Category

Case-study

Economic impact of political protests (strikes) on manufacturing firms : evidence from Bangladesh

By | Bangladesh, Case-study, India, Social dialogue

Abstract

Political protests in the form of strikes, locally known as hartal, remain quite common in the Indian subcontinent countries. Such a form of protests is associated with mass movement, intended to cause a total shutdown of economic activities and often results in coercion, violence, and damage to both public and private properties. Utilizing the World Bank Enterprise survey data of 2007 and 2013 of Bangladesh, this study examines the impacts of hartals on manufacturing firms. We find that political protests significantly increase costs for firms. Using flexible cost function based on factor analysis we see that the factor-neutral effect of strikes is positive and statistically significant, showing evidence of a reduction in firm productivity due to hartals. However, we did not find any evidence for systematic factor re-optimization by firms – in response to political strikes – suggesting that firms do not reallocate factor shares to tackle uncertain and irregular shocks like hartals.
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Perspectives on Social Pacts in Spain: Social Dialogue and the Social Partners

By | Case-study, Social dialogue, Spain

Abstract

The return of social pacts in the context of the current economic crisis, as seen in southern European countries, invites the revival of the discussion about the development of social dialogue practice in its specific context. Based on a longitudinal analysis we examine the agenda of Spanish tripartite social pacts. We do this by assessing their priorities and the actors’ strategies for their involvement in social dialogue by taking the overall political, legal and social context into account. The results are then used to discuss the future implications for Spanish social partners. Challenges regarding the future role of the social partners in collective bargaining, their political exchange and their dependence on political allies are observed.

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Trade unions and social dialogue: Current situation and outlook

By | Case-study, Hungary, Nepal, Social dialogue, South Korea, United States

What is it that accounts for the relatively recent infatuation with the term “social dialogue”? This is the question posed by the contributors Ozaki and Rueda-Catry, and also tackled by all the others from their respective standpoints as trade union leaders in confederations active at the national, regional and world levels and as specialists with an interest in labour relations issues.

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Nonstandard Employment Relations and Implications for Decent Work Deficits in Nigeria

By | Case-study, Social dialogue

Abstract

Nonstandard employment relations have become very common in most work Organisations in Nigeria. However, the implications of this form of employment relations as regards the International Labour Organisation’s (ILO) decent work agenda are rarely investigated by the industrial and work sociologists. Conceptualizing nonstandard work within the context of casual, contract and outsourced work, the paper contends that this form of employment relations has been exacerbated by the growing incidence of youth unemployment in Nigeria. Using neoliberalism as a theoretical framework, the paper further contended that most work organisations in Nigeria are using this mode of employment to reduce labour cost so as to increase profit in line with the rule of free market economy at the expense of the improvised workers in violation of extant labour law. The paper argues that with this mode of employment relations, there are serious infractions and deficits of decent work in Nigeria.

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Tripartite Bargaining and its Impact on Stabilisation Policy in Central and Eastern Europe

By | Case-study, Social dialogue

Abstract

In this paper we examine the impact of self-imposed governmental constraints (by tripartite arrangements) and the timing of reforms (window of opportunity) on the successful implementation of large-scale reforms (fiscal stabilisation policy) in seven Central and Eastern European Countries. By analysing different sources and conducting interviews with experts and members of the tripartite councils, we consider the impact of tripartite structures on the government decision-making process in Bulgaria, Estonia, the Czech and Slovak Republics, Hungary, Poland and Slovenia. Our findings indicate that the early and continuously stabilising countries secured their policy-making by factors other than tripartite bargaining. In those countries that took a second, later approach to fiscal stabilisation, with a more confrontational style and stronger trade unions, tripartite bargaining proved to be a successful instrument.

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Labor Unrest and the Quality of Production: Evidence from the Construction Equipment Resale Market

By | Case-study, Social dialogue, United States

Abstract

This paper examines the construction equipment resale market to assess whether equipment produced by the world’s largest manufacturer of construction machinery, Caterpillar, experienced lower product quality in facilities that underwent contract disputes during the 1990’s. Analysis of auction data reveals that resale market participants significantly discounted machines produced in these dispute-affected facilities. Additionally, pieces of equipment produced in facilities undergoing unrest were resold more often, received worse appraisal reports, and had lower list prices. Taken together, the evidence supports the hypothesis that workmanship at dispute-affected facilities declined, and that the resulting impact on the economic quality of the equipment produced was significant. The dispute was associated with at least $400 million in lost service flows due to inferior quality equipment alone.

