Services Offshoring and its Impact on Productivity and Employment: Evidence from Germany, 1995–2006

Economists have recently recognised services offshoring as an important influence on domestic labour market outcomes. Services are of particular interest since their significance has grown in terms of both quantity and quality. Only one and a half decades ago, most services were considered non‐tradable, but the emergence and development of new information and communication technologies has made many services internationally tradable. The liberalisation of international trade in services trade has further accelerated the volume of services trade. Our econometric estimations focus on services offshoring by German manufacturing sectors. We use revised input–output data from 1995 to 2006. We first estimate the impact of services offshoring on labour productivity. We then measure the effects of services offshoring on labour demand. The results show that services offshoring increased sectoral labour productivity, but reduced German manufacturing employment. The overall results suggest that labour demand decreased over 1995–2006, because labour‐reducing productivity and substitution effects dominated labour‐augmenting scale effects from services offshoring.     

Ethical Pitfalls of Temporary Labour Migration: A Critical Review of Issues

The article discusses a particularly contentious aspect of labour mobility—state sanctioned and controlled temporary labour migration. In contrast to forced migration, which always has had a recognizable ethical dimension in terms of the universal right to asylum, temporary labour migration has tended to be viewed as an exclusively economic and thus ethically neutral phenomenon. This article presents a diametrically opposite approach to temporary labour migration: it is argued that this form of labour mobility creates a plethora of ethical challenges to the body which regulates it—the state. Furthermore, attention is drawn to employers’ rationalizations in relation to temporary migrant workers and trade unions’ responses to it. The article examines how these industrial relations actors deal with the moral hazards characteristic to temporary labour migration. It concludes with the exploration of the emergent issues in migration ethics and points out to a tentative research agenda.     

Globalization and Hong Kong's labour market: the deregulation paradox

The globalization of business has affected Hong Kong, giving rise to important changes in its labour market and with impacts on workers and labour organizations. This has been felt in the migration of manufacturing plants to China in combination with labour market deregulation via the government's guest worker policy. We examine the institutional implications of liberalizing the previous ban on the admission of guest workers. While this seeming reversal was tantamount to deregulation, it also produced regulation via a new body of norms and rules governing guest labour which were, paradoxically, restrictive and disabling for the affected parties.     

A comparison of perceptions of loyalty between bank tellers and internal customer groups in a retail bank in South Africa

The paper paints a portrait of service industry workers who are outside the institutional parameters of industrial relations. It considers the effects of hard work on the personal horizons of the working poor. By asking workers to describe target earnings and what a ‘better job’ means against a background of long hours, the study shows what distress selling of labour actually looks like. The results indicate that subjects correctly perceive their lack of opportunity and have horizons circumscribed by industrial norms.     

Globalization and Confrontation: The Transformation of the Australian Coal Industry

The Australian coal industry serves as a vivid illustration of the impact of globalization on workplace organization and workplace industrial relations. In this contribution we outline the changes and developments, from the organization of production through to the product market, that are impacting on workplace organization and industrial relations of the Australian coal industry. In particular the authors highlight the attempts and strategies of management to increase productivity, to realize functional and numerical flexibilities in the deployment of labour and to deregulate employment relations. Simultaneously, trade unions are faced with institutional, legal and global competitive pressures to conform to the flexibility strategies of managers. The result has been persistent and sporadic outbreaks of industrial disputation in the midst of the erosion of employment conditions and a shift towards greater managerial control of the labour process. The forces identified as globalization are systematically transforming workplace organization and impacting on the strategies of coal mine managers and trade unions.     

Over the Line: Managers' experience of a labour strike

The experiences of managers who continue to work through a labour stoppage is a largely overlooked question in industrial relations research and practice. Qualitative long interviews were conducted with managers who worked through a strike. A shared narrative for managers' strike experiences emerged. Managers perceived that their prestrike workplace was cooperative and characterized by positive labour‐management relationships. The strike was experienced as contentious and personalized with managers reporting that they and their families were targets of aggression from strikers. The managers envisioned a more formal poststrike workplace characterized by less collegial labour‐management interactions. We discuss the implications of these findings and call for further research on managers' experiences of industrial relations events. Copyright © 2014 ASAC. Published by John Wiley & Sons, Ltd.     

Globalization and labour rights: the case of Korea

In this contribution the background of Korean industrial relations (IR) is reviewed, followed by analysis of more recent changes with a special focus on globalization issues. We argue that globalization has both positive and negative effects on IR issues in Korea. There was a positive side of globalization in terms of worker rights, hence basic labour rights have been improved to meet global labour standards. However, there was a negative side to it as well in terms of working conditions and employment practices, which brought substantial setbacks for unions and rapidly eroded their power base. This negative side has more clearly appeared after the recent economic crisis.     

