Private Employment Agencies and Social Responsibility: What role for which benefits? The European experience

Content of presentation Ciett profile, objectives and activities Eurociett social responsibility strategy –To ensure quality standards through a Code of Conduct –To promote PrEAs’ positive contribution to EU labour markets –To position PrEAs as active players to facilitate transitions in EU labour markets –To develop a fruitful social dialogue What is to be learned from Europe? –Structure –Public affairs and regulation –PR & Communications –Social dialogue

Content of presentation Ciett profile, objectives and activities Eurociett social responsibility strategy –To ensure quality standards through a Code of Conduct –To promote PrEAs’ positive contribution to EU labour markets –To position PrEAs as active players to facilitate transitions in EU labour markets –To develop a fruitful social dialogue What is to be learned from Europe? –Structure –Public affairs and regulation –PR & Communications –Social dialogue

Ciett at a glance Founded in 1967 The only international body representing the interests of agency work businesses, with a specific organisation for Europe: Eurociett Brings together 37 national federations of private employment agencies and 6 of the largest staffing companies worldwide Ciett Members comprised of private companies operating in the following HR activities: temporary agency work, recruitment, interim management, executive search, outplacement, training Ciett Members gather 75,000 branches and employ more than 8 million agency workers on a daily average (FTE)

A truly global confederation North America Canada Mexico USA South America Argentina Brazil Chile Ecuador Uruguay Europe Austria Belgium Bulgaria Czech Republic Denmark Estonia Finland France FYRoM Germany Greece Hungary Ireland Italy Luxembourg Netherlands Norway Poland Portugal Slovakia Spain Sweden Switzerland United Kingdom Asia/Pacific China Japan South Korea Africa Morocco South Africa

Ciett Board members President Joël Biller Vice-President Philippe Marcel Treasurer Herwig Muyldermans North America Richard Wahlquist Europe Annemarie Muntz Africa/Near East Simon Ridge South America Horacio de Martini Asia/Pacific Katzuhiko Kamata Kelly Services Bernard Tommasini Manpower Amanda Walsh USG People Leo Houwen Vedior Ton Mulders Randstad Fred van Haasteren Regional Representatives Corporate Members Chair of the Standing Committees Corporate Members Already represented National Federations François Roux Adecco Tristan d’Avezac

Ciett’s long term objectives To protect and promote the interests of Private Employment Agencies in order to enhance the long term growth of the industry To create the most suitable legal environment for the industry to operate in To improve the image of the industry and strengthen its representation To facilitate best practise sharing among its members and to promote quality standards within the staffing industry To seek greater recognition for the contribution that private employment agencies make to labour markets, especially in relation with 3 key aspects: –Employment creation –Higher participation and diversity in the labour market –Economic growth and tax revenues

Main past achievements 1.Legal recognition of the AW industry –U-turn position of the ILO: from strict prohibition (Convention n°96) to formal recognition in 1997 (Convention n°181) –Legal recognition of the industry in France (1972), Greece (1999), Denmark (1990), Finland (1993), Sweden (1993), The Netherlands (1998), Belgium (1987) 2.Definition of an international relevant regulatory standard for the AW industry -ILO Convention 181 (and Recommendation 188) provides the right balance between freedom to provide AW services and the need to define some agency workers’ working conditions 3.Liberalisation of the legislation on AW –Assistance to members in their negotiations with government: Japan, China –Filing of complaint with the European Commission in 1992 against Italy, Spain and Germany after which these countries gradually liberalised their agency work regulations: Spain (1994), Italy (1997+ Biagi amendment 2003), Germany ( , 2004) 4.Better visibility/recognition of the AW sector –By initiating strategic research on PrEAs’ contribution to the labour market (McKinsey in 2000, Bain in 2007) –By developing robust statistics and case studies to fight misconceptions about the reality of our industry

Content of presentation Ciett profile, objectives and activities Eurociett social responsibility strategy –To ensure quality standards through a Code of Conduct –To promote PrEAs’ positive contribution to EU labour markets –To position PrEAs as active players to facilitate transitions in EU labour markets –To develop a fruitful social dialogue What is to be learned from Europe? –Structure –Public affairs –PR & Communications –Social dialogue

10 The Agency Work market in Europe Rather small but significant sector –On EU average, accounts for 1.7% of total national labour force –Total number of Agency Workers = 3.3 million daily FTE (2006) –Around 30,000 branches from 20,000 different firms –Annual turnover of around €100 billion Different levels of market developments –Well-established markets: Belgium, France, Netherlands, UK –Recently deregulated markets: Italy, Spain, Germany –Emerging markets: countries from Central and Eastern Europe Sectoral distribution differs between countries –1/3 directed towards industry/manufacturing (AT, FR, NL, PT) –1/3 services (EL, ES, NO, SE, UK) and the remainder (BE, DK, FI, IT) more mixed –minority (DK, NL, NO, UK) have significant public sector usage Meets companies’ requirement for labour flexibility while protecting working conditions (balance between flexibility and work security)

