Capturing Flexibility and Capturing Flexibility and Insecurity Insecurity Through StatisticsThrough Statistics

Azfar Khan, ILOAzfar Khan, ILOSocio-Economic Security ProgrammeSocio-Economic Security Programme

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InstrumentsInstruments

1.1. Enterprise Labour Flexibility and Enterprise Labour Flexibility and Security Surveys (Security Surveys (ELFSELFS))

Establishment levelEstablishment level

2.2. People Security Surveys (People Security Surveys (PSSPSS)) Individual levelIndividual level

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Differential Relations

Flexibility and Security StructureFlexibility and Security Structure

Regular Full-time

Direct Employment

Regular Part-time

Probationary

Casual Temporary

Indirect Employment

Contract Labour

Sub-contracting

Home Workers

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Flexibility and Security StructureFlexibility and Security Structure

Differential Relations

Job SecurityWages

Benefits

Income Security

Employment Security

Skill Reproduction Security

Representation Security

Work Security

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Institutional ConsiderationsInstitutional Considerations

A reorientation of regulatory systemsA reorientation of regulatory systems – greater emphasis on individual freedom and greater emphasis on individual freedom and

less on collective action or protectionless on collective action or protection

Technological changeTechnological change – accelerating changes in production techniquesaccelerating changes in production techniques– making multi-site production possible making multi-site production possible – making decentralization and out-sourcing more making decentralization and out-sourcing more

feasible and profitable feasible and profitable – more options more options for for labour arrangements, labour arrangements,

payment systems, payment systems, etcetc..

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Perceived ConsiderationsPerceived Considerations

Global informalizationGlobal informalization of economic activity, of economic activity, involving a spread of forms of labour and involving a spread of forms of labour and work not covered by protective regulatory work not covered by protective regulatory and social protection systems.and social protection systems.

Global growth of flexible production and Global growth of flexible production and labour marketslabour markets, linked in part to the , linked in part to the technological change and globalization, and technological change and globalization, and involving the following:involving the following:

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Perceived ConsiderationsPerceived Considerations

1.1. Organizational flexibilityOrganizational flexibility more turnover of firms, more use of sub-more turnover of firms, more use of sub-

contracting and production chains, and a tendency contracting and production chains, and a tendency to contract the employment function;to contract the employment function;

2.2. Numerical flexibilityNumerical flexibility more use of external labour, such as contract more use of external labour, such as contract

workers, outworkers, homeworkers, agency labour, workers, outworkers, homeworkers, agency labour, temporary workers, and teleworkers;temporary workers, and teleworkers;

3.3. Functional flexibilityFunctional flexibility greater change in work tasks, job rotation, and greater change in work tasks, job rotation, and

skill;skill;

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Perceived ConsiderationsPerceived Considerations

4.4. Working time flexibilityWorking time flexibility more continuous working, flexible hours, etc.;more continuous working, flexible hours, etc.;

5.5. Wage system flexibilityWage system flexibility a shift from fixed to flexible wages, monetization of a shift from fixed to flexible wages, monetization of

remuneration, greater use of bonuses, etc.;remuneration, greater use of bonuses, etc.;

6.6. Labour force flexibilityLabour force flexibility less attachment to sectors, companies or less attachment to sectors, companies or

occupational groups, erosion of collective labour, occupational groups, erosion of collective labour, and greater tendency for workers to move in and and greater tendency for workers to move in and out of the labour market and labour force.out of the labour market and labour force.

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The Enterprise Labour MarketThe Enterprise Labour Market

Direct Employment

Contract Labour

Sub-contracting

Casual Labour

Recruitment

Probation

Training

Turnover

Initial training

Retraining

Upgrading

Job Structure

Home Workers

Em

ploy

men

t S

ervi

ce

App

lica

nts

Vac

anci

es

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Labour Market SecurityLabour Market Security

Main work activity (by time spent)Main work activity (by time spent) Work statusWork status

– Working for wagesWorking for wages Regular/casual employmentRegular/casual employment

– Contract labourContract labour– Own account workerOwn account worker

Primary or secondary activityPrimary or secondary activity

PSSPSS:

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Measuring Social IncomeMeasuring Social IncomeSI = W + EB + SB + PB + CBSI = W + EB + SB + PB + CB

wherewhere

WW:: the money wage and/or money income received from the money wage and/or money income received from different types of economic activitiesdifferent types of economic activities

EBEB:: the total value of benefits provided by the enterprise as the total value of benefits provided by the enterprise as non-wage benefits and insurance type supportsnon-wage benefits and insurance type supports

