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Opinion The future of Irish jobs looks precarious

‘If and when’ contracts and other insecure forms of employment are becoming the norm in some industries, we need regulation to make all work decent, writes Marie Sherlock.

PRECARIOUS WORK IN Ireland is not new.

Since big Jim Larkin organised workers strikes and founded the Irish Transport and General Workers’ Union (ITGWU) in 1909, precarious work has been an almost constant feature of the Irish labour market. 

Casual labour on the docks in Dublin since the turn of the 20th century and agricultural labourers working across thousands of Irish farms are the predecessors of the fixed term workers who emerged in the 1990s.

In the early 2000s workplace innovations saw the development of the temporary agency worker and more recently we have seen a growing number of workers across many industries employed on ‘if and when’ contracts.

Each time, the union movement has responded by organising workers in those sectors and in latter years ensuring that legislative protections are put in place to create a level playing field between permanent and insecure workers.

Now we face a new set of challenges.

Technology Transforming Work

Technology is transforming how most of us work. Increasing automation and the digitalisation of production are transforming how firms produce. The emergence of digital platform companies is transforming how companies are organised.

With regard to the impact on job quality from all of these innovations, the most obvious concerns lie with the emergence of digital platforms and so-called ‘crowdsourcing’. 

‘Gig work’ has always existed in sectors such as the arts and media. However, the growth of digital platforms has meant that this work, also known as ‘crowd employment’ is now becoming a more common feature in conventional sectors.

In their review of new forms of work, Eurofound highlight that this work can encompass anything from food delivery, transport, personal services and desk-based work such as graphic design, marketing and website management.

In how they are organised, digital platform companies are radically altering how firms recruit, manage and retain staff.

They depend on highly automated digital processes to connect their services with their customer. These services are remotely provided by workers whose only tool is typically their computer or digital device and a pool of workers usually compete for this work.

The (almost) zero marginal cost of taking on workers means that firms can scale up or scale down in a way that is unrecognisable to almost all conventional firms who directly employ their workers.

Is it Prevalent in Ireland?

The truth is that we don’t know.

Some companies like Uber are precluded from operating here due to tight regulation as to who can provide taxi services. But walk around Dublin and you’ll see a new breed of couriers on bikes – this time delivering meals.

There is a less obvious but just as significant group of platform workers operating out of their homes or in the growing stock of short-term rental offices.

One potential indicator is the emergence of serviced office companies here in Ireland. Although not exclusively aimed at gig workers, serviced office companies play a key role in the gig economy by renting out ‘hot desks’ and temporary office space to workers on an hourly, daily or weekly basis.

In Dublin alone, the largest real estate brokers are reporting huge growth in this area in a very short period. By the end of 2018, it is expected that serviced office space will have mushroomed to over 20,000 square meters in the Dublin area- that’s enough space for between 4,000 and 7,000 gig workers.

Some people see platform work as a great innovation for micro-entrepreneurs.

However, a 2015 ILO survey of crowd workers on Amazon’s Mechanical Turk platform and the Crowdflower platform presents a very different picture.

They found that for 38% of US-based respondents, crowd working was the main source of income with an average of 22 hours work per week, earning 77% or less of the federal wage and that they spent 18 minutes seeking out work – for every hour worked.

Put another way, these workers spend almost a quarter of their working week doing unpaid work in order to generate paid work, which also happens to be extremely low paid.

But digital workers are a small minority of all workers and precarious employment is growing across industry. 

Estimates based on the CSO labour force survey found that in 2017 some 9% of all plant and processing jobs were in temporary contracts, up from 5% in 2007.  Those working in education have seen a rise in the numbers on fixed-term contracts now one in seven people in that sector is not on a permanent, secure contract.

On the ground, SIPTU members report that in hospitality and manufacturing, temporary work is on the increase while in construction, our members tell us that there has been a dramatic reduction in direct employment.

Instead, the bulk of general operative work in construction is now  via temporary work agencies.

Future Challenges

Looking ahead, a key challenge to decent work may well emerge with the increased demand for care sector workers over future decades.

This will necessitate significant recruitment and from SIPTU’s detailed knowledge of the sector, a lot of private sector care work remains precarious with part-time or variable hours and low pay.

According to the International Labour Organisation, which is tasked with setting international labour standards and the promotion of decent work, the goal must not be to make all work standard, but rather to make all work decent.

That is why SIPTU and ICTU are pushing politicians to ensure we get the Employment Miscellaneous Provisions Bill passed through the Oireachtas.

It sets a threshold of decency for new workers in being able to access a contract of employment within the first five days. 

The proposed legislation would effectively eliminate ‘zero hour’ contracts for almost all types of work (with a number of exceptions) as a wage floor is set below which the employee’s wages cannot drop, irrespective of hours actually worked.

Similarly for ‘if and when’ employees whose hours can be above or below their contracted hours, a wage floor would be put in place.

