CEU eTD Collection
submitted to the Central European University in partial fulfillment partial in University European Central to the submitted TRADERESPONSESUNION CROSS TO COMPETITIONTHEENLARGEDIN EU EVIDENCETHEAUTOMOTIVE FROM ANDCONSTRUCTION SECTORS Supervisor: Prof. Dorothee Bohle Department Political of Science DOCTOR OF PHILOSOPHY OF PHILOSOPHY DOCTOR A Doctoral Dissertation Dissertation Doctoral A Magdalena Bernaciak Bernaciak Magdalena for the Degree of of Degree the for February 2011 by by
- of the requirements requirements the of BORDER
: :
CEU eTD Collection plants in different in plants Therelations countries. analysis of Polish-German union benefit more from the Western assistance than from local solutions. Alternatbenefit local the solutions. more Western than assistance from from for East-West labor transnationalism in view in for of the labor East-West importance cost compa transnationalism of a cooperateIt industry, automotive is unions cr each other.with which onthe focuses
workers’ assistance schemes. gains and limited derivedsolutions organizations from theby twoPolish partici nat to Germanattachment scope narrower the to union’s of due cooperation remained German resembled unions the car in the construction one identified Speci industry. evidencefromabove the against c The arguments chapter the last tests governingIt shows the that mechanism of competitive pressure. interaction which ain the inflow m of workers CEE European labor constituted West markets to which the once in deep led to front. unified GM divisions labor cross-border governmentenhanced ofaccess secure their at to the sites the cost interests assertion, Germanemployee2008-2009 showing corroborates represe that this unions’ reactions Thecost-benefit evidence cr the onGM economic to considerations. rounds. Overall,distribution European East-West g was transnationalism labor exchange. wasreciprocal Thebased Ger cooperation resulting on The whereas underbid themselves to committed not the the during Germans investment Poles and uptheir organizations assisted during them build Poles the loca with disputes attract new production. their comparativehesitate lower utilize to advantage and wages of inferi The Poles, in turn, cooperated in exchange for the Germans’ they turn,forThe cooperated only in exchange Poles, the in if support, and them the dangerto thus was plants cheaper of parti underbidding the Polish by national channels negotiation whenareas w comparisons, no cross-border to subject counterpa their with Polish cooperative establish to links the German sought unions MAN, engine shows GM and plants, component Volkswagen’s manufacturing companies, This dissertation explores under what conditions West and Central-EastWest under dissertation explores Europe This what conditions
Abstract Abstract 1
or working conditions to to workingconditions or of other locations, s betweens and Polish atand three car car ively, not they did mans helped the mans risons amongrisons car onstruction sector, onstruction ntatives used uided primarily by pating migrant in expected to l management, management, l cularly high. fically, the fically, rts in the rts in ere available ere available ajor source itical case itical ional ional isis of isis an trade
that that CEU eTD Collection problem related to my dissertation and other research projects I was projects andproblem related other research dissertation my to I dedicate this dissertation to the memory of my Grandparents, Zofia the memory to IGrandparents, my and S dissertation of dedicate this I moved before t ideas. He completed me at feel home we wherever also made who helped Salkin, Svetoslav me clarifySkypeand away, sometimes to my call support and for my alwa Specialemotional for thanks are dueparents their to InstituteFoundationresearch. funding Böckler for Union Hans my and the gratitudeI my express would also to European like Central to University, t their whojobs lost but I dueworkers factoryclosur to plants visited, whose walk at the day, of theatcold traina to tea a winter sta cup lift factory ona canteen, a I Manyand moved hospitab Belgian by warm was times, unionists. their trade Ger –Polish, been work materialized not hadThis have wouldnot it for interviewees my meHarbord onthefrom structure CEU’sconsulted Academic Writing of Centre m about just to acoordinatorsanyand solution Noemi found Kakucs Robert Sata org depa wasdataOur ofpapers. our a onthe and car joint industry patient co-author Verawell-taken collegial provide Šćepanović support invaluable. and their Researchhave manyGroup argument heard (PERG) my their fee but times, from students theMy Centralfellow European University andprofessors and approachesthe existing account. my labor to transnationalism own Marginsonworking who Paul and helped Meardi, with abet Guglielmo me link construct IIRRU,at WSI thewas organizingpl supportive At in very had fieldwork. my in and pay explanations move actors’ acti beyond to attention structuralist more IndustrialUniversity’s Maarten Research (IRRU). Relations Unit Keune Institut (WSI Brussels, Sozialwissenschaftliches Wirtschafts- und I Igreatly my from benefited fellowships at the European Trade Union stage.contagious and steerwrap-up helped through me the sharpening Finally, and issues. posit his argument sorting my methodological out helpedImy meone in alsoour was focus consultation dissertation. He should the onin I BobIgratefulam also very me s convinced Hancké. the that mechanism He to encouraged new take me challenges. to up of dissertation rese at advice my eachcontinued stage constructive giving me EuropeanEast-West I exploringconversations the of topic unio that began laborfirst semester raised politics interests my of in MA studies a demanding H andand inspiring friend. but reliable finally, a advisor supportive control andwasimplies oversight, does correctly role. not describe her She In‘supervisor’, the fact, wordI thank Dorothee to Bohle,would like whi supervisor. my Acknowledgements Weihnachtsmarkt… At the At same I time, am Salzgitter very and for Antwerp sorry the 2 ; it was it our also thanks; to ) Düsseldorf in and Warwick involved in at CEU. John at CEU. John in involved nstitute (ETUI)nstitute in ’s Political Economy Political ’s at ETUI to urged me tion or an evening tion n relations. She he European Trade he tanisław Grzegorczyk. Grzegorczyk. tanisław d me with top-qualityd me with es. dbackalways was a patient consultant, ons. Martinons. Behrens archand ys a being just ility: lunches joint his work.his very chaotic uggested during uggested rtmental class theer in ive energy was easure of anizational anizational y thesis. ch man ween ween CEU eTD Collection transnationalism labor European Chapter East-West 5.Economic integration and of restructuring company view cooperation in Chapter 4.MAN: failed ...... 92 to reciprocal exchange Chapter 3.GM: underbidding from ...... 66 transnationalChapter cooperation plants: engine 2.Volkswagen’s and bargain local odds? all Chapter against ...... 1.Cooperation: 13 Introduction ...... 5 Contentsof Table 5.3. Why do unions go transnational? 5.3. Whygo transnational? dounions ...... 121 GM and5.2. VW, MAN:and comparative factors of cooperation union discussion ...... 117 Introduction5.1...... 116 the MAN 4.7. Conclusions: case ...... 114 the truck in 4.6. A a new area? Poland: prelude in plant relocation to ...... 