The temporary agency work sector across 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 Europe Europe – 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 Denmark Sweden Finland Norway Dansk Erhverv ALMEGA HPL NHO Service Ireland Slovenia Slovakia NRF Belgium ZAZ APAS FEDERGON UK Switzerland REC Turkey SwissStaffing Netherlands OIBD ABU ABU France France PRISME Luxembourg Czech Rep ULEDI Germany APPS Spain BZA AGETT & Macedonia AETT Poland NFTWA Austria HR Forum Portugal VZA APESPE Hungary Bulgaria Romania SZTMSZ Italy BG Staffing ARAMT ASSOLAVORO Estonia Lithuania Latvia Greece EFPRA LIIA LASA ENEPASE
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 market functioning 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 development now in terms of development in Europe?
European TAW market split per country % of total revenues Europe Rest of Europe 10% Switzerland 3% UK 31% Spain 3% Belgium 4% Italy 6% Netherlands 11% France 19% Germany 13%
TAW penetration limited compared to all temporary contracts (2009) EU average EU average of of TAW temporary contracts 1.5% 12% Poland Spain Portugal Netherlands Slovenia Sweden Finland France France Germany Switzerland Italy Greece Austria Denmark Czech Republic Hungary Share of employees with temporary contracts in 2009 (%) Belgium AW penetration rate in 2009 (%) Norway UK Slovakia Romania 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Percentage of working population
Importance of sectors differs between countries 100% Other 80 Tertiary 60 Public Administration 40 Services Construction 20 Secondary Manufacturing Agriculture Primary 0 NL SE UK ES 1 BE IT DE 1 CH AU FR PO NO 0.8% 0.4% 1.6% 0.7% 1.3% 1.4% 0.5% AW Penetration Rate 2009: 1% 2.5% 3.7% 1.6% 1.8% Share of sector (2009)
The diversity of agency workers’ profile should be recognised Workers Workers Workers Workers First time First time reentering reentering looking for Senior entrants the labour a Flex Students workers market Professionals permanent job (enter the (make money (remain (not looking labour to fund (work as employed to for a studies market and temps after (Second best get permanent and/or gain first period of choice but additional vacations) contract) unemployment see AW a work incomes) /maternity stepping experience) stone) leave)
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 Agency Work is based on a triangular relationship between an agency, a worker and a user company ( not related to fixed-term contracts, subcontracting or self employment) ��������� ������ ������ Supervision Employment of work contract ������� ����������� ������������ ���� ����� ������ ������ �� �������� Commercial 15 contract
Most common conditions to the use of TAW in EU TAW regulation Main restrictions Main obligations Equal Treatment on TAW use for TWAs Duration/ Reasons of Administrative Employment Sectors renewals use & financial contract Limitation of Limited Only limited Equal pay Restriction Licensing/cert on use of time spent in legally ification types of (same salary AW in same accepted systems + contracts that for agency particular assignment reason for obligation to can be offered workers than sectors and using AW report to agency permanent (constructio renewals statistics to workers workers n, public gvts holding the services..) same job in user company)
The Agency Work Directive A balanced solution has been found Common minimum Lifting of unjustified standards for agency restrictions workers (Article 4) (Article 5) Obligation to review restrictions Principles of equal Principles of equal once within three once within three treatment apply years after entry from day 1 into force of the Preamble: Directive “TAW meets not only Restrictions are Possibility to undertakings’ needs for only justified on derogate from the flexibility but also the limited grounds. principle at need of employees to Unjustified national level (3 reconcile their working restrictions must derogation and private lives. It thus be lifted clauses) 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 France, Italy, Luxembourg, Romania, renewals Sweden Waiting period France, Luxembourg, Hungary Compulsory exclusivity of Greece, Luxembourg, Portugal, Spain TAW services Limitations on number of Austria, Italy, Sweden temporary agency workers
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 no Countries with Equal Countries with no Equal specific regulation on Treatment provision Treatment regulation Agency Work • Austria • Bulgaria • Ireland • Belgium • Cyprus • UK (draft law establishes • Czech Republic • Estonia a 12 week derogation) • Denmark • Lithuania • Finland • Latvia • France • France • Malta • Malta • Germany • Greece • Hungary • Italy • Luxembourg • Netherlands • Poland • Portugal • Romania • Slovakia • Slovenia • Spain • Sweden
Regulation: The timeline evolution of agency work acceptance Social development Illegality Legal Social Normative Societal Full grey zone recognition tolerance acceptance acceptance recognition • Hostility and • Containment • AW • Useful tool • AW as an • AW as a rejection of of an accepted by for labor acceptable desirable this new form this new form unpopular unpopular trade unions, trade unions, market market work work choice of choice of of work industry, as a if properly policies alternative work relationship last resort HR regulated provider Regulatory development Social CLAs in No Coercitive Lifting Appropriate partners to addition to regulation regulation restrictions define regulation existing law regulation
To what extend TAW can help to improve functioning of the labour markets in East & South labour markets in East & South East Europe?
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