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Kulat stl 2 Prekarizace prce a dstojn prce

Kulat stl 2Prekarizace prce a dstojn prce Jan DrahokoupilSenior ResearcherEuropean Trade Union Institute

Konferenz Zukunft der Arbeit, 9. Oktober 2015, PragTo facilitate interpretation: slides in English, presentation in Czech.


OutlineSome data on labour market developments: Precariarization?Two mechanisms in more detailOutsourcing/value chain fragmentation [boundaries of the firms]The micro-transaction economy [nature of employment]Discussion: What response to these challenges?

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Labour market developmentsSome data on trendsjan drahokoupil etui (2015)panel on precariarization3

Atypical employment on the rise, but differencesjan drahokoupil etui (2015)panel on precariarization4

Source: ETUI Benchmarking Working Europe 2015 (available at


Temporary/part time often not voluntary

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Source: ETUI Benchmarking Working Europe 2015 (available at

Atypical employment contributing to a shortage of demand, lower output and growing inequalities (ILO, 2015)jan drahokoupil etui (2015)panel on precariarization6Source: Eurostat (EU-SILC)In-work risk of poverty, EU28


The role of labour market regulation?

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Source: Drahokoupil & Myant 2015 in Transfer: European Review of Labour and Research

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Source: Drahokoupil & Myant 2015 in Transfer: European Review of Labour and Research

Boundaries of the firm: outsourcingMechanism 1jan drahokoupil etui (2015)panel on precariarization9

GVCs good for productivity, but lower wage share, feeding inequality (ILO, 2015)jan drahokoupil etui (2015)panel on precariarization10

A closer look at labour issues involved in subcontracting

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Available at A bird-eye picture on outsourcing/offshoring in Europe

2. Impact on working conditionsWORKS project order-processing in logistics and food, customer service in public services, IT departments in health)Call centres in telecomsPublic servicesConstruction, meat processing, ship building (posted work)

Establishing worker voice mechanism in fragmented value chainsTelecomsParcel deliveryConstruction (posted work)Automotive (agency work)Metal (bargaining in MNCs)

panel on precariarization

Outsourcing an aspect of GVC fragmentation, a shift from making in-house to market-based coordination

International comparative case study evidence on


Outsourcing/offshoring and working conditions: Key mechanisms undermining job quality and payImpact on existing worker representation structures and collective bargaining institutions Moving jobs outside of the scope of existing firm-level institutions (domestic outsourcing)A shift to different regulatory regimes (offshoring)Concession bargainingEmploying migrant workers in fact similar avoidance effects to offshoring (labour-market intermediaries)Institutions and TU strategies may influence outcomes Encompassing LM institutions (equal pay/conditions etc.), collective bargaining, and ability to mobilize across production network keyTargeted TU campaigns, sectoral bargainingInternational worker voice institutions (EWCs, EFAs)jan drahokoupil etui (2015)panel on precariarization12

Outsourcing often motivated by circumventing national and firm-level institutionsRole of mediating factors under-studiedMilberg/Winkler: LM protection expenditure positive impact on share of employee compensation, LMP institutions no effects, union density positive impact everywhere except for the Mediterannean (interaction with other factors)

Undermining worker representation institutions (also conc bargaining) -> declining pay and working condiitions (telcoms)Public sector: avoidance of CB the major motivationAuto: concession bargaining backfired


Outcomes country-specific: Crucial role of domestic institutions in shaping also decisions

13Source: Kirschner (2015, Figure 1) in Drahokoupil (2015)jan drahokoupil etui (2015)

Manufacturing ICT construction outsources the most, but national differences even if controlled for sectors and firm size13

Outsourcing/offshoring and working conditions: Key mechanisms 2Restructuring of the labour process to allow decoupling a major factor (negatively) influencing job quality both in sending companies and in outsourcing destinations

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Source: Drahokoupil (2015, Table 2), adapted from Gospel and Sako (2010)

Centralization to capture economies of scale and/or specializaiton benefitsJob quality, risk of stress (ability to solve problems)Less satisfying job content and fewer opportunities for learning


What should be done?Institutions to cover firm and national boundaries lackingHow to address company boundariesAgency work regulation (equal conditions), trade union strategySubcontractor liability missing in CZ and Eastern EuropeSectoral level bargaining weak in CZTransfer of undertakings provisions?Labour inspectorate capacityWhat else?How to address cross-border issues?EU level: tools to address these issues (e.g. agency work directive, transfer of undertakings, I&C), but implementation poor in many countries, yet make a difference in some (e.g. ToU in the UK)Some sectors call for entirely new institutions: e.g. Danaj & Sippola, 2015: a European construction workers unionWhat else?jan drahokoupil etui (2015)panel on precariarization15

Enforcing regulations of agency work and self employment typically require functioning trade unions on the company level

Nature of employment: The micro-transaction economy Mechanism 2jan drahokoupil etui (2015)panel on precariarization16

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Beyond the sharing economy misnomerIn fact very few sharing models a success: renting and micro-transactions dominantMuch of success unfair competition: avoiding regulation and taxationYet, importance not to be discarded: technology enables gig economy which undermines standard employmentFiverr, Task rabbit, etc. not new models, but important that customer does not have to go through yellow pages and barriers for entry to providers very lowFacilitating and enabling hollowing out middle/lower-middle jobsSocial polarization, depressing demand, undermining local economies

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Sharing: share use and costs (one can design app for that)There are collaborative models18

What should be done?There is an easy fix for some things: Some regulatory avoidance should be easy to address (technology there)E.g. Uber could be extremely efficient in collecting taxes from taxi drivers & can be pressed by authoritiesSome institutions that may be ultimately not viable not essential social value? (e.g. taxi licence fees)A need to adapt institutions such as health insurance, income replacement, etc., to the gig economyCan trade unions play a role in the gig economy as e.g. insurance providers?Do we need new regulations?A bigger challenge: hollowing out of middle-income jobs, labour market polarization, inequalityjan drahokoupil etui (2015)panel on precariarization19

Finally, to wrap upTwo trends discussed account for precariarization only partiallyMuch thus not a new problem, but the old regulatory failure (e.g. commercial contracts legislation in PL, varcsystem in CZ)But two important factors and likely to play a bigger role in the futureHence for discussion: how to tackle(Cross-border) value chain fragmentationGig economy undermining standard employment typesThe bigger challenge of labour-market polarization

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