mai 17, 2014

Low Income & Working Poors in Work Integration Communities


 

Working poor and People at risk of social exclusion in Europe

 

Despite an ambitious goal of reducing 20million by 2020 the number of people experiencing poverty and social exclusion, poverty is increasing in the European Union steadily: in 2009 113millions 119millions 2011.

Beyond, this issue is the phenomenon of the working poor who raises much concern and interest.

In 2011, 8.4% of workers in Europe were poor. Disparities exist in the EU, 3.7 % in Finland and 4.6 % in Belgium against 17.6% in Romania and 13.8 % in Greece.

Understanding the phenomenon of the "Working poor" is essential to understanding the changes in society, social policy, working conditions. A poor worker means a person who has a job most of the year, but remains in poverty because of his low income (income plus social benefits activity). In many cases, poor workers are unskilled or low-skilled jobs, they have part-time jobs and do not have the benefits of a stable contract, entitlement to unemployment insurance.

The latest statistical report of European commission on « People at risk of poverty or Social exclusion » remains that in 2012, 124.2 million people, or 24.8 % of the population, in the EU-28 were at risk of poverty or social exclusion (AROPE), compared with 24.3 % in 2011. The AROPE indicator is defined as the share of the population in at least one of the following three conditions: at risk of poverty, meaning below the poverty threshold; 2) in a situation of severe material deprivation; 3) living in a household with very low work intensity.

At one extreme, the Member States with the highest AROPE rates in 2012 were Bulgaria (49.3 %), Romania (41.7 %), Latvia (36.2 %), Greece (34.6 %), Lithuania, Hungary and Croatia (all three around 32.0 %). At the other extreme, the share of the population at risk of poverty or social exclusion was the lowest in the Netherlands (15.0 %), the Czech Republic (15.4 %) and Sweden (15.6 %). Overall AROPE rate has slightly increased at EU-28 level between 2011 and 2012 (0.5 percentage points (pp)). The risk of poverty or social exclusion rose by 3.6 pp in Greece and 2.5 pp in Cyprus, decreasing by more than 3 pp only in Latvia (-3.9 pp).



(http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/People_at_risk_of_poverty_or_social_exclusion)

Looking at each of the three elements contributing to being at risk of poverty or social exclusion, 17.0 % of the population in the EU-28 in 2012 were at-risk-of-poverty after social transfers, meaning that their disposable income was below their national at-risk-of-poverty threshold. At-risk-of-poverty rate has overall remained almost stable in the EU-28 compared to 2011. The highest at-risk-of-poverty rates were observed in Greece and Romania (23.1 % and 22.6 % respectively), Spain (22.2 %) and Bulgaria (21.2 %), and the lowest in the Czech Republic (9.6 %), the Netherlands (10.1 %), Denmark (13.1 %), Finland and Slovakia (both 13.2 %). It is important to note that the at-risk-of-poverty rate is a relative measure of poverty and that the poverty threshold varies greatly between Member States. The threshold varies also over time and in a number of Member States it has fallen in recent years due to the economic crisis. When considering country-specific situations, the risk of poverty (after social transfers) increased the most in Austria (1.8 pp), although this maybe, at least partly attributed, to methodological changes causing a break in series in 2012, Greece (1.7 pp) and Luxembourg (1.5 pp) in 2012 and it decreased the most in Bulgaria (-1 pp). (Eurostat, 2014)

 

Standard of living and Low incomes

 


This phenomenon opens the debate on the level of income for certain jobs or social benefits. However, it is not so simple when you know the failure of social insurance policies implemented by some governments to allow out of poverty. The minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labor. Although minimum wage laws are in effect in many jurisdictions, differences of opinion exist about the benefits and drawbacks of a minimum wage. Supporters of the minimum wage say it increases the standard of living of workers, reduces poverty, and reduces inequality. The minimum wage is an income level that government decides to provide a minimum to live to all their citizens. In practice, this income is adjusted according to the type of household (number of children). Other benefits and other allowances can be simultaneously granted to the poorest citizens (e.g., housing assistance).
 
 
In France, the RSA is a good example. Five years after Martin Hirsch launched this allowance, only a third of potential beneficiaries have it. Does this mean that, somehow the working poor have found other income supplements? Do the working poor adapt their standard of living to low levels of pay? Minimum wages or income are they enough?
Not to dwell on the reasons for the failure of RSA, this article aims to describe circumstances in which certain jobs are low paid and what are the mechanisms resulting from certain wage policies. To do so, this article describes the case of wage compensation strategies at the heart of the system of the Communities of Emmaus Charities.
 
