Foundations of Work & Employment WORK1003 Week 12 Lecture S2 2024 PDF

Foundations of Work & Employment WORK1003 Week 12 Live Lecture Contemporary Challenges in Work and Employment Presented by Dr Jo Orsatti Discipline of Work and Organisational Studies The University of Sydney Business School The University of Sydney Page 1 ...

Foundations of Work & Employment WORK1003 Week 12 Live Lecture Contemporary Challenges in Work and Employment Presented by Dr Jo Orsatti Discipline of Work and Organisational Studies The University of Sydney Business School The University of Sydney Page 1  We acknowledge the tradition of custodianship and law of the Country on which the University of Sydney campuses stand. We pay our respects to those who have cared and continue to care for Country. The University of Sydney Page 2  Lecture overview 1. The megatrends shaping work and employment 2. Contemporary challenges in work and employment 3. Exploring the causes 4. The future of work and employment 5. Final exam + next week The University of Sydney Page 3  Get support if you need it Contact your tutors or myself ([email protected] ) for questions about the unit For more general support, there are numerous resources Webinars and self-help resources from CAPS https://www.sydney.edu.au/students/counselling-and-mental-health- support/resources-workshops.html Support for offshore students https://www.sydney.edu.au/students/counselling-and-mental-health- support/support-for-offshore-students.html The University of Sydney Page 4  Online module recap Contemporary work and employment relations issues 1. Increased employer power 2. Growth of insecure work 3. Changing forms of state intervention 4. New forms of worker mobilisation Global forces creating new challenges 1. Economic globalisation 2. New technology 3. Climate change 4. COVID-19 The University of Sydney Page 5  The megatrends shaping work and employment The University of Sydney Page 6  The megatrends reshaping work in the 21st century In 2018 CSIRO identified six megatrends shaping the future workforce environment for Australia including: 1. The extending reach of automated systems and robotics 2. Rising workplace stress and mental health issues 3. Rising screen time, sedentary behaviour and chronic illness 4. Blurring the boundaries between work and home 5. The gig and entrepreneurial economy 6. An ageing workforce Source CSIRO (2018: p. 2) The University of Sydney Page 7  The future of work (Frey & Osborne, 2015; Durrant-Whyte, 2015)  These studies have claimed that 40% of jobs have a high probability and another 18% have a medium probability of being automated in the next 10- 15 years  This would mean an increased demand for high-skilled and lower-skilled jobs  … but the erosion of intermediate skilled occupations is likely to produce a ‘hollowing-out’ of the labour market  Jobs that rely upon deep social intelligence (e.g. emotional labour) and the original or creative application of technology will grow …  … while predictable or routine tasks/analysis jobs will shrink … but … The University of Sydney Page 8  Different approaches to robotics  Several analyses confuse tasks with jobs.  All the studies have assumptions about what constitutes skill and how we value work.  Technology is neither neutral nor exogenous – it’s about humans solving problems.  Overall, there is a decline in the application of capital to jobs (because labour is cheap).  Likewise, markets and globalisation are shaped by human beings, not (just) the other way around  Let’s not fall into the “TINA trap”. The University of Sydney Page 9  Contemporary challenges in work and employment The University of Sydney Page 10  Looking back and forward Clibborn (2019, p. 323) highlights that: “Australia’s 20th-century industrial relations system was built on the assumptions of the male breadwinner, direct employment, permanent migration, strong unions and enforced employment laws.” In the 21st-century we are looking at a fundamentally different labour market context, including:  close to equal workforce participation by gender  more complex forms of participation including casual, part-time and independent contracting  the rise of ‘fissured’ work structures  large intakes of temporary migrant workers with restricted work and social rights  weak unions in terms of both continued reducing membership density and disappearing rights  widespread non-compliance with employment laws The University of Sydney Page 11  Rising income inequality The University of Sydney Page 12 Derived from: World Inequality Report (2018, p. 10)  The