Employee Relations: An International Journal

Zsolt Bedo; Mehmet Demirbag; Geoffrey Wood

2011 Employee Relations: An International Journal

doi: 10.1108/01425451111140604

Purpose – This article seeks to explore some of the principal issues and debates on the relationship between institutions, firm level governance and employment relations outcomes in Eastern and Central Europe. Design/methodology/approach – This paper particularly focuses on the countries that are encompassed by the papers covering the special issue. Findings – Introducing new and meaningful forms of labour regulation becomes very much more difficult in times of economic crisis. This means that the regulation of employment relations is likely to be diminished, or, as is probably more likely in the case of the bulk of countries in the region, a situation of “muddling on” is likely to persist. Firm level employment relations practices are likely to be persistently diverse, both within and between countries. Key areas of division are in terms of country clusters, which range from proto‐social democratic through to “wild capitalist”, distinguished by variations in terms of firm size, and between the formal and informal economies. Practical implications – This study highlights the extent to which institutional variations and change may mould the choices made at firm level. Originality/value – There is a tendency to conflate the region into a loose transitional category. This paper highlights the divergent paths followed by the countries in the region, and the extent to which this has been associated by diversity in employment relations both within and between countries.

Martin Upchurch; Darko Marinković

2011 Employee Relations: An International Journal

doi: 10.1108/01425451111140613

Purpose – This paper aims to examine the phenomenom of wild capitalism under post Communist transformation. Many commentators on post Communist transformation focus their attention on dysfunctional corporate governance and the deleterious consequences of liberalisation on business ethics. Poor business ethics and bad corporate governance may be a consequence of labour exploitation for comparative advantage, and the abandonment of party authority. This allowed rapacious rent‐seeking by a minority well placed to benefit from the newly de‐regulated regime. A by‐product is a burgeoning informal economy encouraged by insider dealing of privatised state assets. State regulation, where it exists, is often ignored. Employment relations are fragmented, with state‐owned enterprises retaining some form of collective regulation, while newly privatised enterprises seek to marginalise union activity. Design/methodology/approach – The paper analyses why Serbia has diverged from the Slovenian case in the former Yugoslavia and determines norms of behaviour as a product of both structural and agency dynamics. Evaluates the Privatisation Agency's programme and reviews documentary evidence on business transparency. Records evidence of labour disputes from trade unions, press reports, semi‐structured interviews with trade union leaders and activists. The researchers also held a Round Table of trade unionists, journalists and employers in Belgrade in September 2008, funded by the British Academy. Findings – The paper concludes that wild capitalism is an integral, rather than deviant mode of behaviour in Serbia. Originality/value – The findings have relevance for other post Communist states, which may be subject to a greater or lesser degree to political clientelism and fragmentation of employment relations.

Matthew M.C. Allen; Maria L. Aldred

2011 Employee Relations: An International Journal

doi: 10.1108/01425451111140622

Purpose – This paper aims to assess the extent to which convergence in institutional regimes is likely to occur, by examining all ten new EU member states in Central and Eastern Europe in terms of their development of comparative advantages in high‐tech export markets either by drawing on foreign investors in the form of multinational companies or by making use of domestic institutional resources. Design/methodology/approach – The article uses fuzzy sets and qualitative comparative analysis to examine both necessary and sufficient causes of success in high‐tech export markets. By doing so, it can address the important issue of institutional complementarity. Findings – While it finds that countries that have stronger records in such markets share common features, there are also important differences between them – not least in the areas of employee relations. This, together with other evidence presented in the paper, suggests that convergence around a specific institutional model is unlikely to happen. Originality/value – Analysing, unlike many previous studies, all ten new EU member states in Central and Eastern Europe enables conclusions to be drawn that apply to the whole region. The novel method used in this article means that the extent of any complementarity between different institutions can be addressed, and ensures that issues relating to convergence/divergence are explored. The article, therefore, contributes to a number of important debates on the convergence among types of capitalism, the dependency of the new EU member states on foreign investors, and the institutional foundations for success in high‐tech export markets.

