Enslaved and Free Workers and the Growth of the Working Class in Brazil

Since the early successful colonial enterprises in Brazil’s territory, men and women forcibly transferred from Africa were used as enslaved workers not only on plantations and other agricultural settings, but also in protoindustrial contexts, such as in the sugar mills and the mining trade and metallurgy. Enslaved people were also a fundamental part of the labor force in the urban artisanry, manufacturing, and the early industrial ventures in the 18th century and after Independence in 1822. In the second half of the 19th century, the first drive of industrialization, in places like Rio de Janeiro, Bahia, and São Paulo, was driven by British investments led by slave-owning entrepreneurs and powered by the intensive use of enslaved labor. Foreign workers brought to the country, Brazilian free manual laborers and other poor immigrants, freed, and enslaved people often worked side by side in shipyards, gunpowder factories, mining endeavors, railways constructions, and many other activities. In Brazil, especially in urban contexts, many enslaved men and women would rent themselves out, or they would be leased out by their masters, to perform a variety of urban activities, including working in the country’s many artisan shops and industries. In doing so, not only were they able to get financial compensation for their work by becoming ganhadores (enslaved wage earners), but, in that capacity, they also experienced situations usually associated with “free” laborers, such as wage negotiation, bargaining, and even strikes. Some of the enslaved ganhadores were able to buy their own freedom and carried their experiences into their lives as free workers. Therefore, both free and unfree laborers of African descent were present in a variety of trades and enterprises, and the multiplicity of their experiences shaped the dynamics of labor relations, identity building, political and labor cultures, and individual and collective action and organization in the long history of the making of Brazilian working classes. The heterogeneity that defined the Brazilian laboring classes, composed of people of African descent as well as poor White Portuguese settlers and other immigrants, united and divided by race, gender, nationality, legal status, histories, and cultural backgrounds cannot be stressed enough. It is crucial to understand how the institution of slavery impacted the social and economic relations of all workers, free and unfree, in Brazil even after slavery was abolished in 1888: its legacy of oppression, but also diversity, is expressed in the conflicts and collaborations that marked workers’ collective experience and impacted the transformations that the working classes underwent in post-emancipation Brazil.

Dynamic wage bargaining and labour market fluctuations: the role of productivity shocks

In this paper, we explore the way in which different bargaining settings affect labour market fluctuations by means of an analytical apparatus that has never been used for this purpose. Specifically, modelling wage negotiations as a problem of stochastic optimal control, we analyze how productivity disturbances shape the dynamics of output, employment, and wages by focusing on the way in which firms’ technology and workers’ preferences interact with the adjustment rules of employment underlying the bargaining process. With a quadratic production function and risk averse workers, we show that wage negotiation outcomes whose employment adjustments go in the direction of the labour demand of the firms match the cyclical behaviour of the involved variables but fail to replicate the observed wage rigidity. By contrast, we show that wage bargaining outcomes whose employment adjustments target the contract curve of two negotiating parties are also able to deliver a strong degree of wage stickiness.

Party Ideology and Vocational Education Spending: Empirical Evidence from Germany

We provide—to the best of our knowledge—the first empirical study on the political economy of public spending on vocational education. Vocational schools raise human capital among non-academics and give the latter a stronger bargaining position in wage negotiation—thereby supporting the clientele of leftwing parties. At the same time, they provide publicly funded inputs that raise firm productivity—an aim particularly important for conservative parties. We analyze expenditures on vocational schools of 301 West-German counties between 2002 and 2013 using two-way fixed effects and mixed models. We find the counties’ expenditures on vocational schools to decrease in the political power of Social Democrats and increase in the political power of Christian conservatives in the county council. Expenditures are higher in election years. We find no support for the conjecture building on Jensen (2011, Compar. Polit. Stud. 44, 412–435) according to which expenditures on vocational education are higher in regions suffering from deindustrialization. (JEL codes: H75, D72).

Does collective bargaining influence the way the size of the firm impacts wage dispersion? Spanish evidence

PurposeThis paper analyses the relationship between wage dispersion and firm size within a “two-tier” system of collective bargaining (firm bargaining and multi-employer bargaining levels). Collective bargaining has a decisive role in setting wages in Spain, and its regulation highly limits the possibility for smaller firms to negotiate their own collective agreement.Design/methodology/approachBased on the Spanish Structure of Earnings Survey 2006, 2010 and 2014, the authors use variance decomposition in order to deeply analyse the effect of bargaining level on wage dispersion and compare the value of each decile of the distribution of wages for the purposes of identifying the quantitative differences in wage compression.FindingsIn general, the outcomes positively linked firm size and firm bargaining to wage dispersion. However, if firm size is taken into account, the effect of firm bargaining is limited among small firm workers because this type of firm is not usually covered by firm bargaining. On the other hand, the time analysis allows observing a wage compression that follows different patterns depending on firm size, compressing the higher part of the distribution in case of small firms and the lower part in case of large firms. This should be explained by the fact that wage negotiation is dependent on firm size.Social implicationsFirm size has determined firm adjustment strategies to face the recent economic crisis and allows to evaluate the impact that changes in collective bargaining can have on wage distributionOriginality/valueThere is no research that has tried to analyse the relationship between wage dispersion and firm size in a context where collective bargaining is essential to understand the wage structure. Normally, firm size plays a decisive role in wage policy given that the capacity of a company to negotiate an agreement is closely linked to its size.

