Social partners assess impact of electronic commerce on employment

One of the main areas of discussion in the European social dialogue in the commerce sector is the issue of the employment impact of the increasing proliferation of electronic commerce. In 1999, the social partners, EuroCommerce and Euro-FIET, are following up the conclusions of a conference on the subject held in Athens in April 1998, and have a launched a major training project.

The growing use of the Internet, not only as an information and dissemination tool, but also as a means for performing commercial transactions, has raised questions about the impact of the development of this medium on employment in the traditional retail sector. The impact of the development of electronic commerce on the employment situation in European commerce, a report prepared by the University of Athens estimates that the worldwide market for business-to-business electronic commerce alone will exceed EUR 200 billion by the year 2000. Electronic buying and selling not only raise issues relating to employment, but also bring certain legal, regulatory and technological requirements. For this method of commercial exchange to succeed in the long term, it is, for example, particularly important that the security of online transactions is guaranteed and the quality of service is maintained.

The employment impact of electronic commerce has become an important issue in the European-level social dialogue in the commerce sector (EU9807115F) between EuroCommerce and the European Regional Organisation of the International Federation of Commercial, Clerical, Professional and Technical Employees ([Euro-FIET](http://www.fiet.org/commerce/Electronic Commerce Pages.htm)). The social partners jointly commissioned the abovementioned University of Athens report (which was co-financed by the European Commission).

The impact of electronic commerce on employment

The report by the University of Athens argues that the impact of the deployment of electronic commerce on employment currently remains uncertain. However, a number of likely trends can be identified:

• some of the more traditional roles may disappear and new job descriptions will emerge;

• there is a need to upgrade skills, particularly in the area of information technology (IT); and

• changes are likely in the geographical location of work and in relation to working time arrangements.

There is a widespread perception that electronic commerce will have a negative effect on existing employment, particularly in businesses which are unprepared for its challenges. The greatest threat is perceived to be to employment in retail intermediaries, as technology allows producers to deal more directly with customers. Particular problems are seen as likely for small and medium-sized companies, which have less capacity for logistical investment and innovation, as they cannot benefit from economies of scale in the way that larger companies can.

However, the report argues that there is, at the same time, significant potential for job creation in new areas such as the new role of "web promoter": "As the market expands, new technologies will generate jobs through the creation of start-up companies (in multi-media, Intranet working and in new communication products), and through the creation of new professions (hotliner, webmaster, security manager, information net-manager, project and operations manager, lawyer specialised in electronic commerce etc)."

In terms of the impact of electronic commerce on employees as well as employers, there is a requirement for a rise in skill levels, particularly towards more creative IT skills. New activities will be found particularly in the areas of: product promotion and marketing; the monitoring of competitors; the management of communication between the enterprise and its customers and suppliers; and the overall management of the information and technology infrastructure.

The geographical location of work and hours of work are also likely to experience a transformation as technology makes the definition of the workplace more flexible, and there is an increasing demand for 24-hour customer service. The regulation of teleworking, working time, health and safety and the provision of support services will therefore become more relevant.

As the use of technology and job profiles are transformed, the importance of "upskilling" and lifelong learning cannot be overestimated. These changes are also seen to be likely to have a significant impact of the professional and pay structure of employment in the commerce sector, as demand for highly-skilled staff increases.

Social dialogue initiatives on electronic commerce

The challenges of electronic commerce were discussed at a tripartite European conference arranged by Euro-FIET and EuroCommerce with the assistance of DGV of the European Commission. Speaking at the conference, which took place on 6-7 April 1998, representatives of both employers' and trade union organisations spoke of the need to be prepared for the impact of the fast growth of this medium of exchange. They stressed in particular the need for education and training and for cooperation in collective agreements to avoid adverse effects on employment and working conditions.

The initiative launched in Athens has reportedly attracted strong support from national employers' organisations and commercial workers' trade unions. In May 1999, Euro-FIET and EuroCommerce launched a major joint project aimed at helping the retail and wholesale trade to adapt to electronic commerce, funded through the European Social Fund. It will try to define the changes in job profiles brought by new technology applications. These job profiles will then be used for adapting vocational training in commerce to the new demands. The project will be conducted by the social partner organisations and their members, in cooperation with research institutes in Denmark, Germany and Greece. A meeting to discuss the role of the different participants was due to be held in Brussels on 29 June.

Commentary

It remains difficult to envisage a world in which the majority of commercial transactions take place not through traditional retailers but through a variety of on- and offline electronic sources. Nevertheless, these new forms of electronic commerce have grown substantially in terms of turnover in recent years and are likely to expand rapidly in years to come. It is crucial for the social partners and the regulatory authorities to be prepared for the changes that these innovations are likely to bring about, particularly in relation to changes in working conditions and working hours and the requirement for up- and reskilling. The initiatives taken by Euro-FIET and EuroCommerce are an important step in this direction. (Tina Weber, ECOTEC Research and Consulting)