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How permanent contracts can mean higher productivity

Monday 14th Nov 2016 (Latest News, Employment)

Around the world, companies are increasingly using temporary employment for permanent tasks. According to a new report from the ILO, many workers in "non-standard employment" earn less, have less social protection and often cycle between temporary employment and unemployment. But some companies are finding that giving workers security through permanent contracts can also deliver a strong competitive advantage.

The report, Non-standard employment around the world: Understanding challenges, shaping prospects, highlights the policies needed to improve the quality of non-standard jobs.  The report finds that there has been a rise in non-standard forms of employment (NSFE) globally, including increases in temporary work, part-time work, temporary agency work and subcontracting, dependent self-employment and disguised employment relationships.     Find out more:

www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_534122/lang--en/index.htm  

Length:                                   00:04:45

Location:                                Geneva, Switzerland and San Sebastian de los Reyes, Spain

Date of production:             14 November 2016

Audio:                                    Available in English and international versions, with French and Spanish translation of script

Rights:                                    All ILO audiovisual material is available under the Creative Commons Attribution-NonCommercial 3.0 IGO license

Type of video:                      video news release

Key words:                             non-standard employment, temporary work, part-time work, job security

Contact:                                 multimedia@ilo.org


Shotlist:

00:00 – 00:04

Cover of ILO report “Non-standard employment around the world”

00:05 – 00:10

General views of press briefing at Palais des Nations, United Nations in Geneva

00:11 – 00:33

Sound bite with Deborah Greenfield, ILO Deputy Director-General for Policy (in English):  “Non-standard forms of employment are, they are fourfold: part-time work, temporary work, temporary agency work - that is there is a third party involved, and then disguised employment or disguised self-employment.  What the report shows based on looking at 20 years of evidence is that non-standard forms of employment are on the rise across the globe.”

00:34 – 00:52

Sound bite with Janine Berg, Senior Economist at the International Labour Organization (in English):  “Workers might now know whether they are going to have an income in the next month, they might not know whether they are going to have a job, there’s challenges for occupational safety and health – the accident rates tends to be higher for workers in non-standard forms of employment.  They also have challenges in joining a trade union for example, because they fear their contract might not be renewed.”

00:52 – 00:55

Street view daytime in San Sebastian de los Reyes, Spain

00:55 – 00:56

Fruit and veg market vendor speaks to customer

00:57 – 01:00

Retailer clothing sales clerk hangs clothing back up in clothing store

01:00 – 01:21

General views inside Mercadona supermarket in San Sebastian de los Reyes, Spain

01:22 – 01:29

Butcher, Alejandro Herrera, surveys supermarket

01:29 – 01:41

Sound bite with Alejandro Herrera, Butcher (in Spanish): “The truth is, there’s no comparison.   Your personal situation is much more complicated because you never know what’s going to happen tomorrow.   In the end you have no stability.”

01:42 – 01:54

General views inside Mercadona supermarket, including the fish counter and customers checking out at the cash register

01:54 – 02:08

Sound bite with Rebeca Ledesma, Bakery worker (in Spanish): "It's mainly the security. Knowing that you're permanent from the beginning, from the first day on the job, makes a big difference from a temporary contract, where you never know from one day to the next, especially when you have a family, like I do. I'm grateful for that."

02:08 – 02:12

Exterior sign of Mercadona supermarket

02:13 – 02:49

General views inside supermarket include worker stacks shelves, cashier at work, customers walk down aisles

02:50 – 03:04

Sound bite with Jose Antonio Moreno, Human Resources Manager (in Spanish): “We believe that the business model we prioritize for worker satisfaction will, in the end, always have a positive impact, because the workers will be pleased and will do their jobs well.”

03:04 – 03:20

Sound bite with Jordi García Viña, Spanish Confederation of Employers' Organizations (in Spanish): "It has every advantage because ultimately it's the result that counts, and if this company becomes more competitive by offering better services, then the results will be better, not only for the workers but also for the customers and society as a whole."

