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East-West Integration and the Changing German Production Regime: A Firm-Centered Approach. CES Central & East Europe Working Papers, no. 53, 2000

Innes, Abby. (2000) East-West Integration and the Changing German Production Regime: A Firm-Centered Approach. CES Central & East Europe Working Papers, no. 53, 2000. [Working Paper]

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    Abstract

    With the opening of Central Eastern Europe German firms have gained access to low labor costs in close geographical proximity. Intense debate about the impact this has had on the "German model" of capitalism has ensued. This paper argues that, in fact, production shifts are taking place in which cost-cutting motives are an important guideline. German firms, however, hesitate to aggressively utilize this new option in their internal domestic labor policy. Rather, firms tend to avoid confrontations with their employees on "job exports". The necessity of collaboration on both sides of the border, the relative strength of workers in the domestic high-quality production system, and the constraints of industrial relations provide explanations for the moderate behavior. So far, the outcome of the bargained reorganization is that firms gain more labor flexibility, performance-related differentiation, and labor-cost rationalization without challenging the institutionalized long-term employment commitments for their core workforce.

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    Item Type: Working Paper
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > employment/labour market > labour/labor
    EU policies and themes > Treaty reform > enlargement
    Countries > Germany
    EU policies and themes > Policies & related activities > economic and financial affairs > business/private economic activity
    Subjects for EU documents: UNSPECIFIED
    EU Series: UNSPECIFIED
    ["eprint_fieldname_eusries" not defined]: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Harvard University, Center for European Studies > Program on Central & Eastern Europe Working Papers Series
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 19 Aug 2009
    Page Range: p. 20
    Last Modified: 15 Feb 2011 18:00
    URI: http://aei.pitt.edu/id/eprint/9278

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