what is cal?

Download What is CAL?

If you can't read please download the document

Upload: wenda

Post on 08-Jan-2016

22 views

Category:

Documents


0 download

DESCRIPTION

The issue of contract and agency labour (CAL) was established as a key priority for the ICEM at the ICEM’s World Congress in 2003 - PowerPoint PPT Presentation

TRANSCRIPT

  • The issue of contract and agency labour (CAL) was established as a key priority for the ICEM at the ICEMs World Congress in 2003

    At the 2007 ICEM World Congress in Bangkok, virtually all participants mentioned the continuous growth of the phenomenon - and talked about the problems that are the result of it. Time and again, reference was made to a clear need for continued action on this issue.

    This issue is to take centre stage at the 2011 ICEM World Congress again.

  • What is CAL?

  • Many different words exist to describe what essentially is a precarious work relationship.

    Often, CAL jobs are new ways of employment, doing away with what used to be standard, meaning a permanent full-time job, directly employed by a single company, with a regular working week and benefits, and the protection, including against dismissal, that comes from a legal status as an employee.

    ICEM concentrates on contract and agency labour, but there are also other forms of precarious employment (informal work, simply badly paid jobs)

  • What is CAL?Some of the precarious job terms used

  • Contract labour

    The word contract is used in two ways. First in the sense of temporary, short-term or part-time contracts (sometimes through an agency).

    Secondly, as in contracting out, which is when a company contracts out work to another employer. In some cases, this can also be to an individual. The work may or may not be done at the same location. The new employer may take on none, some, or all of the staff members of the existing workforce.

    Whereas the first usually entails an employment relationship, the second usually brings about a commercial relationship.

    Agency labour

    Agency labour is where a company needs workers and, rather than employing them directly, asks an agency to send the required number of workers.

  • Who does it affect?Contracting out, slowly but surely, has become a problem for many, if not most, workers in the world, affecting workers everywhere, in different regions, different sectors and different lines of work.

    It spread from a relatively limited number of sectors - it always was a problem for migrants in the construction sector, for example - to all industries, affecting jobs that were considered safe. A leading example are the textile companies, who outsource everything, except branding.

    Inside the ICEM sectors, some sectors appear to be more concerned than others. The mining and diamond sectors, are dealing with huge numbers of contract workers. In the mining sector, there are countless examples where the contracted workforce outnumbers the permanent workforce.

    However, it also seriously affects the chemical, paper, materials or energy industries.

  • Who does it affect?CAL used to be a problem affecting only certain types of jobs : cleaning, catering, security, transport, maintenance or repair.

    Later, others jobs were outsourced : sorting, packing, loading or unloading, engineering, warehousing and administration or clerical work.

    Now, almost everything can be contracted out, including, for example, core production, extraction or sales jobs.

    The result: two categories of employees: core workers (of which there are less and less), who commonly receive relatively good employment conditions, on the one hand, and contract or agency workers or workers in other precarious jobs (of which there are more and more), on the other hand, with the latter usually getting the inferior deal.

  • Main problems causedCAL is the result of a deliberate employers decision to lastingly limit or reduce the permanent workforce. Arguments used to do this include the need to maximise flexibility (read: make it easier to dismiss workers from one day to the other) or the search for cheaper alternatives because of market pressures.

    The end result of the outsourcing effort commonly is a shift of the risk onto the workers, with jobs typically becoming non-permanent, or temporary, casual and insecure. Workers in these jobs are usually not (well) covered by labour law, nor by social security protections.

    Identifying the real employer, and establishing under whose responsibility such issues as working conditions and benefits fall, is a often a huge problem.

    A well-defined work relationship between an employer and an employee does often not exist. A major (and growing) problem is that, through the use of CAL, the bargaining unit is getting so small that it is too easy for any company to escape its responsibilities.

  • Among the main problems for CAL workers

    Job insecurity and an uncertain future. Uncertain working hoursLow(er) wages, or irregular wagesNo annual pay rise or bonus, fewer benefits overallThe right to sick leave often does not existLimited or no access to social benefits, includingpension rightshealth insurancematernity/paternity rightsholiday rights and paymentsIncreased risk to health and safety problemsPoor, or no training - same for career developmentDifficult or no access to bank loans or child careLack - or denial - of rights at work, including the right to join, or form, a union and the right to collective bargaining

  • Among the main problems for unions

    CAL is a threat for trade unions as the phenomenon is often simply misused as a tool to put pressure on workers not to join a union

    Many contractors/agencies to negotiate withUnclear which employer is responsiblePermanent workers can be hostile to contract workers. Sometimes, 2 separate workforces are created with different interests.Contract and agency labour workers are legally, or practically, not allowed to join the union, or a union.Contract and agency workers dont see an immediate value in joining the unionContract workers are scared of loosing their jobsUnions are losing membersCollective bargaining is more difficult as there is less bargaining power

  • Among the main problems for society

    As CAL workers are commonly poorly paid, they pay less taxes, contributing much less (if at all) to the pension systems. It is part of a race to the bottom.

    As CAL workers encounter more health and safety problems than other workers, they cost more to the health insurance system (in addition to paying less into the system),

    Whereas education is the key to progress in any country, CAL workers get less training and acquire less skills.

  • 2009 USA Oil disasterA 2009 report by the US Minerals and Management Service warned against the complicated chain of MNEs, contractors, subcontractors and sub-subcontractors in the oil rig drilling industry (even before the Deepwater Horizon oil spill disaster in the Gulf of Mexico in 2010), quoting safety and environment concerns.

    (Later, BP underlined that the responsibilities at that platform were shared by various companies.)

    The US report investigated almost 1,500 oil platform accidents. The vast majority of these were not caused by defects, but by lack of communication, lack of (and ignoring of) safety procedures.

  • Tricks and abusesKeeping workers on a series of consecutive short-term contracts - typically a few months (sometimes 3, sometimes 6, depending on what the law, or CBA, says) and have them re-apply time and time again (often a loophole in the law). (Thai Linde example: Dismiss workers after 17 months as they would get CBA benefits after 18 months).

    Or ask them to re-enter under another company name or even under another name.

    Creating fake agencies or (fake) (agency) sub-contractors, catering to only one company (BMW Leipzig Germany 2011: workers started working for a daughter company with a drop in wages of 40%) (The permanent worker gets 15 for fixing the left hand door of the car, the agency workers gets 8.5 for the right hand door.) (source: MO).

    Using seasonal workers in every season.

    In Latin America (Uruguay, Colombia, ) cooperatives are widely used to avoid labour contracts, creating millions of bogus self-employed workers. Cooperatives simply became a part of the subcontracting chain.

  • In many countries, as agency or subcontracted workers are not regarded as employees of the user enterprise, CAL workers are often prevented to participate in strikes as this is considered illegal secondary action.

    Agency or outsourced workers are quite often (in many countries) listed as service sector workers, making it impossible for them join an industrial sector union.

    The Polish Ministry of Labour estimated (in 2009) that half of the agency workers do not have employment contracts, but, instead, service or commission contracts for a specific task or project (bogus self-employed).

    In Serbia, Coca-Cola sells its trucks to its drivers, who become self-employment (no rights, no paid leave, no benefits, no). (bogus self-employed)

  • In some cases, agencies themselves are allowed by law to directly employ workers through a contract of unlimited duration.

    Even though the worker is guaranteed a permanent salary, this often leads to situations where there is no longer is any link between the salary of a worker and the salary of a comparable worker at the user-enterprise, opening the door for further misuse.

    In too many countries (e.g. South Africa), employers start hiring workers through agencies once independent contracting becomes illegal. Or they switch from using agencies to using subcontractors once that becomes regulated.

    In some other countries or situations, its the other way around.

  • In New Zealand, dependent contractors have contracts which define themselves as contractors (providing contracts for services) and self employed. They are responsible for paying their own income tax and other levies. (bogus self-employed).

    However, their contracts bind them in to providing services for a single employer, they have little or no say over the terms of that contract and are required to provide a level of service which usually has no hours of work protections. (NZDWU document on precarious employment, 2010)

    In Malaysia, companies advertise jobs for foreign workers in front of their factory gates, and identify and interview potential candidates themselves. Identified candidates are then sent to an employment agency to sign a contract, usually without receiving a copy. (Presentation on CAL at an ICEM seminar in Malaysia, 2010)

  • Employers viewsThe new "Generation X" and "Generation Y" are no longer willing to commit to long-term employment in the hands of a single employer, and favour self-managed development plans and career paths that suit their individual aspirations.

    Permanent and especially unionized workforces tend to possess a "sheltered employment" syndrome, which reduces productivity and installs a "I just need to show up" mentality.

    More than 32% of these (temporary, part-time and contract) employees secured traditional, permanent jobs within 12 months - and 47% did so within 3 years.

    Source: CAPES reaction to COSATU, South Africa, 2009

  • Agency workers are the first to be laid off when business turns bad.

