The de-collectivisation of pay setting in Britain 1990–98: incidence,determinants and impact

What were the causes and consequences of declining collective bargaining coverage in Britain? The demise of collective bargaining did not lead to a greater use of individualised payment mechanisms, ‘high-involvement’ practices or productivity gains. Wage inequality rose as a result of the decline. However, workplaces that abandoned bargaining created more jobs. Overall, these results raise questions about Britain’s labour market performance during the 1990s because they suggest that falling unemployment as a result of weaker trade unions came at the price of slower productivity growth and widening male wage inequality.     

Collective bargaining and new work regimes: ‘too important to be left to bosses’

The formal negotiations process remains perhaps the least‐studied moment of collective bargaining. Drawing on ideal types of ‘distributive’ and ‘integrative’ bargaining and the ‘formal/informal’ distinction, this article reports non‐participant observation and ethnographic research into the negotiations process that enabled a change agreement in a British multinational, hereafter anonymised as FMCG. Informal bargaining relations provided the backdrop to—and emerged within—the formal negotiations process. Formal bargaining established new employment contracts based on a simplified internal labour market and generated the joint governance processes to enable and regulate the change process. Neither management nor union strategy was wholly derived from rational, interest‐based positions. The negotiations process was essential to strategy formation and to the emergence of sufficient ‘integrative’ bargaining for all parties to devise and approve new processual institutions and norms to deliver a more flexible labour process and to restore the long‐run viability for ‘distributive’ bargaining.     

Employment relations,cost minimisation and inter‐organisational contracting

This article explores and theorises the employment relations consequences of cost minimisation in the management of inter‐organisational contracts for less‐skilled work. Case‐study data reveal that cost minimisation creates and exacerbates employment relations problems, with the ‘success’ of particular tactics dependent on the relative tractability of broader economic conditions and social relationships.     

From collective bargaining to ‘personal’ contracts: case studies in port transport and electricity supply

‘Personal’ employment contracts have been presented as a conduit for individualisation, facilitating a more equal, open and flexible employment relationship. This article explores the reality of their introduction in two industries. It argues that the contracts have been used symbolically and contributed to a growth in employer power rather than transparency.     

Transitions In the Psychological Contract: Some Evidence From the Banking Sector

This study examines the psychological contract in a sample of 107 employees in a retail bank. Deregulation, market-entry by non-traditional suppliers, and the introduction of advanced technology have changed the security of and rules implicit in the employment contract in the UK banking sector, which is one of the leading contenders for downsizing and delayering. Many banks are experiencing increased employee cynicism. New structures and technology, demanding levels of customer service, and new competitors have produced heightened attention towards performance and are associated with the need for employees to develop new competencies, such as relationship-handling and sales skills. Regardless of whether banks pursue high performance management systems or control-based HR strategies, the requirement for committed and engaged employees able to develop new competencies is an assumed constant. Demographic factors such as age, service and sex are found to be partial predictors of some attitudinal items. However, these proxy measures of attachment to the old employment deal are not related to items that consider commitment or satisfaction. the psychological contracts in the bank are highly fragmented. Seven underlying constructs are revealed: ‘frustratedly disengaged’, ‘still ambitious’, ‘passively flexible’, ‘guidance seekers’, ‘buy me outers’, ‘don't push me too fast’ and ‘just pay me more’. Implications of the research for HRM, the management of new internal labour markets in the banks and future directions of research on the psychological contract are discussed. It is concluded that a new set of internal labour markets are being created within the banks, the dynamics of which clearly revolve around a wide range of individual factors. Accepted wisdom about participative management practices will be challenged in the HR strategies of the late 1990s.     

The collective bargaining of flexicurity: A case for sector‐level analysis? The Italian chemical and metalworking sectors compared

Although employment relations in Europe have long been seen as a factor of rigidity, limiting managerial discretion and adaptability, in the last 30 years, they have witnessed a trend towards decentralisation of collective bargaining and negotiations increasingly centred on flexibility–security trade‐offs between employers and employees. Research on the contribution of collective bargaining to the so‐called flexicurity has mostly focused on national‐level institutional arrangements. In this article, we contend that meso‐level differences need to feature more prominently in the debate. Our comparison of two sectors in the same country (chemicals and metalworking in Italy) shows that decentralisation has divergent effects on flexicurity issues depending in particular on differences in market structures and on depth of bargaining. The interplay between these two factors affects what we refer to as procedural security, which we view as important in ensuring sustainable trade‐offs between flexibility and security.     

