SAP 2.75/WP.129
Industrial Activities Branch
Working Paper
Employment and working conditions
in the Colombian flower industry
In spite of the emphasis given to the level and growth of wages, quality of employment has hardly received much consideration in theoretical economics (Champlin, 1995). Nevertheless, agreement exists among investigators and researchers with respect to certain basic elements, job stability, just wages, opportunities for advancement, and social, legal and extra legal benefits being some amongst these (Carty, 1995).
Wages are generally considered the most important element in a desirable job, and therefore in its quality. It has always been conceded that the flower sector pays above average wages. Junguito (1981) writes that "data on average wages and benefits indicate that these are above the level of the minimum wage" (page 31) and Granados (1982) that "the average minimum wage in the flower-growing sector is above the legal minimum" (page 34). However, table 4 suggests that the situation has changed in recent years or that in the past the comparisons were inadequate. In effect, the entry level minimum wage according to information provided by the flower-growing enterprises is on average equal to the legal minimum wage and the minimum per enterprise in 1996 is just slightly above the basic monthly minimum foreseen by Colombian legislation (2,000 pesos). The monthly equivalent of a day's work in rural areas, in the hypothesis that the daily labourers find continuous employment over one month, is much above the legal minimum wage or that of an enterprise. Even when including the legal benefits, the wages paid by enterprises in the flower-growing sector are not significantly above those paid to daily labourers on a monthly-equivalent basis. Workers who are directly recruited receive all the legal benefits. Information compiled by workers (15) as well as employers confirms that directly recruited staff in the flower-growing enterprises benefits from a written labour contract, from social security services (health and pensions) and are affiliated to family compensation benefits plans (16). Temporary agencies also seem to comply with legal requirements with regard to social protection of their workers. Reis, Sierra and Rangel (1955b) find that those workers who are subcontracted by individuals generally do not benefit from the legal minimum protection, as for example, affiliation to the social security system.
Table 4. Indicative wages in the agricultural sector, 1995 and 1996
| 1995 | 1996 | |||
| Minimum wage | 118 933 | 142 125 | ||
| Daily agricultural wages (a) | ||||
| Madrid | 181 250 | 200 000 | ||
| Chia | 212 500 | 250 000 | ||
| Tenjo | 175 000 | 208 325 | ||
| Flower sector wages (b) | ||||
| Enterprise minimum | 121 000 | 144 176 | ||
| Entry-level minimum | 118 933 | 142 126 | ||
|
(a) Daily argicultural wage without food in the third trimester. Daily value x 25.
(b) Average minimum wage in enterprises and average for new recruits.
| ||||
Many flower-growing firms, in addition to paying all the benefits required by the Labour Code, provide their employees with many extra-legal benefits. This explains why the wages of the labour force in this sector are above those found in the agricultural sector in general (Granados, 1982 and Asocolflores, 1977, for example). Many enterprises pay a supplement or provide transport services for their workers, as farms are generally located at a distance from roads. In 1992, 74 per cent of the firms affiliated to Aflocsa provided this service. In addition, table 5 reports on most of the extra-legal benefits paid and the percentage of enterprises affiliated to Asocolflores which provide them. In addition to bonuses given on special occasions, or for older workers, these benefits include payments for social services, such as educational supplement, weddings, medical services, or for some basic goods, such as access to housing, eye glasses and medicines. It seems that none of these payments bears any direct relation to the productivity of the workers. Enterprise remuneration systems, nevertheless, foresee payment by output, as attested by the workers themselves (Reis, Sierra and Rangel, 1955b).
Table 5. Extra-legal benefits of Asocolflores affiliates
| Percentage of enterprises | Median value in 1996 | ||||||||
| 1995 | 1996 | ||||||||
| December bonus | 37 | 35.6 | 15 days | ||||||
| Leave bonus | 31 | 33.3 | 15 days | ||||||
| Seniority bonus | 17 | 20.0 | 4.25 days | ||||||
| June bonus | 15 | 15.6 | 3.5 days | ||||||
| St. Valentine's bonus | 5 | 11.1 | 6.71 days | ||||||
| Housing credit | 34 | 11.1 | 5 wage | ||||||
| Educational credit | 22 | 11.1 | 2 wage | ||||||
| Disaster credit | 33.3 | 2 wage | |||||||
| Wedding assistance | 27 | 31.1 | 17 000 pesos | ||||||
| Disease assistance | 33.3 | 100 000 pesos | |||||||
| Maternity assistance | 32 | 35.6 | 13 000 pesos | ||||||
| Food assistance | 54 | 35.6 | 368 pesos | a | |||||
| Glasses assistance | 22.2 | 20 000 pesos | |||||||
| Medical service | 25 | 57.8 | 100% | ||||||
| Medicine | 17 | 22.2 | 50% | ||||||
| a Per lunch/day. | |||||||||
| Source: Asocolflores, compensation study. | |||||||||
From table 5 one can infer that the average value of each of these extra-legal benefits offered by enterprises is not very high. Some, such as medical services and credit services, are not easily quantifiable; nevertheless, if the workers can benefit from all of these services this could increase significantly their total income. Another important way of increasing income is through overtime work. According to information from Asocolflores production workers in the flower-growing sector work on average 20 hours' overtime per month.