    In Cietts words: The flexible component of a companys workforce thus serves as a buffer in times of crisis, softening the impact on permanent staff.

    Agency workers are the first hired when business recovers.

    In Cietts words: The agency work industry will be among the first to create jobs as soon as the economy recovers, as companies first hire agency workers to meet an increase in orders, before recruiting permanent staff when the situation stabilises.Source: Ciett, 2010

  • Many employers argue that open-ended contracts are difficult due to the huge dismissals fees.

    Butaccording to FGTB figures of 2010, over 80% of all Belgian white-collar workers (a country with decent dismissal fees, at least for white-collar workers), get a termination fee of 3 months salary or less.

    .golden parachutes are not for ordinary workers

  • (More than)A few statistics

  • Higher than average temporary employment is reported in Spain (34%), Poland (27.3%), Portugal (20.6%), Slovenia (17.3%), Sweden (17.3%), the Netherlands (16.6%) and Finland (16.4%). Germany is almost at the EU27 average (14.5%, compared with the average of 14.4%). (Eurostat, 1990-2005)Temporary employment

  • (Eurostat, 1990-2005)Source: Eurostat, Labour Force Survey 2011

  • Temporary employment advanced economies 1991 2006(source: IILS - ILO)

  • Temporary employment transition economies 1998 2006(source: IILS - ILO)

  • The German Statistics Institute said in 2010 that more and more workers have a fixed-term contract while they would prefer a permanent one. In 2008, 8.9% of employees had a fixed-term contract, up from 5,7% in 1991. For new recruits, this figure reached 47%.

    In France, the vast majority (about 80%) of all job entries into the private sector were made, already in 2004, through fixed-term contracts. (CEPR).

    In Portugal, more than half of all employees younger than 25 had temporary contracts in 2010 (Financial Times).

    Fixed term work affects more workers than agency work

  • In Croatia, almost 90% of new recruitment is for a fixed term, which prevents many people who are newly entering employment or changing jobs to join a trade union. (FES 2009)

    In October 2006, about 20% of all employees in the Netherlands had a fixed term contract (not counting people working through temp agencies). In October 2009, this number had risen to 24 %, while the number of agency workers had decreased from 5.5% to 4.5%. (ICEM CAL country report 2010)

    In New Zealand, almost 10% of all workers has a fixed-term contract in early 2008. (NZDWU Document 2010)Fixed term work affects more workers than agency work

  • From the 2011 annual report of Ciett (the International Confederation of Private Employment Agencies)

    Across the world, 9 million agency workers (full-time equivalent) were employed daily in 2009, a decrease of 6% since 2008. The number of agency workers has more than doubled from 1997 to 2007.(Ireland x 8.75, Japan and Sweden x 4, Germany, Switzerland, Finland, Denmark and Norway x 3)

    The average European agency work penetration was 1.5% in 2009, down from 2% in 2007. In Japan, this figure still grew in 2008 (from 2.1% to 2.2%), but also went down in 2009, to 1.7% (due to the impact of the economic crisis)

  • The global annual turnover of the Private Employment Agency industry amounted to 203 billion in 2009 Source: Ciett 2011 - The agency work industry around the world

  • The agency work industry in Europereturned to growth in 2010

  • Europe is the largest in terms of Ciett affiliates income, followed by USA and JapanSource: Ciett 2011 - The agency work industry around the world

  • Source: Ciett 2011 - The agency work industry around the world

  • Source: Ciett 2011 - The agency work industry around the world

  • Source: Ciett 2011 - The agency work industry around the world

  • TAWLarge firms play an important role in the TAW (Temporary Agency Work) sector. However, their dominance of national markets varies a great deal between countries.

    Large firms are generally important in the European countries, in particular those with the most extensive use of agency work.

  • Adecco is the world's largest private employment agency, serving over 100,000 clients (down from 150,000 clients in 2007) in over 60 countries in 2011. The company says it is connecting more than 700,000associates every day. Over 90% of its sales comes through providing temporary staffing.

    Randstad is the second largest temporary staffing and employment services agency in the world. The company operates in over 40 countries through 4,195 locations, employing 521,300 individuals every day in 2011 (up from 465,000 in 2009).

    Manpower states it places 3.5 million people (down from 4 million) yearly in permanent, temporary and contract positions through offices in 80 countries. It claims it has 400,000 clients per year.

  • According to FNV Netherlands, there were not only around 100,000 agency workers sent out daily in 2009 by reasonably well-behaving bona-fide agencies, there is also an equal 100,000 sent out through (much) smaller, less credible agencies.

    33% of all Belgian agency workers works with day contracts (FGTB figures, 2011). 22.4% of all new Belgian job openings go to agency workers. 8% of the remaining 77% are for ex-agency workers and an additional 19% gets a temporary contract.

    That means that only 49% gets a contract of unlimited duration when hired. (FGTB 2010)

  • Gender - YouthIn Japan, 70% of non-regular workers are women (2007).

    In Thailand, 80% of all contract workers are women (2007).

    In Korea, 67.7% of women workers are non-regular (versus 32.3 % for men) (2008). The average wage of a female non-regular worker in 2008 was 67% of a typical male worker.

    In Australia, 1 in 3 women was casually employed in 2008, paid 21% less than permanent workers.

    In New Zealand in 2009, 70% of all agency workers were female.

    According to 2011 Ciett figures, in 2009, more than 3 in 5 agency workers were aged less than 30.

  • Gender Differences for agency workersSource: Ciett 2011 - The agency work industry around the world

  • Most agency workers are aged below 30Source: Ciett 2011 - The agency work industry around the world

  • Statistics - EuropeOn average, every year, between one-fifth and one-quarter of all European workers changes jobs.From: European Parliament Resolution on Atypical Contracts, 2010

  • Even when correcting for factors such as education and tenure of permanent contracts, temporary workers systematically receive lower wages than workers in open ended contracts. (Source: IMF 2010).

    For most European countries, the wage gap is around 15 to 25%. (Source: CSID 2010)

    In West-Germany, average gross income in 2009 was 2,805 a month, almost twice as high as the 1,456 for agency workers. (source: DGB)

  • European differences: in the UK, some 70% of temporary work is in the service and public sectors. In France, 75 % is in the construction and the manufacturing sectors.

    Temporary workers in the EU are mostly men. However, in some Nordic European countries, they are predominantly female.From: European Foundation for the improvement of living and working conditions, 2007

  • Another difference is in the percentage of young/old agency workers, from around 80% under 26 years in Poland, to almost 25% between 45 to 60 in Denmark.

    or in the duration of agency assignments, from short (an average of 1.9 weeks in France) to much longer

    .63% of all Belgian agency workers in the private sector has been working as an agency worker for over 1 year, close to 40% for over 3 years. (FGTB sources, 2009)

    From: Temporary agency work and collective bargaining in the EU (Dec. 2008)

  • Source: Ciett 2011 - The agency work industry around the world

  • Source: Ciett 2011 - The agency work industry around the world

  • Inconsistent and often limited figures In the UK, the figure for agency workers varies from 1.4 million (employers organisation) to 270,000. (Labour Force survey, 2008)

    In the Czech Republic, agencies are obliged to report data annually to the Ministry, or attract a fine. However, only a third of all agencies complies. The requirement is not enforced partly because the Ministry cannot cope with current levels of data given the large number of agencies now operating. From: Temporary agency work and collective bargaining in the EU (Dec. 2008)

  • Trade union density for agency workers differs widely, also inside Europe. It ranges from Denmark (50%) and Finland (44%), over Netherlands (17%), Austria (5%) or Germany (4.3%) to Italy (1.7%), France (0.9%) and Slovenia (0.18%). In Sweden, a difference is noted between white-collar (17%) and blue-collar (50%), the latter figure might reflect higher exposure to trade unions in the user companies. From: Temporary agency work and collective bargaining in the EU (Dec. 2008)

  • An August 2009 IG Metall + University (Germany) survey finds that agency labour is increasingly being used more strategically by enterprises as a way of passing on the business risk of the cost of longer-term employment.

    In 2008, in Germany, 66% of all employed people had a regular job (secure jobs with social benefits and at least 20 hours a week). In 1998, that was still 72.6%.

  • In Germany, the Hartz reforms included the creation of mini and midi-jobs which are typically low quality part-time jobs and established small grants for entrepreneurs to build a group of self-employed workers.

    This category of self-employed workers came to be known as Ich AG, or Me inc..

    The percentage of part-time workers in Germany rose from 14 to 22.8% between 1991 and 2004.

    Similar to experiences in other countries, this employment status is made up of 86% women.Source: Moving from precarious work to Decent work, TUAC, 2009

  • In many Central European and Balkans countries, the legal exclusion of certain larger groups of persons (often including contract workers, e.g. Poland ) from trade union membership is identified as a considerable problem and something which is no longer compatible with the principle of freedom of association. (Source: FES 2009)

    According to 2010 figures, nearly 75% of foreign companies and 35-50% of Russian companies use agency labour - about 0.2% of the work force. But many unregistered agencies exist and real figures are much higher. (Source: Association of European Business)

  • Higher-skilled white-collar employees have more permanent open-ended contracts than lower skilled.