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Working conditions in the Bangladeshi garment sector: Social dialogue and compliance

By | Bangladesh, Case-study, Social dialogue

Abstract

The Bangladeshi garment sector is a leading garment manufacturing industry in the world that has been growing constantly during the last decades. Today the garment sector represent the 80% of the national export and counts USD 19 billions revenues; these numbers describe the sector as the most important manufacturing industry in Bangladesh. The numbers are also outstanding when it comes to number of workers employed, about five millions, and number of factories about five thousands of different sizes. The cheap labour cost attracted many international brands that chose the Bangladeshi factories to produce their products for the European and US markets that take up to the 60% and 20% of the total export. Despite the impressive numbers presented, the level of working conditions cannot be described with the same positive attitude. In fact to an increasing level of profit and continuous expansion, the new wealth has not been equally distributed and workers are employed in factories that too often can be categorised as sweatshops. The working conditions do not allow a decent level of living for garment workers that are exploited and forced to meet exhausting production quota for very little level of wage and very low social security. The situation is even more worsened by the very low power that unions have and their limited activities that cannot ensure a proper protection of workers’ rights. In this thesis project we used the literature to understand the current status quo of the working conditions in the garment sector and to identify the major factors that influence, impact and contribute in making the labour standards low. We used the interviewing methodology to gather facts and opinions of the current system and to organize the information and draw the status of the system. Afterwards we analysed the findings using cultural and economic indicators and the design of recommendation that could contribute in improving the working conditions’ level. Through the literature review and the interviews we defined the working conditions as: wage, job security, safety, discrimination, harassment and freedom of association; through the analysis we could acknowledge that workers are clearly exploited and the conditions are far to comply with the International Labour Standards defined by the international organizations. In the specific we analysed how two factors, compliance and social dialogue impact on the working conditions; the result shows the very low law enforcement level and little practice of a dialogue among government, business associations and workers, where the latter has almost no power; we can conclude that they significantly contribute to keep the working conditions low. Finally we provided recommendations to improve the working conditions and distribute the benefits among workers, employers and government, guaranteeing the sectorial long-term expansion and the significant benefits for global buyers.

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How Industrial Relations Affects Plant Performance: The Case of Commercial Aircraft Manufacturing

By | Case-study, Social dialogue, United States

This analysis examines how changes in major industrial relations policies affected productivity over the years 1974–91 at one of the most important manufacturing plants in the United States. The authors find that productivity fell greatly, both in percentage terms and in absolute dollars, during strikes and a slowdown and during the terms of office of tough union leaders. In contrast with much of the firm performance literature, they find only small initial productivity effects of a movement from adversarial labor-management relations, which is the norm in this industry, to total quality management (TQM) and back again. How and why TQM is adopted, the authors suggest, may be as important as whether it is adopted. Finally, major industrial relations events like strikes, a slowdown, and the TQM program did not have long-term productivity effects; the firm returned to pre-event levels of productivity within one to four months.

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Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages

By | Case-study, Germany, Social dialogue

Abstract

This paper investigates the interaction between establishment‐level codetermination and industry‐level collective bargaining in Germany. Based on a bargaining model, we derive our main hypothesis: In establishments covered by collective bargaining agreements, works councils are more likely to be engaged in productivity‐enhancing activities and less engaged in rent‐seeking activities than their counterparts in uncovered establishments. Our empirical analysis confirms this hypothesis. The presence of works councils exerts a positive impact on productivity within the covered industrial relations regime but not within the uncovered regime. The presence of works councils has a positive effect on wages within the uncovered regime but not to the same degree within the covered regime.

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Recent Unrest in the RMG Sector of Bangladesh: Is this an Outcome of Poor Labour Practices?

By | Bangladesh, Case-study, Social dialogue

Abstract

The RMG sector of Bangladesh has experienced disputes and violent protest by the workers in recent times. This study explores the reasons for recent unrest in the garment sector. Since managers are mainly responsible for applying human resource practices, this paper has given particular attention to their views on recent attitude changes of workers. Results show that mutual understanding among workers and managers is absent in the RMG sector. This study also states that high-work load, poor behaviour of line managers, low skills and low wage rates are the notable reasons for high job turnover and social unrest. Poor relationship between workers and supervisors is the main source of conflict. This study finds that there is growing demand for work life balance among the workers of RMG sector.
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