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1. Temporary Agency Workin light of EU experienceAnnemarie Muntz – Eurociett President
2. Content of presentation Eurociett structure & profile
Regulation on Agency Work
The Agency Work market in Europe
Private Employment Agencies’ contribution to the labour market
Agency work benefits for workers and businesses
EU Policy priorities for Eurociett
Open discussion
3. Content of presentation Eurociett structure & profile
Regulation on Agency Work
The Agency Work market in Europe
Private Employment Agencies’ contribution to the labour market
Agency work benefits for workers and businesses
EU Policy priorities for Eurociett
Open discussion
4. 4 Eurociett at a glance Eurociett is the European organisation of Ciett, the International Confederation of Private Employment Agencies
Is the only authoritative voice representing the interests of agency work businesses in Europe:
Recognised as such by the European Institutions, key European stakeholders (e.g. ETUC, UNI-Europa, BusinessEurope) as well as national governments
Brings together 25 national federations of private employment agencies and 6 of the largest European staffing companies:
Adecco, Kelly Services, Manpower, Randstad, USG People, Vedior
Eurociett Members gather private companies operating in the following HR activities: temporary agency work, recruitment, interim management, executive search, outplacement, training
Eurociett Members gathers 30,000 branches, employ 210,000 internal staff and 3.2 million agency workers on a daily average (full time equivalent)
5. 5 National Federation members
6. 6 Corporate Members
7. 7 Eurociett’s long term objectives To protect and promote the interests of Private Employment Agencies in order to enhance their long term growth
To create the most suitable legal environment for the industry to operate in
To improve the image of the industry and strengthen its representativity
To seek greater recognition for the contribution that private employment agencies make to labour markets, especially in relation with 3 key aspects:
employment creation (provide work to job-seekers, stepping-stone to permanent employment, enhance worker’s employability, help to create jobs that wouldn’t exist otherwise);
access to and integration in the labour market of diversified categories of workers (disabled, first-time entrants, long-term unemployed);
economic growth and public budget incomes
8. 8 Main past achievements Liberalisation of the legislation:
filing of complaint with the European Commission in 1992 against Italy, Spain and Germany after which these countries gradually liberalised their agency work regulations: (Spain 1994), (Italy 1997+ Biaggi amendment 2003), (Germany 1992-1997, 2004)
And thereafter legal recognition Greece (1999), Finland (1993), Sweden (1993)
Further deregulation achieved in The Netherlands (1998 and 2003), Belgium (1997 and 2003), France (2005)
2. Better visibility/recognition of the agency work sector:
Developing research on the AW industry: strategic reports (McKinsey 2000 – Bain 2007), review on regulation (Dublin Foundation – 2006), data collecting (
Entering European social dialogue with Uni-Europa: 2 joint-declaration signed (AWD in 2001, Flexicurity in 2007)
Recognition of the agency work sector as a contributor to the realisation of the Lisbon objectives in the 'Kok report‘
Role of agency work in implementing Flexicurity policies has been recognised in the European Commission’s Communication “Towards Common Principles of Flexicurity”
9. 9 Activities and Organisation Efficient Political lobbying
Most important function is to help its members conduct their businesses in a legal and regulatory environment that is positive and supportive
Intelligence monitoring
Public Affairs Report (monthly), monitoring the latest developments in terms of European policy issues
Internal membership newsletter (quarterly), to inform about the life of the confederation and its members
Website which includes a large Research Center
Best practices sharing
Regular meetings and dedicated seminars with the purpose to share Members’ best practices on topics relevant to the whole industry
Annual conference
Surveys and data collecting
Gathering of key data on the Private Employment Agency industry, and development of surveys related to our industry
A Board (9 members) meeting 4 times a year and a General Assembly (all members - highest ranking decision making body) meeting 3 times
A permanent Secretariat staff
Since 2005, Ciett and Eurociett have set up a combined permanent bureau, comprising 3 full time employees, in order to strengthen the professionalism and activities of the confederation
10. Content of presentation Eurociett structure & profile
Regulation on Agency Work
The Agency Work market in Europe
Private Employment Agencies’ contribution to the labour market
Agency work benefits for workers and businesses
EU Policy priorities for Eurociett
Open discussion
11. 11 A triangular relationship