  • Agency workers feel they have fewer prospects for career advancement

  • It is a bad sign of the times that the European Foundation for the improvement of Living and Work Conditions (an EU agency), as well as its subsidiary, the European Working Conditions Observatory, both published studies dealing with very atypical work in 2010.

    Very atypical work is defined asvery short fixed-term work of less than six months (which may also include very short temporary agency work); very short part-time work of less than 10 hours a week; non-contract work; zero hours or on-call work.

  • From these 2 studies on Very Atypical WorkEmployment contracts in the EU in 2005

    76% of all employees have a standard employment (meaning an indefinite, full-time employment contract).

    Atypical employment: 14% of all contracts

    Very atypical employment represents 6%.

    Other categories (apprenticeships, other non-specified contracts, ): 4%.

  • On-call work, or zero hours work, is an (in many countries illegal) employment form where the number of working hours is not specified, but where workers are requested to be available in case the company needs them.

    The highest prevalence of zero hours working was found in the UK and Austria (about 5% of the workforce), followed by Estonia and the Czech Republic (around 2.6%).

    In Finland, two surveys commissioned by the trade unions highlight that 4% to 8% of respondents are involved in on-call work. From the studies on Very Atypical Work

  • A large proportion of homeworking is in fact bogus self-employment.

    Empirical evidence from OECD research indicates that temporary jobs tend to provide less favourable conditions than permanent ones, especially in relation to wages temporary employment is found to be associated with a wage penalty of up to 24% in the Netherlands and averaging about 15% in a number of EU countries (OECD, 2002).

    On average in the EU27, employees without a contract account for about 7% of employment. (in Ireland 28%, in Greece 26%)From the studies on Very Atypical Work

  • Statistics Latin America

    In the Peruvian mining sector, only 16,000 workers were permanent workers in 2008, out of a total of over 85,000. In the early 90s, 95% were still listed by ministerial figures as direct permanent workers. (source: ICEM project report)

    There are more CAL workers in the Chilean copper industry in 2011 than there were permanent workers. (source: ICEM project report)

    In Colombian Ecopetrol, there were 13,850 permanent workers in 1975, vs. 230 temporary and 500 subcontracted workers.

    In 2011: 8,000 permanent workers, and 30,000 temporary and subcontracted workers. (source: USO Colombia)

  • At the 2011 ICEM Colombia CAL Conference, it was reported that only around 35% of all workers in the mining, glass, paper and energy industries have a direct employment contract. 65% is outsourced.

    Carbones de Cerrejon in Colombia, the world largest open-pit coal mine, employs around 5,300 workers in 2010. 6,000 additional workers were employed at the mine by subcontractors. (Source: Sintracarbn 2010)

    One company in Colombia (Seatech international, food sector): 1,500 workers, of which 13 are directly employed. (Source: IUF 2011)

  • In Ecuador, some 75% of the overall industrial workforce is contract labour. (Source: 2009 - National Federation of Chambers of Industry in Ecuador)

    Contract workers in the oil and gas industries of Trinidad and Tobago earn approximately 40 per cent of the income earned by company employees in the industries. (Source: 2009 ILO Survey response)

  • A questionnaire by the ICEM Brazil social dialogue project in 2008 to unions in 15 major Brazilian companies in different ICEM sectors on

    what is the main target we should deal with

    lists the issue of subcontracting (100% of all respondents mentioned it as a priority) as the number 1 priority to deal with, before Corporate Social Responsibility and Sustainable development.

  • Source: ICEM co-sponsored research Brazil chemical sector, Nov. 2009Permanent vs. CAL workers in the Brazilian Chemical sector

  • Results of research carried out in Latin America in 2010, by RedLat, indicates that

    There are more than 50 million outsourced workers in this region.In Argentina, Brazil, Mexico and Uruguay, outsourcing rates vary between 30 to 40% of the formal workforce.In Colombia, Ecuador and Peru, outsourcing rates vary between 40 to 50% of the formal workforce.It is very difficult to get good data.

  • Statistics North AmericaPart-time, contract, and temporary work as well as self-employment, now corresponds to 1/3 of the Canadian workforce nationally. (TUAC Document 2009 - 2008 figures)

    Almost 70% of the self-employed group in Canada can be considered disguised employment. (TUAC 2009 Document - 2004 figures)

    The US Government Accountability Office has reported that the number of contingent workers who are independent contractors, temporary workers, subcontracted and leased workers and part-time workers stood at approximately 31% of the total workforce. (2006)

  • Statistics USASource: McKinsey Global Institute, 2011

  • A 2007 Mexican study found that approximately 60% of the 400,000 workers in Mexicos electronics industry work for temporary agencies, with some companies employing as much as 90% of their workforce through sub-contractors. (source: Cereal) Using official Mexican census sources, a 2009 study reported that fully 10 % of the Mexicos workforce was employed by temporary agencies. (Source: Center for Labor Research and Union Advisement )

  • Statistics Asia/PacificIn Korea, 50.2% of the labour market was organised in 2010 (down from 54% in 2007) through non-regular jobs (agency, contract, part-time or temporary work).

    On average, Korean non-regular workers worked the same amount of hours as their permanent directly employed counterparts in 2008 (an average of 46.6 hours per week). Unfortunately, again on average, they earned only 51,9% of the Korean permanent workers salary in 2008. That was 53% in 2000 and became 46.8% in 2010.

    In Singapore, the number of contract and casual workers increased by over 300 % from 2001 to 2007.

  • Coal India Limited employs some 420,000 permanent and 200,000 contract workers (2009 figures).

    In the Indian Cement sector, the ratio of CAL workers was estimated by the unions in 2011 at between 75 and 90%, depending on the state.

    According to a 2011 India Labour ministry study, almost 32% of the labour force in the public sector in India is on contract, as against 30% in the private sector.

  • In the Philippines, a February 2010 ILO study found that the rate of contractualisation has risen to 70% of the workforce.

    Citing reports from the World Bank and the ILO, the Indonesian national centre KSBSI said in 2011 that outsourcing and the contract system has sharply reduced the number of permanent workers in the country, from 67% of the total formal labour workforce in 2005 to only 35% in 2011. In its Pakistan Khanewal Lipton Tea factory, Unilever employed, until late 2009, 22 permanent employees and 723 agency workers. The non-permanent workers earned 1/3 of the salary of the permanent workers (if they managed to work the whole month).

  • In Japan, the category of CAL workers only came into existence 20 years ago. Their number rose to 17 million in 2004 - over 33% of the labour workforce - up from 20 % in 1990.

    The rate of short-time workers in employee pension insurance in Japan in 2008 was 30%. (It was 80% for regular workers). In Korea, 6 out of 10 non-regular workers were not enrolled in unemployment insurance in 2009.

    In Australia, in the early 1990s, around 23% of the workforce was casual. In 2008, that already was 27%. According to 2010 CFMEU figures, the use of contract labour in the mining industry stood at about 30% of all employment.

  • Statistics ICEM Asia MNC Project - 2009

  • Statistics ICEM Asia MNC Project 2011 CAL of total workforce

  • From an ICEM seminar in November 2010 in Indonesia

    Direct permanent workers get a decent wage (defined as enough for a family to survive on) in 16 out of the 23 companies present. On average, the direct permanent workers earn around 2.5 million Indonesian Rupee (about 200 Euro).

    In contrast, a decent wage was paid to CAL workers in only 1 out of 23 companies. These CAL workers, working for the same multinational companies, but through a subcontractor, get (on average) only 1.25 million Indonesian Rupees (about 100 Euro) - so about half - for doing the same job.

    Judging from the figures quoted at the seminar in Indonesia, typically around 20 to 50% of the workforce is outsourced, depending on the company. Sometimes it is even more.

  • From an ICEM seminar in November 2010 in India

    Without exception, all average salaries quoted by outsourced workers in India from (from Lafarge, BASF, Rhodia, Holcim, FAG, Goodyear and others) were lower (usually much lower) than what is considered to be enough to maintain a family.

    Around 25 to 60% of all workers in the ICEM sectors were said to be outsourced in one way or another.

    For these outsourced workers, an average wage is 4,000 to 6,000 Indian Rupees (or about 65 to 100 Euro), while the suggested needed living (survival) wage was said to be 15,000 Indian Rupees (or about 250 Euro).

    A typical wage for a directly employed permanent worker in India in the ICEM sectors (doing the same job as the outsourced worker) is around 15,000 to 20,000 Indian Rupees (or 250 to 350 Euro).

