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    Pervasive effects of precarious work

    Employment in Ireland is often spoken about in terms of the economic recovery and falling unemployment rates. However, the real issue that needs to be addressed is job quality and the types of jobs that are being created. There has been increasing recognition that for many workers in Ireland and Europe employment has become insecure, with temporary and casual work increasing. The FEPS-TASC Report, ‘Living with uncertainty: the social implications of precarious work’, sets out to map precarious work in Ireland, and the impact this type of work has on precarious workers’ lives. This research involved 40 in-depth interviews with men and women living in Ireland, aged between 18 and 40, who work or had worked in temporary employment, were employed on a part-time basis with irregular hours and/or were hired on a self-employed basis. There are many definitions of precarious work, as no agreed definition exists. However, for the purpose of this report, we are focusing on employment that is contractually insecure, which includes part-time with variable numbers of highly skilled people are now being locked into insecure employment. A number of sectors of the Irish labour market have a disproportionate share of precarious work. Eight sectors scored higher than the national average. Transportation had high levels of solo self-employment, human health was characterised by a high level of part-time work, and education had a high level of temporary work. The remaining sectors (construction, wholesale and retail, accommodation and administration and support) had two or more dimensions of precarious work at relatively high levels. “Other NACE sectors”, which include occupations such as hairdressers, sports facilities workers and artists, scored high on all three dimensions. To understand the effects of precarious work, we need to look at life outside of the workplace, like the house-hold situation and access to social supports and services. We need to examine the consequences of precarious work for quality of life because, even though the basis of contractually precarious work might be similar in different countries, the experiences differ as a consequence of the availability of public services and state subsidies – for example, universal healthcare or child-care. The following are our main findings in the report. Precarious workers did not choose to be precarious First, the report found that none of our participants chose to be in temporary and “part-time with variable hour” employment. Much of solo self-employment was also not entered by choice but interviewees were forced into this arrangement as a condition for their employment. Importantly, we discovered that many people are unaware that they are working precariously; there are many workers who are working without a contract, or who assume a rolling contract to mean permanency. This finding points to the need for employers to be up-front about contractual status. Precarious workers cannot afford to be sick The report found that precarious working conditions can have a negative effect on physical and mental health. On top of that, the majority of participants cannot afford to be ill. The burden of expense is felt in two ways: through no paid sick leave, and as well as the expenses of paying to see a GP and for medication, tests and follow-up appointments. This lack of support can result in having to make hard decisions such as whether to first buy food, or pay bills or rent. Medical cards and GP cards are means-tested and most precarious workers do not fit the eligibility criteria to obtain them even though they are not able to afford primary care services. Precarious workers have difficulty finding stable housing The housing crisis in Ireland affects families and individuals with very different backgrounds. However, the difficulties that people in non-standard employment encounter are even more pronounced, as they lack economic stability. Precarious workers are not left with any other choice but to rent, or if the option was available to them, to live in the family home. With tightening mortgage regulations, (which followed the economic crash), and soaring property prices, people working in non-standard employment are unlikely to be approved by any lending bank. At the same time, renting in the private market has become prohibitively expensive in the last number of years. This has resulted in bouts of ‘hidden homelessness’ for many of our participants, situations during which they have nowhere to live and are forced to sleep on friends’ couches or stay with their parents. Precarious workers postpone having families It emerged from our interviews that having children was often challenging for precarious workers. While some decided to have children regardless, the majority of our participants continued to postpone childbearing. Postponement of childrearing amongst precarious workers is often not a choice based on individual preference. Instead, while precarious workers want to have children, their financial insecurity, directly related to their contractual insecurity, prevents them from becoming parents. For those who already had children, maternity leave and childcare are the most important issues that they face. It became clear through the interviews that maternity leave is challenging for women in precarious employment, especially for those who are on temporary contracts. First of all, the contract may be shorter than the actual leave. Likewise, for those who were on temporary contracts, maternity leave is a possible obstacle for the continuity of their employment. Formal childcare is too expensive for participants who have insecure incomes and thus alternative arrangements are often necessary. In the most extreme cases, one of the parents has no other choice but to quit their job. Such a decision is usually not based on traditional gender roles, but on employment status. Based on the interviews, precarious work does not appear conducive to having a family. Precarious work leads to insecure lives Contract insecurity and wage unpredictability lead to workplace insecurity and create insecure and unpredictable lives. The lack of independence that precarious work entails often creates a situation in which many people must live with their parents and thus are unable to develop independent lives. Public benefits and support services, such as state access to free primary care services, accommodation,

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    Protect!

