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SUMMARY OF STUDY FINDINGS Eckhard Voss EUROCIETT / UNI EUROPA PAN-EUROPEAN CONFERENCE: TEMPORARY AGENCY WORK AND TRANSITIONS IN THE LABOUR MARKET Brussels, 19 December 2012 in cooperation with: Institute for Employment Studies (UK) IRES Rome (Italy) ORSEU, Lille (France) Lentic – Ecole de Gestion de l'Université de Liège (Belgium)

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Eurociett / UNI Europa Pan-European conference: Temporary agency work and transitions in the labour market Brussels , 19 December 2012. Summary of study findings. Eckhard Voss. in cooperation with : Institute for Employment Studies (UK) IRES Rome ( Italy ) ORSEU, Lille (France) - PowerPoint PPT Presentation

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Page 1: Summary of study findings

SUMMARY OF STUDY FINDINGS

Eckhard Voss

EUROCIETT / UNI EUROPA PAN-EUROPEAN CONFERENCE:

TEMPORARY AGENCY WORK AND TRANSITIONS IN THE LABOUR MARKET

Brussels, 19 December 2012

in cooperation with: • Institute for Employment Studies (UK)

• IRES Rome (Italy)• ORSEU, Lille (France)

• Lentic – Ecole de Gestion de l'Université de Liège (Belgium)

Page 2: Summary of study findings

Overview of the study

2

Case studies

2nd layer

analysis

1st layer

analysis

Systematic review of data and research on how TAW contributes to facilitating transitions in the labour market, in line with the concept of “making transitions pay”

1st layer: Overview of TAW in EU27 Gathering comparable data and information on TAW on the basis of

existing data, focussing on:- Dynamics of TAW during the last decade- Regulatory frameworks- Profile of TAW workers- Working conditions and equal treatment - Industrial relations, collective bargaining and social dialogue

2nd layer: In-depth analysis of 6 countries Following a comparative format of contents and data Review of results regarding TAW and labour market transitions Role of social partners and social dialogue

3rd layer: Case studies of labour market transitions Unemployment to work Temporary to permanent work Education to work Target groups Role of social partners

Page 3: Summary of study findings

Temporary agency work in Europe

3

In 2010, according to CIETT Economic report 2012, the total number of temporary agency workers worldwide was 10.4 million in FTEs; Europe accounted for 35%, i.e. 3.6 million

Share in total employment in EU27 today is around 1.4% on average with significant differences

Cyclical nature of TAW: employment trends before, during and after the crisisBetween 2000 and 2008, the TAW workforce increased by more than 47% while total

employment increased only by 7.8%Most significant relative increases between 2000 and 2008 in PL, FI, IT, DE and AT Increase also in matured markets such as UK (18.8%), NL (32.2%) or BE (29.6%)Employment reduction

in TAW due to the 2008crisis was much stronger than in overall employment (-17.5% compared to -1.8%)

Since 2009 however, the TAW sector againexperienced a growth thatwas stronger than employment growth ingeneral

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%Pe

netr

ation

Rat

e

Page 4: Summary of study findings

National legal and other frameworks of temporary agency work

4

Temporary agency work is very heterogeneously regulated across Europe There are differences in what is regulated – for example, whether or not this embraces

reasons for using TAW, prohibited sectors, maximum assignment length, or stipulations concerning the employment contract, training and representation rights.

Maturity: in nearly half of the EU member states, regulation started only during the last decade

Impact of the European Directive on TAW: - Development of a common understanding of temporary work agencies, temporary

agency workers, user companies, assignments etc.- Defining a legal framework in countries where it hasn’t existed so far

1960s 1970s 1980s 1990s 2000s

• Netherlands (1965)• Denmark (1968)

• Ireland (1971)• Germany, France

(1972)• United Kingdom

(1973)• Belgium (1976)

• Austria (1988)• Portugal (1989)

• Sweden, Luxembourg (1994)• Spain (1994)• Italy (1997)

• Finland, Greece , Hungary, Slovakia (2001) • Slovenia, Poland,

Romania (2003)• Czech Republic, Malta

(2004)• Latvia (2007)• Estonia (2009)• Bulgaria, Lithuania (2011)

Page 5: Summary of study findings

Profile of tempoary agency workers

5

Gender• Range from quite balanced shares (IT, NL, PL) to high shares of female TAW (UK, FI, DK, SE) and

countries characterised by the contrary (DE, AT, BE) Age

• Young people have a high share in TAW, but the share of older workers is increasing Sector composition

• Strong bias towards manufacturing in countries such as DE, PL, CZ, while in UK, NL or ES more than 50% of temporary agency workers are employed in services

• Apart from economic structures also a result of regulation and existence of other more flexible forms of employment contracts

Target groups• In particular people with a migrant background, long-term unemployed and peopole with a lower

qualification/education profile Other aspects:

• Length of assignments and average duration of contracts with the agencies differs quite significantly - resulting also from regulatory frameworks (synchronisation, part-time/open-ended contracts etc.)

