employers exploit agency work boom

Running Head: Employers exploit agency work boom

University of Liberal Arts Bangladesh

Date: 23 March, 2016


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Summary

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Question 1(a): In terms of the analysis developed in Chapter 4, what does this case study

suggest is happening to employment in the UK?

Answer:

The last decade has seen a growing interest in the notion of employee voice, both

from those seeking higher levels of organizational performance and from those desiring better

systems of employee representation. In public policy terms, the environment is more

sympathetic to trade unions, more animated by notions of employee rights, and supported by

new legal regulations (Dundon, Wilkinson, Marchington, & Ackers, 2004). The election of

New Labour in 1997, and their return in 2001, appears to mark another major turning point

for employment policy (Lucio & Stuart, 2004). While the current government remains

committed to labour flexibility, it has been prepared both to regulate independently on behalf

of employees and to commit the UK to European Social Policy; in particular the new EU

Directive for Employee Information and Consultation rights (Hall & Purcell, 2012). Until

1979, the pattern of employee voice in both Ireland and the UK followed broadly similar

pluralist-union centered trajectories. In the UK more direct and individualistic forms of voice

took precedence following the Thatcher assault on trade unions. In Ireland collective

bargaining, worker directors on the board of semi-state industries and joint consultation have

remained much more prominent. The collective spirit of employee representation in Ireland

has even been associated with the phenomenal rates of economic growth (Wilkinson,

Dundon, Marchington & Ackers, 2004). In the UK also, several studies appear to indicate a

positive relationship between voice andm organizational performances (Mattila & Patterson,

1997; Gollan, 2005; Guest & Peccei, 2001). However the relationship between participation

and performance has not gone unchallenged. In Ireland, (Brewster, WOOD & BROOKES,

2014) question the extent to which new forms of collaborative production have taken hold

and (D’Art & Turner, 2008) demonstrate a strong ‘them and us’ divide between management

and workers, despite the institutional support for employee participation. Similarly, drawing

on the Workplace Employee Relations Survey (WERS) series in the UK, (Bryson, Forth &

Millward, 2002) note that perceptions of ‘fair and independent voice’ seem to be related to

the presence of a recognized trade union and union representation on a formal joint

consultative committee.

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Question 1(b): What are the reasons for the increased use of temporary workers and what

does it indicate about the types of labour flexibility commonly sought by British employers?

Answer:

The use of temporary workers enhances labor flexibility for firms. Compared with

permanent (indefinite-term) employment arrangements, temporary (fixed term) employment

arrangements allow firms to use labor for a shorter period without being responsible for

workers’ benefits or the costs associated with hiring or firing. Firms draw temporary labor

from various channels—for instance, by hiring independent contractors and on call workers

and using workers from temporary help services (THS) agencies (Peck & Theodore, 2001).

The use of such temporary workers is growing rapidly. It has also spread across industries—

from manufacturing to services—and occupations, including construction workers, registered

nurses, and information technology technicians. Between January 1990 and January 2006,

THS employment in the U.S. more than doubled, growing from 1.2 million to 2.6 million

workers, while total nonfarm employment grew by only 26%. Empirical studies assessing to

what extent firms use temporary or permanent workers to accommodate fluctuating labor

requirements have been scarce. The data suitable to study such topics are limited, despite the

growing interest by researchers and governmental agencies in understanding the rapidly

increasing use of temporary workers. In particular, we know relatively little about the

characteristics of firms using temporary workers. This is mainly because many employment

data compiled by governmental agencies rely on payroll-based surveys, and temporary

workers are typically not included on the payrolls of client firms. Nevertheless, a few studies

exist. For example, using the W. E.Upjohn Institute for Employment Research’s survey in

1999, Houseman 5 finds that a substantial fraction of firms reported using Oregon–

Washington (panel B). On average, THS employment growth rates seem to lead permanent

employment in Portland, but such a relationship is weak in Colorado Springs. To examine

how such cross-city differences can be explained, (Reid, Guohui & Eppler, 2008) first

quantify the lead for each city by estimating a finite distributed lag model,11 using the BLS

city-level data available for 74 cities where the THS industry is large enough during their

study period. The estimated equations allow them to examine how permanent employment

growth evolves over a current and subsequent 12-month period in response to a unit increase

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in THS employment growth. They calculate a median lead, or the first time the cumulative

adjustments reach or exceed half of the total adjustments.

Question 1(c): In terms of the analysis developed in Chapter 5, does the increased use of

temporary workers indicate a planned approach to acquiring and utilizing labour and if so,

what type of planned approach?

