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Employment Relations Research Centre Stockholm, 14/11-2014 Dealing with low wage labour migration – the Danish case Jens Arnholtz

Jens Arnholtz (University of Copenhagen) – Dealing with low wage migration in Denmark

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Page 1: Jens Arnholtz (University of Copenhagen) – Dealing with low wage migration in Denmark

dato og ”Enhedens

Employment Relations Research Centre

Stockholm, 14/11-2014

Dealing with low wage labour migration –the Danish case

Jens Arnholtz

Page 2: Jens Arnholtz (University of Copenhagen) – Dealing with low wage migration in Denmark

Tekst starter uden

dato og ”Enhedens

Employment Relations Research Centre

Stockholm, 14/11-2014

Different statistical data on number of people from the new member states in Denmark

0

10000

20000

30000

40000

50000

60000

70000

80000

900001.

kvt

2003

3.

kvt

2003

1.

kvt

2004

3.

kvt

2004

1.

kvt

2005

3.

kvt

2005

1.

kvt

2006

3.

kvt

2006

1.

kvt

2007

3.

kvt

2007

1.

kvt

2008

3.

kvt

2008

1.

kvt

2009

3.

kvt

2009

1.

kvt

2010

3.

kvt

2010

1.

kvt

2011

3.

kvt

2011

1.

kvt

2012

3.

kvt

2012

1.

kvt

2013

3.

kvt

2013

1.

kvt

2014

3.

kvt

2014

Number of people from the new

memberstates living in Denmark

(Statistics Denmark)

Number of people from the new

memberstates with active work

permits (Transitional regime)

Number of employed people from

the new memberstates including

posted workers (jobindsats.dk)

Number of employed people from

the new memberstates excluding

posted workers (jobindsats.dk)

Number of full time employed

people from the new

memberstates including posted

workers (jobindsats.dk)

Number of full time employed

people from the new

memberstates excluding posted

workers (jobindsats.dk)

Page 3: Jens Arnholtz (University of Copenhagen) – Dealing with low wage migration in Denmark

Tekst starter uden

dato og ”Enhedens

Employment Relations Research Centre

Stockholm, 14/11-2014

Regulatory change on different spheres and levels

2007 2008 2009 2010 2011 2012 2013 2014

National

responses to

EU regulation

Revision of

posting law due

to Laval ruling

Implementation

of EU directive

on transport

Temp agency

directive

implemented

National

political

regulation

Transitional

regime in force

Establishment

of RUT

Transitional

regime revised

Tax reform

(deductions)

Transitional

regime ends

Revision of

posting law

(RUT)

Tax reform

(undeclared

work)

Tax reform

(deductions,

undeclared

work)

Coordinated

control efforts

Huge increase

in authority

and resources

of tax and

health and

safety

inspectors

Collective

agreements

Construction:

adoption

negotiations,

reduced

pension

requirement

Industry:

No-housing

requirement

Industry:

reduced pension

requirement

Construction and

transport:

No-housing

requirement and

quick meetings

on collective

agreement

violations

Construction:

Collective

bargaining

break down on

social dumping

issues

Construction:

Specification of

local wage

negotiation

obligation

Municipalities 73 % use

labour clauses

in tenders

Increasing use

of chain

liability in

tenders

97 % use

labour clauses

in tenders

Page 4: Jens Arnholtz (University of Copenhagen) – Dealing with low wage migration in Denmark

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dato og ”Enhedens

Employment Relations Research Centre

Stockholm, 14/11-2014

On the ground efforts of enforcement – posting in Danish construction

In the period primo-2012 to mid-2014 4844 foreign firms posted workers to the Danish construction sector

Due to multiple short assignments or multiple work sites this lead to more than 50.000 registrations in RUT

0

500

1000

1500

2000

2500

Germany Poland Other new

member

states

Others

Number of foreign companies in Danish

Construction

0

500

01

00

00

150

00

200

00

250

00

Fre

que

ncy

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100Days

Number of days per registered posting

Page 5: Jens Arnholtz (University of Copenhagen) – Dealing with low wage migration in Denmark

Tekst starter uden

dato og ”Enhedens

Employment Relations Research Centre

Stockholm, 14/11-2014

On the ground efforts of enforcement – posting in Danish construction

All in all 44 % of the working hours done by posted workers in the sector were covered by collective agreements

In the same period Danish construction trade unions performed more than 5000 visits to on approximately 1900 of those companies in an effort to secure collective agreements with them or control that such agreements were observed

266 conflicts were started, 330 adoption agreements signed and 157 ‘48 hour’ meetings called for