Inspection of supermarkets has led to improvements in working conditions

In late 2005, the National Labour Inspectorate published a report on its control activities performed in supermarket chains from 1999 to 2005. The report contains a general overview of labour law observance in the sector and then focuses on specific supermarket chains where random checks were carried out. The labour inspectorate concludes that its activities contributed to an improvement of working conditions in retail chains.

The National Labour Inspectorate (Panstwowa Inspekcja Pracy, PIP) is a public agency responsible for control of working conditions and protection of employee rights. PIP operates under the authority of the National Labour Inspectorate Act of 1981 (PL0609039I).

Working conditions in retail trade sector

PIP first focused its attention on large stores of supermarket chains in 1999–2000, beginning with random controls of selected outlets. Since 2001, PIP’s monitoring activities with respect to the retail trade sector have evolved into regular inspections, often involving multiple visits to the same workplace. Moreover, the scope and extent of control activities have gradually expanded.

During the period of 1999–2005, a total number of 404 stores employing 120,000 staff were subject to monitoring and control activity. In 2004 alone, PIP inspectors examined working conditions in 66 stores of 38 retail chains, employing nearly 11,000 workers. Among these stores, the inspectors discovered a number of irregular practices. In the report, PIP observes a noticeable drop in quality of working conditions in 2004, after a period of improvement in 1999–2003.

PIP bases this claim on the escalating number of inaccuracies regarding issues such as working time records, holidays, overtime pay, night-shift pay or employment records. In an increasing number of outlets, irregularities such as non-observance of the five-day working week or unlawful lowering of wages were found. On the other hand, a steady improvement has been observed in respect of elements such as timely payment of wages, granting workers a free Sunday every four weeks (every three weeks prior to 2004), and length of recreational leave. In relation to the physical working environment, some improvement has also been noted in the level of safety, especially in terms of sanitary facilities and safety equipment.

Random checks in selected chains

In addition to regular control activities, triggered by substantial media coverage of sub-standard working conditions in the retail trade, PIP also targeted specific chains alleged to be employee-unfriendly. In 2004, labour inspectors thoroughly examined the Biedronka and Lidl discount stores and, in 2005, continued with the Kaufland chain. The results indicated a high scale of irregularities at the stores being monitored. In particular, in all three chains, infringements of labour law regulations were commonly found. These included gaps in working time records, miscalculations of overtime pay and night-shift pay, or inaccurate information in employment records. The numerous inaccuracies revealed resulted in financial penalties for these companies and, in several cases, PIP inspectors informed public prosecutors of the violations, leading to further court proceedings.

Improved working conditions

In the conclusion of its report, PIP considers that its control activities have led to an improvement in working conditions in retail chains. Comparative analysis of the results of monitoring activities undertaken in 2000 and again in 2003 in the same workplaces suggests that both the general observance of labour law and safety of working conditions have become better. Furthermore, repeated control activities carried out at various outlets of the same chain produced similar beneficial effects.

As a result of the labour inspectors’ actions, throughout 1999–2004 more than 19,000 persons received a total amount of PLN 3.2 million (€824,655 as at 11 Janaury 2007) in compensation for unpaid or unlawfully lowered wages. In cases of multinational retail companies, PIP also decided to communicate the results of its activities directly to the boards of the parent companies.

Further information

Poor working conditions prompted Lidl employees in Gorzów Wielkopolski, a town in western Poland, to establish the first trade union organisation within the supermarket chain in September 2006, following confrontation with representatives of the company’s board of directors (PL0610029I). Thus, it may be hoped that working conditions will continue to improve at this outlet and, in time, throughout the sector.

Reference

Przestrzeganie przepisów prawa pracy w supermarketach, hipermarketach i sklepach dyskontowych w latach 1999–2005 (in Polish, 188Kb PDF) [Employee rights observance in supermarkets, hypermarkets and discount stores, 1999–2005], PIP, Warsaw, 2005.

Jan Czarzasty, Institute of Public Affairs (ISP)