  • Trade union density for CAL workers is low

    In Japan, 4.4% of non-regular employees are trade union members (2008)

    In Korea, 3 % of atypical workers belong to unions. (2008)

    In Australia, 9.4% of casual workers are union members, versus 30.1% for permanent employees. (2009)

    In Malaysia, the ICEM Asia Social Dialogue project, which started in 2008, still needs to find its first CAL worker who belongs to a union. (2011)

  • Statistics - AfricaA 2008 South African Labour Department study highlights the alarming increase of subcontracted labour in the South African mining sector, mainly using workers from foreign countries such as Mozambique and Lesotho, often in an effort to avoid direct accountability in cases of accidents and death.

    Over 60% of all staff of South African utility company Eskom was temporary in 2008.

    Employment informality within the formal mining sector increased from 90,231 jobs in 2003 to 122,589 in 2005, with subcontracted workers commonly being forced to work under dangerous conditions without protective clothing.

  • According to the Labour Dept study, It is necessary to re-conceptualise the informal economy from its origins 3 decades ago as a description of the urban poor in developing countries, to a recognition that informality does not exist in small, unregistered enterprises, but is increasingly found inside formal enterprises through the rapid growth of casual and subcontracted work.

    It was estimated in 2009 that around 500,000 workers in South Africa are employed by labour brokers.

    According to the NUM, labour brokers in South Africa usually take as much as 50% - in some cases up to 70% - of what the company pays to the labour broker as their fee.

  • In many Sub-Sharan countries, unions affiliate a lot of CAL / informal workers.

    In Guinea, for example, 40% of all members of ICEM affiliate Sutids are journaliers (day workers). (2010)

    Problems are enormous in many sectors, for example small scale mining.

  • Statistics - Health and SafetyIn the USA,19 percent of the day labourers reported work-related injuries that required medical attention in 2006, compared to less than 5 percent of workers in all private industries and about 6 percent of all workers in construction.

    In Belgium, agency workers were twice as likely in 2009 to have an accident compared to permanent workers.

  • According to Brazilian ICEM affiliated FUP, 280 Petrobras workers died between 1995 and 2009. 226 of them were outsourced workers.

    According to the ICEM affiliated Peruvian FNTMMSP (mining), 49 miners died in the first 9 months of 2009. 37 were working for subcontracting companies.

    Figures by Fundacion Coge, grouping 67 companies in the Brazilian electricity sector, showed that 13 times more CAL workers died in 2009 than permanent workers in Brazilian electricity companies.

  • 2008 Canadian research finds a link between "precarious employment" and poor mental health, showing that part-time workers with no job security will develop not only more physical, but also 3 to 4 times more mental health problems than their full-time counterparts. This, in turn, leads to a 50% increased risk of heart diseases.

    The main reasons include inequality, fear (of termination), the combination of high demands and low control.

    This is confirmed by UK research (Department for Business Innovation and Skills), which found that workers in insecure jobs are more likely than other workers to suffer from mental health problems, including depression (2008).

    Evidence from OECD research (2008) also indicates that atypical employment is an important determinant of mental well-being.

  • Statistics - Training and Education

    In Belgium, 33% of all temporary agency workers receive employer-paid training over a specific period of time, compared with 75% of employees with open-ended contracts. (EWCO 2010)

    A UK 2007 Labour Force Survey shows that only 8% of agency workers had received any job-related training during the previous four weeks, compared with 16% of all employees. Furthermore, over twice the proportion of temporary agency workers (61%) had never been offered training by their employer, compared with the proportion of all employees (30%). (EWCO 2010)

  • Statistics - The crisisCAL workers are time and again the first victims of any crisis. Agency workers are the first go and they go in masses. Between mid 2008 and mid 2009, the number of workers with a temporary contract in the EU-27 zone dropped by 6.3%, versus a drop of only 1.3% for employees with a permanent contract. (source: Eurostat 2011)

    Temporary Work Agencies in the Netherlands saw a reduction of 25% of total hours worked by agency workers in 2009. That was 50% in the Czech Republic.

    If a job disappears in Sweden, workers can have their job back if the company decides to restart the job within 9 months. In a time of crisis, many employers wait 9 months and then hire a temp.

  • For 2010, after the labour market hit bottom in December 2009, 27% of the 1.1 million new jobs in the US have been temporary ones. That is triple the ratio of temps hired after the last recession ended in 2001.

    That could be great news for the labor market, since companies typically hire temps before expanding permanent staff. Or it may illustrate a shift in the U.S. work force. (Source: Wall Street Journal article, February 2011)

  • The ICEM QuestionnaireIn the second part of 2008, the ICEM carried out a global survey of its affiliates on the issue of CAL, the results of which were released in early 2009.

    Over 100 ICEM affiliates replied, from 49 different countries, from all continents.

    Where possible, the same (or similar) questions were asked as in a similar 2007 survey by the International Metalworkers Federation (IMF).

    A shorter follow-up questionnaire was done in late 2009 / early 2010.

  • 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

  • Do workers in your country feel less secure as a result of the changing employment relations?IMF survey: 9 out of 10

  • Please provide an estimated share of the contract and agency labour work in your sector(s) in your countryIMF: 44%IMF: 13%IMF:33%

  • Are wages of contract and agency labour workers in your country much less than for permanent employees in similar jobs?

  • If wages are lower, at what percentage of a permanent workers wages are they?

  • 78% replied that wages of CAL workers are less than for permanent employees in similar jobs - 2 out of 3 said wages are much less in the IMF survey.

    31% of all ICEM affiliates answered that CAL wages were, on average, less than half of what permanent employees received - 33% said the same in the IMF survey.

    34% said that CAL workers receive 50 to 75% of permanent employee wages - 25% in the IMFs case.

  • Workers with high skillsWorkers with limited or no skillsMigrant workersOlder workersYoung workersWomen workers

    Which groups of workers in your country most often work in contract and agency labour jobs? 1 = not affected 5 =very often in precarious jobs

  • In which areas, and to what degree, do employers evade their obligations to contract and agency labour workers? 1= fully complies 5=completely evades obligationsOvertime paymentsVacation and holidays Maternity and family leaveSocial security and pensionsOccupational health and safety

    Chart2

    3.3389830508

    3.6551724138

    3.3392857143

    3.375

    3.2456140351

    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.

    Sheet1

    Sheet1

    581

    8

    Has the share of contract and agency labour (CAL) in your sector(s) in your country increased over the last five years

    Has the share of contract and agency labour (CAL) in your sector(s) in your country increased over the last five years

    Blad1

    131

    46

    Which type of job is being outsourced most in your sector(s) in your country?

    Which type of job is being outsourced most in your sector(s) in your country?

    47.5454545455

    43.4545454545

    9

    Can you provide us with an estimate of how many core jobs vs. how many non-core jobs

    Can you provide us with an estimate of how many core jobs vs. how many non-core jobs

    47

    13

    Are wages of contract and agency labour workers in your country much less than for permanent employees in similar jobs?

    Are wages of contract and agency labour workers in your country much less than for permanent employees in similar jobs?

    17

    21

    5

    If the answer to 1.8 was yes, please indicate the estimated average wages paid to contract and agency labour workers in your country as a percentage of that received by permanent employees:

    If the answer to 1.8 was yes, please indicate the estimated average wages paid to contract and agency labour workers in your country as a percentage of that received by permanent employees:

    3.3389830508

    3.6551724138

    3.3392857143

    3.375

    3.2456140351

    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.

    50

    6

    4

    Do workers in your country generally feel less secure as a result of changing employment relations?

    Do workers in your country generally feel less secure as a result of changing employment relations?

    32

    27

    Does your union have contract and agency labour workers as members?

    Does your union have contract and agency labour workers as members?

    36

    22

    Is organising contract and agency labour workers a priority for your union?

    Is organising contract and agency labour workers a priority for your union?

    38

    22

    Has your union ever been involved in negotiations during a contracting out process?

    Has your union ever been involved in negotiations during a contracting out process?

    11

    16

    31

    42

    Does your union find it easier, or more difficult, to organise CAL workers in your country, compared to 5 years ago?

    Does your union find it easier, or more difficult, to organise CAL workers in your country, compared to 5 years ago?

    43

    19

    Does your union provide information or education on contract and agency issues to union members?

    Does your union provide information or education on contract and agency issues to union members?

    4.4038461538

    4.431372549

    4.4583333333

    4.1

    3.5454545455

    4.3529411765

    3.86

    3.5918367347

    3.8367346939

    4.0204081633

    3.4680851064

    Please, indicate your unions collective bargaining objectives with (a) company(ies) regarding contract and agency labour work. 1= not an objective, to 5= very high priority

    Please, indicate your unions collective bargaining objectives with (a) company(ies) regarding contract and agency labour work. 1= not an objective, to 5= very high priority

    3.52

    4.0961538462

    4.2307692308

    3.8846153846

    Has your union been able recently to agree, through a collective bargaining agreement with (a) company(y)(ies), on CAL-related issues?

