Working conditions among Polish workers found to be substandard

According to a recent survey carried out among Polish migrants in the Oslo area, significant disparities emerge between different groups of Polish workers. Posted workers and workers who operate in the illegal labour market are more often subject to substandard wages and working conditions. The situation is better for Poles within the legal labour market, although they are still paid less than Norwegians are.

Background

Since the EU enlargement in May 2004, a significant number of workers from the new EU Member States have entered the Norwegian labour market, the largest group of which are Polish workers (NO0606039I). Trade unions and the media report that pay and working conditions among employees from the new EU Member States are significantly lower than is normal in Norwegian working life (NO0405105F, NO0506101N, NO0612029I, NO0609039I). However, up to now little statistical information has been available about the working conditions of these newcomers.

Research method uncovers more vulnerable groups

In 2007, the Norwegian research institute Fafo published the results of a questionnaire-based survey entitled Polonia in Oslo (in Norwegian, 2Mb PDF), which was carried out among Polish workers living and working in the Oslo area. The sampling method used was the so-called ‘respondent-driven sampling’, that is, the respondents recruit more respondents. This method was chosen because no reliable registers exist on Polish workers in Norway. Moreover, it enabled the researchers not only to study employees registered in Norway but also posted workers sent from Polish companies to work in Norway, many of whom are missing from official registers; the analysis was also able to investigate the issue of undeclared work. A total of 510 interviews were conducted during the autumn of 2006.

Survey findings

Employee profile

A majority of the Polish workers located in the Oslo area work within a small number of occupations. The majority of male workers work within the construction sector, while most of the women work as cleaners in private homes. Overall, three out of four Polish workers in the Oslo area are men, and the average age is 34 years.

Among workers within the construction sector, a third are employed in Norwegian companies and another third by Norwegian temporary work agencies. The remaining third are employed by foreign companies commissioned to work in Norway or are self-employed.

Working conditions

Working hours

Long working hours are the norm. Within the construction sector, half of the workers claim to work more than 50 hours a week. Posted workers are subject to the longest working hours. Conversely, workers employed as cleaners in private homes often work less than 35 hours a week. This is partly due to the fact that these workers – who are mostly women – are unable to find enough work to fill a full-time position. Many of them want to increase their working hours.

Pay

Wages vary considerably. Posted workers have the lowest pay, while most Polish workers with a Norwegian employer state that they enjoy a pay rate equivalent or higher to the applicable minimum wage in the construction sector (NO0704019I).

A majority of the Polish workers surveyed claim that they are allowed to take time off and continue to be paid if they fall ill, which is a basic right in Norwegian working life. However, those workers operating in the illegal labour market often state that their wages are reduced or that they may lose their jobs if they become ill.

Language training

Every fourth Polish worker has received Norwegian language training from their employer, while 5% have undertaken such training themselves. Language training paid by the employer is mainly offered to employees of Norwegian temporary agencies and Norwegian companies.

Unionisation

In terms of collective representation, 14% of the workers surveyed in the construction sector are members of a trade union.

Illegal employment

The researchers estimate that approximately 25% of the survey respondents are subject to what they regard as illegal employment, and another 19% are in a borderline position. The study defines an employment relation as illegal if at least five out of six indicators in respect of legal employment are missing. The six indicators include: the employee pays taxes in Norway or in Poland; the employee has a tax code (skattekort); the employee has a national insurance number (personnummer); the employee has an employment contract or is registered as an enterprise if self-employed; the employee has a European Economic Area (EEA) work permit; and the wages are not paid in cash. A borderline position is defined as a situation where at least two of the six indicators are lacking.

Commentary

The study concludes that a dual labour market exists for Polish workers in Norway: the legal labour market for those with a work permit and who are subject to the transitional arrangements for free movement of workers from the new EU Member States (NO0405105F); and a ‘grey’ economy for those who work illegally or are on the borderline of legality. Particularly among the latter group, pay and working conditions are significantly below normal standards in Norwegian working life. This group of workers are also vulnerable because they often fall outside the Norwegian welfare system, for example in the case of illness. In terms of pay and working conditions, women who work as self-employed cleaners in private homes represent another vulnerable group.

For Poles working legally and with a Norwegian employer, wages are higher and working conditions are better; the employer usually pays in accordance with the applicable minimum wage in the sector – although less than the sector average – and workers are less frequently subject to long working days, pay reductions or job losses due to illness.

Kristine Nergaard, Fafo Institute for Applied Social Science