Collective bargaining is the only real tool to improve worker’s living standards. Many SIPTU members have found themselves on permanent contracts but working variable hours in sectors such as distribution, aviation or health or working in temporary ill-defined lecturing roles in education.

It was only when workers came together as SIPTU members and made their case collectively that they were able to achieve higher levels of guaranteed paid hours or improved employment status as full time, permanent workers.

In the world of digital platforms, the challenge to organising workers is enormous.

European Solutions

The German union IG Metall has led the way by agreeing to a crowdsourcing code of conduct with eight German-based digital platform companies, while Delivery Hero, a food delivery service has signed an agreement with EFFAT- the European confederation of unions covering food, agriculture and tourism.

Likewise in Austria, a works council has been established in the Foodora food delivery company.

While in Denmark, the 3F union entered into a collective agreement with digital platform company; Hilfr.dk which provides private cleaning services. The agreement claimed to be the world’s first, covers minimum wages, sick pay, holiday pay and pensions.

For trade unions here in Ireland, our challenge is to overcome worker fear and employer hostility and increase our membership where precariousness is greatest.

We know that for workers the best protection against precariousness is through collective bargaining and the security of having their terms and conditions negotiated and enforced.

Marie Sherlock is an economist with SIPTU

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31 Comments
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    Mute Stephen Kearon
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    Jan 4th 2019, 7:39 AM

    SIPTU economist? Surely a contradiction in terms

    207
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    Mute Sean Conway
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    Jan 4th 2019, 8:11 AM

    @Stephen Kearon: They are the peoples economist. as tony benn once said. ‘every generation has to fight the fight all over again. because capitalism keep changing the rules to suit themselves.

    129
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    Mute Chin Feeyin
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    Jan 4th 2019, 8:47 AM

    @Stephen Kearon: can The Journal become any more left wing?

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    Mute Mark Wallace
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    Jan 4th 2019, 9:41 AM

    @Chin Feeyin: I’m confused. Is the journal left wing or is it a right wing government mouthpiece as all the shinners on here call it? It can’t be both, so maybe, just maybe it actually sits somewhere in the middle (like the majority of people).

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    Mute dick daatardly
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    Jan 4th 2019, 9:25 AM

    The construction industry is up and down.one month you have a job the next your told your not needed.most construction companies don’t bother have employees anymore.a lot of people including labourers are either in through an agency that pays pittance or other people on RCT self employment.that way companies can get you or get rid of you as quickly,don’t have to pay your entitlements as in pension or holiday pay.the whole thing stinks and the revenue down to the trade unions turn a blind eye to it.no wonder a lot of tradesmen have decided to go work in factories over the years as your treated a lot better with entitlements

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    Mute Gerard Heery
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    Jan 4th 2019, 9:39 AM

    @dick daatardly: it’s like the kilburn rd London in the olden days if the van turned up you went to work if it didn’t you went home

    70
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    Mute Fr. Fintan Stack
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    Jan 4th 2019, 10:18 AM

    I’m sure you’ll get the “No one is forcing you to work there” brigade on here defending the type of employment contracts we see these days. I accept certain flexible types of contracts suit certain people. But by accepting these contracts as the norm we are only encouraging the race to the bottom.

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    Mute Flippermac
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    Jan 4th 2019, 7:44 AM

    agencys in in the construction sector
    are pure rip off

    98
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    Mute Ross Fehily
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    Jan 4th 2019, 7:31 AM

    Cpl are an example of crookery. Flexsource really treat you as dirt.

    103
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    Mute genejeanie
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    Jan 4th 2019, 8:01 AM

    And today is fatcat friday

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    Mute Marc Power
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    Jan 4th 2019, 1:31 PM

    When I was a kid we dreamed of a future when new technologies freed people to better themselves, spend more quality time with loved ones and friends, volunteer to give back to society and to enjoy life in general. What did we end up with? Precarious work places where employers use tech to spy on employees . Zero hour contracts. Trickle up economics and obscenely wealthy people like zucherberg, bezos and many other greedy individuals. Problem is capitalism never changed to allow workers to benefit from the tech revolution. Now slavery in back in another form

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    Mute Gulliver Foyle
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    Jan 4th 2019, 4:16 PM

    @Marc Power: and yet, the country is earning billions from taxes and or poverty rates are tiny (compared to when unions were relevant). if anyone compares agile working hours at over minimum wage with slavery, then they didn’t really get slavery. but you have time to go to the many public libraries, using public transport, to spend all your not working hours reading about it. just like slaves used to be able to.

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    Mute Robert Conneely
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    Jan 4th 2019, 10:13 AM

    It’s worse in the airline and maritime industry. Your contract is held in Singapore/hong kong on a zero hour contract.
    Main offices are in Western Europe but they can do what they want and don’t need to pay you your entitlements.

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    Mute orl
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    Jan 4th 2019, 11:09 AM

    Maria Sherlock must have filed the story in early December. The Employment (Miscellaneous Provisions) Bill is no longer going through the Oireachtas. The President signed it into law on Christmas Day.
    As well as prohibiting zero hours contracts in most circumstances and introducing bands of hours, it forces employers to give the five most essential terms of employment on fifth day of employment, an employer faces prosecution if it misrepresents what is on this Day 5 statement and the Bill enhances penalisation provisions. It’s important legislation.

