In April 2006, the results of the evaluation of the service vouchers scheme – which subsidises the employment of workers to carry out household tasks – were presented to the government. The evaluation aims at measuring the impact of the scheme on employment in Belgium. Meanwhile, after lengthy negotiations, the social partners have concluded a joint agreement for workers employed under the service vouchers system, which currently includes around 26,000 people in Belgium.
Background
In September 2003, the federal government launched a comprehensive reform of the service vouchers scheme, covering both administrative and financial aspects (BE0401304F). The scheme was brought back under state control to allow it to develop further and, thereby, to encourage the creation of at least 25,000 jobs.
This reform measure aimed not only to generate new jobs, but also to help to combat undeclared work, which is relatively widespread in the type of work covered by the service vouchers: cleaning, ironing, shopping and transport of people with limited mobility. Under the scheme, individuals can buy service vouchers for certain types of work from registered companies. The user pays €6.70 per voucher (for one hour of work), which is tax deductible, and the registered company receives €21.
The service voucher scheme was scheduled to undergo an evaluation in 2005. Results of the evaluation exercise, conducted by the independent research company IDEA Consult, were presented to the federal government at the end of April 2006.
The evaluation examined the quantity and quality of jobs created, and the relative costs and budget impact of the scheme.
Results of evaluation process
In 2005, the cost of the service vouchers scheme amounted to a net figure of €210 million. The scheme encouraged 27,949 people into work (compared with around 15,000 people in 2004), most of whom were unskilled workers.
The evaluation also shows that the system has remained relatively stable. Only 14% of workers opted out during the year. Employers and users reported overall satisfaction with the scheme, although workers expressed some reservations about their pay levels and training opportunities.
In terms of combating undeclared work, the analysis notes that some 10% of users stated that they had used undeclared workers before switching to the service vouchers system. According to the Minister for Employment, Peter Vanvelthoven, a member of the Flemish-speaking Progressive Social Alternative (Sociaal Progressief Alternatief, SP.A), this figure is relative since many people are unwilling to recognise that they actively chose to employ undeclared workers. However, the service vouchers system has achieved part of its objective by bringing certain activities out of the sphere of undeclared work.
New agreement
In addition, the results show that progress is starting to be made on the setting up of a framework for the job specifications of service voucher workers. Following lengthy negotiations at the end of April 2006, the social partners managed to conclude the first sectoral agreement within the Joint Sub-committee for Service Vouchers (JC 322.01).
The agreement covers a number of areas and guarantees an increase in the minimum wages paid to all workers under the service vouchers scheme, from 1 July 2006. Furthermore, workers who have worked more than 65 days in 2005 will be eligible for an end-of-year bonus. Travel expenses for a distance of at least three kilometres will also be reimbursed. With the support of an employer contribution of 0.2% from the sectoral social fund, group training initiatives will be encouraged.
Reaction of unions and employer organisations
According to the Food and Services section of the Confederation of Christian Trade Unions(Confédération des Syndicats Chrétiens/Algemeen Christelijk Vakverbond, CSC/ACV) and the Belgian General Federation of Labour (Fédération Générale du Travail de Belgique/Algemeen Belgisch Vakverbond, FGTB/ABVV), the agreement is balanced and has the virtue of explaining workers’ rights to those employed under the scheme. It also establishes minimum conditions that are to take effect immediately, along with a number of improvements still outstanding, in particular those pertaining to worker status.
On the employers’ side, Federgon (Fédération des partenaires de l’emploi/Federatie van partners voor werk, Federgon) notes that the agreement requires a considerable financial effort by employers. Therefore, it calls on the federal government to guarantee the current financing of the service vouchers scheme and not to reduce its intervention.
Financing of scheme
Due to the success of the service vouchers scheme, the federal government is now in fact faced with the problem of continuing to finance the scheme. According to the minister of employment, it is essential to work out a method of financing that will make the system sustainable. The National Employment Office (Office National de l’Emploi/Rijksdienst voor Arbeidsvoorziening, ONEM/RVA) and the National Institute of Sickness-Invalidity Insurance (Institut National d’Assurance Maladie Invalidité/Rijksinstituut voor Zieke – en Invaliditeitsverzekering, INAMI/RIZIV) have been requested to carry out a thorough evaluation of the financial return for 2006 in view of the impending July budgetary control exercise.
Cécile Arnould, Institut des Sciences du Travail, UCL