• Motivation of becoming a TAW worker: “spring boarders“ being the largest single type of agency workers but there are also others that do not look for permanent/direct work (“flex-professionals“, “extra earners“, students)

Page 6: Summary of study findings

Industrial relations and collective bargaining

6

IR mirrors variety and different models in Europe Two broad groups may be identified:

- Social dialogue driven practice: In countries such as the Netherlands, Belgium, France or Italy both employers’ associations and trade unions are playing an important role in regulating temporary agency work, defining certain minimum standards and payment conditions and levels. Social partners in these countries are involved in dialogue, consultation and bargaining at all relevant levels and have established special funds and other joint institutions of self-regulation

- Market driven practice: Experience the practice in other EU countries is characterised by either weak or non-existing structures of dialogue and bargaining at sectoral or cross-sectoral level and much weaker social partners in terms of mandate and representativeness. Here, bargaining at best is taking place at micro/company level and working conditions and labour standards are mainly driven by legal minimum standards

This division is also reflected in the general picture of industrial relations and collective bargaining where two broad groups exist:

Countries, where employers’ organisations of the TAW sector are involved in collective bargaining (11 countries)

Only TAW employer associations in place without a bargaining mandate (15 countries)

Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Spain, Sweden

Bulgaria, Czech Republic, Cyprus, Estonia, Greece, Hungary, Ireland, Latvia, Lithuania, Poland, Portugal, Romania, Slovakia, Slovenia, United Kingdom

Page 7: Summary of study findings

Temporary agency work and transitions in the labour market

7

EU Directive:“(TAW) contributes to job creation and toparticipation and integration in the labourmarket”

Temporary agency work as a “bridge” and/or a “stepping stone”

Problems and difficulties- Methodical problems: often control groups are missing; control of different variables and

determinants- Studies based on large samples/data sources exist in all countries but mainly from a

descriptive perspective- A large number of surveys are based on smaller numbers of interviews amongst

temporary agency workers, agencies and user companies- As comparative data/studies don’t exist, it is not possible to quantify stepping-stone

effects for an aggregated sample of EU countries

Page 8: Summary of study findings

Temporary agency work and transitions from unemployment to work

8

High proportion of formerly unemployed as well as people without any previous professional experience (e.g. in FR or BE around 40%, in Germany more than 60%) illustrate the important role of TAW in regard to transitions from unemployment to work

A growing share of people enter the labour market from unemployment or for the first time via temporary agency work – in NL or BE around 30% of formerly unemployed persons find a job via temporary agency work

Studies based on larger statistical analysis confirm “bridging” effect of temporary agency work, but in most cases are descriptive studies based on timing of events surveys, i.e. describing the share of formerly unemployed persons that find work through TAW and stay in work for a longer period of time

Only few studies have tried to estimate a “net effect” of the stepping-stone/bridging function by comparing unemployed who returned to work via TAW with the path of those who took alternative routes back into work- The results of these surveys illustrate either no significant difference (NL study

based on CWI data 2001 - 2005) or a slightly positive effect (DE study based on statistics of the federal labour agency) in comparison to other routes

- Due to methodical differences, the results are not comparable

Page 9: Summary of study findings

Temporary agency work and transitions into permanent employment

9

Source: Ronald Dekker/Hester Houwing/Lian Kösers: Van flexibel naar vast? De doorstroom naar vast werk van een groeiende groep flexwerkers, CBS, Den Haag, 2011

Stepping stone effect of temporary agency work is an issue of debate in employment policy reform as well as between social partners

Various research confirms that there is a stepping-stone effect Studies come to quite different results regarding “adhesive effects” (both at user

companies as well as in other direct employment), e.g. Germany 7-12% (1st half of 2008) Belgium study (covering 2005 – 2008): insertion rates of 30% (after one year), 41% (after

two years) and 55% (after three years)

A type of research that wouldbe needed more:A Dutch study based on LFSdata (1996 – 2010) addressedthe question what formof flexible employmentoffers the best prospects forpermanent employment

