the temporary agency work sector across europe · the temporary agency work sector across europe...
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The temporary agency work sectoracross Europe
Denis Pennel - Eurociett Managing Director
Eurociett in a nutshell
• Eurociett represents 36,000 companies (57,000 branches), employ 250,000 internal staff and more than 3 million agency workers on a daily average (FTEs) and around 10 million a yearly basis (headcounts)
• Is the only authoritative voice representing the interests of the reputable agency work businesses in Europe:
– Accounts for more than 90% of the total sales revenues of the industry in EuropeEurope
– Recognised by the European Institutions as well as by key European stakeholders (e.g. ETUC, UNI-Europa, BusinessEurope)
• Eurociett is the only association representing agency work:– At large: brings together 30 national federations– In its diversity: uniting 7 of the largest multinational staffing companies as
well as tens of thousands of SMEs
• Eurociett Members consist of private companies operating in the following HR activities: temporary agency work, recruitment, interim management, executive search, outplacement, training
Eurociett National Federation members
France
UK
REC
Ireland
NRF
Denmark
Dansk ErhvervFinland
HPL
Switzerland
SwissStaffing Netherlands
ABU
Belgium
FEDERGON
Norway
NHO Service
Sweden
ALMEGA
Slovakia
APAS
Turkey
OIBD
Slovenia
ZAZ
France
PRISMECzech Rep
APPS Germany
BZA
Greece
ENEPASE
Italy
ASSOLAVORO
Luxembourg
ULEDI
ABU
Austria
VZA
Poland
HR ForumPortugal
APESPE
Spain
AGETT &
AETT
Hungary
SZTMSZ
Macedonia
NFTWA
Estonia
EFPRA
Bulgaria
BG StaffingRomania
ARAMT
Latvia
LASA
Lithuania
LIIA
Corporate Members
Eurociett long term objectives
Shaping appropriate regulation for the TAW industry• Implementation of the Agency Work Directive• Discussion on the Posting of Workers Directive• Promoting quality standards
Striving for a better recognition of its contribution to a well-functioning labour marketfunctioning labour market• EU 2020 Strategy• Supporting economic recovery• Cooperation between public & private employment services
Developing constructive relationships with European trade unions to advance understanding of the TAW industry• Eurociett recognised as an official EU social partner for the TAW
sector since 2000
Where does the Temporary Agency Work industry stand now in terms of developmentnow in terms of development
in Europe?
UK 31%
Belgium 4%
Spain 3%
Switzerland 3%
Rest of Europe 10%
European TAW market split per country
% of total revenues Europe
France 19%Germany 13%
Netherlands 11%
Italy 6%
EU average of temporary contracts
12%
EU average of TAW
1.5%
FranceFinland
SwedenSlovenia
NetherlandsPortugal
SpainPoland
TAW penetration limited compared to all temporary contracts (2009)
282726252423222120191817161514131211109876543210
RomaniaSlovakia
UKNorwayBelgiumHungary
Czech RepublicDenmark
AustriaGreece
ItalySwitzerland
GermanyFrance
Percentage of working population29
AW penetration rate in 2009 (%)
Share of employees with temporary contracts in 2009 (%)
100%
80
60Public
Other
Tertiary
Importance of sectors differs between countries
40
20
0Agriculture
Manufacturing
Construction
Services
Administration
POFRAUCHDE1ITBEES1UKSENO
NL
Primary
Secondary
AW Penetration Rate 2009: 2.5%
0.8% 1% 3.7%
0.4%
1.6%
0.7% 1.6%
1.3%
1.4% 1.8%
0.5%
Share of sector (2009)
The diversity of agency workers’ profile should be recognised
Workers reentering
Workers First time
Students
(make money to fund studies and/or
vacations)
Workers reenteringthe labour
market
(work as temps after
period of unemployment
/maternity leave)
Workers looking for
a permanent
job
(Second best choice but see AW a stepping stone)
First time entrants
(enter the labour
market and gain first
work experience)
Flex Professionals
(not looking for a
permanent contract)
Senior workers
(remain employed to
get additional incomes)
Number of PrEAs in CEE
Number of temporary agency workers in CEE
Age split of agency workers in CEE
The implementation of the AWD: Towards an harmonisation of
regulation at EU level?
