Outsourcing of public services in Europe and segmentation effects: The influence of labour market factors

This article examines the influence of labour market factors on public authorities’ decisions to outsource public services in five countries. The dominant focus in the outsourcing literature is on a narrow range of factors: public–private gaps in pay, union membership and collective bargaining coverage. We find such differences to be variable, and develop a more encompassing perspective. This includes consideration of labour market rules that establish wage floors and employment protection (especially for outsourced workers) and the possible differentiation of legal status between public and private employees. Our case studies from local government in five countries highlight a set of country-specific interconnections between labour market factors and outsourcing. These lead to variations in both managers’ and unions’ approaches towards outsourcing and in outcomes for pay and working conditions. We call for a strengthening of the inclusiveness of industrial relations structures to combat problems of workforce fragmentation caused by outsourcing. </jats:p

Effects of minimum wages in the commercial cleaning sector

The commercial cleaning industry is characterized by a high proportion of labour costs and a pronounced comparability and standardization of services. The statistical preconditions for the evaluation have not been ideal which is mainly due to the high proportion of part-time work and mini-jobs. The evaluation is based on a representative company survey, a survey of works counsellors, company case studies and micro-econometric calculations based on SIAB. The lower minimum pay rate for indoor cleaning tends to be the 'going rate' which otherwise might be undercut. Employees' protection has been improved by the more effective controls by the customs which are also assessed as very important for competition. Employment and working time volume have been increasing between 2000 and 2008 and the market share of the commercial cleaning industry has grown compared to cleaners in other industries. The micro-econometric analysis reveals all in all no negative impact on employment and suggests that the inclusion of the industry into the Law on the Posting of Workers (AEntG) might have led to shifts from mini-jobs to employment covered by social security

Fuer eine Reform der geringfuegigen Beschaeftigung

Within this report, we want to plead in favour for a reform of jobs which are regular but not covered by the social insurance system ('geringfuegige Beschaeftigung). Reasons for a reform are given in detailed analysis of trends in the development of 'geringfuegige Beschaeftigung', of the effects on firms and employees, of its implications on competition and labour market policies and its consequences for the social insurance system. From our point of view it points out that there are more arguments supporting a reform instead of continuing with the current regulations. Furthermore, an international comparison of regulations in nine European countries shows that most of the countries manage without similar bounds of social insurance. Finally, standards for a reform of these jobs in Germany will be elaborated and suggestions for a reform presented by the new government will be commented. (orig.)Available from TIB Hannover: RR 9237(98-2) / FIZ - Fachinformationszzentrum Karlsruhe / TIB - Technische InformationsbibliothekSIGLEDEGerman