Labor Relations Commons^™

Still A Coordinated Model? Market Liberalization And The Transformation Of Employment Relations In The German Telecommunications Industry, Virginia Doellgast

Virginia Doellgast

This paper examines recent changes in collective bargaining and employer strategies in the German telecommunications industry following market liberalization in the late 1990s. Germany’s distinctive co-determination and vocational training institutions encouraged large firms to adopt employment systems in technician and call center workplaces that relied on high levels of worker skill and discretion. However, organizational restructuring is undermining these gains, as firms use outsourcing and the creation of subsidiaries to escape or weaken company-level collective agreements. These trends have substantially weakened unions and contributed to the further disorganization of coordinated bargaining structures. Findings are based on interviews with union and …

Vertical Disintegration And The Disorganisation Of German Industrial Relations, Virginia Doellgast, Ian Greer

Virginia Doellgast

Drawing on case studies from the telecommunications and auto industries, we argue that the vertical disintegration of major German employers is contributing to the disorganisation of Germany’s dual system of in-plant and sectoral negotiations. Subcontractors, subsidiaries, and temporary agencies often have no collective bargaining institutions, weaker firm-level agreements, or are covered by different sectoral agreements. As core employers move jobs to these firms, they introduce new organisational boundaries across the production chain and disrupt traditional bargaining structures. Worker representatives are developing new campaign approaches and using residual power at large firms to establish representation in new firms and sectors, but …

Collective Voice Under Decentralized Bargaining: A Comparative Study Of Work Reorganization In Us And German Call Centres, Virginia Doellgast

Virginia Doellgast

This article compares the process of and outcomes from work reorganization in US and German call centres, based on four matched case studies in the telecommunications industry. Both German cases adopted high-involvement employment systems with broad skills and worker discretion, while the US cases relied on a narrow division of labour, tight discipline and individual incentives. These outcomes are explained by differences in institutional supports for collective voice. Works councils in the German companies used their stronger participation rights to limit monitoring and encourage upskilling at a time when US managers were rationalizing similar jobs. Findings demonstrate that industrial relations …

How Does Market Making Affect Industrial Relations? Evidence From Eight German Hospitals, Ian Greer, Thorsten Schulten, Nils Böhlke

Ian Greer

The introduction of market mechanisms matters for industrial relations. In the German hospital sector, national liberalization policies have put immense pressure on local management and worker representatives and led to the growth of a low-wage sector. In case studies of eight hospitals, we find some locales where market making has led to union revitalization and mobilization, but this effect varies. Using an eight-way comparison, we infer a configuration of three aspects of the local political economy – labour markets, politics, and codetermination rules – that together provide a well fitting explanation for both variation and change.

Beyond National “Varieties”: Public-Service Contracting In Comparative Perspective, Ian Greer, Ian Greenwood, Mark Stuart

Ian Greer

[Excerpt] In this chapter, we will explore how work in contracted-out public services, including that in the voluntary sector, maps onto the broader international political economy of work. Comparative scholars often write about society correcting the excesses of the market, and it is hard to imagine a more relevant phenomenon to this than the voluntary sector. Yet this sector is itself subject to market forces, ironically perhaps, due to its ever-closer relationship with the state. Our study of employment in welfare-to-work services in the UK and Germany, whose findings are summarised below, shows how this relationship works and what its …

Deregulation And Restructuring In Telecommunications Services In The United States And Germany, Rosemary Batt, Owen Darbishire

Rosemary Batt

[Excerpt] Because of the slower pace of reform, however, Telekom also stands to learn from the mistakes made in the United States, where deregulation has led to increased inequality among consumers and workers. For consumers, the restructuring has benefited businesses because they no longer pay rates that subsidize universal residential service. Both business and high-end retail customers can take advantage of falling prices for long-distance calling, high-speed networks, or enhanced features such as voice messaging. For lower-income consumers, however, the basic costs of local service have risen, and these consumers are less likely to be able to take advantage of …

Up Against The Fallen Wall: The Crisis Of Social Partnership In Unified Germany, Lowell Turner

Lowell Turner

[Excerpt] This book addresses two central and related sets of questions. First, what type of political economy is emerging in unified Germany? How "West German" is it? Is Germany permanently polarized into East and West or converging on a single, integrated political economy? To what extent is the "coordinated market economy" (Soskice 1991) becoming less, or differently, coordinated? The answers to these questions will affect the outcomes of issues ranging from policy and politics to production organization. Second, what has happened to the famous German "social partnership" since unification? Do the employer offensives of 1993-1996 in the pattern-setting metal and …

