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

Institut Arbeit und Technik Kulturwissenschaftliches Institut Institut Arbeit und Technik Wissenschaftszentrum Nordrhein-Westfalen Wuppertal Institut für Klima, Umwelt, Energie Dynamics of national employment models (DYNAMO) Coordinated by: Institute Work and Technology / IAT Gelsenkirchen, Germany Prof. Dr. Gerhard Bosch / Dr. Steffen Lehndorff Institut Arbeit und Technik Munscheidstr. 14, D Gelsenkirchen

DYNAMO teamCountry Institut Arbeit und Technik GelsenkirchenGermany University of ManchesterUnited Kingdom Växjö UniversitetSweden Trinity College DublinIreland Université des Sciences et Technologies de LilleFrance Conservatoire Nationale des Arts et Métiers Paris France Universitat Autònoma de BarcelonaSpain Fondazione Giacomo Brodolini RomeItaly Panteion University AthensGreece Forschungs- und Beratungsstelle Arbeitswelt Vienna Austria Hungarian Academy of Sciences BudapestHungary 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

Typologies of national models

Pressures on societal systems and employment models Multinational corporations The state SOCIETAL SYSTEM / EMPLOYMENT MODEL Ageing New technologies Changes in skill formation Employers CitizensUnions Changes in household formation and gender roles European employment strategy, directives Regulatory and stability policies of EU International competition International governance inter- national trade International ideologies 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

DYNAMO Workplan

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 ManufacturingBanking 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

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.

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