Capturing Flexibility and Insecurity Through Statistics Azfar Khan, ILO Socio-Economic Security Programme Instruments 1.
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Capturing Flexibility and Insecurity Through Statistics Azfar Khan, ILO Socio-Economic Security Programme Instruments 1. Enterprise Labour Flexibility and Security Surveys (ELFS) Establishment level 2. People Security Surveys (PSS) 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 more turnover of firms, more use of subcontracting and production chains, and a tendency to contract the employment function; 2. Numerical flexibility more use of external labour, such as contract workers, outworkers, homeworkers, agency labour, temporary workers, and teleworkers; 3. Functional flexibility greater change in work tasks, job rotation, and skill; 7 Perceived Considerations 4. Working time flexibility more continuous working, flexible hours, etc.; 5. Wage system flexibility a shift from fixed to flexible wages, monetization of remuneration, greater use of bonuses, etc.; 6. Labour force flexibility 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 Regular/casual employment – Contract labour – Own account worker Primary or secondary activity 10 Measuring Social Income SI = W + EB + SB + PB + CB where W: EB: SB: PB: CB: the money wage and/or money income received from different types of economic activities the total value of benefits provided by the enterprise as non-wage benefits and insurance type supports 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 total value of benefits accruing from private income, either through investments, ownership of assets and privately contracted social protection 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 Monetary Non-monetary Type, change Entitlement Benefits Form % 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 Albania Argentina Azerbaijan Bangladesh Brazil Bulgaria Chile China Ethiopia Georgia Ghana Hungary India Indonesia ELFS PSS ELFS PSS Kazakhstan Kyrgyzia Malaysia Mexico Moldova Pakistan Philippines Russia Slovakia South Africa Tanzania Thailand Ukraine Total 24 16 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