Power & Control in Multi- Employer CB: The Hybridization of - - PowerPoint PPT Presentation

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

• f

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

General Trade-Union “Federation” – the “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

Assaf Bondy - PhD Cnadidate, Department of Labor Studies, Tel- Aviv University

Year

1948-1958 Austerity 1959-1964 Full Employment 1965-1967 Recession 1968-1969 War and Wage Freeze 1970-1978 Full Employment

Unemployment 7-15% 2-5% 9-12% 5-7% 4-5% Wage increase (decrease) 0-3% 10-25% 0-(2)% 0% 6-20%

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

• f

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 Regime Workers Menmbership- Coverage Link

Industry High Drift – Company-Level CBAs Increasing Heterogeneity and Decreasing Representativeness Pluralist/Decentrali zed CB Structure Low Membership – Decreasing Coverage. Services Medium Drift – Market Forces Reproducing Homogeneity and Low Representativeness Corporatist/Centra lized CB Structure Low Membership – High Coverage.

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