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LABOUR MARKET FLEXIBITY - PTE TTK FI

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					ATYPICAL EMPLOYMENT
      IN POLAND-
  OPPORTUNITIES AND
 BARRIERS TO ITS USE


Iwona Kukulak-Dolata
University of Lodz. Poland
    Flexibility is defined as

employers and employees’ ease
 in adapting to changes in
 external conditions.
      LABOUR MARKET
         FLEXIBITY
is represented by the labour market
  adaptability to the varying market
  conditions and technologies.
TYPES OF LABOUR MARKET FLEXIBIITY:


        FLEXIBILITY OF EMPLOYMENT
is the ability to adapt the number of workers to the
   changing economic circumstances, particularly
   those affecting production, wages, productivity
   and profitability. A higher flexibility of
   employment means that numbers of workers in
   enterprises are more sensitive to variations in
   factors determining the demand for labour.
TYPES OF LABOUR MARKET FLEXIBIITY:


      FLEXIBILITY OF WORKING TIME
is expressed in the departure from regular,
  standard working time solutions defined by full-
  time employment, even distribution of the
  working time and inadmissibility of work in
  „asocial” hours.
TYPES OF LABOUR MARKET FLEXIBIITY:


           FLEXIBILITY OF WAGES
indicates their responsiveness to changes in wage
  determinants, and particularly to the labour
  market conditions, profitability of enterprises
  and productivity of labour.
TYPES OF LABOUR MARKET FLEXIBIITY:


      FLEXIBILITY OF LABOUR SUPPLY
is represented by the labour force mobility, i.e. its
   adaptability to determinants of the labour
   demand. Several types of mobility can be
   distinguished, such as occupational mobility,
   mobility of qualifications, spatial mobility and
   inter-enterprise mobility.
TYPES OF LABOUR MARKET FLEXIBIITY:


ATYPICAL EMPLOYMENT is one that is
 different from traditional employment, the latter
 being defined as offered for an unfixed term,
 with eight hour working day and fixed working
 day start and end time.
    ATYPICAL FORMS OF EMPLOYMENT

 Part-time work
 Fixed-term contracts
 Temporary work
 On-call jobs
 Working from home and telecommuting
 Self-employment
  ATYPICAL FORMS OF EMPLOYMENT

PART-TIME WORK
where the working time is shorter than that
  worked by a comparable full-time worker. In
  addition, special forms of part-time
  employment, such as job sharing, weekend
  work, etc., are included here.
      ATYPICAL FORMS OF EMPLOYMENT

FIXED-TERM CONTRACTS, subdivided into
 three types: trial period contracts, contracts
 for a period needed to complete a job or a task
 and apprenticeship contracts. In Poland a trial
 period contract may not run for longer than
 three months and a fixed term contract is only
 allowed to be renewed twice in successive
 periods. Apprenticeship contracts are
 frequently tied up with obligatory school
 education.
     ATYPICAL FORMS OF EMPLOYMENT

TEMPORARY WORK is rendered by workers in
  enterprises (or other workplaces) they have been
  referred to by a temporary employment agency.
  The legal basis for this type of employment is a
  subcontract signed among the intended employer,
  the employee and the agency. As regards its
  duration, the work is fixed-term, i.e. after the
  “lending period” a worker is back on standby.
      ATYPICAL FORMS OF EMPLOYMENT

ON-CALL JOBS – in this case an employer may
 demand a worker to do a job at any time. The
 underlying contract may specify the terms of
 employment or describe the minimum and
 maximum inputs and responsibilities resting on
 the worker and employer being parties to it.
 Workers holding the contracts have to be available
 to their employers (e.g. to be on standby at home)
 and do a job when called.
      ATYPICAL FORMS OF EMPLOYMENT

WORKING FROM HOME and TELECOMMUTING
  are forms of work rendered not on the enterprises’
  premises, but in a place named by the worker who
  does the requested piece of work and is accountable
  for his or her performance to the employer, while
  staying outside the latter’s supervision.
Telecommuting is the most recent form of distance
  working that utilises computers and telephone lines,
  i.e. modern information and telecommunication
  technologies. It may take place at any distance from
  where it is subject to traditional assessment.
       ATYPICAL FORMS OF EMPLOYMENT