International Migration and Child labour in Developing Countries

This paper investigates the labor market effect of international migration on child work in countries of origin. We use an original cross‐country survey dataset, which combines information on international migration with detailed  individual‐level data on child labour at age 5–14 in a wide range of developing countries. By exploiting both within and cross‐country variation and controlling for country fixed effects, we find strong and robust evidence on the role of international mobility of workers in reducing child labour in disadvantaged households through changes in the local labour market.     

The rise of the machines: Capital imports and real manufacturing wages in 57 nations

Outward-oriented policy reform has attracted a large number of academics to the study of the trade-labour market nexus. One of these fields has focused on capital intensive (machinery) imports and its effect on manufacturing wages. The skill-enhancing-trade (SET) hypothesis was put forth to explain a potential relationship where an inflow of capital imports results in increased demand for skilled labour and decreased that of unskilled labour, and thus resulted in a rise in skilled wages and a decrease in their unskilled counterparts. This study revisits this hypothesis with a panel from the manufacturing sector of 57 nations. We improve upon previous studies in a number of ways. We add developed nations to the sample and examine capital imports from rich countries as well as the rest of the world. This takes into account the prominence of vertical production networks in international trade. We adhere closely to the neo-classical trade model and employ definitions of skilled and unskilled workers that capture the production process of particular items. Finally, we fit a robust dynamic panel data model that accounts for the endogeneity of the determinants of trade and wages. In this way we test whether the SET hypothesis is generally applicable as opposed to previous studies which use an ad hoc selection of countries and variables. We find that the SET hypothesis is not driving changes in manufacturing wages. Instead, worker productivity and GDP per capita explain these labour market outcomes.     

Foreign direct investment and inequality: Evidence from China's policy change

In this paper, we examine the impact of foreign direct investment (FDI) on local urban inequality in China. Specifically, we consider the FDI policy change as an exogenous shock on the local labour markets. We find that cities that have experienced a bigger policy change in promoting FDI between 1997 and 2002 are significantly more unequal in 2005. This pattern is mainly driven by the positive association between FDI liberalisation and skill premia. The result holds after we control for other policy changes, such as privatisation of state-owned enterprises, infrastructure and trade liberalisation. We then turn to investigate the mechanisms using firm and individual-level information. Our firm-level evidence shows that FDI firms not only hire relatively more high-skilled workers but also provide relatively higher wages to high-skilled workers compared to domestic firms. Moreover, the individual-level analysis shows that FDI has a significantly positive spillover effect on wages received by skilled workers employed by state-owned enterprises, but not wages of unskilled workers.     

Clusters,Chains and Compliance: Corporate Social Responsibility and Governance in Football Manufacturing in South Asia

A recent concern in the debate on corporate social responsibility (CSR) in developing countries relates to the tension between demands for CSR compliance found in many global value chains (GVCs) and the search for locally appropriate responses to these pressures. In this context, an emerging and relatively understudied area of interest relates to small firm industrial clusters. Local clusters offer the potential for local joint action, and thus a basis for improving local compliance on CSR through collective monitoring and local governance. This article explores the interrelationship between global governance, exercised through GVC ties, and local governance, via cluster institutions, in ensuring compliance with CSR pressures. It undertakes a comparative analysis of two leading export-oriented football manufacturing clusters in South Asia that have both faced common challenges on child labour. The article shows that both forms vertical and horizontal governance have played a part in shaping the response of the two clusters on child labour. Moreover, these two distinct forms of governance have also led to quite differentiated outcomes in terms of forms of work organization and child labour monitoring. This raises broader questions on how global CSR demands can locally be better embedded and the conditions under which football stitchers labour in these new work forms.     

Structural Change,Economic Crisis and International Labour Migration in East Asia

Increased international labour migration was one important dimension of structural change and globalisation in East Asia from the mid 1980s. Large international movements of mainly unskilled contract labour occurred in response to widening wage gaps between more and less developed countries in the region as the former experienced rapid structural change. Labour importing countries increasingly relied on unskilled migrant workers in less preferred jobs, in both export‐oriented and non‐tradable goods industries. The Asian economic crisis dramatically influenced the context in which international labour mobility had occurred in the pre‐crisis period. Important issues included a possible reversal in role of international migration in structural change, both among unskilled contract workers and more skilled migrants, and replacement of migrants by unemployed local workers. The paper argues that the Asian economic crisis did not reverse the fundamental trend toward greater reliance on unskilled migrant workers in agriculture, manufacturing and service industries. Business and professional migration remained significant and even rose in some countries during the crisis. However, several countries were forced to develop a more coherent policy towards migrant workers, in light of the social impact of the crisis.     

