Redundancy and Early Retirement: The Interaction of Public and Private Policy in Britain, Germany and the USA

Labour force reductions have been a major issue in industrial relations in Western countries since the mid-1970s. Early retirement has enabled employers to structure these reductions better to suit their interests, and to reduce the damage to industrial peace which would otherwise occur. This paper looks at the role and nature of early retirement in cases of redundancy in three countries with different industrial relations and social insurance systems. Attention is given to how compensatory policies undermine protective policies; how the costs of early retirement are shared between the state and enterprises; the adequacy of early retirement benefits and their impact upon post-retirement income; and whether the state can be said to encourage early retirement.     

The Citizen‐Consumer as Industrial Relations Actor: New Ways of Working and the End‐user in Social Care

This article explores the role of the citizen‐consumer as an actor in public service industrial relations. Based on research into the New Types of Worker programme in social care, the article considers how new work roles engage end‐users as citizen‐consumers in work relations and their consequences for stakeholders. It highlights the forms assumed by these roles and the factors influencing their development and impact, concluding that if the citizen‐consumer is to be treated as an actor in industrial relations, researchers must show greater sensitivity to the categories of end‐users and to the service context.     

Successful Wage Concertation: The Economic Effects of Wage Pacts and Their Alternatives

Recent debates on pacts have focused on the prerequisites for their emergence, whereas questions of their efficacy have receded into the background. In particular, systematic analyses of the effectiveness of pacts in terms of their capacity to enhance economic performance are missing. The aim of this article is therefore to assess the economic impact of pacts. As the majority of pacts concern wages, the assessment will concentrate on a comparison of the performance of pacts with alternative governance mechanisms for wage policies, that is, alternative pay‐setting modes. The findings show that when wage pacts are endowed with the ability to govern lower‐level pay determination, they are better at enhancing economic performance than other forms of coordination.     

The Unexpected Appearance of a New German Model

Most Continental European labour markets and welfare states have experienced a substantial transformation. Germany is a case in point as it exhibits increasing levels of employment and a growing share of low pay and non‐standard work. The article claims that changes in labour market institutions play a major role, but changes in industrial relations at the sectoral level and individual firms' staffing practices are equally important. Regarding labour market institutions, the pattern found in Germany shows sequences of reforms addressing the margins of the labour market and contributing to a growing dualization of employment. This dualization trend was reinforced by micro‐level dynamics in industrial relations and company employment practices, where we can observe growing reliance on mechanisms of internal flexibility for the skilled core workforce and increasing use of non‐standard types of employment in less specifically skilled occupations, in particular in the private service sector. Hence, the adjustment of the German model can only be understood by taking into account the interaction of policy change and actors' adaptive behaviour.     

Remaking the World of Chinese Labour: A 30‐Year Retrospective

Over the past 30 years, labour relations, and, indeed, the entirety of working‐class politics in China, have been dramatically altered by economic reforms. In this review, we focus on the two key processes of commodification and casualization and their implications for workers. On the one hand, these processes have resulted in the destruction of the old social contract and the emergence of marketized employment relations. This has implied a loss of the job security and generous benefits enjoyed by workers in the planned economy. On the other hand, commodification and casualization have produced significant but localized resistance from the Chinese working class. Up until now, the activities of labour non‐governmental organizations and of the official trade unions have contributed to the state's effort of individualizing and institutionalizing labour conflict resolution through labour law and arbitration mechanisms. Finally, we provide a brief discussion of the impact of 2008's Labour Contract Law and the outbreak of the economic crisis on labour relations. We conclude that the continual imbalance of power at the point of production presents a real dilemma for the Chinese state as it attempts to shift away from a model of development dependent on exports.     

The social loss from private monopoly and optimal antitrust enforcement

In this paper we argue that the welfare loss from monopoly equals deadweight loss plus expenditures by monopolists to defend and antitrust enforcers to attack their monopolies. A model of a profit-maximizing monopolist and a social loss-minimizing antitrust enforcer is developed. We find ambiguous effects of deadweight loss and the price of resources used by either party (in maintaining or attacking the monopoly) on the total welfare loss from monopoly. Monopoly profit has a positive but diminishing impact on monopoly welfare loss. Thus the entire monopoly profit will not be transformed into socially useless resource expenditure.     

Do Industrial Relations Institutions Influence Foreign Direct Investment? Evidence from OECD Nations

The potential impact of industrial relations institutions on economic outcomes has been a key element in analyzing the governing of the global workplace. We present case information and analysis that show that there are trade‐offs between higher levels of economic outcomes and greater equity and employee voice associated with more and deeper labor market institutions. The estimates from the model show the impact of industrial relations system policies within a nation on a country's foreign direct investment (FDI) from other nations for the period 1985 through 2000 using data from nations that are members of the Organisation for Economic Co‐operation and Development (OECD). Examples of the impact of major transformations in national industrial relations systems on FDI for UK and New Zealand also are presented. Our results show that higher levels of industrial relations institutions from the firms’ perspective are usually associated with lower levels of FDI.     