110 4.5. Therelocation...... second 104 Information4.4. costs strategy? or raising exchange rivals’ ...... 98 4.3. The first relocation ...... 95 4.2. Company profile ...... 93 Introduction4.1...... 92 the GM case 3.8. Conclusions: ...... 89 3.7. Continuing disagreements ...... 85 3.6. Western assistance: (PO3 brothers’ 2007) from ‘learning older ...... 83 European3.5. Deltaand Pledge the Group Solidarity ...... 77 the early EEF:3.4. Solidarność (1999-2004)...... in period 73 3.3. The European of evolution cooperation between West GM unionists ...... 68 3.2. Company profile ...... 67 Introduction3.1...... 66 engine the VW 2.7. Conclusions: case ...... 63 2.6. Solidarity Solidarność with ...... 57 security exchange job in 2.5. Volkswagenconcessions for AG: ...... 54 no production2.4. takeovers No strikebreakingwork, ...... 49 2.3. Volkswagen’scorporate transformation and culture its ...... 42 2.2. Company profile ...... 40 Introduction2.1...... 39 methodology 1.4. Researchdesign and ...... 29 1.3. Available of labor explanations transnationalism ...... 21 and researchquestion...... 1.2. Puzzle 13 Introduction1.1...... 13 5.3.3. German unions: growing non-cooperation costs growing5.3.3. German costs non-cooperation unions: ...... 130 CEE production in 5.3.2. Automotive ...... 125 5.3.1. Germancar workers onthe defensive industry: ...... 121 1.4.4. Methodologydata sources and ...... 37 analysis 1.4.3. Time frame the of ...... 36 cooperation1.4.2. Cross-border –conceptualization union ...... 34 1.4.1. Case selection ...... 29
3 ...... 116 ing .. 39
CEU eTD Collection References ...... 203 list interview Appendix: ...... 199 Conclusions ...... 189 strategies union themigration construction and in indust Chapter 6.Labor 6.7. Conclusions: the construction industry6.7. Conclusions: case ...... 186 strategies6.6. Union thethe construction in Polish-German industry: perspect labor6.5. East-West and mobility reactions union ...... 168 industry6.4. Construction Germany andin Poland ...... 165 strategic6.3. Trade and dilemmas options policy and unions migration: ...... 160 6.2. Market and competitive manufacturing liberalization pressureand in ser Introduction6.1...... 155 The Opel/Magnacas solidaritycrisis? 5.7. Transnational at of the time union Limits 5.6. of European East-West transnationalism labor ...... 144 5.5. Generalizability the findings of ...... 138 transnationalism ...... 133 cooperation European5.4. East-West union accounts existing and of labor the 5.3.4. Polish unions: benefiting unions: 5.3.4. Polish Western assistance from ...... 131 differences ...... 185 the and automotive trait in constructionLabor sectors: common 6.6.3. transnationalism unions: limitedassistance gains from6.6.2. Polish migrants’ ...... 184 6.6.1. period:relat EU-level6.5.4. Post-enlargement a to from shift bilateral 6.5.3. Migranta hard crack to workers – nut ...... 175 the6.5.2. EU cooperation meanders enlargement and transnational of ...... 171 intra-EU countries CEE with and p employee 6.5.1. Bilateral labor treaties building 6.4.2. The Polish sector ...... 166 6.4.1. The German building sector ...... 165 IG BAU : simultaneity of national and transnational strategies strategies of national and simultaneity transnational : ...... 182 4 ions? ions? ...... 178 vices vices ...... 156 e e ...... 147 osting osting ...... 169 ry ...... 155 ive ive ...... 181 s ands
CEU eTD Collection position in the in politicalIn countries. economicposition systems exchang of their but also argued that the struggle for the realization of joint goals also argued ofbut for t joint wouldlead the the that realization struggle turning labor internationalism into a elusive distant, into turning goal. labor internationalism intereststhey and cross-bor resources the organizations’ diverted from away constituenciesorchestratedwould bring union gains to theby state tangible yearsnationalIn welfare the golden these states. corporatism, labor- of and social gained extensive better income working stability, conditions and steady labor,demand and indus offered as for thepeace latter industrial European manyFollowingWest a comprom historic states witnessed WW2, collectivelymajor working improvements in andgranted won bargain the to right during of hardsdiscontent and economic radicalization preventing periods their and Western its Europe in an aftermath, labor i assumed WW1 movements across Introduction did not onlydiffer not amongdid assume of interests commonality laborers in industrial unificationclassic their working of agenda. the The world’s of ontop people 7), belonged placing ‘champions (Logueunions of 1980: internationalism’ undisputed to reflect this early course towards an ‘imagined earlyreflect universal an(Hyma this class’ towards course International,well asSecond symbols labor as of organizat international workers’ undertakencommon activities Cross-border the in period identity. Cross-border labor cooperation is hardly a new concept. InCross-border hardly cooperation is ce concept. a the labor new nineteenth In the twentieth century labor internationalism lost most of its previous of apIn its most labor century lost internationalism the twentieth 5
n 1999: 94). n 1999: capital exchangescapital provisions within within provisions e for mitigatingworkers’for e ions to a to greations extent . At the same time, of the First and the trial products and der activities, der activities, ise between capital al Marxist writingsal Marxist o the formation of hip, they werehip, ent countries, ent peal. During mportant conditions. conditions. ntury, trade the the CEU eTD Collection balance of power relations shifted significantlybalance it relations power of favor in capital, of growi they time, embeddedness. a to period point national of Atthe labor’s same somes>’ (Turner 2003: 2) is still heard the transnationalized European still a within somes>’ is (Turner 2) 2003: ‘new EU member states’ refer to the eight postcomm the to refer memberstates’ EU ‘new r states’ are West European countries that were EU wereEU that countries European West are states’ r 7 uropean (CEE)uropean Solidarność lated threat of threat of lated ffectivecoordination ly on gentlemen’sly on rities rities between the sentatives at internationalization internationalization antly acrossantly the le, the Germans o transnational’? o transnational’? unit in the course in unit to deny to the need opean unionists, unionists, opean ions forions the 1 ticularly high. ticularly high. unions in the in unions o take over ms least ms al exchanges erns, Polish erns, Polish onditions onditions members unist unist CEU eTD Collection patterns between Polish and German automotive unionists and, more in and generalpatterns German between Polish unionists ter automotive strategies strategies proved more efficient in attracting new production to their to site. provedattractingefficient in new more production to emerge.the Easterners hesitate not Instead, not did did border cooperation union but they also made modest attempts to create to for attempts they cross-border but modest a also made platform the relocation wereperiod, of prevent German unionists bus to struggling CEE manufacturing industries, the manufacturingCEE industries, Drawing of the results of the empirical research, I explain the variI theexplain empirical Drawingresults of research, of the Westerndynamic and labor CEE through a of representatives, the interplay specificity of a current wave of the automotive industry’s