1. 1 Metalworker unions in post- Communist Central Europe: enterprise coalitions for production Alexandra Janovskaia, LSE CEELBAS seminar, St. Anthony’s College, University of Oxford May 30th, 2008

2. 2 Plan of presentation I.Union revival? II.Labour and management in VW Central Europe III.The link to industrial upgrading IV.Enterprise coalitions for production

3. 3 I. Union revival in the automotive MNCs in Central Europe? High membership levels Tougher collective bargaining agreements Some strike activity  External factors as drivers? Meardi 2007: more voice after more exit  Or internal?

4. 4 I. Union revival? External factors (labour market changes) cannot account alone for this revivial For metalworker unions, since the late 1990-early 2000s enterprise level has been the main level of increased influence This mechanism of influence can be described as union- management enterprise coalitions for production

5. 5 II. Labour and management in VW Central Europe VW SkodaVW Slovakia VW PoznanAudi Györ Unions present OS Kovo + Independent U OZ KovoSolidarnosc + Independent U Enterprise union + VASAS Union membership 65-67% 70% 58% 50%

6. 6 III. The link to industrial upgrading Other actors responsible for industrial upgrading in Central European locations: 1. VW headquaters management Internationalisation strategy based on standardisation of modules and differentiation of brands  Greater brand differentiation within the VW Group since the 1990s  Exploring the niche markets: SUVs,utility vehicles, small cars  Reduction of platforms  Production standardisation (modules)

7. 7 III. The link to industrial upgrading 2. VW WCs and IG Metall Principle of a solidaristic balancing of interests among all production locations Sectoral trade union IG Metall and VW works council pushed for the strategy of ‘solidaristic balancing of employment and developmental opportunities of all production sites of the VW Group‘ (VW European Works Council preamble 1990)

8. 8 IV. Enterprise coalitions for production  Intensification of information exchange and increasing number of trade-off deals between local management and labour in the late 1990s- early 2000s went in parallel to the industrial upgrading process 1) Collective agreements Trade-off deals between local management and labour Low wages, investment and industrial upgrading vs. internal and external flexibility and small improvements of working conditions Collective bargaining as flexibility tool for management Rarely go beyond legal provisions

9. 9 IV. Enterprise coalitions for production 2) Labour inclusion in the supervisory board This provision is a legal obligation, yet in place since the late 1990s due to changes in company status In Škoda since 2000, in Audi Hungaria since 1995) and in VW Slovakia since 1998 Yet no co-determination German style It does not give labour direct power to influence decisions but provides an additional information tool Having access to confidential company information strengthens labour’s predisposition to become a ‘co- manager’ rather than a ‘political entrepreneur’ (Greer and Hauptmeier 2008)

10. 10 IV. Enterprise coalitions for production 3) Use of information and consultation rights In Skoda, a special Economic Committee meets regularly In VW Slovakia, unions meet the personnel manager once week In VW Poznan, regular weekly meetings take place between the Union Committee and management representatives In Audi Györ this relationship is the most institutionalised: WCs since mid-1990s

11. 11 IV. Enterprise coalitions for production 4) Unions as disciplining force Set out to resolve the turnover problem Developing a discourse of valuation of skills and knowledge

12. 12 Conclusion  Enterprise coalitions for production between labour and local management representatives have been a crucial factor in revitalisation of metalworker unions Yet, how sustainable is this logic of influence? Company based productionist union identity - strength or weakness? ‘Rationalised embeddedness’ (Bluhm 2007) or Concession bargaining ‚German style‘ (Juergens et al. 2006)?