The need to recognise the specificity of the triangular work relationship
Employee:
agency worker
Agency Work is based on a triangular relationshipbetween an agency, a worker and a user company
(not related to fixed-term contracts, subcontracting or self employment)
15
Supervision of workEmployment
contract
Commercial contract
Employer :
PrEA
Client:
User company
where agency
worker is assigned
Most common conditions to the use of TAW in EU
Equal TreatmentMain restrictions
on TAW useMain obligations
for TWAs
TAW regulation
Restriction on use of
AW in particular sectors
(construction, public
services..)
Limitation of time spent in
same assignment
and renewals
Limited legally
accepted reason for using AW
Equal pay (same salary for agency
workers than permanent
workers holding the same job in
user company)
SectorsDuration/renewals
Reasons of use
Administrative & financial
Employment contract
Licensing/certification
systems + obligation to
report statistics to
gvts
Only limited types of
contracts that can be offered
to agency workers
The Agency Work DirectiveA balanced solution has been found
Lifting of unjustified restrictions(Article 4)
Common minimum standards for agency
workers(Article 5)
Principles of equal
Obligation to review restrictions once within three
Possibility to derogate from the
principle at national level (3
derogation clauses)
Principles of equal treatment apply
from day 1
Restrictions are only justified on limited grounds.
Unjustified restrictions must
be lifted
once within three years after entry into force of the
DirectivePreamble:
“TAW meets not only undertakings’ needs for flexibility but also the need of employees to reconcile their working
and private lives. It thus contributes to job creation and to
participation and integration in the labour
market”
AWD: What kind of restrictions are to be reviewed (Article 4)
Limited length of assignment Belgium, Czech Republic, Finland,France, Greece, Luxembourg, Poland,Portugal, Romania, Slovenia,Spain, Sweden
Sectoral bans Belgium (removal, public sector)France (public sector, work doctors) Germany (construction)Luxembourg (public sector)Netherlands (sea shipping)Spain (construction, public sector)
Limited reasons for use Belgium, Finland, France, Italy,Luxembourg, Netherlands, Poland, Portugal
Limitation on TAW contract renewals
France, Italy, Luxembourg, Romania, Sweden
Waiting period France, Luxembourg, Hungary
Compulsory exclusivity of TAW services
Greece, Luxembourg, Portugal, Spain
Limitations on number of temporary agency workers
Austria, Italy, Sweden
AWD: How to apply the Equal Treatment principle (Article 5)
• Equal treatment covers “basic working and employment conditions” defined as:
– Pay (to be defined at national level)– The duration of working time, overtime, breaks, rest periods, night
work, holidays and public holidays
• Directive allows for three forms of derogations:– For open-ended contracts– For open-ended contracts– Through collective labour agreements– By agreement of social partners for countries that do not have a
system of universally applicable CLAs
• Eurociett is calling national social partners to discuss benefits of some derogation to the Equal Treatment principle for a limited period of time (e.g. to help long term unemployed to re-enter the labour market)
Article 5: Equal Pay/Treatment as currently in place in EU
Countries with EqualTreatment regulation
• Austria• Belgium• Czech Republic• Denmark• Finland• France
Countries with no EqualTreatment provision
• Ireland• UK (draft law establishes
a 12 week derogation)
Countries with no specific regulation on
Agency Work
• Bulgaria• Cyprus• Estonia• Lithuania• Latvia• Malta• France
• Germany• Greece• Hungary• Italy• Luxembourg• Netherlands• Poland• Portugal• Romania• Slovakia• Slovenia• Spain• Sweden
• Malta
Regulation: The timeline evolution of agency work acceptance
Illegalitygrey zone
Legal recognition
Social tolerance
Normative acceptance
Societal acceptance
Full recognition
• Hostility and rejection of
this new form
• Containment of an
unpopular
• AW accepted by trade unions,
• Useful tool for labor market
• AW as an acceptable
work
• AW as a desirable choice of
Social development
this new form of work
relationship
unpopular industry, as a last resort HR
provider
trade unions, if properly regulated
market policies
work alternative
choice of work
Noregulation
Coercitiveregulation
CLAs in addition to
existing law
Lifting restrictions
Social partners to
define regulation
Appropriate regulation
Regulatory development
To what extend TAW can help to improve functioning of the
labour markets in East & South labour markets in East & South East Europe?
