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WORKING IN DENMARK

Which Danish industries have the highest proportion of low paid foreigners?

A study by the Danish labour movement's economic policy institute has found that foreign citizens are heavily overrepresented among the lowest paid workers in Denmark. These industries are the worst offenders.

Which Danish industries have the highest proportion of low paid foreigners?
Peter Yung Worth Jacobsen wins Demark's 'chef of the year' competition in 2017. Photo: Ida Guldbæk Arentsen/Ritzau Scanpix

In five industries, more than one in three workers among the worst-paid 20 percent of employees were foreign citizens, with agriculture, transport, cleaning, hotels and restaurants and construction the worst offenders, the analysis by the The Economic Council of the Labour Movement (Arbejderbevægelsens Erhvervsråd) found. 

“Foreign workers often don’t know what wages are common in Denmark or what rights people have, because maybe they don’t know the culture in the Danish labour market,” Emilie Damm Klarskov, the council’s head of analysis, told The Local. 

She said that she was worried that the recent increase in the number of foreigners coming to Denmark for work risked slowly making Danish society less equal.  

“I think it’s a bigger problem in many other countries, but I’m concerned that it’s developing in Denmark, because what I don’t want is for there to be an A-team and a B-team, where the A-team has all the rights and a high wage level, and then we have the B-team [of foreign workers] that don’t have the same rights, because then we’ll increase inequality in the whole society.” 

In the agriculture, forestry and fishing segment, which is heavily reliant on seasonal labour from abroad, more than two-thirds of workers (66.4 percent) in the lowest quintile were foreign, compared to well under half (44 percent) in the industry as a whole.  

In transport, more than half (50.7 percent) of workers among the lowest-paid 20 percent were foreign, compared to well under a third (30.2 percent) across the industry as a whole. There was a similar situation in the cleaning industry, where 45.3 percent of the lowest paid were foreign, compared to 30.2 percent across the industry. 

The hotel and restaurant industry was also heavily reliant on cheap foreign labour, with foreigners accounting for 41.9 percent of the worst-paid fifth of employees and only 31.2 percent of employees as a whole. 

The other industry that employes a lot of low-paid foreigners was construction, with 37.8 percent of those in the lowest paid 20 percent coming from outside Denmark, compared to only 18.5 for the industry as a whole. 

The only industries where foreigners were slightly underrepresented among the lowest paid quintile were in energy supply and in raw material extraction. 

Damm Klarskov said that she would encourage all foreigners working in Denmark to join a union, even if their employer does not have a collective bargaining agreement, as unions could provide guidance on what constitutes a fair wage and advice on how to push for better pay. 

READ ALSO: EXPLAINED: What is a Danish collective bargaining agreement?

“It’s what I would recommend everyone to do because then you can get good advice from the union about what would be fair wage for you and what rights are normal in a job like the one that you’re offered.”

The overrepresentation of foreign workers among the low paid was even more marked among businesses with ten or fewer employees. Fully 56.2 percent of the lowest paid 20 percent of workers in hotels and restaurants with ten employees or fewer were foreign, 49.6 percent in agriculture, and 45.6 percent in cleaning, compared to 40 percent, 35.9 percent and 25.7 percent in the industry as a whole. 

"The thing about these industries is that there are a lot of small businesses, which makes it harder for the unions to reach them," said Damm Klarskov. "There are a lot of cafés that open with maybe five to ten employees and then close a year after they launch, so it's quite hard to make sure they are good employers." 

The study also highlighted that the same industries which had a high proportion of foreign workers in the lowest-paid quintile, also tended to have a lower share of employees who were members of an A-kasse employment insurance scheme, or who were part of an employer-administered pension scheme. 

"In industries where unions have more power, we see that foreign workers are not as dominating in the bottom of the wage distribution, and on the other hand, in industries where fewer of the workers are members of a union, we see that it's more 'Wild West', so every worker has to bargain for his or her pay level." 

She said it was unclear whether the higher proportion of foreign workers in these industries was undercutting unionisation, or whether instead, a lower level of unionisation made these industries more accessible for foreign workers. 

"It's hard to know what comes first. We know that foreign people are not as often unionised as Danish people. So maybe they seek jobs in industries where unions have less power, or maybe they end up there because they can't get a foot inside other industries." 

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WORKING IN DENMARK

What does Denmark’s new law on recording working hours mean for foreigners?

From July 1st, all Danish employers are required to introduce a working hours registration system that makes it possible to measure the daily working hours of each individual employee.

What does Denmark’s new law on recording working hours mean for foreigners?

This means the return of a system some Danish workplaces may not have seen for years: a clock for punching-in when you arrive at work and leave to go home.

There may now be electronic systems in place instead of the old-fashioned cards, punches and stamps, but the point is that there will be tighter control on working hours.

The requirement implements a 2019 judgement of the EU Court, with Denmark’s version built on an agreement reached on June 30th last year between the Confederation of Danish Employers, the Danish Trade Union Confederation, and Denmark’s white collar union, the Danish Confederation of Professional Associations.

The primary intention of the EU law is enforce equal working conditions for all staff at companies – including foreigners such as EU nationals who might not be familiar with local practices – and to ensure standards such as the 11-hour rule which provides regular breaks.

It has been met with some skepticism in parts of the Danish labour market, where a culture of trust – present throughout Danish society – means many employers have not previously required their staff to record their working hours.

But removing this element of trust from an employer-employee relationship is a positive step according to the chairperson of trade union confederation 3F’s Aalborg section, Benny Vinther.

“If disagreements emerge related to wages, it will be a clear advantage for staff that working hours are now registered and you can look up the information,” he told broadcaster DR.

Under the new law, workers will need to register deviations from agreed or scheduled working hours and will also have to register interruptions to the working day if they need to, for example, pop out to the dentist or stay late to finish a presentation. 

Some 85 percent of Danish companies already have some form of system in place for registering working hours, according to data from the Confederation of Danish Industry (DI)’s construction and building department.

However, Vinther told DR that this nevertheless is a sign of room for improvement – and that people who lose wages when their hours are not properly registered are more likely to be foreign workers.

“It will now be easier for our members to be proved correct when they haven’t been paid as agreed,” he said.

“Both sides must approve how to register (hours) so you can’t really end up in an argument about whether it’s the right thing to do,” he said.

Under the law, employers are required to keep the records for five years.

Employees empowered to set their own schedule — so called self-organisers — are exempt from the law, but the law states that such people should be able to reorganise their own working time “in its entirety” and that this power should be enshrined in their contracts. As such, this is only expected to apply to senior executives in practice. 

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