1. the institute for employment studies Scenarios of strategies of social partners’ cooperation in the hairdressing sector to improve the quality of work and employment Andrea Broughton 14 March 2014

2. Overview Aims of the project Methodology Presentation of the four scenarios Policy pointers

3. Aims of the project To identify current and future challenges for the hairdressing sector in relation to the quality of work and employment To examine how and at what levels the improvement of quality of work and employment can be addressed by the social partners To use a methodology that takes uncertainty into account, provides space for the involvement of the stakeholders, and which may lead to guidance for action

4. Methodology Desk research on working conditions and quality of work in the hairdressing sector in eight countries (DE, DK, FR, IT, LT, NL, PL, UK) Focus groups of the social partners Survey of salons and employees in all eight countries Construction of four scenarios to answer 2 questions: ● What strategy should the social partners in the hairdressing sector adopt in order to achieve an improvement of the quality of work and employment? ● What will the future of social partnership in the hairdressing sector look like in 5-10 years?

5. The four dimensions of job and employment quality

6. Scenario 1: the rosy glow of craft sector values

7. Overview Image of the sector is much improved, due to recognition of the value of people working with their hands Consequence of technology having been tried but having ultimately failed due to the lack of social interaction and some high-profile mishaps Due to this increase in status and qualification levels pay increases, but this is compensated for by reduced labour turnover The social partners are in a strong position due to high membership levels, a result of a more stable workforce The social partners have been able to push through a drive to professionalise career paths, competences and qualifications, with a comprehensive pan-European and recognised standard for qualifications across the sector, which facilitates mobility of employees around Europe Increased demand and competition among young people for training places

8. The future of social partnership This is a positive world for the social partners Membership levels are likely to be high as it will be easier to recruit from a more stable workforce The social partners can engage with members during the design and offer of training Possible challenges due to polarisation of salons that adhere to training standards and those that do not How should the social partners organise these two different parts of the sector? The social partners may need to engage in a different way on issues such as pay, working conditions, career progression and composition of the workforce

9. Social partner strategies to improve quality of work The social partners may be able to use their strong membership base to negotiate more EU-level agreements on working conditions The social partners will have to engage on pay – issues around the balance of the social partners in this different world The social partners may be able to play a role in advising salons on how to engage with training and qualification provisions at EU level Demographic considerations in a low staff turnover environment

10. Mapping on to the quality of work indicators Challenge of building a comprehensively-recognised European-level framework. Further training and development will become more important in a low workforce turnover environment. Salons might be able to form networks to provide training. Likely to be upward pressure on pay, but maybe downward pressure on pay for younger workers. Changing role of tipping? Possible reduction in the level of self-employment. Social protection and workers’ rights would improve if levels of self-employment and informal working fell. Positive effect on health and safety: higher status of the profession may lead employers to engage more fully with h&s. Employers may be concerned about retaining workers. Lower levels of self-employment and informal employment would also have a positive impact on h&s. Wellbeing is likely to increase in line with an increased number of employed and well-trained workers. There may be a need for the social partners to focus on the health and safety needs of older workers. Possible negative effect on work-life balance if levels of self-employment falls, but employers may want to retain key workers and therefore be keen to offer more flexibility. The social partners would be in a strong position and may be able to negotiate agreements on work-life balance.

11. Scenario 2: Robohair

12. Overview Technological advances begin to change the shape and composition of the hairdressing sector: ● Automated hair-washing and hair-cutting machines, remove much of the need for stylists to engage in actual washing and cutting of hair ● Nanotechnology and products that can be taken orally or by injection to change hair colour will cause a collapse in conventional hair dye products ● Technology is developed to stop male hair loss Manufacturers of technological products and equipment become players in the sector Workers need to be trained more regularly in order to keep up with technological developments Polarisation of the market: ● on the one hand, the high-tech salons, attracting a young, trendy crowd ● On the other hand, more conventional salons with an older clientele, who mistrust the technology and want social interaction

13. The future of social partnership The social partners might find it logical to split into different sections in order to serve the different areas of the market On the high-tech side, part of the membership offer could include training and advice and guidance on technology The social partners would need to ensure that the low-tech part of the sector is not seen as not as relevant or useful