Temporary work is an important method for recruitment of workers, with, according to the survey by Aflocsa, temporary labour contracts being resorted to for initial recruitment in 45 per cent of cases. However, once beyond the initial probationary period, workers enjoy almost a permanent status (82 per cent). Temporary workers represent some 16 per cent of total field workers, a figure which is somewhat below the average for the Oriental region (20 per cent of total employment) to which Cundinamarca belongs. Nevertheless, there are indications of a strong incidence of temporary work in the flower-growing industry. In Madrid there are 15 enterprises affiliated to Aflocsa, or one-quarter of the total number of farms which operate in this municipality; according to the 1992 survey, in none of these 15 enterprises was there any recruitment through temporary work agencies but nevertheless, there are four temporary work agencies in Madrid, all of which are owned by former flower workers (Reis, Sierra and Rangel, 1995a). This seems to point to the existence of a market for temporary work of a size similar to that of some important cities with a population much above the 40,000 inhabitants of Madrid, and which generally have in operation a similar number of temporary work agencies, as for example the capital cities of Departments, such as Cucuta, Ibague, Manizales or Villavicencio. In each of these cities constituted temporary work agencies are operating. Reis, Sierra and Rangel (1955a) estimate that the four temporary work agencies in Madrid find employment for 1,200-1,400 temporary workers in non-peak employment periods. The conclusion one can derive from this is thus obvious: there exist in Madrid and in its zone of influence flower-growing enterprises which are not affiliated to Aflocsa and other economic sectors which employ a high percentage of temporary labour.
The presence in Madrid of a disproportionate number of temporary work agencies implies that there is a permanent market for temporary workers. These agencies would not limit themselves to providing workers during the peak production periods (17) - peaks whish are common to all operations - but which supply enterprises with workers for jobs with a pre-eminently permanent character. According to Reis, Sierra and Rangel (1955a) temporary work agencies in Madrid pay to their workers the legal minimum wage and all other legal benefits, complying, therefore, with the requirements of the Colombian labour legislation. These authors, nevertheless, point to a worrying element: the owners of temporary work agencies tend to contract labour as physical persons which does not correspond to the functions of this type of agencies. Having been workers themselves for various years, the owners of the temporary work agencies have a close knowledge of the sector and contract directly with the flower-growing enterprises. In turn, they subcontract workers who are remunerated on the basis of piecework.
In addition to finding that the owners of the temporary work agencies occasionally operate personally to facilitate subcontracting of workers, Reis, Sierra and Rangel (1955a) found some 22 independent contractors in Madrid who, generally acting on their own, subcontracted workers to flower-growing enterprises. In the majority of cases the contract among the parties was verbal and payment was according to work done per day. Payment could be above the legal minimum wage but would not include social benefits, and, of course, subcontracted workers do not have access to any social security coverage (Reis, Sierra and Rangel, 1955a and 1955b). Moreover, these authors (1955a) denounce that by such practices children are contracted throughout the year and without proper permit from the Ministry of Labour. It seems that flower-growing enterprises use subcontracting for special tasks, such as building greenhouses, placing plastic sheets, sowing etc., and not for jobs of a more permanent nature (18). It needs to be stated again that none of the flower-growing enterprises in Madrid affiliated to Aflocsa declared using subcontracting during the survey carried out in 1992.
Information available on the working conditions of piece-rate workers is not sufficient to allow for any clear and definite conclusions. It is known that some labour contractors do show concern for the working conditions of their staff. In any case, this form of labour contracting must be carefully monitored by the flower enterprises, who according to the Colombian legislation are jointly liable with the labour contractor in case of non-compliance of legal and labour requirements.
