Thematic feature - unskilled workers

Albarracín, Daniel

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Article

Thematic feature - unskilled workers

Published: 25 May 2005

This article gives a brief overview of the industrial relations aspects of the topic of unskilled workers and unskilled work in Spain, as of February 2005. It looks at: national definitions of unskilled workers or work; the number of unskilled workers and workers in unskilled jobs, and the extent of unskilled work; employment and unemployment among unskilled workers; the regulatory framework; trade union organisation among unskilled workers; pay and conditions; recent initiatives to improve the situation of unskilled workers; and the views of trade unions and employers' organisations on the issue and its implications for collective bargaining.

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This article gives a brief overview of the industrial relations aspects of the topic of unskilled workers and unskilled work in Spain, as of February 2005. It looks at: national definitions of unskilled workers or work; the number of unskilled workers and workers in unskilled jobs, and the extent of unskilled work; employment and unemployment among unskilled workers; the regulatory framework; trade union organisation among unskilled workers; pay and conditions; recent initiatives to improve the situation of unskilled workers; and the views of trade unions and employers' organisations on the issue and its implications for collective bargaining.

In recent years, labour market developments have altered the demand for labour. Increasingly, employers are looking for adaptable workers, with more 'transversal' and 'relational' competences. The nature of skills required to be considered efficient in a job has thus evolved. In this situation, there is a growing risk of exclusion among unemployed workers whose profiles do not match the job characteristics needed, while the low-skilled or unskilled workforce is more at risk of unemployment.

In this context, in February 2005 the EIRO national centres were asked, in response to a questionnaire, to give a brief overview of the industrial relations aspects of the topic of unskilled workers. The following distinctions are used, where applicable:

(a) an unskilled job is a job which requires, for its proper execution, hardly any formal education and/or training and/or experience;

(b) a worker in an unskilled job is a worker doing such a job, irrespective of their level of qualifications or competences (especially under conditions of high unemployment, a significant share of those occupying unskilled jobs may be 'overeducated' for them, or 'underemployed'); and

(c) an unskilled worker is someone who has only the lowest level of qualifications or education (however defined).

The questionnaire examined: national definitions of unskilled workers or work, including those used or provided in laws, statistics or collective agreements; figures or estimates on the number of unskilled workers and workers in unskilled jobs, and the extent of unskilled work; employment and unemployment among unskilled workers; the regulatory framework, including any specific laws or collective agreements, and trade union organisation among unskilled workers; the pay and conditions of unskilled workers and workers in unskilled jobs, or for unskilled jobs; any recent initiatives to improve the situation of unskilled workers; and the views of trade unions and employers' organisations on the issue and its implications for collective bargaining. The Spanish responses are set out below (along with the questions asked).

Definitions and extent

(a) Please provide a definition of unskilled workers or work (see distinctions above) in your country. Are there any definitions provided in laws, statistics or collective agreements?

The relevant source of regulation is the April 1997 interconfederal agreement on 'filling gaps in regulation' (Acuerdo Interconfederal de Cobertura de Vacíos) signed by the central social partner organisations (ES9706211F). It divides workers into eight occupational groups (numbered from 0 to 7). The two lowest-skilled occupational groups on the scale are as defined in table 1 below.

**Table 1. Definitions of least-skilled occupational groups in 1997 interconfederal agreement on filling gaps in regulation**
Occupational group	General criteria	Training
1	Tasks that are carried out according to specific, clearly established instructions, with a high degree of dependence, that require mainly physical effort or attention and that do not require specific training other than that obtained during a period of adaptation.	Experience acquired in the exercise of an equivalent occupation and a basic secondary education qualification (Graduado Escolar) or school attendance certificate (Certificado de Escolaridad) or similar.
2	Tasks consisting in operations carried out following a precise method of work, with a high degree of supervision, that normally require elementary professional knowledge and a brief period of adaptation.	Qualification or knowledge acquired in the exercise of an occupation equivalent to a basic secondary education qualification or vocational training 1 (Formación Profesional 1).

In statistical terms, the classification used by the Survey of the Active Population (Encuesta de Población Activa, EPA) conducted by the National Institute of Statistics (Instituto Nacional de Estadística, INE) is normally used in distinguishing unskilled jobs (puestos de trabajo no cualificados). It includes the category but without defining it in its own terms. It simply groups together all people in employment with apparently lower qualifications.