expansion to the to industry’sexpansion automotive specificitycurrent of wave of the a comparative advantage of lower wages and inferior working conditions when this when working lower conditions comparativeadvantage and wages of inferior and German at Polish conflictand between the workers interest resulting directInandrepresentatives. over Turkish employee competition of p view suffer ofcooperation asworkers’ cross-border a result would interests It Europeanreplace at West bargaining concession also ar excluded sites. at GM remainedevidence however, fragi labor that transnationalism suggests, of that engine to VW’s and makingPoles thus the Westerners, the case similar pl selection site forinvestment process, mutually whichbenefic provided bargaining strategy underbidding formulationmutual of during a the A the joint to Europ local Finally, East-West thanks to in concessions. traces a it shift gr abstained and ensuredemployee from cooperation representatives the The ofscholarly departure rega thepoint argument main for assertion a is Lastly, MAN is an instance of labor transnationalism’s failure. ForLastly, failure. transnationalism’s most MAN an of is labor instance employed by trade unions to cater to these interests. employed interests. cater these to to unions trade by interests of workers in old and new EU member states EU and of and old workers new in the 8 . ial exchanges between the ial ean union relations union fromean owth of their facility owth exchanges with Polish exchanges Polish with eas in which Polish which in Polish eas sites, however,sites, cross- ation in cooperation in ation production to Poland, Poland, to production postcommunist postcommunist roduction capacities structural featuresstructural le and did not fully le fully and not did of the examined the examined of ants. Furtherants. rding the channel stra IV’s stra ms, between ms, utilize their utilize of CEU eTD Collection painful economic transition. Any engagement in cross-border cooperation w cooperation Any cross-borderengagement in painful economic transition. threats have andisinvestment to yet exte not postcommunist and relocation faced parallel ascompetition, modified the rules sites CEE of intra-company parallel production at ‘old’ and ‘new’ Europe’s locations, which however waparallel at ‘old’which and however production ‘new’ locations, Europe’s West European locations but instead European welcomedbut West theproduction afte in inflows locations new I As forargue workers employed FDI-led in the side, CEE industries that benchmarkingWest’ rounds. pre themuch Easterners higherfailure would thanbe during coordinate with to European earlier the West existed locations, threat among of underbidding had the their counterparts. Westerners CEE an interest coordinating had in with whichinter-plant in they performancenational comparisons, use of make could not the ar underbidding and in Consequently, prevailed. plants CEE between Western i.e. would costs that betheir incurred Western non-cooperationby worker costs, sinc European workingbecame aconditions concern West matter for unionists of significant labor intra-firm cost differentials. This East-West he studythis analysis of relations other union in and the industries to country configurat manufacturingas apply which mec to a causal makes possible whole, it the the developments closinggap. productivity West-East of the Similar a towards value-added shift experiencing higher a production, well-documented in sites automotive 1990s, producers.for European Since the late West vehicle manufacturing low v sectors the result of establishment in not factories did foreignregion. predictions, investme the Contrary inflow of direct initial to The FDI-led upgrading of CEE manufacturing i competences CEE The resulted FDI-led of upgrading 9 terogeneity ofand wages terogeneity can be traced to becan relation in a loss associated the with a loss alue-added products hanism identified in identifiedhanism in nts (FDI)nts car CEE to Even though the ith the Westernersith s accompanieds by n the launch ofn the creation of vious ‘West- vious CEE haveCEE been ccompanied with ccompanied with s if cross-border if cross-border s in the in nt knownnt from e it increasede it eas exposed to to exposed eas rmath of strategies, ions. ions. CEU eTD Collection puzzle and research question. It and research literaturepuzzle then discusses the on factors under question. vis was derivedan preceded analysis of from costs and transnati by benefits management’s demands. negotiationsthan throughcross-border or comp mere cooperation plant-level be achieved e orsupport a to help,goals organizational could fuller when their Europeancounterparts only g investment exchange assistance, in it for be transnationalism and outlines the main elements of the andtransnationalism the research elements main outlines of design. ratherbyaffairs, prompted than cost-benefit considerations b was it though andeconomic catered increased the it workers’ to interests their influence Ingiven at them a point. remainedfrom far time respect, the it ninete this andgoals national alternativesthe set of organizations pursued union individual by hig was transnationalism European European East-West labor however, unions, exchange to atand/or their Similar create opportunities sites. to job new colleaguesworkingusedc the advocacy stronger improve European to of West their gotWesterners Easterners that that underbid not would reassured while them, CE cooperationnational channels. cross-border resulting interest- The was union growth benot and/or when support unions’ secured investments organizational new could the transnational onto arena, seek‘pulled’ f labor them making CEE organizations regain benchmarking. the control subject international spheres over to Att ItEuropeanunionis as factor a for European exchanges. ‘push’ union West served alternative, national strategies. Accordingly, CEE unionists cooperated unionists alternative, CEE Accordingly, national strategies. This dissertation consists of six chapters. the1 starts stud with of Chapter dissertation six consists This the all, E unavailability in All was of a national solutions key variable behind 10 y sentiments. solidaristic s between West betweens West onal coordination onal enth century enth ideal: even uarantees, protest uarantees, he same time, it same it time, he with their West theirwith West lying labor liance the with driven: the y’sbackground, xtent throughxtent hly dependent on dependent hly on corporate on E unionists E unionists ts, eagerts, to or Western available to onditions onditions ast-West ast-West via vis-à- CEU eTD Collection portraying a shift from mutual underbidding to cross-border coordination underbiddingportraying base a from cross-border shift to mutual unions from their engagement in migrant-targeting schemes. migrant-targeting in from schemes. unions their engagement gains and limited Germanbyadherence national derived solutions to the union’s tw constructionSpecifically, reciprocal in rem for the exchanges scope the ofbasis interactionsmechanisms the car indust identified followed on the aconstituted The major of source chapter that concludes competitive pressure. theGerman construction in where sector, ‘import’ relations of union cheap CE the end, it To this sectorautomotive the outside reconst manufacturing valid is context. eventually Magna/ consortium sale concluded not Sbe of Opel