ILO Home
  


Collective bargaining and flexibility in Ireland

by Joseph Wallace & Noreen Clifford

II. The types of flexibility introduced

B. Changes in the use of flexible employment contracts

The data on changes in the use of flexible employment contracts would seem to indicate a trend toward substantial increases in the use of flexible work contracts such as temporary work, fixed-term contracts, and subcontracting (table 1.9).

Table 1.9. Change In organizational use of flexible

work arrangements over the last three

years -- employment contracts
Increased No change Decreased Not used N
Temporary/casual 49% 35% 6% 10% 244
Fixed-term contract 47% 29% 2% 23% 234
Subcontracting 41% 23% 2% 34% 237
Source: Cranfield-Universe of Limerick Survey, 1995.

The most significant reported increase is in the temporary/casual work category, which shows a 10 percentage point growth in the number of organizations reporting an increase since the 1992 survey. Only one in every ten organizations operating in Ireland does not utilize temporary contracts. However, when the proportion of the workforce employed under temporary and fixed term contracts is examined, the findings again belie the suggestion that there has been a radical increase in the use of these forms of flexibility (table 1.10).

Table 1.10. Proportion of the workforce on flexible

employment contracts
<1% 1-10% 11-20% >20% N
1992 1995 1992 1995 1992 1995 1992 1995 1992 1995
Temporary 29% 28% 54% 55% 11% 14% 6% 3% 197 243
Fixed-term 52% 51% 27% 33% 5% 4% 16% 11% 181 237
Source: Cranfield-University of Limerick Survey, 1992 and 1995.

While almost one in every two organizations reports increasing their utilization of temporary contracts, the number of workers employed under such contracts has remained relatively stable. The percentage of organizations reporting more than 11 per cent of the workforce as temporary stands at 17 per cent, a figure which has not changed since 1992. The use of fixed-term contracts has decreased slightly since 1992. Overall, change in the use of these contracts is modest.

1. Sector, organization size and changes in the use of flexible work contracts

While 73 per cent of public sector and 69 per cent of private sector companies have up to 10 per cent of their workforce on temporary contracts, a greater number of private sector companies have 11 per cent or more of their employees working temporarily. Therefore, while temporary contracts are more prevalent in the private sector, the use of fixed-term contracts is relatively comparable between both sectors.

Table 1.11. Sector as a determinant of the proportion

of the workforce on flexible employment contracts

<1% 1-10% 11-20% >20% N
Temporary workers:
Public

Private

33%

27%

60%

53%

8%

15%

0

4%

240
Fixed-term workers:
Public

Private

52%

52%

31%

34%

4%

4%

14%

10%

234
Source: Cranfield-University of Limerick Survey, 1995.

In the case of temporary workers, large organizations are more likely to employ 1 per cent to 20 per cent of the workforce under such contracts, while smaller companies have less than 1 per cent of the workforce on temporary contracts (see table 1.12).

Table 1.12. Organization size and the proportion of

the workforce on flexible employment contracts
<1% 1-10% 11-20% >20% N
Temporary workers:
Small

Large

36%

22%

52%

57%

11%

16%

1%

5%

237
Fixed-term workers:
Small

Large

55%

49%

28%

39%

3%

6%

14%

7%

232
Source: Cranfield-University of Limerick Survey, 1995.

Where fixed-term contracts are employed, a greater proportion of large organizations employ less than 10 per cent of the workforce on that basis, whereas small organizations are more likely to employ more than 10 per cent of their employees on a fixed-term contract. The findings then indicates that fixed-term contracts are more popular in small organizations, whereas temporary contracts are utilized to a greater extent in large organizations.

2. Changes in the use of other flexible

work practices

Teleworking and home-based work are the least popular forms of non-standard contract (see tables 1.13 and 1.14). Although almost no respondent reports a decrease in the use of these contracts, reported increases are also modest. Approximately 90 per cent of organizations do not use these contracts.

Table 1.13. Changes in organizational use of flexible

work arrangements over the past three years
Place of work

Increased

No change Decreased Not used N
Home-based work 6% 5% 0.5% 89% 218
Teleworking 6% 3% 0 91% 220
Source: Cranfield-University of Limerick Survey, 1995.

Table 1.14. Proportion of the workforce on flexible

employment contracts -- place of work
<1% 1-10% 11-20% >20% N
1992 1995 1992 1995 1992 1995 1992 1995 1992 1995
Home-based 99% 98% 1% 0.5% 0 0.5% 0 1% 106 206
Teleworking 95% 4% 1% 0 208
Source: Cranfield-University of Limerick Survey, 1992 and 1995.

Contrary to predictions of their widespread use, few organizations employ these contracts, and where they are utilized a very small proportion of the workforce is involved. The overwhelming finding is that although the nature of the employment contract is changing, it is incremental change. As Gunnigle et al. (1994, p. 109) have concluded: "despite the appeal of the flexible firm scenario in some quarters, the research evidence to date suggest that change in this area would appear to be more closely aligned with gradual incrementalism rather than with a radical post-industrial futurology".

[Top of the page]

Updated by BC. Approved by MR. Last update: 10 August 2000.