Low paid work and resilient geographies of a migrant division of labour in London

Cathy McIlwaine and Kavita DattaSchool of Geography

Migration and Low Pay in London London School of Economics and

Political Science9 June 2014

Structure

• ‘The migrant division of labour’: From boom to bust• Transnational geographies of the migrant division

of labour during recession in London • Surviving the migrant division of labour during

recession in London• Conclusions: Sustainable London, sustainable

migration?

ResearchThree research projects undertaken between 2004 and 2011

• Global Cities at Work (Wills, Datta, May and McIlwaine, 2004-2010) (ESRC)– 424 questionnaires; 103 in-depth interviews with low-paid migrant workers from East and

Central Europe, Africa and Latin America working in care, hotels and catering, cleaning (office and the Underground), food manufacturing, construction + survey with 105 cleaners with single employer in Canary Wharf

• Migrants and their Money (Datta, 2010-2012) (Friends Provident Foundation)– 319 questionnaires,89 in-depth interviews and 3 focus groups with Brazilian, Bulgarian,

Turkish, Somali and Polish migrants (this presentation draws upon research with Bulgarian migrants = 54 questionnaires; 24 in-depth interviews and 1 focus group (9 participants, 6 men and 3 women)

• No Longer Invisible (McIlwaine, 2010-2011) (Trust for London) - 1041 questionnaires; 50 in-depth interviews, 4 focus groups with Latin American migrants and 15 interviews with community representatives from the Latin American community

‘The migrant division of labour’: From boom to bust

• Increased reliance of global cities on migrant labour

• Economic restructuring > de-regulation and sub-contraction, declining access to welfare, restrictive immigration regime = created ‘migrant division of labour’ at bottom end of the economy

• MDL > serves needs of cities and their sustainability

• MDL entrenched during recession as exploitation of migrants increases

The ‘migrant division of labour’: From boom to bust in London

• Eve of recession - immigration at historically high levels in UK (doubling of UK foreign-born population 1993-2011 from 3.8 million to 7 million)

• London - by 2011 > 2.6 million foreign-born people comprising 42% of population (32% in 2006). 70% from developing countries

• Pre-recession labour market = simultaneous professionalization, economic inactivity and growth of ‘working poor’

The ‘migrant division of labour’: From boom to bust in London

• Concentration of migrant workers in low end low skilled jobs also shaped by radical overhaul of the British immigration system

• As migration increased – shift to ‘managed migration’ policies

• Resulting > poor working conditions endured by many low paid migrant workers in London

• In recession > demand for migrant labour remained resilient in low-paid sectors of London BUT conditions worsened

Transnational geographies of the migrant division of labour during recession in London

• Need to recognise the spatialities of low-paid migrants responses to economic downturn

• Evidence suggests that migrants i) continue to arrive and ii) continue to secure work

• 50% of Bulgarians arrived between 2007-2011; 25% of Latin Americans migrated between 2008-2010

• High employment rates = MDL remains intact - 96% Bulgarians and 85% of Latin Americans interviewed working

• Low-paid migrants move for economic betterment:– Delmar, 32, Ecuadorian: ‘I came here because of the economic

crisis in my country … it’s still better here, here I can make plans’

• Intensification of transnational flows of people, goods and services during downturn

– secondary movement of people increases– tangible and intangible ties among migrants in different

countries multiply – among Latin Americans > 36.5% had migrated from

intermediate country before UK – 38% from Spain– Liliana, 45, Colombian migrated from Gran Canaria in 2009

where she had lived for 11 years. Her hours of work as security guard in shopping mall were reduced by recession. Moved to London and found work in office cleaning

• Increase in irregular entry during recession (24% all irregular Latin Americans entered 2008-2009)

• Irregular migrants most exploited > withholding wages, harassment

• Creation of complex transnational household structures underpinned by economic recession

• Daniel, 44, Ecuadorian lost job in Spain, moved to London 2009. Left wife and children creating transnational household: ‘Economics, that was the reason I moved to London – for work and I have to pay off my housing debts there. But my emotional life has changed because I had to leave my wife and children in Spain’

• Therefore, economic crisis prompts migration from home countries, but also fuels secondary and irregular migration with all their associated vulnerabilities