a to Canadian-Russian relationsunion reac byemployee representatives’ reconstructing GM section thelast impact illustrates on2008-2009cooperation ec factors. The discusses the generalizabilitycontext, as of the rel as the findings well byanalytical The evidence followed of is empirical presentation an exchanges thebehind East-West cross-border in identifies the mechanism union across borders. where coop the unit, case to exchange. MAN’s failed Chapter unions bus of 4 presents cooperation advanced. most interacti union East-West was 3explores Chapter Chapter relations union at 2studies Volkswagen’s enginecr factories, where andexamining at interactions a German unions different between Polish automotive Chapter 6 examines whether the logic governing exchanges union t Chapter in whether the logic 6examines East-West Chapter 1 is followed by three empirical chapters, eachathree f Chapter chapters, followed taking 1 is empirical by 11 ained view in narrower of the tions to a to planned, tions but evance of other orm of a case studyorm of Chapter 5,which Chapter onomic crisisonomic on oss-border ry evidence. ons atons GM, d onreciprocal unions’ automotive automotive E labor ructs Polish- o Polish o Polish company. rbank. rbank. erate he CEU eTD Collection points to its limitations. It limitations. its scenarios alternative to also outlines thepoints f for European labor transnationalism and for givesEuropean furtherresearc transnationalism suggestions labor of the contribution the the The findings, summarizes concluding part presents 12 uture of East-West uture h. h. study and study CEU eTD Collection beyond formal meetings and symbolic exchanges (Marginson et al. 2004; Kott (Marginsonandbeyond et al. symbolicformal 2004; meetings exchanges strategies joint little There borders. has across relatively been industrial relations haveindustrial literature, been twosets of arguments develope question research and Puzzle 1.2. andconcepts, study data frame of sources. time the elementsimportant of case the research such the def as selection, design, explanations. the existing Fi a shortcomings to and number in points of inherent on factorsSubsequently, discusses the underlyin literature the chapter European and for the as liaisoning, the a union puzzle whichbasis serves Then provides evide it Europeanthe competition-ridden East-West context. cross-border to cooperationoutlining the obstacles main labor and highlighti created to provide employee interest representation at MNCs operat at MNCs created provide interest to employee representation (EWC EuropeanIn of Falkner Councils a a vein, only Works similar minority 2003). theEU lack the labor level, S least of not due side (Keller coherence and to on Introduction 1.1. odds? all against Cooperation: 1. Chapter The for two decades last shown is how have purs trade difficult to it Europe in unions This chapter presents the background of my study and its researchand chapterbackgroundThis its desig the of study presents my 13 progress in social dialogueprogress at the social in ing in the EU, in ing have moved g labor transnationalism transnationalism g labor d to account the for d to inition of main inition research question. research question. nce East-West for ng the specificity of örries 1999; hoff 2006). Inhoff 2006). the n. It starts byn. nally, out sets it s), forums ue CEU eTD Collection beyond nation state boundaries appear to be missing. beyond state appear boundaries be to missing. nation representatives concluding them as ‘brothers in arms’ in a in strugglerepresentativesfor‘brothers l concluding as them arms’ in of such1) presenting contracts, givesan wor interesting interpretation concessions secure at to order or their investment employment in Za future site. go mayUnions even ofagainst a the cross-border spirit solidarity. labor the of companyof their within colleagues their abroa at the own expense position representations plant opt tend to individual of transnationalized production, Europeansugg relations theunion West analyses in car industry of cross-border Hanckéa Pulignano’s zero-sum game competing and over ( when investments. (2000) new on theof other Interest-based re the detrimental to hand, impact point accounts, arguing workers on laborcompetition loc transnationalism, that at different ‘push’ both and ‘pull’ (Streeckfactors As a result, would stimul that 2003). inst structuresmerely representation of supplement national interest such a EU-level institutions rolemodest relations assigned industrial to rates employers’ at the from stem transnationalism loworganization supranational2001). Further the socialbodies in impediments (Streeck sphere given incentives ‘gothe to lack European’ same compete unions time, the limited act as ofpowerful still their successful some states allies since strat and defend statesnation Visser to rights 1997). This workers’ (Ebbinghaus economiccountriespolitical of structures remain their the in embedded despite an ofpressure increasing onnational systems interest interme On one hand,sluggish institutional progress European labor transnationalism. of 14 working classes (Silver working 2003). classes At ead of replacing them supranational level supranational and a diation, unions in Europe in unions diation, kers and management kers s the EWCs, which thes EWCs, ocal competitiveness. ocal s far asfar offer to wage s and continue targetingand ations areations engaged in for the improvement ate labor activism ate labor activism to labor to gelmeyer (2000: egy prove might est that in the eraest in that ists assertists that d and thus nceEU’s of gime 2006) CEU eTD Collection become the intensification more with of even economic strained between W links below). These factors are regarded as particularly important for regarded efbelow). as factors are important These particularly unified labor front across the enlarged EU. unified theacross enlarged laborEU. front future diminishing and investments for capacity the distribution, prospects countries heat theCEE European should into up cross-border networks production countries the neighbors. integration of Specifically, and their Eastern 2 are confined The not above laborbesetting m transnationalism difficulties EuropeanWest One setting. E in could cross-border that expect relations union collectiveWestern Europe, agreementsas coverage, onthe compared othe to levelshandGreskovitsenvironment and 2007) and (Bohle onone and low remuneration legacies, struc characteristics: skill industrialization favorable ofFDI thecombination FDI region two to mainly were the due locations. to inflows whole. a as theeconomy analysisof ‘national competitiveness’ mightEfforts of be as a strate level viewed at part the wider company accession period and Meardi (Marginson 2006). which a group constituted dominant among countries the CEE FDI the inflows to in p But see Krugman (1994) for problems related witht for related problems (1994) Krugman see But After an initial period of postcommunist recession,postcommunist states CEE quickly After period an of initial 2 , referred (2001: by corporatism’. 