Tag

Industrial relations

Apr 19
0

Strikes, Scabs, and Tread Separations: Labor Strife and the Production of Defective Bridgestone/Firestone Tires

By | Social dialogue, United States

Abstract

This paper provides a case study of the effect of labor relations on product quality. We consider whether a long, contentious strike and the hiring of replacement workers at Bridgestone/Firestone’s Decatur, Illinois, plant in the mid-1990s contributed to the production of defective tires. Using several independent data sources and looking before and after the strike and across plants, we find that labor strife at the Decatur plant closely coincided with lower product quality. Monthly data suggest that defects were particularly high around the time concessions were demanded and when large numbers of replacement workers and returning strikers worked side by side.

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Apr 19
0

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

By | Case-study, Social dialogue, United States

Abstract

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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Apr 18
0

High Performance Work Practices, Industrial Relations and Firm Propensity for Innovation

By | Italy, Social dialogue

Abstract

This paper examines the influence of high performance work practices (HPWPs) and industrial relations (IR) on firm propensity for product and process innovation. The authors distinguish between two styles of workplace governance – democratic and autocratic – based on whether the management is willing to cooperate with workers’ representatives, and two styles of IR – participatory or advocatory – based on the extent of their influence. The estimates carried out indicate that HPWPs always have a significant and positive effect on both product and process innovation, while IR has a positive effect only in respect of product innovation, and provided the style is of participatory type. An interpretation of the IR effects could be that process innovation makes workers feel insecure about their jobs, while product innovation represents the path that can better protect workers’ prospects in an uncertain and unstable competitive environment. In respect of the style of IR, the effect is positive when workers’ representatives adopt a participatory role; the effect is instead cancelled out when employing an advocatory role. Participatory style IR is very likely to contribute to creating a positive attitude towards change, with workers willing to share the adjustment costs (such as learning new competencies), while advocatory style IR generates, in the minds of managers, a perception of the risk that investments in product innovation may turn into sunk costs for the firm through a likely appropriation of quasi-rent by workers (‘hold-up problem’).
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Apr 18
0

Industrial Relations Climate, Attendance Behaviour and the Role of Trade Unions

By | Australia, Case-study, Social dialogue

Abstract

In recent years there has been a growing interest in the impact of co-operative union-management relations on firm performance and organizational outcomes such as employee turnover and absenteeism. This paper seeks to identify the factors that affect the development of a co-operative industrial relations climate and analyses the effects of that climate on organizational and union allegiance and on employee attendance behaviour. The data are drawn from a study of a large automotive manufacturer in Australia. The results indicate that a positive union-management relationship is associated with higher levels of work attendance. Moreover, this outcome is consistent with the presence of strong and effective unionism at the workplace.
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Apr 13
0

Productivity, innovation strategies and industrial relations in SMEs. Empirical evidence for a local production system in northern Italy Article

By | Case-study, Italy, Social dialogue
Abstract
The paper aims to provide an original contribution to evaluating several kinds of relations between four areas of innovation activities – training, technology, organization, ICT (information and communication technologies) – and industrial relations and firm’s economic performance. Quantitative evidence for a SME‐based local production system is provided by exploiting two datasets: the first is derived from a direct survey carried out in 2005 collecting data on innovations, labour flexibility and industrial relations; the second is represented by a panel of official balance sheets data for the period 1998–2004. The analysis is divided in two consequential parts. We first examine the drivers of different innovation strategies and subsequently we exploit innovation indicators as potential drivers of firm’s productivity. The results show that training activities and organizational changes have strong links with many industrial relations indicators, thus emerging as industrial relations driven innovations. On the contrary, ICT and technological innovation seem to be more influenced by firms’ past performances than by industrial relations. The analysis on labour productivity drivers shows that training activities are the most relevant factors; then, ranked consequently, technological innovation, organisational innovations and, finally, ICT also appear to impact on productivity levels. It is worth noting that the role of ICT emerges more robustly when endogeneity is specifically addressed. Finally, the role of firm size seems here to be overshadowed by other drivers.

 

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Apr 13
0

Industrial Relations, Techno-Organizational Innovation and Firm Economic Performance

By | Italy, Social dialogue

Abstract

In the last decades the changes in firm’s organizational structures has attracted great interest because of their widespread diffusion. At the same time technological innovation, especially in the domain of ICT, has also experienced a rapid diffusion. Several works have tried to disentangle the linkage between innovation and its determinants as well as to uncover the relation between techno-organizational changes and firm economic performances. I likewise conduct an empirical investigation using original information collected through a questionnaire administered to union representatives of manufacturing firms with at least 20 employees located in a province of Northern Italy, Reggio Emilia. The phases of the analysis are two: at first, the aim is to uncover the relationship between a participative industrial relations regime, contractual flexibility and the propensity to innovate; secondly, I investigate on the existence of linkages between several innovation activities, namely technology, organization, ICT and training, on the one hand, and firm economic performance, on the other. The results can be summed up as follows. First, the participative aspects of the industrial relations system and contractual flexibility show a nexus mainly with two kinds of innovative spheres: organization and training. Second, firm performance is linked to all four innovation spheres. Since the regressions are also conducted in principal components, evidence of complementarities between innovation spheres is provided.

 

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