Insecure and underpaid

Precarious work is the term used to describe employment that is poorly paid, insecure and does not provide a decent living.

In cases of precarious work... we do not need more legislation but more efficient enforcement- Victor Carachi

In some cases, even labour laws relating to working conditions and pay are breached. In Europe and the US, there has been a dramatic increase in precarious work in the last decade mainly due to such factors as globalisation, whereby many manufacturing firms relocated to countries in Asia where pay is very low and working conditions miserable. This situation not only led to job losses in Europe and the US but also contributed to various employers resorting to precarious work.

Unfortunately, one of the negative effects of globalisation is that the global market is very much deregulated where work ethics and conditions of employment are concerned. Competitive forces are necessary and healthy but these should be on a level playing field and not at the expense of bad working conditions and health and safety standards.

An example of what the working conditions are in some Asian countries is the following story that recently hit the headlines and was given prominence by both the BBC and RAI.

Foxconn factories in China, which manufacture iPhones and iPads for Apple among other ICT companies, were investigated by the US Fair Labour Association (FLA) on the specific request of Apple after a string of suicides were reported last year.

According to a report on the BBC and RAI, the FLA found “significant issues” in working practices in these Chinese plants. The investigation – one of the largest ever conducted into a US company’s operations abroad – found employees often worked more than 60 hours a week and sometimes for seven days running without the required day off.

Other violations included unpaid overtime and health and safety risks.

The FLA says it has now secured agreements to reduce hours, protect pay and improve staff representation. However, international trade union organisations are highly sceptical that things will change significantly for the better.

In Malta, the effects of globalisation have been compounded by the ever-increasing government-induced costs, mainly the energy tariffs that hit hard both the consumer and industry. This has left many sectors in our economy with much less disposable income and, as a result, some employers have resorted to outsourcing some of their non-core activities to the lowest bidder resulting in precarious work.

Moreover, government departments and entities too joined the bandwagon in this practice and made the situation much worse.

It is therefore not surprising that the number of those falling below the poverty line (presently estimated at 63,474) is increasing. Unless we start to take this issue seriously, we risk facing a much bigger problem as, obviously, poverty leads to other social problems. Burying our head in the sand, as some employers’ representatives wish us to do, is simply not an option.

To combat the phenomenon of precarious work, poverty and other related social problems in Malta, the Department of Employment and Industrial Relations needs to be equipped with more human resources. Its current compliment of three inspectors is simply not adequate.

Moreover, this department should consider other means to combat this problem such as conducting exit interviews and surveys. The present practice of having employees take the witness stand in court against their employer (while in employment) is expecting too much from vulnerable persons and is therefore not appropriate. This may be one of the main reasons why very few incidents of this nature are reported.

In cases of precarious work where the law is flagrantly being breached we do not need more legislation but more efficient enforcement. On the other hand, government departments, public entities, agencies and local councils should ensure that when contracts are awarded they should see beyond their bottom line.

On an international level, the EU should put more pressure on developing countries through the International Labour Organisation to ensure that workers’ rights and dignity are respected in these countries.

As quality standard labels on the product protect the consumer, it is therefore high time that similar labels and audits are introduced to protect workers’ rights on an international level.

Mr Carachi is president of the General Workers’ Union.