Cost competition or innovation competition? Lessons from the case of the BMW plant location in Leipzig, Germany

2006 ◽  
Vol 12 (1) ◽  
pp. 11-29 ◽  
Author(s):  
Ludger Pries

Globalisation and increasing inter- and intra-company competition raise the question whether industrial production has any future in the European Union. This article argues that company decisions on where to locate production are based not only on ‘hard factors' (such as labour costs), but also on ‘soft factors' (such as labour flexibility and working time schemes). Whereas there is no doubt about the importance of ‘hard factors’, and indeed the argument of cost competition and the need for cost reduction is repeated in almost every management declaration, the significance of ‘soft factors' is often underestimated and less discussed. Taking the case study of BMW's decision to locate a completely new car production plant in Leipzig, Germany, this article argues that western European countries could have an advantage in ‘soft factors' like work relations on the shop floor, the nature of employment contracts and arrangements for employee participation. In the case of BMW Leipzig, work and working time flexibility, as well as a culture of ‘cooperative conflict partnership’, played a decisive role in counterbalancing the disadvantages in direct labour costs. Focusing on innovation competition and on ‘soft factors' of competition could be a sustainable alternative to a business model based exclusively on cost competition.

2017 ◽  
Vol 2 (328) ◽  
Author(s):  
Eugeniusz Kwiatkowski ◽  
Przemysław Włodarczyk

The article is focused on the problem of elasticity of employment in the economies of the European Union new member states in 2000–2014. Special attention is given to the role of types of employment contracts and their influence on the elasticity of employment. Theoretical arguments and empirical observations enable us to formulate hypothesis about a U‑shaped relationship between the share of fixed‑term employment in total employment and elasticity of employment in a given economy. We should also expect increases of price and working time elasticity in response to increases in the share of fixed‑term employment. Results of panel model estimations performed using the data for 13 new European Union member states in 2000–2014 confirm the hypothesis about an impact of share of fixed‑term employment in total employment on the elasticity of employment. In particular, an increase in the number of fixed‑term contracts results in the fall of elasticity of employment with respect to GDP and increase in the elasticity of employment with respect to real wages and working time. There is however no confirmation of the hypothesis concerning a U‑shaped relationship between elasticity of employment with respect to GDP and the share of fixed‑term emplyment.


1999 ◽  
Vol 5 (4) ◽  
pp. 481-501 ◽  
Author(s):  
Danièle Meulders ◽  
Robert Plasman

In most of the European Union countries, decisions related to the third pillar guidelines fall to those involved in collective bargaining. This is certainly the case for everything covered under Guideline 16 and, in particular, questions related to the reduction, reorganisation or modernisation of working time, with the exception of part-time work, which is very often the subject of statutory or legislative measures. Thus, we find numerous references to part-time work in the NAPs, whether to measures intended to facilitate the use of this form of work by employers or employees, or to the need to improve the working conditions of part-timers. On the other hand, all of the NAPs - with a few exceptions - are very circumspect, or not very explicit, about aspects linked to the duration and organisation of working time. It is difficult, moreover, to judge the progress made within the Member States with respect to partnership at all levels, as encouraged in the guidelines, which is meant to be one of the essential factors contributing to a modernisation of work organisation and an improvement in firms' adaptability. Although social pacts have been concluded in certain countries (Italy, Ireland, Luxembourg, Finland), their real scope cannot be evaluated by studying the National Action Plans. Moreover, their possible effects can only be judged over time. Investment in human capital is without doubt the aspect which comes up least in the NAPs, or can in any case be described as the dimension where innovative input is most lacking. Finally, the gender dimension puts in too rare an appearance in the third pillar, even though working time, employment contracts and training are three areas where the gender dimension is essential and causes significant stratification. It emerges from a close examination of the NAPs that the third pillar is interpreted in too restrictive a manner, underestimating the modernisation of work organisation aspect, and lacking an overall vision of the true potential of a strategy to modernise the organisation of work and working time.


Author(s):  
Anderson Gordon ◽  
Peter Brosnan ◽  
Pat Walsh

This paper will examine two aspects of the labour market flexibility, namely the ability of the workplaces to adjust their workforce and to reduce their relative labour costs. The survey covers the period ending in May 1991 during which firms faced considerable economic uncertainty and financial pressure. As with the above studies it confirms that considerable flexibility existed in the New Zealand labour market prior to the Employment Contracts Act.


