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Liberalisation of public services: Boosting precarious employment in Europe?. Jörg Flecker & Christoph Hermann , FORBA Vienna Work, Employment and Society Conference 2010, Brighton. Public service liberalisation and precarious employment. - PowerPoint PPT Presentation
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Funded under the European Commission’s FP6 (CIT5-2006-028478)
Liberalisation of public services: Boosting precarious employment in Europe?
Jörg Flecker & Christoph Hermann, FORBA Vienna
Work, Employment and Society Conference 2010, Brighton
Funded under the European Commission’s FP6 (CIT5-2006-028478)
2
Competition, shareholder value restructuring and cost cutting
Fragmentation of bargaining systems
Non-standard work: ‚atypical‘ and ‚very atypical‘ jobs (Eurofound 2010)
Precarious: insecure work with low income and low levels of social protection (falling below societal standards) (ILO 1997, Dörre 2005, IAB 2010).
Public service liberalisation and precarious employment
Funded under the European Commission’s FP6 (CIT5-2006-028478)
3
3 year research project (2006-2009)
6 countries: AT, BE, GE, PO, SW, UK
4 sectors: Electricity
Postal services
Local public transport
health services (hospitals)
The PIQUE Project
Funded under the European Commission’s FP6 (CIT5-2006-028478)
4
Processes of liberalisation and privatisation, ownership and market structures, forms of regulation
Literature and data analysis on impacts on employment, industrial relations and productivity
Company case studies on company reactions and consequences for employment, productivity and quality
Representative survey on users‘ perspective
The PIQUE Project
Funded under the European Commission’s FP6 (CIT5-2006-028478)
5
Large variety of market structures
Shift towards highly competitive markets only in few sectors and countries
Concentration processes public monopolies are replaced by private oligopolies
Move to private ownership stronger than towards competitive markets
MARKET AND OWNERSHIP STRUCTURES
Funded under the European Commission’s FP6 (CIT5-2006-028478)
6Evolution towards more competitive market structures
(2006)
Austria Belgium Germany Poland Sweden UK
Postal services:letter and direct mail market
Limited Limited Rather limited (fully open from 2008 onwards)
Very limited
Moderate Rather limited
Electricity Limited Very limited
Limited (abolition of regional monopolies but concentration of main producers)
Moderate
Moderate (high share of spot-market trading)
Strong in generation; moderate in supply
Local public transport
Limited Very limited Rather limited Limited
Strong but decreasing because of more market concentration
Strong but decreasing because of more market concentration
Hospitals Limited Limited Moderate Limited Very limited Very limited
Funded under the European Commission’s FP6 (CIT5-2006-028478)
7
Evolution towards private ownership (2006)
Austria Belgium Germany Poland Sweden UK
Postal services (letter market)
Predominantly public **
Predominantly public **
Predominantly private
Predominantly public
Predominantly public
Predominantly public
Substantial increase
Substantial increase
Strong increase
Marginal increase
Limited increase
Limited increase
Electricity
Predominantly public
Predominantly private
Predominantly private
Predominantly public
Predominantly private
Predominantly private
Substantial increase
Moderate increase
Substantial increase (Eastern Germany)
Substantial increase
Substantial increase
Very strong increase
Local public transport
Predominantly public
Predominantly public
Predominantly public
Predominantly public
Predominantly private
Fully private
Limited increaseVery limited increase
Moderate increase
Limited increase
Strong increase
Very strong increase
Hospitals
Predominantly public*
Predominantly private*
Public equals private*
Predominantly public
Predominantly public
Predominantly public
Limited increaseModerate increase
Strong increase
Limited increase
Very limited increase
Limited increase
Funded under the European Commission’s FP6 (CIT5-2006-028478)
8
From public to private law companies
Mergers and acquisitions
Private and foreign ownership
Subsidiaries and outsourcing
Internationalisation and diversification
Cost-cutting
COMPANY REACTIONS – Major strategies
Funded under the European Commission’s FP6 (CIT5-2006-028478)
9
Reorganisation and new technology
Reduction in employment
Intensification of work
Payment of lower wages
Non-standard employment
COMPANY REACTIONS – Cost cutting
Funded under the European Commission’s FP6 (CIT5-2006-028478)
10
EMPLOYMENT
-40
-30
-20
-10
0
10
20
30
40
Electricity Post LPT Health
%
Funded under the European Commission’s FP6 (CIT5-2006-028478)
11
NON-STANDARD EMPLOYMENT
Electricity Increase in part-time (except P), temporary workers (B)
Postal Services Increase in part-time (G, B, UK, A), fixed-term jobs, marginal part-time (Germany), self-employment (G, A), low wage sector (G, A)
Local Public Transport
Increase in part-time (G, A, B), fixed-term employment (P, UK)
Hospitals Increase in part-time (A, B, G), decrease in part-time (UK), self-employment (A, UK, G, P)
Funded under the European Commission’s FP6 (CIT5-2006-028478)
12
EMPLOYMENT
0
10
20
30
40
50
60
70
German Post AG Competitors Total
Full-time Part-time Marginal part-time
%
Funded under the European Commission’s FP6 (CIT5-2006-028478)
13
Fragmentation of public sector employment system
Differences between ‘old’ and ‘new’ employees
Differences between incumbents and new competitors
Differences between parent companies, subsidiaries and outsourced services
Emergence of two-tier labour relations systems
Evasion of collective agreements through self-employment
INDUSTRIAL RELATIONS
Funded under the European Commission’s FP6 (CIT5-2006-028478)
14
Cost cutting employment cuts and non-standard employment
Non-standard employment: part-time, fixed-term, temporary, self-employment
Growing diversity of employment conditions (fragmented bargaining systems)
Country differences: more encompassing labour regulation in Sweden and Belgium
In most sectors/countries only some aspects of ‘precarisation’ apply
Widespread shift to precarious employment in postal services in Germany and Austria
Boosting precarious employment?
Funded under the European Commission’s FP6 (CIT5-2006-028478)
15
THE PIQUE CONSORTIUM
15
Forschungs- und Beratungsstelle Arbeitswelt,Vienna, Austria
Instituut voor de Overheid, K.U.Leuven, Belgium
Wirtschaft- und Sozial-wissenschaftliches Institut (WSI) der Hans-Boeckler-Stiftung, Duesseldorf, Germany
Working Lives Research Institute, London Metropolitan University, UK
Instytut Socjologii, Universytet Warszawski, Poland
Hoger Instituut voor de Arbeid (HIVA), K.U. Leuven), Belgium
Institutionen för Arbetsvetenskap, Göteborgs Universitet, Sweden
www.pique.at