Answer:

We discussed about the temporary workers indicate a planned approach to acquiring

and utilizing labour and if so, what type of planned approach is given bleow:

Decide What Need

Decide what type of employee need to hire, determine what that person will be doing on the

farm, and figure out how you’ll find the right candidate.

Step 1: Determine whether a temporary employee is needed: Sometimes a new employee is

urgently needed. Hiring a temporary worker is a good alternative to employing a less suitable

replacement under pressure. Written employment contracts for such fixed-term work may

help you avoid misunderstandings and possible litigation when the employee is laid off at the

conclusion of this work period. The best workers can be invited to return back for the next

season.

Step 2: Complete a job analysis, description, and specification: Successful employee

selection is dependent on a clear understanding of a job’s components. A job analysis is used

to identify job tasks and responsibilities. This may be accomplished by collecting information

about the position; by interviewing workers, supervisors, and other farm employers; and by

observing current employees.

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Step 3: Weight the job specification items: Weighting job duties can help the farm employer

assess the qualifications of competing candidates. Each skill, knowledge area, and ability is

rated according to its importance to the job.

Step 4: Determine the recruitment strategy: How many people apply partly depends on your

recruitment efforts, the type of job, labor market, pay, and the reputation of your farm. The

larger the applicant pool, the greater the chance of finding qualified applicants. Sources to

help you advertise the position include present employees, other farm employers, previous

applicants, trade journals, newspapers, vocational schools, universities, employment

agencies, and the radio. Additionally, an excellent source of potential candidates is persons

who come looking for work when you may not have any job openings.

Design the Selection Process

A well-designed selection process will yield information about a candidate’s skills and

weaknesses, enabling the farm employer to make an informed choice.

Step 1: Determine which selection tools to use: Applicant skills can be evaluated through

applications, interviews, tests, reference checks, letters of recommendation, and physicals.

Some selection tools are more effective than others, but a combination of tools is usually

best.

Step 2: Prepare questions and situations for written and practical tests, the interview, and

reference checks: At this point the farm employer converts important skill areas into specific

questions or activities for the application, interview, and tests. Results are used to assess a

candidate’s technical knowledge, general problem-solving ability, interest in the operation,

and other job-related attributes.

Step 3: Assign a sequence to hurdles: The farm employer can think of the selection process as

a series of hurdles that applicants must clear in order to obtain the job. Each hurdle eliminates

some applicants from contention. Examples of these may include written exams, reference

checks, and medical screenings. The sequence of these hurdles needs to be designed with

care.

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Note that, generally, the most expensive and time-consuming selection tools are used later in

the selection process.

Step 4: Provide a realistic job preview: Applicants who have a clear understanding of what

the job entails can make more informed decisions as to whether they want to apply.

Exchange Information with Applicants

Learn more about the applicants in your pool before you begin an extensive interview

process.

Step 1: Conduct a pre-interview (orientation day): Good communication during the

preliminary interview can minimize doubts about the job. Having a sort of informal pre-

interview, where applicants have a chance to ask questions about the job and learn more

about working conditions, is very effective.

Step 2: Review applicants’ bio data (applications and resumes): A properly designed

application will help you check applicants’ minimum skills as well as their employment

history.

Step 3: Conduct tests: Many types of tests can be used to measure an applicant’s

qualifications. They can be classified as power (depth of knowledge) versus speed

(performing time-sensitive tasks) tests, as well as written, oral, or practical tests. Tests can

measure knowledge, ability, skills, aptitude, attitudes, honesty, and personality.

Step 4: Conduct interviews: During the interview you have an opportunity to continue to

gauge an applicant’s leadership qualities and personality.

Step 5: Check references: Reference checking involves obtaining information about an

applicant from previous employers. Meeting references in person or on the phone is usually

more productive than asking them to respond in writing. Reference checks can supply

important information about personality and character, and may even provide some legal

protection.

Step 6: Conduct a final interview (if needed): Even after following the steps described above,

you may still have trouble making a decision. A final interview with the top two or three

candidates can help resolve the dilemma. This final interview could be held formally or be

part of another activity, such as dinner.

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Question 2: Debate the advantages and disadvantages of an increased use of temporary

workers from the point of view of employers, managers and workers.

Answer:

Here, we discussed about the advantages and disadvantages of an increased use of

temporary workers from the point of view of employers, managers and workers (Pfeffer,

1994).

A temporary job definitely offers some advantages to the job seeker:

It may be exactly the job the job seeker wants, with a time limit for the employment

commitment.

