Europe week: Poland and temporary agency workers

Since joining the European Union, Poland’s employment market and its workers have been in the spotlight regularly – although mainly due to Poles moving out of the county to find work.

Poland’s current levels of unemployment is at a five-year high, at 13% and the Eurozone crisis has led to a slow-down in growth – despite strong export demands from neighbouring Germany.

According to a recent report in The Economist: “More reform would help. The labour-participation rate is low. Big firms suffer a workplace curse: it is normal to call in sick on Monday and come back on Friday because of a slight cold. Fraudulent incapacity claims are endemic. Doctors are complicit. Small businesses waste thousands of hours completing forms, visiting state offices and paying expensive lawyers and accountants.”

A survey at the start of 2012 revealed that 70% of companies in Poland are planning to increase their headcount over the next year. Encouragingly many said they would be looking to employ temporary agency workers, contractors and the self -employed, rather than permanent staff. This gives Polish businesses much greater flexibility to deal with peaks and troughs in the European economy.

However, it’s a different story for those looking for agency work outside the country. Last month a Dutch news agency, NOS, claimed that Polish temporary agency workers lured to the Netherlands often work much less than their recruitment firms promise. According to the report they are known as ‘stand-by Polish’ as they are drawn into the country on assurance of regular work but are often only employed for a few hours a week.

Although strong, the temporary workforce market in the country is not without controversy; in January strikes took place over alleged ‘shady practices’ by a pharmaceutical company. Workers were angry that they are hired on fixed, long-term contracts instead of permanently so that the company could avoid the associated benefits.

Europe Week: Spain and temporary agency workers

Last month unemployment in Spain hit a record high. Official figures show the amount of people out of work in the country hit 5.64 million – a rate of almost 25%.

The country has the highest unemployment rate in the EU and in the first three months of the year 365,900 people lost their jobs. However, a separate report noted that 90% of employment contracts signed are now temporary ones, equating to a strong demand for temporary agency workers.

Many of those that are working as temps are “clueless” about their contracts though. According to the country’s National Statistics Institute about 1.78million temporary workers are unsure off how long their contracts will actually last. Leaving a large amount of very vulnerable workers.

The survey found that the majority know their contract is due to exceed one month, but are unable to say when their contract will be terminated. Some had no idea their were contracted for less than a month and others knew nothing in relation to the length of their contract. This leaves workers open to exploitation and also gives a vastly negative assumption of the market.

Spanish labour reforms earlier this year caused tension in the jobs market, with many workers striking and threatening to go abroad to find work. Changes have been made regarding employment terminations, redundancies and collective dismissals, aimed at making the labour market more flexible. But, the President of Adecco in Spain doesn’t think it is enough for temporary agency workers…

He believes that the reforms are “good” but that the Government still needs to improve the management of temporary workers, who are “chained” to different companies. He also wants temps to be given more training – “We must understand that the way one worked 30 years ago is no longer useful.” This corroborates the figures that show demand for highly skilled workers in the country is significant.

Europe week: Germany and temporary agency workers

Germany is being praised for playing a large part in the Eurozone avoiding recession today with stronger-than-expected growth. The country has been one of the better countries in recovery from the economic crisis of the last four years; however, temporary agency labour is a hotly contested topic in the country and has been the cause of a number of recent political clashes.

Despite record unemployment levels in the Eurozone, the jobless rate in Germany is remaining stable. In fact, in the final quarter of 2011 the employment rate was at a 20-year high. In February this year there were just 750,000 temps in the country; despite this the CEO of Adecco has claimed that temporary agency workers in the country could double by 2020.

Problems for the contingent market in Germany are ever-present and range from issues at ground level, right up to confliction politically…

Employment agencies and unions sat down in February this year to debate wages in the electrical and metal sector. Although the country has introduced a minimum wage for temporary agency workers, many believe they are still grossly underpaid. The debate failed to reach a conclusion and has since happened again, still resulting in no agreement.

The introduction of that minimum wage for temps is said to have increased illegal employment levels, according to the Institute for Applied Economic Research (IAW). They claim the rule has increased the percentage of illegal employment as “it makes regular employment more expensive.”

Onlookers have regularly criticised the market over the last six months: In March the German Labour Minister Ursula von der Leyen strongly criticised malpractices in the temporary staffing industry. She said that temporary work “creates flexibility in the short term… but it should not lower wages in the long term.” In the same month the opposition party branded temporary workers as “2nd class employees”.

It’s a difficult time for temporary agency workers in Germany and no doubt today’s news of strong GDP figures in the country will promote yet more growth and jobs. Whether they will be temporary positions is yet to be seen.

You may also be interested in our blog “What can the UK learn from the German temp shortage?”

Europe week: France and temporary agency workers

The use of temporary agency workers in France has declined every month this year, following a 3.7% slump in Q4 and overall employment in France close to a record 10%. As the third largest employer of temporary agency workers in the EU, behind the UK and Germany, this is a worrying trend. Over the next year we’ll start to see the impact of the recent elections and the first shift to the left in 20 years.

Business leaders are likely to remain cautious during a period of political transition, so the figures may take some time to increase again; although a recent survey has found that French employers are planning to increase recruitment in 2012. The latest Labour Requirements Survey forecasts a 4.3% rise in employment over the coming months.

Recent proposals could make temporary agency workers more appealing to employers. Temps in some areas of the county are now eligible for a new coaching scheme managed by the public employment services, Pôle emploi. Initially launched last year, the scheme was aimed at those finishing a fixed term contract. Now, the scheme has been rolled out across 28 areas and will be offered to any temps whose assignments end.

In contrast, a case to likely to make temporary agency workers less appealing – A temp went on hunger strike outside a staffing firm earlier this year, in protest at the compensation he received for an accident 11 years ago. The man was working on a construction site when he fell 10, suffering head trauma and injuries to his wrist which has made it difficult to find work since. Despite receiving €17,500 compensation he claims he should have received more and the staffing firm which had hired him should have provided health and safety material, such as a helmet.

Similarly to the UK, and indeed the rest of Europe, France is seeing a difficult transition out of economic difficulties The implementation of EU rules such as the Agency Workers Directives has put some employers off hiring temps, however it is still clear that a contingent workforce is a necessity.