Addressing the Legitimacy Gap in the Israeli Corporatist Revival

Since the mid-1980s, Israel's labour law and industrial relations have transitioned from a Continental corporatist system to an Anglo-American pluralist system. The process has been characterized by greater fragmentation of the labour market and the system of interests' representation. However, in recent years, there have been several episodes of nationwide collective agreements and social pacts. These agreements resonate with a second generation of social corporatist bargaining that has been identified in some European countries. In this article, I question the legitimacy of the new agreements. The legitimacy gap evolves from the use of corporatist instruments against the backdrop of a pluralist system. I discuss the attempts to increase the legitimacy of the corporatist instruments, pointing to their limited success. Future attempts must consider solutions that track the hybrid nature of the industrial relations system and devise institutions that bring together the traditional corporatist social partners and the new pluralist agents. Of particular importance is the need to consider the role of the new associations in civil society that voice the interests of the growing segment of disadvantaged workers in the secondary labour market.     

The Political Economy of Occupational Family Policies: Comparing Workplaces in Britain and Germany

With a shift in the political debate to more market‐driven social policy approaches during the past decade, politicians in a number of European countries have argued that employers should take on greater responsibilities in the provision of social policy. But why should employers get involved? After reviewing the relevant literature on firm‐level social policy, we analyse the conditions and causal pathways that lead to their provision. Our findings show that (i) the skill structure and level of the workforce are important conditions for firm‐level engagement; (ii) employers have usually been the ‘protagonists’; (iii) the role of unions has been more limited — in Germany they can largely be characterized as ‘consenters’, whereas in Britain, their impact is negligible; (iv) in accordance with the specific systems of industrial relations, the design in Germany very much follows the concept of social partnership; in Britain the design is usually based on unilateral management decisions; and (v) based on these conditions and causal pathways, ‘enclave social policy’ is the likely result of the expansionary policy development, although in Germany, these policies have the potential of becoming an element of ‘industrial citizenship’.     

Toward Flexible Industrial Relations? Neo-Liberalism,Democracy, and Labor Reform in Latin America

Neo-liberal economic reforms have placed significant pressure on traditional industrial relations systems throughout Latin American. In this context, most countries have revised their basic labor legislation. Yet, despite similar economic pressures, countries have moved in varying directions in revising their labor laws, and industrial relations systems remain highly diverse. This paper focuses on democratization, institutional legacies, the role of organized labor, and the political negotiations surrounding labor law changes to help explain this diversity.     

Economic Integration and State Responses: Change in European Industrial Relations since Maastricht

The article analyses industrial relations change in the six largest EU countries since 1992 in relation to increased internationalization pressures. Based on qualitative and quantitative analysis, it distinguishes between associational and state governance, and detects that despite a predominant, but not universal, trend of weakening trade unions and collective bargaining, no overall liberalization has occurred in the political regulation of employment (employment policies, welfare state, labour law, state support to collective bargaining, public sector). Rather than converging towards neoliberalism, industrial relations emerge as more politically contingent and dependent on multiple forms of power, which are affected by internationalization in different ways.     

The Rise of Experimentalism in German Collective Bargaining

This paper addresses the debate on union strategies by analysing industrial relations change in three of Germany's most internationalized sectors: chemicals, metalworking and construction. It characterizes two logics of change in German industrial relations: a battlefield logic and an experimentalist logic. It demonstrates historical trends towards centralization of wage bargaining in each sector before looking at recent pressures for decentralization and flexibility. In chemi‐cals, the social partners control decentralization. In metalworking increasing flexibility is characterized by a mismatch between the national‐level union and the district‐level employers. Finally, the construction union seeks to replace the centralized bargaining system with a state minimum wage.     

The Impact of Socialism on Work Stoppages

The impact of socialism on work stoppages in 15 industrialized countries for the years 1956–1965 was tested using three measures of socialism: (1) the proportion of tangible wealth owned by the state, (2) the ratio of public welfare expenditures to gross national product, and (3) whether or not the socislist party was in power. Results of the analyses performed show that socialism a p peared to have little impact on work stoppage rates among the countries.     

Industrial Relations in Transition Economies: Emergent Industrial Relations Institutions in Bulgaria

East European societies currently in transition to market economies are creating new structures for industrial relations. Transition has ambiguous effects upon the relations between industrial relations institutions and the state. On the one hand, economic pluralism implies separation between state and economy and 'depoliticization'. On the other, economic crises and threats to social order require co-operation between state and unions. The influence of the state is greater because of the embryonic form of employer organization and enterprise-level management. This paper examines the political and economic contexts of industrial relations in Bulgaria, as an example of one type of 'constrained' collective bargaining system. The paper emphasizes continuities between the communist and post-communist period, and the central role of trade unions in the transition process.     