2021 ◽  
pp. 35-40
Author(s):  
Yaroslava Svichkarova

Problem setting. On-call work is today a poorly-investigated by science of labor law form of non-standard employment. Since 2019, there are several draft laws developed in Ukraine that deal with on-call work. These drafts describe it such as employment contract with non-fixing working hour. The latest draft No. 5161 of 25.02.2021 "On Amendments to Certain Legislative Acts of Ukraine on the regulation of some non-standard forms of employment" has been submitted to Parliament. This bill was developed according to the Directive (EU) 2019/1152 of the European Parliament and of the Council of 20 June 2019 on transparent and predictable working conditions in the European Union. However, we believe some provisions of this bill on the establishment of working time need further adaptation. Analysis of resent researches and publications. The issue of legal regulation of non-standard employment has been analysed by V.Venedidikov, N. Vyshnevska, I. Gorgoriev, I. Kiselev, A. Lushnikov, D. Morozov, O. Mozna, N. Nikitina, O. Process, O. Rimkevich, V. Soyfer, M. Sorokishin, O. Yaroshenko. On-call work was the subject of doctor’s and candidate’s thesis of V. Gnidenko, O. Korkin, O.Pilipko, M. Shabanova. At the same time a number of legal problems were arised after the project No. 5161 had been adopted. For instance, peculiarities of the establishment of working time, the legal regulation of new legal categories in an employment contract with non-fixed working time need further adaptation. Аrticle’s main body. In the employment contract with non-fixing working hour the maximum working hours of the employee is determined, fixed in the contract, however the minimum working time is not defined due to the fact that the employer does not have a duty to provide employee work. The minimum duration of working time defined in the draft law depends only on the amount of the wage or compensation for staying in a state of waiting. In order to strengthen the coherence of terminology and better reconcile the typology and character of this non-standard employment form with the provisions of Directive (EU) 2019/1152, the draft law should enter and (or) determine the terms, such as a schedule of work, basic hours and days, mode of operation. Conclusions and prospects for the development. In the contract with non-fixed working hours, the installation and distribution of working time has specific features: maximum duration of the employee's working time is determined, fixed in the contract, and the minimum working time is not determined at all, since the employer does not have a duty in the employer to provide employee work. The minimum duration of working time defined in the draft law depends only on the amount of the wage or compensation for staying in a state of waiting. In such an employment contract basic days and hours should be establishes, that is, a time interval when an employee must perform its labor duties in case of a demand. The employee's calling on work, in turn, must be carried out by the employer in compliance with the conditions established in the contract itself (for example, the method and minimum term of the employee's notice of the start of work). The mode of operation is predictive to the employee, the one can predict "theoretically" that he can be called on in certain days and hours. The schedule of work with each call on work is really unpredictable. This schedule should be agreed between the employee and the employer before the work is started, although we believe such agree does not matter because the schedule is made within the basic days and hours that are already known to the employee.


2018 ◽  
Vol 8 (3) ◽  
pp. 126
Author(s):  
George Panagiotopoulos ◽  
Katerina Pertesi ◽  
Zoe Karanikola

In a rapidly changing world with its diverse spectrum of social characteristics that are currently defining our present period, its continual influx of migrating populations, the growing development of technology as well as the continual increasing rate of unemployment makes it more now than ever, necessary to develop not only international but also national policies that aim to support the viability and advancement of its citizens. International organizations constitute the corner stone of public policy for the confrontation of these challenges. More specifically, UNESCO and the institutions of the European Union (EU) should be called on to play a decisive role in the implementation of Agenda 2030 using the experience and the extended diplomatic networks that they possess. Consequently, important official texts of international policies concerning the prosperity of its citizens through adult education have been recorded. This research, through the qualitative analysis of the UNESCO (2016) text, is meant to highlight and study the dimensions of adult learning and how they can be made applicable. Through the analysis of the text, there are emerging thematic networks, which are related to policy making, a feature of which is the investment in lifelong learning, to disseminate good practices and to evaluate them. A cornerstone of policies, actions and decisions is also the social right of adult citizens.


2019 ◽  
Vol 10 (4) ◽  
pp. 370-385
Author(s):  
Vincenzo Ferrante

The European Union competences on health and safety of workplace constituted the legal basis for the 93/104 Directive to be adopted (and for the consolidated text of 2003/88 Directive). The Court of Justice has firmly maintained this approach refusing to take into account the history of international regulation on working time, which links together work and salary in perspective to give the workers the right to fair and equal treatment as regards their working conditions (as has been recently proclaimed also by the European Pillar of Social Rights). Building on these general premises, this article analyses the more recent European pieces of legislation and cases related to on-call time and proposes a new model for the definition of working time in the light of CJEU case law.


2017 ◽  
Vol 41 (3) ◽  
pp. 302-332 ◽  
Author(s):  
Theodor Tudoroiu

This article introduces the concept of a “valve” state as an instrument in the study of transit migration. A “valve” state is defined as a transit state that, due to its geographical position, to a specific regional political and geopolitical configuration and to key changes in its migration control policies, can play a decisive role in significantly shaping regional transit migratory flows. The case study of the 2015 Balkan migratory wave is used to show that this phenomenon was triggered by policy changes in two “valve” states, Greece and Macedonia, that challenged the externalisation and securitisation policies of the European Union. Developments in the first part of 2016 are also taken into consideration in order to show the role of “valve” states in putting an end to the migratory wave. Critically, this was due to the creation of a new “valve” state, Turkey, as part of Brussels’ regime of influence.


Info ◽  
2014 ◽  
Vol 16 (1) ◽  
pp. 45-61 ◽  
Author(s):  
Juraj Stančík

Purpose – The main goal of this paper is to create a methodology for estimating public research and development (R&D) expenditures on Information and Communication Technologies (ICT) in the European Union (EU). The study further applies this methodology on business expenditures on R&D (BERD) data across all sectors and estimate ICT BERD within each of them. Then the study assesses the evolution of these expenditures in the context of the Digital Agenda for Europe (DAE) and its specific target to double them by 2020. Design/methodology/approach – The study assumes that the share of public ICT R&D expenditures in total public R&D expenditures is similar to the share of ICT R&D labour costs. The study bases its estimation on government budget appropriations or outlays on R&D (GBAORD). Findings – EU public ICT R&D expenditures grew steadily over the period 2004-2010 and in 2010 reached 5.9 billion. The study also estimates that the total EU ICT BERD in 2010 amounted to 15.8 billion. Regarding the DAE target about ICT R&D expenditures, the study shows that, in both public and private, the EU drops behind. Research limitations/implications – The study estimates that substantial ICT BERD can be found also in non-ICT sectors. Practical implications – The methodology allows for monitoring one of the DAE targets. Originality/value – The methodology currently represents the only way for measuring public ICT R&D expenditures in the EU.


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