14. Social partner strategies to improve quality of work Negotiation and joint texts on the use of the new technology, covering health and safety, working hours, contact with the new technology, training and skills development and also possibly pay The social partners could also get involved in setting common EU standards on equipment and materials Joint social partner discussions could also cover prices and quality of equipment and materials The social partners could become involved in designing and delivering training courses for those working with new technology More complicated collective bargaining – upward pressure on pay in the high-tech salons, downward pressure in the low-tech salons

15. Mapping on to the quality of work indicators Employees no longer exposed to traditional health risks, but new risks may emerge from the new technology. The social partners could provide advice and guidance to employers and employees, including risk assessment. Possibility of amending existing EU-level health and safety agreement. New skills will be needed in terms of working with the new technology. Job roles would have to be redesigned, in some countries by collective bargaining. The social partners could play an active role in this, also working with equipment manufacturers and suppliers. Increased importance of continuing professional development and further training, in order to keep up with changes. Job security good in the high-tech part of the sector. Less mobility in the “low tech” part. Potentially polarising effect on pay. Social partners might want to consider specific collective agreements that address the employment security needs of all employees In the high-tech part, working patterns are likely to change. There may be a need to have people on call to help out if there are technological problems. In the low-tech part, work-life balance is likely to be easier, with a relatively high level of self-employment

16. Scenario 3: the rise of the mall

17. Overview Economic uncertainty in Europe, resulting from factors such as climate change, political uncertainty, growing scarcity of resources and an ageing population, begins to have a profound impact on the structure of the sector The high street continues to shrink, as the popularity of the out-of-town shopping mall grows Salons become increasingly part of a larger shopping mall and subject to its opening hours More salons are taken over by chains, which can better manage the difficulties of being part of a shopping mall Implications for the role of the salon in the community The independent salons that remain try to broaden their service offer The sector polarises between larger chains and self-employed mobile hairdressers, leading to the development of a “wild west” part of the sector, not subject to regulation Presence of chains initiates a price war along the lines of recent developments in retail Downward pressure on pay and conditions Relationships between salons and suppliers are tense in a price-conscious world

18. The future of social partnership This scenario could have a profound effect on the development of the social dialogue The smaller salons may decide not to be members of employer organisations, as may the growing number of self-employed mobile hairdressers. The membership base for trade unions would also be under threat, as self- employed workers are less likely to join a trade union. Membership levels in the larger chains may hold up and perhaps rise as the number of these chains increase. A drop in the volume of social dialogue, as the membership level on both sides shrinks. This world could potentially have a negative impact on quality of work and pay and conditions for employees in the sector, as money is tight and salons cope with economic uncertainty. This would make social dialogue more difficult, as the social partners struggle to resolve the tensions between salons, suppliers and employees.

19. Social partner strategies to improve quality of work The social partners could counter falling membership by offering specific services to members, such as advice and guidance on regulatory issues Target the larger chains for membership recruitment, with dedicated advice and guidance for chains, including on regulatory compliance This may be attractive to chains as they will not like the unfair competition from the “wild west” part of the sector Social dialogue and collective bargaining would have to focus very narrowly on balancing salons’ needs for cost-cutting in an uncertain world and employees’ needs for decent pay and working conditions This may be something of an impossible task in a world of cut-throat competitions and trade unions therefore run the risk of seeming to be effective if they cannot counter it An alternative strategy might be to focus on issues such as work-life balance, training and competence development, flexible working and job quality, including ensuring health and safety

20. Mapping on to quality of work indicators Diversification of the service offer will require adequately trained staff: smaller salons could create networks to offer training. The social partners could work with training providers on the content of the training courses, and map and anticipate training needs. Work-life balance issues would play a key role in recruitment and retention, in the absence of increases in pay. The social partners could campaign on minimum weekly working time and get involved in the provision of childcare. Lack of regulation would increase health and safety risks: competitive advantage for those covered by regulation. New treatments could pose new health and safety risks. The social partners could advise on emerging risks and be involved in amending legislation. Polarisation of career and employment security: larger chains vs smaller salons. Pay likely to be squeezed and workers’ rights will depend on whether workers are active in the regulated or unregulated part of the sector. The social partners could campaign to reduce the unregulated part of the sector