165) to as ‘competitive Rhodes he use of the microeconomic concept of competitiven of concept microeconomic theof use he 15 tures and stable institutional tures and stable institutional ficiency-seeking investments, investments, ficiency-seeking ten significantly cheaper ten significantly gy to restoregy or to sustain the emergence a of rTable (see 1 became attractive became urope will erely the to est European rivalry over sets of re-EU ess to the to ess CEU eTD Collection Source collective 1.Average and cove density Table costs, labor trade hourly bargaining union comparisons’ within MNCs, allowing the management to intensify allowing to cost-cutting p comparisons’ the management MNCs, within the would extend differentials locatedCEE Western and in between sites It the evesalient in thefirst round East. to was of of EU the cla enlargement base member thesis industrial support of in this of states. EU Voices old social relationsto standards pra‘newcomers’a and danger industrial as relations scholarscountries, and many industrial practitioners policy : Eurostat (2009); European Commission (2008)European Eurostat : (2009); Commission In view of the considerable wage and labor cost gap between CEE and West Eur betweenInconsiderablegap and wage of and labor CEE the West view cost in selected Westin and countries CEE European Slovakia Slovakia Lithuania Hungary Republic Czech Poland Spain Sweden France Germany Belgium Country 2,16 1,32 2,86 2,80 2,95 14,43 23,12 22,52 22,90 n.a. Average hourly 1996 2006 2000 2005 2000 2006 2006 2000 2005 2000 2006 1996 labor costslabor in euro in 5,33 4,21 6,34 7,14 6,03 15,77 32,16 30,25 27,20 31,58 16 36,4 21,4 24 24 18 16,7 80,1 8,3 24,6 49,3 the workforce) density (% of (% density Trade union Trade union 30,06 13,2 18,7 21 12,7 15 76 8.6 21.5 51,5 viewed the CEE viewed ctices, or even the very to ctices, became particularly scope for ‘coercive 48 18 36,5 43,9 43 81,4 91 95 63 96 imed that labor that imed cost coverage (% of of coverage (% the workforce) bargaining bargaining Collective ressures at 48 11 32 49,6 40 83 92 95 63 96 opean rage CEU eTD Collection popular fears of job outflow to the East (Bohle 2008; Lindstrom 2008). the East to popular (Bohle 2008; fears of outflow job but also potentiallybut divergent interests were expected workers’ spur to (Vaughan-Whitehead onlyworkingNot managementconditions 2003). labor-hostile str and sites exacerbating‘raceindividual the to bottom’ a pan-European original)emphasis in that conclude standards practicesacross enlarged M and EU relations industrial made the Europe-wide at cooperation, be the union EUplatform it leve for or company between workers competition and Theold new of expectation intensified from member the question possibilityreconciling into states put of their i intensified after attracted cases at public relocation major that T locations have European widely West movements. discussed been within labor foll the West in low-wagewellto as disinvestments potential as countries 2006).fr However, capital’s in stemming an power increase bargaining been EUtransfersrar member new from to relatively old states have (Telljohann 2005). the industries’ As for comp wages asincentive their conditions retain to and working inferior lower andwhereas FDI workersfrom directly CEE relocations profited inflows European West many laborers keep struggled to manufacturing sectors, te 04 nagmn bt eaebts h soe n ntr o r of nature and scope the exacerbates market integrated Europe’s both within competition enlargement 2004 ‘the and processes ofEuropeanization labor regulati of the market institutions Drang nach OstenDrang nach 17 and , recent studies show productionthat , recent studies hetn t sal h further the stall to threatens tention in ‘old’ in Europetention raised and nterests and creatinganterests e (see e.g. etGalgòczi al.e (see East-West rivalry. In rivalry. East-West in regardand wagesin to om a mere threat of exit aexit mere of om threat production at home, production and thus had thus an and owingrise of CEE the arginson (2006: 12; l. Thel. differing etitive advantageetitive on’. on’. hese debates egime EU ategies, CEU eTD Collection be conducive to the emergence of transnational union cooperation.be workersemergence conducive Given union the CEE of to transnational potential in cross-border union liaisoningunion cross-border at the in potential plant-level due the social to their opposition to the initial to rejected versiontheir so-calle ofand opposition the act the the EUflows within section (see backed 6.5.4).unions CEE European count their West Internalagainst the Market, onservices the in aimed draft which Directive of col organizing cross-border each in involved the and in process became other Instead,declarations of information exchan solidarity. extensive launched unions activities presented were activities their joint below, limit not European andlaborCEE As suggested West organizations. aby overv brief their West Europeantheir West counterparts. capacities and (andaway takingWestern remuneration levels i productive role of a77) the (Meardi a 2002: horse’ enlarged in ‘Trojan EU, downward pr putting assume to plausible that more lower is comparative advantage it wages, of Euro East-West that thedifficulties, onebackground expect these should of theKotthoff to problems besetting (2005) add only labor East-West transn lackinglinguistic competences Stirling by and depicted intercultural heauthors labor East-West and disc risk of conflicts other distributional that delegates. Such a however, view in courseand events, EWC at CEE evident all not of is the weaknessto confederal structures. CEE union Simultaneousl of and sectoral social dialogue and Trade the UnionConfederation (ETUC) workings of European by It EU-levelauthor be refers noted the must that initiat primarily to At the confederal level, for example, CEE and West European and CEE At the West example, confederal for labor level, joint Yet contrary to the pessimistic outlook, transnational outlook, emerg Yet cooperation did the contrary to pessimistic 18 ed to official dinnersed official and to symbolic ives such as the Europeanives such and Tully (2004) and and (2004) Tully d country of origin d country of origin ndirectly jobs) from ndirectly jobs) they will assume they thewill at liberalizing service ationalism. Againstationalism. pean context will not not pean will context ization between ization West iew of union uss. Unionists’ Unionists’ uss. y, sees more he lective action. lective action. ge,assisted mobilized mobilized e between e between essure on pointing erparts in erparts in ’ of the CEU eTD Collection principle, even though it would give temporary advantage to CEE companies andwould give companies s advantage CEE to principle, even temporary it though protests in Brussels (2005) and Strasbourg (2006), which Brussels a protests signaled in the and consensus Strasbourg (2005) (2006), prepared the ground for their future cross-border cooperation (persona cross-bordergroundprepared futurefor the their was anti-D followedelaboration common position OPZZ by2006; of 2006). joint The systems condit prospectsconvergence would close of for working the upward weredestruction Europeanalso a aware social of standards West the that KOVO EU OS old 2006; memberwithin EPSU 2005) in states’ labor (Śniadek markets unfair workers theirdecision fellow arguing by want introduce not to they that did wishing offer atindividuals lower to West prices. their the services in CE setups, and German differences would become with Polish industr acquainted between Directive’s by provisions contested the European most Parliament. desired Europe’ofEuropean the ‘social shape rej to over and labor led the (Kahancova The German metalworkers’ 