More longitudinal studiesillustrate that stepping-stoneeffects vary significantlydepending on the labour marketsituation

Page 10: Summary of study findings

Temporary agency work and transitions from education into work

10

Young people (including those in education) are an important and sometimes the most important age group within the TAW workforce

Share of under 25 years old is high in NL (46%) and BE (37%); in FR, IT and DE are more than 40% are younger than 30 years old

TAW a more and more important entry into the first job: In France in 2010, 84% of those under 25 years entering the labour market via TAW have never worked before; in Germany, 10% of those entering the labour market for the first time in 2011 did so via TAW;

Only few research studies has compared the trajectories of young people within TAW with those choosing alternative ways

Certain groups of young people rely much more on temporary agency work than others as an entry channel into work and find it easier or more difficult to make further transitions- For young professionals temporary agency work may be an attractive way to gain

work experience with different employers and develop careers- For young people with low qualification and educational attainment, temporary

agency work often is the only chance on the labour market and they find it difficult to make further transitions into direct employment if this is not actively supported

Page 11: Summary of study findings

Temporary agency work and target groups

11

For persons belonging to target groups (e.g. older employees, persons with education/qualification level/profile that doesn’t match labour market needs, migrants and ethnic minorities) temporary agency work provides an important bridge into the labour market

France: share of older workers increase twice as much as average number of TAW workers; for more than 90% TAW provides a useful possibility to find a job

Belgium: TAW increases the chance to find direct/permanent employment also for persons belonging to target groups

Important role of TAW for labour market integration is also illustrated by many initiatives developed by the temporary agency work sector either unilaterally or in cooperation with public employment administrations

Ethnic minorities Low qualification

Sour

ce: I

DEA

Cons

ult 2

009

Page 12: Summary of study findings

The role of social partners for fostering transitions in the labour market

12

The role of social partners is pivotal for “making transitions pay” as they complement regulation on temporary agency work and develop initiatives to enhance the quality of transitions

Bipartite funds so far are the onlymechanisms/institutionsthat focus on skills developmentand employability of temporaryagency workers at sector level

In France, 80% of temporaryagency workers state thattraining measures undertakenwere useful to find the current job

Bipartite funds and other jointinitiatives as well as collectivebargaining agreements are alsoimportant to enhance the employment conditions of temporary agency workers

Regular monitoring and reviewing of training activities are a further important aspect of bipartite training funds that also identifies challenges and further needs, e.g. stronger concentration of activities for temporary agency with a low educational profile or no vocational qualification

But: Our sample of countries is not representative

Page 13: Summary of study findings

Assessing the impact of social dialogue on temporary agency work

13

ROLE OF SOCIAL DIALOGUE

STRONG

NETHERLANDS

BELGIUM

FRANCE ITALY

STRONG TO MEDIUM ROLE

DENMARK

GERMANY

AUSTRIA SWEDEN

LUXEMBOURG

SPAIN

FINLAND

WEAK ROLE PORTUGAL

POLAND

WEAK TO NO ROLE AT ALL

IRELAND

UNITED KINGDOM

GREECE, HUNGARY, SLOVAKIA

SLOVENIA, ROMANIA

CZECH REPUBLIC MALTA

LATVIA, ESTONIA

BULGARIA, LITHUANIA, CYPRUS

MATURITY OF REGULATION

1960S 1970S 1980S 1990S 2000S

Page 14: Summary of study findings

Conclusions

14

1. The study confirms that temporary agency work is a form of employment that not only contributes to the fluidity (flexibility) of the labour market but also provides opportunities in particular for unemployed persons and target groups as a bridge into work

2. The question of “what fosters quality transitions” is more difficult to assess – here, apart from the economic climate, the labour market structure and regulatory framework of temporary agency work, social dialogue and initiatives and practices developed by social partners and established by collective bargaining at national/sector level seems to play a key role.

3. Our study shows that in particular in those countries which have established bipartite funds and related initiatives, these also have triggered follow-up activities such as monitoring, surveys amongst temporary agency workers and in general a strong interest in issues such as training, skills development and employability

4. Against this, and the fact the main challenge for the future will be to broaden good practice experience and initiatives that complement legal regulatory frameworks by joint initiatives and practice of social partners

Page 15: Summary of study findings

Contact

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Eckhard Voss

Senior researcher and partnerwilke, maack und partnerSchaarsteinwegsbrücke 2 D-20459 Hamburg

[email protected]: +49(0)40.432787 41Fax: +49(0)40.432787.44 www.wmp-consult.de