TAW ensures job creation Almost two thirds of user organizations would not have created jobs if they had no access to AW
Alternatives to AW
54%
% of responses (total = 101)
80
100
No job creation
(62%)No
substitution
Conclusions
• 74% of companies do not consider
hiring permanent workers an
alternative to AW
Source: User organization survey, BCG analysis
Not do the work
12%
60
20
Other external flexibility solution
100%
40
Internal flexibility solution
26%
Hire permanent
workers
Total
8%
0
(62%) substitution(74%)
alternative to AW
• In 62% of the cases there would be no
job creation as companies chose
internal flexibility or not to do the work
TAW penetration (% of workforce)
5
4
3
United Kingdom
Netherlands
TAW contributes to the fight against undeclared workCountries with high AW have lower levels of illegal economic activity
R2 = 0.41
2
1
0
Illegal economy (% of GDP)1
252015105
U.S.A.Switzerland
Sweden
SpainPortugal
Norway
Japan
Italy
Ireland
Greece
Germany
France
Finland
Denmark
BelgiumAustria
1. Calculated using the currency demand approach and the MIMIC method; for more information see "The Influence of the economic crisis on the underground economy inGermany and the other OECD-countries in 2010: a (further) increase" by Dr. Friedrich Schneider
Note: 2008 figures used in order to remove impact of crisisSource: Prof. Dr. Friedrich Schneider, Department of Economics, Johannes Kepler University of Linz, 2010
TAW helped reduce unemployment & illegal economy in Italy
Illegal economy (% of GDP)Unemployment rate (%)
30
25
AW penetration rate (%)
1.2
1.0
0.8Legal recognition of AW in Italy
10
5
2009200820072006200420032002200120001999199819971996
0.6
0.4
0.2
0.0
2005
Illegal economyTAW penetration rateUnemployment rate
Unemployment rate started to decline right after introduction of agency work
Regulatory changesin favor of AW
of AW in Italy
Source: OECD, Ciett national reports, GiGroup
TAW facilitates transitions through out a lifetimecareer path
30
40
50
Working hours
Job 1Job 2
Job 3 Job
4
Job 5Profession 1(salaried)
Profession 3(self-employed)
training
Profession 2 (salaried)
0
10
20
18 19 20 23 27 29 33 38 43 46 49 52 57 59 63 70
Job 6
Age= Transition
Unemployment
What can be learned from social What can be learned from social dialogue in Western Europe?
Social dialogue:What are the achievements so far?
• National level– In countries where TAW is well established, existence of robust
national sector-level collective bargaining (e.g. BE, FR, IT, ES, NL, DE, AT, Nordic Countries)
– Lead to joint actions to improve working conditions and benefits of agency workers:
• e.g. pension funds, complimentary health insurance, training funds
• EU level (Eurociett/UNI Europa)• EU level (Eurociett/UNI Europa)– Formal EU sectoral social dialogue committee established in 2000
– Main achievements:• Joint-declarations on Agency Work Directive (2001 and 2008), Flexicurity
(2006) and Vocational Training (2009)• Promotion of national sectoral social dialogue
– Roundtables organised in Poland (2006), Hungary (2007), Bulgaria (2009) to bring together national sectoral social partners
• Research to improve factual knowledge of TAW:– Regulation of TAW in the EU 27 (2006 & 2009)– Joint project on vocational training provided to temps– Joint project on cross border activities within TAW at EU level
– Promotion of ILO Convention 181 on PrEAs
A sector committed to social dialogue
Countries/EUROPE
Cross-sectoral
AW sector AW company Usercompanies
Austria ���� ����
Belgium ���� ���� ���� ����
Denmark ���� ���� ����
Finland ���� ���� ����
France ���� ���� ����
Germany ���� ���� ����
Ireland ���� ����Ireland ���� ����
Italy ���� ����
Luxembourg ���� ����
Macedonia ����
Netherlands ���� ���� ����
Norway ����
Poland ����
Portugal ����
Spain ���� ����
Sweden ���� ���� ���� ����
Switzerland ���� ����
UK (����) ���� Source: Eurofound & Ciett
NB: in the UK, , cross-sectoral
level refers to a single agreement between CBI and TUC rather than
to collective bargaining as
such.
