In the next hour: Work platforms in Denmark Jakob Tietge. Gig working & platforms in the UK Liz Banks. EU Project on talent platforms Michael Freytag

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2 In the next hour: Work platforms in Denmark Jakob Tietge Gig working & platforms in the UK Liz Banks EU Project on talent platforms Michael Freytag National Federations meeting 23 rd /24 th January in London

3 NFC webinar Gig Economy - Denmark Work platforms Denmark

4 Work platforms in Denmark New study from Copenhagen University Danes was asked i Q about any platform work during the last 12 months The study looks at capital platforms such as AirBnB and work platforms such as Uber, Upwork etc. Only 1 % of Danes had worked through a work platform in the last 12 months (Uber has since left Denmark) Of those 61 % earned less than euro before tax from platform work during the last 12 months Typically the workers are young. 38% was between years old Typically they have a short og no education. 65 % had education on the level of high school or less, 20 % a medium long education, 12 % a long education/phd For most people platform work is a supplement to other work. 47 % had other employment, 36 % was students and only 9 % was unemployed 4

5 Different forms of work platforms B to C platforms Like Uber, Taskrabbit and cleaning services in private households etc. Largest volume in Denmark B to B platforms Like Upwork, Worksome, Meploy Developing in Denmark Surplus labour platforms Like Flexicu. Companies renting out surplus labour Early days for these platforms in Denmark 5

6 Different concepts for work platforms Task board Auction Shop Agency Candidate and user makes their own agreements Payments directly between the parties Platform dictates terms but not price Payment through the platform Platform dictates terms and hourly wage And distributes payment Platform dictates terms and minimum price And deduct tax in payment Like Amino Like Worksome Like Meploy Like Cleady 6

7 How has the Danish Staffing Industry worked with the issue? Identified a policy position: Misclassification (worker/ self employed) is the problem and leads to unfair competition. Proper regulation already excist. Focus on enforcement (correct classification and tax) Cooperation with the unions goal is to create new case law on particular concepts Media attention on the issue Guidence to user companies on correct classification (worker/ self emloyed) 7

8 Role of social partners on work platforms? The Danish government has established the National Discruption Council Partnership for Denmarks future. They will look at how the platform economy affects the Danish labour market and the Danish model based on Collective Labour Agreements A new governmet strategy on the sharing economy has identified the work platforms constitutes both employment possibilties and a risk for social dumping. They point to social partners to come up with solutions The strategy of the unions is to attract more members amongst self employed and to create new types of agreements with the platforms, which ensures payment on level with CLA conditions However these new types of agreements are voluntary for platforms, as it has not been established, that the candidates is employed 8

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10 Jobs transform lives, which is why we are building the best recruitment industry in the world. Gig economy The Uberisation of work The world of work is changing. Digital work platforms have accelerated a trend towards flexible, project based employment. Only 13% of British people believe they will be working in traditional 9-5 employment by % of businesses perceive the use of digital work platforms as more risky than beneficial for their business. Recruitment and Employment Confederation

11 Jobs transform lives, which is why we are building the best recruitment industry in the world. Risks of the gig economy For employers: digital work platforms still require screening it may require new protocols and structures it risks workers loyalty to the employer brand For recruiters: it risks replacing the contingent, lower end of the recruitment market lack of regulation threatens industry standards it risks aggravating the recruitment community over regulatory injustices between sectors For candidates: gig working is insecure it risks devaluing their worth it lacks traditional employment protections Recruitment and Employment Confederation

12 Jobs transform lives, which is why we are building the best recruitment industry in the world. Recommendations Our report makes recommendations to employers, recruiters, candidates, government and the press to ensure the UK labour market can benefit from the gig economy whilst addressing concerns. Our recommendations to government include: Clarifying the legal and tax status of gig workers Address regulatory inequality to ensure a level playing field between digital work platforms and the UK recruitment industry Help determine fair pay for gig workers with the Low Pay Commission Collect more data about the impact of the gig economy to help inform future policy decisions Recruitment and Employment Confederation

13 Jobs transform lives, which is why we are building the best recruitment industry in the world. Engaging UK government on gig economy Matthew Taylor review Maintain UK s worker status Right to request perm contract Swedish Derogation Inspectorate expanded to cover AWR Government response expected soon Meanwhile Budget announced consultation on IR35 and discussion document on employment status on tax Uber and Deliveroo drivers ruled workers both cases being appealed Recruitment and Employment Confederation

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15 Analysis on online talent platforms and labour market intermediaries (size of the market, regulation, contribution to the labour market), focus on platforms that intermediate work Comparison with temporary agency work Case studies on various online talent platforms Comprehensive research report Aim to reach joint policy recommendations with EU Social Partner UNI Europa Stakeholder Conference to present the research results on 16 th May 2018

16 January 2017 Launch of the project Call for tender to select external contractor March/ April 2017 Selection of external contractor Formation of a steering committee First steering committee September 2017 First draft of the research report Second steering committee to provide input Stakeholder workshop with policy makers, online platforms and stakeholders Forthcoming (Dec 2017 May 2018) Finalisation of the research report Third steering committee to provide input Work on joint policy recommendations Pan-European Conference to present the results

17 Both online platforms and agency work based on triangular relationship Limited regulation on online platforms, agency work regulated at national, European and global level Limited data online talent platforms and fast moving market Majority of people working via online talent platforms are self-employed, though some diversity and discussions in several Member States More limited access to vocational training and no portable rights in the platform economy, while this has been established in the agency work industry in several European countries Need for further research and analysis on online talent platforms, which are an important feature of the changing world of work

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