UĦM Voice of the Workers eMagazine issue 07

VOICE OF THE

WORKERS ISSUE 07 FEBRUARY 2014

EDITOR’S NOTE JOSEF VELLA

Precarious Work

Contents Do you see what I see?

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The need to focus

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Precarious work needs to stop 05 Employment and high quality jobs 06 Social Dialogue to tackle precarious work 07 Definition required 08 On the EU agenda 09

Welcome to issue number 7!

Precarious work has been on the agenda for quite a while now. Whilst all of us agree that precarious work sounds as a bad idea to all of us in good faith, we will have to agree that we have not yet agreed on what is precarious work and what constitutes it. This issue brings to the fore a number of important issues and ideas to deal with this VOICE OF THE

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practice in the main feature, and also presents ideas coming from different stakeholders.

On another note, this emagazine is intended to help you become aware of important issues very relevant to all of us. If you have any ideas on how we can do this better, we would appreciate yoiur sharing some ideas with us. Enjoy!

We do not even have an agreed, clear definition of what constitutes precarious work. And trying to address an issue without knowing what the issue is and what it represents is like a sniper being hired to hit a target without the sniper knowing who the target is.

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Do you see what I see?

Achieving success starts with proper focus. The issue of Precarious Work has been on the national agenda for some time. But we have not yet decided what Precarious Work is all about. The sooner we decide to do this the sonner we could start acting on it.

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The need to John works in the construction industry. It’s his bread and butter. He likes his job, but fears that one of these days, the worst might happen. John has been left without any safety equipment. One day, when he least expects it...

Peter is now thirty and is planning to start a family. He works together with a team of fifty workers. Last week, Peter and his team were summoned to their manager’s office and were presented with a self-employed contract.

Jane has always done her job well. But things seem to be going downhill as of late.

For the month of January, her pay packet did not even reach the minimum wage.

Three scenarios. Three different stories. Different issues are presented. What would say about the nature of the work of these three workers? Illegality, precarious work, abusive, or outright advantageous as might be the case with Peter, whose contract could be the best thing that happened to him in years. But what if his and his colleagues’ contracts were drafted to divest their employers from the responsibility to pay their employees’ national insurance contributions?

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There has been a lot of discussion about precarious work, especially during the last couple of years. The term sounds very ominous, and the issue needs to be addressed. But what issue are we talking about exactly? We do not even have an agreed, clear definition of what constitutes precarious work.

And trying to address an issue without knowing what the issue is and what it represents is like a sniper being hired to hit a target without the sniper knowing who the target is.

Loosely defining such a term has its consequences. Primarily, if the stakeholders need to act, they need to agree on what they are going to act on. This action would be akin to three armies joining forces to go to battle against an enemy they cannot agree upon.

The consequence of this is that no one can agree on a focused and viable solution to the issue.

The discussion on Precarious Work has gone from discussion of cases of immoral actions and precarious situations, to outright 3

illegal ones. This lack of focus has led the discussion to sweeping statements that may not be conducive to the agreement that is so vital to attacking this issue.

The UHM has proposed that rather than defining Precarious Work according to the consequences it has on the victim, we need to attempt to define it by its characteristics. It has listed a series of characteristics that may constitute precarious work. These include: • A form of abuse of standard protection and/or conditions of work • An abuse that occurs within the form (mostly) and/or substance of the contract of work • A planned, premeditated abuse, normally starting even before the employment itself • An abuse that has been continually going in for a period of time The abuse is collective, that is, it is not carried out on an individual,

which renders it illegal, but is carried out on groups of persons.

Once we have identified what Precarious Work really is, we need to agree upon and devise measures that will eradicate it.

This can be done both through adopting preventive measures, as well as through an efficient and effective means of assessment and enforcement. In terms of prevention, the stakeholders at MCESD need to continue working together to arrive at a stage where there is general agreement on a definition, and legislation enacted to sniff it out. There has to be a firm commitment from all the social partners that perpetrators of Precarious Work do not find the protection of any MCESD organization.

The issue may also be addressed in a positive way. Rather than just penalizing offenders, we can support providers of fair and just work practices by the introduction of a quality employer mark. This will be advantageous

to employers for tendering and obtaining government contracts, recruiting quality staff, as well as for public relations and maintenance of vital organizational goodwill.

An important way to address this issue is for workers to organize into social co-operatives. By their very nature, Co-operatives are democratically-run, worker-owned businesses that place their emphasis on the person rather than on the investment. Social co-operatives address the issues of Precarious Work as it is the workers themselves who own their place of work, and are consequently responsible for their own conditions of work.

One other formidable attack on the Precarious Work is education and training. This will also contribute to address the demand side of the issue. The principles laid down in Jobs+ form the basis of a lasting and effective attack on precarious work by removing the causes that make precarious work possible.

It’s a way forward.

