Globalizing Employment Relations
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1 Globalizing Employment Relations
2 This page intentionally left blank
3 Globalizing Employment Relations Multinational Firms and Central and Eastern Europe Transitions Edited by Sylvie Contrepois Violaine Delteil Patrick Dieuaide and Steve Jefferys
4 Selection and editorial content Sylvie Contrepois, Violaine Delteil, Patrick Dieuaide and Steve Jefferys 2011 Individual chapters the contributors 2011 Softcover reprint of the hardcover 1st edition All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6-10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act First published 2011 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number , of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin s Press LLC, 175 Fifth Avenue, New York, NY Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave and Macmillan are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN ISBN (ebook) DOI / This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress
5 Contents List of Tables and Figures Author Details vii ix Globalizing Employment Relations and Crisis: Multinational Companies and Central and Eastern European Transitions and Transfers 1 Sylvie Contrepois, Violaine Delteil, Patrick Dieuaide and Steve Jefferys Part I Foreign Direct Investment, Multinationals and Employment Relations Transfers 1 US Multinationals and Collective Representation in European Subsidiaries: Institutional Resistance and Accommodation 9 Anthony Ferner 2 The Social Transfers of Multinationals in Central Europe: British, US, Austrian and German Experiences Reviewed 29 Guglielmo Meardi, Sonja Strohmer and Franz Traxler 3 Manufacturing and Services FDI Trajectories: Colonial Perceptions and Union Opportunities in Central and Eastern Europe 45 Steve Jefferys Part II Employment Relations in Different Sectors in Central and Eastern Europe 4 Surviving the Global Financial Crisis: Automobiles and Finance in Central and Eastern Europe 65 Sylvie Contrepois, Violaine Delteil, Patrick Dieuaide and Steve Jefferys 5 MNCs, Human Resource Management and Social Dialogue in the Central and Eastern European Food Industry 83 Patrick Dieuaide 6 Exporting the German Work Model to Central and Eastern Europe 99 Martin Krzywdzinski v
6 vi Contents Part III Multinationals and Host Countries in the Crisis 7 Employment Relations and the Opening Up to MNCs in Hungary 119 Jenő Koltay 8 How French Are French MNCs in Hungary? A Comparison of Two Service Sector Firms 134 Linda Szabó and Viola Zentai 9 MNCs and the Transformation of Bulgarian Employment Relations 150 Zhelyu Vladimirov 10 Polish Employment Relations Under the Challenge of French Foreign Direct Investment 165 Anna Kwiatkiewicz 11 Industrial Relations and Social Dialogue in the Baltic States Crisis, Conflict and Compromise 179 Charles Woolfson, Epp Kallaste and Janis Berzins Part IV European Social Integration, MNCs and Change 12 Internationalizing Firms and Employee Representation: French Multinationals in Central and Eastern Europe 201 Sylvie Contrepois 13 Central and Eastern European Social Models and the Challenge of Change 217 Violaine Delteil 14 Is Central and Eastern Europe a Laboratory for New Forms of Employment Relations? 233 Guy Groux Index 245
7 List of Tables and Figures Tables 2.1 MNCs in the Czech Republic: intensity of transfers in the area of HR, IR and other areas and HR coordination FDI and Greenfield sites in Central and Eastern Europe, , ranked by annual average FDI CEE10 Trade Unionisms, (ranked by trade union density) Employment shares (%) of Goods and Service Sectors, Brownfield and Greenfield investments and employee representation ranked in eight French service sector MNCs, Percentage change in real Gross Domestic Product in six CEE economies, Unemployment rate as a per cent of total labour force in ten CEE economies, Shareholder- and family-owned French food MNCs compared The employment relations models used in CEE subsidiaries of French MNCs Contractual and working arrangements in Poland and selected EU members (2008) Eight French multinationals in three countries Selected industrial relations features of MNC subsidiaries in Bulgaria, Hungary and Poland influenced by a compartmental approach Selected industrial relations features of MNC subsidiaries in Bulgaria, Hungary and Poland influenced by an integration approach 210 Figures 3.1 Economic development and foreign direct investment CEE gross domestic product in purchasing power standards compared to the EU27 average, Unemployment in the CEE10 and the EU15, Union density rates in the CEE and the EU, vii
8 viii List of Tables and Figures 4.1 Numbers of foreign-owned banks in Poland, Bulgaria and Hungary, Changes in Hungarian financial asset ownership (per cent) by state-owned or foreign-owned banks, Changes in Polish financial asset ownership (per cent) by state-owned or foreign-owned banks, Changes in Bulgarian financial asset ownership (per cent) by state-owned or foreign-owned banks, Finance and business employment as a per cent of total employment, in the EU15, EU10 (2004 accession countries) and in Poland, the Czech Republic and Hungary, Central and Eastern European car production, Jobs in the European car industry (000s) Real GDP growth rate, EU, Estonia, Latvia and Lithuania,
