Capturing Flexibility and Insecurity Through Statistics

1. Capturing Flexibility and Insecurity Through Statistics Azfar Khan, ILOSocio-Economic Security Programme

2. Instruments • Enterprise Labour Flexibility and Security Surveys (ELFS) • Establishment level • People Security Surveys (PSS) • Individual level

3. Direct Employment Indirect Employment Regular Full-time Casual Temporary Regular Part-time Contract Labour Probationary Sub-contracting Home Workers Differential Relations Flexibility and Security Structure

4. Differential Relations Job Security Wages Skill Reproduction Security Benefits Income Security Representation Security Employment Security Work Security Flexibility and Security Structure

5. Institutional Considerations • A reorientation of regulatory systems • greater emphasis on individual freedom and less on collective action or protection • Technological change • accelerating changes in production techniques • making multi-site production possible • making decentralization and out-sourcing more feasible and profitable • more options for labour arrangements, payment systems, etc.

6. Perceived Considerations • Global informalization of economic activity, involving a spread of forms of labour and work not covered by protective regulatory and social protection systems. • Global growth of flexible production and labour markets, linked in part to the technological change and globalization, and involving the following:

7. Perceived Considerations • Organizational flexibility • more turnover of firms, more use of sub-contracting and production chains, and a tendency to contract the employment function; • Numerical flexibility • more use of external labour, such as contract workers, outworkers, homeworkers, agency labour, temporary workers, and teleworkers; • Functional flexibility • greater change in work tasks, job rotation, and skill;

8. Perceived Considerations • Working time flexibility • more continuous working, flexible hours, etc.; • Wage system flexibility • a shift from fixed to flexible wages, monetization of remuneration, greater use of bonuses, etc.; • Labour force flexibility • less attachment to sectors, companies or occupational groups, erosion of collective labour, and greater tendency for workers to move in and out of the labour market and labour force.

9. Direct Employment Sub-contracting Contract Labour Casual Labour Applicants Home Workers Recruitment Employment Service Vacancies Initial training Probation Job Structure Retraining Training Upgrading Turnover The Enterprise Labour Market

10. Labour Market Security PSS: • Main work activity (by time spent) • Work status • Working for wages • Regular/casual employment • Contract labour • Own account worker • Primary or secondary activity

11. Measuring Social Income SI = W + EB + SB + PB + CB where W:the money wage and/or money income received from different types of economic activities EB: the total value of benefits provided by the enterprise as non-wage benefits and insurance type supports SB: the total value of benefits provided by the state, which are taken to include citizenship benefits, insurance based income transfers and discretionary ‘means-tested’ transfers PB: total value of benefits accruing from private income, either through investments, ownership of assets and privately contracted social protection CB: the benefits accruing through a reliance on traditional communal and family support systems

12. Remuneration In-kind pay Fixed wage Tariff Collective bargain Bonus Arrears (Incentives, Profit share, Benefits) Wage Flexibility Loop

13. Monetary Remuneration (cont’d) Incentives Non-monetary Profit share Type, change Entitlement Benefits Form % of pay Wage Flexibility Loop

14. Income Security PSS: • Regularity of income • Form of remuneration • Main method of payment (wage based, piece rate, job based) • Benefits (health care, maternity benefits, redundancy payments, pension entitlements, disability benefits, subsidies for schooling, etc.)

15. Employment Security ELFS: • Labour turnover • Changes in employment structure (regular vs. non-regular) PSS: • Period of unemployment • Terms of employment termination • Severance payment • Provision of other entitlements

16. Work Security ELFS: • Number of work-related accidents, working time lost, etc. • Committee/department to protect workers PSS: • OSH conditions, workplace hazards

17. Skill Reproduction Security ELFS: • Providing initial training, retraining, training to upgrade • Forms of training • Subsidizing training institute PSS: • Access to training for regular and non-regular workers (especially for informal workers)

18. ELFS and PSS Carried Out

19. Discerned Results • Labour Market Insecurity has grown almost globally, with much higher unemployment, slower rates of employment growth and higher labour slack. • Employment Insecurity is high and rising, with growing proportions of those in the labour force having insecure employment statuses and with more workers lacking employment protection.

20. Discerned Results • Work Insecurity has become greater, due to more people being in work statuses without coverage by protective institutions and regulations. • Job Insecurityhas worsened, with more workers having to switch jobs and learn new tricks of working. • Skill Reproduction Insecurity is considerable with flexibility, in part because skills become obsolescent more quickly and because few workers are receiving career skills.