Social dialogue takes shape in the European hairdressing sector

A European-level sectoral social dialogue in the hairdressing sector got underway in September 1998. Since its inception, the social partners have carried out joint actions in the area of vocational training and have initiated joint studies to gain a better understanding of the profile of the sector across the European Union. Overall, the hairdressing dialogue has had a very active first year.

A recent study by the Dutch consultants EIM (based on data provided by the social partner organisations) found that there are currently over 1 million individuals working in the European hairdressing sector, in over 155,000 salons. The nature of companies in the sector varies significantly, ranging from large high-street chains to small - often family-run - undertakings operated from private homes. The study found that European citizens visited hairdressers approximately eight or nine times per year, with some significant differences between countries, not only in the number of visits, but also in the average amount spent per visit. The share of part-time employment in this sector is relatively high and a number of countries have high levels of staff turnover. Trade unions are particularly concerned about low wages in the sector, while employers are more likely to raise the issue of high labour costs as a result of wage and tax burdens.

The social partners and the dialogue

Employees in the hairdressing (and beauty care) sector are represented at European level by the European Regional Organisation of the International Federation of Commercial,Clerical, Professional and Technical Employees (Euro-FIET). The Confédération Européenne des Organisations Patronales de la Coiffure, formed in 1998 by the European member organisations of the International Confederation of Hairdressing (Confédération Internationale de la Coiffure, CIC), looks after the interests of employers' organisations in the hairdressing sector.

The social dialogue in hairdressing is one of the "youngest of Europe's sectoral dialogues", having been established in September 1998. Areas of common concern identified at the outset were:

• competition facing the sector from undeclared labour;

• training;

• health and safety; and

• the impact of value-added tax (VAT) on employment

When the dialogue was first established it was rapidly realised that little information was available about the current position of the hairdressing sector in the EU. A study was therefore commissioned from EIM to gather basic background information on: the number of undertakings and employees in the sector; the nature of businesses; the impact of tax and social regulations on businesses; working conditions and collective bargaining. Based on this report, further issues for the social dialogue were to be identified.

As mentioned above, the draft report produced by EIM estimates that there are over 155,000 hairdressers' salons in the EU, a number of which are part of larger chains of salons. Three countries are identified as having a particularly high density of hairdressing establishments: Belgium, Finland and Italy. The nature of salons is also found to vary, with Austria, Germany, Denmark and Switzerland having a high share of unisex salons, while France, Italy and Luxembourg still have a high share of separate women's salons. The majority of salons operate from dedicated premises, though a number still operate from private residences. In recent years, there has also been an increase in so-called "mobile hairdressers" working solely in clients' homes. The study (which is due to be finalised in November 1999) reports an average turnover per salon of EUR 60,000-EUR 70,000 per year. While the report indicates few differences in the frequency of visits to hairdressers between men and women, this frequency varies significantly from country to country, as does the amount of money spent per visit.

The EIM study indicates that in the majority of countries, employees in the sector are covered by collective agreements. In terms of the regulations of working conditions, there are significant differences from country to country, with the highest level of regulation indicated in Sweden, France and Italy.

While this study is being finalised, the social partners have initiated a new project on new trends in the hairdressing sector and their impact on training and employment. This study is to assess product-related trends and the extent to which these are reflected in training.

Vocational training is also at the heart of a number of projects in the sector funded under the EU's LEONARDO programme. The first project aimed to establish basic training standards in the sector, while the second is concerned with their validation. In addition, it is also intended to initiate an exchange programme of trainees in the sector, which was discussed at the most recent plenary meeting of the social partners in the sector on 17 September 1999.

The social partners have expressed satisfaction at the recent agreement by the Economic and Financial Affairs Council of Ministers to include the hairdressing sector in the list of services which will be eligible for the application of reduced VAT rates under a forthcoming Directive. The Directive will allow Member States the option of applying a reduced rate of VAT on certain labour-intensive services for an experimental period of three years, with the aim of exploiting the potential for job creation in businesses offering local services (which is seen as substantial) and to assist in reintegrating some businesses which have drifted into the "informal" economy (EU9902152N). As well as hairdressing, the list of services covered includes the provision of small repair services, renovation and repair of private dwellings, domestic cleaning and care services. It will be up to individual countries to decide whether to take up the option to reduce VAT on these services. Hairdressing employers in particular have emphasised the findings of a study carried out in the Netherlands, which indicate that an additional 1,500-2,000 full-time equivalent jobs could be created in the sector as a result of a reduction of VAT, while at the same time reducing the scope of the clandestine economy in the sector.

Commentary

The sectoral social dialogue in the hairdressing sector, albeit still in its infancy, has already made some significant strides in terms of joint actions in areas of common concern. Joint studies have helped, and are continuing to help, to establish the baseline position of a sector undergoing some significant change. It is hoped by the social partners that their active participation in the process will ensure that this change is accompanied by supporting policies and training to boost employment opportunities and the career potential of the sector. (Tina Weber, ECOTEC Research and Consulting)