Dynamics of national employment models (DYNAMO)

Aims, structure and planned outcomes of the project

Jörg Flecker (FORBA)

WORKS – Policy Pillar: Lisbon-Meeting, 28/29 November 2005

Inst

itut A

rbei

t u

nd

Tec

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ik

Kulturwissenschaftliches

Institut

Institut Arbeit und Technik

WissenschaftszentrumNordrhein-Westfalen

Wuppertal Institut fürKlima, Umwelt, Energie

Dynamics of national employment models (DYNAMO)

Coordinated by:

Institute Work and Technology / IATGelsenkirchen, Germany

Prof. Dr. Gerhard Bosch / Dr. Steffen Lehndorff

Institut Arbeit und Technik

Munscheidstr. 14, D - 45886 Gelsenkirchen

email: lehndorff@iatge.de

DYNAMO team Country

Institut Arbeit und Technik Gelsenkirchen Germany

University of Manchester United Kingdom

Växjö Universitet Sweden

Trinity College Dublin Ireland

Université des Sciences et Technologies de Lille France

Conservatoire Nationale des Arts et Métiers Paris

France

Universitat Autònoma de Barcelona Spain

Fondazione Giacomo Brodolini Rome Italy

Panteion University Athens Greece

Forschungs- und Beratungsstelle Arbeitswelt Vienna

Austria

Hungarian Academy of Sciences Budapest Hungary

WORKS-Countries missing: Belgium, Bulgaria, Netherlands, Norway, Portugal

National employment models in Europe ...

• Employment protection / industrial relations

• Production regime /work organisation

• Welfare regime

• Gender regime

• Training and education system

• Corporate governance

Corporate governance / varieties of capitalism

State led / negotiated or consensual/ market (Coates 2000); Liberal versus trust based (Coates); Shareholder value/ Stakeholder capitalism (Hutton 1995);Business coordinated / uncoordinated or liberal (Hall and Soskice 2001); Social systems of production (Dore 1986, Lazonick 1991, Best 1990, Hollingsworth and Boyer 1997, Hollingsworth et al. 1994); National business systems (Lane 1989 and 1995, Whitley 1999)

Production regime/work organisation

Lean production/ diversified quality production/ flexible specialisation/ socio-technical systems (Applebaum and Batt 1994) (country level) Fordist/ post-Fordist (Supiot 2001) Production or training oriented job structures- high/low discretion (Marsden 1999)

Training and education system

Internal labour market/ occupational labour market (Marsden 1986); State led/ consensus led/ market led (Expertenkommission 2002)

Welfare regime Social democratic/ liberal/ corporatist (Esping-Andersen 1990; Bosch/Wagner 2002) Plus Family based (Daly 1996)

Employment protection / industrial relations

Corporatist/ centralised/ decentralised; Industrial relations (Visser 2001); Level of employment protection (OECD 1999)

Gender regime Strong/ modified/ weak male breadwinner models (Lewis 1992); Gender order (Connell 1987); Gender arrangements (Pfau-Effinger 1998)

National systems of innovation

Competitive, corporate-led, state-led, corporatist (Amable, Barré and Boyer 1997) Nelson 1993; Edquist 1997

Typologies of national models

Pressures on societal systems and employment models

Multinationalcorporations

The state

SOCIETAL SYSTEM / EMPLOYMENT MODEL

Ageing

New

technologiesChanges in

skill formation

Employers

CitizensUnions

Changes in household

formation and

gender roles

European employment

strategy, directives Regulatory and

stability policies of EU

InternationalcompetitionInternational governanceinter-nationaltrade

Internationalideologies

International consumption

patterns

DYNAMO - Key questions:

How are these models responding to these challenges, as compared to each other and to North America and Japan ?

Do they develop new specific solutions or will there be a convergence either towards a European Social or a European Market Model?

How far are these developments making it more or less difficult to obtain the goals of the Lisbon strategy?

