David Cameron's recent
plans to make it easier to sack staff in the first two years of their employment have sparked an
intense debate over the nature of Britain's labour market.
After the "fluffy years", it was only a matter of time before the crook-eyed default Tory approach to the world of paid employment would resurface.
The problem for Cameron and the bosses' organisations, however, is that - unlike the Thatcher years - there's very little left in terms of workers' protection for the government to wade in with the axe.
Extreme job insecurity in the UK is already a growing reality.
According to the OECD, Britain is in the top three along with the US and Canada (and well under the OECD average) in the
strictness of employment protection index (1985-2008), which measures "the procedures and costs involved in dismissing individuals or groups of workers and the procedures involved in hiring workers on fixed-term or temporary work agency contracts".
Given the companies' free access to casual staff on "zero hours contract", or the free use of "temps" (which,
by law, can be hired repeatedly on fixed-term contracts for up to four years before
any tie comes into place), the lax regulation on probationary period for regular staff, as well as some of the lowest levels of statutory redundancy pay in the Western world, the notion that Britain's employment regulations may be at the core of the current dole rates is simply comedy material.
If we carry on this way, soon the only crusade left for the British Chamber of Commerce and the Tories to embark upon under the guise of "cutting red tape" will be against the right for workers to empty their bladder or take a crap at work.
However, what the last few days also highlighted is the almost total abdication on the part of the left and Labour in the fight against the galloping job insecurity and its noxious effects.
This line from the normally commendable
Stumbling and Mumbling blog bothered me to the extreme. While sceptical of David Cameron's proposals, author Chris Dillow also wrote:
"There’s good evidence that [employment protection] reduces workers’ effort and increases absenteeism. This suggests that - at the margin - Cameron’s proposals might increase labour productivity".
Now, the reason why the above quote bothered me so much is that it shows how toxic and widespread certain myths are that even well-informed and well-read people can buy into them without questioning.
In brief, the
Daily Mailesque-fable that a permanent job or certain guarantees at work will automatically turn you into a slacker. They ain't gonna sack me, so why bother, basically.
And how can you dispute that if even the usually meticulous and pro-left Chris Dillow can cite "good evidence" on the matter?
Except that said "good evidence" points to three pieces of research from Portugal and Italy which are
solely and
exclusively focused on specific (and already obsolete) legislation passed in those two countries in the 1980s and 1990s. Those laws were extremely protective - overly protective in fact - in a way not remotely comparable to anything Britain ever experienced, not even at its unionised peak.
It's like saying "there's good evidence that January is not a cold month and in fact look at this link to prove it". Except that it points to average January temperatures from the Canary Islands and Dubai.
The fact is, instead, that there's literally a mammoth body of research out there warning of the toxic long-term effects of job insecurity (click
here for a summary).
Over the years detailed studies took place around the world, from the US and Canada to Australia, Sweden, Korea, Germany and more. The findings leave room to no doubt: there is a clear correlation between excessive levels of job insecurity and a variety of negative outcomes.
The initial advantages of "increased flexibility and lower costs" for the employers are undisputed. But little is ever said
about the long-term effects that "casualisation may have on important aspects of national economic performance such as skill formation" and, most importantly, the ticking time-bomb that is widespread casualisation as weighed against "long-term financial planning".
But the
strongest and most consistent evidence is the one seen across firms, industries, and countries linking job insecurity with "negative employee attitudes, behavio[u]rs, and health" and with the fact - as noted by several researchers - that "job insecurity is more stressful than job loss itself".
Amongst the negative effects, a "powerful negative influence on motivation", "reduced effort" and "poor safety compliance by employees". Low levels of job satisfaction are also associated with negative employee attitudes, lower customer performance and effectiveness with customers as well as with -in turn- a detrimental effect on group morale.
And that's without taking into account what "
the longer term negative effects on workers' depression levels", or "
the systemic [relation] between job insecurity and marital and family dysfunction" or, even, the proven effects that "parents' job insecurity has on
children's school performance as measured by grades" .
The
fact that "job insecurity reduces job satisfaction is attributable to the uncertainty of not knowing how to predict or control job threats".
And that's because, while insecurity in the short-term may spur a worker to perform better if the goal is a latter stage of more protection and various perks, an ongoing perception of "precariousness" will start having an adverse effect, as the worker will feel increasingly uncertain that their persistence can be sufficient enough for them to retain their job.
For a worker with little to lose, the lack of ties will offer no incentives to stop them from slacking off or "looking elsewhere" altogether.