The role of private employment agencies in a changing labour market

1. The role of private employment agencies in a changing labour market Annemarie Muntz, Eurociett President ASSOLAVORO Workshop9 November 2011Rome

2. About Eurociett • Eurociett represents 35,000 companies (50,000 branches), employs 230,000 internal staff and more than 3 million agency workers on a daily average (full time equivalents) and around 9 million a yearly basis (headcounts) • 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 represent the following HR activities: temporary agency work, recruitment, interim management, executive search, outplacement, training • Is the only authoritative voice representing the interests of agency work businesses in Europe: • Accounts for more than 90% of the total sales revenues of the industry • Recognised as such by the EU Institutions as well as by key European stakeholders (e.g. ETUC, BUSINESSEUROPE, social NGOs, think tanks) • Is the employers’ official social partner within the EU sectoral social dialogue on temporary agency work (facing UNI-Europa)

3. The new reality of labour markets

4. How private employment agencies can help

5. Agency work reduces unemployment and illegal work: the Italian case • PrEAs reduce unemployment and bring more people to the legal economy

6. Maximising the PrEAs contribution • PrEAs have an important role to play in the labour market and they represent a great potential • However, agency work penetration rate still low – in Europe is 1.7% (2010) average, in Italy it is 0.8% (2010, defined in full-time equivalent ) • The new report “Adapting to change”, carried out by the Boston Consulting Group and Eurociett analyses the link between regulation and development of the agency work industry • There is need for appropriate regulation to allow PrEAs to contribute to better functioning labour markets

7. Appropriate regulation fosters PrEAs development • The index ranks countries according to how favourable the regulatory environment is to the development of agency work

8. Labour Market Efficiency Index • The report also develops a Labour Market Efficiency Index, which is directly correlated with the overall competitiveness of a country: the report shows that labour markets with higher penetration of agency work are also more efficient

9. Recommendations:lifting unjustified restrictions • The agency work directive must be implemented by 5 December 2011 Governments, together with social partners must make a full review of all restrictions in law and CLAs, together with the social partners by the deadline • All unjustified restrictions on temporary agency work and discriminatory measures related to temporary agency work labour contracts must be lifted. • In Italy, outdated and disproportionate measures include: • Reasons for use • Maximum number of agency workers • Maximum length of assignment

10. Recommendations: updating the relevant regulation • Removing restrictions does not mean eliminating all relevant regulation: licensing and certification systems can still be in place • Appropriate regulation ensures a level playing field and quality of services and prevents rogue providers from operating alongside with the clean industry • For example, well enforced authorisations systems are a valuable instrument to filter out rogue agencies • Appropriate regulation is needed to avoid to mix agency work with other forms of flexibility that are not regulated and are not organised as a sector

11. Flexible work: Let’s look at the big picture! Agency work Fixed-term contracts Subcontracting & outsourcing Call-on work Bogus self-employment Undeclared work Illegal work