In order to receive training subsidies, companies use different criteria in their reports to the Tripartite Foundation for Training in Employment (Fundación Tripartita para la Formación en el Empleo) (ES0109202F) on the percentage of unskilled workers (a priority group for European Social Fund support) attending in-company continuing training. In the auto sector, for example, Citroën, considers that an unskilled worker (trabajador no cualificado) is one who has not obtained a sufficient level of education for the profile initially intended for an occupation (ie the criterion of qualification is used). Under this criterion, about 40% of its workers would be unskilled workers. On the other hand, Renault considers that any person who is able to carry out the tasks assigned to an occupation is skilled (ie the criterion of experience and skill is used). According to this evaluation, no workers at Renault would be unskilled.

(b) Are there any figures or estimates available on the number of unskilled workers and workers in unskilled jobs, and the extent of unskilled work. How have these figures changed in recent years - have changing skill needs or improvements in education/training systems led to a reduction in the numbers of unskilled jobs, unskilled workers and workers in unskilled jobs? Please break all figures down by gender where possible.

As defined by the EPA, unskilled workers made up 13.8% of all people in employment in the second quarter of 2004 - see table 2 below. There is a high correlation between the level of training and the category of job obtained (though management workers represent a very similar percentage of the groups with all levels of education, with the exception of the illiterate and PhD holders) - see tables 2 and 3 below. Unskilled workers make up over 60% of all illiterate workers and over a quarter of all workers whose attained no more than a primary education. Among unskilled workers, around 35% have only a primary education, and a further 41% have only a first-stage secondary education.

**Table 2. People in employment by occupational category and level of education/training attained, 2nd quarter of 2004 (vertical %)**
Occupational category	Total	Illiterate	Primary education	First stage of secondary education and corresponding training and integration in employment	Second stage of secondary education and corresponding training and integration in employment	Training and integration in employment with secondary qualification (2nd stage)	Higher education, except PhD	PhD
All occupations	100	100	100	100	100	100	100	100
1. Public and private sector management	7.6	1.8	8.5	6.9	8.2	7.9	7.3	3.7
2. Scientific and intellectual technical and professional staff	13.2	0	0.2	0.2	1.5	2.5	40.4	94.7
3. Support technical and professional staff	10.8	0	2.3	4.8	16	13.6	18.4	0.7
4. Administrative staff	9.2	0	2.9	6.1	16.9	10.2	11	0.2
5. Workers in catering, personal services, protection and sales staff	14.6	3.9	12.6	18.2	21.6	18.6	7.9	0.3
6. Skilled agricultural and fishing workers	3.5	11.6	8.8	4.2	1.9	0	0.6	0.1
7. Craft workers and skilled workers in manufacturing, construction and mining, except operators	16.9	11.5	25.4	24.1	14	18	7.3	0
8. Operators of equipment and machinery, assembly workers	9.8	10.6	13.1	15.5	8.6	16.4	3.4	0
9. Unskilled workers	13.8	60.7	26.2	19.6	10.2	12	3.1	0.5
0. Armed forces	0.5	0	0.1	0.5	1.0	1.0	0.5	0

Source: EPA.

**Table 3. People in employment by occupational category and level of education/training attained, 2nd quarter of 2004 (horizontal %)**
Occupational category	Total	Illiterate	Primary education	First stage of secondary education and corresponding training and integration in employment	Second stage of secondary education and corresponding training and integration in employment	Training and integration in employment with secondary qualification (2nd stage)	Higher education, except PhD	PhD
All occupations	100.00	0.31	18.67	28.93	20.81	0.12	30.70	0.46
1. Public and private sector management	100.00	0.07	20.97	26.29	22.55	0.12	29.77	0.22
2. Scientific and intellectual technical and professional staff	100.00	0	0.21	0.32	2.36	0.02	93.82	3.26
3. Support technical and professional staff	100.00	0	4.02	12.81	30.75	0.15	52.24	0.03
4. Administrative staff	100.00	0	5.95	19.03	38.20	0.13	36.68	0.01
5. Workers in catering, personal services, protection and sales staff	100.00	0.08	16.12	36.14	30.81	0.15	16.69	0.01
6. Skilled agricultural and fishing workers	100.00	1.04	47.25	35.00	11.32	0.00	5.38	0.02
7. Craft workers and skilled workers in manufacturing, construction and mining, except operators	100.00	0.21	27.96	41.24	17.27	0.13	13.19	0
8. Operators of equipment and machinery, assembly workers	100.00	0.34	24.85	45.68	18.28	0.20	10.66	0
9. Unskilled workers	100.00	1.38	35.28	40.89	15.40	0.11	6.92	0.02
0. Armed forces	100.00	0.00	3.74	27.28	39.38	0.22	29.48	0.00

Source: EPA.