After Henry: Continuity and Change in Ford Motor Company

Since 1979 the Ford Motor Co. has attempted to introduce fundamental changes in its corporate strategy, management structure and labour relations. This article focuses on the impact of corporate restructuring on the management of Ford UK. Significant changes in industrial relations and work organisation have been tempered by strong continuities with Ford's maintenance of its traditional management prerogative. The most profound changes have been achieved in product development which has moved from functional hierarchy towards project management. Ford's interpretation of Japanese ‘lean production’ has been a significant factor shaping Ford's corporate agenda in America and Europe.     

Globalization,China's free (read bonded) labour market,and the Chinese trade unions

After two decades of economic reform during which China developed a strong export thrust into the world market, an industrial labour market has taken shape in China. But it is not really a free labour market in that deposits are generally required of workers when they commence employment. For some migrant workers this has led to a condition equivalent to being bonded, which enables Asian foreign investors to establish harsh labour regimes in the factories they manage. The Chinese official trade unions are at a crossroads – do they side with the workers, management or with the party-state?     

New Manufacturing Strategies and Labour in Latin America

Latin American scholars have shown considerable interest in the spread of Japanese methods in the continent and their potential impact on labour. Evidence from case studies shows intensive use of techniques such as multitasking, team-working, statistical process control and cellular manufacture. In some cases, firms have invested heavily in education and training in order to make viable new production strategies, and there is some evidence of attempts to stabilize labour forces and establish better plant-level relations with workers. This apparent break with the practices of peripheral Fordism does not appear to be accompanied by improvements in company-union relations. Where unions are strong, management have attempted to undermine union power. Where unions are weak, managements have continued to deny the legitimacy and relevance of union represcntation. Companies seek the flexibility to rnake labour work harder as well as smarter, and they are introducing individualized assessment and incentive schemes which tend to be opposed by collective representation.     

中低技术制造业集聚、创新与地方经济增长——基于木材加工业的实证分析

创新驱动是国家重大战略部署,中低技术制造业是我国制造业的主体,那么创新在中低技术制造业中扮演着怎样的角色？文章对产业集聚、创新和地方经济增长三者的关系提出了三个假说,构建了一个由创新担当中介作用的互动关系模型,并以木材加工业两个细分行业的企业数据为样本检验假说。回归结果表明：LMT制造业的创新活动对地方经济增长的影响与该行业所处的价值链位置有关。中间品行业集聚虽然有助于提高企业创新水平,但是这些创新活动并不能显著促进地方经济增长,终端产品行业的创新活动则能够显著提升地方经济增长。     

The Vicissitudes of a British Aircraft Company: Handley Page Ltd. Between the Wars

Focusing on government–business relations, this article contributes to the business history of the First World War. It examines how the linen industry was organised to meet military demand in both continental Europe and the UK. The German occupation of Belgium and northern France, and the consequent exploitation of raw material and manufacturing capacity, is an important theme. The article considers how the UK and Russia organised linen production and the role of establised Anglo-Russian commercial networks (including accountary firms) in facilitating wartime trade. Of major significance during the war was Trading with the Enemy legislation, and the article examines this in some detail before going on to look at the impact of government policy on the labour market at regional level. The article concludes that the war created new problems for the industry which contributed further to its secular decline.     

Compensating Differentials for Dangerous Work in a Labour Discipline Model

Wage compensation for occupational risk in Walrasian models has three properties: it generates efficient levels and allocations of risk, it enables workers in dangerous jobs to be just as well off, ceteris paribus, as workers in safe jobs, and it permits the estimation of willingness to pay schedules for safety from labour market data. This paper tests the status of these three properties under a simple model in which variable labour effort is induced by wage–safety rents and the threat of dismissal. It finds that all three must be modified, and that these results are robust over alternative specifications of labour market structure, the cost of providing safety, and the specification of the production function. The implications of this analysis are considered for both public policy questions and the interpretation of wage–risk studies.     

Management and the Taff Vale Strike of 1900

The Taff Vale Railway strike of 1900 stands as a landmark in the history of industrial relations in Britain. There is a substantial literature dealing with the strike and resulting court case. Yet relatively little attention has been paid to the underlying pressures and tensions which gave rise to the strike nor to its wider consequences: the focus hitherto has been on labour, politics and labour law rather than the dynamics of the struggle between capital and labour which raged throughout the railway industry. The strike resulted from a clash between an assertive labour movement and a beleaguered management with little financial room for manoeuvre. Victory for capital paved the way for far-reaching changes in technology and working methods without conceding the gains to labour through the agency of trade union action.