Rather than just penalizing offenders, we can support providers of fair and just work practices by the introduction of a quality employer mark

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Precarious work needs to stop THE GENERAL WORKERS’ UNION HAS BEEN TALKING ABOUT PRECARIOUS WORK FOR MORE THAN EIGHT YEARS. DURING THAT TIME, THE SUBJECT OF OUR DISCUSSION INCLUDED FOREIGN WORKERS Today, this abuse also affects thousands of Maltese workers, not just in sectors that have become notorious for this abuse, such as security companies and workers in the health sector, but also in other sectors, such as clerical jobs, and even the teaching profession. The Teachers’ Union itself went public with the story about a private school that employed teachers with precarious work. We have also come across shop employees who were being offered products sold in the shop in lieu as part of their wages.

Precarious work includes persons with definite contracts, some of them monthly, as well as others whose conditions do not meet the legal minimum standards, such as people being paid less than the minimum wage.

The General Workers Union believes that there has to be more active involvement by the Department of Labour by means of surprise visits, and

communicate directly with affected workers.

Precarious work took a turn for the worse through public contracts, and the GWU has repeatedly lobbied government to revamp the contracts system and include a declaration on the conditions of work of employees as a condition for qualification.

This system is now in place.

A negative aspect of precarious work is that it runs contrary to solidarity. This happens because very few workers performing precarious work are trade union members. This makes it very hard for them to improve their conditions of work. One of the causes of this is fear that by being union members, they fear losing the little they have.

in countries such as Italy. We are working with our counterparts to share knowledge and discuss ways of collaboration.

We are very optimistic that this abuse can be stopped. There are different measures being proposed to tackle this issue.

Perhaps the most significant one is a reform of the government contracts system, as this is a major problem area. Government is being proactive to our proposals, and concrete measures have been introduced in the tendering process. With the right action and attitude, precarious work can be eradicated from Malta.

Things started taking a turn for the better once the union, through its media, embarked on a name and shame campaign.

This brought about a measure of success as when these employers contacted the union, the GWU insisted that employers protect their employees’ rights for union membership, and thereafter negotiated a collective agreement for the workers.

Unfortunately, precarious work is not just a local issue, so much so that it is rearing its ugly head

GENERAL WORKERS’ UNION Workers’ Memorial Building, South Street, Valletta - VLT 11 Tel: +356 2567 9200 www.gwu.org.mt VOICE OF THE

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Employment and high quality jobs The economic crisis has put a severe strain on the economy and the labour market leading to dramatic job losses and changes in the working conditions and job security. Workers are more than ever before being subject to ‘nonstandard’ forms of employment - usually accepted as the only chance of getting a job - such as: temporary employment, involuntary part-time work, temporary agency employment, working without contracts. In addition, workers are more prone to job insecurity arising from irregular working time patterns, lower pay, less access to training and career advancement opportunities, no trade union representation, higher risks of accidents and limited levels of autonomy at work.

It is important to note that in the EU, the responsibility for policy in the field of employment is shared between the EU and its Member States. Through the ‘open method of coordination’, the European employment policy provides a framework for EU countries to share information, discuss and coordinate their employment policies. Based on the ‘Europe 2020 strategy for smart, sustainable and inclusive growth’, the European employment strategy seeks not only to foster growth in the number of jobs throughout the EU but also to ensure that jobs are of good quality; high employment rates and high quality jobs are not mutually exclusive; the latter is a precondition of the former.

In its Draft Joint Employment Report accompanying the Annual Growth Survey 2014 – which sets out the EU’s priorities for the coming year t boost growth and job creation and opens the yearly European Semester for the coordination of economic policies in the Member States – the European Commission highlights the need for addressing undeclared work: “undeclared work and other atypical forms of employment such as bogus self-employment... pave the way for social dumping inhibiting the creation of regular employment with full social protection”. (COM (2013) 801, section 1).

The creation of successful partnerships between the EU, national authorities and the social partners is essential to ensure not only the creation of more and better jobs but also the implementation of the EU’s employment strategy and legislation.

MEUSAC 280 Republic Street, Valletta VLT 1112 Tel: +356 2200 3315 • Fax: +356 2200 3329 • Email: info.meusac@gov.mt www.meusac.gov.mt VOICE OF THE

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Social Dialogue to tackle precarious work

Gainful employment is a vital instrument in society for both economic and social reasons.

Apart from contributing to a person’s identity, employment has positive implications on the national and international economic spheres. The ILO1 has stated that labour is not a commodity and one needs to keep this in mind.

Precarious employment has consequences on workers who lose employment security. Individuals working in precarious work loose influence collectively and individually over their working conditions.

Precarious employment is multifaceted and complex and needs specific actions to be overcome.

Good quality jobs and decent incomes are a guarantee for sustainable economic and social development in the future. Furthermore, they are instrumental in achieving sustainable development goals including health, gender equality and poverty eradication.

Sustainable jobs are needed to enable workers to earn a good living in a safe and respected environment. This will lead to higher productivity and higher value added contributions by workers. Sustainable jobs will help Malta and the EU generate stable economic growth.

