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Strategic Choices in Reforming Public Service Employment an International Handbook

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Strategic Choices in Reforming Public Service Employment an International Handbook Strategic Choices in Reforming Public Service Employment An International Handbook Edited by Carlo Dell’Aringa, Guiseppe Della Rocca and Berndt Keller dell'aringa/96590/crc 16/7/01 12:44 pm Page 1 Strategic Choices in Reforming Public Service Employment dell'aringa/96590/crc 16/7/01 12:44 pm Page 2 dell'aringa/96590/crc 16/7/01 12:44 pm Page 3 Strategic Choices in Reforming Public Service Employment An International Handbook Edited by Carlo Dell’Aringa Giuseppe Della Rocca and Berndt Keller dell'aringa/96590/crc 16/7/01 12:44 pm Page 4 Editorial matter and selection © Carlo Dell’Aringa, Giuseppe Della Rocca and Berndt Keller 2001 Chapters 1–9 © Palgrave Publishers Ltd 2001 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2001 by PALGRAVE Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N. Y. 10010 Companies and representatives throughout the world PALGRAVE is the new global academic imprint of St. Martin’s Press LLC Scholarly and Reference Division and Palgrave Publishers Ltd (formerly Macmillan Press Ltd). ISBN 0–333–92162–3 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. A catalogue record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Strategic choices in reforming public service employment : an international handbook / edited by Carlo Dell’Aringa, Giuseppe Della Rocca, Berndt Keller. p. cm. Includes bibliographical references and index. ISBN 0–333–92162–3 1. Employee–management relations in government. I. Dell’Aringa, Carlo. II. Della Rocca, Giuseppe. III. Keller, Berndt. HD8005 .S78 2001 331.88’11351—dc21 2001032124 10987654321 10 09 08 07 06 05 04 03 02 01 Printed and bound in Great Britain by Antony Rowe Ltd, Chippenham, Wiltshire Contents List of Figures viii List of Tables ix Notes on the Contributors xi Preface and Acknowledgments xii List of Abbreviations xiv 1 Reforming Public Sector Labor Relations 1 Carlo Dell’Aringa Introduction 1 Privatization and labor cost reductions 4 The New Public Management 9 Administrative decentralization and collective bargaining 12 Trade unions’ responses to increasing flexibility 17 Concluding remarks and open questions 21 2 The New Public Management in Europe 24 Stephen Bach and Giuseppe Della Rocca Challenges and problems 24 Traditional organization and practice in the public services 25 Management practice in Europe: toward a New Public Management? 28 Comparative evidence 32 Market-type mechanisms 37 Exploring national variations in management practice 39 3 Collective Bargaining in Western Europe 48 Lorenzo Bordogna and David Winchester Introduction: common pressures, diverging solutions? 48 A framework for comparative analysis 50 Unilateral versus joint regulation: the coverage of collective bargaining 52 Centralization versus decentralization: the level of bargaining 57 v vi Contents The coordination of collective bargaining 62 Concluding remarks 65 4 Employer Associations and Unions in the Public Sector 71 Berndt Keller, Jesper Due, and Søren Kaj Andersen Introduction 71 Public sector employers and their associations 72 Centralized control versus decentralized flexibility 74 Initiating change and modernization 78 Trade unions 83 Coping with change 87 Outlook 91 5 United States Public Sector Employment 97 Jonathan Brock Overview of public sector employment 97 Organizational structure 100 Qualitative employment and wages 102 Civil service systems and employer associations 109 Unions 111 Bargaining and negotiations 114 Reform efforts 121 Conclusions 123 6 Canadian Public Sector Employment 127 Mark Thompson Introduction 127 Organizational structure, employment and wages 129 The actors: employers and employer associations 135 The actors: trade unions 138 Public sector labor relations 140 Labor conflict and regulation of strikes 146 Labor management cooperation 149 Conclusions 150 7 Japanese Public Sector Employment 155 Kazutoshi Koshiro Introduction 155 Organizational structure, employment and wages 157 Contents vii Employers and employer associations 169 Trade unions 174 Public sector labor relations 178 Conclusions 181 8 Public Sector Industrial Relations in New Zealand 185 Pat Walsh, Raymond Harbridge, and Aaron Crawford Introduction 185 Organizational structure, employment and wages 186 The actors: employers and employer associations 