2007). SI1 2008; union recruitmentconcerningadvicecollective and systematicbar providing and respect, Belgianassistingparticularly this in were active unions European ofsupport in their count activists less experienced CEE labor 6), (Kahancova2008: of which unions a training initiated CEE activities took form Polish unionists at Polish responsspeakingdistrict, officer Berlin-Brandenburg-Saxony at its German the of establishment fromto the E the same prior unionists companies A separateinformationseminars and consultation. would bring toge of series IG Metall The sectoral level also witnessed ‘vital bilateral union networking’The ‘vital bilateral levelbetw sectoral also witnessed union ’s collective bargaining strategies, as well as EU bargaining with ’s legisla collective strategies, IG Metall ’s Berlin-Pichelseemeetings, training center. During the the Poles 19 IG Metall ible for organizingfor for courses ible their CEE colleagues their in CEE l communication with with communication l gaining techniques erparts. Swedish, Dutch Swedish, erparts. nd collective bargainingnd E unions justified their justified E unions ection of the hired a Polish- ther Polish and ther Polish ions in CEE (B1 CEE in ions tion on employeetion WCs, which WCs, ial relationsial een West and West een mong the mong the competition competition elf-employed by West irective . They CEU eTD Collection profit from these their in information presence bodies, they using obtai the turn, closebetween helped links develop particularly Cross-Borderwithin (Gollbach Bargaining Committees and Schult Collective 2008).Maria Sectoral-level wouldals Scholz German and unionists CEE meetings of line between Frankfurt and Cologne (Kahmann 2005; see line betweenFrankfurt Cologne section and 6.5.2). (Kahmann 2005; laborers of Polish employed of anmonitored workingconstruction exconditions at the In joint and Germanamongunionists 1999, for Polish instance, migrant workforce. CEE would engage and unions CEE West projectsat upholdingbilateral aiming in w m employmentworking flexibilityBeyond the time (Neugebauer and 2008). theirin countries focusing and on tempor projects initiating cross-border Memorandum information on collective 1999, they in bargaini exchanging been have Hungarian, labor Since Slovak so-called the activists. conclusion of and Slovenian the W management and achieve desired improvements in work and desired organization workingmanagementachieve condit improvements in and local with company Theymanagement representatives. al negotiations in rarelyInstead, CEE (2004), 2005). as Meardi by reported (Kotthoff documented been EWCs, where statesope within continue socialize new to and EU old member creatingdifficulties at in theirunion firms’ subsidiaries a (Tholen e German would often expe councilors intervenewhen works their colleagues CEE I (SI1 ofaout eleven fourteen result of unionized which 2007). became plants at Polis instance, aimed a that launched workers at project organizing at their subsidiaries.organizations CEE The companies’ Woodworkers Swedish EuropeangrowingThereevidence West of offered assistance unionist is by Last, but not least, East-West union cooperation union seems beLast, to root taking wit least, not East-West but 20 IG Metall ’s Bavarian district and’s district Bavarian Czech, t al. 2007). Unionists fromal. 2007). Unionists t h Ikea/Swedwoodh as plants, ary precarious work, so circumvent the local so n from the central s in establishing in s labor etalworking sector, en 2000). These, in n hostility has n a vein, similar age standards ’ Union, for ’ Union, rienced hin MNCs. MNCs. hin ng results results ng o take place unionists unionists press train ly iener iener ions ions CEU eTD Collection post-EU enlargement setting runs counter the predictions of earlierpost-EU enlargement setting runs the schola counter predictions Available transnationali explanationsoflabor 1.3. education. argument his the that claiming formerHeby ha substantiates ‘domestic’than sector their counterpartscooperate in borders across which the organized have basis production ona is process transnational a higher importanceof To a begin authors ofwith, number structural underscore the Bieler employees that cross-border repre posits activism. (2005) union explanations. I transnationalism. respectively sociali as them to structural, refer lab besets of for useful approaches accounting in European East-West can that In EuropeantheI West recent onthe a topic studies context. section, this review of rivalry. East-West serve at subsidiaries CEE r improvingEWCs as for a working tool conditions atthrough companyevi Meardi’s Overall, headquarters. intervention direct and across different national contexts. The emerged such fact links contexts. theand comp in that across national different settingaof undertaken cooperativeat variety featured al initiatives question: question: I Hence,as an puzzle. my interesting in empirical dissertation ta The literature identified a numberThe forcoo of literature a cross-border preconditions identified union Already this brief overview of union interactions shows theAlready that East-West of interactions brief union this overview why and under what conditions do West cooperate each do unionists with other? conditions CEE and why andunder what 21 sm ckle the followingckle the research zation and interest-based and zation l levels of union organization organization union levelsl of s, such asandhealthcare such s, senting the industries in the in senting industries ve a longer and more ve rly writings andrlywritings serves dence that suggests atheran arena than or nd identify three nd identify three propensity to propensity to European variables for etition-driven peration in CEU eTD Collection production processes across borders the coalescenceproduction doesprocessesentail across not of lo the creation of a front unified labor transnational repre union countries the might coherence further of increase of practices HR common si thethat Marginson imposition (2004) across argue al. 2004). Similarly,could as serve et a partner (Marginson bargaining responsible forthe division management presencea Eur all separate of interconnectedness countries. located between sites A different further i in and activities coincided of the organization resul firms’ cross-border with samplebyauthor, examined transnational the presence active the la of Kotthoff’sstudy (2006)capital offers similar from national positions. most importantly,intense globalization; experiencewith t lost they have have relatively far been so rare. theas the instances world real in a of politics of union surprise cross-b that dance these to them By two limitations, the recognizing management’s to tune. might well it spur rivalryrepresentations’between interests; indivi regardingworkers’ allegedassumption A mer commonality the interests. of addre cooperation the structuralist to theories second emerge. to The objection be taken for to not factors present additional that place have suggests companies The such that of fact an are internationalizing. labo ‘explosion’ proportional cooperative unions’ t initiatives, witness a of proliferation Fir suffer But explanations tworelated limitations. the structural from between about that brings thestructural labor sites interdependence vis-à-vis the management. the management. 