    3.52

    4.0961538462

    4.2307692308

    3.8846153846

    Please indicate your unions main legislative objectives regarding contract and agency labour work. 1= not an objective, to 5= very high priority.

    1.8653846154

    2

    4.1666666667

    2.8

    Which obstacles, if any, exist to union organising of contract and agency labour workers in your country? 1= not an obstacle, to 5= severe obstacle

    24

    27

    Has your union been able recently to agree, through a collective bargaining agreement with (a) company(y)(ies), on CAL-related issues?

    20

    31

    Has your union been able to conclude a collective bargaining agreement with the same conditions for regular workers as for contract workers?

    12

    39

    Has your union been able recently to agree, through a collective bargaining agreement at sectoral and/or national level, on CAL-related issues?

    12

    22

    23

    Have there been any significant legislative changes (positive or negative) in the last 5 years (changes in the law that made it easier - or more difficult - to protect CAL workers, or to organise them)?

    21

    27

    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?

    39

    6

    Are CAL workers, in your sector(s) in your country, mainly being organised inside existing trade union structures, or through separate trade unions, which deal (almost) exclusively with CAL workers?

    6

    5

    11

    Where CAL workers are organised by separate unions, would you qualify the relationship between the traditional unions and the CAL unions as good, bad or neutral?

    33

    21

    9

    Please provide an estimated share of the contract and agency labour work in your sector(s) in your country:

    3.1964285714

    3.1964285714

    2.7966101695

    3.0350877193

    2.4230769231

    2.32

    2.1956521739

    3.1914893617

    2.1578947368

    By which of the following practices do companies in your country and your sector discard / exclude workers from their permanent workforce? 1= not occurring, 5= used extensively.

    3.5714285714

    4.1111111111

    2.3902439024

    4.1403508772

    2.0980392157

    Where non-core jobs are outsourced, which job category is outsourced the most in your sector(s)? (1=not affected 5= very affected)

    3.2653061224

    3.4117647059

    2.2040816327

    3.2954545455

    3.625

    2.4339622642

    1.7 Which groups of workers in your country most often work in contract and agency labour jobs? 1 = not affected, to 5 =very often in precarious jobs.

    3.3389830508

    3.6551724138

    3.3392857143

    3.375

    3.2456140351

    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.

    100=100%YesNoDo not knowNo AnswerLess than 20%20% to 50%More then 50%No answer12345No answerOther

    1.1 Has the share of contract and agency labour (CAL) in your sector(s) in your country increased over the last five years?58834

    1.2 Please provide an estimated share of the contract and agency labour work in your sector(s) in your country:3321937

    1.3 By which of the following practices do companies in your country and your sector discard / exclude workers from their permanent workforce? 1= not occurring, 5= used extensively.Result survey - alle antwoorden.

    1.4 Which type of job is being outsourced most in your sector(s) in your country?13 Non Core Jobs / 46 Core jobs / 41 No Answer

    Non core jobsCore jobs

    1346

    1.5 Can you provide us with an estimate of how many core jobs vs. how many non-core jobs [% core jobs]99%x1 95%x1 80%x10 75%x2 70%x4 60%x5 40%x6 35%x2 30% x 6 20% X 6 12% x 1 10% x 5 5% x1 no answers: 50

    1.5 Can you provide us with an estimate of how many core jobs vs. how many non-core jobs [% non-core jobs]100%x1 95%x1 90%x4 80%x5 70%x4 65%x1 60%x3 50%x1 40%x3 30% x 6 25%x1 20%x18 15% x 2 10% x 1 5% x1 1%x1 no answers: 47

    1.6 Where non-core jobs are outsourced, which job category is outsourced the most in your sector(s)? (1=not affected 5= very affected)Result survey - alle antwoorden.

    1.7 Which groups of workers in your country most often work in contract and agency labour jobs? Please make a choice for each group: from 1 = not affected, to 5 =very often in precarious jobs. [Women workers]461914750

    1.7 Which groups of workers in your country most often work in contract and agency labour jobs? Please make a choice for each group: from 1 = not affected, to 5 =very often in precarious jobs. [Young workers]14610111049

    1.7 Which groups of workers in your country most often work in contract and agency labour jobs? Please make a choice for each group: from 1 = not affected, to 5 =very often in precarious jobs. [Older workers]151883452

    1.7 Which groups of workers in your country most often work in contract and agency labour jobs? Please make a choice for each group: from 1 = not affected, to 5 =very often in precarious jobs. [Migrant workers]1128101455

    1.7 Which groups of workers in your country most often work in contract and agency labour jobs? Please make a choice for each group: from 1 = not affected, to 5 =very often in precarious jobs. [Workers with limited or no skills]699112045

    1.7 Which groups of workers in your country most often work in contract and agency labour jobs? Please make a choice for each group: from 1 = not affected, to 5 =very often in precarious jobs. [Workers with high or specialized skills]1414138546

    1.8 Are wages of contract and agency labour workers in your country much less than for permanent employees in similar jobs?471340

    1.9 If the answer to 1.8 was yes, please indicate the estimated average wages paid to contract and agency labour workers in your country as a percentage of that received by permanent employees:Less than 50%50% to less than 75%75% tup to 100%57

    1.917215

    1.12 Do workers in your country generally feel less secure as a result of changing employment relations?5064

    2.1 Does your union have contract and agency labour workers as members?322741

    2.2 If the answer to 2.1 was yes, what percentage of your unions members are contract and agency labour workers?No general respons possible: 71 no answer, other answers are: 1%: 3, 2%: 3, 5%: 7, 7%: 1, 10%: 4, 20%: 5, 25%: 1, 30%:1, 50%: 1, 80%:1, No percentage but number: 263:1, 600:1

    2.3 Is organising contract and agency labour workers a priority for your union? Yes = 1 No = 23622

    2.4 Has your union ever been involved in negotiations during a contracting out process?3822

    2.5 Does your union find it easier, or more difficult, to organise CAL workers in your country, compared to 5 years ago?EasierEqualMore difficultDo not know

    11163142

    2.6 Does your union provide information or education on contract and agency issues to union members?4319

    2.7 Has your union revised its rules recently to facilitate CAL workers membership?164143

    3.1 Please, indicate your unions collective bargaining objectives with (a) company(ies) regarding contract and agency labour work:

    Ensure non-discrimination213123349

    Guarantee equal pay for similar work20693449

    Ensure trade union rights20483452

    Convert precarious jobs to permanent326192050

    Reduce / limit allowable time periods4213151056

    Protect against dismissals314152750

    Train & upgrade skills3411112051

    Educate members on contract and agency work3611151352

    Provide legal counselling3311131852

    Ensure participation in all union activities409142350

    Include a provision in International Framework Agreements on principal employer responsibilities on precarious work631561654

    Other (please explain)xxxxxx

    3.2 Has your union been able recently to agree, through a collective bargaining agreement with (a) company(y)(ies), on CAL-related issues? One example could be the inclusion of a requirement to consult with the trade union before work is contracted out. O2427

    3.4 Has your union been able to conclude a collective bargaining agreement with the same conditions for regular workers as for contract workers?2031

    3.5 Has your union been able recently to agree, through a collective bargaining agreement at sectoral and/or national level, on CAL-related issues?1239

    4.1 Please indicate your unions main legislative objectives regarding contract and agency labour work.

    4.2 Have there been any significant legislative changes (positive or negative) in the last 5 years (changes in the law that made it easier - or more difficult - to protect CAL workers, or to organise them)?YesNoEqual

    122223

    4.4 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?Not good enoughNot enforced

    2127

    4.5 Have you ever made use of social inspection services to offset CAL abuses?2528

    4.6 If yes, was the experience positive?1310

    5.1 Which obstacles, if any, exist to union organising of contract and agency labour workers in your country? Encircle a number for each area: from 1= not an obstacle, to 5= severe obstacle..

    Opposition of existing union members32932648

    Union rules &/or structure259103350

    Contract and agency labour workers live in fear of dismissal (or of other ways of harassment)311163247

    Government legislation1741041451

    Other (explain)xxxxxx

    5.2 Are CAL workers, in your sector(s) in your country, mainly being organised inside existing trade union structures, or through separate trade unions, which deal (almost) exclusively with CAL workers?Inside existing unionsThrough separate unions

    396

    5.3 Where CAL workers are organised by separate unions, would you qualify the relationship between the traditional unions and the CAL unions as good, bad or neutral?GoodBadNeutral

    6511

    6.1 Has the ICEMs campaign been able to influence the work inside your union on CAL?191467

  • Does your union have contract and agency workers as members?

  • Is organising contract and agency workers a priority for your union?

  • Government legislation CAL workers live in fear of dismissal (or of other ways of harassment) Union rules &/or structure Opposition of existing union membersWhich obstacles, if any, exist to union organising of contract and agency labour workers in your country? 1= not an obstacle 5= severe obstacle

  • Almost nine out of ten respondents indicate that CAL workers are (where they are organised) mainly organised inside existing trade union structuresIMF survey: The actions identified as most important among union strategies regarding precarious workers include first and foremost recruiting these workers into existing unions.