fall and rise of the “top 1%” wealth share The University of Sydney Derived from: World Inequality Report (2018, p. 16) Page 13  The squeezed global wealth middle class, 1980-2050 The University of Sydney Page 14 Derived from: World Inequality Report (2018, p. 17)  Income inequality and collective bargaining coverage in select OECD countries 140 120 100 80 60 40 20 0 Italy France Sweden Spain Germany Australia Canada UK USA Chile (coordinated (coordinated (coordinated (coordinated (coordinated (liberal market (liberal market (liberal market (liberal market (emerging market market market market market economy) economy) economy) economy) market economy) economy) economy) economy) economy) economy) Top 1% : bottom 50% average income ratio % of employees covered by collective bargaining The University of Sydney Page 15 Source: World Inequality Report 2022 Country Appendix: https://wir2022.wid.world/country-appendix-glossary/ Who has a ‘good’ job anymore, anyway? The University of Sydney Source: Stanford (2016) Page 16 Why care about the rise of flexible non-standard employment? Green, Kler & Leeves (2009) found that  Flexible jobs are of lower quality (p. 605)  Across the OECD casual jobs rate below permanent and fixed-term jobs in terms of:  Pay and conditions  Employment security  Employee ability to use and develop skills  Employee control over their work  This is not to suggest that all non-standard jobs are sub-standard jobs (Wooden & Warren 2004) The University of Sydney Page 17 Do we really see a rise of non-standard work in Australia? Laß & Wooden (2020) reviewed the prevalence of non-standard work in Australia and found that:  % of non-standard work has not increased much since 2000s  changing composition of labour market only explains part of the variation  changes to job selection behaviours employees / firms more important # observations in data:  Profile workforce changed: female, older, more highly educated, born overseas, live Trends in employment arrangements, 2001–2017 (% of all in metropolitan areas employed persons). Notes: n=160,174. Data weighted using  Young workers more likely in casual work responding person weights. Source: HILDA Survey (Department of Social Services / Melbourne Institute of Applied Economic and Social  Declining unions contributed to recent rise Research, 2018). in non-standard work The University of Sydney Page 18  10.0 12.0 14.0 16.0 0.0 2.0 4.0 6.0 8.0 Feb-1978 Feb-1979 Feb-1980 Feb-1981 Feb-1982 Feb-1983 The University of SydneyABS. Feb-1984 Feb-1985 Feb-1986 Feb-1987 Feb-1988 Feb-1989 Feb-1990 Feb-1991 Feb-1992 Feb-1993 Feb-1994 Feb-1995 Feb-1996 Feb-1997 Feb-1998 Unemployment Feb-1999 Feb-2000 Feb-2001 Feb-2002 Feb-2003 Feb-2004 Feb-2005 Feb-2006 Feb-2007 Underemployment Feb-2008 Feb-2009 Feb-2010 Feb-2011 Feb-2012 Underemployment and unemployment in Australia Feb-2013 Feb-2014 Source: Australian Bureau of Statistics (ABS) (2021) Labour Force, Australia, February 2020. Cat. no. 6202.0. Canberra: Feb-2015 Feb-2016 Feb-2017 Feb-2018 Feb-2019 Feb-2020 Feb-2021 Feb-2022 Feb-2023 Page 19  Impact of COVID-19 crisis on employment of young Australians The University of Sydney Derived from: Jericho (2020) Page 20  The rise of the precariat Guy Standing (2011) UK political scientist ‘Proletariat’ / ‘precariat’ underclass Dangerous: Workers - insecure flexibility is the norm Politically - lacking in traditional representation, identities and allegiances Economically - training, impact on standard work arrangements The University of Sydney Page 21 Job security Labour Market Security Adequate employment opportunities, through state-guaranteed full employment Employment Security Protection against arbitrary dismissal, regulations on hiring and firing, imposition of costs on employers, etc. Job Security A niche designated as an occupation or ‘career’, plus tolerance of demarcation practices, barriers to skill dilution, craft boundaries, job qualifications, restrictive practices, craft unions, etc. Work Security Protection against accidents and illness at work, through safety and health regulations, limits on working time, unsociable hours, night work for women, etc. Skill Reproduction Security Widespread opportunities to gain and retain skills, through apprenticeship, employment training etc. Income Security Protection of income through minimum wage machinery, wage indexation, comprehensive social security, progressive taxation, etc. Representation Security Protection of collective voice in the labour market, through independent trade unions and employer associations incorporated