Low Paid Work in Ireland Tom Turner and Michelle O’Sullivan ICTU Seminar on Low Pay and Decent Work January 2013

Low pay & decent work Links between low pay & precarious work –Income –Quality –Security –Control

Objectives 1. Provide a picture of unionisation, collective agreements & pay 2. Structure of earnings of low paid work –overtime earnings, shift allowances and bonuses

Data 2007 & 2008 National Employment Surveys (NES) Matched employer-employee survey Grossed up to the employed labour force

Unionisation & CAs Covered by CANot covered by CA Union Members84%16% Non-members27%73% Total47%53%

Private Sector Unionisation Covered by CANot covered by CA Union members68%32 % Non-members19 %81 % Total30 %70 %

Earnings distribution All employeesPrivate sector Low paid20%26% Up to median earnings 30%34% Above median earnings 50%40%

Male/Female FemaleMale Low pay16%15% Up to median32%27% Above median55%40%

Low Pay & Union Membership Membership% Low Paid All employees % Low Paid Private sector Union members Non-members

Pensions Union Non-union (%) Health Insurance Union Non-union (%) Low paid Median Above median

Union Members No CA Non-members With CA Low paid27%22% Company sizeSmallerLarger Sector Industry; construction/ transport; health/education Industry; construction/ transport; finance

Low pay & Nationality IrishAsia/AfricaEast European EU Developed All employees 18%25%45%21% Private sector 24%31%45%25%

Low Pay & Nationality (private sector) IrishAsia/AfricaEast European EU Developed Union members 16%23%36%13% Non- members 27%33%47%26%

Number of JLC Workers

JLC Workers 1. Who are workers paid at JLC levels? 2. What is the structure of their earnings? –Economic crisis & High Court case –Arguments that JLC pay rates were “costing jobs” –Particular emphasis on overtime pay

Earnings range Median hourly earnings - €16.29 Low pay work - €10.86 or less JLC range - €8.23 to €9.68

Low pay earnings Low pay in Private sector % of private sector Less than €8.2310%2.5% JLC: €8.23-€9.6852%13% €9.69 – € %9.5% 100%25%

Who are paid at JLC levels? FemaleManual/routine work Less educatedNon-union Part-timeLow service Under 25 yearsHotels/restaurants; Wholesale/retail Non-Irish

Selected characteristics of workers covered by JLC rates

Distribution of overtime hours, earnings and shift allowance

Results summary Low levels of Sunday premiums, shift allowance and over-time payments Workers who work no overtime and receive no shift allowance or bonuses more likely to be covered by JLC rates Relatively high proportion of low paid workers; lower benefits Collective agreement coverage important

Commentary Similarities internationally regarding low paid sectors & employees But differences in shares of low paid work Influenced by: –Collective bargaining coverage –Union strategies on low pay –The MW increase formula –Models of ‘avoiding’ or ‘accepting’ low paid work (Bosch)