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LABOUR and TECHNOLOGY in the CAR INDUSTRY. Ford Strategies in Britain and Brazil

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LABOUR and TECHNOLOGY in the CAR INDUSTRY. Ford Strategies in Britain and Brazil LABOUR AND TECHNOLOGY IN THE CAR INDUSTRY. Ford strategies in Britain and Brazil Elizabeth Bortolaia Silva Thesis submitted for the Degree of PhD, Imperial College of Science and Technology University of London May 1988 LABOUR AND TECHNOLOGY IN THE CAR INDUSTRY Ford strategies in Britain and Brazil ABSTRACT This thesis looks at aspects of recent changes in international competition in the car industry. It examines the implications of the changes for the relationship between technology and work and it considers how strategies of multinational corporations interact with different national contexts. It is based on a case-study of the Ford Motor Company in its two largest factories in Britain and Brazil, Dagenham and São Bernardo. Chapter 1 describes existing theoretical approaches to comparative studies of technology and work, criticizes technological and cultural determinist approaches and argues for a method that draws on a 'historical regulation' approach. Chapters 2, 3 and 4 describe the long-term background and recent shifts in the pattern of international competition in the motor industry. In particular they look at important shifts in the late 1970s and 1980s and at Ford's changes in management structure and product strategy designed to meet these challenges. Chapter 5 considers recent debates on international productivity comparisons and presents a fieldwork-based comparison of the production process at Dagenham and São Bernardo. The description shows the importance of issues other than technology in determining the flexibility and quality of production. In different national contexts, 2 different mixes of technology and labour can produce comparable results. Chapters 6, 7 and 8 look at the national and local contexts of industrial relations in the two countries to throw light on the different patterns of change observed in the factories. Chapter 9 draws these sections together by looking at how different managerial strategies pursue common goals of quality, flexibility and productivity in different national contexts, and Chapter 10 suggests some of the more general implications of the work. 3 Contents Chapter 1 LABOUR AND TECHNOLOGY: FROM DETERMINISM TO HISTORICAL REGULATION 11 1. The roles of technology and work 12 2. International and national regulations 22 3. The research strategy 32 Chapter 2 THE INTERNATIONAL CAR INDUSTRY UP TO THE MID 1980S 40 1. Earlier developments 42 2. The recent challenges 56 Chapter 3 COMPETITION AND MARKET PROTECTION IN BRITAIN AND BRAZIL 65 1. The car industry in Britain 65 2. The car industry in Brazil 77 3. An equal challenge for Britain and Brazil in the mid 1980s? 101 Chapter 4 FORD: STRATEGIES AND STRUCTURES IN BRITAIN AND BRAZIL 109 1. Shifts in global strategy 109 2. The structure in Britain 114 3. The manufacturing of new products in Britain 120 4. The structure in Brazil 124 5. The manufacturing of new products in Brazil 130 6. Ford-Britain and Ford-Brasil compared 135 4 Chapter 5 PRODUCTION PROCESSES AT DAGENHAN AND SÃO BERNARDO 137 1. The sites and the areas compared 142 2. Production processes for Body Construction 147 3. Production processes for Paint 181 4. Production processes for Trim and Final Assembly 192 5. The making of quality 209 6. Similarities and differences in the production processes: technology, employment, efficiency and quality 214 Chapter 6 INDUSTRIAL RELATIONS IN BRITAIN AND LABOUR ARRANGEMENTS AT DAGEN}IAM 220 1. The broader context of labour relations in the car industry 221 2. Industrial relations strategies at Ford before the 1980s 232 3. Lessons from Halewood and Austin Rover (BL) 250 4. Consultation on controlled and slow changes 255 5. Lower levels of employment, flexibility and avoidance of disputes 260 Chapter 7 INDUSTRIAL RELATIONS IN BRAZIL 266 1. The institutional framework of labour relations 267 2. The late seventies: breaking with old patterns 272 3. The early eighties: building a new industrial relations system 280 5 Chapter 8 SÃO BERNARDO: NEW PRODUCTION PROCESS AND INTERNATIONAL INTEGRATION 293 1. Changes with new technology. Democracy? 293 2. 1986: failures of the democratic project 309 3. Debt, multinationals, democracy and industrial relations 322 Chapter 9 FLEXIBILITY, QUALITY AND EFFICIENCY: THE ROLE OF JOB STRUCTURES AND EMPLOYEE INVOLVEMENT 329 1. Employment levels and workforce composition in the 1970s and 1980s 331 2. Trends and policies of labour turnover 337 3. Wage and job structures 348 4. The 1985 changes in industrial relations 353 5. The Employee Involvement Programme (El) 362 6. Why different reforms towards flexibility 385 Chapter 10 CONCLUS IONS 392 Sources 398 Bibliography 404 6 LIST OF TABLES 2.1 Regional distribution of car production in the world, 1965-1980. 