12. 12 A very tightly regulated market A well-regulated industry at international, European and national levels
International level:
Legal framework provided by ILO Convention n°181 and Recommendation n°188 on PrEAs
Self-regulation provided by Ciett’s Code of Conduct
EU Level
Posting of Workers Directive
Health & Safety Directive
Personal data protection Directive
Information on employment contract Directive
Draft Agency Work Directive
Eurociett’s Code of Conduct
National level
Industry mainly regulated by national labour law
Legal framework strengthened by collective labour agreements in many countries
PrEA trade organisations’ national Code of Conduct
Sector growth leads to legislative revisions (better balance between flexibility and security and/or increased scope)
13. 13 Legal Restrictions in Europe (EU 15) ‘Waves’ of legislation in 70s, late 80s, late 90s
Large range of legal restrictions and requirements
Most countries have licensing and/or authorisation schemes
Sectoral bans frequent (e.g. public sector, construction)
Maximum length of assignment and limitation of contract renewals
Equal treatment conditions are common
Internal regulations through national Codes of Conduct
Robust sector-level collective bargaining in most countries Sector prohibition for Temporary Work
Austria = healthcare
Belgium = public services + removal + harbour based entreprises
France = only Work Doctors by law (but also Public Services by habit & trade unions)
Netherlands = shipping
Spain = Public services
Sweden = HealthcareSector prohibition for Temporary Work
Austria = healthcare
Belgium = public services + removal + harbour based entreprises
France = only Work Doctors by law (but also Public Services by habit & trade unions)
Netherlands = shipping
Spain = Public services
Sweden = Healthcare
14. 14 Legal Restrictions in Europe (EU 15) Sector prohibition for Temporary Work
Austria = healthcare
Belgium = public services + removal + harbour based entreprises
France = only Work Doctors by law (but also Public Services by habit & trade unions)
Netherlands = shipping
Spain = 15 sectors (Public services, construction…)
Sweden = HealthcareSector prohibition for Temporary Work
Austria = healthcare
Belgium = public services + removal + harbour based entreprises
France = only Work Doctors by law (but also Public Services by habit & trade unions)
Netherlands = shipping
Spain = 15 sectors (Public services, construction…)
Sweden = Healthcare
15. 15 Legal Restrictions in Europe (EU 12 new MS) Most EU new Member States have a licensing or authorisation system
Otherwise half have little or no statutory framework
Laws introduced recently (ILO relevant)
Based on a triangular relationship where TWA is the direct employer
Sectoral restrictions limited to ‘dangerous work’; however, other restrictions apply
None MS have sector-level bargaining for the time being
Sector prohibition for Temporary Work
Austria = healthcare
Belgium = public services + removal + harbour based entreprises
France = only Work Doctors by law (but also Public Services by habit & trade unions)
Netherlands = shipping
Spain = Public services
Sweden = HealthcareSector prohibition for Temporary Work
Austria = healthcare
Belgium = public services + removal + harbour based entreprises
France = only Work Doctors by law (but also Public Services by habit & trade unions)
Netherlands = shipping
Spain = Public services
Sweden = Healthcare
16. 16 Legal Restrictions in Europe (EU 12 new MS) Sector prohibition for Temporary Work
Austria = healthcare
Belgium = public services + removal + harbour based entreprises
France = only Work Doctors by law (but also Public Services by habit & trade unions)
Netherlands = shipping
Spain = Public services
Sweden = HealthcareSector prohibition for Temporary Work
Austria = healthcare
Belgium = public services + removal + harbour based entreprises
France = only Work Doctors by law (but also Public Services by habit & trade unions)
Netherlands = shipping
Spain = Public services
Sweden = Healthcare
17. 17 Equal treatment for Temporary Agency Workers Sector prohibition
Austria = health care
Belgium = public services + removal +batellerieSector prohibition
Austria = health care
Belgium = public services + removal +batellerie
18. 18 Yasal engellerin kaldirilmasi yönünde bir egilim Main Changes in Regulation
Japan: opening to new new sector (manufacturing)
Greece: Legal recognition of the industry (2001)
Germany: In 2004, the German law changed with the interdictions of equal pay right many restrictions were removed (eg sector ban in Construction). Detachment, re-employment and fixed term employment allowed once per employee
Spain: Following the legal recognition of the industry in 1994, the regulatory framework was tightened in 1999, with the requirement that agency workers be paid equal wages to non- agency workers in user companies. However, over the whole period 1989 to 1999, the aggregate Spanish regulatory environment has become less prohibitive.
