Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Swiss Exchange  >  Adecco Group AG    ADEN   CH0012138605

ADECCO GROUP AG

(ADEN)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector news

U.S. labor ruling raises risks for staffing firms

share with twitter share with LinkedIn share with facebook
share via e-mail
08/28/2015 | 06:21pm EDT

(Reuters) - A U.S. labor ruling that companies can be held liable for labor violations committed by franchisees and contractors creates risks for a swath of staffing firms that provides temporary workers to a broad range of industries, although some analysts doubted the ruling would significantly hurt the sector.

The National Labor Relations Board ruling on Thursday found that companies can be held liable for labor violations committed by franchisees and contractors even when they have only indirect control over workers, a decision that could give unions greater bargaining power.

The ruling has the potential to upend the economic models for staffing companies, subcontractors and franchises, according to the National Federation of Independent Businesses.

If these firms' clients are responsible for subcontractors' employees, "there’s very little reason to hire staffing companies for personnel reasons," said Jack Mozloom, national media director for the NFIB, most of whose members employ fewer than 20 workers.

"They will bring the work in house and the subcontracting jobs will vanish -- that’s really a concern for our members," Mozloom said.

Following the ruling, shares of major workforce companies Swiss-based Adecco SA (>> Adecco SA) and Dutch-based Randstad Holding NV (>> RANDSTAD) each fell more than 3 percent on Friday. Thursday's ruling involved recycling plant workers, and Adecco and Randstad are the market leaders in the United States in providing industrial temporary staffing, according to Randy Reece, an analyst at Avondale Partners.

Shares of U.S. workforce companies Robert Half International (>> Robert Half International Inc.), ManpowerGroup Inc (>> ManpowerGroup Inc.), and TrueBlue Inc (>> Trueblue Inc), also fell on Friday, but less sharply.

Still, the American Staffing Association, which represents large staffing companies, said the decision "may not significantly impact" the use of staffing services or client relations.

"Although we cannot definitively predict the long-term impact of the decision, prior board decisions that effectively made it easier for temporary workers to unionize did not demonstrably result in increased unionization of such workers," ASA General Counsel Stephen Dwyer said in a statement.

Temporary help services workers make up 2 percent of the nonfarm workforce, the group said, citing government data.

Spokespeople for Randstad, TrueBlue and ManpowerGroup referred questions to the American Staffing Association. Adecco did not immediately respond to a request for comment.

Wall Street analysts said they do not expect the ruling to significantly hurt the large staffing companies in part because of the challenges of unionizing that workforce.

"They can attempt all the tactics that they want to try to encourage unionization among temporary workers," said Reece, the Avondale Partners analyst, "but temporary workers are inherently difficult to unionize."

Jefferies analyst Dan Dolev said that even if clients of the staffing agencies saw higher costs, it would not lead them to significantly turn to permanent workers in favor of temporary ones. Permanent workers come with added costs, such as a more intensive process to find them and to lay them off.

"There’s a reason they are using temporary staffing and if they have to pay a little bit more for it, they’ll pay a little bit more," Dolev said. "There’s a point at which it becomes too expensive, but I doubt that it gets there."

(Reporting by Lewis Krauskopf in New York; Editing by Eric Effron and Christian Plumb)

By Lewis Krauskopf

Stocks mentioned in the article
ChangeLast1st jan.
ADECCO GROUP AG -4.32% 36.97 Delayed Quote.-36.88%
MANPOWERGROUP INC. -7.39% 53 Delayed Quote.-45.42%
RANDSTAD N.V. -7.29% 31.29 Delayed Quote.-42.52%
ROBERT HALF INTERNATIONAL, INC -10.24% 39.01 Delayed Quote.-31.18%
TRUEBLUE, INC. -1.62% 12.77 Delayed Quote.-46.92%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on ADECCO GROUP AG
03/26GLOBAL MARKETS LIVE: Occidental Petroleum's saving plan, Mylan-Pfizer merger ..
03/18The adecco group publishes 2019 annual report
TE
03/12ADECCO : Press Release THE ADECCO GROUP TO NOMINATE RACHEL DUAN TO THE BOARD OF ..
PU
03/12The adecco group to nominate rachel duan to the board of directors at annual ..
TE
02/26WALL STREET STOCK EXCHANGE : Salesforce’s CEO resigns, Walt Disney’s Robert Iger..
02/26Grow together and improved business mix drive margin strength
TE
02/26ADECCO GROUP AG : Slide show results
CO
02/26ADECCO GROUP AG : Annual results
CO
02/21ADECCO GROUP AG : annual earnings release
02/21Pearson braces for another year of U.S. textbook pain
RE
More news
Financials (EUR)
Sales 2020 21 385 M
EBIT 2020 842 M
Net income 2020 507 M
Debt 2020 531 M
Yield 2020 6,74%
P/E ratio 2020 11,1x
P/E ratio 2021 9,35x
EV / Sales2020 0,29x
EV / Sales2021 0,27x
Capitalization 5 650 M
Chart ADECCO GROUP AG
Duration : Period :
Adecco Group AG Technical Analysis Chart | ADEN | CH0012138605 | MarketScreener
Technical analysis trends ADECCO GROUP AG
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 20
Average target price 50,31  €
Last Close Price 34,86  €
Spread / Highest target 83,6%
Spread / Average Target 44,3%
Spread / Lowest Target -18,3%
EPS Revisions
Managers
NameTitle
Rolf Hugo Dörig Chairman
Hans Ploos van Amstel Chief Financial Officer
Ralf Weissbeck Group Chief Information Officer
David Norman Prince Independent Non-Executive Director
Alexander Gut Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
ADECCO GROUP AG-36.88%6 266
RANDSTAD N.V.-42.52%6 347
ROBERT HALF INTERNATIONAL, INC-31.18%4 421
MANPOWERGROUP INC.-45.42%3 110
PERSOL HOLDINGS CO.,LTD.6.05%2 455
GROUPE CRIT-36.68%573