 
Social enterprises and Work Integration communities
 
The so-called Emmaus Communities are part of Work Integration social Enterprises (EMES, Borzaga, Defourny, 2001). Work integration social enterprises – WISE – are present in all the European countries. They have evolved from earlier experiences of Homeless shelter and housing charities, and based- on employment Workshop; but with at least two important differences: first, social enterprises generally are, or try to be, less dependent on public funds and pay more attention to market dynamics; secondly, they pursue the objective of ensuring that disadvantaged people earn income comparable with that of other workers. Those social enterprises provide disadvantaged workers with job training, to integrate into the open labor market. In some countries, WISE employ very specific groups of workers.
The second field of activity of social enterprises is represented by Social and Community care institutions. These social enterprises have been established to provide new services or to respond to groups of people with specific needs.
 
 
 
The emergence and subsequent development of social enterprises is due to a mix of factors, for instance, the decline in the rates of economic growth and the rise of unemployment, the increasing inability of traditional macroeconomic and employment policies to reduce unemployment, especially long-term unemployment among the disadvantaged and the low skilled, and the failures of traditional labor policies and from the difficulties in shifting from regulatory, and mainly passive, policies to active ones.
 
Social enterprises contribute to the creation of additional jobs. The WISE employ workers with minimal possibilities of finding a job in traditional enterprises. However, social enterprises make a sector with a high employment potential more dynamic, especially in countries in which the level of employment in the sector is still low (Borzaga, Defourny, 2001).
The social enterprises are innovative in the economic and social arena is that they are neither outside of the market, as are most public and traditional non-profit organizations, nor outside of the public system of resource allocation, as are for-profit enterprises. Rather, they use the reasons and the rules of both the market and the State, though not identifying themselves with either of them. Such a peculiarity makes social enterprises different from traditional non- profit organizations, which tend to be either “third parties” with respect to the market and the government (this is the case when they are funded either through donations or volunteers), or depend exclusively upon the allocative action of the public sector. Indeed, social enterprises represent a concrete and successful example of how civil society and private organizations can directly and autonomously deal with some of the problems shared by the community, without necessarily relying upon public funds.
There are different kind of WISE and this paper focuses on a specific WISE: the WIC means Work integration communities;
 
First, as far as employment and wages in the voluntary sector, we must know that the employees of associations find their wages and non-monetary benefits (health insurance, paid maternity leave) lower than in private and public sectors, but they do not consider their remuneration as particularly unfair. However, in the case of Emmaus Work Integration Communities, employees are not the only staff to receive compensation.
In the communities, there is three types of workers: Salaried staffs, Volunteers and Companions. The conditions of living of third type of staff is more relevant for our analysis, because Companions are both workers and beneficiaries of Communities Insurance and Aid system. Before to integrate Community Houses, they were homeless people at risk of poverty and social exclusion. So in the Communities, they can find a place to live and productive activities to do (such as Recycling, Deliveries and sales of second-hand furniture, goods, and white goods). Such specific structures that so called Work Integration Communities provide Companions a specific monthly income (stipend) of an amount that totaled around € 212. Therefore it is difficult for any salaried employee to complain of his own compensation when the Companions that are the main labor force, receive remuneration (fixed compensation) as derisory. However, in interviewing salaried employees, they explained that, at the end of the month after paying rent, fixed charges, food, taxes, they do not possess as much as € 212, while the Companions do not have any charges or taxes to pay. This is the most common case. But in some communities, some Companions must give or donate a part of their social benefits to the Community.
The compensation is an issue more and more present in the debates inside Emmaus Movement. Moreover, some of the Companions complained to provide a significant productive force and resources to such a low salary. The monetary incentive is a variable in the minds of staff because they are not the main labor force in the WIC organization. However, this does not seem to influence motivation.
One of the reasons that justify the low income is due to the fact that motivation is not pecuniary and often refers to solidarity organizations in which they work. In sum, Charity employees more easily accept a low pay. But the question is what motivates employees to work at Emmaus. The difference is the quality of the service provided by WISE and WIC, Charities, and Social enterprise; Even though, Staff employed in such organizations reach up results. The difference is based on creation of cultural values. The involvement of Charity workers depends on Ideals and values they share with the Charity they got to involve in. This intrinsic motivation is essential to describe the working relationships and Management at Emmaus.
An analysis of several Work Integration Communities (in France, Spain and Britain) is used to describe the performance of employees at Emmaus. Some authors state that "monetary incentives may decrease the performance of individuals by affecting their intrinsic motivation" (Frey, 1997).
 