The tendency in Spain is for a significant reduction in the percentage of unskilled or low-skilled people (defined in terms of educational attainment) in employment, which fell from 40% in 1994 (and 58% in 1987) to 18% in 2004. This contrasts with a relative stability in the percentage of all people in employment with unskilled jobs over the same period, falling very slightly from 14.3% in 1994 to 13.8% in 2004. The two figures can be seen to be converging over time - see table 4 below.

**Table 4. Unskilled workers and people in employment with low qualifications, 1994-2004**
.	.	Of total people in employment
Year (2nd quarter)	Nº of people in employment	% who are in unskilled jobs (1)	% who are low-qualified (illiterate primary education) (2)
1994	12,186,100	14.3	39.99
1995	12,494,800	14.4	37.70
1996	12,759,800	13.8	34.55
1997	13,190,800	13.9	32.54
1998	13,718,500	14.1	30.43
1999	14,508,500	14.4	28.25
2000	15,306,100	14.2	26.42
2001	15,876,600	13.8	23.98
2002	16,240,700	13.9	22.62
2003	16,666,000	14.1	20.51
2004	17,050,100	13.8	18.98

Note: The series was broken in 2000. Series on studies completed and studies underway, according to the ad-hoc EPA-92 classification, were used until the fourth quarter of 1999. The CNED-2000 series on the level of training of the interviewee was used as of 2000 and is not linked to the previous figures.

Source: EPA.

The overall level of education of Spanish workers has been affected by two major phenomena:

the demographic effects of the incorporation of more recent generations who have spent more time in education (the extension of the education system since the 1970s) and of the retirement of older workers with lower levels of qualification; and
the spread of lifelong training among both unemployed workers (above all in the 1980s and early 1990s) and people in employment (through the extension of the continuing training system and its institutional incorporation in the economic system).

(c) Please provide figures on employment and unemployment rates for unskilled workers, compared with higher-skilled groups. Have unskilled workers/workers in unskilled jobs been particularly affected by industrial and company restructuring? Have new jobs created in recent years been filled by unskilled workers? Please break all figures down by gender where possible.

The overall unemployment rate fell from 13.8% in 2000 to 10.9% in 2004 (second quarter). In this period, the proportion of the unemployed made up of illiterate people fell from 30.7% to 25.04%, and that of workers with only a primary education from 14.6% to 12.3% - see table 5 below. The share made up of workers with a higher education (below PhD level) fell from 11.04% to 8.15% over the same period. Job creation has reduced unemployment more among the less qualified workers. Unemployment rates are higher for women than men at all educational levels.

**Table 5. Unemployment rate by sex, level of education/training attained, 2nd quarter 2004 (%)**
.	Total	Illiterate	Primary education	First stage of secondary education and corresponding training and integration in employment	Second stage of secondary education and corresponding training and integration in employment	Training and integration in employment with secondary qualification (2nd stage)	Higher education, except PhD	PhD
Both sexes	10.93	25.00	12.30	12.80	10.90	12.50	8.15	2.70
Men	7.97	21.30	9.41	9.17	7.38	0.82	5.66	2.61
Women	15.18	30.30	17.90	19.30	15.40	28.60	10.80	2.83

Source: EPA.

Employment rates are slightly higher among workers with higher levels of qualification - see table 6 below. For women, the employment rate is significantly lower than for men, despite the fact that they have higher average levels of education.

**Table 6. Employment rates by sex and level of education/training completed, 2nd quarter 2004 (%)**
.	Both sexes	Men	Women
Total	89.07	92.03	84.82
Z. Illiterate	74.97	78.74	69.77
B. Primary education	87.76	90.59	82.07
J. First- and second-cycle university education	92.55	94.64	90.62
K. Official vocational specialisation courses	87.81	88.59	86.92
L. Third-cycle university education (PhD)	97.37	97.35	97.39

Source: Drawn up by author from EPA.

As mentioned, women have a higher level of unemployment than men, above all when they have higher levels of qualification - see table 7 below. Nevertheless, being highly qualified improves the chances of being in employment.