Social dialogue is an important instrument that is being used to tackle the precarious employment issue. In fact, in 2013 the MCESD put precarious employment at the forefront of its agenda. Various Council Meetings were held on the matter. The Department of Industrial and Employment Relations made a presentation at Council level after which Social Partners were invited to present their proposals.

The Forum Unions Maltin, the General Workers’ Union, the Malta Employers’ Association and the Union Ħaddiema

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Magħqudin all made their presentations to the MCESD Council.

During the discussions held it was clear that workers in certain sectors are more at risk of falling victims of precarious employment. Social Partners agreed that illegal employment practices needed to be addressed and the most effective means to do this would be by enforcing regulations.

The contribution of all stakeholders together with Government will help overcome the problem. Stakeholders involved need to ensure that adequate surveillance is carried out and enforcement of employment legislation is put into practice. Discussions between stakeholders and government are needed to ensure a healthy work environment for workers which at the same time sustains the principle of fair competition.

ILO Philadelphia Declaration MCESD 280/3, Republic Street, Valletta, VLT1112 Tel: (+356) 2200 3300 www.mcesd.org.mt

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Definition required Although the term ‘precarious work’ has been used frequently by trade unionists and politicians over the past few years, to date there is no accepted definition of the term.

The position adopted by MEA is that it is not prepared to engage in discussions about something which is not defined.

The Association has, however, made clear its position about atypical, illegal and unethical employment practices. It has clearly stated that atypical employment (part-time, definite period, temping work etc.) is a necessary aspect of the current

labour market environment, as for example, many employees are choosing to work on a parttime or a reduced hour basis.

This is one reason that explains the sharp increase in female participation in Malta over the past few years.

With respect to illegal unemployment practices, the Association has consistently supported law enforcement to curtail abuses of employment regulations by employers as well as benefit fraud by employees.

Therefore we fully respect the idea that employees should

get their fair dues in an employment relationship. The issue of unethical employment practices is more delicate, but we have also taken measures and made recommendations to tackle it. For example, we have suggested to government to set a minimum hourly rate for public procurement contracts to enable contractors to pay fair wages. If implemented, this will certainly curtail abuses in sectors such as cleaning and security, where many allegations of unethical or illegal employment practices are made.

35/1, South Street, Valletta VLT 1100 Malta Tel: 21237585, 21222992 Fax: 21230227 www.maltaemployers.com VOICE OF THE

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On the EU agenda Labour issues are important aspects on the European Union agenda. Through consultation, debates, and calls for papers, the discussion is open wide and interesting. (CIA – Brussels office) The European Commission is launching a web-based survey on the performance of the PROGRESS Programme in 2013.

The survey is targeted to all individuals, organisations and institutions that follow the policy debate on employment and social affairs, as well as those involved in national and EU policy formulation or implementation.

The results of the survey will feed into the preparation of the annual performance monitoring report for the last year of implementation of PROGRESS (2007-2013), the EU employment and social solidarity programme established to:

IREC 2014 - Call For Papers - The future of the European Social Model – New perspectives for industrial relations, social and employment policy in Europe?

The 2014 Industrial Relations in Europe Conference (IREC) will take place at Eurofound in Dublin from 10 to 12 September 2014. The conference is organised jointly with the Research Network on Work, Employment and Industrial Relations (RN nr. 17) of the European Sociological Association (ESA).

Papers may be theoretical and/or empirical (using qualitative or quantitative methods). As in previous IREC conferences European comparative research papers are especially welcome. Please refer in your abstracts to one of the 5 themes below:

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support the implementation of EU objectives in the fields of employment, social affairs and equality

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contribute to the Europe 2020 Strategy.

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You are invited to participate in the survey by filling out the questionnaire, which should take approximately 15 minutes. The responses to this survey are strictly confidential and will not be divulged to anyone. The deadline to complete the questionnaire is 31 January 2014. You can participate by clicking on the following link: tinyurl.com/pfr2a9k

Discuss YOUR ideas with Europe’s leaders Open debates • Should the EU spend more to create jobs for young people? tinyurl.com/q6qdpko • Choose your Future! tinyurl.com/o5snn4y

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Theme 1: European Social Dialogue: is the role of European social partners changing? Are we moving to a new social dimension?

Theme 2: Industrial relations around Europe: What future in Europe for collective voice and response to the employment crisis?

Theme 3: Company level social dialogue - New developments Theme 4: Employment and social divergence in Europe – What implications for welfare state, labour market and employment policy in Europe?

Theme 5: Methodology - Which theory, theories and methods do we need and want?

In order to explore the overall theme of the conference as well as other current debates in the field, the call for papers intends to invite all researchers to submit their work in the diverse fields of work, employment and industrial relations for presentation.

Calendar deadlines • • • •

31 March 2014 – Submission of abstracts and proposals 25 April 2014 – Acceptance of paper-proposals 25 May 2014 – Early bird registration 1 July 2014 – Submission of papers

For more information, please contact Peter Kerckhofs, Research Officer Eurofound (peter.kerckhofs@eurofound.europa.eu).

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