9 Author Details Berzins, Janis Lecturer in International Political Economy at Riga Stradins University s Faculty of European Studies in Latvia. Janis s research is on development problems and the role of ideology in economic policy. Contrepois, Sylvie Senior researcher at London Metropolitan University s Working Lives Research Institute and member of the CRESPPA-GTM CNRS (National Centre of Scientific Research) institute in France. Sylvie is the author of Syndicats, la nouvelle donne: Enquête au Coeur d un bassin industriel et ouvrier (2003). Delteil, Violaine Director of the Department of European Studies, University Paris 3 Sorbonne Nouvelle and Assistant Professor in Economics. Author of various articles on European integration and European industrial relations. Dieuaide, Patrick Senior Lecturer, Sorbonne Nouvelle University Paris 3, member of ICEE-Paris 3, and Researcher associated with ENSTA-ParisTech. Author of numerous articles and research papers on the transformations of the work, the strategy of firms and social relationships. Ferner, Anthony Professor of International Human Resource Management at De Montfort University, his main research is on employment practices in multinationals. His books include (co-edited with Phil Almond) American Multinationals in Europe (2006), and (co-edited with Javier Quintanilla and Carlos Sánchez-Runde), Multinationals, Institutions and the Construction of Transnational Practice (2006). Groux, Guy Research Director at CNRS and Sciences Po-Paris. He teaches at Sciences Po-Paris and ESCP-Europe (European School of Management) and is the author of numerous books and articles about trade unions in France and Europe including La Grève (with Jean-Marie Pernot) in Jefferys, Steve Director of London Metropolitan University s Working Lives Research Institute and Professor of European Employment Studies, Steve is the author of Management, Work and Welfare in Western Europe: An Historical and Contemporary Analysis (2000) with Mick Carpenter, and of ix
10 x Author Details Liberté, Egalité and Fraternité at Work: Changing French Employment Relations and Management (2003). Kallaste, Epp Current leader of Estonian Centre for Applied Research CentAR, and Ph.D. Student in Economics at the University of Tartu. She has been involved with industrial relations analysis in Estonia since Koltay, Jenő Research Director at the Institute of Economics in the Hungarian Academcy of Sciences and Professor of Economics at Pannon University, Jeno is the author and editor, with L. Neumann, of Industrial Relations in Hungary (2006) and, with M. Jackson and W. Biesbrouck, of Unemployment and Evolving Labor Markets in Central and Eastern Europe (1995). Krzywdzinski, Martin Researcher in the research group Knowledge, Production Systems, and Work at the Wissenschaftszentrum Berlin (WZB Research Centre), Martin is co-author, with Ulrich Jürgens, of Die neue Ost- West-Arbeitsteilung. Arbeitsmodelle und industrielle Beziehungen in der europäischen Automobilindustrie (2010). Kwiatkiewicz, Anna Associate Professor at Warsaw School of Economics, Human Resources Management Department and Associate Director at BPI Polska, Employment and Social Affairs Department. Anna is the author of articles for Social Dialogue, the social partners quarterly and of Ustawiczne kształcenia zawodowe w krajach Unii Europejskiej (2006). Meardi, Guglielmo Reader of Industrial Relations at Warwick Business School, Guglielmo is author of Where Workers Vote with Their Feet: Social Failures of EU Enlargement (2010). Strohmer, Sonja Senior Consultant at INSET Research & Advisory. Previously, Sonja was employed as a research assistant at the Department of Industrial Sociology at the University of Vienna and authored Czech Employers Associations and the Social Dialogue: The Effects of the Czech EU Accession. Saarbruecken (2008). Szabó, Linda Researcher at the Center for Policy Studies of Central European University (CEU), Budapest, Hungary, and a PhD candidate in Sociology and Social Anthropology. Linda has been editing the Hungarian social scientific journal of Replika since Traxler, Franz Professor and Director of the Department of Industrial Sociology at the University of Vienna until his death in January 2010, Franz Traxler published extensively on economic sociology and European industrial relations.
11 Author Details xi Vladimirov, Zhelyu Associate Professor at the Faculty of Economics and Business at the Sofia University St Kliment Ohridski, Zhelyu is the author of Cultural Legacy against Democracy and Market (Bulgaria since ) and joint editor of Sustainable Development in Transition Economies: Recovering Economic Flows (2003). Woolfson, Charles Before taking up his current position in 2010 as Professor of Labour Studies at Linköping University s REMESO (Institute for Research on Migration, Ethnicity and Society), Charles held a Marie Curie chair, living and working in the Baltic states for the previous decade. Zentai, Viola Director of the Center for Policy Studies at the Central European University (CEU), Budapest, Hungary, Viola teaches cultural anthropology and policy studies at the university and is the co-editor, with Janos Kovacs M., of Capitalism from the Outside? Economic Cultures in Eastern Europe after 1989 (2010).
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