Temporary Agency Work in The Netherlands

1
Temporary Agency Work in The Netherlands

Tom Gibcus Policy advisor Judicial Affairs

• Polish employees on the Dutch Labour market after
  May 1st, 2007
• Business Centre Club, Warszawa November 22nd,
  2007

2
Agenda

• Dutch Temporary Agency Work Market
• Introducing ABU (Dutch federation of private
  employment agencies)
• Polish workers in The Netherlands

3
Dutch Temporary Agency Work Market
4
The Netherlands today a liberal system for
Agency work

• No licensing
• No maximum time of assignment
• No discrimination of agencies in relation to
  regular employers
• No closed sectors or forbidden jobs
• Recognition positive social and economic role
• High penetration agency work

5
The temporary market in figures

• Number of agency workers annually 730,000
• Average number of agency workers daily 207,000
• Social 197,000 persons from target groups
• gt45 years, ethnic minorities, unemployed
• Average duration of agency jobs in days 155
• Estimated number of temporary work agencies
  10.000

6
Introducing ABU
7
Introducing ABU

• Founded in 1961
• 360 members
• 3,150 branches / ABU-agencies
• 9 billion euro turnover of total market
• 5.5 billion euro turnover of ABU-members
• Other federations
• NBBU
• VIA

8
Main tasks ABU

• Promote the interest of the industry
• Providing a quality label
• in the interest of the agency worker, the user
  company and the industry itself
• Create conditions for a healthy development of
  the temporary work market
• Provide services for its members

9
ABU Collective Labour Agreement2004-2009 for
temporary agency workers

• Contracts
• Payments (choice user-pay day 1 or after 26
  weeks)
• Pension/ old-age
• Education (opt-out for foreign temporary
  workers)
• Important role ABU and trade Unions / good
  relations
• Generally binding for the Dutch agency industry

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Not licensing, but self-regulation

• NEN 4400-certificate
• Audit two times a year
• Audit on
• administration (financial, salary, personnel)
• payments taxes and social security
• check ID-documents and working permits
• 1.500 temporary work agencies with certificate
  thousands without!

11
Requirements membership 2007

• New members of ABU
• Active at least one year or experience in the
  sector
• Registration at the Chamber of Commerce
• NEN 4400-certificate
• Audited by independent organisation on applying
  Collective Agreements correct, code of conduct
• After six months first audit
• 10 memberships a year ended by ABU based on
  requirements

12
Polish workers in The Netherlands
13
Number of Polish workers in NL

• Estimate 100.000 to 125.000 Polish worker in the
  Netherlands
• Growth of about 30 of Polish workers since May
  1st 2007
• Average period of stay 6 months till 1 year
• Estimate of 1 to 5 would like to stay
  permanently

14
Rules concerning payments

• General rule Law, deviation by Collective Labour
  Agreement possible, example
• Law ? same wage usercompany (userpay)
• ABU CLA ? userpay after working 26 weeks at same
  usercompany or day 1
• ABU CLA is generally binding for all temporary
  agency workers

15
In practice wages

• All workers
• wages according to the CLA temporary agency work
  / own pay system
• Minimum wages by law 1.129 (monthly) or 261
  (weekly).
• Lower wages not allowed for workers 23 years and
  older!
• Bonusfactors for evening- or weekendwork (differs
  per company and higher tax rate)
• Limited by Dutch working time law

16
In practice other

• Special provision temporary agency workers not
  permanently residing in the Netherlands
• ABU CLA also for these workers
• Special attention housing
• Square meters accommodation
• Seperate living areas
• Information health and safety

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Opinions about the Polish worker (1)

• Employers
• Pleased to work with Polish workers
• Work hard, efficient and work many hours
• Never ill, do not complain
• Polish workers allowed in every sector
• Labour that Dutch people are not willing to do
• Industry, construction, agriculture
• Alcohol

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Opinions about the Polish worker (2)

• Politicians
• Discussion about substitution of Dutch workers
  socialists
• Is it (economically) necessary?
• gt1 million inactive labour potential in the
  Netherlands
• Necessity civic integration?

19
Opinions about the Polish worker (3)

• In general
• Lots of media attention for housing-problems
• Blackmarket agencies underpaid, small and
  expensive housing
• Dutch civilians noise, more Polish in street
• Only negative publicity, people understand Polish
  workers are needed
• Therefore ABU and others ? improve Image

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Conclusion Past, present and future

• 1960s Spanish/ Greek / Italian workers
• 2/3 returned after economic growth
• 1970s/1980s Turkish and Moroccan workers
• Stayed, different economic background
• 1990s/2000s Polish workers
• growth, but in 5 to 10 years Poland nearer to
  Western European standards
• Future the Netherlands and Poland working
  together to deal with labour shortages in Europe