**Table 7. Unemployment and employment by level of education completed, 2nd quarter 2004**
.	% unemployed			% in employment
.	Both sexes	Men	Women	Both sexes	Men	Women
Total	100	100	100	100	100	100
Sum of levels Z B (unskilled workers: illiterate primary education only)	22.1	26.4	18.9	18.98	21.44	15.15
SUM of levels H I J K L *	22.4	18.6	25.1	31.16	27.04	37.57

* H. Higher technical-professional training; I. Non-regulated university courses and higher vocational training; J. First- and second-cycle university education; K. Official courses of vocational specialisation; L. Third-cycle university education (PhD).

Source: EPA, drawn up by author.

Job creation in unskilled jobs has been very dynamic in recent years, showing a slightly upward tendency - see table 8 below. In 1997, unskilled jobs represented 32.96% of recorded placements, rising to 35.43% in 2004 (January-November).

**Table 8. Recorded 'labour movement', 1997-2004**
.	Total placements	% of placements involving unskilled jobs*
1997	9,806,000	32.96
1998	11,363,800	34.62
1999	12,833,300	35.79
2000	13,625,500	36.11
2001	13,597,400	35.26
2002	13,737,300	35.00
2003	14,314,400	35.88
2004 (Jan-Nov)	14,848,200	35.43

* Category contains: domestic employees and other personnel cleaning interiors of buildings; other unskilled workers in retailing and other services; agriculture and fishing labourers; builder's labourers; labourers in mining and manufacturing; and labourers in transport and unloading.

Source: Drawn up by author from MTAS Index of Labour Costs.

There is no information linking restructuring and the qualifications of the jobs or workers involved . Presumably, unskilled workers and workers with qualifications that are obsolete or non-specific — and therefore less valued — are those most affected by restructuring.

Regulation and conditions

(a) Is there a specific regulatory framework in your country concerning unskilled workers and workers in unskilled jobs (however defined)? Are there specific laws or collective agreements? Are there specific trade union organisations for them, or are they represented in 'normal' union structures. Have there been any changes in these area reflecting the changes referred to in question (b) under 'Definitions and extent' above?

There is no a specific regulation of unskilled workers or jobs. Collective agreements appear reluctant to deal with the subject of skills or lack of them because this involves 'discrediting' some workers.

There are no specific trade unions for unskilled or low-skilled workers, nor is there a specific structure of this type of worker in any of the existing unions

(b) Please provide any figures available for the pay of unskilled workers and workers in unskilled jobs, or for unskilled jobs, and the relationship of this pay with the average or with higher-skilled groups. Do collective agreements contain specific pay grades for unskilled workers, or workers in unskilled jobs? Please break all figures down by gender where possible.

The occupational classification in companies/collective agreements divides workers and jobs generally into occupational groups and occupational hierarchies by their level of qualification/skill. It is illegal to pay less than the national minimum wage (Salario Mínimo Interprofesional, SMI) for a job, whatever its specific qualification/skill level.

As shown by table 9 below, on average a low level of qualification is associated with considerably lower pay, particularly for women.

**Table 9. Average annual income per worker, by sex and education, 2002 (in EUR)**
Educational level	Average
Educational level	Total (Both sexes)	Men	Women
All levels	19,802.45	22,169.16	15,767.56
I. No education	12,903.30	14,834.33	8,472.45
II. Primary education	15,640.44	17,645.14	10,826.92
III. Secondary education I	15,679.54	17,591.76	11,700.95
IV. Secondary education II	21,634.00	25,324.39	16,483.21
V. Medium-level vocational training	17,961.83	21,273.29	14,376.30
VI. Higher-level vocational training	20,990.63	23,521.88	16,133.26
VII. University diploma or equivalent	25,760.28	30,757.84	21,151.78
VIII. Degree or PhD	32,997.45	38,691.15	25,629.76

Source: INE Survey of Pay Structure.

Table 10 below gives income figures by occupational group According to INE: 'the job is one of the variables that most influence the pay level. There is a great difference in the pay of group A, management of companies with more than 10 workers … Those associated with the different university qualifications (groups D and E) are far above the average … The other occupations have pay lower than the national average, the lowest corresponding to unskilled workers in agriculture, fisheries, construction, industry and transport (group T) and in services (group S). The lowest annual pay is found among unskilled men working in agriculture, fisheries, construction, industry and transport (group T); and among unskilled women working in services (group S) … Within each occupation, taking on responsibility [for other workers] leads to higher pay than the average for the job, whereas not doing so leads to lower pay.'