How social partners can shape regulation TAWThe “phase model” in the Dutch CLA
Phase A:Specific agency work
contract(s) for the duration of the assignment,
maximum duration of 78 weeks
Phase B:Fixed-term contract(s):
maximum of 8 contracts and maximum duration of contract(s) 2 years
Phase C: Indefinite contract
Labour contract
concluded between a
30
between a specific
agency worker and a specific
agency (= employer)
Equal pay is applied after 26 weeks in one assignment
No maximum length of assignment (since 1998 labour market reform)
Approximately 72% Approximately
28%
Bipartite bodies in Europe for TAW
Austria
Belgium
Training
Pensions
Social benefits
Health & Safety
ComplianceFrance
Italy
Luxembourg
Netherlands
Spain
Compliance
Social partners’ bipartite bodies in the Netherlands for the Agency Work industry
• Budget = € 2.6 million• Mission= Professionalise
vocational training and careerdevelopment for employees & improve mobility of agency workers
• Nbr agency workers concerned = 23,120 in 2010
Training(STOOF)
• Budget = € 5 million (0.2% from wages)
• Mission: Providing additional benefits to agency workers regarding access to housing, credit, childcare, holidays...
• Nbr agency workers concerned = 168,271 (active) and 466,039 (inactive) in 2010
Social Fund(SFU)
• Budget = €2,1 million• Mission = to stimulate
compliance with existing CLAs for TAW through enforcement as well as advice and educate on the application of the CLAs
CLA Police(SNCU)(STOOF) (SFU) (SNCU)
• Budget = €900,000• Mission= provide
complementary instruments and information to agency workers on health & safety
• Nbr of agency workers = 211,000
Health & Safety(STAF)
• Budget = €107 million• Mission= provide
complementary pension benefits to agency workers
• Nbr agency workers concerned = 660,000 (including 160,000 still working for an agency)
Pension(StiPP)
• Mission= Deliver quality certificates to TWAs and carry out compliance audits
• 2,400 agencies with certificate• 4,700 inspections carried out
in 2010 and 322 companies removed
Self-regulation(SNA)
Social partners’ bipartite bodies in Francefor the Agency Work industry
• Budget = €150 million• Mission= facilitate access to
training for agency workers • Nbr agency workers
concerned = 40,700 in 2010
Training(FAF-TT)
• Budget = €44.8 million in 2010• Mission: Providing additional benefits to
agency workers regarding access to housing, credit, childcare, car renting, complementary health insurance...
• Nbr agency workers = 129,000 in 2010
Social Fund(Fastt)
• Budget = €15.5 million• Mission= facilitate
professional inclusion of agency workers
• Nbr agency workers concerned = 40,600 in 2010
Inclusion (FPE-TT)(FAF-TT) (Fastt) (FPE-TT)
• Budget = €700,000• Mission = To
commission surveys in order to increase the understanding of the TAW industry
Research(OME)
• Mission = to inform about and to stimulate compliance with existing legislation and CLAs for TAW
Compliance (CPPNTT)
• Mission= To provide welfare and complementary pension schemes to agency workers
• Nbr of affiliated agency workers = 50,000 in 2009
Welfare & Pension(Reunica)
• Mission= To provide complementary instruments and information to agency workers on health & safety
Health & Safety (CPNSST)
Conclusions: What are our points of common interest?
1. TAW to be recognised as a sector on its own– Freedom of establishment and to operate for TWAs – Freedom to establish sectoral social dialogue at national and
international level and to negotiate conditions of use of TAW
2. TAW as a sector to be regulated appropriately– Any regulation on the PrEA industry should reach a balance between the
need to protect agency workers and the need to allow for the sound need to protect agency workers and the need to allow for the sound development of the industry
– Sectoral social partners best equipped to define right level of regulation
3. Dark side of the industry to be eliminated– To fight illegal/undeclared work and unethical agencies (= unfair
competition and social dumping)– Enforcement of existing regulation is key
4. Protecting and advancing the temporary agency workers through social dialogue
– Promotion of fair treatment for agency workers: promotion of decent work, no fees to be charged to jobseekers, no replacement of striking workers, respect of freedom of association…
Look at the big picture!
The well
The rogue and unscrupulous side of TAW
The well regulated
and reputable
side of TAW