5.4 Working timeOn most of the farms the day's work starts around 6 a.m., and ends around 3 p.m. Working time can vary depending on the time spent for lunch and rest periods allowed. The working week comprises 44-48 hours. (19) During production peaks (December-February) the working day may stretch by four hours. Such extra time is in general welcomed by the workers because of the extra remuneration it brings.
5.5 Labour turnoverLabour turnover is extraordinarily high. According to studies by Asocolflores (see table 6) monthly departures as a share of the average labour force reached 6.5 per cent in 1995 and 4 per cent in 1996, which implies that in the span of less than two years, there is a total turnover of all the workers in a firm. It may be mentioned that the figure for 1995 could reflect in part the fall in the price of carnations observed in 1993-94 and its substitution in subsequent years by roses, the production of which is less labour intensive. But even taking this into account, staff turnover is considerably above that registered in other Colombian enterprises, whether in manufacturing or other formal sectors.
Table 6. Labour turnover rate (percentage of workers leaving the enterprises)
| Asocolflores enterprises | Non-manufacturing enterprises | Manufacturing enterprises | |||
| Monthly rate | Annual rate | Annual rate | |||
| 1995 | 6.5 | 13.3 | 12.3 | ||
| 1996 | 4.0 | 21.3 | 13.2 | ||
| Source: Asocolflores, compensation study and Acrip. | |||||
Unfortunately, the figures on turnover do not provide any information on the characteristics of the persons who leave. In particular, we do not know: (a) if the turnover affects all of the workforce employed on the farms or whether it is the result of a very high turnover among a reduced number of workers; (b) if the workers leave voluntarily or if their departure is induced by the enterprises. The high turnover rates among the staff could reflect a strategy to reduce labour costs: with this strategy "the workers are replaced every two months, that is at the end of their probation period" (Rueda, 1991, p. 14). This strategy, nevertheless, should have diminished in the wake of the labour reforms of 1991. On the other hand, the fact that enterprises use fixed-term contracts as a means to select the staff contributes to maintaining high turnover.
The employers hold that voluntary retirements are important and that this mobility tends to concentrate on a reduced number of workers. Reasons can be various, for example, the presence of a young labour force which adopts a job-shopping attitude and which is by nature characterized by high labour instability, or the habits of a workforce from rural areas used to working as daily workers, which can run counter to stability in employment, or even the presence of a flat occupational structure with very few advancement opportunities. Likewise, the relative scarcity of poorly qualified workers willing to work on the farms and the difficulties of finding employment which meets the expectations of younger workers with medium-level education may explain the existence of a representative group of workers employed in the flower-growing sector who cannot find better employment alternatives. In Madrid, Hoyos (1996) identifies these workers among the sons and daughters of migrant rural workers with certain level of education and aspirations which are different from those of their parents. The difficulty of finding employment in other sectors, or of securing advancement opportunities within the flower enterprises, may explain why these workers demonstrate employment dissatisfaction and labour instability in their employment. In any event, the labour market for workers in the flower-growing sector could be compatible with a high labour mobility. On the one hand, the enterprises can easily replace a poorly qualified labour force, and on the other, the workforce being of rural origin and of a low educational level, tends to have a very low reserve wage, which facilitates re-entry into employment upon leaving a job.
5.6 Employment seniorityHigh turnover in the labour force is reflected in the average years of employment that workers spend in the same enterprise -3 and 2.3 years in 1995 and 1996 for workers and 3.6 and 3 for employees (see table 7). These are relatively low average which nevertheless are a characteristc of the national labour market: even in the largest cities where one would expect some labour stability, workers and employees in the private sector, on average, do not stay more than five years with the same employer (20). Table 7 also shows that the enterprise in the sector are relatively young, presenting a life span on average of 11-12 years. This in part explains the high turnover rates and the low seniority of the workforce they employ.
Table 7. Average seniority of workers in enterprises affiliated to Asocolflores (in years)
| Workers | Employees | Enterprises | |||
| 1995 | 3.0 | 3.6 | 12.0 | ||
| 1996 | 2.3 | 3.0 | 11.0 | ||
| Source: Asocolflores, compensation study. | |||||
According to Hoyos (1996) enterprises try at whatever cost to avoid the establishment of a trade union in their firms. This is confirmed by Reis, Sierra and Rangel (1995c). Some 31 per cent of enterprises in 1995 and 40 per cent in 1996 signed a collective labour agreement with their workers (21). This is a strategy of negotiations with the workers which is used as a means to avoid the presence of trade unions. Despite this, once created, enterprises learn to live with trade unions. In 1995 and 1996, 22 per cent and 25 per cent of the enterprises surveyed by Asocolflores (see table 8) had trade unions. Reis, Sierra and Rangel (1995c) put the number of unionized workers at 26-31,000 persons in 1994 which corresponds to a unionization rate above 40 per cent, which would be considered high by Colombian standards.