22 dual production sites and sites force dual production cooperation, we should cooperation, conclusions. In conclusions. the EWC cross-border union union cross-border bor representation bor opean operations, which opean o the speed at which Arrowsmith and Arrowsmith he ability confront to calized employeecalized ting degree high of mportant factor was r has transnationalism sentation, prompting order coordination coordination order e similarity of st, if it was if it onlyst, the sses their implicit sses their implicit tes in differenttes in it does come not it CEU eTD Collection by Kotthoff 2006), home country unions might be tempted to use tempted country to their mightby superiorunions be of home knowledge Kotthoff 2006), supported an s dominated employeeby Forest protest at German unionists VW In2006, fortheVolkswa interests of instance, home country are secured. sites company overseas Alternatively, affairs t against they offer locations. Lecherchannels. As equally shown by Case evidence disillusioning. study seems nati given relevant all transnational forums through union they that data obtain factsurprising in first,informed’ but the suggest that ar ‘best at unions as results half cited This Marginson Kotthoff et (20-30%; by common that al. 1998, 2006). basedfirms),companies Germany, France whereas in the Nether at or Irel rights,codetermination enjoyed from such the minimal UK as those or Directive’s incidencethe EWC EWC enactment, was the at highest companies ‘se to might unions be reluctant country Other suggest, however, studies home that their research counterparts countries. from other Empirical th shows in that cooperation. genuine 64) be asthe should cr viewed diaspora’ a(Kotthoff of 2006: instance dominated byaroundcountryas labor EWCs their the home role representatives, way. ident although ain the sociallyresponsible According author, to no common onshapinghandaffairs information and oncompany restructur insist transnational overseas bringthe locations, concernsprov central of upthe to management otherpriinterests country of use countries located sites unions their if home in KotthoffLecher rep might (2006), in and et be effective al. such (1999) very bodies was An a interestingby developed the structural of argument variant dominated company’s ofactivities As from EWCs origin. unions countryby the of 23 heir assistanceheir when only lands, EWCs were EWCs onlylands, e interested not creating in and (in 50-60% of e first yearse first following uthors analyzing the uthors ide them with first- ide with them gen’s EWC oss-border vilegedaccess to whose workers onal access ite in Belgium, in ite ‘spokesmen of ‘spokesmen of (1998, as cited (1998, as ity formed is ing processes ing processes claimed by resenting the resenting the rvice’ seem CEU eTD Collection bankruptcy for BMW, which owned the brand. They also feared that lower remuneralso owned fearedbankruptcy They the which BMW, lower that brand. for management’s pursuing HR canat enterprises uniform be decisions found the strongest with different et EWCs countries. al. (2004) Marginson show that infl a of number the structural Recognizing of researc approaches, limits the between cooperation of asunion socialization rep a result labor emerges betweenthat (seeGerman 1.4.1)countries Germa resembles section and CEE dissertation,giventesting givenspecial this andbe in attention will tha economicstandards interesting Whittall’s clai its andposition). secure case,British colleagues the spokesmen up the to order Germans became in theirwith foreign interest counterparts exchanges when their in own lie such stronger might be share home across ready to country unions information borders Germany’s a BMW exert plant downward at onsocial standards pressure at m the UK used subsidiariesand might the by inferior be conditions working negativeargues possible with concerned consequences the that former were their to unionists BMW Britishassistance colleagues a German by offered a When exception. (2000)aIn notable article respect, Whittall’s is this from stems the tha unions fact thecountry role The of ambiguity home related to try understudies for explain what they to are willing conditions support their to rolereferred the as dispute German in ‘fifty-fifty the to unionists’ Belgiansaved, representing anACV-SC but interviewed car unionist the at the Germanincrease Wolfsburg Forest production The volumes plant. Belgian hadhowever, announcedVW concerningnegative a the factory,pl decision Awhich closure day few with capacity was reductions. due threatened serious to 24 union solidarity’ (BCH 2008). (BCH 2008). solidarity’ union m needs furtherempirical needs m ccounting for the t the ‘social gap’ ‘social the t between resentatives from resentatives location was eventually location C federationC ironically s. This suggests This s. that t Rover, the author t policies, whichpolicies, at the hold the firm’shold social of Rover’s s (Ins concrete this ny and the UK. nyand the UK. anagement to anagement to hers argue that hers eign colleagues. s befores the and cooperate and uence onthe ation levelsation an to t fewt CEU eTD Collection pos ofrepresentation the joint and prospects the increases formulation for the strengthens role coherence chair the of transnationa internal the EWC of Hauptmeier the onthe that otherpresencea (2008b), charisma hand, of suggest and Greerof(Gajewska also Hauptmeier 2008a). aGreer see identity common 2009; Repeated of values common turn, the led internationalization in to and interactions, the c and socialization’ more turn developingrelationship, in ( into institutionalization ‘eachclaims that or dispute action brought the workers toget successful Analyzingcross-border recent action. cooperation initiat collective eachcompany had atbefore representatives known which the other merge labor relatedtransnational argue mergers and (2008) measures, restructuring Erne sameworker featured networking. study time union Similarly, his active in on union representations continued to forge concession deals forge the local to with manageme representationsunion continued concession their transnational demonstrates active enga alongside that most with EWCs, Forumstrategies Employee por (EEF), at GM’s which often European is We necessary Pulignano‘s competition. account override (2006) inter-plant of anddependent net socialization that empirical evidence variable. Second, shows (earlier) a is tautological cooperation, which element the cooperation that suggests argument; of into circularity it emerge int along and cooperated they trusted knew each ‘they other’ because the lines: the arises question got of the firstA in whyplace.the together workers argumentsproblems. First, without But wh are not again, the socialization collectand together enabled (2008: 118) each claims ‘brought that dispute workers employer restructuring ontransnationally such relevant issues as or invest statement that the that blurs independentstatement and the 25 ives at GM, Gajewska(2008) n explanation formulatedn explanation her and strengthened her the trayed as one of the astrayed one of itions ment allocation.ment l union union l s that only that s the s as a result of ass a result gement, plant-level gement, plant-level st Europeanst labor s’ responses to two two s’ to responses roduces an tic union leader union tic in via-á-vis r witnessed r working not do 2008: 116).2008: en Gajewska ive learning’, nt, which which nt, and the reation reation CEU eTD Collection based approaches. Their