Review Group PA and national PA plans 2011-2012/media/Files/R/Randstad … · ·...
Transcript of Review Group PA and national PA plans 2011-2012/media/Files/R/Randstad … · ·...
regulatory environment
analyst & investor days Annemarie Muntz Director Group Public Affairs
December 2, 2011
content
growth drivers: deregulation
adapting to change
lifting restrictions
AWD: need for balanced content key provisions process transposition overview
state of play on regulation & image changes regulatory environment in Japan overview deregulation
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3
growth drivers: deregulation
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need for flexibility
demographics
deregulation
clients looking for total offering
strong concepts best people excellent execution superior brands
targ
ets - EBITA margin of 5 to 6% through the cycle, not below 4% in normal downturn
- mid-term EBITA margins of 4 to 5% for inhouse services, 5 to 7% for staffing and > 10% for professionals - continuous market share gains - sound financial position; leverage ratio of between 0 and 2
deregulation
staffing/professionals (specific triangular labor relationship)
legislation is based on:
at international level: ILO Convention 181 on Private Employment
Agencies (if ratified)
at EU level: Agency Work Directive (minimum requirements)
at national level: law & CLA
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the continuation of a series of industry strategic research reports
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"Orchestrating the evolution of Private Employment Agencies towards a stronger society"
"More work opportunities for more people"
2000 2007 2011
"Adapting to change"
‘Adapting to Change’ - chapter 6: efficient labor markets need relevant regulation on private employment services
“as a specific service provided by private employment
agencies, if regulated appropriately, temporary agency work contributes to improved functioning of labor markets, fulfils specific needs for both enterprises and workers, and aims at complementing other forms of employment”
points of consensus of ILO Workshop to promote ratification of the Private Employment Agencies Convention (2009)
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current status & potential of agency work markets
1. maturity 2. operating environment*
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depends on:
* operating environment: the total environment of political and social systems, the impact of regulatory regimes and socio-economic as well as historical social dynamics in which private employment services operate
source: Adapting to Change
1. maturity: agency work markets tend to go through stages of development
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2. operating environments: 4 different market types important sub-groups based on nuances of social systems
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Market type
Market driven
Europe
Non-Europe
West Europe
Social dialogue
based Nordics
Asia
Legislator driven
West Europe
Medi-terranean
Emerging markets
Europe
Lat Am
Asia
Countries
•UK
•US, Australia, New Zealand
•Netherlands
•Switzerland, Austria, Germany
•Sweden, Norway, Denmark, Finland
•Japan
•France, Belgium, Luxembourg
• Italy, Greece, Spain, Portugal
•Eastern Europe
•Latin America
• India, China
Cluster characteristics
•Rapid AW development, with appreciable drop-off in the crisis •Open regulatory environment with limited restrictions •Liberal economies favoring flexibility over security
•Above average AW penetration in relatively mature markets •Moderately regulated, varying balances of flexibility and security • labor market organized and regulated by collective agreements between social partners
•Historically low AW penetration and slow industry development •Unique Nordic social and economic system
•Generally liberal economies but high value on security and social acceptance challenges
•Penetration depending on level of industry development, ranging from below to above average
•Highly regulated, weighted towards job security over flexibility •Historically labor markets with high unemployment relative to Social dialogue peers
•Nascent industries with AW legally recognized only recently •Regulatory policies still in development •Economic policies and market dynamics still evolving
Belgium France
level of industry development different within country clusters
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date of first sector regulation and AW penetration, Europe
AW penetration (%)1
4
3
2
1
0
year of first regulation
1965 1970 1975 1980 1985 1990 1995 2000 2005
Spain
Germany
Netherlands
UK
R2 = 0.46
average
early adopters encouraged AW development and contribution to
labor markets
legislator driven
social dialogue based
market driven
4 types of conditions & restrictions
length of assignment
• Belgium • France • Spain
reasons for use
• Belgium • France • Spain
sector restrictions
• Belgium • France • Germany • Spain
contract restrictions
• Belgium • France • Spain
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common in “legislator driven” markets
lifting restrictions: Randstad priorities
Belgium • broadening reasons for use • opening public sector
France • restriction on public sector lifted (2009),
developing slowly
Spain • restricted sectors (public & risk) formally
opened in April 2011 but ‘de facto’ closed. Union depended
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lifting restrictions: potential in public sector
lifting restrictions in the public sector will have a positive impact on turnover:
long-term perspective; culture is main reason for slow development
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countries AW penetration rate 2010*
employment public sector **
potential AW jobs
Belgium 1.8 1.4 mio 25,452
