Table Of ContentTHE DYNAMICS OFWAGE RELATIONS IN THE NEW EUROPE
The Dynamics of Wage Relations
in the New Europe
by
Linda Clarke
Westminster Business School, U.K.
Peter de Gij sel
University ofM aastricht,
The Netherlands and
Utrecht University, The Netherlands
and
Jom Janssen
Fachhochschule Dortmund, Germany
and Westminster Business School, U.K.
SPRINGER-SCIENCE+BUSINESS MEDIA, B.V.
A c.I.P. Catalogue record for this book is available from the Library of Congress.
ISBN 978-1-4613-7002-4 ISBN 978-1-4615-4445-6 (eBook)
DOI 10.1007/978-1-4615-4445-6
Printed on acid-free paper
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Originally published by Kluwer Academic Publishers in 2000
Softcover reprint of the hardcover 1s t edition 2000
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Contents
Abbreviations ................................................................ viii
List of tables .................................................................. ix
List of figures .................................................................. x
Preface ....................................................................... xi
Genera/Introduction
Wage relations and European wage policy
Linda Clarke, Peter de Gijsel, Jorn Janssen ........................................ 1
Part 1
The regulation of wages in the European states
Introduction
The transformation of wage labour and the state
Jorn Janssen .............................................................. 12
The national and EU-state in the regulation of wages
and the composition of the wage package
Gyorgy Szell .............................................................. 19
Discussion ................................................................ 30
The historical process of wage formation
Legal origins of wage labour: the evolution of the contract
of employment from industrialisation to the welfare state
Simon Deakin .............................................................. 32
Changing wage orders: France 1900-1995
Jean Saglio ......................................................... . .44
Discussion ................................................ . . ... 57
The composition of the wage package
The anatomy of labour cost
Jan Edling ........................................................... . . .60
Social security contributions, earmarked taxes and wage earner savings
in the financing of social protection:
a comparison of the British and French systems
Bernard Friot ............................................................... 72
A financial reform of the welfare system: reforms are overdue
Claus Schnabel ............................................................ 86
Discussion ................................................................ 89
The transformation of wage relations in Central and Eastern Europe
Negotiated wage growth in Hungary
lajos Hethy ................................................................ 91
The wage crunch in Central and Eastern Europe: past effects and future risks
Daniel Vaughan-Whitehead ............................................... 103
Discussion ................................................................ 123
General debate ................................................................ 127
Conclusions ................................................................... 130
Part 2
Wage forms, the reproduction of labour
and living standards
Introduction
Disparities in wage relations and social reproduction
linda Clarke ............................................................... 134
Social reproduction and the labour process
Occupational and wage hierarchies: an historic turning point
Patrick Rozenblatt ......................................................... 139
Wages systems and social systems
Marcel Bolle de Bal ........................................................ 152
Discussion ................................................................ 165
The reproduction of labour
Wages and living standards in the Central and East European countries
IIdik6 Ekes ................................................................ 169
Migrant labour and equal pay for equal work in Europe
Edith Gross ................................................................ 181
Discussion ................................................................ 192
The reproduction of the social structure
Wages as a reflection of socially embedded production and reproduction processes
Antonelia Picchio .......................................................... 195
The restructuring of the family wage system, wage relations and gender
Irene Bruegel .............................................................. 214
Recent changes in wage forms and the reproduction of the social structure:
the underlying issues
Pierre Concialdi ........................................................... 228
Discussion ................................................................ 239
General debate and conclusions ............................................... 244
Part 3
Competition, the market and changes
in work organisation
Introduction
Welfare effects of market deregulation and changing work organisation -
some unresolved issues
Peter de Gijsel ............................................................ 248
Deregulation and labour market performance
The impact of labour market regulation on economic performance: a review
Bernard Enjolras .......................................................... 254
Systemic competition between high and low 'social cost' labour:
a case study of the UK construction industry