Do you get what you ask? The gender gap in desired and realised wages

Purpose The purpose of this paper is to study gender differences in wage bargaining by comparing the unexplained wage gap in desired, realised and reservation wages. Design/methodology/approach The notion of desired wages is applied, which shows workers’ first bet to potential employers during the job-search process. A large job-search data set is drawn from the main Estonian electronic job-search site CV Keskus. Findings It is found that the unexplained gender wage gap is around 20 per cent in desired wages and in realised wages, which supports the view that the gender income gap in expectations compares well with the realised income gap. The unexplained gender wage gap is larger in desired wages than in reservation wages for unemployed individuals, and this suggests that women ask for wages that are closer to their reservation wages men do. Occupational and sectoral mobility is unable to explain a significant additional part of the gender wage gap. Originality/value The paper adds to the scarce empirical evidence on the role of the non-experimental wage negotiation process in the gender wage gap. In addition, the authors seek to explain one of the largest unexplained gender wage gaps in Europe, the one in Estonia, by introducing a novel set of variables for occupational and sectoral mobility from a lengthy retrospective panel.

South African banks' profits will wane

Subject Outlook for South Africa's banking sector. Significance Insurance firm Discovery announced on September 10 that it will launch a full-service bank to compete with Standard Bank, Nedbank, Barclays Africa Group and FirstRand -- the 'big four' that dominate the sector. Despite a weak economy, South African banks have seen strong profit growth, according to a new PwC report. Impacts If the new mines minister fails to break the wage negotiation impasse, probable strikes could push the economy into recession. Banks' labour costs, already 58% of overall costs, will rise due to additional technical skills needed to implement Basel III requirements. Poor performance by the country's higher education system means qualified graduates will demand premium salaries.

The influence of opportunity and type of wage negotiation on the pay satisfaction and trust in management

The studies about negotiation have been conducted in the various research fields. However, despite of its importance of employees’ concern, the number of studies for wage negotiation was few. Specifically, there have been no empirical studies directly examined the influence of participation of wage negotiation on the employees’ pay satisfaction and trust in Korea. The purpose of this study was to examine the influence of the opportunity and type of the wage negotiation on the pay satisfaction and trust in management. Data were collected from 315 workers employed in a variety of organizations in Korea and hierarchical multiple regression and MANCOVA were conducted to test hypothesis. The results of regression analysis indicated that the providing opportunity of wage negotiation have positive influence on the level of pay satisfaction and trust in management. Also, union negotiation rather than individual negotiation have positive influence on the level of pay satisfaction and trust in management. In addition, the results of MANCOVA was similar with that of regression analysis, however, there was no significant difference for trust in management and satisfaction of pay policy and management between union negotiation and individual negotiation.

Contraction spells economic doldrums for South Africa

Significance The World Bank in its August 17 Economic Update warned about the downside risks to South Africa posed by anticipated US monetary policy tightening and cooling Chinese growth, especially given domestic structural weaknesses, including labour unrest, electricity shortages and growing fiscal imbalances. Impacts Future tax increases will probably not include a mining windfall tax, due to government concerns about the sector's future. Water insecurity due to shortages and degraded infrastructure will rise in prominence among the risks concerning companies. Strikes in the gold sector are probable, unless state mediation breaks the current wage negotiation deadlock.

Humour in Power-Differentiated Intergroup Wage Negotiation

This research examined the role of humour in power-differentiated wage bargaining conversations. We collected transcripts of wage bargaining between the local labour union and management negotiators of a multinational beverage company operating in the Philippines. Through conversation analysis, we determined how both parties utilised humor to challenge or maintain power relations even as both labour and management worked towards a wage bargaining agreement. Findings show that humour was used to maintain intergroup harmony, subvert authority and control the negotiation. Our findings may be useful for labour organisations and multinational corporations that operate in Southeast Asian countries with historically tumultuous labour relations such as the Philippines. Studies have shown how humour can play a significant role in various social interactions, such as business meetings (Rogerson-Revell, 2007), conversations between friends (Hay, 2000) and co-workers (Holmes, 2000), problem solving (Dunbar, Banas, Rodriguez, Liu, & Abra, 2012), conflict negotiations (Maemura & Horita, 2012) and price haggling (O’Quin & Aronoff, 1981). We note, however, that humour analysis rarely considers asymmetric features of social interactions occurring within the context of negotiation.