visser kaminska session 1 temp

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					Globalization and managing
change in the world of work
                         Jelle Visser
                Monika Ewa Kaminska

                     AIAS Amsterdam
                       Table of contents
1.   Triggers of change in labour markets in XXI
     century
2.   Definition of globalization
3.   Firms response: industrial restructuring
4.   Employment effects of industrial restructuring
5.   EU response: management and anticipation of
     change
6.   Social dialogue: theory; negotiator’s dilemma
7.   Union responses
               Triggers of change
       in European labour markets
• Tertiarisation (shift from manufacturing to
  services)
• Increasing participation of women
• Demographic trends (ageing population)
• Technological change (shorter life cycle of
  products)

• GLOBALIZATION
     Definition of globalization
• ‘The integration of economic activities
  across borders through markets’
          (Wolf 2004)

• ‘A process (or set of processes) that
  embodies a transformation in the spatial
  organization of social relations and
  transactions, generating transcontinental or
  inter-regional flows and networks of
  activity, interaction and power’
          (Held et al. 1999)
                       Firms response:
                industrial restructuring
• More intensive competition on worldwide scale;
  higher awareness costs and productivity ->
  industrial restructuring

• Industrial Restructuring – ‘the adaptation of an
  economic unit to its environment = adjustment or
  conversion of production and services to cope with
  non-transitory, (mostly) qualitative changes in
  capital goods and labour markets.’
            (Sengenberger 1990)
                Employment effects of
industrial restructuring (2002-2007)
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        EU response: management
        and anticipation of change
• market building, enhancement of
  competitiveness of the European economy
  (e.g. Lisbon Strategy)
• extending financial help to regions, sectors,
  businesses and individuals (e.g. Structural
  Funds, Globalization Adjustment Fund)
• fostering social dimension through social
  regulation (minimum standards) and social
  dialogue at different levels
      Theory of social dialogue
• Social dialogue = process by which actors
  – Inform each other of their intentions and
    capacities
  – Elaborate information provided to them (“joint
    observation of unpleasant facts”)
  – Explain the assumptions and expectation
    underlying their decisions
• Social dialogue = NOT bargaining, but
  provides setting for more efficient
  bargaining
           Negotiator’s dilemma (1)
1.    Negotiator must solve two problems at the same time:
     A. Find a solution that increases the benefits (welfare,
        utility), or diminishes the losses, for all involved
     B. Distribute the costs and benefits for all involved

2.    A. requires a different attitude/mentality/tactical behaviour
      than B. (A. is cooperative; B. is competitive)

3.    There is a tendency that the competitive attitude and
      behaviour needed for B. displaces the cooperative attitude
      needed for A.
            Negotiator’s dilemma (2)
Actors that behave cooperatively tend to be ‘exploited’ and for
     fear of being a ‘sucker’ actors will therefore always behave
     as if the game were purely distributive

5.    This tendency will be stronger under conditions of ‘single
      shot’ and/or ‘single-issue’ negotiations, and under
      conditions of low trust

6.    Solutions
     1.   Separate the two processes (dialogue and bargaining)
     2.   Make consultation and dialogue into a routine (not only in
          crisis situations) and extend it to more issues
     3.   Invest in joint information gathering and analysis
              Union Responses (1)
• Reactive – reducing the negative social
  consequences of restructuring (negotiation,
  distributive bargaining)

• Anticipatory – analyze and predict
  developments on firm, sectoral, national
  and European level (multi-level)
                      Union Respones (2)
• Anticipatory:

   – fostering an on-going social dialogue
   – promoting rules on commitment: maintaining production
     at locations; return of subsidies if production transferred;
     contribution to social costs of offshoring
   – defining training and innovation policies; foster
     development of activities and employment creation in
     highly-skilled sectors
   – promoting cross-border agreements on basic empl.
     conditions and labour protection (to avoid social dumping
     and ‘regime shopping’)
                          Conditions

• Early information disclosure/sharing
• Consultation
• Cooperative attitude of social partners

 (discussion of examples)

				
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posted:9/15/2012
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