Table 8. Enterprises affiliated to Asocolflores
| With trade union | With collective bargaining | |||
| (%) | (%) | |||
| 1995 | 22 | 31 | ||
| 1996 | 25 | 40 | ||
| Source: Asocolflores, compensation survey. | ||||
In enterprises with trade unions, relations are regulated through collective bargaining. According to Aflocsa in 1982, 10 per cent of the workers of affiliated enterprises were not covered by a collective labour agreement or by a collective bargaining agreement; 31 per cent had signed a collective labour agreement and 49 per cent had benefited from a collective bargaining agreement. Common themes among the demands of unionized workers were wage increases, the number of bonuses, and extra-legal benefits. Labour stability and remunerated leave were also important matters of negotiation in collective bargaining agreements.
Child labour in the flower-growing sector is a controversial issue and has been the object of special attention in recent years. Colombian legislation allows children between 12 to 17 to work during the day in activities which are not harmful for their health, security, emotional stability, and which are subject to agreement by the Ministry of Labour. Wages, and social, legal and extra-legal benefits must be equal to those of workers of 18 years of age and above (obviously proportional to working hours). Given this, the flower-growing enterprises can legally employ children and in effect, one can find children labour among them (22). The majority are between 15 and 17 years. Enterprises recruit relatively few children directly (Reis, Sierra and Rangel 1995b) and in a very limited number of cases without limit of time contracts (Diaz, 1994). Employment is arranged through labour subcontractors (see Diaz, 1994 and Reis, Sierra and Rangel, 1955c). It seems therefore, that the presence of children is temporary and intensifies during periods of school vacation (Diaz, 1994 and Hoyos, 1996).
Nevertheless, the involvement of labour subcontractors gives rise to speculations and accusations as mentioned above. To this Diaz (1994) adds that "children are found in nearly all of the activities on the flower farms" and that "it is known that various enterprises use children in fumigation work (even if they work voluntarily)", which obviously is illegal. Given the fact that in a rural society it is fairly common for children to help in productive work from a very early age, there are also children "who help their parents during their workdays on Saturdays and receive some kind of remuneration". In spite of these statements, one has to recognize that the involvement of children in the flower-growing sector has existed from the very early stages of the industry. Since the adoption of the Children's Code in 1989, and of the most recent campaigns for the eradication of child labour to which the current Government has subscribed, major achievements have been reached: employers have committed themselves to limit the use of children under 18, and the Ministry of Labour has become more restrictive in granting permits for the use of child labour. In spite of this, children will continue to be involved in the sector, as this represents a strategy to increase family incomes (Diaz, 1994). More research should be undertaken on the issue of child labour in the flower sector with a view to documenting its incidence and consequences and measures taken to curb it.
5.9 Labour inspectionThe regional offices of the Ministry of Labour are competent to undertake visits and controls in the flower enterprises. In 1994 and 1995 as a result of international pressures against the use of child workers these visits intensified. Since then, however, the controls have become scarcer and the visits do not have any preventive character, rather they are undertaken when some type of denunciation is lodged by workers. The Ministry of Labour explained this in the light of scarcity of staff, its workload and the absence of adequate means of transport, in view of the fact that the farms are located far from urban centres and are often difficult to locate. In current practice, therefore, "supervision and inspection of labour conditions and social security for all workers in the flower-growing sector has been inexistent" (Diaz, 1994). It is therefore, important to strengthen the labour inspection activities of the Ministry of Labour and to strengthen collaboration with other units with similar control functions over the flower-growing enterprises, such as, for instance, the social security administration of the Ministry of Health and Environment.
5.10 Occupational healthThere are two main risk factors associated with flower production: handling and storage of toxic substances employed in fumigation and handling of residues, and risks associated with the ergonomic positions which work on farms require. In the classification according to degrees of risk which is established in the Colombian legislation for different kinds of work, flower industry occupies an intermediate position with a medium-level risk.
