1. The role of Public Sector in the job quality of ancillary activities Albert Recio (QUIT – Universitat Autònoma de Barcelona) Alejandro Godino (QUIT – Universitat Autònoma de Barcelona) Sofia – 18/11/2012

2.  To explore the role of public sector in the advancement of job quality in low-wage sectors and workplaces in outsourced sectors  based on sectoral and case studies (developed under WALQING project) on Contract Catering and Office Cleaning, but also appliable to other sector cases. OBJECTIVES

3. The role of public sector (I) Obvious role: Determination of:  basic labour conditions,  collective bargaining framework and  union rights. Latent role: It is the main customer of ancillary activities in outsourced services.

4. The role of public sector (II) Active role of Public Administration as explanation in the expansion of outsourcing. Source: Fédération Européenne de la Restauration Collective Concédée (2009).

5. Main policies  Minimum wage implementation (considereded very low in Spanish context): 621 € per month  Collective bargaing model: Sectoral agreements cover to the whole of the workforce in each industry, despite they are notaffiliated to any union.

6. Wage average in cleaning sectors (2000 – 2007).

7.  Subrogation: when a company substitutes other in a work center, they have to maintain its staff. Guarantee of job stability and long term tenure.  Standardization of wage levels Salary of each proffessional category is the same at every firms No chance of downward by wage competition Crucial effects of collective bargaining

8. Public sector as customer  The price payd for outsourced services corresponds with the ceilling of wage agreements.  Particular demands:  Specifics hours of work  cleaning  Profesional recognition by qualification acknowledging.

9. A new conjuncture Economic crisis changes Government policies:  Budgetary cuts generates pressures to outsourced activities: Downward in prices and quantities.  Structural reforms

10. Aftermaths (I)  Activity reductions: cuts in cattering and cleaning related to service cloussures (hospitals) and social transfers.  Pressures to suppliers Increasing of part-timers(consequent reduction of wages wages) and work intensification.

11. Aftermaths (II)  Deterioration of collective bargaining: road from sectoral to company agreements.  Danger to loose subrogation clause (guarantee of stability).  Increasing of wage competition Exposure to vulnerability in low-wage sectors.