Authors:Patrycja Kurowska

Maria NowickaKatarzyna PietrasikPaulina Niemyjska

Adrian Kamela

On the demand side of international labour mobility:The structure of the German labour market as a causal factor of seasonal Polish migration

Based on:B. Dietz, P. Kaczmarczyk: On the demand side of international labour mobility: The structure of the German labour market as a causal factor of seasonal Polish migration in: C. Bonifazi, M. Okólski, J. Schoorl, P. Simons (eds.) International Migration in Europe. New Trends and New Methods of Analysis, Amsterdam University Press, 2008.

Introduction• bilateral agreement signed by the Polish and German governments in

1990• Polish workers allowed to take up seasonal employment in Germany• seasonal workers, but also contract workers, guest workers, borderland

workers, trainees and students• maximal period: 3 months• new form of migration – a large part of Polish migration (since the year

2000, over 250,000 workers annually)• the need for low-skilled labour but also for skilled workers or trainees,

especially in the construction sector• the German labour market – the most important receiving labour

market for Polish migrants since the 1990s (at least prior to the EU enlargement in 2004)

The study is based on two unique empirical

data sets:

on a quantitative survey with Polish seasonal workers

to interpret the scale and patterns of this kind of mobility within the

segmentation framework

on a qualitative interview study with German employers of Polish

seasonal migrants the recruitment practices of

enterprises and the evaluation of workers’ performance are explored

to confirm the hypothesis of a demand-driven labour migration on

the enterprise level

Recruitment of foreign labour and its consequences for the German labour

marketthe recruitment process is of key importance

for understanding the contemporary situation in certain segments of the German

labour market

German recruitment policies• between 1953 and 1958 industrial production in Europe increased by 50 per cent

in Germany• the demand for labour was large, and the supply could not satisfy it• employers were prompted to compete for workers, usually by paying higher

wages and offering better working conditions• many countries started to seek sources of labour abroad• this process had its greatest consequences in Germany:

the fertility rate plummeted the rate of labour force participation of native workers decreased full employment was reached parents were helping their children to get a better education – the number of

economically active people further decreased• the recruitment programme: the inflow of labour, but also rigorous control and

adjustment to the needs of the German economy• at the beginning the programme worked well but later on the amount of foreign

workers grew rapidly• in 1973 in Germany: 2.6 million, approximately 12 per cent of all employed

people• a foreign workforce does not lose its attractiveness even in the times of recession• foreigners concentrated in narrow branches and niche professions, usually avoided by the

native labour force• the recession caused by the oil crisis brought the ‘full employment’ era to an end

• competition on the job market was fierce• the level of unskilled workers’ wages, and thus

standards of living, was decreasing• the unemployment reached relatively high levels (in

Germany, the unemployment rate in the mid-1970s was close to 5 per cent as compared to less than 1 per cent in the 1960s)

• the need to stop immigration became ever more present in public debates

• in 1973 the end of the recruitment programme was announced in Germany

• the aim of its immigration policy was to limit the inflow of foreign workers who were not citizens of member states of the European Community (later on, the EU)

Immigrants in Germanyregardless of the new restrictions and general discouragement, the number of immigrants, some nationalities in particular, was still growing

the migratory regulations became even more restrictive at the beginning of the 1980s

however, some extraordinary options for immigrants were introduced later on – for example: the possibility of employment for seasonal workers from the Central and Eastern European (CEE) countries, regulated by bilateral agreements since 1990

Consequences for Germany• the recruitment of foreign labour had far-reaching consequences for the

German economy: a driving force behind the export boom and the dynamic

development of the economy thanks to the inflow of foreign immigrants to the industrial sector,

the service sector could develop without negative effects on employment in the traditional branches

important social changes took place – guest workers made it possible for native workers to climb up the social and the professional ladders. It is estimated that between 1961 and 1968 about 1.1 million Germans moved from blue-collar to white-collar positions. This was only possible because they were replaced by 500,000 foreigners

• the German example shows that migrant workers are not only a substitute for the native workforce, but an important growth factor, which remains significant even in times of globalisation and technological revolution

Seasonal workers from Polandtheir share in the seasonal agricultural labour force

is huge(nearly 90 per cent)

Polish seasonal workers in Germany: analysis based on quantitative data

a survey conducted among Polish seasonal workers in 2002 (April to May)

the individuals who had received seasonal work offers in the years 1998-2001

the data relate to 804 randomly selected individuals

65 per cent of whom were men and 35 per cent women, aged predominantly between 20 and 39 years

According to the dual labour

market theory, two

characteristics are crucial:

the size of the company

(the characteristics of the companies where

Polish seasonal workers were employed)

the human capital (qualification) requirement

(the relationship between human capital on the individual level

and labour market performance)