Ways of adaptation and response

1) National specific responses – continuation of path dependent development

2) Learning and adapation – drawing on elements of other institutional models (within Europe or beyond)

3) Acceptance of a universal market model – deregulation of markets, adaptation at the level of organisations

Main elements of the DYNAMO project:

Analysis of national models in 10 EU countries: main directions of change within the national models

Specific studies of how the different national models are responding to changes at the level of particular sectors

Conclusions with respect to the effectiveness of the European employment and Lisbon strategies.

DYNAMO: Sector studies

Challenges at sector levelGlobalisation- trade, MNCs, financeRegulation- product market, labour market New technologies/new organisational forms

SectorActors respond to

and shape challenges

National Model

Employment outcome-quality and quantity

of jobs for competitiveness and social cohesion

Challenges at national/societal level

Ageing SocietyNew gender contract

Skill formation

Challenges at sector levelGlobalisation- trade, MNCs, financeRegulation- product market, labour market New technologies/new organisational forms

SectorActors respond to

and shape challenges

National Model

Employment outcome-quality and quantity

of jobs for competitiveness and social cohesion

Challenges at national/societal level

Ageing SocietyNew gender contract

Skill formation

DYNAMO Workplan

Phase 1WP 1 :

Development of Joint Theoretical Framework

WP 2 : Analysis of Major Changes in National Models

Draft Country Reports

WP 9 :Convergence or Divergence of

National Models

WP 10 : Effectiveness of European

Employment Strategy

ITCons-truc-tion

ElderlyCare

Insur-ances

PublicT / U

Air-ports

MNC

WP 3 - 7 : Empirical Research Sector Studies

WP 8 : Completion of National Models Country Reports

6 months

6 months

12 months

12 months

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WIT

H O

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EA

S P

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A, J

ap

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Phase 2

Phase 3

Phase 4

Main changes:

• Corporate ownership and governance

• „Social Partnership“: state-led coordination

• Employment policy and labour market flexibility

Example: The end of the Austrian model?

Ownership and governance

State-owned enterprises: Share of total sector employment

Manufacturing Banking

1978: 33% 47%

1989: 20% 24%

2005: - -

Ownership and governance

Privatisation of the nationalised companies:

from employment policy to shareholder value

Internationalisation:

from passive to active direct investment

Liberalisation and privatisation of public services:

job loss and worsening of conditions

Traditional features of the employment system

Full employment policy

Strong labour market regulation

„Competitive“ conditions, wage moderation

Highly segmented labour market

Unemployment rates 1980 - 2004

Arbeitslosenquoten 1980 - 2004

0

1

2

3

4

5

6

7

8

80 82 84 86 88 90 92 94 96 98 oo o2 o4

Arbeitslosenquote

Männer

Frauen

„Social Partnership“

Coordination between government, employers and unions

Double proportionalism: capital – labour and socialdemocratic – conservative

State support for interest organisations

Challenges:

stronger private capital

non-incorporates parties and movements

2000: conservative/right wing populist government

Development of strikes

Source: AK 2005.

92.707 19.439

779.182

58.3412.947

1.305.466

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

800.000

900.000

1.000.000

1.100.000

1.200.000

1.300.000

1.400.000

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Number of participants Number of days lost due to strikes

Full employment policy: gone

„Social partnership“ suspended

Social security: cuts, restrictions

Labour law: no deregulation

Stable collective bargaining system, cooperation between

employers and trade unions

Wage disparity, growing differences between sectors

Trade union influence (working time regulation, active labour

market policy)

What is left of the „Austrian model“?

Successful catching-up of backward economy

Closely linked German economy

EU-membership and single market

Transformation of CEE economies and EU-enlargement

Position in international capitalism

DYNAMO for WORKS Perspective: Institutional change, dynamics of institutions

Heterogeneity and change of national models

Sector studies: challenges and responses

Automobile: Commodity chains and concession bargaining

IT: Global IT-service providers

Public transport: Liberalisation, Outsourcing

WORKS: Workplace level and individual/household level; analysing „institutions at work“ need for (teoretical)

„dynamisation“ of institutions/models, need for research findings at sector and national level