21. Scenario 4: global warming leads to the dry salon

22. Overview Economic uncertainty: the effects of global warming and climate change begin to increase the cost of water and energy and cause economic instability worldwide Wet cuts, blow-drying and hair dyeing are still available, but much more expensive for customers, as salons need to pass on increased costs An added cost for salons is intensified waste treatment procedures Salons develop alternative treatments, such as dry cuts and the use of dry shampoos increases Salons reduce opening times in order to keep water, lighting and heating costs down Growth in mobile hairdressing in customers’ homes The sector polarises into salons that offer expensive treatments for special occasions, those that offer a reduced service based on dry cutting, and low- cost mobile hairdressers Smaller salons link up to form networks in order to share the cost of offering certain treatments and purchasing products A secondary market develops of rogue salons that do not abide by regulation

23. The future of social partnership Employers’ membership base may decrease as salons have less money and the informal market grows Employers could counter this by offering advice on water and energy usage Trade unions could also suffer membership losses as numbers of salons shrink Trade unions might be able to remain relevant by campaigning issues such as working time/opening hours and trying to appeal to self-employed mobile hairdressers There may be some discussion about whether the social partners should have different sections that deal with the different parts of the market

24. Social partner strategies to improve quality of work The social partners could try to negotiate an agreement on climate change and what this means for the sector, looking at issues such as water use, energy use, opening hours and use of products This could lead to a good practice guide for employers, setting out some basic standards for employees, such as training on the use of new products, and guarantees of a minimum number of hours, in the context of reduced opening times The social partners could try to engage with relevant stakeholders, such as those involved in the management of water and energy and manufacturers of the different kinds of products that would be in use in this world The social partners could try to attract self-employed workers by offering specific services to them Collective bargaining could engage with issues such as effects on pay and working time

25. Mapping on to quality of work indicators Shorter opening times will reduce working time and pay and may cause a move into self-employment. Chair renting, short-time working and skills development schemes could help Revised working hours and schedules may affect work-life balance. The social partners could try to ensure advance scheduling and be involved in shared social infrastructures, eg childcare or shift swapping New knowledge, tools and skills will be required in a world of water shortage. The social partners could be involved in the drafting and delivery of training and should engage with new stakeholders There will be fewer problems related to working with water and chemical dyes, but new issues may emerge with dry treatments. Home hairdressers would be more vulnerable to MSDs. The social partners could play a role in risk assessment and training and information about new products and procedures

26. Policy pointers (1) Connecting to salons ● Be aware of the reality of day-to-day working in salons Engaging with new stakeholders ● These could include manufacturers of new products and technology and climate change and waste disposal advisors. Bipartite monitoring dialogue ● It may be useful to establish and maintain a bipartite dialogue at sector level (where possible) in order to monitor change and develop ways in which to respond Action at EU level ● The social dialogue framework could tackle issues training and development, career progression, working hours and, possibly also pay Engaging with skills needs ● The social partners could maintain their relevance by getting involved, or more involved, in the development and possibly even the delivery of skills and qualifications

27. Policy pointers (2) Partnerships with education institutions ● The social partners could act as the bridge between the salons and the education providers in order to determine the types of skills needed in the sector, and be involved in the development and provision of training Tackling low pay ● Skills development, reductions in social charges, collective agreements, statutory minimum wage Continuing focus on health and safety ● most prominent concern linked to quality of work and working conditions. Exchange of good practice; involvement in the identification of new risks Focusing on flexible working ● flexible working time schedules and on-call working with minimum weekly hours Promoting work-life balance issues ● Involvement in setting up and running childcare facilities Best practice exchanges ● Seminars and workshops in which selected national practices could be showcased

28. Policy pointers (3) SME networks ● For example, networks to participate in and offer training Fighting the informal economy ● Lobbying governments, campaigning for a reduction in social charges Including the self-employed ● Include self-employed hairdressers in the social dialogue process in some way, maybe through specific branches or sections Organising differently to cope with polarisation of the sector ● Special sections or branches catering to different sectoral needs. Possibility of concluding separate collective agreements Exploring alternatives to redundancies ● Redeployment, upskilling, employability and short-time working Engaging in social security provision ● set up schemes for individuals who do not have full entitlement to social security.