Company size and type of workagriculture and food

processingcatering and hotels90 per cent of the surveyed

workers found jobs in companies employing fewer than 200 people

approximately 18 per cent in firms employing fewer than five people

the individuals employed as cooks, drivers, fix-all workers, and individuals performing simple supervisory tasks

Sector characteristics and the seasonal worker’s

profile

the lack of qualification requirements mainly young workers (the average age when starting seasonal work is 32

years for men and women) older workers women (40 per cent) nearly 75 per cent of all seasonal workers migrated more than once over half of the respondents (52 per cent) declared an intention to work in

Germany as seasonal workers in the following years

40 per cent of Polish seasonal workers in Germany had completed at least secondaryschool and only 12 per cent had only primary education

11 per cent were in professions in Poland requiring specialised skills

Seasonal labour migrants from the

point of view of German employers:

analysis based on a qualitative survey

Polish seasonal workers:• Agriculcular job market • Low- skilled job• qualitative survey study

based on 16 agricultural firms and one

restaurant in Germany between March and June 2003• interviews were face to face,

carried out on the basis of a structured questionnaire.

• AIM of studies to show the impact of Polish seasonal workers on agricultural production and the (seasonal) labour market in Germany.

• Usually seasonal workers were employed for 14 days (for example in hop production) - up to ten months (in vegetable production).

• It’s because seasonal workers are not allowed to be employed for longer than 3 months a year in Germany.

• Some companies hired about 300 seasonal workers per year although they had not occupied any permanent workers!

• Other company hired 7 permanent workers but 121 who were seasonal workers

Why? social security expenses - if they stay longer

than 2 months

From whole group of seasonal workers only 18 per cent were on the basis of contracts, including social security benefits.

Quick history:

since the end of 70s - lack of employees in local labour markets Demand of lowskilled workers

Because: the work is heavy, often dirty, don’t need specific qualifications, wages

are low and seasonal agricultural employment usually does not result in a more secure or long- term position.

1990 - employment of seasonal Polish workers was officially allowed

Recruting• The employers referred to

personal contacts by firm itself, by Polish workers, or by other enterprises already giving jobs to Polish migrants.

• Mainly the same workers every year

• New workers were recruited with the help of employed Polish personnel

• The role of the German labour office in the recruitment process is purely formal.

• The strong position of foreign workers in this labour market segment

• The firms did not demand any specific skills or occupations from Polish seasonal workers

• Although seasonal labour migrants only did low skilled jobs, they have German language skills, good education and qualifications

Remuneration• seasonal workers were paid the standard

wage for seasonal work in agriculture• rewarding payment system for more

qualified workers or those who had already worked for a long time (not included in a work contract but bonus payments)

• because of economic reasons, approximately 50% of the interviewed firms employed seasonal workers in general for less than 50 days to avoid social insurance payments

• ALARM! A number of agricultural firms occasionally paid lower than standard wages distorting competition in certain agricultural segments

Go Poland go!the high commitment, capability, flexibility and

productivity of Polish seasonal workersno family, friends and social responsibilities in Germany,

therefore they are willing to work extra hours as well as on Saturdays and Sundays

All employers would be unable to keep up their production if they were not allowed to hire seasonal migrant workers any more.

In addition, some firms voted for an extension of bilateral agreements on labour migration to other Eastern European states, for example to Ukraine, Belarus, Moldova or the Baltic states.

Conclusion Polish workers are employed primarily in small- to medium-sized companies

and in branches where no qualifications are required, predominantly in agriculture where the wages are distinctly lower than the average wages of German workers.

There exist division inside Polish grup of the workers- some groups have been able to achieve social and professional advancement, but others still remain in the lowest segment of the German labour market.

Agriculture, as a one of the secondary and seasonal work sector, have relatively low share of permanent German workers and a large share of foreign temporary workers.

Without a doubt in German is high demand for seasonal low-qualified labour, which cannot be satisfied by the native labour market.

The diminishing share of nationals from the recruitment countries in the agricultural sector can be explained not only by the fact that the majority of them find better jobs, but also by the ‘unmotivating’ social security system in Germany.

There is lack of governmental regulations to steer immigration and to guarantee standardwage payments, regular working conditions and decent housingfor seasonal labour migrants.

Perspective• Probably Polish workers will be replaced by other immigrant groups as a

consequence of Poland’s EU membership, especially by immigrants from other CEE countries.

• The bilateral agreement between the Polish and the German governments created a chance for a new immigrant group to emerge.

• Most of the critics of seasonal labour migration (politics) have not presented a feasible strategy to overcome seasonal labour market shortages.

• Seasonal labour migration might lead to wage or social dumping or to market distortions.

• Elimination of (former) non-EU seasonal labour migration would lead to an increase in undocumented migration.

• Social tensions between native and foreign workers may result or labour conflicts and distorted competition between firms (conflickt because of different wages).

• There are still space and need to create in German and also in other country in Europe (with secondary sector workers problem) the economic and social rights of native and migrant workers alike.