Italy: Legal recognition of the industry (1998) + opening to HR services (1993 – Biagi reforms)
Denmark: liberal because no specific law, however industry organised through Collective Labour Agreements
Portugal: Legal recognition of the industry (1989)
Belgium: Extension maximum length of assignment (1997) + opening to new sectors (Horeca, construction, agriculture)
Norway: Lifting of restrictions (1999-2000)
Finland: Legal recognition of the industry (1994)
Sweden: Legal recognition of the industry (1993) + liberal because no specific law, however industry organised through Collective Labour Agreements
Netherlands: Lifting time limits and sector restrictions (98)
Source: Deloitte & Touche Bakkenist; ETUI; Morgan Stanley Dean Witter Research; McKinsey & Company Analysis, Euro-CIETT
Main Changes in Regulation
Japan: opening to new new sector (manufacturing)
Greece: Legal recognition of the industry (2001)
Germany: In 2004, the German law changed with the interdictions of equal pay right many restrictions were removed (eg sector ban in Construction). Detachment, re-employment and fixed term employment allowed once per employee
Spain: Following the legal recognition of the industry in 1994, the regulatory framework was tightened in 1999, with the requirement that agency workers be paid equal wages to non- agency workers in user companies. However, over the whole period 1989 to 1999, the aggregate Spanish regulatory environment has become less prohibitive.
Italy: Legal recognition of the industry (1998) + opening to HR services (1993 – Biagi reforms)
Denmark: liberal because no specific law, however industry organised through Collective Labour Agreements
Portugal: Legal recognition of the industry (1989)
Belgium: Extension maximum length of assignment (1997) + opening to new sectors (Horeca, construction, agriculture)
Norway: Lifting of restrictions (1999-2000)
Finland: Legal recognition of the industry (1994)
Sweden: Legal recognition of the industry (1993) + liberal because no specific law, however industry organised through Collective Labour Agreements
Netherlands: Lifting time limits and sector restrictions (98)
Source: Deloitte & Touche Bakkenist; ETUI; Morgan Stanley Dean Witter Research; McKinsey & Company Analysis, Euro-CIETT
19. Content of presentation Eurociett structure & profile
Regulation on Agency Work
The Agency Work market in Europe
Private Employment Agencies’ contribution to the labour market
Agency work benefits for workers and businesses
EU Policy priorities for Eurociett
Open discussion
20. 20 The Agency Work market in Europe Rather small but significant sector
On EU average, accounts for 1.7% of total national labour force
Total number of Agency Workers = 3.2 million daily FTE (2006)
Around 30,000 branches from 20,000 different firms
Annual turnover of at least €85 billion
New markets are emerging: countries from Central and Eastern Europe (new EU Member States)
Sectoral distribution differs between countries
1/3 directed towards industry/manufacturing (AT, FR, NL, PT)
1/3 services (EL, ES, NO, SE, UK) and the remainder (BE, DK, FI, IT) more mixed
minority (DK, NL, NO, UK) have significant public sector usage
Profile of average agency worker:
Mainly low-skilled work, but moving upwards to higher skilled jobs
Male and young workers prominent
Meets companies’ requirement for more labour flexibility while protecting working conditions (best balance between flexibility and employment security)
21. 21 TAW penetration rate widely varies across countries
22. 22 Number of branches
23. 23 Number of Private Employment Agencies
24. 24 Number of Agency Workers
25. 25 AWB worldwide turnover evolution
26. 26 AWB worldwide turnover split up (2005)
27. 27 Level of industry consolidation differs by country
28. Content of presentation Eurociett structure & profile
Regulation on Agency Work
The Agency Work market in Europe
Private Employment Agencies’ contribution to the labour market
Agency work benefits for workers and businesses
EU Policy priorities for Eurociett
Open discussion
29. 29 An increasingly recognised industry European Union
European Commission – Communication Flexicurity
« Public-private partnership of all stakeholders (public authorities at all levels, educaiton and training providers, social partners, companies, NGOs, private employment agencies) could contribute to effectiveness of active labour market policies. »
Kok Report for Commission (« Jobs, Jobs, Jobs » - 2003):
« Temporary work agencies should have their place in a modern labour market as new intermediaries that can support flexibility and mobility of firms and workers, while offering security for workers.[…] Removing obstacles to temporary agency work could significantly support job opportunities and job matching. »
European Trade Union Confederation (ETUC)
« Temporary work agencies play a useful role in increasingly complex labour markets » in Services Directive brochure - 2005
International Labour Organisation: Convention 181 (1997)
“Being aware of the importance of flexibility in the functioning of labour markets, and (…) recognizing the role which private employment agencies may play in a well-functioning labour market, one purpose of this Convention is to allow the operation of private employment agencies as well as the protection of the workers using their services, within the framework of its provisions.“
30. 30 PrEAs contribution to labour markets Provide work to job-seekers and contribute to reducing unemployment (both frictional and long-term)
employ 3.2 million agency workers in the EU 27 on a daily basis (FTE) and 210,000 internal staff employees
Help to create jobs that would not exist otherwise
TAW has created 350K jobs over 03-05 in 6 European countries only (UK, Germany, France, Belgium, Netherlands and Spain), accounting for 24% of total new job creation)
80% of them are additional ones, not substituting to permanent ones.
