The shift from manufacturing- to service-based economies has
often been accompanied by the expansion of low-wage and insecure
employment. Many consider the effects of this shift inevitable. In
Disintegrating Democracy at Work, Virginia Doellgast contends that
high pay and good working conditions are possible even for marginal
service jobs. This outcome, however, depends on strong unions and
encompassing collective bargaining institutions, which are
necessary to give workers a voice in the decisions that affect the
design of their jobs and the distribution of productivity
gains.
Doellgast's conclusions are based on a comparative study of the
changes that occurred in the organization of call center jobs in
the United States and Germany following the liberalization of
telecommunications markets. Based on survey data and interviews
with workers, managers, and union representatives, she found that
German managers more often took the "high road" than those in the
United States, investing in skills and giving employees more
control over their work. Doellgast traces the difference to
stronger institutional supports for workplace democracy in Germany.
However, these democratic structures were increasingly precarious,
as managers in both countries used outsourcing strategies to move
jobs to workplaces with lower pay and weaker or no union
representation. Doellgast's comparative findings show the
importance of policy choices in closing off these escape routes,
promoting broad access to good jobs in expanding service
industries.
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