Working Poors and Companions in Emmaus Work Integration Communities
 
My investigation in Emmaus Communities in Europe provides a comparative level of remuneration in Emmaus Communities in France and Spain. This comparison sheds light on Pay performance relationship in Emmaus’ WIC in different national contexts. The two communities differ: in the French community, there are staffs, volunteers and companions; while in Spain, all the staff is paid. In France, the amount of income allows to distinguish one who is "helping" and the one who is "helped".
The first element of comparison is based on the qualification of the paid staff. In the Spanish structure, all the staff is employed. In France, the majority of salaried staff occupies management and administration functions. Otherwise, the Companions represent the majority of workers in the French Community. The survey describes the level of executive: Compensation of Salaried coordinators in Spain vary between € 1,163 and € 932 (respectively Coordinator and Deputy Coordinator’s incomes). In France the income of coordinators ranges between:
-          € 2,393.90 + 13th months for the Director,
-          € 2,218.57 + 13th month for the Deputy Director,
-          € 2,295 + 13th month for the manager of Work Integration structure.
 
The wages of team leaders in Spain is 848 €; while the income in France for the same position is between € 1321 + € 145 bonus seniority for the manager of the shops and € 1,348 for the manager of the groceries.
Finally, compensation of staff involved into work integration program is approximately € 802. But this compensation depends on working time (full time, part time).
The comparison is difficult for several reasons: minimum wages are different in France and Spain. Functions and positions are not the same from one community to another. Indeed, the hierarchy in Spain is such that there is more coordination by sector of activity. Each sector has a manager and an assistant manager. While in France, the only coordinators and managers are in the shops and the Work Integration Workshop.
The difference in the payroll results of the different step of the Work Integration process. In Spain the majority of functions is occupied by employees. In Spain, the organization of work is related to a better distribution of positions and salaries. The remuneration policy particularly tends to balancing positions, functions, salaries.
This strategy is based on the fact that there is not the same hierarchical relationship between supervisors, workers, and beneficiaries as in the French community. Is the abolition of the status of Companion allows harmony in wages.
 
In Spain, this wage policy is based on ideological changes in the Emmaus International Movement, and so compared to France. In France, ideology is based on helping the people at risk of poverty and the one who suffers the most. The criteria of Exclusion makes the Companions principal beneficiary of the system. In Spain, Emmaus Ideology is based on the defense of the environment. The entire group is identified as Environmental operatives. Therefore, there is no differences between the people at risks of Exclusion and the staff supervising them. This elimination of disparities allows a better group cohesion and greater job satisfaction. In the French Community, the high level of staff remuneration, added to differentiation between the helper (the staff) and the helped (the companions) do not promote group cohesion.
But beyond the level of compensation of employees, the question thickens in the case of the Companions.  At first, a companion is a people at risk of exclusion that has not made the choice to work in an Emmaus community: to put it simply, the choice is limited between to work and to live in a community and to be on the street.
In France, Companions have a special legal status: they are Solidarity Workers : In France, the compensation called is € 212.33 / month. Work rules are close to the Labor rights law: 36h weekly, 2 ½ days off per week. The savings adds € 6 allocation hygiene. Companions receive a commission on Seasonal sales. The low income is offset by the allocation vacancy. These are 40 € per day of holiday. (Either 15 days holiday after 6 months, 2 days ½ per month). For each of the companions, the community contributes to social security on the base of 40% of the hourly rate of the minimum wage (7.61 * 40 % = 3 € 04/h. The number of hours was divided on the basis of 169heures per month).
In England,  Emmaus companions can integrate WIC by multiple ways: They can be run by other services: in general, the penitentiary and probation services; Social services working on addiction to drugs and alcohols, accommodation and night shelters, and other social workers who work in the field (in the street). The beneficiary may come by itself. Finally, the third scenario, but more rare, the companion is redirected by another Emmaus structure. Emmaus Cambridge Community provides food, basic clothing, health and safety, medical expenses and accommodation in exchange for a commitment to work 40 hours per week to the best of their ability. An essential aspect of the Emmaus philosophy is that the Companions waive all benefits and social benefits (unemployment, minimum income allowance, disability living); they waive all access to other benefits (pensions), as they integrate the community. However, it is recognized that the Companions need a subsistence income.
In England, the weekly allowance is currently a total of £ 48, £ 8 are spared on account to ensure the release of Companions. This amount is reviewed annually by the Board of Trustees.
After 13 weeks in the community, the Companions are entitled to a long weekend. This weekend starts from 17 pm Friday until 8:30 on Tuesday. For the first two long weekends, the Companions may receive a loan of £ 60 in addition to their compensation.
This loan is repaid at £5 per week deducted from the allowance. In addition, the Companions are entitled to a travel allowance of up to £ 65 as a ticket pre-booked trip.
After 26 weeks, the Companions are entitled to a week's holiday. This leave extends from 17 pm Saturday until 8:30 on Monday after the week off. The Companions receive Holiday allowances of £135 for 5 nights or more. Companions are also entitled to Travel benefits of £65 on the same terms as long weekends. If a Companion is in the community for one year, the vacancy allowance is treated as a gift, not a loan. This is not refundable.
Emmaus Cambridge recognizes that there are occasions when employees need to take time off work to meet family commitments, or to deal with sensitive events, such as bereavement or serious illness of close relatives. Executives at Emmaus Cambridge encourage staff to take their leave, but under specific conditions.
 