  • Does your union provide information or education on contract and agency issues to union members?

  • Has your union revised its rules recently to facilitate CAL workers membership?

    Chart2

    16

    41

    Has your union revised its rules recently to facilitate CAL workers membership?

    Sheet1

    Sheet1

    581

    8

    Has the share of contract and agency labour (CAL) in your sector(s) in your country increased over the last five years

    Has the share of contract and agency labour (CAL) in your sector(s) in your country increased over the last five years

    Blad1

    131

    46

    Which type of job is being outsourced most in your sector(s) in your country?

    Which type of job is being outsourced most in your sector(s) in your country?

    47.5454545455

    43.4545454545

    9

    Can you provide us with an estimate of how many core jobs vs. how many non-core jobs

    Can you provide us with an estimate of how many core jobs vs. how many non-core jobs

    47

    13

    Are wages of contract and agency labour workers in your country much less than for permanent employees in similar jobs?

    Are wages of contract and agency labour workers in your country much less than for permanent employees in similar jobs?

    17

    21

    5

    If the answer to 1.8 was yes, please indicate the estimated average wages paid to contract and agency labour workers in your country as a percentage of that received by permanent employees:

    If the answer to 1.8 was yes, please indicate the estimated average wages paid to contract and agency labour workers in your country as a percentage of that received by permanent employees:

    3.3389830508

    3.6551724138

    3.3392857143

    3.375

    3.2456140351

    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.

    50

    6

    4

    Do workers in your country generally feel less secure as a result of changing employment relations?

    Do workers in your country generally feel less secure as a result of changing employment relations?

    32

    27

    Does your union have contract and agency labour workers as members?

    Does your union have contract and agency labour workers as members?

    36

    22

    Is organising contract and agency labour workers a priority for your union?

    Is organising contract and agency labour workers a priority for your union?

    38

    22

    Has your union ever been involved in negotiations during a contracting out process?

    Has your union ever been involved in negotiations during a contracting out process?

    11

    16

    31

    42

    Does your union find it easier, or more difficult, to organise CAL workers in your country, compared to 5 years ago?

    Does your union find it easier, or more difficult, to organise CAL workers in your country, compared to 5 years ago?

    43

    19

    Does your union provide information or education on contract and agency issues to union members?

    Does your union provide information or education on contract and agency issues to union members?

    4.4038461538

    4.431372549

    4.4583333333

    4.1

    3.5454545455

    4.3529411765

    3.86

    3.5918367347

    3.8367346939

    4.0204081633

    3.4680851064

    Please, indicate your unions collective bargaining objectives with (a) company(ies) regarding contract and agency labour work. 1= not an objective, to 5= very high priority

    Please, indicate your unions collective bargaining objectives with (a) company(ies) regarding contract and agency labour work. 1= not an objective, to 5= very high priority

    3.52

    4.0961538462

    4.2307692308

    3.8846153846

    Has your union been able recently to agree, through a collective bargaining agreement with (a) company(y)(ies), on CAL-related issues?

    3.52

    4.0961538462

    4.2307692308

    3.8846153846

    Please indicate your unions main legislative objectives regarding contract and agency labour work. 1= not an objective, to 5= very high priority.

    24

    27

    Has your union been able recently to agree, through a collective bargaining agreement with (a) company(y)(ies), on CAL-related issues?

    20

    31

    Has your union been able to conclude a collective bargaining agreement with the same conditions for regular workers as for contract workers?

    12

    39

    Has your union been able recently to agree, through a collective bargaining agreement at sectoral and/or national level, on CAL-related issues?

    12

    22

    23

    Have there been any significant legislative changes (positive or negative) in the last 5 years (changes in the law that made it easier - or more difficult - to protect CAL workers, or to organise them)?

    21

    27

    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?

    39

    6

    Are CAL workers, in your sector(s) in your country, mainly being organised inside existing trade union structures, or through separate trade unions, which deal (almost) exclusively with CAL workers?

    6

    5

    11

    Where CAL workers are organised by separate unions, would you qualify the relationship between the traditional unions and the CAL unions as good, bad or neutral?

    33

    21

    9

    Please provide an estimated share of the contract and agency labour work in your sector(s) in your country:

    3.1964285714

    3.1964285714

    2.7966101695

    3.0350877193

    2.4230769231

    2.32

    2.1956521739

    3.1914893617

    2.1578947368

    By which of the following practices do companies in your country and your sector discard / exclude workers from their permanent workforce? 1= not occurring, 5= used extensively.

    3.5714285714

    4.1111111111

    2.3902439024

    4.1403508772

    2.0980392157

    Where non-core jobs are outsourced, which job category is outsourced the most in your sector(s)? (1=not affected 5= very affected)

    3.2653061224

    3.4117647059

    2.2040816327

    3.2954545455

    3.625

    2.4339622642

    1.7 Which groups of workers in your country most often work in contract and agency labour jobs? 1 = not affected, to 5 =very often in precarious jobs.

    3.3389830508

    3.6551724138

    3.3392857143

    3.375

    3.2456140351

    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.

    25

    28

    Have you ever made use of social inspection services to offset CAL abuses?

    13

    10

    If yes, was the experience positive?

    1.8653846154

    2

    4.1666666667

    2.8

    Which obstacles, if any, exist to union organising of contract and agency labour workers in your country? 1= not an obstacle, to 5= severe obstacle

    2

    22

    10

    Where CAL workers are organised through separate trade unions, has there been any cooperation with your union, for example, through joint collective bargaining?

    19

    14

    Has the ICEMs campaign been able to influence the work inside your union on CAL?

    16

    41

    Has your union revised its rules recently to facilitate CAL workers membership?

    100=100%YesNoDo not knowNo AnswerLess than 20%20% to 50%More then 50%No answer12345No answerOther

    1.1 Has the share of contract and agency labour (CAL) in your sector(s) in your country increased over the last five years?58834

    1.2 Please provide an estimated share of the contract and agency labour work in your sector(s) in your country:3321937

    1.3 By which of the following practices do companies in your country and your sector discard / exclude workers from their permanent workforce? 1= not occurring, 5= used extensively.Result survey - alle antwoorden.

    1.4 Which type of job is being outsourced most in your sector(s) in your country?13 Non Core Jobs / 46 Core jobs / 41 No Answer

    Non core jobsCore jobs

    1346

    1.5 Can you provide us with an estimate of how many core jobs vs. how many non-core jobs [% core jobs]99%x1 95%x1 80%x10 75%x2 70%x4 60%x5 40%x6 35%x2 30% x 6 20% X 6 12% x 1 10% x 5 5% x1 no answers: 50

    1.5 Can you provide us with an estimate of how many core jobs vs. how many non-core jobs [% non-core jobs]100%x1 95%x1 90%x4 80%x5 70%x4 65%x1 60%x3 50%x1 40%x3 30% x 6 25%x1 20%x18 15% x 2 10% x 1 5% x1 1%x1 no answers: 47

    1.6 Where non-core jobs are outsourced, which job category is outsourced the most in your sector(s)? (1=not affected 5= very affected)Result survey - alle antwoorden.

    1.7 Which groups of workers in your country most often work in contract and agency labour jobs? Please make a choice for each group: from 1 = not affected, to 5 =very often in precarious jobs. [Women workers]461914750

    1.7 Which groups of workers in your country most often work in contract and agency labour jobs? Please make a choice for each group: from 1 = not affected, to 5 =very often in precarious jobs. [Young workers]14610111049

    1.7 Which groups of workers in your country most often work in contract and agency labour jobs? Please make a choice for each group: from 1 = not affected, to 5 =very often in precarious jobs. [Older workers]151883452

    1.7 Which groups of workers in your country most often work in contract and agency labour jobs? Please make a choice for each group: from 1 = not affected, to 5 =very often in precarious jobs. [Migrant workers]1128101455

    1.7 Which groups of workers in your country most often work in contract and agency labour jobs? Please make a choice for each group: from 1 = not affected, to 5 =very often in precarious jobs. [Workers with limited or no skills]699112045

    1.7 Which groups of workers in your country most often work in contract and agency labour jobs? Please make a choice for each group: from 1 = not affected, to 5 =very often in precarious jobs. [Workers with high or specialized skills]1414138546

    1.8 Are wages of contract and agency labour workers in your country much less than for permanent employees in similar jobs?471340

    1.9 If the answer to 1.8 was yes, please indicate the estimated average wages paid to contract and agency labour workers in your country as a percentage of that received by permanent employees:Less than 50%50% to less than 75%75% tup to 100%57

    1.917215

    1.10 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.Result survey - alle antwoorden.