Furthermore, the PrEA industry itself has created 15,000 jobs over 03-05 (internal staff working in TAW branches)
Act as a stepping-stone to permanent employment
41% of agency workers are in longer-term employment within one year from their agency work assignment
Improve labour market fluidity
match labour force to companies production needs virtually immediately, through their network of 30,000 branches across Europe
meet a genuine demand for flexible work: 33% of agency workers have a real preference for agency work
31. 31 PrEAs contribution to labour markets (2) Enhance workers’ employability
By keeping workers providing training and by multiplying experience in very specific working environment
Play a key role in Active Labour Market Policies
by being reliable partners of public employment services in governmental programmes,
by putting more people at work and by cooperating with Public Employment Services
Help disadvantaged publics to enter the labour market and increase diversity of workforce
40% of the workers employed through PrEAs belong to the category defined by the OECD as ‘outsiders to the labour market’ (i.e. long-term unemployed, first-time entrants to the labour market, women returning to the labour market, elderly people, etc.)
Contribute to economic growth and tax revenues
By putting millions of people at work, PrEAs reduce the unemployment allowances paid by Member States while increasing public incomes through the social contributions paid by these agency workers
PrEA services also contribute to reduce undeclared work
in some of the Western European countries, the industry’s tax and fiscal revenues (income tax, social charges, VAT…) can account for up to 1% of national income
32. 32 TAW plays an active role in different kinds of transitions in the labour market
33. 33 A large part of TAWorkers were previously student or unemployed
34. 34 TAW is an effective driver against long-term unemployment…
35. 35 …And undeclared work
36. Content of presentation Eurociett structure & profile
Regulation on Agency Work
The Agency Work market in Europe
Private Employment Agencies’ contribution to the labour market
Agency work benefits for workers and businesses
EU Policy priorities for Eurociett
Open discussion
37. 37 Main reasons to work through a PrEA
38. 38 PrEAs supply companies with skills and workforce flexibility
39. 39 PrEAs provide added value HR services PrEAs are expanding their basic service offering and are assuming a more important role in wider human resource-related services, such as recruiting, training and the management of human resource-intensive processes.
This is occurring particularly in European countries with higher PrEA penetration rates.
Our survey of user companies suggests that there is a strong demand for these services, although in some European countries, PrEAs are prohibited from offering them.
PrEAs provide recruiting services. In countries where this is permitted, PrEAs not only help companies recruit agency workers, but they also use their recruiting, assessment and matching skills to find permanent workers for the company (Case 7). In the company survey, 41 per cent of respondents indicated that they would probably use this service in the future (Exhibit 12).
PrEAs are expanding their basic service offering and are assuming a more important role in wider human resource-related services, such as recruiting, training and the management of human resource-intensive processes.
This is occurring particularly in European countries with higher PrEA penetration rates.
Our survey of user companies suggests that there is a strong demand for these services, although in some European countries, PrEAs are prohibited from offering them.
PrEAs provide recruiting services. In countries where this is permitted, PrEAs not only help companies recruit agency workers, but they also use their recruiting, assessment and matching skills to find permanent workers for the company (Case 7). In the company survey, 41 per cent of respondents indicated that they would probably use this service in the future (Exhibit 12).