Eurociett strategy regarding Social Responsibility It is key for Eurociett to position the PrEA industry as a socially responsible one Objectives: –To improve the image of the industry –To create a more friendly environment that will allow a sustainable growth for the industry –To rally our opponents to our cause Strategy: –To ensure quality standards through a Code of Conduct and relevant regulation –To ensure that the economic and social positive role PrEAs play in the labour market is acknowledged –To position PrEAs as active players to facilitate transitions in EU labour markets –To develop a fruitful social dialogue

To ensure quality standards through a Code of Conduct and relevant regulation Because of the growing importance of PrEAs and the need for ensuring quality standards, Eurociett has established its own Code of Conduct All Eurociett members have to comply with 10 common agreed principles described in the Code of Conduct Main principles include: –Respect for laws –Respect for transparency of terms of engagement –Respect for the workers’ rights (freedom of association, no replacement of strikers…) –Respect for free-of-charge services to jobseekers –Respect for safety at work These common agreed principles are complemented by a commitment to key European employment issues, stressing the social responsibilities of Eurociett members towards a more efficient labour market

13 To ensure that PrEAs’ positive contribution to labour markets is acknowledged PrEAs contribute to a more efficient labour market, as they: –Provide work to job-seekers and contribute to reducing unemployment –Help to create jobs that would not exist otherwise –Act as a stepping-stone to permanent employment –Improve labour market fluidity –Enhance workers’ employability –Play a key role in Active Labour Market Policies by putting more people at work and by cooperating with Public Employment Services –Increase the diversity of the workforce However, this positive economic and social role is not always acknowledged by our key stakeholders (especially policy makers and trade unions) although it is a contribution to social responsibility: –PrEAs are private operators but part of their activities can be seen as of general interest (reducing unemployment, fighting illegal work, helping disadvantage people) –PrEAs contribute to economic growth and tax revenues while costing nothing to governments By putting PrEAs reduce the unemployment allowances paid by States while increasing public incomes through the social contributions paid by these agency workers

14 To position PrEAs as active players to facilitate transitions in EU labour markets From unemployment to employment Between 2 jobs From education to work Between private/family life and work Role of Temporary Agency Work Help ‘outsiders’ to enter the labour market The higher the TAW penetration rate, the lower the long-term unemployment Be a stepping stone to find a permanent contract Enhance workers’ employability through job assignments and vocational training Gain experience to prepare entry to the labour market Help students to work while studying (apprentice- ship) Match a professional activity with aspiration to a flexible way of life or family constraints

To develop a fruitful social dialogue In most European countries, trade unions have accepted TAW but are still rather negative about this form of flexible work In 2000, Eurociett decied to enter into a European Social Dialogue on temporary agency work in order to: –Develop a better understanding of the reality of our industry vis-à-vis the trade unions –Improve the image of the industry (being seen as a socially responsible industry) –Promote sectoral social dialogue at national level Since 2000, several initiatives have been carried out: –Joint-declarations (on the Agency Work Directive, on Flexicurity) –Organisation of roundtables to promote national sectoral social dialogue (Poland, Hungary) –Joint research on TAW regulation in Europe –Exchange of best practices (e.g. safety at work, diversity in the workforce, work migration) As a result, trade unions have a clearer image of our industry; respect and trust have improved between workers and employers –The 2008 work programme illustrates the variety and interest of topics to be addressed (see next slide)

I – Labour market policies Supporting toolResearch to be carry out Flexicurity New joint declaration on ALMPs Work migration Joint DeclarationObservatory on Work Migration Training Joint Project (if grant from Commission) Promotion of national social dialogue Roundtable in Romania, Bulgaria or Turkey Eurociett Social Dialogue work programme for 2008 II – TAW regulation Supporting toolResearch to be carry out Freedom to contract Legal contracts offered by TWAs in EU Posting of Workers Directive Joint Declaration on a better implementation ILO Convention 181 Joint Declaration Decent work, non discrimination and equal treatment (including CLAs) Dublin Foundation survey update III – TAW quality standards Supporting toolResearch to be carry out Normalisation of « Recruitment Services » Feasability survey on quality standardisation Promotion of Code of Conduct Joint Declaration Corporate Social Responsibilities Joint DeclarationCSR best practices from Corporate Members

What is to be learned from Eurociett? Structure: –To organise regular events allowing to share information and best practices within your regional organisation (commonalities between countries are broader that you could expect) Public Affairs: –To build good relationship with your all key stakeholders: government, employers federation but also the most reluctant to our industry (trade unions, academics) –To call for appropriate regulation (to be adapted according to level of market development) –To get a clear picture of your strengths and weaknesses as an industry (image problem, regulation, agency workers’ working conditions?) Public Relations: –To position the PrEA industry as a key player to improve the functioning of labour markets (« Part of the solution rather than part of the problem ») –To collect data and case studies to illustrate best practices (« no figures, no existece! ») Social dialogue: –To try to educate trade unions by talking to them and carrying out common projects (research)