Three elements contributed to the measures of employers’ flexible labour policies to
reduce labour costs: (i) ‘Downsizing’ was defined as a reduction in the number of
employees over the past three years, plus at least one of the following three forms of
outsourcing: former employees transferring to self-employed status but remaining onsite;
current use of on-site contracted labour;
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or an increased use in the past three
years of outsourcing to replace employees. The combination of cuts in direct employment
with outsourcing provides a stronger indication of workplace policy than does
a mere cut in numbers, which could simply indicate competitive weakness; (ii) ‘High
outsourcing’ used the same three outsourcing items just described, but took a positive