    The new Minister for Social Protection will face a number of significant challenges. She has to deal comprehensively with the damage of the immediate past, while expediting long overdue reforms, and at the same time stay on top of new welfare challenges associated with changing forms of family, employment patterns, demographic trends: all betrayed by pervasive inequalities. The UN has provided some valuable guidance for the new Minister – in the Concluding Observations of the United Nations Committee on Economic, Social and Cultural Rights on the third periodic report of Ireland about implementation of the International Covenant on Economic, Social and Cultural Rights of June 2015. The Committee strongly advised that austerity policies should only be temporary and only cover the period of the crisis. They recommended that Ireland restore pre-crisis levels of social protection. They stated that Ireland must strengthen policy capacity with a disaggregated data strategy and adequate rights and equality-proofing mechanisms. Five key priorities for the new Minister for Social Protection are suggested: Redressing the impact of austerity cuts on children at risk of poverty, young people under 26, and lone parents. These groups suffered serious collateral damage from austerity budgets that failed to protect the vulnerable; Reversing reductions in welfare payments that left recipients below the poverty line; Tackling long-term unemployment in a manner that promotes inclusion in the labour market for all those who want employment, including people with disabilities, and all women; Ensuring the contribution of social welfare payments to the growing crisis in family homelessness. Changing the male breadwinner model and responding to new forms of family diversity.  The universal Child Benefit was reduced over a number of austerity budgets from €166 per month in 2010 to €130 pm in 2013, with additional cuts to the higher payments for the 3rd + child. This payment was increased by €5 over budgets 2015 and 2016 and is now €140. The combined impact of these cuts and parental unemployment means child poverty doubled over the crisis period. Social-welfare-dependent single families with children suffered cumulative cuts over the crisis. The number of jobless households with children also burgeoned. Tackling child poverty is far more complex than simply restoring child benefit to its pre-crisis level. The new Minister must take seriously the advice offered by the National Economic and Social Council (NESC0 and by various commissions and expert groups. A tiered and better targeted child-income-support system is a prerequisite for efficiently tackling child poverty but avoiding unnecessary unemployment and poverty traps. Austerity disproportionately damaged the young. Its mechanisms included emigration, deterioration in the quality of employment and severe social welfare cuts – with job-seekers’ allowance reduced by more than half for those under 25 (from €204 to €100). Many young people have emigrated to avoid not only poverty and unemployment but also low-quality employment and underemployment; others remain trapped in the parental home unable to afford the transition to independent adult life or to move to larger urban centres to seek employment. An immediate priority is resolving the situation of the 600 young people who, unable to sustain residential tenancies on such an inadequate income, are left dependant on emergency homeless services. The new Minister should revisit the previous Minister’s overzealous cuts to lone parents’ income disregards, and the decision to compel lone parents, once their youngest child is 14 years old, to work full-time. It is clear that this policy is not conducive to the wellbeing of parents or children. Various creative alternative reform proposals have been offered to promote a more positive reform agenda capable of addressing poverty and respecting parents’ choices for reconciling care work and paid employment. While the EU Survey of Income and Living Conditions (SILC) shows poverty, deprivation, consistent poverty and inequality rose over the crisis (Table 1), Watson and Maitre (2013) still nd high levels of efficacy in Irish social transfers. Despite social welfare cuts, Irish welfare payments were relatively effective in cushioning people from the worst effects of rising unemployment and falling incomes. Social transfers reduced the post-transfer poverty rate by 53% in 2004, but this rose to 71% by 2013. Despite such an impact, deprivation rates still rose from 13.7% to 24.5% between 2008 and 2011, and up to 30.5% in 2013 before decreasing. Deprivation rates for lone parents, however, peaked at 63% in 2014 (CSO). The NESC has outlined the significant social impact of the crisis (2013). It estimated that 10% of the population experience food poverty. There is growing use of ‘soup kitchens’ and runaway homelessness. The welfare system is the core mechanism for economic equality. There are, as Micheál Collins argued in last month’s Village, lessons to be learned from mistakes in previous recoveries where the failure to prioritise welfare increases saw social-welfare-dependent households’ fall dramatically behind general incomes. The new Minister must commit to, and budget for, adequacy and indexation of all social welfare payments, not just those considered ‘deserving’. These increases need to be a policy priority, not crumbs – or an afterthought. Since 2011 social welfare rates have not been decreased except for two social welfare cuts which decreased the adult working age payment by €16. As Focus Ireland recently observed these cuts coupled with an increasing cost of living, have resulted in a considerable erosion of living standards for those reliant on social welfare payments as can be seen in this comparison of recent increases in the Consumer Price Index (CPI) with stagnant Irish social welfare rates (Table 2). The last five years have seen an unprecedented level of reform in the State’s employment services, in particular merging institutions into INTREO. The Pathways to Work 2016-2020 policy document does acknowledge services are struggling to reach quality standards, with uneven service delivery and poor guidance capacity. Other capacity gaps are now being addressed by ‘Job Path’, private-sector services for the long-term unemployed. These are based on a ‘pay-by-results’ model which will probably increase pressure on people to take poor-quality employment. The new Minister must carefully consider whether this work- first activation model