economically and politically into the state, with the right to strike, etc. The University of Sydney Page 22 Source: Standing (1997, p. 8-9)  What does the data tell us about the experience of precarious work in Australia? Low levels of access to training (HILDA – 22%) Choice over hours seems low, although this is one reason workers cite for undertaking casual work Data on those seeking more / less hours is mixed, but some evidence of underemployment Inadequate compensation for lack of leave entitlements and consequences of casual work going to work sick; not taking leave due to fears about endangering future employment; the inability to 'properly balance' work, personal and caring responsibilities; last minute changes to working hours; 'sudden loss of what had been regular work', with no notice; the 'lack of a career path'; reduced access to training and lower workplace participation; 'poorer health and safety outcomes'; and an 'inability' to secure a home loan or other finance. (see Birch and Preston 2019, Markey and McIvor 2018) Contemporary work: its meanings and demands Findlay & Thompson (2017) highlight a number of trends in work and employment in the 21st century  Issues around work (in)security  Effort and intensity of work  Question around performance monitoring and management  Work-life boundaries  Dis/engagement of workers with work “The meaning of work are experienced at the individual level, but determined largely by structural changes at corporate, labour market and labour process levels.” (Findlay & Thompson 2017, p. 131) The University of Sydney Page 24  Exploring the causes The University of Sydney Page 25  What we’ve already discussed  State intervention (neo-liberal market reforms)  Increased employer assertiveness  Decline in union influence & coverage  Impact of technology  ….. however, also need to consider other (related) developments The University of Sydney Page 26 The Fissured Workplace (Weil, 2014)  Companies facing increasingly restive capital markets, shed activities deemed peripheral to their core business  Change in business models emerged in the late 1980s-1990s, by ‘Lead-Firms’ in particular  Fissuring represents the intersection of three business strategies with different emphases:  Revenue: pushed by capital markets firms have prioritised core competencies that produce value for investors and consumers (e.g. brand value, innovation, customer services)  Costs: shifting non-care activities (and employees) to other organizations. Adopting increasingly arm’s-length market transactions.  “Glue”: ICT advancements make it easier for lead-firms to monitor supply-chains and ensure quality and reliability of services and production.  Fissuring creates downward pressure on wages and benefits, murkiness about who bears responsibility for work conditions, and increased likelihood that basic labour standards will be violated.  Examples including: franchising, subcontracting, supply chain pressures, business process outsourcing, etc. The University of Sydney Page 27  The consequences of fissuring “Once an activity like janitorial services or housekeeping is shed, the secondary businesses doing that work often deepen the fissure even further by shifting those activities to other businesses. The farther down in the fissure one goes, the slimmer the profit margins and the greater the incentive to cut corners.” Weil (2017) The University of Sydney Page 28  Distribution of value within the banana supply chain The University of Sydney Page 29  Globalisation “Globalisation means there are potentially more people available to engage in skilled work – and some of them can work harder, faster, or better, or cheaper than local workers.” The University of Sydney (Gratton 2015, p. 34) Page 30  A truly globalised world? Existence of discriminatory trading blocs  European Union (EU)  North American Free Trade Agreement (NAFTA)  Association of South East Asian Nations (ASEAN) Free Trade Area Free trade agreements have ’winners’ and losers’ “A world market for labour just does not exist in the same way that it might be said to exist for goods and services. Most labour markets continue to be nationally regulated and only marginally accessible to outsiders, whether they are concerned with legal or illegal migrants or professional recruitment. Moving goods and services is infinitely easier than moving labour.” (Hirst, Thompson & Bromley 2009, p. 37, emphasis added) The University of Sydney Page 31  Employer non-compliance with ER laws The University of Sydney Page 32  The future of work and employment The University