It provides an income stream while the "real" job search continues.

It fills a gap on the resume - a gap in experience needed for the next job or a gap in

the resume's employment history.

It may give the job seeker a chance to "test drive" a job, an employer, or an industry.

The job seeker has an opportunity to start their career migration to a new field.

Sometimes, it provides both income and benefits (health insurance, etc.)

Sometimes, it opens the door to a permanent job, often referred to as "temp-to-perm."

A temporary job definitely offers some disadvantages to the job seeker:

Temp jobs are, by definition, short term, usually less than a month. If you want a

longer job without making a full commitment to the employer as a "permanent"

employee, freelancing or contracting can be a very good option.

Many temps report feeling isolated and not well-respected by other employees. I'm

sure this varies by organization and "corporate culture," but it happens.

Most temps are not paid top dollar for what they do, unless they have a skill that is

quite scarce.

Depending on the agency, you may find that you have fewer benefits.

The site manager and other employees may not be particularly helpful when you are

in a learning mode.

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Question 3 (a): outlines your arguments against the Directive:

Answer:

The Directive on Temporary Agency Work (2008/104/EC) defines a general

framework applicable to the working conditions of temporary workers in the European

Union. The Directive aims to guarantee a minimum level of effective protection to temporary

workers and to contribute to the development of the temporary work sector as a flexible

option for employers and workers. It states that, the basic working and employment

conditions applicable to temporary agency workers should be at least those which would

apply to such workers if they were recruited by the user undertaking to occupy the same job.

The Directive is designed to ensure that workers employed through an employment agency

are given the same terms and conditions as comparable permanent employees doing the same

or similar work in the end-user company (Davies, 2010). What this means in practical terms

is that a company can take on an agency worker on a one week contract and that worker will

be entitled to the same conditions as their permanent comparatives. Here in this case study,

we also discussed about arguments against the directive is given below:

The Directive lays down the principle of non-discrimination, regarding the essential

conditions of work and of employment, between temporary workers and workers who are

recruited by the user company (Waas, 2003). The Directive ensures greater transparency and

increases confidence in the temporary work sector. It thus improves protection for the

workers concerned while giving greater flexibility to companies (Zappala, 2008). The

principle of equal treatment also applies to the protections and rights accorded to permanently

employ pregnant workers and permanently employed mothers who are breast-feeding

(Zappala, 2008). The same rights are to be accorded to their temporarily employed

counterparts. The Directive applies to the contracts or to the relations which connect a worker

with a temporary agency.

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The user company should keep temporary workers informed of any permanent vacancies.

Member States must ensure that any clauses preventing the conclusion of a contract of

employment or an employment relationship between the user undertaking and the temporary

worker are null and void or may be declared null and void (Breugel, Van Olffen & Olie,

2005).

Temporary workers should not be charged any recruitment fees. They should have equal

access to amenities and collective services at work. Member States should facilitate training

access for temporary workers.

Question 3 (b): explains why the CBI believes that temporary workers should have 18

months’ employment with an organization before qualifying for the same employment

benefits as comparable permanent workers in the organization.

Answer:

Temporary workers should have 18 months employment to an organization before

qualifying for the similar benefits and facilities that the permanent workers in the

organization enjoy because CBI believes temporary workers may change their employment

frequently for achieving better facilities as they have been free from contracts. Besides these

workers are employed on hourly basis, i.e. at 90 hours/week from Monday to Monday, and

then are laid off for a week. So legally, as the directive suggests, they don't fit in the specified

time span necessary for qualifying for added employment facilities. Moreover, temporary

workers are not supposed to be as dedicated as the permanent ones, as they can always look

for better opportunities unlike permanent workers who concentrate on getting promoted in the

same field rather than looking for another field to work (Bryson, Forth & Millward, 2002).

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Question 4: As a trade union official, prepare a statement that makes the case for ensuring

that temporary workers are employed on the same terms and conditions as permanent staff.

Answer:

Here we discussed about as a trade union official, prepare a statement that makes the

case for ensuring that temporary workers are employed on the same terms and conditions as

permanent staff is given below:

Membership and Potential Membership

The unions estimates of the proportion of members employed on part-time and the various

kinds of temporary contract. That most unions have a substantial minority of part-time

members and that in more than a third part-timers constitute at least 20 per cent of the

membership. These figures reflect the high incidence of part-time work in the UK economy

(Cully, 1999). The unions reporting the highest part-time membership are nearly all in the

service sector and have a majority female membership. They include the Alliance and

Leicester Group Union of Staff (ALGUS), the Chartered Society of Physiotherapy (CSP), the

Royal College of Midwives (RCM) and the Union of Shop, Distributive and Allied Workers

(USDAW). The exception is the majority male Musicians’ Union (MU), many of whose

members have a non-musical day job.