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    Get moving on that social housing

    Homelessness was always a winter story and affected individuals only. Now it’s an all-year narrative and the homeless are no longer just isolated individuals -although they are still there – but families, in all their forms and colour. Our recent research for the Housing Agency report, ‘Family experiences of path- ways into homelessness – the families’perspective’, sheds some light on the causes,consequences and features of these unwelcome developments. The research was basedon interviews with a sample of 30 families,including a mixture of family types (couples and one-parent households with children of differing ages, as well as families from minority – Traveller and migrant – backgrounds). The human story was com- pelling. Both of us, ‘seasoned’ researchers long involved in the homeless field, were shocked by the conditions and circumstances in which the families found themselves. Some were homeless for months, but for others it was years. We met families living for months in one room of a hotel. Others lived in damp basements and rooms, with heat turned on for only a few hours a day. Most of the families we met no longer had possessions, apart from those they could put in a suitcase. They were broke, having used up whatever savings they had. Parents were distressed, despairing, humiliated – often eg under curfew – but absolutely determined to ensure their children survived the experience. At a policy level there were clear findings. Almost all the families had lived in private rented accommodation: none were dispossessed mortgage-holders. Many had been in private rented accommodation that they liked, some in the same home, for long periods, whilst others moved around frequently.The problem was that this time, when they left or were evicted (the euphemistic term is ‘issued with a Notice of Termination’), they could not find an affordable alternative. They could not get back in. They typically called prospective landlords, or called door-to-door, 50, 60 times only to find the accommodation already gone, or, more likely, to be assailed with “no rent allowance here”. For some, leaving or being evicted was a sudden and brutal process: eg a violent ex-partner turning up and causing trouble, a ratinvasion or the roof falling in. For the majority, though their departure was the landlord deciding to get more rent from tenants. For tenants told to leave, the one thing theyneeded more than anything else was a reference for the next landlord, so they did not argue. Campaigns for tenants to be ‘better informed’ of their ‘rights’, when they have almost none, overlook the inequality of power. With little new housing built in recent years and a dearth of social housing, which can be traced to 1987, a previous austerity period and its cuts in spending on local authority housing, our rising population has put more pressure on accommodation. The bottom of the private rental market gets ‘squeezed’, and those on low incomes are squeezed out. As demand rises, landlords know that they can charge more. Rents move higher and higher above the rent supplement levels that the Department of Social Protection pays, putting them out of reach of those on low incomes. The introduction of the Homeless Housing Assistance Payment (HAP) which permits a 20% increase in rent supplement marks a welcome recognition that rent supplement levels are no longer adequate. The homeless families to whom we spoke had many ideas on how to solve the homelessness crisis, including the opening up of boarded-up local authority homes. For them(and we should listen), local authority accommodation was the ultimate solution, offering security, acceptable standards and affordable rent. The Social Housing Strategy 2020 – a six-year plan to address social-housing needs – commits to the provision of 35,000 new social-housing units, over half (18,000 units) of which are due to come on stream by the end of 2017, with the remainder (17,000 units) scheduled for completion by the end of 2020 at a cost of €3.8bn.While the requirement is clearly immediate, a useful additional measure has been the introduction of a Ministerial direction which requires named local authorities to allocate up to half of available social housing units to homeless (and other special needs) households for the first six months of 2015. Notably, no-one we spoke to expected to get back to private rented accommodation, ever. Kathy Walsh and Brian Harvey Kathy Walsh is Director of KW Research and Associates Ltd, and an experienced social researcher and strategic thinker with expertise in equality and integration.

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