SBSB:: the total value of benefits provided by the state, which are the total value of benefits provided by the state, which are taken to include citizenship benefits, insurance based taken to include citizenship benefits, insurance based income transfers and discretionary ‘means-tested’ income transfers and discretionary ‘means-tested’ transferstransfers

PBPB:: total value of benefits accruing from private income, total value of benefits accruing from private income, either through investments, ownership of assets and either through investments, ownership of assets and privately contracted social protectionprivately contracted social protection

CBCB:: the benefits accruing through a reliance on traditional the benefits accruing through a reliance on traditional communal and family support systemscommunal and family support systems

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Wage Flexibility LoopWage Flexibility Loop

RemunerationRemuneration

In-kind payIn-kind pay

Fixed wageFixed wage

BonusBonus

TariffTariff

Collective bargainCollective bargain

(Incentives, Profit share, Benefits)(Incentives, Profit share, Benefits)ArrearsArrears

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Wage Flexibility LoopWage Flexibility Loop

Remuneration (cont’d)Remuneration (cont’d)

IncentivesIncentives

Profit shareProfit share

BenefitsBenefits

FormForm

EntitlementEntitlement

Type, changeType, change

MonetaryMonetary

Non-monetaryNon-monetary

% of pay% of pay

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Income SecurityIncome Security

Regularity of incomeRegularity of income Form of remunerationForm of remuneration

– Main method of payment (wage based, piece Main method of payment (wage based, piece rate, job based)rate, job based)

– Benefits (health care, maternity benefits, Benefits (health care, maternity benefits, redundancy payments, redundancy payments, pension entitlements, pension entitlements, disability benefits, subsidies for schoolingdisability benefits, subsidies for schooling, etc., etc.))

PSSPSS:

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Employment SecurityEmployment Security

Labour turnoverLabour turnover Changes in employment structure Changes in employment structure

(regular vs(regular vs. . non-regular)non-regular)

ELFSELFS:

Period of unemployment Period of unemployment Terms of Terms of employment terminatemployment terminationion Severance paySeverance paymentment ProviProvision ofsion of other entitlements other entitlements

PSSPSS:

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Work SecurityWork Security

Number of Number of work-related work-related accidentsaccidents, , working time lost, etc.working time lost, etc.

CommitCommittee/department tee/department to protect to protect workersworkers

ELFSELFS:

OSH conditionsOSH conditions, workplace hazards, workplace hazardsPSSPSS:

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Skill Reproduction SecuritySkill Reproduction Security

Providing initial training, retraining, Providing initial training, retraining, training to upgradetraining to upgrade

Forms of trainingForms of training Subsidizing training instituteSubsidizing training institute

ELFSELFS:

Access to training for regular and non-Access to training for regular and non-regular workers (especially for informal regular workers (especially for informal workers)workers)

PSSPSS:

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ELFS ELFS and PSS and PSS Carried OutCarried OutELFS PSS ELFS PSS

Albania Kazakhstan Argentina Kyrgyzia Azerbaijan Malaysia Bangladesh Mexico Brazil Moldova Bulgaria Pakistan Chile Philippines China Russia Ethiopia Slovakia Georgia South Africa Ghana Tanzania Hungary Thailand India Ukraine Indonesia

Total 24 16

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Discerned ResultsDiscerned Results Labour Market InsecurityLabour Market Insecurity has grown almost has grown almost

globally, with much higher unemployment, globally, with much higher unemployment, slower rates of employment growth and slower rates of employment growth and higher labour slack.higher labour slack.

Employment InsecurityEmployment Insecurity is high and rising, is high and rising, with growing proportions of those in the with growing proportions of those in the labour force having insecure employment labour force having insecure employment statuses and with more workers lacking statuses and with more workers lacking employment protection. employment protection.

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Discerned ResultsDiscerned Results Work InsecurityWork Insecurity has become greater, due to has become greater, due to

more people being in work statuses without more people being in work statuses without coverage by protective institutions and coverage by protective institutions and regulations. regulations.

Job InsecurityJob Insecurity has worsened, with more has worsened, with more workers having to switch jobs and learn new workers having to switch jobs and learn new tricks of working. tricks of working.

Skill Reproduction InsecuritySkill Reproduction Insecurity is considerable is considerable with flexibility, in part because skills become with flexibility, in part because skills become obsolescent more quickly and because few obsolescent more quickly and because few workers are receiving career skills.workers are receiving career skills.