Mark Harvey ................................................... , .......... 267
Increasing competition and changing work organisation
Cooperation, the organisation of work and competitiveness
Frank Wilkinson ........................................................... 279
Alternative work systems and the competitive process
Suzanne J. Konzelmann and Adrienne M. Birecree .......................... 294
Post-Fordism and managerial strategies in France
Thomas Coutrot .......................................................... 307
Pay structure and competitiveness
Peter Jansen .............................................................. 322
Summary of the discussion
Peter de Gijsel ................................................................. 334
Index ......................................................................... 338
Contributors .................................................................. 350
viii
Abbreviations
AECO Agency for Economic Co-ordination and Development
AGIRC Association generale des institutions de retraite des cadres
(General Association of Pension Institutions for Managerial Employees)
CEE Central and Eastern Europe
CEEC Central and East European Countries
CIS Community of Independent States
CNRS Centre nationale de recherche scientifique
COMECON Council for Mutual Economic Aid/Assistance
CSERC Conseil superieur de I'emploi, des revenus et des coats
(National Council on Employment, Income and Costs)
CSO Central Statistical Office
OGV Directorate-General for Employment, Industrial Relations and Social Affairs
EC European Community
EMU European Monetary Union
EU European Union
GOP Gross Domestic Product
HUF Hungarian Forint
IGM Industriegewerkschaft Metall (metalworkers trade union)
ILO International Labour Organisation
ILO-CEET International Labour Organisation-Central and East European Team
IMF International Monetary Fund
NCRI National Council forthe Reconciliation of Interests (Hungarian = ET)
OECO Organisation for Economic Cooperation and Development
REPONSE Relations professionnelles et negociations d'entreprise
SERPS State Earnings Related Pension
UN United Nations
UNICEF United Nations International Children's Emergency Fund
VAT Value Added Tax
Ix
List of tables
The global distribution of income .......................................................... 20
Employers' social security contributions: percent of labour cost ............................... 62
The growth of earnings and minimum wages in Hungary 1990-96 ........................... 94
Gross earnings in business organisations in Hungary 1990-96 ................................ 95
Gross earnings in public services in Hungary 1990-96 ....................................... 98
Statutory minimum wage in Hungary 1988-97 ............................................. 100
Minimum wages, earnings and minimum living cost in Hungary 1989-96 .................... 101
Growth of poverty in Central and Eastern Europe 1989-94 ................................... 114
Unemployment in the CEE region ......................................................... 170
Unemployment rate by sex and education .................................................. 171
Inflation in the CEE region ................................................................ 172
Income structure in Hungary by source .................................................... 174
Percent income deemed necessary for living at a given level
declared by different population qUints in Hungary ......................................... 175
Structure of household expenditure ....................................................... 176
Invisible income in Hungary in 1986 and 1992 .............................................. 178
Operating units and employees in the West German construction main trades 1992-96 ....... 182
Employment in the West German construction industry 1990-96 ............................ 183
Structure of employees in the main trades (West Germany 1960-96) .................... '" .. 184
Project-bound contractees in the German construction industry by country of origin .......... 186
Employment in the East European construction industries 1989-93 .......................... 187
Gross hourly wages in the building industry in the EU ...................................... 189
Distribution of economic time between SNA and non-SNA activities:
all persons (fourteen countries) ........................................................... 206
Distribution of economic time between SNA and non-SNA activities
of population by gender (fourteen countries) .............................................. 207
Total paid and unpaid women's and work in industrialised countries ........................ 208
Female (aged 15-64) activity and employment rates in Italy and the EU 1975-94 .............. 209
Hours spent on household tasks in Australia 1992 .......................................... 210
Hours worked in market industries in Australia 1992 ........................................ 211
Comparative levels of earnings inequalities between employees: interdecile range 1983
and 1994 in Great Britain by sex and area .................................................. 221
Trends in gender pay differentials in Great Britain 1981-95:
weekly pay relative to the male median according to position in own sex distribution ........ 223
Incidence of low-wage employment in European countries in the early 1990S ................. 231
Employment in the EU .................................................................... 233