40. Content of presentation Eurociett structure & profile
Regulation on Agency Work
The Agency Work market in Europe
Private Employment Agencies’ contribution to the labour market
Agency work benefits for workers and businesses
EU Policy priorities for Eurociett
Open discussion
41. 41 Eurociett Public Affairs Priorities for 2007 Flexicurity (see details below)
Blocked Agency Work Directive (see details below)
Debate on the modernisation of Labour Law (see details below)
Workers mobility and Posting of Workers
Positioning agency work as facilitator for the mobility of workers
Monitoring political developments concerning a better implementation of the Posting of Workers Directive (enforcement and information of cross-border agency workers)
42. 42 The Flexicurity debate A communication from the Commission on Flexicurity was launched last June, aiming at defining European common guiding principles to implement flexicurity
Commission has identified 4 components to Flexicurity
Flexible and secure contractual arrangements
Effective Active Labour Market Policies
Reliable and responsive Life-long learning systems
Modern Social Security systems
+ crucial role of social partners and social dialogue
4 challenges to be faced by EU member States
Two-tier labour markets with a large share of ‘outsiders’ and strict regulation on open-ended contracts (FR/IT/SP/GR/PT)
Little dynamic labour markets with a large share of workers with high job security but few opportunities to find new employment if fired (AT/GER/BE)
Dynamic labour markets but with skills gaps (UK, NL, IRL)
Labour markets offering lack of opportunities to ‘outsiders’ due to benefit dependence or informal work (new EU MS)
Eurociett uses the debate as an essential tool to shape a better understanding of the positive role the AW plays in the labour market
43. 43 Flexicurity: a concept that balances the interests of both workers and employers
44. 44 Eurociett recommendations on Flexicurity The TAW contribution to a better functioning labour market should be recognised, especially regarding its contribution to active labour market policies
Temporary work agencies contribute to active labour market policies by offering job opportunities, by using their networking experience in matching demand and supply and by improving the employability of workers
The temporary work industry has signed cooperation agreements with public employment services in many European countries, focusing on the information exchange, on enhancing the employability of workers and on supporting specific target groups (like first-time entrants, long-term unemployment)
Unjustified obstacles and restrictions to temporary agency work services, which are still widespread, should be reviewed and lifted
particularly sectoral bans, maximum length of assignments or limitations of renewals
The TAW industry should be included in the 2008 revised Lisbon Employment Guidelines to ensure that temporary agency work is included as an important element in national labour market policies
45. 45 The Agency Work Directive At end of 1990s, European Commission wanted to regulate “atypical work”
Part-time work: Directive adopted in 1997
Fixed-term contract: Directive adopted in 1999
Temporary Agency Work (TAW): no agreement between social partners nor EU Member States ? Commission drafted a Directive
Since 2002, draft TAW Directive has been blocked in Council
UK, Ireland, Denmark and Germany = blocking minority
Stalemate on Equal Treatment provision (same working conditions between agency workers and permanent workers) and on lifting restrictions
Eurociett Position
Current draft Directive outdated
Eurociett not opposed as such to a European regulatory framework for the agency work industry
New draft should allow for a better development of the agency work industry, based on the following regulatory principles:
Freedom to provide services & freedom of establishment
Freedom to choose for agency workers, agencies and user companies
Protection of workers rights
Regulatory compliance and controls
46. 46 Modernising Labour Law (Green Paper) European Commission (DG Employment) launched a public consultation in November 2006 on how to modernise labour law
A Green Paper was published calling for input from all EU stakeholders
Particular focus on workers in vulnerable positions and “atypical” forms of employment
Main messages of the Eurociett submission:
Temporary agency work is a well-regulated, established form of flexible employment.
Need to lift restrictions faced by temporary work agencies in order to create a level-playing field.
Flexicurity concept is to be put forward as an approach for a meaningful labour market reform.
There is no need to clarify the employment status of agency workers, as it is clearly defined by national labour law.
The rights and working conditions of temporary agency workers are clearly defined by national law.
A follow-up Communication on Labour Law expected in November
47. 47 Why using the services of a PrEA? To manage external flexibility needs
To absorb fluctuations (seasonal or unexpected peaks of output, economic cycle)
To create a shift dedicated to the launch of a new product/service
To supplement internal workforce
To handle sick and leave situations
To source and test future employees
To perform work that requires skills not available in-house
To have access to a full range of value added HR services
e.g. training, recruitment, outplacement, interim management
To manage HR related administration and red tape
To increase companies’ productivity by allowing them to focus on core business
48. Content of presentation Eurociett structure & profile
Regulation on Agency Work
The Agency Work market in Europe
Private Employment Agencies’ contribution to the labour market
Agency work benefits for workers and businesses
EU Policy priorities for Eurociett
Open discussion
49. 49