SELF-EMPLOYMENT of workers instead of paid
  employment. Under the approach persons working on their
  own account can do either simple or very specialised jobs
  that do not need supervision. In this system some jobs in
  enterprises (e.g. cleaning, simple repairs and similar jobs
  that do not require high skills, but also designing or
  consulting services that involve high qualifications) are set
  apart to be done by workers who work on their own
  account (and who frequently have the same responsibilities
  under their regular contracts of employment).
  Consequently, such workers continue to do the same jobs
  for the same employer.
     Chart 1. Share of part-timers in the total number of
             workers in Poland, years 1992-2004
16

                                                                  14,2                        14,5
14                                  13,8                                               13,7
                             13,3                   13,1   13            13,2   13,2
        12,9   12,8   12,9                  12,7
12
                                                                  11,2
        10,7   10,7          10,5   10,7                   10,5          10,8   10,7   10,8 11,1
                      10,1                  10,1    10,4
10
        8,9    8,9                                                8,7    8,8    8,6
                             8,2                           8,5                         8,4     8,4
 8                    7,8           8,1     7,9     8,1


 6


 4

 2


 0
     1992 1993 1994 1995 1996 1997            1998 1999 2000 2001 2002 2003 2004

                                    Total         Man      Woman

      Note: November data for years 1992-1999, 4th quarter data for years 2000-2001.
      Source: GUS (Central Statistical Office) 2004, author’s calculation
 Chart 2. Workers by type of employment contract in
              Poland, years 1992-2004

25
                                                                            20,9 21,3
20
                                                                     16,8

15                                                            12,7

10
                 5,4   5,4           5,6   5,8   5,7    6,1
                              5,1
           4,3
5    2,9


0
     1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

     Note: years 1992-2000 – jobs taken for periods up to 12 months (occasional jobs),
                           Years 2001-2003 – fixed-term jobs.
                        Source: GUS 2002, GUS 2003 GUS 2004.
 Chart 3. Share of employers and own-account workers
other than farm operators in the population of “civilian”
         employees in Poland, years 1990-2004
14

                            12,8
12                   12,3
                                                                                                 11,5
              10,5                                                     10,4               10,3
10                                                         9,9   9,8                9,7
                                   9,4               9,6
                                         9,1                                  9,3
                                               8,5
 8      7,9


 6


 4


 2


 0
     1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004


Source: GUS Statistical Yearbooks GUS, issues for respective years, author’s calculations.
THE SCOPE OF APPLICATION OF ATYPICAL
  FORMS OF EMPLOYMENT IN POLAND

FIXED-TERM CONTRACT-was operated by 78,4% of the
  enterprises;

PART-TIME WORK –was operated by 66,3% of the enterprises;

ON-CALL JOBS were found in 11,4% of the enterprises:

WORKING FROM HOME was used in 3,0% of the enterprises;

TELECOMMUTING was applied by 2,3% of the enterprises.
           ADVANTAGES OF ATYPICAL
                EMPLOYMENT
     A tool for adjusting labour supply and demand to the
    labour market developments;
     A tool for restoring the labour market equilibrium,
    especially in the case of structural unemployment and
    unemployment arising from the business cycle;
      A measure allowing occupational activation of persons
    that for various reasons might have problems with taking
    steady, full-time and unfixed-term jobs;
 Atypical employment enables workers to perform their
  family and occupational roles.
    MAJOR BARRIERS TO ATYPICAL FORMS
            OF EMPLOYMENT
     Workers’ reluctance to take such jobs;
       Workers associate atypical forms of employment with
    the secondary, inferior labour market;
       Workers covered by atypical forms of employment are
    less willing to identify themselves with the enterprise;
       High employment costs discourage employers to offer
    part-time jobs;
 Inability to exercise direct supervision of the working
  processes and technological barriers in the case of
  teleworking.
                       CONCLUSIONS:
     Forms of atypical employment in Poland are still weakly
    developed;
     They are drawing an increasing employers’ interest;
 Their limited practical use arises from employers’ insufficient
 knowledge of their nature and types;
          In the future atypical forms of employment should be
    promoted by emphasising their advantages compared with
    traditional employment;
 Incentives should be created for employers to use atypical
 employment more broadly;
 It is necessary to protect the interests of workers taking jobs
  under atypical employment. First and foremost, their
  employment conditions should be protected to the same degree
  as in the case of workers in the traditional system.

				
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