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.

More EU regulation for temporary agency workers?

The EU Commission has said it wants to increase protection for temporary workers who are briefly posted abroad, putting yet more regulations in place in the contingent workforce arena.

The commission believes working conditions for temporary agency workers sent abroad often do not meet minimum standards and that posting workers in other countries is being used as a way to evade minimum social standards.

The Commission said that the plans are designed to eradicate the abuse and exploitation of employment rules and that there should be stricter controls in place for employment agencies to avert social dumping.

Employment, Social Affairs and Inclusion Commissioner, László Andor, said the proposals would clarify the rules on posted workers, and put practical safeguards in place against social dumping.

Over one million temporary workers are sent abroad each year with Germany, France and Belgium being the top destinations. It’s estimated that a quarter of these workers are in the construction industry, which raises question as to how further EU legislation could impact on the industries slow recovery.

Source: Staffing Industry Analysts