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    Mute Vocal Outrage
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    Jan 4th 2019, 1:42 PM

    @orl: you may want to check your sources. As of 28 Dec it still hadn’t signed, but had gone for signature, and doesn’t come into force until March 2019
    http://www.mondaq.com/ireland/x/767270/employee+rights+labour+relations/The+Employment+Miscellaneous+Provisions+Bill+2017+The+Bill+Has+Been+Passed+By+The+Houses+Of+The+Oireachtas

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    Mute orl
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    Jan 4th 2019, 9:38 PM

    @Vocal Outrage: @Vocal Outrage: My first boss gave me a great bit of advice. Always go to primary sources: https://president.ie/en/media-library/news-releases/president-signs-employment-miscellaneous-provisions-bill-2017-into-law
    The President signed it into law on Christmas Day. I like the symbolism of it – a nod to his Labour roots. It will commence in March of this year but enactment occurs when the President signed it.

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    Mute Denis McClean
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    Jan 4th 2019, 12:54 PM

    The requirement to eat at least one solid meal a day, preferably under a roof, has always presented unscrupulous employers with an opportunity to offer just enough to stave off starvation in the name of free market competition. FFG neo-liberal agenda of the last ten years has cemented the extremely unsavoury employment practices referenced above, considering them the new ‘normal’. They are now so ingrained that rowing back on them will only be done under pressure and piecemeal. This will be the job for the next REAL government.

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    Mute joe
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    Jan 4th 2019, 9:54 AM

    Did she ever pause to think that maybe this type of work suits the people doing it? I feel like working today so I will. I am in college and have odd availability but I want to work in my time off etc. This is the modern way of working. A lot of people don’t want a 9-5.

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    Mute Flippermac
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    Jan 4th 2019, 10:13 AM

    @joe: you must own or run a agency
    who in there right mind would like to sit by the phone waiting on a days work

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    Mute Vocal Outrage
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    Jan 4th 2019, 1:36 PM

    @joe: might suit a student but not really viable as a full time scenario

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    Mute michelle murphy
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    Jan 4th 2019, 4:22 PM

    @joe: I am a Social Care Worker and have worked for Agencies in the past. I have rarely (if ever) worked with anybody who enjoyed or wanted to ‘wait for a call’, myself included.

    11
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    Mute ForeverFeel1ng
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    Jan 4th 2019, 8:27 PM

    @Flippermac: Thing is, you don’t ‘wait for a call’. Demand for work is higher than supply, you just log on, accept a job, work it and stop when you’re finished. Can take on as much work as you want.

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    Mute john s
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    Jan 4th 2019, 10:17 AM

    It is all about risk and reward. The vast majority of the workforce is in the sme sector. If the business fails the owner is left with no income and probably debt that follows them. Unions drive companies out of business.

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    Mute Bobbybrownshoes
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    Jan 4th 2019, 1:59 PM

    @john s: no they don’t there’s articles out there with facts in that state otherwise. Bad owners that dont know how to manage a company drive thenselves out of business

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    Mute john s
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    Jan 4th 2019, 5:49 PM

    @Bobbybrownshoes: greedy unions looking for pay rises because a company makes profit . But when thing go the other way employer’s are expected to suck it up. If u every had to deal with a union u would see them differently

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    Mute TamuMassif2019
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    Jan 4th 2019, 11:14 PM

    There is a global economic crash coming, soon. Jobs will crash as well as the Euro, then what?

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    Mute Keith Mac Suibhne
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    Jan 4th 2019, 9:07 PM

    Not news to me, my job has always been precarious, I’m a tightrope walker.

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    Mute ForeverFeel1ng
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    Jan 4th 2019, 8:33 PM

    Had a very interesting chat with an American Uber driver once. He talked about how much security working on Uber gave him. He knew that people would always need rides so could pick and choose when to work. For one month he would work 10 hour days 7 days a week, taking every fare he could and then take the next 2 months off and go visit his kids in California.

    Old ways of working don’t work with new ways of life. People want security AND flexibility nowadays. We shouldn’t legislate ourselves back into the past.

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    Mute Colum McCaffery
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    Jan 4th 2019, 10:18 PM

    The article tends to conflate two distinct but related problems: i) precarious work and ii) low-skill work. Some precarious work is highly skilled, even expert, and done by people with a great deal more freedom than low skilled workers. Many leftists address the problem of work in the 21st century by looking only to improve the pay and conditions of those in work. They ignore the larger change wrought by technology: https://colummccaffery.wordpress.com/2017/12/17/full-employment-in-this-century-will-be-different-as-work-befitting-educated-skilled-workers-grows-scarce/

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    Mute orl
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    Jan 6th 2019, 8:45 PM

    @Colum McCaffery: very interesting article. Thanks.

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