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The Precariat

some critical remarks

Jan Denys

Randstad Labour Market Seminar Brussels

April 26 2012

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General remarks

� Ambitious (global perspective)

� Relevant (dealing with important issues)

� Challenging

� Innovative (new concept of class)

� Bold

� Critical (for almost everybody,

unions included)

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General remark: (too) negative perspective

� Negative view on globalisation, labour market developments and labour in general

� The world is changing, change creates always fear, difficulties, insecurity but offers challenges, possibilities, creativity

� The focus is clearly on fear, insecurity and difficulties

� Because of that, a lot of opportunities of changes are missed or neglected (new world of work)

� Anglo-Saxon perspective

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(Almost) Everybody

But in each group ‘grinners’ and ‘groaners’

Who enters the Precariat?

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Who enters the Precariat?

Only one exception:

As long as he is not too fat or small …

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The Precariat is diffuse concept

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The Precariat is growing ?

Not confused by the facts:

‘The trend towards temporary labour

is strong’ (p. 34)

� Temporary work

1985 11,5

2000 12,2

2010 14,0

2000 2,4

2010 1,8

� Agency work

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The Precariat is growing ? (2)

� Own account workers

� What about part time work?

In majority of countries employee driven development.

2004 7,4

2010 8,0

1985 12,5

2000 17,5

2010 21,6

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The Precariat is growing ?

Working part time is mostly a preferred choice

Source: Bridging the Gap - Randstad

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The Precariat is growing after 2008?

‘The recession that followed gave firms an excuse

to rid themselves of ‘permanent’ employees and

to welcome more temps.’ (p.34)

� Temporary employment

2008 1,9

2010 1,6

2008 14,1

2009 13,4

� Agency work

The social value of labour

Jobs are often not

the road to Nirvana (p. 162)

Agree, but they are not only instrumental either

� Time structure

� Social contacts

� Part of collective goal (social integration)

� Status and identity

� Activity

Latent functions of labour

Domestic work has same inconveniences as paid work

� Dissatisfaction with content of the job

� Underqualification

� Routinisation

� Fragmentation

� Lack of autonomy

� Long hours

� Low status

Source: Oakley, The sociology of housework, 1974

Other kinds of work are overestimated

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Poor statistical evidence

� Average tenure in Belgium is 12,2 years (OECD 10).

� 11% has tenure of less than 1 year, 46 of more than 10 years (OECD is 14 and 38%).

In the 1960’s, a worker entering the labour market could have anticipated having four

employers by the time he retired. Now a typical worker can anticipate having nine employers

before reaching the age of 30 (p. 36)

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Poor statistical evidence (2)

A Gallup survey in Germany in 2009 found

that only 13 per cent of all employed

felt committed to their job. (p. 24)

� Commitment to working organisations in Flanders:

6,2 (on a scale of 10)

� ‘It’s important for me that I can do a contribution to the goal of this organisation’: 77,5 of respondents say YES.

Source: H.De Witte (2010) Werken in Vlaanderen, Acco

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Poor statistical evidence (3)

Recovery need

Low High

PleasureHigh 60,1% (pleasant) 27,9% (challenging)

Low 4,9% (boring) 7,1% (debilitating)

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The role of temporary work

• If temporary work is not chosen and dead end, then it can be a social problem

• Where is the fundamental segmentation on labour market?

� Between work and unemployment (insider/outsider)?

� Between unemployment/temporary work and ‘permanent’ work (dead end)?

Source: Federgon

Evolution of the work status of the temporary workers ’05 on the 6 count moments

Temporary work is in most cases a transition on the labour market

18,20% 14,80% 12,40% 9,50%2,50% 1,30%

28% 35% 41,30% 47,60%29,4%

61,40%

23,50%22,80%

21% 17,50% 18,40%11,70%

30,30% 27,40% 25,30% 25,40% 24,40% 24,40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

mei-06 nov-06 mei-07 nov-07 mei-08 nov-08

uitzendarbeid onbepaalde duur

ander contract type geen contract

temporary work indefinite contract

other types of contract no contract

54,7

61,4%

28% 35% 41,3% 47,6%

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The role of private employment services

• PRES play an important role in the shift to temporary labour (Standing)

• But very little attention is given to them (1 page)

• Total lack of analysis

• Sergio Ricca (ILO) described already in the nineties why PRES were important for the labour market

• Labour markets became too complex to be managed alone by public employment services

� Deserves more research

� Underestimates latent functions of labour

� A part of underclass will be disconnected of society

� Bad for social cohesion

The solution of Guy Standing: The Basic Income

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What about the other solution? Flexicurity!

� Mysterious absence of the flexicurity concept of European Commission.

� Flexicurity is, until now, the best concept to deal with the dilemma that society (workers and employers) needs both flexibility and security.

Flexibility keeps labour force participation at high

level and long term unemployment at low level,

it also generates underemployment and insecurity

(*p. 160)

* Source: The Global Employment Challenge by Ghose, Majid, Ernst, ILO, 2010

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Conclusion

� Case of ‘the emergence of the precariat’ is not convincing.

• Choice of data is too selective

• Interpretation of data and developments is debatable and sometimes just wrong

• Story was more important than facts

• Ambition is not fulfilled

� Another, more positive story: Free to work

Traditional Modern

Vision on the labour market

Closed Open

World perspective Company Labour market

Power play Uneven: in the advantage of the employer

More equal and also changing

Responsibility Employer Shared responsibility worker/employer

Emotion Negative, threat Positive, opportunities

Social protection Permanent contract, notice periods, closing fee

Mobility, employability

2 jobs

Security Job security Worksecurity

Basic characteristics Homogeneous Diversity

Traditional & modern view on labour market

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Thanks for listening!

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