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‘Commodifying institutions’: vertical disintegration and institutional change in German labour relations

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  • Hajo Holst

Abstract

The article analyses the impact of vertical disintegration on German labour relations. Previous research argued that the proliferation of outsourcing, divestment and non-standard employment results in a ‘dualism’ between a core of secure workplaces and a growing fringe of precarious jobs. Evidence from two key sectors, metalworking and telecommunications, however, suggest that this clear-cut division is replaced by a fragmented landscape of labour relations. In terms of institutional change, the analysis reveals a specific form of incremental transformative change, namely a shift in the meaning of formally stable legal-political institutions. Even in the allegedly stable core areas, the institutions of labour relations are gradually transformed from market-constituting institutions to market-dependent variables. Vertical disintegration plays an important role in this process of institutional commodification. It not only moves the core–periphery boundary; it is also deployed to subjugate collective bargaining, workplace co-determination and the utilization of labour law to firm-level economic calculations.

Suggested Citation

  • Hajo Holst, 2014. "‘Commodifying institutions’: vertical disintegration and institutional change in German labour relations," Work, Employment & Society, British Sociological Association, vol. 28(1), pages 3-20, February.
  • Handle: RePEc:sae:woemps:v:28:y:2014:i:1:p:3-20
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    Citations

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    Cited by:

    1. Ines Wagner, 2015. "The Political Economy of Borders in a 'Borderless' European Labour Market," Journal of Common Market Studies, Wiley Blackwell, vol. 53(6), pages 1370-1385, November.
    2. Valeria Pulignano & Andrea Signoretti, 2016. "Union Strategies, National Institutions and the Use of Temporary Labour in Italian and US Plants," British Journal of Industrial Relations, London School of Economics, vol. 54(3), pages 574-596, September.
    3. Andreas Kornelakis, 2016. "Inclusion or Dualization? The Political Economy of Employment Relations in Italian and Greek Telecommunications," British Journal of Industrial Relations, London School of Economics, vol. 54(2), pages 385-408, June.
    4. Hiroaki Richard Watanabe, 2018. "Labour Market Dualism and Diversification in Japan," British Journal of Industrial Relations, London School of Economics, vol. 56(3), pages 579-602, September.
    5. Ochsenfeld, Fabian, 2018. "The Relational Nature of Employment Dualization: Evidence from Subcontracting Establishments," SocArXiv ta4r6, Center for Open Science.

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