Corporate Restructuring and Employment Flexibility Sandra Lundin Paul Wymenga.
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Transcript of Corporate Restructuring and Employment Flexibility Sandra Lundin Paul Wymenga.
![Page 1: Corporate Restructuring and Employment Flexibility Sandra Lundin Paul Wymenga.](https://reader036.fdocuments.in/reader036/viewer/2022082506/56649e8e5503460f94b92564/html5/thumbnails/1.jpg)
Corporate Restructuring and Employment Flexibility
Sandra Lundin
Paul Wymenga
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Table of Content
Corporate Dimensions of Restructuring Dual Economy Theory Flexible Labour and Geographical
Strategies
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Corporate Dimensions of Restructuring Labour Production and Technology Organisation Product Markets
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Dual Economy Theory
Averitt and Galbrait Fordist Sector Competitive Sector
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Dual Economy Theory (2)
Doeringer and Piore Primary Segment
Independent Segment Dependent Segment
Secondary Segment
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Dual Economy Theory (3)
Atkinson Core Workers Peripheral Workers
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Flexible Labour and Geographical Strategies Four Strategies Example: GM and Volvo
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Peripheral workforces in new locations: the importance of women peripheral workforce: passive, low-waged,
hard working and stable suburbanization non-metropolitan industrialization offshore leaps to poor countries
search for female workers (some cases child labour)
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the importance of women cont.
Female labour: lower wages less likely to be unionized easier to control
Women play a bigger role in jobs that are considered numerically and financially flexible
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Married women and the suburbian option WWII-> women could perform the same
tasks as men 1950s-1960s: labour shortages.
Factory-skilled and low-cost women were available Society’s values:
men= breadwinners women’s labour= secondary/temporary
Support firms to pay less to women
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Married women and the suburbian option cont. Why the Suburbs?
land costs land availability taxes find supply of married and single women (jobs
within walking distances)
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Married women and the suburbian option cont. Spatial entrapment hypothesis
Women are entrapped within peripheral labour markets and spatially entrapped within distinct female labour markets
Critics:
-more complex view?
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Single women and the Export Processing Zone option Developing countries:
greater availability of female workers lower wages and non-wage benefits Export Processing Zone (EPZ): provides low-cost
labour and tariff-free imports for export activities workers generally female, young and single the rights of the workers in EPZs are limited -> unprotected
by unions extremly low wages: (1991) Mexico: US$ 1.10-1.25 per hour Small non-wage benefits
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Tapping child labour
largest amount in India, official count: 15,5 million (in reality: 50-100 million)
Pakistan: 20 million wages: as low as $8 /month Hand-stitched soccer balls Begin work at the age of 6
usually employed by local organizations MNCs tap into child labour through
subcontracting linkages
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Nike’s overseas leaps
virtually all of Nike’s production has been subcontracted in pursuit of numerical and financially flexible labour
Developed Partners Volume Producers Developing sources
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In Situ change and flexible labour
more difficult process than at new locations, especially in unionized factories where fordist labour relations are entrenched in tradition and law
Examples: NUMMI MacMillan Bloedl’s sawmill in Chemainus
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Maintaining peripheral workforces in situ economic-wide increases in part-time and
temporary workers in the US and UK flexibility is a cause of declining union
power
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Skill formation of doubly peripheral workforces Entreprise-specific skills:
acquired by workers over time increases in worker skills= increases in
worker productivityworker experienceability to deal with problemson-the-job-training (OJT)