Competition at the cost of wages & working conditions, says EU study
In their final conference held in Vienna on 24 April, members of the Pique project (research project on the privatization of public services and the impact on quality, employment and productivity) presented their findings of the study that was undertaken in four public sectors (postal services, electricity, local public transport and the health sector) across 6 countries of the European Union (Austria, Belgium, Germany, Sweden, Poland and the UK).
According to the results of the study that focused on company strategies and consequences for employment, productivity and quality, it was said that:
- There is more private ownership than competition
- Growing differences between customers and workers
- Competition at the cost of wages and working conditions
- Clear definition of quality is needed
- Need for better regulation
In a panel discussion focusing on postal services, it was mentioned that the market share of competitors in the country under study is less than 10%. Furthermore, according to the research, competing postal companies often use wage dumping as a strategy to compete on the market.
Regarding consumers, it was said that the market does impact them ; in a rather positive way for business clients who get lower prices and addition al services ; negatively though for everyday users who suffer a reduced scope of services, including fewer public mail boxes and closing down of post offices.
In terms of employment, the study shows that there is a massive reduction in employment before and after privatisation of the incumbent. Due to privatisation and liberalisation, there is also an increase in part-time work, fixed-term employment as well as a-typical forms of employment.
As for industrial relations, the study shows that as a consequence of liberalisation and privatisation a new market has emerged without sector wide regulation. There has also been a fragmentation of the bargaining structure between the ex-monopolist and the new competitors but also between « new » and « old employees ».
Wage differences were also noticed between the ex-monopolist and the new entrants on the market.
According to the study, wage dumping, an increase in the intensity of work as well as flexible and shorter working hours are consequences of liberalisation and privatisation in the postal sector.
As a conclusion, it was said that there is a need for regulation.
More information at: www.pique.at