Markku Sippola

2011 Employee Relations: An International Journal

doi: 10.1108/01425451111140631

Purpose – This research seeks to ask to what extent model transfer in employee relations (in terms of employee representation, participation and workplace bargaining) occurs between Nordic and Baltic countries from the principal firm to the subsidiary. It also looks into explanations as to why model transfer occurs – or does not occur – from the perspective of the Nordic industrialist's labour management strategy. Design/methodology/approach – This is a case study comprising three clothing manufacturers and three engineering shops in different Baltic States: Estonia (population 1.4 million), Latvia (2.3 million) and Lithuania (3.4 million). These production sites have headquarters in three Nordic countries: Denmark, Norway and Sweden. Semi‐structured (thematic) interviews are carried out among managers, shop stewards and employees of the subsidiaries. Findings – There is little model transfer between the Nordic principal firm and the Baltic subsidiary, whereas the Nordic employer prefers local forms of employee relations. Modest model transfer derives from the desire for controlling the labour process, where the Nordic investor seeks to utilise differences between the regimes. Social implications – The Nordic industrialists' search for the distinction between different regimes and the Baltic drive at liberal market economy (LME) together may prove fatal for labour conditions. Such production policy will not improve the position of the Baltic worker. Originality/value – The findings question the very idea of model transfer: where any labour management strategy existed, there was either an unambiguous assertion of indigenous solutions or adoption of “best practices” not peculiar to the Nordic labour relations regime.

Jane Hardy; Wleslawa Kozek

2011 Employee Relations: An International Journal

doi: 10.1108/01425451111142684

Purpose – The article aims to consider the relationship between foreign investors and trade unions in forging new labour relations and workplace institutions in Polish firms. The research focuses on the role of foreign investment and the agency of workers' organisations in the transformation of workplace relations Design/methodology/approach – An institutionalist approach is adopted which focuses on structural, institutional and political influences on workplace relations. The research is based on interviews with senior managers and trade unions in 15 foreign investment firms in Poland. Findings – There is a continued presence of trade unions in brownfield foreign investments and the establishment of new trade union branches in greenfield foreign investments. Labour relations in the majority of the case study companies were characterised by managers and workers as conflictual. Efforts by foreign investors to introduce their home or global practices were contested by trade unions. A continuation of previous legacies was evident in the importance placed by trade unions on communication, negotiation and establishing agreements with management. Research limitations/implications – The sample was comprised of transnational manufacturing companies and the conclusion cannot automatically be applied to other sectors where foreign investors have a strong presence. Practical implications – Insights into workplace relations in Poland are provided which will be of interest to foreign investors and European trade unions. Originality/value – Trade unions have been neglected in analysing new corporate structures in Poland and this article addresses their role in the workplace and their interrelationship with foreign investors.

Rostislav Kapelyushnikov; Andrei Kuznetsov; Olga Kuznetsova

2011 Employee Relations: An International Journal

doi: 10.1108/01425451111142693

Purpose – The purpose of this paper is to investigate labour market practices in a transition economy in relation to broader institutional configurations. Design/methodology/approach – Through a review of relevant literature and the analysis of statistical data the paper reveals some specific factors influencing labour market practices in a transition economy. Findings – The paper establishes a link between inefficient enforcement and the emergence of compensating institutional arrangements on the one side and the unusually broad implementation of flexible working time and flexible pay on the other as a crucial factor that made the stabilization of employment in Russia possible. Originality/value – The paper reveals how a formal regulatory system, which on the face of it is similar to what is a norm in the majority of European countries, may coexist with a distinctive labour market model and explores issues of relevance to academics, researching in the field, policy‐makers, human resource managers, employers and employees.

