Developments in the Netherlands: the Eemshaven case and ‘social return’ Petra Oden professor of applied sciences

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Developments in the Netherlands: the Eemshaven case and ‘social return’

Petra Oden

professor of applied sciences

Centre for Applied Labour Market Research and Innovation

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22-01-2013 Conference Public Procurement 2

1. Introduction

2. Labour migration: Eemshaven case 3. Social Return

Introduction

Eemshaven case and ‘social return’

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Centre for Applied Labour Market Research and Innovation

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Energyport Groningen/Eemshaven/Eemsdelta

Eemshaven case

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SOME OF OUR PARTNERS

Eemshaven case

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5 professors of applied sciences:

1.Work Organization and Labour Productivity – Dr. J. Christis 2. Sustainable Human Resource Management – Dr. L. Beukema 3. Labour Participation – Dr. L. Polstra

4. Flexicurity – Dr. H. van Lieshout

5. Legal aspects of the labour market – Dr.mr. P.A.T. Oden Centre for Applied Labour Market Research and

Innovation

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Legal aspects of the labour market

Working of rules on the daily workfloor

1. Labour migration 2. Social return

Centre for Applied Labour Market Research and Innovation

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Posting of workers

800 Polish workers posted in Eemshaven

Eemshaven case

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Groningen District Court , 5 October 2012

Eemshaven case

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Article 3 section 1 Posting of Workers Directive (96/71/EC)

a. Maximum work periods and minimum rest periods b. Minimum paid annual holidays

c. Minimum rates of pay, including overtime rates; this point does not apply to supplementary occupational retirement pension schemes d. The conditions of hiring-out of workers, in particular the supply of

workers by temporary employment undertakings

Eemshaven case

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Eemshaven case

In the Netherlands Posting of Workers Directive (96/71/EC) is implemented in:

 WAGA:

Wet Arbeidsvoorwaarden Grensoverschrijdende Arbeid = Act on Employment Conditions Cross-Border Labour

 Wet AVV:

Wet op het algemeen verbindend verklaren van CAO’s = Act on Extension of Collective Bargaining Agreements

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Dispute:

1. Wage

2. 8% holiday allowance 3. Timesheet leave

4. Irregular working time allowance

Eemshaven case

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Eemshaven case

FNV Remak Court

Wage CAO € 11

+

€ 2.95 in kind

CAO, AVV -> PWD

8% holiday allowance = wage ≠ wage = wage

Timesheet leave = core PWD ≠ core PWD ≠ core PWD

Irregular working time

allowance = core of PWD ≠ core of PWD = core of PWD

CAO = Collective agreement

AVV = Act on Extension of Collective Bargaining Agreements PWD = Posting of Workers Directive (96/71/EC)

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Consequences Remak case

Eemshaven case

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Socially responsible public procurement

Social Return =

A condition in a tender in order to create workplaces and

apprenticeships for people with a large(r) distance to the labour market

Also:

Social Return on Investment SROI or Contract Compliance

Social Return

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Grant: RAAK-MKB

Social Return

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Gert Walhof Petra Oden Louis Polstra

Professor of applied sciences Professor of applied sciences Purchasing management Labour Participation

HanzeResearch Entrepreneurship Centre for Applied Labour

Market Research and Innovation

Social Return

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Learning community

of professors of applied sciences, lecturers and students

Social Return

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Social Return

March 2012 until June 2012

October 2012 until

February 2013 until

September 2013

September 2013 until

March 2014 June 2012

until

October 2012

•_{Project 1}

•_Research:

• SME <-> (semi)public organisations

Case studies best practices

•_{Project 2}

•Innovation :

• group sessions

Development of requirements

•_{Project 3}

•_Research:

•SME <-> (semi)public organisations

Implementation

•_{Project 4}

•Innovation:

•Evaluation and adjustment Evaluation and adjustment

•_{Project 5}

•_Tools

•_Roadshows

•_Completion

Tools and Completion

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Recommendations SME:

1. If you want to do business with (semi) public organizations you have to focus on SR.

2. Try to affect the conditions the (semi) public organizations formulate in their tenders.

3. Make the necessary adjustments in the organizational structure of your company in order to apply Social Return.

Social Return

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Response to the recommendations by SME:

- SME choosing SR: black/white

- Transparency in the procurement process is missing - No front office for questions about SR

- Lack of control afterwards

- Influence of the economic crisis on activities regarding SR

Social Return

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Recommendations Purchasers:

1. SR has to be part of the strategic policy of the organization.

2. Make the necessary adjustments to create a transparent and consistent purchasing process.

3. Avoid tenders above the threshold of European procurement law

because national procurement makes it easier to formulate conditions for hiring people with a distance to the labour market.

Social Return

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Response purchasers on the recommendations:

- SR is part of strategic policy, but not always well executed - Purchase processes are not transparent and consistent

- Some organizations apply illegal SR conditions in their tenders, others do not use all the permitted conditions

Social Return

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Thank you for your attention!