of Sydney Page 33  Polanyi’s (1944) Double movement 2020 Derived from Kalleberg (2009, p. 4) The University of Sydney Page 34  Addressing inequality through Secure Jobs Better Pay 2022 Minister for Employment and Workplace Relations Relations – Second Reading Speech: https://www.youtube.com/watch?v=VifoosfXyz0 Objectives Improving gender equity Promoting pay equity Prohibiting pay secrecy Prohibiting sexual harassment Promoting flexible work arrangements Strengthening job security Limiting fixed term contracts Regulation of job advertisements Abolish the Australian Building and Construction Commission and the Registered Organisations Commission Reducing barriers to bargaining Strengthening FWC’s powers Simplifying ‘Better Off Overall Test’ and agreement approval requirements Promoting multi-employer bargaining The University of Sydney Page 35  Addressing inequality through Closing Loopholes 2023-2024 Main provisions  Casual employment transition to permanent employment  Addressing the ‘labour hire loophole’ that can allow employers to use outsourcing to circumvent enterprise bargaining  Stronger workplace delegates’ rights  Stronger protections against discrimination for workers affected by family and domestic violence  Stronger penalties for employers who commit wage theft  Minimum standard for contract workers in the platform economy and road transport industry  Right to Disconnect ABC 7.30 segments on the Bill:  Platform economy provisions: https://www.abc.net.au/news/2023-08-31/should-gig- economy-workers-be-given-workplace/102801394  Interview with Tony Burke, Minister for Employment and Workplace Relations: https://www.abc.net.au/news/2023-09-04/tony-burke-on-next-round-of-industrial-relations- changes/102813664 The University of Sydney Page 36  Climate change and the future of work and employment The University of Sydney Page 37  Is our ER system up to the challenge?  Only emergent or no industry plans, carbon price, or legally-enforceable fossil fuel emissions laws to support the necessary changes in labour force composition  Highest wages in the most polluting sector and no ability to consider environmental impacts in relation to wages and conditions. GDP heavily reliant on fossil fuel exports.  Many of the strongest unions are in high-carbon sectors; large employment sectors that are low- carbon (health care and social assistance, hospitality) low union density  Concept of ‘work value’ is currently justiciable in relation to gender only, rather than environmental value of work  Concepts of ‘skill’ (and thus status and pay) inherited from industrial era  Much emergency and mitigation work is performed on a voluntary basis  Limited capacity for parties to negotiate about environmental matters in EBAs, including workplace emissions (1.7% of agreements 2009-10 contained environmental clauses: Markey, McIvor & Wright, 2014)  No environmental objects in the Fair Work Act  Work in renewables under-supported in terms of skill, industries are subject to significant labour hire and outsourcing  Two dominant frames of reference – unitarism, pluralism – are ecologically blind. Unitarism sees no co-ordinating role for the State in transition  Secondary boycott prohibitions mean no capacity for unions to take lawful industrial action along supply chains on environmental grounds  Limited basis for reconfiguring workplaces as safe in the context of rising temperatures The University of Sydney Page 38  Is our ER system up to the challenge? Reasons to hope: The University of Sydney Page 39  Final exam + next week The University of Sydney Page 40  Exam  Tuesday 19 November, 09:00-11:00 (9:00-11:00am), held on campus  The exam – worth 30% of total mark  2 hours + 10 minutes reading time  6 essay style questions – answer 2 only (each answer worth 15 marks)  You may take into the exam 1 x A4 sheet of handwritten and/or typed notes double-sided ONLY  How to prepare:  Online Module content  On-Campus Lecture content  Tutorial discussion questions + required readings  Practice exam questions  ER in the news items discussed in lectures and tutorials are good sources of examples to illustrate arguments  We will discuss exam preparation in detail in the lecture and tutorials in week 13 The University of Sydney Page 41  Next week Week 13 (final week) Conclusion, overview and tutorial reflection preparation Live lecture and tutorials There will be no pre-recorded lecture videos or readings in week 13 There will be overviews, discussion of essay feedback and preparation for reflections in tutorials The University of Sydney Page 42