    1.12 Do workers in your country generally feel less secure as a result of changing employment relations?5064

    2.1 Does your union have contract and agency labour workers as members?322741

    2.2 If the answer to 2.1 was yes, what percentage of your unions members are contract and agency labour workers?No general respons possible: 71 no answer, other answers are: 1%: 3, 2%: 3, 5%: 7, 7%: 1, 10%: 4, 20%: 5, 25%: 1, 30%:1, 50%: 1, 80%:1, No percentage but number: 263:1, 600:1

    2.3 Is organising contract and agency labour workers a priority for your union? Yes = 1 No = 23622

    2.4 Has your union ever been involved in negotiations during a contracting out process?3822

    2.5 Does your union find it easier, or more difficult, to organise CAL workers in your country, compared to 5 years ago?EasierEqualMore difficultDo not know

    11163142

    2.6 Does your union provide information or education on contract and agency issues to union members?4319

    2.7 Has your union revised its rules recently to facilitate CAL workers membership?164143

    3.1 Please, indicate your unions collective bargaining objectives with (a) company(ies) regarding contract and agency labour work:

    Ensure non-discrimination213123349

    Guarantee equal pay for similar work20693449

    Ensure trade union rights20483452

    Convert precarious jobs to permanent326192050

    Reduce / limit allowable time periods4213151056

    Protect against dismissals314152750

    Train & upgrade skills3411112051

    Educate members on contract and agency work3611151352

    Provide legal counselling3311131852

    Ensure participation in all union activities409142350

    Include a provision in International Framework Agreements on principal employer responsibilities on precarious work631561654

    Other (please explain)xxxxxx

    3.2 Has your union been able recently to agree, through a collective bargaining agreement with (a) company(y)(ies), on CAL-related issues? One example could be the inclusion of a requirement to consult with the trade union before work is contracted out. O2427

    3.4 Has your union been able to conclude a collective bargaining agreement with the same conditions for regular workers as for contract workers?2031

    3.5 Has your union been able recently to agree, through a collective bargaining agreement at sectoral and/or national level, on CAL-related issues?1239

    4.1 Please indicate your unions main legislative objectives regarding contract and agency labour work.

    4.2 Have there been any significant legislative changes (positive or negative) in the last 5 years (changes in the law that made it easier - or more difficult - to protect CAL workers, or to organise them)?YesNoEqual

    122223

    4.4 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?Not good enoughNot enforced

    2127

    4.5 Have you ever made use of social inspection services to offset CAL abuses?2528

    4.6 If yes, was the experience positive?1310

    5.1 Which obstacles, if any, exist to union organising of contract and agency labour workers in your country? Encircle a number for each area: from 1= not an obstacle, to 5= severe obstacle..

    Opposition of existing union members32932648

    Union rules &/or structure259103350

    Contract and agency labour workers live in fear of dismissal (or of other ways of harassment)311163247

    Government legislation1741041451

    Other (explain)xxxxxx

    5.2 Are CAL workers, in your sector(s) in your country, mainly being organised inside existing trade union structures, or through separate trade unions, which deal (almost) exclusively with CAL workers?Inside existing unionsThrough separate unions

    396

    5.3 Where CAL workers are organised by separate unions, would you qualify the relationship between the traditional unions and the CAL unions as good, bad or neutral?GoodBadNeutral

    6511

    5.4 Where CAL workers are organised through separate trade unions, has there been any cooperation with your union, for example, through joint collective bargaining?YesNoNot applicable

    22210

    6.1 Has the ICEMs campaign been able to influence the work inside your union on CAL?191467

  • Collective bargaining priorities regarding CAL 1= Low 5 = very high priority

    Ensure trade union rights4,5Guarantee equal pay for similar work4,4Ensure non-discrimination4,4Protect against dismissals4,4Convert precarious jobs to permanent4,1Ensure participation in all union activities4,0Provide legal counseling3,8Train & upgrade skills3,7Educate members on contract and agency work3,6Reduce / limit allowable time periods3,5Include a provision in International Framework Agreements on principal employer responsibilities on precarious work3,5

  • From the IMF 2008 survey

    The IMF survey findings indicate that collective bargaining objectives of trade union responses to precarious work exist in three groups.

    The top group of collective bargaining objectives includes converting precarious jobs to permanent, guaranteeing equal pay for similar work, and ensuring trade union rights.

    A second group of such objectives includes ensuring non-discrimination, protection against dismissals, and reducing/limiting allowable time periods.

    Finally, a third level objective for responding includes training and upgrading skills.

  • Reform laws to facilitate organising Ensure social security protectionsProtect against dismissalReduce/limit allowable time periodsThe main legislative objectives regarding CAL

  • 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?

  • Have you ever made use of labour inspection to offset CAL abuses?

  • If yes, was the experience positive?

  • The follow-up ICEM-IMF Questionnaire 2009/2010Asked 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%.

  • Here and there, some CEOs of companies still boast that they started at the bottom of the latter.

    Today, that is no longer possible.

    There is no longer a bottom of the ladder. Bottom-ladder jobs no longer tend to be jobs within the same company.

  • The ICEM CAL projectThe Global ICEM CAL project started in 2005.

    Funded from the beginning by organisations in Sweden, Norway and Germany. Later also from Finland and the Netherlands.

    Works with a number of European experts.

  • A wide variety of activities has been organised, reaching, with varying levels of details, all ICEM affiliates in all countries, regions and continents.

    The project is run at the headquarter level, where a global consultant/coordinator is working in close cooperation with the ICEMs project officer.

    Four regional coordinators are working in the field: Aranya Pakapath in Thailand for Asia, Rosane Sasse / Elias Pintado (each 50%) in Brazil for Latin America and Joseph Toe in Togo for Sub-Saharan Africa.

  • Three global conferences on CAL - a fourth one in November 2011.

    Year-round local, national and regional workshops, seminars and conferences.

    The issue is discussed at all major ICEM meetings, including regional and sectoral conferences.

    Regular meetings with other Global Unions to discuss joint action.

  • Campaign material: Research studies, country studies, leaflets, CAL newsletters, a video documentary, PowerPoint presentations, international surveys, a Short Negotiators Guide, a mini-CAL guide and a longer CAL Manual, most in various languages.

    A campaign site: cal.icem.org

    Almost 520 ICEM CAL related articles published, on CAL issues from all parts of the world.

    Lobby international organisations (ILO, OECD)

  • The ICEM campaignThree main lines of actionLegalCompany, collective bargaining and organisingTrade union

    The exchange of best practice examples is an important factor at all three levels

  • The Legal Angle

  • The legal angleMain priorities

    Changing the law, making it betterProtecting workers from abuseMaking sure that a formal relationship between workers exists and gets recognisedGood laws also recognise the right of all workers to freedom of association and collective bargaining, and force the employer to recognise the workers union

    Make sure laws are respected

    Make increased use of labour inspections

  • The legal angleA few examples of what ICEM affiliates have been campaigning on

    Favour permanent direct employment, limit the number of CAL workersCreate better rules to avoid arbitrary dismissals and CAL abuseGuarantee that a formal employment relationship will be established, before the work startsEqual pay for equal work, as of day 1Set other levels of benefits (besides salary) also at same levelGuarantee training and career developmentBetter social security protection

  • A few examples of what ICEM affiliates have been campaigning on

    List 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 (not in case of strikes or dangerous jobs, for example)Reduce the maximum allowed time periods for contract and agency labourMake sure CAL contracts can not endlessly be extended for years and years through loopholesProhibit employment agencies to charge fees to workersMake sure the trade union at the company receives all available information on contract and agency labour work at plant levelAllow core trade union rights, make organising easier

  • The legal angle - The crisisThere is a continued and very real risk of a new wave of CAL hiring as soon as the economy will be picking up again. The first statistics after 2008-2009 (i.e. before the double dip) already indicated this in the US.

    Companies argue that the crisis has shown that they have to work with easy to dismiss workers.

    This shift of the business risk onto the workforce - which would have extremely negative social consequences - needs to be resisted at all levels and trade unions will need to pay a great deal of attention to this.

    Where it is impossible to avoid precarious work, alternatives may need to be looked at. A short-term worker with a direct contract with the user-enterprise, for example, may be much better of than an agency worker.

  • The crisisAmong the policy measures put forward in a 2010 IMF study on employment (a chapter of the IMFs World Economic Outlook 2010):

    Replacing temporary work contracts, which offer flexibility to employers but insecurity and lack of training to workers, with open-ended (permanent) employment contracts that include gradually increased job security provisions over the course of a worker's tenure..

  • . Germany's unemployment rate dropped in 2009 even though its GDP declined by 7 %, while Spain's unemployment increased by 7.5 % although its GDP declined by less than Germany's (about 4%).

    The IMF study concludes that a large part of that difference can be explained by the extensive application of Kurzarbeit, combined with relatively strict employment protection legislation in Germany, versus a proliferation of temporary work contracts offering no job or income security whatsoever for many Spanish workers.

