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  • Monday, March 24, 2014

    Reconfiguring the US Auto Sector: Lessons from Germany

    John Cody
    Advocates of neoliberal policy believe that flexible workforces, looser regulations and less government will lead to stronger economies and a better environment for business. Within the US, many such policies have been put into effect with disastrous consequences for the labor market and industry. Even beyond the US, there are claims that all countries are converging into one homogeneous neoliberal set of actors due to globalization pressures. However, in contrast to such assertions is the case of Germany, which features a relatively secure and well-paid manufacturing workforce that fuels one of the largest export surpluses in the world.

    Germany’s automobile manufacturing sector provides a pertinent example as to how workers can have both fair wages and decent work while sustaining companies that generate far more profit than US automobile producers since the 2008 crisis. Germany’s comparative advantage in automobile manufacturing has much to do with its institutional arrangements, all markedly different from those in the US. These institutional arrangements touch on a broad range of areas, including worker training, union power, co-determination and social welfare provisions. Due to labor's position as an institutional stakeholder, Germany has ultimately seen reduced conflict between employers and employees and fostered a competitive workforce to produce in-demand vehicles.

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    Thursday, March 6, 2014

    A huge Setback

    Paul Rechsteiner
    Renzo Ambrosetti
    Andreas Rieger
    On 9 February a narrow majority of Swiss voters voted in favour of an initiative by the Swiss People's Party (SVP) calling for the reintroduction of quotas for immigrants from the EU. This decision is a huge setback for immigrants to Switzerland, for trade unions and for all progressive forces, and leads Switzerland unavoidably up a blind alley. 

    The background

    Switzerland has been a country of immigration since the beginning of the 20th century. Already in the 1970s, people with other passports accounted for more than 20% of the population. At that time, immigration was governed by a system of quotas and special statuses which left migrants completely without rights: Seasonal workers were only entitled to fixed-term residence permits which in addition were valid only for a specific employer. Moreover, migrants’ families were not permitted to join them under any circumstances. In the late 1980s, however, the statute governing seasonal workers came under increased pressure from Swiss trade unions that succeeded in organising a very large number of migrant workers.

    In 1992 Switzerland's accession to the European Economic Area (EEA) came up for discussion. The aim was to introduce free movement of people as defined by the European Community at that time, i.e. to abolish quotas and discriminating regulations. Swiss trade unions supported this. But in 1992 50.3% of Swiss voters voted against the EEA. One of the main reasons behind this was the desire of national conservative right-wing parties to keep their distance from the European Community. But another reason was the fact that blue- and white-collar workers feared that free movement of workers would undermine the Swiss wages and labour standards.

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