The Impact of European Integration and German Unification on Industrial Relations in Germany

Can the present turmoil in German industrial relations be attributed to the effects of the Single Market, or to unification, or to other factors? European regulation or legislation may intervene in the German industrial relations system, may remove responsibilities from national actors, or may, by deregulation, induce stronger interdependence between national regimes. Various instances are considered to evaluate the actual and potential EU impact on German industrial relations. The evidence suggests that fears of ‘social dumping’ in the richer member-states are largely unfounded, and that the effects of unification and the recession on German industrial relations are currently more significant than the impact of European integration.     

The Impact of Industrial Design Effectiveness on Corporate Financial Performance*

Despite the growing recognition of industrial design's value in creating sustainable competitive advantage, few studies have attempted to quantify the contribution that design makes to company financial performance. This article examines the relationship between industrial design and company financial performance in order to assess industrial design's contribution to this performance. Effective industrial design was evaluated by asking a panel of 138 industrial design experts to rank the industrial design effectiveness of publicly traded firms within nine selected manufacturing industries; the ranking process yielded 93 firms. Based on the rankings, firms within each industry were divided into two groups: those judged as exhibiting high design effectiveness versus those judged as low in design effectiveness. Audited financial data reported to the SEC across a seven‐year period from 1995 to 2001 were used to evaluate financial performance. Using traditional financial ratios senior managers consider essential performance measures, those firms with high design effectiveness were hypothesized to have higher returns on sales, returns on assets, and growth rates of sales, net income, and cash flow than firms with low design effectiveness. High design effectiveness firms further were hypothesized to have higher stock market returns. These comprehensive, corporate financial measures incorporate expenditures made on industrial design (industrial designers' salaries, design consultants' fees, computer‐aided industrial design equipment) and expenditures that designers influence through their design choices (material costs, manufacturing equipment). This analysis reveals that firms rated as having “good” design were stronger on all measures except growth rate measures. These results provide strong evidence that good industrial design is related to corporate financial performance and stock market performance even after considering expenditures on industrial design. Further, the patterns of financial performance over the seven‐year horizon suggest that these effects are persistent.     

Interests, Institutions and Industrial Relations

In the comparative politics literature there are two main approaches to the impact of international economic change on national policy patterns. The first — new institutionalism — has been very influential in comparative industrial relations scholarship. The second, which focuses on the role of interests, has been less prominent. Comparing industrial relations reform in Australia and New Zealand during the 1980s and 1990s, this paper argues that there are a number of limitations to an institutionalist approach and outlines a framework for the comparative study of the impact of international economic change on national patterns of industrial relations which integrates both institutionalist and interest‐based approaches.     

Between Fragmentation and Centralization: South Korean Industrial Relations in Transition

This study investigates profound changes in South Korean industrial relations after the Asian financial crisis of 1997. Korea's neoliberal labour reforms have produced a large number of non‐standard workers, deepening the union representation gap. Realizing that the fragmented enterprise unions could not adequately protect workers from this degradation of labour, trade union leaders began a major organizational drive at the industry level and tried to institutionalize sectoral bargaining. A political space for union centralization was partially opened because the state needed labour's co‐operation to implement neoliberal reform packages. However, disorganized centralization in Korea, where important decisions on wages and working conditions have been negotiated mainly at the company level, has faced limitations in achieving meaningful changes in the dualistic structure of the labour market. This study concludes with a review of changes in Korea's labour law in 2010 and a discussion on the effects of the law on bargaining rights of non‐standard workers and the incipient industry‐level bargaining. This trend towards union centralization may continue, but the notable gap between the formal bargaining structure and actual practice is expected to widen.     

The Effect of Labor Relations Laws on Unionization Rates within the Labor Force: Evidence from the Canadian Provinces

We examine the potential of labor‐relations reforms to address wage inequality by relating an index of the favorableness to unions of Canadian provincial labor‐relations laws to changes in industry, occupation, education, and gender‐specific provincial unionization rates. While we find some evidence of larger unionization gains among high‐school–educated workers, the differences across groups are small and in some cases suggest larger gains among professionals. Overall, the results suggest a limited potential for reforms in labor‐relations laws to mitigate growing labor‐market inequality.     

Counterpoising Collectivism: Performance-related Pay and Industrial Relations in Greenfield Sites

This paper addresses some of the industrial relations ramifications of performance-related pay (PRP) using empirical data from both new and longer established firms in the Republic of Ireland. Particular emphasis is placed on the adoption of PRP systems based on performance appraisal and the implications of such systems for collectivism in industrial relations. The paper concludes that the diffusion of such systems is indicative of increasing employer attempts to individualize the employment relationship and exclude union penetration. It is further argued that such PRP systems, irrespective of the motivation for their establishment, undermine the essence of collectivism and solidarity in industrial relations.