  • Throughout the years, the ICEM found a lot of examples of countries where relatively good laws exist, or where recent changes improved the legal protection.

    Sadly, in all too many countries, the opposite is true, and/or existing good laws are often not adhered to.

  • The legal angle - AsiaIn many countries, such as Thailand, Bangladesh or India, it is often illegal for CAL workers to join the union that represents the permanent workers. Employees need to work for the same employer or in the same category of work.

    In Malaysia , CAL workers often need to be recognised or approved by employers for collective bargaining purposes.

    On the other hand, in several Asian countries, such as Indonesia or India, the law says that outsourcing is not possible for core jobs. The problem there lies in the implementation.

    In Malaysia, amendments to the Employment Act to legalise labour suppliers were withdrawn after pressure that came as a result of the ICEM CAL conference there in 2010. Unfortunately, the law (on legalising contractors for labour) came back in 2011, to be heavily discussed.

  • A particular problem (not only in Asia) is the Korean Catch 22 situation (as clearly demonstrated in the 2008 IMF Korea ILO complaint) where the principal employer/subcontracting company refuses to negotiate with subcontracted workers, claiming that it has no employment relationship with them, while the subcontractors also refuse to negotiate, claiming that they do not control the terms and conditions of employment in the plant.

    (Industrial action against a "third party", i.e. the principal employer/subcontracting company, is treated as an illegal act in Korea).

  • The legal angle - Asia/PacificIn Australia, unions have been demanding a reform of the Australian Labour law, so as to allow bargaining over the control of contract work and contracting out of work. Currently, bargaining over these issues is illegal.

    In New Zealand, the labour law makes it mandatory to include a provision in collective bargaining agreements on contracting out. So, all agreements need to contain provisions, varying from consultation rights on the matter to prohibition.

  • The legal angle Latin AmericaA 2006 law change in Chile

    A clear employment relationship needs to be established.

    User-enterprise and agency are co-responsible.

    CAL only in certain cases (holiday replacement, new projects, ).

    User-enterprise is accountable if the agency doesnt pay.

  • Peru

    Adoption of ILO Convention 81 on labour inspection

    Under the Peru CAL law (2008), companies have to place all individual subcontracted workers on their own payroll (allowing only tercerizacion under certain circumstances - no longer allowing it as a simple provision of workers). The law was immediately attacked by the business community.

    An end to the practice of creating cover-enterprises for the purpose of recruiting workers for just one particular company, purely to avoid paying workers benefits.

    Unfortunately, the situation in practice is very different to the theory, with, for example, decrees following the law that flawed the original concept, including by limiting the areas where the user-enterprise can be held co-responsible.

  • Peru Labour Inspection

    Through a series of inspection visits in 2009, labour inspectors in Piura, Peru found that Skanska Peru completely failed to comply with the requirements of being a subcontractor.

    Petrobras, as the user-enterprise, not only decided on the total number, the working hours and the salaries of the Skanska workers employed through the service contract, Petrobras also agreed on collective bargaining agreements and was involved in the evaluation and sanctioning of contract staff. The material used (including even the IT needed to provide the Skanska services) was also that of Petrobras. Skanska was furthermore found to be working for only one client in Piura, i.e. Petrobras.

    As they only found a straightforward provision of personnel, the inspectors ruled that the 380 Skanska workers in Piura, Talara region, needed to be given a direct and immediate employment relationship with the user-enterprise, i.e. Petrobras.

  • Ecuador

    A first new law adopted in 2006

    Similar to several EU laws: agencies need to be independent (no mere intermediaries) - agency work only in certain cases (temporarily replace another worker, events,) - 2 contracts needed - training obligatory - not to replace management or to be used during strikes

    In 2008, a new stronger law, as the first one didnt have enough (no) results.

    No agency work, no hourly work, except in certain job categories (security, maintenance, food, cleaning later amended to also include strategic sectors, such as hydrocarbon, electricity, mining, airports,)Outsourcing to a sub-contractor only when the sub-contractor has all the needed facilities alien to the core (e.g. accounting, audits, publicity, etc) Former agency workers become direct employees (with 1 year job stability)No fee to be paid by agency workers Ministerial list of eligible companies for complementary activitiesRules out fake-self-employmentFor security, catering, cleaning and related jobs, agencies can only employ workers in up to 3 user-companies per year.

  • Ecuador - Results of the new law

    Very different results in the mining, electricity and oil and gas sector.

    PositiveOver 3,600 outsourcing companies have closed.About 200,000 public and private workers changed from outsourced to permanent jobs (although in many cases, only for one year).Thousands of workers could join the social security system.

    NegativeWorkers did not get back lost rights (no seniority - so no decent pension).Rehired worker started at a lower salary than others (since they earned less as CAL workers).Companies found new ways of outsourcing.

    Source: ICEM-FES research document 2010

  • Brazil

    A law proposal has been introduced by CUT Brazil in 2009, seeking to

    Reduce CAL, including by making sure that core jobs can not be outsourced.

    Limiting the tercerizacin of jobs to certain job categories, including cleaning or catering.

    Give information rights to unions on CAL, making sure unions know about coming changes months in advance.

    Guarantee equal rights for CAL workers (salary, working hours, health benefits,).

    Representation of CAL workers through the industrial union.

    Joint responsibility of user-enterprise and agency/subcontractor.

  • Colombia - Arbitration

    A protocol agreement, signed by ICEM affiliate USO, the interior minister and Canadian oil company Pacific Rubiales in mid 2011, calls for a permanent arbitration board to be set up in Bogot to address the issues of irregular workers labouring in the oilfields.

    The issues include regularisation of employment, better pay and working conditions, and the right to join a union and bargaining collectively. (Source: ICEM Inbrief)

  • The legal angle North America

    Since April 2009, Canadian Ontario legislation (Bill 139) prohibits agencies to charge fees for CVs or interviews, or temporary to permanent fees.

    Temporary workers also need to be paid for public holidays and they have the same rights as regular workers to notice of termination and severance pay (only for workers employed continuously by an agency).

    Before, there was a provision for such temporary workers, saying they forfeited their standard labour rights.

  • The Canadian Labour Congress (CLC) has argued in 2010 that the federal labour code should be changed so that non-renewal of a contract after 1 years employment should be considered as grounds for unjust dismissal, if there is no just cause for non-renewal, and if work is being performed by a newly hired worker of another contractor.

  • Less conventional assistance in the struggle against CAL comes, among other in the United States, from tax inspectors.

    The US government announced, starting in February 2010, an audit of 6,000 random US employers in an effort to quantify how many employers misclassify workers (for example, using independent contractor instead of employee), thereby avoiding to pay taxes.

    One US organisation spoke of a 13% rise in the misclassification of workers in 2009 versus 2008.

  • The legal angle AfricaIn Namibia, a new law was adopted in 2007, aiming to outlaw the omnipresent system of labour hire (the jargon used in Namibia for employing workers through temporary work agencies).

    The law said that No person may, for reward, employ any person with a view to making that person available to a third party to perform work for the third party.

    This not only banned the use of agency labour, it also made sure that companies could not outsource work to subcontracting companies.

    The law was declared void in December 2009, leading to a decision by the Cabinet to amend the law and seek limitations and regulations, instead of total ban.

  • In South Africa, CAL legislation continues to be a hot issue (500,000 CAL workers in South Africa).

    ANC wants to regulate labour brokers.

    ICEM affiliate National Union of Mineworkers adopted a resolution in 2010: Labour brokering must be done away with as it is in conflict with the principles of Decent Work.

  • In Mozambique, the ICEM CAL conferences concentrate, among other, on contacts between trade unions and labour inspectors.

    Union leaders commonly had no clear idea of the work by the labour inspectors.

    The labour inspectors explained their work is often difficult (lack of resources) and asked trade unions to support them by denouncing CAL violations observed.

    This direct social dialogue resulted in a better cooperation between trade unions and the structures of the Ministry of Labour, including the labour inspectors.

  • In Sierra Leone, the government starting reviewing its national labour law after the ICEMs national conference there in 2009, specifically looking at CAL issues and problems.

    Also as a result of ICEM national conference in 2010, the government in Guinea agreed to review all mining contracts and do away with fake subcontracting companies.

    Workers in Mauritius are facing a different, new precarious problem after the countrys government, in February 2009, decided to change its labour law, turning virtually every worker into a contractual. The new law removes obligations to pay dismissal fees. At the same time, it also makes it possible to dismiss any worker at any time without good reason.

  • In Senegal, the President signed, in early 2010, a new decree to protect short-term workers, following pressure by ICEM affiliate SUTIDS and the CAL campaign.

    The decree says, among other, that

    The duration of a mission cannot exceed 2 years.

    The user-enterprise is responsible for working conditions, as well as for salary obligations should the agency fail.Workers in mission must enjoy the same working conditions as similar workers at the user enterprise.

    At the end of his or her contract, the short-term worker will be entitled to a severance pay equal t