France 2.0 7.6 mio 153,860
Spain 0.8 3.9 mio 31,080
* source: WoW ** source: Eurostat/SEO
Agency Work Directive: need for balanced content
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legal recognition and freedom to operate
protection of agency workers
no fees to be charged to agency workers
non discrimination for agency workers in terms
of rights and working conditions
conditions of use of AW (e.g. licensing systems) should be proportionate, non-discriminatory and
transparent
need for a legal recognition of the
triangular employment relationship
“flexicurity”
Agency Work Directive: key provisions
article 4: review of restrictions justified prohibitions and restrictions only allowed on a limited number of grounds, of general interest:
protection of temporary agency workers
health and safety at work
ensure that labour markets function properly & prevent abuses
article 5: principle of equal treatment
equal treatment and equal pay from day 1 covering pay and basic working conditions
3 forms of derogation of equal pay: for open-ended contracts
through CLA
through agreement by social partners (UK, Ireland)
principles of equal treatment and equal pay are already common practice in continental Europe
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Agency Work Directive: process
• national law will be
amended where necessary and reported to the EU Commission
part I deadline final
implementation AWD =
5 December 2011
• possible scenario’s: • 1. review not received • 2. review received but
incomplete • 3. review received but
disagree with final conclusions
part II deadline review current
restrictions to be reported to the EU Commission
= 5 December 2011
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in case of non-compliance by Member States, this could lead
to infringement procedures by EU,
starting at the earliest by the end of 2012
2012 and further
Agency Work Directive: transposition overview - 1
country state of play equal pay additional info
UK transposition completed: AWR has come into force as per October 1st, 2011
after 12 weeks in 1 assignment at the same user company
impact monitor in place, first results expected in Q1 2012
Germany transposition is completed
no threshold to equal pay derogation, however, ongoing CLA negotiation with emphasis on implementing equal pay system
Netherlands transposition pending
no change in current system of 26 weeks threshold period
ongoing discussion on CLA (renewal to be negotiated in 2012 and 2014)
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introduction NL: equal pay after 26 weeks in 2004
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70
80
90
100
110
120
130
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150
160
170
180
190
200
1999 q1q2 q3 q4 2000 q1q2 q3 q4 2001 q1q2 q3 q4 2002 q1q2 q3 q4 2003 q1q2 q3 q4 2004 q1q2 q3 q4 2005 q1q2 q3 q4 2006 q1q2 q3 q4 2007 q1q2 q3 q4 2008 q1q2 q3 q4 2009 q1q2 q3 q4 2010 q1q2 q3 q4 2011 q1q2
NL PEA's: turnover and hoursindex: 2004 q1 = 100
Hours worked GDP
Agency Work Directive: transposition overview - 2
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country state of play equal pay additional info
Belgium transposition pending
no change; equal pay from day 1
no government; discussion social partners on broadening reasons for use
France transposition is completed
no change; equal pay from day 1
review lifting restrictions pending
Spain transposition is completed
no change; equal pay from day 1
new government in 2012; review lifting restrictions pending
EU: state of play on regulation Country regulation regulatory
trend AWD: lifting restrictions
results
BE -> Extension maximum length of assignment ‘97 + Lifting of sector constraints ‘01
CZ -> Legal recognition Oct ‘04
DE -> Time limitations '02 + Lifting of sector constraints ‘04
DK stable
FR -> Opening to permanent recruitment ’05 Opening public sector ‘09
HU -> Legal recognition ‘01 + amended ‘06
IT -> Legal recognition of the industry ‘97 + Lifting sector constraints + Opening to HR services ‘03
LUX ->
NL stable Extension maximum length of assignment ‘97 + Lifting of sector constraints ‘01
PL -> Legal recognition ’03 + revised regulation ‘10
PT stable Extension maximum length of assignment + Opening to HR services ‘99
ES -> Legal recognition ‘94 + Removal of extra costs ’ 06 + Opening public & risk sectors ’11
CH stable
SE stable Legal recognition ‘93
TR <-
UK stable December 2, 2011 analyst & investor days 20
changes in regulatory environment: Japan
developments new law on dispatched labor very volatile; a lot of dealings going on; developments change on a daily basis Randstad Japan well involved in the lobbying process at current probably be dealt with in Parliamentary session in (May) 2012
opportunities: more involvement of the industry via a ‘discussion Forum’ 3 year limitation will be on individual temp instead of on client company 3 year limitation doesn’t apply to 26 categories (but they cannot do anything outside their designated function/assignment)
concerns: possible ban on daily (spot) contracts if there is a breach of contract/regulations: user company is obliged to hire temp directly limited impact
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overview deregulation
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• to be implemented by EU27 before December 5, 2011 • recognition of the positive role of our sector in the
labour market • aiming at more and better jobs
EU Agency Work Directive
• 2009: Opening of public sector in France • 2010: Opening of construction and public sector in Spain
Recent successes
• opening public sector Belgium • opening public & construction sector Spain
Opportunities to come
• limited impact from potential restriction in Japan • continued (legal) pressure on EU Member States to
transpose AWD and lifting unjustified restrictions
Hurdles to take