low paid work in ireland tom turner and michelle o’sullivan ictu seminar on low pay and decent...
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Low Paid Work in Ireland
Tom Turner and Michelle O’Sullivan
ICTU Seminaron Low Pay and Decent Work
January 2013
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Low pay & decent work
• Links between low pay & precarious work– Income– Quality– Security– Control
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Objectives
1. Provide a picture of unionisation, collective agreements & pay
2. Structure of earnings of low paid work– overtime earnings, shift allowances and
bonuses
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Data
• 2007 & 2008 National Employment Surveys (NES)
• Matched employer-employee survey
• Grossed up to the employed labour force
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Unionisation & CAs
Covered by CA Not covered by CA
Union Members 84% 16%
Non-members 27% 73%
Total 47% 53%
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Private Sector Unionisation
Covered by CA Not covered by CA
Union members 68% 32 %
Non-members 19 % 81 %
Total 30 % 70 %
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Earnings distribution
All employees Private sector
Low paid 20% 26%
Up to median earnings
30% 34%
Above median earnings
50% 40%
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Male/Female
Female Male
Low pay 16% 15%
Up to median 32% 27%
Above median 55% 40%
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Low Pay & Union Membership
Membership % Low Paid
All employees
% Low Paid
Private sector
Union members 8.8 16.9
Non-members 25.8 28.6
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Pensions
Union Non-union
(%)
Health Insurance
Union Non-union
(%)
Low paid 56 31 22 13
Median 76 55 31 26
Above median
88 75 35 44
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Union Members
No CA
Non-members
With CA
Low paid 27% 22%
Company size Smaller Larger
Sector Industry; construction/
transport; health/education
Industry; construction/
transport;
finance
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Low pay & Nationality
Irish Asia/Africa East European
EU Developed
All employees
18% 25% 45% 21%
Private sector
24% 31% 45% 25%
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Low Pay & Nationality (private sector)
Irish Asia/Africa East European
EU Developed
Union members
16% 23% 36% 13%
Non-members
27% 33% 47% 26%
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Number of JLC Workers
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
1926 1953 1962 1976 1984 1989 1998 2007
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JLC Workers
1. Who are workers paid at JLC levels?
2. What is the structure of their earnings?– Economic crisis & High Court case– Arguments that JLC pay rates were “costing jobs”
– Particular emphasis on overtime pay
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Earnings range
• Median hourly earnings - €16.29
• Low pay work - €10.86 or less
• JLC range - €8.23 to €9.68
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Low pay earnings
Low pay in
Private sector
% of private sector
Less than €8.23 10% 2.5%
JLC: €8.23-€9.68 52% 13%
€9.69 – €10.86 38% 9.5%
100% 25%
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Who are paid at JLC levels?
Female Manual/routine work
Less educated Non-union
Part-time Low service
Under 25 years Hotels/restaurants;
Wholesale/retail
Non-Irish
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Hourly earnings Mean
Hours worked per week JLC range 29.87
Above JLC range 35.86
No. of overtime hours per week
JLC range 0.5
Above JLC range 1.1
Overtime hours as % of hours worked weekly
JLC range 1.6%
Above JLC range 2.6%
Weekly overtime earnings JLC range €6.20
Above JLC range €25.70
Shift allowance per week JLC range €0.70
Above JLC range €10.50
Bonus earned per week JLC range €0.90
Above JLC range €21.3
Work a shift? JLC range 31.4%
Above JLC range 24.2%
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Selected characteristics of workers covered by JLC rates
Hours worked per
week
No. of overtime hours per
week
Overtime earnings per
week
Shift allowance per week
Bonus earned per
week
Women 28 0.5 €5.0 €0.8 €1.0 Men 34 0.7 €8.4 €0.6 €0.7 Age Under 25 28 0.6 €6.1 €0.65 €1.0 25 to 35 34 0.7 €8.4 €0.82 €1.4 36 to 45 32 0.43 €5.4 €1.1 €0.54 Over 46 28 0.37 €4.2 €0.4 €0.28 Nationality Non-national 35 0.8 €10.1 €1.2 €1.7 National 28 0.4 €4.9 €0.5 €0.6 Status Part-time 20 0.4 €3.9 €0.5 €0.3 Full-time 37 0.7 €7.9 €0.9 €1.3 Union Non-member 29 0.5 €4.9 €0.7 €0.9 Member 33 1.1 €14.0 €0.8 €0.6 Sector Industry 36 0.7 €9.9 €0.7 €0.7 Wholesale/retail 29 0.8 €9.3 €0.2 €0.5 Hotels-restaurant 28 0.2 €2.7 €0.7 €0.1 Finance/admin 25 0.2 €2.6 €0.6 €0.6 Trans/others 32 0.5 €4.1 €1.8 €3.3
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Distribution of overtime hours, earnings and shift allowance
Above the JLC range
%
At the JLC range
%
Hotel/restaurant at the JLC range
Wholesale/ retail at the JLC range
Overtime hours weekly None 79 86 94 78 Up to 2 hours 6 5 3 8 2 to 5 hours 6 5 2 9 5 to 10 hours 6 3 0 4 Over 10 hours 3 1 1 1 Overtime earnings weekly None 79 86 94 78 Up to 10 euro 2 2 1 2 10 to 20 euro 2 2 1 4 20 to 30 euro 1 2 1 4 Over 30 euro 16 7 3 12 Shift allowance per week None 91 97 95 97 Up to 15 euro 1 2 3 2 15 to 30 euro 1 .7 1 0 30 to 60 euro 1 .5 1 0 Over 60 euro 6 .3 0 0 Bonus earned per week None 92 97 98 97 Up to 20 euro 1 1.5 2 2 20 to 40 euro 1 .8 0 1 Over 40 euro 5 .7 0 0
N 1118692 168092 168092 168092
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Workers on shift work and
receiving an allowance
%
Workers on shift work and not receiving an allowance
%
N
Above the JLC range
31
69
100%
(270166)
At the JLC range
6
94
100%
(52715) Total N
27
(87230)
73
(235651)
100
(322881)
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Results summary• Low levels of Sunday premiums, shift allowance
and over-time payments• Workers who work no overtime and receive no
shift allowance or bonuses more likely to be covered by JLC rates
• Relatively high proportion of low paid workers; lower benefits
• Collective agreement coverage important
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Commentary• Similarities internationally regarding low paid
sectors & employees• But differences in shares of low paid work• Influenced by:
– Collective bargaining coverage– Union strategies on low pay– The MW increase formula– Models of ‘avoiding’ or ‘accepting’ low paid work
(Bosch)