The content of this paper is part of an in-progress project on the effects of globalization on industrial relations and work conditions. The research is based on a previous cross-national comparison of the European automotive industry , followed by an analysis of the Fiat Auto case (in Italy and Argentina). In the actual context of globalization, carmakers face a highly competitive market. The pace of technological innovation, the increase in international competition, the saturation of markets and the shortening of product lifespan are but some of the factors requiring a new organization of production. In order to face these radical changes, carmakers are implementing new strategies, not only by embracing the concept of globalization, but also by promoting changes in labour management practices, work organization and industrial relations. As far as this paper is concerned, we wish to analyze the following aspects: the impact of globalisation on industrial relation systems and on the weakening of the traditional role of the unions and their representative power; the strategic role of the increasing emphasis placed by companies on bargaining decentralization (at the local plant level); the effect of the development of production networks, based on standardized platforms and modules, that can be used to expand ‘coerced competition’ among plants on a global scale; the increasing production and working time flexibilization, which generally implies a reduction in labour standards and work conditions; the relationship between the intensification of work and the loss of workers’ control (exacerbated by the introduction of team working organization and new technologies). As far as Fiat’s general strategy is concerned, industrial relations are generally not conducted in a spirit of dialogue and constructive discussion, because any organizational change is always based on managerial prerogatives. More often, Fiat avoids discussion and refuses to participate in meetings with employees and trade unions. Information and consultation rights are not respected by the management. The experiments in union participation at Fiat can be considered unsatisfactory. Fiat has always preferred a subordinate union not interfering with the management’s strategies and decisions. Furthermore, our research demonstrates that Fiat’s restructuring process is not unproblematic. That is to say, new forms and devices of control did not necessarily bring to a total managerial control. Claims that the new management strategy can ensure both productivity and a new form of workplace democracy in the post-fordist factory do not match the harsh experience of workers. Despite new labour-saving technologies and lean production organisation (World Class Manufacturing - WCM), car industry would need, more than in the past, the involvement and active participation of unions and workers. On the contrary, we point out that the actual form of production organization generates new tensions and increases employee’s discontent, likely to ignite industrial conflict. As a matter of fact, this patriarchal attitude, embedded in the Group’s heritage and history, hampers the company’s ability to implement its new model and reinforces workforce hostility towards the management.
Fiat Auto: Industrial Relations lost in Globalization
CAPUTO, Paolo;CAMPENNI A.;DELLA CORTE E.
2011-01-01
Abstract
The content of this paper is part of an in-progress project on the effects of globalization on industrial relations and work conditions. The research is based on a previous cross-national comparison of the European automotive industry , followed by an analysis of the Fiat Auto case (in Italy and Argentina). In the actual context of globalization, carmakers face a highly competitive market. The pace of technological innovation, the increase in international competition, the saturation of markets and the shortening of product lifespan are but some of the factors requiring a new organization of production. In order to face these radical changes, carmakers are implementing new strategies, not only by embracing the concept of globalization, but also by promoting changes in labour management practices, work organization and industrial relations. As far as this paper is concerned, we wish to analyze the following aspects: the impact of globalisation on industrial relation systems and on the weakening of the traditional role of the unions and their representative power; the strategic role of the increasing emphasis placed by companies on bargaining decentralization (at the local plant level); the effect of the development of production networks, based on standardized platforms and modules, that can be used to expand ‘coerced competition’ among plants on a global scale; the increasing production and working time flexibilization, which generally implies a reduction in labour standards and work conditions; the relationship between the intensification of work and the loss of workers’ control (exacerbated by the introduction of team working organization and new technologies). As far as Fiat’s general strategy is concerned, industrial relations are generally not conducted in a spirit of dialogue and constructive discussion, because any organizational change is always based on managerial prerogatives. More often, Fiat avoids discussion and refuses to participate in meetings with employees and trade unions. Information and consultation rights are not respected by the management. The experiments in union participation at Fiat can be considered unsatisfactory. Fiat has always preferred a subordinate union not interfering with the management’s strategies and decisions. Furthermore, our research demonstrates that Fiat’s restructuring process is not unproblematic. That is to say, new forms and devices of control did not necessarily bring to a total managerial control. Claims that the new management strategy can ensure both productivity and a new form of workplace democracy in the post-fordist factory do not match the harsh experience of workers. Despite new labour-saving technologies and lean production organisation (World Class Manufacturing - WCM), car industry would need, more than in the past, the involvement and active participation of unions and workers. On the contrary, we point out that the actual form of production organization generates new tensions and increases employee’s discontent, likely to ignite industrial conflict. As a matter of fact, this patriarchal attitude, embedded in the Group’s heritage and history, hampers the company’s ability to implement its new model and reinforces workforce hostility towards the management.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