Every enterprise is enjoined to prepare an occupational health programme to improve the well-being of workers. The programme should have three components: a programme of preventive occupational health; a programme of hygiene and industrial safety (23); and an operating medical hygiene and industrial safety committee (24). It seems that healthy physical and mental condition of workers in a healthy environment is a major preoccupation of enterprises in the flower-growing sector, In effect, of the 53 firms surveyed by Aflocsa in 1992, 90 per cent had programmes or completed actions with respect to occupational health. Likewise, in Madrid 71 per cent of the enterprises interviewed in 1994 declared having programmes of occupational health. However, the impact on the target population is not really known. This, of course, depends intimately on the collaboration of the workers themselves. In fact, according to the Ministry of Labour, possible violations to the law could be observed particularly in the area of occupational health. For exemple, despite the fact that 90 per cent of enterprises affiliated to Aflocsa had implemented programmes of occupational health in 1992, only 64 per cent had established a hygiene and medical committee (25). According to interviews with workers analysed by Reis, Sierra and Rangel (1955b), in 1994 only 50 per cent of flower-growing enterprises in Madrid had such a committee, with the workers declaring knowing very little about the functioning of the said committee.
Programmes of preventive medicine in hygiene and industrial safety are required to elaborate a risk profile, that is the identification and evaluation of the risks the different activities in the enterprises present for the health and safety of the workers. In spite of this, only 57 per cent of the enterprises interviewed by Aflocsa in 1992 had defined a risk evaluation for all areas of work; 26 per cent had a partial programme and 17 per cent none at all. There are no records of work accidents or of professional illnesses in the flower-growing sector (26). Reis, Sierra and Rangel (1955c) find that "the typical occupational illnesses described by the workers are headaches, flu and dizziness" which "could be symptoms of intoxication" (page 9), but which at the same time are also symptoms of long periods of fasting and constitute illnesses which are toxic substances and solid residues foreseen by the Colombian legislation. Asocolflores has prepared a code of conduct in recent years in this respect (27). Diaz (1994) finds that "in some enterprises there areovens to burn green wastes and toxic residues (as prescribed by the law), but in most, these are often burned in the open air. The disposal of containers and packaging of pesticides varies from burning in ovens, in open air, reusing, throwing them away, selling them or giving them away"(28)
The flower-growing sector has attracted migrants in search of better economic conditions, as well as peasants moving away from zones with critical public security conditions. Unfortunately, the population growth has not been accompanied by a proportional increase in the service infrastructure. Public services in some neighbourhoods of Madrid, such as El Sosiego, are very poor, particularly where a majority of flower workers are living. Water is available only on some days of the week and only at some hours during the night or in the early morning. Waste collection is scarce and access roads remain unpaved. Conditions of crowding, uncleanliness and poverty are more extreme in the more peripheral neighbourhoods of the municipality. To this, one must add the fact that moving from rural to urban life carries with it the dilution of family values.
With both parents working -- thus breaking the traditional sexual division of labour -- and faced with new urban values, the peasant family tends to break down. This has led to separation among couples, desertion of the household, and a high ratio of female-headed households (see Diaz (1994) and Hoyos (1996), among others). Parent's workload precludes them spending sufficient time with their children, and the attention they give is of poor quality. Schooling facilities are inadequate, and with schooling hours restricted to only half a day the children have to remain alone, or in the care of older youngsters during their free time. Faced with this critical situation (which most probably is common in other flower-growing municipalities, too), Asocolflores has developed initiatives to increase the coverage of basic services and social programmes to the benefit of workers as well as neighbouring communities as follows.
Nutritional programmeVarious training programmes are undertaken to help families recover family and educational values. The objective is to help workers achieve an adequate nutritional balance and development of their children and families. These programmes also supply basic food stocks of a high nutritional content at subsidized prices. Between 1995 and September 1997, the enterprises affiliated to Asocolflores expended US$15,028 to help 2,015 mothers.
Community homes programme
Support is provided for the estblishment and functioning of community homes for children up to years of age through an agreement with the Colombian Institute for Family Welfare (ICBF) (30). Children are taken care of in these homes during the workday of their parents. Between 1995 and September 1997, 3,746 children attended at an expenditure of US$578,248. Housing programme
Initiatives are supported to facilitate the workers' access to housing subsidies in collaboration with a family compensation fund and other non-governmental organizations promoting the development of social housing. Close to 3,000 families in the flower-growing sector have received such a housing subsidy.
Recreational and sports programmeAssociations of flower growers periodically undertake various events such as sporting events, cultural encounters, flower festivals, contests, parades, etc. which integrate workers of the community. Approximately US$31,000 has been spent.
"Cultivating municipalities" programmeThrough this programme the Association of Flower Growers finances the training of mayors and local administrators, and collaborates with the municipalities in the development and financing of priority projects for local communities. Asocolflores spent US$9,235 in this programme up to September 1997.