Professor Peter TurnbullEmployment & Social Affairs Committee7th May 2015Social Dumping in the SEAM

“We cover all of

Europe – a bit like a

social disease”**

* Michael O’Leary, New Economic Leaders Forum, Dublin 19th April 2013

A Self-Employed Person in Ireland

o owns his or her own business;o is exposed to financial risk by having to bear the cost of making good faulty or

substandard work carried out under the contract;o assumes responsibility for investment and management in the enterprise;o has the opportunity to profit from sound management in the scheduling and

performance of engagements and tasks;o has control over what is done, how it is done, when and where it is done and whether

he or she does it personally;o is free to hire other people, on his or her terms, to do the work which has been

agreed to be undertaken;o can provide the same services to more than one person or business at the same

time;o provides the materials for the job;o provides equipment and machinery necessary for the job, other than the small tools

of the trade or equipment, which in an overall context would be an indicator of a person in business on their own account;

o has a fixed place of business where materials, equipment etc. can be stored;o costs and agrees a price for the job;o provides his or her own insurance cover (e.g. public liability cover); ando controls the hours of work in fulfilling the job obligations

http://www.welfare.ie/en/Pages/Code-of-Practice-for-determining-Employment-or-Self-Employme.aspx

“Bogus” Self-Employment

Code of Practice Brookfield Contract

“can provide the same services to more than one person or business at the same time”

contracted directly to work exclusively for Ryanair

“provide materials for the job” uniform and ID card

“provide their own insurance cover (e.g. public liability cover)”

“The Hirer [Ryanair] will have in place at all times and in full force professional errors and liability insurance which will cover the company representative [pilot] in relation to the services provided for the Hirer”.

“have control over what is done, how it is done, when are where it is done and whether he or she does it personally”

“The Hirer reserves the right to change the scheduling subject to operational requirements. They do not form any part of the agreement between the Contractor [Brookfield] and the Employment Company [pilot]”.

“Contractual Boilerplate” and “Bogus Contracts”

o “This is a Contract for Services” (emphasis added)

o “If the company representative [pilot] cannot perform the Work the Employment Company [the pilot’s company] shall provide a substitute to perform the Work provided that the substitute shall have the necessary expertise and qualifications to perform the Work and is acceptable to the Contractor [Brookfield] and the Hirer [Ryanair]” (Section 1(c)).

Can Pilots Provide a Substitute?o Roster – one week’s noticeo Rating – limited to existing “pool”o Working time – compliance with FTL“Practically speaking it becomes a non runner, particularly when Ryanair retain the right to have the final say in who they will or won’t accept as a substitute. The final choice rests with Ryanair, NOT with the pilot! I’m not aware of any substitutes having been made or accepted in the past. In my view it’s a fig leaf provision to give Brookfield/Ryanair an arguable position in a court but in practice it’s a non-starter” (IALPA rep).

The Danish Flexicurity Model

DECENT WORK

Flexibility in

Employment

Active Labour Market Policies

Social Protectio

n

Questions and Considerations for the

Employment and Social Affairs Committeeo Is rule shopping …

- socially acceptable?- sustainable?- safe?

o Employment regulation- macro (Europe’s

“competitive social market economy”)

- meso (sector-specific regulations)

- micro (propriety and enforcement

of national employment law)