193 The trade unions 198 Public sector labor relations 204 Conclusions 210 9 Employment Relations in the Australian Public Sector 216 Russell D. Lansbury and Duncan K. Macdonald Introduction 216 Organizational structure, employment and wages 217 The role of employers in the public sector 223 Trade unions 229 Public sector industrial relations 232 Conclusions 240 Subject Index 243 List of Figures 7.1 Number of public employees (1995) 158 7.2 An international comparison of the number of government employees 162 7.3 Changes in the average pay differentials (Laspeyres Index) between national and local government employees, 1963–1997 168 7.4 Distribution of pay differentials (Laspeyres Index) between the national and local public services in 1974 and 1997 168 viii List of Tables 1.1 Total public employment 8 1.2 Compensation costs in the public sector as a percentage of GDP 9 6.1 Government final consumption as a percent of GDP, current prices 128 6.2 Public sector employment, 1980–1995 131 6.3 Public sector employment share of labor force, 1980–1997 132 6.4 Membership, major public sector unions, 1980–1998 139 6.5 Public sector union membership and density, 1980–1992 140 6.6 Cumulative negotiated wage change, private and public sectors, 1980–1996 146 7.1 Budgetary fixed number of national government employees 159 7.2 National government employees by employment status 160 7.3 Local government employees, 1975–1997 161 7.4 Average straight-time monthly earnings of the national public service, 1988–1997 166 7.5 Number of organized workers classified by the applicable laws, fiscal year 1953–1997 176 8.1 Public sector employment, 1980–1998 187 8.2 Public service organizations by size, 1984 and 1998 188 8.3 Staffing in selected SOEs, 1987–1991 188 8.4 Employment in public health and education sectors, 1984–1998 189 8.5 Gender breakdown of employment, 1980–1998 190 8.6 Public sector union membership, 1990 and 1997 203 8.7 Labor cost index by sector, 1992–1998 208 8.8 Work stoppages, involvements and days lost by sectors, 1990–1996 209 9.1 Changes in numbers of government employees, 1990–1997 219 9.2 Employment in the Australian public service, 1988–1997 219 ix x List of Tables 9.3 Employment in the Federal Department of Health, 1990–1997 220 9.4 Employment in the State Department of Education in New South Wales, 1988–1996 220 9.5 Major public sector unions in Australia 236 9.6 Industrial conflict in Australia: comparison of public and private sectors 236 9.7 Industrial conflict in Australia: selected industries 238 Notes on the Contributors Carlo Dell’Aringa, Department of Economics, Catholic University of Milan Stephen Bach, The Management Centre, King’s College, London Giuseppe Della Rocca, Department of Sociology, University of Calabria Lorenzo Bordogna, Professor of Organizational Sociology, Department of Social Sciences, University of Brescia, Italy David Winchester, Industrial Relations Research Unit, Warwich Business School, University of Warwich Berndt Keller, Department of Political Science, University of Konstanz Jesper Due, Industrial Relations Research Group (FAOS), Department of Sociology, University of Copenhagen Søren K. Andersen, Industrial Relations Research Group (FAOS), Department of Sociology, University of Copenhagen Jonathan Brock, “Daniel J. Evans” School of Public Affairs, University of Seattle Mark Thompson, Faculty of Commerce and Business Administration, University of British Columbia Kazutoshi Koshiro, Yokohama National University and University of the Air Pat Walsh, Human Resource Management and Industrial Relations, Victoria University of Wellington Raymond Harbridge, Employment Relations, Victoria University of Wellington and Management, La Trobe University of Melbourne Aaron Crawford, Industrial Relations Centre, Victoria University of Wellington Russell D. Lansbury, Department of Industrial Relations, University of Sydney Duncan K. Macdonald, School of Management, University of Newcastle xi Preface and Acknowledgments The idea for this book arose from a research network of scholars with an established interest in public sector employment relations. The motivation in common was to understand and discuss the most signif- icant trends in the rationalization and changes in employment rela- tions in the public sector in quite a representative number of OECD countries. The aims of the book are twofold. First, it puts forward a number of interpretative hypotheses on this phenomenon and investi-
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