**Table 10. Average annual income per worker, by sex and occupational group (main subgroups of CNO-94), 2002 (in EUR)**
Occupational group	Both sexes	Men	Women
Average for all occupations	19,802.45	22,169.16	15,767.56
11. Management of companies with 10 or more employees	54,657.76	57,442.28	42,408.02
Unskilled jobs
90. Unskilled workers in retailing	6,506.04	7,919.18	4,340.52
91. Domestic staff and other personnel cleaning the interior of buildings	8,738.36	12,231.23	8,245.25
92. Caretakers of buildings, window cleaners and guards	11,845.89	11,945.31	11,432.59
93. Other unskilled workers in other services	16,227.26	16,788.81	13,025.66
94. Farm and fishing labourers	11,851.79	12,203.29	9,343.45
95. Mining labourers	16,764.62	16,890.99	13,368.50
96. Builders' labourers	13,008.10	13,004.48	13,429.18
97. Manufacturing labourers	12,310.84	13,146.73	10,873.99
98. Transport and unloading labourers	11,691.12	12,254.58	9,638.77

Source: Drawn up by the author from the INE Survey of Pay Structure.

(c) Are there any differences between unskilled workers/workers in unskilled jobs and higher-skilled groups in terms of access to other benefits, social security, pensions, etc? Please break all figures down by gender where possible.

Access to rights related to social security contributions (unemployment, pensions etc) are proportional to the contributions and therefore to the income received. In terms of occupational benefits, managers and some specialists and technicians can obtain benefits and payments beyond those laid down in agreements, whereas general wage-earners cannot.

Actions and views

(a) Please describe any recent initiatives taken jointly or separately by companies, public authorities (national or local) or the social partners (eg collective agreements) to address the situation and improve the situation of unskilled workers in terms of pay, working conditions, training, employability, unemployment etc.

Perhaps the most important initiatives in this area are those that give priority to unskilled workers for receiving training through the continuing training system. A substantial pay improvement affecting many unskilled workers was also obtained through major increases in the SMI minimum wage in 2004 and 2005 (to EUR 600 per month) (ES0502203N).

There are no incentives or allowances for recruiting unskilled workers or specific additional rights for this group.

(b) Please summarise the views of trade unions and employers’ organisations on the issue and its implications for collective bargaining.

Introducing lifelong learning for workers has been a general line of action for both trade unions and employers. Both sides consider unskilled workers (particularly those in small and medium-sized enterprises) to be one of the priorities for receiving training through the continuing and vocational training system. If companies are to receive the full allowances provided for training under this system, a certain percentage of the workers undergoing training must be unskilled.

Comments

The average vocational qualifications of people in employment shows a very clear upward trend. Those with the lowest qualifications should arguably be referred to as 'less qualified' rather than 'unskilled' workers. Workers may become skilled by obtaining a qualification but also through experience (particularly if the theoretical training is linked to practice, accompanied by an overview of what they are doing).

Perhaps one should also consider other, less linear or gradual, criteria of qualifications and skills, using qualitative characterisations. The process of becoming more skilled does not always have the same meaning. Qualifications/skills might be classified according to whether they are 'standard' (ie transversal, providing skills of adaptation to the changing and semi-automatic system of production), or 'specific' (making the workers 'special' because the production process depends on their participation). The standard and transversal qualifications/skills (generally abstract ones) allow workers to adapt to the highly variable system of work, but makes workers qualified in these tasks completely replaceable by others with similar qualifications. The specific qualifications/skills make the workers less replaceable and therefore give them greater individual bargaining power to negotiate their employment conditions.

In short, the process of increasing qualifications and training in Spain has led to an increase in the average level of standard and transversal knowledge (use of computer tools and applications, for example). This leads to a devaluation of unskilled workers (the proportion of which is falling rapidly), a reduction in the advantages of workers with specific qualifications (who lose their 'special' status when new skills enter their area of experience or when their skills can be replaced by an easy-to-operate semi-automatic system), and a general requirement of greater 'abstract and standardised' skills. In summary, the general workforce is arguably becoming increasingly replaceable, at least in the 'homogeneous' areas, because workers from one job, area of work or branch of activity can be transferred to another with similar 'abstract' characteristics. (Daniel Albarracín, CIREM Foundation)

Eurofound recommends citing this publication in the following way.

Eurofound (2005), Thematic feature - unskilled workers, article.