Surviving the migrant division of labour during recession in London

• MDL has remained intact during recession with migrants labour market precarity further intensified

• MUTLIPLE and interlocking vunerabilities– Fears relating to, and actual, JOB LOSESES

• Evidence of deskilling: Danilo from Colombia who had worked as an architect before the recession but then as a waiter “because of the crisis...construction was affected and so were architecture companies...the large projects stopped and so they began to let staff go”

• Fear that clients would loose their jobs “I am afraid the financial sector could collapse. That is my only concern...I also loose clients because not all people can afford cleaning services anymore.” (Ivana, Bulgarain, working as a cleaner)

Surviving the migrant division of labour during recession in London

• Wage erosion & increased expectations:“I am paid less for the same work I did before and the cut is

both as payment per hour and as cut of number of hours I am paid for. It is hard to manage financially, especially lately in the

time of the crisis. I started feeling it 6 months ago. I work as a sub-contractor, they [the agency he works for] call me when there

is work for me, they cut the hours and the money per hour lately. The payment was £11 per hour, how it is £9 per hour. I am paid for 8 hours per day, and we work 10 hours, they do not pay the time envisaged for rest now, and they used to pay it before.’

(Ivan, Bulgarian, construction worker)• Similar vulnerability evident among self-employed

migrants

Surviving the migrant division of labour during recession in London

• Deteriorating relations between workers• Increased competition between ‘legal’ and ‘irregular’ migrants -

José (from Colombia worked as a cleaner): ‘There are more people coming to London now and the legals are taking the jobs. If someone is working without papers they have to leave to let the legal ones work. The recession is making it really hard for illegals at work and the legals look down on those with no papers’.

• Increased tensions between migrants and British born workers Diddi (Bulgaria,cleaner): ‘I see it, the recession – the bars are empty, people do not spend as much, as they did, they are nervous, they become more like us Bulgarians, there are more people in Primark - it is not accidental.’

Surviving the migrant division of labour during recession in London

• Migrants broader well being undermined

-‘Insecurity with work and finance leads to stress which affects personal life, people tend to be more impatient with their partners and the availability of extra time gives more opportunities for arguments. In many cases one of the parties has to carry most of financial burden and if the union is not strong enough it causes problems.’ (Bulgarian focus group participant)

Strategising to cope

• Securing additional jobs or working longer hours – ’There is less work lately which is less money so I have to find more sources to get money. It is psychologically difficult. I am considering going for cleaning.’ (Angelina, Bulgarian, waitress)

• ‘You have to tighten your belt, to eat less, that’s the strategy and to work more.’ (Alberto, Ecuadorian, office cleaner):

Strategising to cope: Geographical responses

RETURN MIGRATION(i) migrants ‘returning back’(ii) sticking it out in London(iii) Planning to stay longer than anticipated due to

recession‘[the recession] has affected me yes, I wanted to return home much faster, but now I need to wait longer until my new project comes through and I make more money’. (Cesar, 40 years old, Ecuador, dentist)

Geographical dimensions of coping

• Recession & remittances – overall impact geographically varied with remittances declining less and recovering faster than ODA and FDI

• This said marked decline as noted by Dario (Bolivian chef) ‘Now it isn’t like before. Before I sent a lot of money, but in the last 3 months, I have reduced it and I’ve sent less. Before I sent 60% of my salary, now I send 40%.’

Geographical dimensions of coping• Evidence of reverse remittances – Cesario

(Colombiaian moved to London in 2008 after 10 years in Spain) received a monthly allowance from his wife in Colombia taken from their savings when he lost his job as a cleaner to tide him over until he secured another job (whereas previously he had sent £3000 per year).

• Global nature of recession meant that some migrants had to intensify remittance sending ‘What I sent before used to cover the needs of my family, but now no. For example, if I sent 500 dollars 3 years ago, now I have to send 1000 to buy the same things.’ (Alfonso, Bolivia)

Conclusions• MDL which emerged during the boom years of

London’s growth has intensified during recession• Attributable to evolution of welfare and

immigration reform and a continued demand for labour in lower echelons of London’s economy

• Working conditions have worsened with myriad local and transnational implications for migrants

• Important to recognise spatialities of recession• ‘Sustainability’ of London’s economy continues to

depend upon (socially) unsustainable and unjust MDL