Colin C. Williams; Sara Nadin; Peter Rodgers

2011 Employee Relations: An International Journal

doi: 10.1108/01425451111142701

Purpose – Since the turn of the millennium, a small corpus of post‐structuralist thought has emerged that challenges the dominant belief that capitalism is now hegemonic and that all economic formations are contrasting varieties of capitalism. This paper seeks to contribute to the development of this emergent perspective. The aim is to challenge the notion that the Ukrainian economy can be represented as some variety of capitalism by highlighting the shallow permeation of capitalist practices into daily life and the continuing prevalence of multifarious non‐capitalist economic practices. Design/methodology/approach – To achieve this, evidence is here reported from a 2005‐6 survey that analysed the extent to which 600 households in Ukraine used capitalist and non‐capitalist economic practices in their coping tactics. Findings – This reveals not only the limited use of capitalist practices in the everyday coping tactics of households in Ukraine but also how an array of non‐capitalist economic practices remain heavily relied on by a majority of households to secure their livelihood. The outcome is a call to tentatively reject the “varieties of capitalism” system of meaning because of what it excludes, prohibits and denies, and to open up the future of post‐Soviet Ukraine to other possible trajectories than simply some variety of capitalism. Research limitations/implications – This snapshot survey of the everyday coping practices of households displays only that capitalist practices are not hegemonic and that multifarious economic relations persist and are widespread. It does not show whether or not there is movement towards greater reliance on capitalist practices. Originality/value – It begins through the presentation of evidence on Ukraine to tentatively challenge the application of a “varieties of capitalism” perspective towards Central and Eastern European economies.

Jozsef Poor; Zsuzsa Karoliny; Ruth Alas; Elizabeta Kirilova Vatchkova

2011 Employee Relations: An International Journal

doi: 10.1108/01425451111142710

Purpose – The primary aim of the paper is to draw attention to the similarities in the historical background and in the transitional period of the post‐socialist CEE (Central and East European) countries, which make this region a distinctive cluster in Europe. Design/methodology/approach – In this paper, the authors attempt to supplement existing research by outlining the modernisation of a range of HR functions in the countries of Central and Eastern Europe, and would like to explain how this special issue arose, to provide a historical perspective for the work undertaken by the Cranet research team from Bulgaria, Estonia and Hungary and to outline the context and significance of each of the attempts at modernisation in the HRM field. Findings – This analysis of developments, based on the Cranet surveys, aims to describe and explain the similarities and differences found among the three specific countries (Bulgaria, Estonia and Hungary), the somewhat broader sample comprising the CEE region and the full sample of those participating in the survey. All of these signs increase the need for a contextual Comparative HRM model – which supports not only the snapshot analysis, but also a longitudinal one, incorporating both the path‐dependent and the path‐creation considerations of the changes taking place. Originality/value – The need to understand HRM from a European – as opposed to a merely Western – perspective has become a dominant theme as the HR peculiarities of the new capitalism emerge. However, during the transition period, everyone needed – somehow – to meet the great challenge of turning the omelette back into eggs!

Dilek Demirbas; Andrey Yukhanaev

2011 Employee Relations: An International Journal

doi: 10.1108/01425451111142729

Purpose – The main aim of this paper is to examine the role of the board of directors in Russia with specific attention to their independence, employee relations and ability of successful adaptation of the international standards. Design/methodology/approach – The authors used a survey questionnaire to provide an empirical example from a transition economy to the corporate governance literature by exploring the attitudes of the 55 board directors from 30 listed companies on the Russian Trading System (RTS) Stock Exchange. Findings – The respondents recognise the board of directors as an important instrument of efficient and good corporate governance practice. More surprisingly, they are also in favour of employee representatives on the board of directors and agree that board size and composition should be enhanced by employee representatives on the board. Research limitation/implications – Even though 200 questionnaires were distributed and the response rate was 28 per cent, the authors know that they cannot generalise results for all directors of 1,414 listed companies on the Russian Trading System Stock Exchange from this level of response. In addition, questions might have some elements of subjectivity. Practical implications – Policy makers in Russia should continue reforms in Russian corporate governance to improve transparency and accountability to adopt international standards and to attract foreign capital. Originality/value – This study is one of the most comprehensive studies to explain the role of directors of listed companies in corporate governance throughout a survey questionnaire in Russia. The authors believe that the study contributes to the literature in two ways: theoretically by examining the attitudes of Russian listed company directors in the literature and empirically by conducting a survey among listed companies' directors to evaluate the attitudes of boards of directors, and employee relations in Russia.