements in this area.
- Specific indicators of the existence of an employment relationship, including the fact that the work is performed personally for the benefit and under control of another party involves integration in the organization of the enterprise is carried out within specific working hours or workplace is of a particular duration and has a certain continuity involves the provision of tools, materials and machinery by the party requesting the work is periodically remunerated
- The full list Agreement on converting precarious jobs to permanent directly employed jobs Favour the use of direct permanent employment, also in new hiring Determine categories of work, sectors, or types of jobs where CAL labour will not be allowed, or make sure that CAL work will only be allowed in certain cases. Reduce the maximum allowed time periods for contract and agency labour Make sure CAL contracts can not endlessly be extended for years and years Make sure all workers have an adequate and well-described “employment relationship” with their employer Make sure collective agreements also apply to contract and agency labour workers Guarantee equal pay for equal work, as of day 1 Negotiate for all conditions, such as social security payments or health and safety provisions, to apply to all, including to contract and agency workers, also as of day 1 Guarantee non-discrimination Negotiate for better protection against dismissals Negotiate good training and learning of skills for all Seek assurances that CAL workers are made aware of their rights and are informed of the conditions and surroundings of their job Respect of trade union rights for all Negotiate union protection for contract and agency labour workers. Agree with the company that all CAL workers can affiliate to the permanent workers’ union and that the company will not resist these efforts. Make sure the company forces its subcontractors to apply similar good conditions to its workers. Also, make sure that measures are taken where such is not happening
- TIGLU, a merely 3-year old union, had earlier managed to organise all 13 work sites of Linde, the largest gas company in the country, providing the strength to act against the precarious employment situation. Whereas TIG continued to treat the agency labourers more or less as regular employees at the worksite, their status did have consequences. One worker tells the story of being denied a bank loan to buy a house, as he didn’t have a secure job. So he had no choice but to continue to live in his rental house.
- TIGLU, a merely 3-year old union, had earlier managed to organise all 13 work sites of Linde, the largest gas company in the country, providing the strength to act against the precarious employment situation. Whereas TIG continued to treat the agency labourers more or less as regular employees at the worksite, their status did have consequences. One worker tells the story of being denied a bank loan to buy a house, as he didn’t have a secure job. So he had no choice but to continue to live in his rental house.
- TIGLU, a merely 3-year old union, had earlier managed to organise all 13 work sites of Linde, the largest gas company in the country, providing the strength to act against the precarious employment situation. Whereas TIG continued to treat the agency labourers more or less as regular employees at the worksite, their status did have consequences. One worker tells the story of being denied a bank loan to buy a house, as he didn’t have a secure job. So he had no choice but to continue to live in his rental house.
- TIGLU, a merely 3-year old union, had earlier managed to organise all 13 work sites of Linde, the largest gas company in the country, providing the strength to act against the precarious employment situation. Whereas TIG continued to treat the agency labourers more or less as regular employees at the worksite, their status did have consequences. One worker tells the story of being denied a bank loan to buy a house, as he didn’t have a secure job. So he had no choice but to continue to live in his rental house.
- TIGLU, a merely 3-year old union, had earlier managed to organise all 13 work sites of Linde, the largest gas company in the country, providing the strength to act against the precarious employment situation. Whereas TIG continued to treat the agency labourers more or less as regular employees at the worksite, their status did have consequences. One worker tells the story of being denied a bank loan to buy a house, as he didn’t have a secure job. So he had no choice but to continue to live in his rental house.
- In Germany , where the number of temporary workers is expected to raise to over 1 million within the next three years (from 732,000 in 2007), the major agencies already work with unions, ensuring protection for agency workers is a part of the agreements.
- In Germany , where the number of temporary workers is expected to raise to over 1 million within the next three years (from 732,000 in 2007), the major agencies already work with unions, ensuring protection for agency workers is a part of the agreements.
- In Germany , where the number of temporary workers is expected to raise to over 1 million within the next three years (from 732,000 in 2007), the major agencies already work with unions, ensuring protection for agency workers is a part of the agreements.
- In Germany , where the number of temporary workers is expected to raise to over 1 million within the next three years (from 732,000 in 2007), the major agencies already work with unions, ensuring protection for agency workers is a part of the agreements.
- In Germany , where the number of temporary workers is expected to raise to over 1 million within the next three years (from 732,000 in 2007), the major agencies already work with unions, ensuring protection for agency workers is a part of the agreements.
- The Manpower director said that the arrangement will be a little bit more expensive for employers but also that there is a great demand for it For example within large enterprises, who want to use this as a tool to improve or keep social harmony inside their companies. Enterprises prefer high-quality agency workers , which they hope can later become permanent staff of the company, so they need a good pool of workers from which to choose. He also mentioned that some companies, such as Airbus, BMW and Audi, already have union agreements that contain requirements that call for solutions of this nature.
