Power & Control in Multi- Employer CB: The Hybridization of Israeli IR System Assaf Bondy - PhD Cnadidate, Department of Labor Studies, Tel- Aviv University
Lecture’s Steps 1. Few Words About my Position in the Field. – 2. Introduction Israeli IR System (Foundations, Levels of Regulation). 3. IR Change in Private Sector – Industry and Services Sectors, From Corporatist System to Hybrid System. – 4. Redefining Force/Power in IR System Introducing Some Qualitative Indicators. 5. Q & A and Comments. Assaf Bondy - PhD Cnadidate, Department of Labor Studies, Tel- Aviv University
Assaf Bondy - PhD Cnadidate, Department of Labor Studies, Tel- Aviv University
Israel IR Background • The Trade-Union “Federation” – the General “Histadrut” as a State-Builder. • Employers – Associations Manufacturers' Association, and Service-Sectors EAs. • Collective Bargaining Law (1957). Assaf Bondy - PhD Cnadidate, Department of Labor Studies, Tel- Aviv University
IR Background – Industry Sector(s) • Top-Down Organization and Heterogeneous Representation. • Low levels of EA Density. • Sector-Level CBAs After Period of Rank & File Dissent. • High Inter-Sectoral Coordination by Peak-Level. • Company-Level Representation – from Restraint to Upheaval. Assaf Bondy - PhD Cnadidate, Department of Labor Studies, Tel- Aviv University
Industry – IR System in Full employment (1959-1965) • Full-Employment + Wage Restraint = Wild Strikes . • Full-Employment + Wage increases at NLCA = Wild Strikes . • High Wage Drift – 50-100% Above Sectoral CBAs. • The Answer to Wild Wage-Drift – Recession (as a mean of centralization) Assaf Bondy - PhD Cnadidate, Department of Labor Studies, Tel- Aviv University
Industry – Centralization Vs. Decentralization • Centralized Social-Pacts (1970-1974): - Equal Multi-Sector Wage Restraint in Peak-Level. - Subversive Breaches – in sector and company level. • Polarization and the Victory of Difference (1976-1995): - Heterogeneity of Employers, High Wage-Drift and Low Social Benefits. - Sector-Level Failure. - Recognition in Company-Level CB (1978). - Centralized Private-sector peak level CBAs (1976-1995). Assaf Bondy - PhD Cnadidate, Department of Labor Studies, Tel- Aviv University
1948-1958 1959-1964 1965-1967 1968-1969 1970-1978 Year Austerity Full Recession War and Wage Full Employment Freeze Employment Unemployment 7-15% 2-5% 9-12% 5-7% 4-5% Wage increase (decrease) 0-3% 10-25% 0-(2)% 0% 6-20% Assaf Bondy - PhD Cnadidate, Department of Labor Studies, Tel- Aviv University
Service Sectors – Creation of Sectoral- Level • Local Level Representation of (weak) workers (1940-1965). • Bottom-Up employers’ Organization (1965-1970): - From Company/Local Level CBAs to Sector-Level CBAs – Rise in Coverage rate. - Creating Homogenous Sectors. - Centralization of TU Activity. • Top-Down Sector-Level CB: - Reproducing Low Levels of Representation. - Low-Level of wages + High Level of Social Benefits. Assaf Bondy - PhD Cnadidate, Department of Labor Studies, Tel- Aviv University
Services Sectors – Centralization Reproduced • Homogenous Sectors: - Bottom-Up Organization (of Employers) – Legitimizing Employers’ Cooperation with Sectoral Wage-Policy. – - Concentration High Level of EA Density, Concentrated TU Representation. • Weak-Workers CBA: - Low Wages (and Low Wage-Drift) & High Social Benefits. - Frequent Concession Bargaining. - No Company Level CB (!). Assaf Bondy - PhD Cnadidate, Department of Labor Studies, Tel- Aviv University
Summery (1): Israeli IR System – Hybrid structure and Logic Sectors Wage Drift Difference Dominant IR Workers Regime Menmbership- Coverage Link High Drift – Low Membership – Increasing Pluralist/Decentrali Industry Company-Level Heterogeneity and zed CB Structure Decreasing CBAs Decreasing Coverage. Representativeness Medium Drift – Low Membership – Reproducing Corporatist/Centra Services Market Forces Homogeneity and lized CB Structure High Coverage. Low Representativeness Assaf Bondy - PhD Cnadidate, Department of Labor Studies, Tel- Aviv University
Summery (2): Qualitative Indicators – Difference & Concentration Qualitative Indicators: • Homogeneity/Heterogeneity: - Industry – The Challenges of Difference. - Services – The Facilitation of Cooperation. • Structural and Political Concentration: - The Declining Role of CBAs & The Rising Role of Benefits. - Concentration and the Control of Company/Local Level CB. Assaf Bondy - PhD Cnadidate, Department of Labor Studies, Tel- Aviv University
Conclusion • The Israeli IR System – Between Corporatism and Pluralism. • Hybrid System – Fragility or Resilience (Baking Vs. Public-Trans.)? • Workers’ Weakness and EA Benefits – Maintain Control Over Constituents. • The Challenge of Growing Difference in Labor Market. Assaf Bondy - PhD Cnadidate, Department of Labor Studies, Tel- Aviv University
Thank You Very Much! Assaf Bondy - PhD Cnadidate, Department of Labor Studies, Tel- Aviv University
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