57 3.1 Development of the car industry in Britain. 72 3.2 Car production in Britain by company, 1975 to 1986. 73 3.3 Car production, exports and total new registrations in Britain, 1975 to 1986. 75 3.4 Development of the car industry in Brazil. 85 3.5 Car production in Brazil by company, 1975 to 1985. 87 3.6 Car production and exports in Brazil, 1975 to 1985. - 94 3.7 Brazilian exports of Built-Up and CKD cars by region of destination, 1980 to 1985. 96 4.1 Industrial robots by application and total employment in Ford of Europe, 1979-1986. 113 4.2 Organization structure of Ford of Europe, 1986. 117 4.3 Management hierarchy, Ford-Britain, 1986. 120 4.4 Management hierarchy, Ford-Brasil, 1986. 129 5.1 Direct and indirect car workers by area, Dagenham. 145 5.2 Direct and indirect car workers by area, São Bernardo. 146 5.3 Employment of direct workers in Body Assembly, São Bernardo. 176 5.4 Robots and spotwelding distribution for Body Assembly - Sierra in Dagenham and Escort in São Bernardo. 179 5.5 Employment in the Paint shop, Dagenham. 182 5.6 Employment in the Paint plant, São Bernardo. 189 7 5.7 Employment of indirect workers in Trim and Final Assembly, Dagenham. 192 5.8 Employment per shift in Trim and Final Assembly Area, Dagenham. 196 5.9 Employment per shift in Trim and Final Assembly Area, São Bernardo. 198 5.10 Quality scoring of the Escort in São Bernardo, Halewood and Saarlouis. 213 5.11 Output per worker per day and other character- istics of the production process in Dagenham and São Bernardo. 217 6.1 Employment and output in the motor vehicles and parts sector, Great Britain, 1979 and 1985. 264 7.1 Employment and production at Ford, São Bernardo, 1980-1985. 286 7.2 Index of total car production and proportion of exports in the car industry and in Ford-Brasil. 286 9.1 Distribution of the workforce by grade and area, 1977 to 1985, Dagenham, Stamping/Body Assembly, and Paint, Trim/Final Assembly. 332 9.2 Hourly paid wage structure (grades and rates) by areas in Dagenham, November 1985. 334 9.3 Hourly paid wage structure (grades and rates) by areas in São Bernardo, November 1985. 335 9.4 Reasons for termination, hourly workforce, Ford-Britain, Companywide, Tax Year 1977/78 and 1978/79. 339 9.5 Hourly headcount, hirings, terminations, wastage rate and labour turnover. Ford-Britain and Dagenham site. 340 9.6 Percentage of terminations by grade and area, and hirings by grade over the hourly headcount, Dagenham, 1980, 1982 and 1984. 343 9.7 Headcounts, hirings, terminations, wastage rate and labour turnover. Ford-Brasil and São Bernardo site. 346 8 LIST OF DIAGRAMS 1 Underbody assembly, Dagenham, 1985 152 2 Body side assembly, Dagenham, 1985 154 3 Body frame assembly, Dagenham, 1985 155 4 Finish welding, Dagenham, 1985 157 5 Underbody assembly, Escort, São Bernardo, 1986 165 6 Body side assembly, Escort, São Bernardo, 1986 166 7 Body frame assembly, Escort, São Bernardo, 1986 168 8 Underbody assembly,-Old models, São Bernardo, 1986 171 9 Body side assembly, Old models, São Bernardo, 1986 172 10 Body frame assembly, Old models, São Bernardo, 1986 173 11 Paint plant, São Bernardo, 1986 187 12 Trim and Final Assembly plant, Dagenham, 1986 195 13 Trim and final Assembly plant, São Bernardo, 1986 201 14 The managerial 'grid' 373 9 Acknow1edgeents Financial support for the work on this thesis and my doctoral programme was provided by the FundacAo de Ainparo a Pesquisa do Estado de São Paulo (FAPESP) and the British Council. I wish to thank f or his support my supervisor in the Department of Social and Economic Studies at the Imperial College of Science and Technology, Professor Roderick Martin. I am very grateful to the people at Ford-Brasil, Ford-Britain and Ford of Europe who gave me their time and enabled me to understand so much about their work. My knowledge and thoughts have also benefitted from discussions with the workers in trade unions in England and in Brazil, and those in trade union Research Institutes (TURU and DIEESE). I enjoyed the support of José Ricardo Tauile, whose good contacts with management at Ford-Brasil opened doors to me. Leda Gitahy encouraged me with her willingness to see my work through and through discussions of her own studies. Helena Hirata opened to me the literature and introduced me to many profitable discussions with French academics, from whom I learnt a lot. Jane Barker provided me with a world of information, contacts and a lot of 'femininity' hints in this field of motor industry research. John Humphrey and Hubert Schmitz gave me helpful advice, opinions and information, sharing with me their research experience in Brazil and their good knowledge of British society. Warm gratitude I address to my mother, Natalina Bortolaia Silva and to my father Onestino da Silva (corn saudades). He was the one who first taught me about the fascinating bits and pieces of cars.
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