In Spain, a community applies a remuneration linked to a Work Integration process. Thus, workers can apply to the same positions and be paid differently. All Companions brings together workers from social profiles and programs under different state aid. This transition path then allows the control of workers and income distribution (Salanié, 1997; Malcomson, 1999). This is done on various levels to integration contract. In this case, the beneficiary group is divided into integration contracts involving a minimum income recipients. This distribution of status and income is as an incentive for many Companions. This promotes the Inclusion process leading up to obtaining the minimum income.
Group A includes persons who may be signing a contract of employment, if the possibility existed. So these are people who have the level of skills, and social skills to perform work in a standard company. In this case, it is a cyclical problem. They have an income of 512.46 euros/month and work 132heures monthly and more.
Group B includes persons who are in the structure long time and have acquired skills and work skills to work independently without need for support. The document describes them as people who can work, but they are not on their full availability, for reasons of physical disability or absence from work or either of other reasons. But they are motivated to develop their work and advance in the process. These individuals are not fully re –inserted. They have an income of 497.86 euros / month and 132 monthly and work more hours.
Group C consists of people who, for some time past, and who have developed certain skills may pass into group B. These are people who, unlike the previous group , show no interest or motivation to change the situation. These individuals do not achieve the objectives specified in the contract of compromise. They have an income of 438 euros / month and 132 monthly and work more hours.
D is the group of people without contracts. These are people who in the circumstances unable to produce a standardized work. Their work rate is low. These people suffer from a large set of complex issues; but also of those who arrived in the program for less than a month. They receive an allowance of 395.66 euros / month and 132 monthly and work more hours.
Finally, the last group E includes those who have signed a contract with the association according to the operational requirements. They are ordinary contracts, full-time. Individuals with incomes of 763, 20 Euros / month and work full days (40 hours). Of course, the risk is to lead to conflicts and inconsistencies.
Indeed, this leads to some paradoxes.
For instance, an infidel X is a senior person over the age of 45, he integrated the WIC with an integration contract. The compensation of individual X is € 763 monthly.
Individual Y is another senior over the age of 45, he integrated the WIC with an allocation of type A until its status as beneficiary becomes insertion contract. The compensation of Individual Y is € 512.46 monthly.
However, Individual Y is a former teacher in industrial technology, speaking 4 languages. He has a high skills level, while Individual Y is a former gardener. Individual Y is the manager of X; Y is less well paid than his subordinate X.
 
In conclusion, the condition of work of Companion in Emmaus Work Integration Communities is one of very good examples of the working condition of Working Poor in Europe.
As many working poors, Companions is both the beneficiary and the main force working Communities. Its position should legitimately provide it with the means and resources necessary for their well -being. However, the field survey showed that the latter sometimes suffer from a lack of recognition and low pay. . Was instilled in the principle that the companions make their work with dignity. But apart from the dignity and solidarity benefits related to community life they are winning at working within the Communities.
 
 

 
 
 
 

 


 

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