Human Resources in the People's Republic of China: the ‘Three Systems’ Reforms

This article discusses the human resources implications of the comprehensive ‘three-systems’ reforms in state-owned enterprises introduced in the early 1990s in Northeast China in terms of labour contracts, rewards systems and social insurance. It critically examines current developments in industrial relations vis-a-vis each of these categories. the upshot of these changes is a move away from the old ‘iron-rice-bowl’ employment system towards a labour-market ‘with Chinese characteristics’. Such a strategy is not without its political risks, particularly if it leads to greater joblessness without a nationwide welfare ‘safety-net’ being fully put in place. If the ‘three systems’ reforms were first piloted in 1992, it was not until 1995 that they began to be extended nationally. Such changes may be of considerable potential importance to HRM managers in multinational companies interested in forming strategic alliances and joint ventures with Chinese state-owned enterprises.     

Employment relations without collective bargaining and strikes: the unusual case of civil servants in Germany

The article deals with the widely neglected employment relations in the public sector of Germany with a special focus on civil servants. It is subdivided into two main parts. A shorter part elaborates on public employees and collective bargaining, a longer one on civil servants and their diverging forms of employment relations without the right to collective bargaining and strike. In order to better understand major changes that have taken place since the mid2000s, we chose a long-term perspective and examine traditional as well as present forms of interest representation. Limited degrees of decentralisation and their lasting diverging consequences are analysed in great detail.     

Understanding continuity in public sector HRM through neo‐institutional theory: why national collective bargaining has survived in English local government

Most HRM research over recent decades has concentrated on ‘change’, charting ever more fragmented, individualised and unitarist employment relationships. This is equally true of public sector HRM, where the emphasis has been on neo‐liberalism and marketisation. However, in many countries and sectors, collective, pluralist approaches to HRM and industrial relations have proved remarkably resilient. This article uses Neo‐Institutional theory to explain the ‘continuity’ of one such HRM system: national collective bargaining in English local government (1979–2007). We argue that this survives because it manages the political and managerial processes that link central government and central–local relations and acts as a conduit between institutional stakeholders to deliver services to the public. By understanding the ‘passive consensus’ that holds the collectivist HRM system together, we can anticipate the forces that might pull it apart.     

Decentralisation of collective bargaining: a case study

While a number of surveys have identified a trend towards decentralised bargaining, this article is one of the first to examine the process of decentralisation. The decision of Coats Viyella PLC to decentralise bargaining in its apparel division is examined in detail and the outcomes of the first round of decentralised negotiations are analysed.     

The impact of Greek labour market regulation on temporary employment – evidence from a survey in Thessaly,Greece

This paper uses an original data-set for 186 workplaces in Thessaly (central Greece), to study consequences of Greece's strict employment protection law (EPL) and national minimum wage for temporary employment. We find higher temporary work contract rates among workplaces that pay low wages close to the minimum. We also find that EPL ‘matters’, in particular, managers who prefer temporary contracts because temporary workers are less protected definitely employ more. Our findings thus support the view that a firm's HRM decisions regarding internal versus external allocation of tasks are influenced by labour regulation.     

More voice after more exit? Unstable industrial relations in Central Eastern Europe

The article examines the industrial relations developments in the post‐communist countries that entered the EU in 2004. Rather than introducing the ‘European Social Model’, EU accession has led to some social tensions, in spite of relatively strong economic growth, because of deregulation, European Monetary Union conditions and the enduring need to compete for foreign investment. EU institutional promotion of social dialogue through the Directive on Information and Consultation of Workers, sector social dialogue committees and the European Employment Strategy has only had limited effects in increasing the ‘voice’ of employees in employment relations. National‐level social dialogue has produced poor results and has even been weakened in Slovenia (where it was originally strong) and, initially, in Slovakia. The lack of ‘voice’ for employees has led to increased ‘exit’ through political populism/abstention and migration. A double paradox emerges. Pro‐labour policies are being developed not by the EU, but rather by its opposite, Euro‐sceptical governments (in Poland and Slovakia), while in the workplaces, employers are forced to concessions not by their employees, but by those who leave and cause labour shortages. However, there is also some evidence of a resurgent ‘voice’ from below, through strikes, organising campaigns, informal collective protests and collective bargaining innovations. Drawing on both theory and history of industrial relations, it is concluded that some preconditions for more stable social compromises including more ‘voice’ are emerging.     

Bikes versus lease cars: the adoption,design and use of cafeteria systems in the Netherlands

In the 1990s, Dutch employers started adopting individualized pay systems, commonly called ‘cafeteria systems’. Reports on their use by employers and employees suggest a bewildering variety in their adoption, design and use (by employees). This paper presents an analytical framework to analyse this variety. We distinguish as the main explanatory factor whether there has been voluntary or coerced adoption. The latter refers to introduction as part of sectoral collective labour agreements. Different adoption drivers are argued to have consequences for the design and employee use of cafeteria systems.     