- There are a number of requirements to achieve the authorisation The need to follow the Association of Staff Agencies' ethical guidelines Bound by collective agreements. Have liability insurance Be a member of the Staffing Association Have been in business for at least 12 months Have an equality plan. The authorisation to perform as a labour agency is given for one year at the time, and an authorisation board tests the applicant's qualifications in accordance with the statutes.
- There are a number of requirements to achieve the authorisation The need to follow the Association of Staff Agencies' ethical guidelines Bound by collective agreements. Have liability insurance Be a member of the Staffing Association Have been in business for at least 12 months Have an equality plan. The authorisation to perform as a labour agency is given for one year at the time, and an authorisation board tests the applicant's qualifications in accordance with the statutes.
- The position of the ICEM, however, is that it is important to look at finding a solution first , before insisting on the need to sever any relationship.
- The position of the ICEM, however, is that it is important to look at finding a solution first , before insisting on the need to sever any relationship.
- Some of the BWI language has already been inserted into their existing GFAs, such as in the agreement between BWI and the Dutch company VolkerWessels .
- It’s only logical that permanent workers will want to defend what they have . As part of that process, it’s easy to consider contract and agency workers as “another workforce ”, or even a threat . Separate groups often exist. Even in those cases where both groups work on the same premises, workers often do not know each other well. Treating CAL workers as the enemy is certainly not the way to keep permanent jobs permanent. While it is a fact that CAL workers are often perceived as “ others taking over my job and willing to work for lower conditions ”, it is also a fact that this is not the reality . It is not a contract or agency worker’s decision to replace a permanent job with a precarious one.
- Among the possible methods to facilitate trade union membership for contract and agency labour workers: (Full list) Open the union to all workers . Avoid having different categories of workers being set up against one another Set up a specific section of your union to deal with the issue of contract and agency labour. If needed, change the union rules , so that it becomes possible for contract and agency labour workers to join the union Grant full union rights to contract and agency labour workers that join Encourage participation of CAL workers in trade union activities Consider the need to have alternative contribution levels, or other methods of union due collection Have an in-depth look at the possibility to provide specialised services to CAL workers , including on such issues as unemployment benefits, education on their rights, health insurance, training or career development Educate members and officials on CAL Provide legal counselling Negotiate collective bargaining agreements that take the concerns of CAL workers into account. In addition to the “ equal work for equal pay ” principle, other items can be social benefits, company benefits, training for CAL workers, health and safety, etc. Through negotiation, try to get contract and agency labour workers transferred to regular permanent jobs Work towards, where they do not yet exist, branch and/or national unions that CAL workers have the possibly to join Conduct public campaigns on contract and agency labour work in order to mobilise workers and change the political environment. Engage in solidarity actions with other unions where possible and needed, national as well as international Organise, organise and organise Recruit members into existing trade unions, or, where not possible, guarantee a smooth working relationship exists with other unions defending CAL workers Where needed, use labour, or other, courts to defend the interests of CAL workers Network with other unions, nationally and internationally, and exchange information and good practices that may assist your union with your struggle.
- Among the possible methods to facilitate trade union membership for contract and agency labour workers: (Full list) Open the union to all workers . Avoid having different categories of workers being set up against one another Set up a specific section of your union to deal with the issue of contract and agency labour. If needed, change the union rules , so that it becomes possible for contract and agency labour workers to join the union Grant full union rights to contract and agency labour workers that join Encourage participation of CAL workers in trade union activities Consider the need to have alternative contribution levels, or other methods of union due collection Have an in-depth look at the possibility to provide specialised services to CAL workers , including on such issues as unemployment benefits, education on their rights, health insurance, training or career development Educate members and officials on CAL Provide legal counselling Negotiate collective bargaining agreements that take the concerns of CAL workers into account. In addition to the “ equal work for equal pay ” principle, other items can be social benefits, company benefits, training for CAL workers, health and safety, etc. Through negotiation, try to get contract and agency labour workers transferred to regular permanent jobs Work towards, where they do not yet exist, branch and/or national unions that CAL workers have the possibly to join Conduct public campaigns on contract and agency labour work in order to mobilise workers and change the political environment. Engage in solidarity actions with other unions where possible and needed, national as well as international Organise, organise and organise Recruit members into existing trade unions, or, where not possible, guarantee a smooth working relationship exists with other unions defending CAL workers Where needed, use labour, or other, courts to defend the interests of CAL workers Network with other unions, nationally and internationally, and exchange information and good practices that may assist your union with your struggle.