Two pricing mechanisms for two employment relations ..................................... 274
Regimes and types of uncertainty ......................................................... 310
Product market variables ..................................................................3 12
x
Organisational variables .................................................................. 313
Supplementary variables .................................................................. 314
Social regulation (according to managers) .................................................. 316
Social regulation (according to employee representatives) ................................... 317
Evolution of employment in dynamic establishments ...................................... 318
Growth of labour productivity and capital intensity ........................................ 318
Evolution of labour productivity and capital intensity between 1989-92 ...................... 319
Changing patterns of team concepts ...................................................... 323
List of figures
The global distribution of income .......................................................... 20
Components of labour cost ................................................................ 60
Components of labour cost 1995 (%) ........................................................ 61
Employers' and employees' social contributions 1994 ........................................ 64
Components of labour cost 1995 (in Purchasing Power Parities) ............................... 66
Labour cost, tax and scope for private consumption in 1994 (%) .............................. 67
Labour cost, tax and scope for private consumption in 1994 (in Purchasing Power Parities) ..... 68
Labour cost ranged after Purchasing Power Parities .......................................... 69
Convergence of labour cost ................................................................ 70
Changes in real wages 1989-96 ........................................................... 107
Two approaches to the production of hierarchies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..1 44
Modes of assessing labour value ...........................................................1 45
Total women's and men's paid and unpaid work in fourteen industrialised countries ......... 208
Preface
T
he debate on 'The Dynamics of Wage Relations in the New Europe' is an
offspring of a research project on 'Disparities in Wage Relations and the
Reproduction of Skills in Europe'. At a meeting of the advisory committee for
this research held at the University of Westminster in London on 14th November
1994, it was decided (by Linda Clarke,]orn]anssen, Henryk Lewandowski, Philippe
Mehaut, Patrick Rozenblatt and Frank Wilkinson) to set up a larger international
committee to develop a programme and seek funding from the European
Commission for a symposium of experts on wage relations. This committee of ten
scientific experts was formed and invited to a number of meetings throughout 1995
and 1996 by DG V of the European Commission in order to develop a programme
and proposal for a symposium to take place in 1997. Eventually the proposal,
formally submitted by University of Westminster/London, University ofMaastrichti
Netherlands, Fachhochschule Dortmund/Germany and University of Osnabriick/
Germany was accepted by the European Commission in May 1996. Additional
funding was then obtained from the Hans-Bockler-Stiftung and the Dutch
Organisation for Scientific Research allowing, in particular, participants from
Central and East European countries to be invited.
The subject of wage relations, as a central issue of European social policy, was
intended to be tackled in an open debate between scientists and policy makers, the
latter as individual experts rather than representatives. Despite the need to cover an
enormous variety of disciplines, countries and policy sectors, including the social
partners, the overall number of participants was not to exceed sixty in order to create
the climate of directness and familiarity necessary for openness, trust and
spontaneity in the exchange of views and expertise.
The papers, prepared as a starting point for the debate, and the recorded
discussions in the symposium provided the raw material for this book. The themes
of the workshops determined its structure. The three editors, each of whom was a co
ordinator of a workshop, have tried in the Introductions, Discussions and
Conclusions framing the papers to record faithfully the crucial issues and points of
agreement and disagreement.
This book publication of the debate required a massive amount of work,
transcribing all the discussions, translating from French, revising and harmonising
English papers, and, above all, summarising and evaluating the discussions. The
European Commission covered a significant part of the expenses incurred. In order
to comply with the limitations of a single affordable book, manuscripts were
abridged and three papers submitted are not included, two for not fitting the context
and one withdrawn for publication elsewhere. Nevertheless, there was little space left
to record the discussions and the priorities set may reflect the editors'
preoccupations. They apologise in advance if this is identified as distorting the
contents of the symposium.
As usual, all this work involving negotiations with twenty-two authors and the
translators, discussions between the editors, typing and proof reading took much
more time than anticipated. The editors appreciate the patience of the publisher, in
particular those in charge of this book.
