How Precarious Work Has Changed Perceptions and Understandings

How Precarious Work Has Changed Perceptions and Understandings of Labour Law Prof. César F. Rosado Marzán, Ph. D, JD Presentation for Conference: New Foundations of Labour Law in the Globalised Market Economy? Stockholm, Thursday 19 May – Friday 20 May 2016

What is “precarious”? • Webster’s Dictionary: – depending on the will or pleasure of another – dependent on uncertain premises – dependent on chance circumstances, unknown conditions, or uncertain developments – characterized by a lack of security or stability that threatens with danger

What is “precarious”? • Oxford Dictionary • 1. Esp. of a right, tenancy, etc. : – held or enjoyed by the favour of and at the pleasure of another person; – vulnerable to the will or decision of others….

What is “precarious”? • b. Dependent on chance or circumstance; uncertain; liable to fail; exposed to risk, hazardous; insecure, unstable.

What is “precarious”? • C. Subject to or fraught with physical danger or insecurity; at risk of falling, collapse, or similar accident; unsound, unsafe, rickety.

Precarious work Is: • “Employment that is uncertain, unpredictable and risky from the point of view of the worker. ” • (Kalleberg 2009)

ILO • Half of all global work is wage and salaried. • 45% of those are fulltime and permanent, and decreasing. • Only 1 in 4 working people in standard employment.

Evidence of precariousness Decline in attachment to employers Increase in long-term unemployment Growth in perceived job insecurity Growth in nonstandard work arrangements and contingent work, or “fissuring” • Increase in risk-shifting from employers to workers. • • Adapted from Kalleberg 2009: 6 -8, and Weil (2015)

Polanyi’s Double-Movement: Flexibility and Security Source: Kelleberg 2009

Responses in

Responses • “Flexicurity” – Generous income security – Active labor market – Continutiing vocational training

Responses • Increase the minimum wage (Fight for $15) • “Fair scheduling” • Expand joint-employer liabilities • Limit independent contracting • Affordable Care Act (Obama Care)

Responses • “Feeling the Bern” – Invest over US $ 1 trillion for direct job creation and training – Free public universities – Medicare for all (universal health care)

Responses • Minimum wage law • Intermediate “employee-like” category • Collective bargaining: – Qualification – Demography – Operate in new framework – Decentralization and derogations

France • Groupement d’employeurs. • Proposals to – flex hiring and firing – Enable derogation of some legal minima through collective bargaining and – Or even unilaterally by employers

France • Argument in favor of proposals: Will create incentives to increase regular employment, which is too risky and costly under current law (for employers)

Global Supply Chains • 20% of workers work in global supply chain. • More productive. • Earn as much as those not in chain. • Competition and short cycle impact contractual arrangements. Source: ILO (2015)

Global Supply Chains • ILO (2015): – Social dialogue – Active labor market policies (to offset losses in jobs) – Labor regulation and enforcement at bottom. – Fundamental rights ensured in entire chain.

Perceptions and Understandings of Labour Law: Some Conclusions • “Labour law” cannot do it alone. Should be complemented by: – “Social security” law; – Direct government employment; – “Active labor market” and publicly provided education; • Collective bargaining must be aided by direct government standards (minimum wages);

Perceptions and Understandings of Labour Law: Some Conclusions • Labor standards must cover workers in intermediate categories, but not necessarily all protections (Davidov 2005). • Labour law is the problem (? ) • Transnational dimension: Apply those lessons also to global chains.