‘Change or hold: reexamining HRM to meet new challenges and demands’: the future of people at work: a reflection on diverging human resource management policies and practices in Dutch organizations

As a consequence of continual change pressures on everyday organizations, a gradual but noticeable shift is taking place in the way managers and employees view the employment relationship. Expectation patterns between both parties are starting to diverge into what seems to be new forms of managing people, based on different assumptions regarding their importance in the (knowledge based) economy. Traditional differences in employment expectations between superiors and their subordinates, between higher and lesser educated and between intrinsically and extrinsically motivated employees, are currently making place for differences between younger and older knowledge workers and for diversity and professionalism. In this article, HRM is contrasted against two emerging approaches towards the management of people, which are currently subsets of HRM, but gaining momentum as potential replacements for HRM. First, we identify ‘Transaction-based Management of People (TM)’ in which the employment relationship mirrors that of a financially driven exchange relationship, similar to transaction economics. We refer to the second approach as ‘Professional-based Management of People (PM)’ in which the nature of the employment relationship reflects the recognition of people in organizations as ‘true’ professionals who know best what constitutes superior business performance. These approaches have been empirically examined by means of a representative survey among Dutch directors and managers.     

Organised decentralisation,uneven outcomes: employment relations in the Italian public health sector

This article looks at the difficulties of adapting a very centralised employment relations system in a country characterised by a deep regional economic divide. In particular, by looking at the Italian public health sector, it is contended that organised decentralisation of employment relations implemented against wide regional differences led to uneven outcomes in second‐level (organisation) collective bargaining.     

Individualism and collectivism: into the 1990s

New, employer-led initiatives in the management of human resources are said to have pitched the emphasis towards the ‘individualistic’ rather than the ‘collectivistic’ aspects of the employment relationship. The marginaliza-tion of trade unions and collective bargaining which this has entailed are but two (albeit fundamental) facets of a wide-ranging set of issues and repercussions. Individualization of employment policies throws up dilemmas and unresolved challenges for managers, trade unions and employees.

In embarking upon a major new empirical research project it has become necessary to revisit and review the utility of the currently available literature. In particular, how well would the traditional approaches to modelling individualism and collectivism cope with the new directions taken by recent managerial initiatives? The results of this analysis contribute the heart of this article. It is suggested that previous approaches ignore key dimensions of change which managers are currently pursuing. A new set of categories is proposed for understanding the mix of individual and collective elements in current developments. It is argued that these more accurately reflect current issues and tensions in management strategy.     

Commitment to company and labour union: empirical evidence from South Korea

Commitment is an important part of business and a vocal part of the lexicon of many commentators and actors in the employment relations arena, including management, trade unions and policy makers. This is partly in the context of the interest in many countries in human resource management, in which commitment is seen as a key part, and the more recent ideas of ‘employee engagement’. Commitment, and the related topic of dual commitment, has also generated academic interest. However, much of the work has come from the US. This paper applies such ideas via a set of hypotheses in a different context – South Korea – with commonly viewed widespread high commitment, both to (and from) companies (e.g., strong internal labour markets) and unions (e.g., militancy). Is there a paradox in this duality, or can workers be committed to both companies and unions? What are the antecedents of this? This paper finds that workers can have dual commitment and that different factors affect the commitment to company and labour union, although labour–management relations climate, job satisfaction, as well as company tenure, are common predictors     

Epidemics,labour markets and unemployment: the impact of SARS on human resource management in the Hong Kong service sector

This article examines the links between epidemics and their economic consequences, specifically in terms of their impacts on labour markets and jobs. To exemplify the above, we examine the effects of SARS (Severe Acute Respiratory Syndrome) on the Hong Kong economy, its labour market and its level of employment and unemployment. The article hypothesizes that the greatest impact would be on human resource management (HRM) in the service industries and on particular sub-sectors, such as the hotel sector. It concludes that the dramatic demand and supply ‘shocks’ significantly affected both the demand for and the supply of labour in the sector, with discernible HRM consequences.     

Redefining retirement: age equality and the rise of performance management

How do individuals retire when there is no default retirement age? The changes to the retirement regulations were aimed at extending individual choice, but with the use of performance management, employers have a new tool with which to control the time and manner of retirement. Employees who fail to perform as required are now to be ‘managed out’. Therefore, retirement needs to be treated as an outcome of workplace employment relations with consequences for all age groups.     

Accounting for the trend in trade union recognition in Ireland

Considerable controversy surrounds the issue of union recognition in Irish industrial relations. Academic commentators have sought to identify and explain the trend in recognition since the 1980s. Their arguments are examined and tested. No secular rise in non‐recognition is evident, and ‘individualisation’ and ‘union substitution’ are shown to add little to explaining the trend. No evidence is found that the trend reflects Irish employers pursuing union suppression and US‐employers pursuing union substitution. The significant development is a sharp rise in non‐recognition among new US employers. Their anti‐union animus does not, however, appear to be coupled with any distinctive or generalised union avoidance strategy.