Recruitment Activity

If potential membership is growing amongst the part-time and contingent workforce, it

follows that unions should devote resources to their recruitment. This has been repeated

theme of the annual TUC conference: that union should take steps actively to recruit the

‘flexible’ workforce comprised of part-time and temporary workers. To ascertain if this is the

case, the survey asked if unions were using three dedicated methods of recruitment for these

workers: a special rate of subscription, tailored recruitment literature and a targeted campaign

in the last five year (Simms, Conley, Delbridge & Steward, 2002).

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Participation

A second theme in union policy with regard to part-time and temporary workers is that

systems of union government should be adjusted to facilitate their participation. To explore

this issue the survey asked if unions had national committee or conference dedicated to the

needs of each of the four groups of workers, and if there were specialist branches, full-time

officers and lay representatives (Simms, Conley, Delbridge & Steward, 2002). It also asked if

the union had ‘introduced special measures to make it easier for members of these groups to

participate in union activities, for example through scheduling meetings at different times’.

The part-time workers are particularly striking because they form a substantial minority

within many unions and the need to organize part-time workers has also been a particularly

prominent feature of both TUC and national union policy (Pfeffer, 1994).

Formal Policy

The unions reporting formal policy on part-time and temporary work. It indicates that

between a third and a fifth of unions have debated the condition of part-timers, fixed-term

and agency workers (but not freelances) at annual conference in the past five years. Smaller

percentages have submitted motions to the TUC and adopted a written charter or statement

setting out union policy. This evidence of rather limited policy development is perhaps

surprising because the TUC has been urging unions to priorities part-time work for more than

twenty years and has issued more recent advice on temporary and agency work (Pfeffer,

1994) . The fact that recent directives on part-time and temporary work have not elicited a

more general response from unions is also striking.

Union Services

Temporary workers, who have a high level of mobility within the labour market, may have a

particular need for union services (Osterman, & Burton, 2005). For this reason the survey

asked if unions offered special services to temporary and part-time workers. These included

consumer services, such as financial advice for those on fixed-term contracts, labour market

services, such as job vacancy information, education and training services, and union

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benefits, such as a stakeholder pension scheme. Trade unions are comprised of those

providing education and training to part-timers. The Return to Lear scheme offered by

UNISON has benefited many part-timers (Rainbird & Munro, 2003) and union learning

initiatives in several other unions have been used deliberately to improve access to education

and training for this group.

Collective Bargaining

The next set of questions concerned collective bargaining. Unions were asked if they had

taken four types of initiative to ensure that the needs of part-time and temporary workers

were addressed in collective bargaining. These were: the audit of collective agreements to

ensure they did not discriminate; a formal commitment to securing pro rata terms and

conditions in negotiations; training for union negotiators to ensure they promote the needs of

the groups; and the negotiation of special, tailor-made agreements, such as a choice of

flexible hours for part-timers. Bargaining innovation on behalf of the other groups is less

frequently reported and, again, tends to be a feature of specialist unions who have

concentrations of temporary work in their job territory.

Legal and Political Action

The final sphere of representation about which unions were questioned was legal and political

action. With regard to legal action, unions were asked if they had sponsored a test case or

initiated judicial review of the situation of part-time or temporary workers and if they

provided specialist advice, such as a leaflet detailing employment rights. With regard to

political action, they were asked if they had responded formally to a government request for

consultation and if they had lobbied the UK government and the European Commission on

behalf of these categories of worker. It was felt that both kinds of action might feature

prominently in union representation of the flexible workforce because of the scope afforded

by developments in public policy. Union pressure on government to strengthen the part-time

worker regulations has been widely publicized and recent changes or proposed changes in the

legal regulation of agency, fixed-term and freelance work seem to offer unions an opportunity

for intervention (Davies, 2010).

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Influences on Union Activity

Trade union engagement with the interests of part-time and temporary workers. In each of the

fields of recruitment, participation, services, bargaining and legal and political action there is

clearly a minority of active unions who have prioritized the representation of ‘non-standard

workers’. In many cases these are specialist unions with concentrations of part-time, agency,

fixed-term or freelance workers amongst their membership, though the larger general unions

like GMB, T&G and UNISON have also been active. Outside of these active minorities the

interests of part-time and temporary workers have not featured prominently on the union

agenda.

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employers exploit agency work boom

Education