Capturing Flexibility and Insecurity Through Statistics Azfar Khan

Capturing Flexibility and Insecurity Through Statistics Azfar Khan, ILO Socio-Economic Security Programme

Instruments 1. Enterprise Labour Flexibility and Security Surveys (ELFS) Ø Establishment level 2. People Security Surveys (PSS) Ø Individual level 2

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

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

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. 5

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: 6

Perceived Considerations 1. Organizational flexibility t more turnover of firms, more use of subcontracting and production chains, and a tendency to contract the employment function; 2. Numerical flexibility t more use of external labour, such as contract workers, outworkers, homeworkers, agency labour, temporary workers, and teleworkers; 3. Functional flexibility t greater change in work tasks, job rotation, and skill; 7

Perceived Considerations 4. Working time flexibility t more continuous working, flexible hours, etc. ; 5. Wage system flexibility t a shift from fixed to flexible wages, monetization of remuneration, greater use of bonuses, etc. ; 6. Labour force flexibility t 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. 8

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

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

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 11

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

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

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. ) 14

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 15

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

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

ELFS and PSS Carried Out 18

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. 19

Discerned Results § Work Insecurity has become greater, due to more people being in work statuses without coverage by protective institutions and regulations. § Job Insecurity has 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. 20