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Low Paid Work in Ireland Tom Turner and Michelle O’Sullivan ICTU Seminar on Low Low Paid Work in Ireland Tom Turner and Michelle O’Sullivan ICTU Seminar on Low Pay and Decent Work January 2013 michelle. osullivan@ul. ie

Low pay & decent work • Links between low pay & precarious work – Low pay & decent work • Links between low pay & precarious work – Income – Quality – Security – Control

Objectives 1. Provide a picture of unionisation, collective agreements & pay 2. Structure of Objectives 1. Provide a picture of unionisation, collective agreements & pay 2. Structure of earnings of low paid work – overtime earnings, shift allowances and bonuses

Data • 2007 & 2008 National Employment Surveys (NES) • Matched employer-employee survey • Data • 2007 & 2008 National Employment Surveys (NES) • Matched employer-employee survey • Grossed up to the employed labour force

Unionisation & CAs Covered by CA Union Members 84% Not covered by CA 16% Unionisation & CAs Covered by CA Union Members 84% Not covered by CA 16% Non-members 27% 73% Total 47% 53%

Private Sector Unionisation Covered by CA Not covered by CA Union members 68% 32 Private Sector Unionisation Covered by CA Not covered by CA Union members 68% 32 % Non-members 19 % 81 % Total 30 % 70 %

Earnings distribution All employees Private sector Low paid 20% 26% Up to median earnings Earnings distribution All employees Private sector Low paid 20% 26% Up to median earnings 30% 34% Above median earnings 50% 40%

Male/Female Male Low pay 16% 15% Up to median 32% 27% Above median 55% Male/Female Male Low pay 16% 15% Up to median 32% 27% Above median 55% 40%

Low Pay & Union Membership % Low Paid All employees % Low Paid Private Low Pay & Union Membership % Low Paid All employees % Low Paid Private sector Union members 8. 8 16. 9 Non-members 28. 6 25. 8

Pensions Union Non-union Health Insurance Union Non-union (%) Low paid 56 31 22 13 Pensions Union Non-union Health Insurance Union Non-union (%) Low paid 56 31 22 13 Median 76 55 31 26 Above median 88 75 35 44

Non-members With CA Low paid Union Members No CA 27% Company size Smaller Larger Non-members With CA Low paid Union Members No CA 27% Company size Smaller Larger Sector Industry; construction/ transport; health/education Industry; construction/ transport; finance 22%

Low pay & Nationality Irish Asia/Africa East European EU Developed All 18% employees 25% Low pay & Nationality Irish Asia/Africa East European EU Developed All 18% employees 25% 45% 21% Private sector 31% 45% 24%

Low Pay & Nationality (private sector) Irish Asia/Africa East European EU Developed Union members Low Pay & Nationality (private sector) Irish Asia/Africa East European EU Developed Union members 16% 23% 36% 13% Nonmembers 27% 33% 47% 26%

Number of JLC Workers Number of JLC Workers

JLC Workers 1. Who are workers paid at JLC levels? 2. What is the JLC Workers 1. Who are workers paid at JLC levels? 2. What is the structure of their earnings? – Economic crisis & High Court case – Arguments that JLC pay rates were “costing jobs” – Particular emphasis on overtime pay

Earnings range • Median hourly earnings - € 16. 29 • Low pay work Earnings range • Median hourly earnings - € 16. 29 • Low pay work - € 10. 86 or less • JLC range - € 8. 23 to € 9. 68

Low pay earnings % of private sector Less than € 8. 23 Low pay Low pay earnings % of private sector Less than € 8. 23 Low pay in Private sector 10% JLC: € 8. 23 -€ 9. 68 52% 13% € 9. 69 – € 10. 86 38% 9. 5% 100% 25% 2. 5%

Who are paid at JLC levels? Female Manual/routine work Less educated Non-union Part-time Low Who are paid at JLC levels? Female Manual/routine work Less educated Non-union Part-time Low service Under 25 years Hotels/restaurants; Wholesale/retail Non-Irish

Selected characteristics of workers covered by JLC rates Selected characteristics of workers covered by JLC rates

Distribution of overtime hours, earnings and shift allowance Distribution of overtime hours, earnings and shift allowance

Results summary • Low levels of Sunday premiums, shift allowance and over-time payments • Results summary • Low levels of Sunday premiums, shift allowance and over-time payments • Workers who work no overtime and receive no shift allowance or bonuses more likely to be covered by JLC rates • Relatively high proportion of low paid workers; lower benefits • Collective agreement coverage important

Commentary • Similarities internationally regarding low paid sectors & employees • But differences in Commentary • Similarities internationally regarding low paid sectors & employees • But differences in shares of low paid work • Influenced by: – – Collective bargaining coverage Union strategies on low pay The MW increase formula Models of ‘avoiding’ or ‘accepting’ low paid work (Bosch)