Precarity – living on the edge

Recently the issue of precarious employment hit the headlines in Malta, as employers and trade unions clashed over the magnitude and gravity of the problem.

Whilst the Malta Employers Association (MEA), the Small Businesses Chamber (GRTU) and other employers hold that the issue is exaggerated by unions and is not real, trade unions and political parties argue that precarious employment exists and is a problem.

Last week, the MEA claimed that there is no clear definition of what precarious employment is and
denied that employers were abusing workers through precarious and part-time employment. Matters precipitated when General Workers Union (GWU) chief Tony Zarb accused the GRTU president Vince Farrugia of allegedly describing workers in precarious employment as "rats".

MEA director-general Joe Farrugia raised the stakes last week after accusing unions and politicians from all parties of fabricating lies about employers over job precariousness. This provoked an angry reaction from a number of unions, including the GWU and Forum, who insisted that the problem is real and "increasing at an alarming rate".

MaltaToday asked Godfrey Baldacchino, a sociologist and industrial relations expert, whether the problem is real or fabricated and what the repercussions of the 'precariat' are.

Baldacchino a professor in the department of sociology and anthropology at the University of Prince Edward Island (UPEI), Canada, describes the precariat as "the working class of the 21st century, and more likely to be found in so called 'developed economies', where traditional systems of social support, welfare and solidarity may have broken down in the current wave of neo-liberalism and state retrenchment."

Baldacchino concurs that there is no clear definition 'precarious employment'. However he said "there is an increasing recognition the world over that this a whole layer of workers who live precariously, in a danger of some kind: a health or safety hazard, unclear job description, or else insufficiently trained, underpaid and unprotected".

Asked what the extent of precarious employment is in Malta, Baldacchino said it is hard to define or establish. "In the families where it exists, it is a real problem - but the solution can be elusive. The condition could easily boil down to a lack of clear information about workers' rights, a fear of irking a paternalist employer, a fatalism based on a resignation that no better wage is available so one has to take what one gets and be grateful for it," Baldacchino said.

On the solutions, Baldacchino said that "it is not so much a question of changing our labour code, though the coverage of the Act could be extended to situations where those engaged in contracts for service are obviously working full-time for a single, main employer".

He quotes Guy Standing , a professor of economic security, who defines the precariat as "a growing number of people across the world living and working precariously, usually in a series of short-term jobs, without recourse to stable occupational identities or careers, stable social protection or protective regulations relevant to them. They include migrants, but also locals".

Baldacchino explains that a wide gap exists between workers in precarious and regular employment and this is illustrated by the differences in their salary, leave, increments, sickness benefits, professional development and career possibilities. 

"Part of the reason for the existence of such pockets of (under)employment is the flagrant abuse of labour law and social security provisions by some employers and possibly with the connivance of some workers such as undocumented migrant workers or those paid on piece rates."

He adds that it is perfectly legal to engage someone on a contractor basis and agree on any kind of package with employees. "The 2002 Employment and Industrial Relations Act and any previous labour legislation in Malta, only covers employees engaged in a contract of service and not contractees engaged in a contract for service. One preposition makes a world of a difference."

Baldacchino explains that workers in precarious jobs are more likely to be youths or women, often engaged in the "shady zones of the informal and grey economy".

The effects of the precariat on society, Baldacchino said, may vary as "some employers may claim that it can make their businesses more competitive, especially if they are labour-intensive and some workers may be tempted to agree to shady conditions of employment as long as they are able to avoid declaring any or all income for tax purposes".

He added that for many workers, low wages means a reduced propensity to consume as "demand for products and services will fall, and businesses will still suffer.".

Baldacchino said that this will result in poverty, dejection and despondency which can "in turn feed into various social problems - including petty crime."

MaltaToday also spoke to Alternattiva Demokratika's spokesperson on social policy, Angele Deguara. She is a senior lecturer and subject coordinator of sociology at the Junior College. Deguara is also the author of Life on the Line: A Sociological Investigation of Women Working in a Clothing Factory in Malta.

Deguara said that workers in precarious jobs have little or no control over their working conditions and hours of works which may be changed without any consultation with workers. "Their income is uncertain or irregular and they may work in unhealthy or unsafe conditions."

She added that precarious employment offers little or no opportunity for training or promotion and "workers are likely to be discouraged or even fired if they show interest in unionisation."

"Although precarious employment is more likely to be found among low-skilled, part-time, casual and contract workers, these situations do not automatically lead to precarious employment. Furthermore, skilled, qualified and professional workers may also  experience precarious conditions."

 Deguara explains that this kind of employment only benefits employers who employ cheap and flexible labour according to their needs. "The victims of precarious employment are likely to be the most vulnerable workers and their families. Workers engaged in precarious employment have no bargaining power and no voice. It is a source of psychological and economic insecurity as workers are exploited at will."

She says that although official figures do not exist, labour markets nowadays are increasingly resorting to flexible, contract, casual employment which may involve precariousness. "

Certain categories of workers especially those working in the service sector such as cleaners and security guards or in the construction industry are more vulnerable than others."

Asked what the solutions are she explains that Alternattiva Demokratika has been urging the government to ensure that public contracts are awarded only to employers who respect their workers' rights.

"Changing the law is not effective unless the law is enforced. For example, it is not acceptable for workers to be engaged for just under the minimum stipulated period which entitles workers to certain benefits; workers whose definite contract is renewed after one year should be given an indefinite contract. Unfortunately, many abuses take place within the remit of the law."