03:21 – 03:28

General views inside supermarket

03:29 – 03:32

Cutaway of Silvia Yankovich, COOO Trade Union in supermarket

03:33 – 03:52

Sound bite with Silvia Yankovich, COOO Trade Union (in Spanish): "If a contract is permanent rather than temporary, there's more interaction. The workers are satisfied and so they give more. We believe that this can be replicated at other companies, and in fact we're asking them to do this, so that we can generate stable employment at other companies."

03:52 – 04:15

Sound bite with Joaquín Nieto, Director, ILO Spain (in Spanish): "If a company goes from being anti-union to accepting the unions' presence, giving most of its staff permanent contracts, paying the best wages in the branch and, doing all this, becomes the leader in the sector, the question should be, what are other companies waiting for to do the same thing?"

04:16 – 04:27

Sound bite with Alejandro Herrera, Butcher (in Spanish): "It's the stability I get from being able to make medium and long-term plans. I couldn't do that before."

04:28 – 04:34

Supermarket worker takes item out of drawers and puts item on shelf

04:34 – 04:45

Travelling shot of cash registers at supermarket

04:45

END

 

Suggested script for video feature from Spain:

In Spain, one of every four employees is on temporary, fixed-term contracts, making Spain a world leader in the use of temporary contracts. The international retail supermarket sector is one of the most competitive businesses in the world. Workers in these sectors are often hired on temporary, part-time, or even zero-hours contracts. As a result, many retail workers face unpredictable hours, lower levels of pay and fewer benefits.

Alejandro is a butcher. In the past he held a number of different jobs, each on a temporary contract. It wasn't easy.

Alejandro Herrera, Butcher

The truth is, there's no comparison. Your personal situation is much more complicated because you never know what's going to happen tomorrow. In the end you have no stability.

But some companies are seeing competitive advantages in hiring employees under permanent contracts with no fixed end-date. It makes a profound difference to the employees.

Rebeca Ledesma, Bakery Worker

It's mainly the security. Knowing that you're permanent from the beginning, from the first day on the job, makes a big difference from a temporary contract, where you never know from one day to the next, especially when you have a family, like I do. I'm grateful for that.

Rebeca is one of 76,000 employees of the Mercadona supermarket chain working on a permanent contract with no fixed end date.

In the 1990s, Mercadona adopted the "Total Quality Model" of management, which included a core principle of employee involvement. Salaries were raised, with new workers earning twice Spain's minimum wage. Employees were also given their schedule one month in advance and the chance for promotion. They also get extensive on the job training.

The result: workers are motivated and satisfied. And that has resulted in higher productivity and sales compared with the company's competitors. Mercadona is now the market leader in Spain.

Jose Antonio Moreno, Human Resources Manager

We believe that the business model we prioritize for worker satisfaction will, in the end, always have a positive impact, because the workers will be pleased and will do their jobs well.

Employers are impressed.

Jordi García Viña, Spanish Confederation of Employers' Organizations

It has every advantage because ultimately it's the result that counts, and if this company becomes more competitive by offering better services, then the results will be better, not only for the workers but also for the customers and society as a whole.

In the past, the company had a difficult relationship with the trade unions. But now, the trade union is involved and consulted. It's an approach that created dialogue and built trust.

Silvia Yankovich, COOO Trade Union

If a contract is permanent rather than temporary, there's more interaction. The workers are satisfied and so they give more. We believe that this can be replicated at other companies, and in fact we're asking them to do this, so that we can generate stable employment at other companies.

Joaquín Nieto, Director, ILO Spain

If a company goes from being anti-union to accepting the unions' presence, giving most of its staff permanent contracts, paying the best wages in the branch and, doing all this, becomes the leader in the sector, the question should be, what are other companies waiting for to do the same thing?

For Alejandro, the benefits he gets from working on a permanent contract are clear.

Alejandro Herrera

It's the stability I get from being able to make medium and long-term plans. I couldn't do that before.

As the world of work continues to transform, solutions can be found to new and challenging situations, if employers, trade unions and employees can build trust and work together toward results that benefit everyone.

END

 

 


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