Unifying Germany: Crisis, Conflict, And Social Partnership In The East, Lowell Turner

Lowell Turner

[Excerpt] I argue that social partnership is alive and well in eastern Germany. My evidence for this surprising outcome includes the IG Metall strike victory of 1993 and plant-level case studies of restructuring and industrial relations in the metal and electronics industries of eastern Germany. The success of social partnership in eastern Germany can be traced both to the flexible suitability of institutions transferred from the West and to the actor choices in the negotiations and conflicts that have made it possible to adapt these institutions to a new environment. Both the institutional and political aspects of the argument are …

The East In Open Conflict: The Great Strike Of 1993, Lowell Turner

Lowell Turner

[Excerpt] Because it is impossible in one book to examine all German institutions of negotiation, this book focuses on one important set of relations at the heart of social market regulation: the "social partnership" between labor and management. "Social partnership," a term widely used throughout the European Union but little known in the United States, refers to the nexus—and central political and economic importance—of bargaining relationships between strongly organized employers (in employer associations) and employees (in unions and works councils) that range from comprehensive collective bargaining and plant-level codetermination to vocational training and federal, state, and local economic policy discussions. …

Social Partnership In Germany: Lessons For U.S. Labor And Management, Lowell Turner

Lowell Turner

German industrial relations in the postwar period have made a major contribution to German industrial success. The German system is rooted in the explicit recognition of well organized interests: strong, assertive employers and employers' associations not afraid to demand what they think is right, including wage restraint as well as reorganization of production toward "lean production"; and strong, assertive unions not afraid to demand what they think is right, including broad skills training, high wages, a shorter workweek, and a "human-centered" work organization. Amazingly, these strong forces end up with negotiated outcomes in a system that is accurately called "social …

Rank-And-File Participation In Organizing At Home And Abroad, Lowell Turner

Lowell Turner

[Excerpt] We know that we need labor law reform. But it is also clear that this is not all we need; nor can we expect to achieve legal reform simply by electing Democrats. That strategy did not work in 1978-79 or in 1993-94, and it will not work in the future. In the face of inevitably powerful and well-organized business opposition, even the most well-financed and articulate lobbying campaign for labor law reform can fail. What was missing in 1978-79 and in 1993-94 and is urgently needed now is the pressure of a massive social movement, mobilized to transform and …

Introduction: An Urban Resurgence Of Social Unionism, Lowell Turner

Lowell Turner

[Excerpt] The essays presented here examine the emergence, successes, and failures of contemporary urban-based labor movements, especially in the United States, where such developments are most significant, but also in the United Kingdom and Germany in comparative perspective. Our central question is why such labor movements have emerged prominently and achieved significant successes in some cities but not in others. A comparative analysis points to the central role of two factors: agency, specifically the choices and strategies pursued by union leaders and their organizations; and opportunity structure, located in the presence or absence of particular barriers in the institutional, political, …

Institutions And Activism: Crisis And Opportunity For A German Labor Movement In Decline, Lowell Turner

Lowell Turner

In recent decades, German unions have rested on their institutional laurels even as the ground has slipped away. This article analyzes two recent innovative campaigns based on grassroots mobilization that, the author argues, offer possibilities for renewed union strength. A breakthrough campaign against a militantly anti-union firm in the retail industry demonstrates the potential for a German brand of social movement unionism. The story line and institution-building strategy of this campaign fall entirely outside the framework of traditional German industrial relations. A second, very different campaign, from deep inside that traditional framework, has mobilized union members in Nordrhein-Westfalen (IG Metall’s …

Perils Of The High And Low Roads: Employment Relations In The United States And Germany, Lowell Turner, Kirsten S. Wever, Michael Fichter

Lowell Turner

[Excerpt] The U.S. crisis is characterized by growing income inequality, a shrinking safety net, and the decline of worker representation. Like the German crisis, it is caused in part by intensified global competition. Unlike in Germany, problems in the United States have also been exacerbated by deregulation, short-term horizons (e.g., quarterly reports to shareholders), and the decline of the labor movement.

Both Germany and the United States, however, have substantial political, economic, and social resources to use in solving their problems. The contemporary crises do not appear for either of these countries to foreshadow a major collapse like that of …