Work models in the Central Eastern European car industry: towards the high road?

ABSTRACT The integration of the Central Eastern European (CEE) countries into the European Union (EU) has provoked debates about the danger of a ‘race to the bottom’ in Europe caused by the low wages and weak labour regulation and labour standards in CEE. This article examines the evolution of work...

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Bibliographic Details
Published in:Industrial relations journal 2009-11, Vol.40 (6), p.471-490
Main Authors: Jürgens, Ulrich, Krzywdzinski, Martin
Format: Article
Language:English
Subjects:
Automobile industry
Central Eastern Europe
Economic crisis
Employment
European Union
Labor relations
Labour law
Labour shortage
Regulation
Skilled workers
Studies
Wage levels
Working conditions
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Summary:ABSTRACT The integration of the Central Eastern European (CEE) countries into the European Union (EU) has provoked debates about the danger of a ‘race to the bottom’ in Europe caused by the low wages and weak labour regulation and labour standards in CEE. This article examines the evolution of work models in the CEE automotive industry. It argues that the work models in CEE did not take the low‐road trajectory. Rather, a limited high‐road model emerged in the 1990s, which combined skilled labour and secure employment for the core workforce with a broad margin of precarious employment, low wages and limited employee voice. In the context of labour shortages after the accession to the EU of the CEEs, companies faced recruitment problems and labour conflicts, which threatened to destabilise this model. The first reactions of firms pointed towards the strengthening of the high‐road orientation, but the development remains unstable, not least of all because of the economic crisis beginning in 2009.
ISSN:0019-8692
1468-2338
DOI:10.1111/j.1468-2338.2009.00541.x