classic formulation traces backclassicbased the Their writi formulation to traces approaches. bargaining and/orinvestments the over government’s and jobs polic industrial serving regardparticipant be as able activity own must imm to its such production cuts and plant closuresrelativelyproduction cuts and wasbe evenly plant ‘distributed’ (1975:an 9), solidarity: ‘each exercise transnational as Ulman by pot in put the competitive pressureas effort a joint minimize exerted to onnational the supranationalFrom perspective, cross-border arena. this coordinati union ar theseoriginating concerns, boundaries; unions beyond address to the state ofthe workers activities, arebusiness transnationalization increasing trade of economic groups, pursue their other like unions, interests interests the InUlman (1975).cross-bordercooperati analysis theoretical of labor his accounts labor Finally, be group transnationalism’s can third r of the nor the ofcooperation. subsequent cross-border development socialization alone explanations, the case can the structuralist explai of conclusions.essentially As a Hancké’s resul (2000) repeats pessimistic Since no union enjoyed a privileged access to the company’s privileged enjoyedSince no union access headquarters, the a to interpretation undertakencooperative initiatives of recent theby West aspower (Ulmanwhich economicbe coll 26), ‘firms’ countered’ 1975: such might ecconsider political labor to alternatives – national transnationalism activis cross-bordertransnational’ for potential assess their to the self-interest’.further enough i not author is it at that The argues unions’ look to Eager deprived andalternat time the at attenuate threats the to same of Building on Logue and Ulman’s arguments, Fetzer (2008a)anBuildingLogue interest arguments, and offers Fetzer Ulman’s on 26 m. Instead, one also should m. ngs of Logue(1980) ofngs and onomic institutions through institutions onomic ly subject to pressures ly to subject European GM unionists. European GM unionists. ive channels, employeechannels, ive ediate interests orediate ultimate n neither the emergencen neither t, it seems that just like in in like seems that just it t, tween all locations. all tween on, Logue assertson, that workforces rather than workforces the danger of ential national eferred to aseferred to interest- e compelled to enter to e compelled on can be regarded ies. members. With members. With ncentives ‘go to ective ing CEU eTD Collection pressures, demanding equal distribution of restructuring burdens and future i of restructuring and distribution pressures, future burdens equal demanding relocated further to the East, but three sets of arguments suggest three but relocated thi that sets of thefurther East, to arguments constituency. each theThrough interes to engagement, however, catered transnational union their representatives their joined forces sites opposition in from different that ‘with an indefinite number of interactions, cooperation can emerge’. emerge’. cooperation can ‘withthat an of interactions, indefinite number Prisoner’s followed Dilemma. Consequently, (1990 Axelrod’s interactions their playedthe gamewas a inf any the not one-shot, that actors longer rather an but long- thea rule‘beauty Through of of the the introduction day. contests’ became whenthey turn since inter the cooperative of abeginning took the decade, more 2000s wasforwhen introduced the adversarial competitive benchmarking the 1990s, in presented Union relations(2000) at the same section competitive account in 1.4.1. c cost advantage. sites’ rounds view cons during in they of their allocation product be would not omitted coulsameBy Europe’s token, unionists such as CEE to the an ‘old’ extent plants. pr as European cost reduction aWest result, company-wide localities; atworking my ‘new’in conditions and study. factories Europe’s Wages we the Europeanlocations, East-West which in the hold however in period not did exa context company’s restructuring evenly cost-cutting and ‘distribute plans are It threats that Europeanassumption transnationalism. rests on the labor The and seen empirical above could be as extension theoretical theory both Still, it for seems the emergence of Fetzer’s that argument account Still, cannot To be sure, some authors argueg capacities mightTo beauthors be sure,production CEE that some 27 to the management’s to d’ between all production d’ between all production ograms did not affect not did ograms them emanatingfrom the s is rather is s the in unlikely re those at to inferior nvestments. nvestments. initely iterated :11) anticipation term horizon, horizon, term first time, but but first time, East-West East-West d expect that that d expect radually of Hancké’s ts of its own ofts its ompany were ompany -plant iderable mined mined CEU eTD Collection propensity to relocate from CEE corroborates the claim corroborates the that CEE t propensityfrom the relocate to of‘new’ Europethe ‘old’ ofcountries economic high- andand low-wage integration It forempirical between the new account might to exist them. also seeks the explanatoryapproaches, need recognizes evaluate their it to power informedConsequently, is research thesis the by ab this while in the documented use the countries East- in high-wage might little European be of West set amongactorsaccounting coordination cross-border from for homogeneous cooperative mechanismefforttheycausal behind unions’ a specify donot The literature above twosets of the existing conclusion overview of offers the differentbringarepotentially approaches re factors up that beyond sites Fetzer’s of the scope theory. spread hence states EU and and old member manufacturing new across locations in l 3 ofcosts ready gettingproducts Europeanback markets. the West to be transfer offsetfurtherresultingeast production would hi by from the ‘new’ to commitment Western firms’ Europe. long-term Third, possibl (R&D) researchwell the of establishment and facilities development for manuf CEE operations characteristic and higher production, value-added towards shift 2005). Second,high more costs (Greskovits a skill-i continuous initial due oras long-term horizon the sector those automotive in time a have usually medium First,foreseeablefuture. literature as claimed the by sectoral I owe this remark to HR manager at MAN Trucks fact Trucks MAN at manager HR to remark owe I this ory in Niepołomice, Poland (MMN 2008). 2008). (MMN Poland Niepołomice, in ory 28 , capital intensive investments such investments , capital intensive levant for labor transnationalism, transnationalism, for labor levant hreat perception washreat equally not perception 3 gher and logistics transport The industry’s low across theacross region signals West European context. Europeancontext. West and to identifyto that and links reality resulting from reality from resulting s. Second,s. the theories e labor costs savings e acturing as sectors, tings such as the ove-presented s. First,s. while ntensive eaves CEE eaves CEE . . to their to CEU eTD Collection Case selection1.4.1. Researchdesign methodology and 1.4. type pressure following using of downward the mechanism: wagesconcessions Theworking mi conditions. and employer regarding secondary locations competing byindividual and investments production over capacities off located inter-plant onsites imposed to different in benchmar thanks countries can industry,arguescooperation. b author cost savings the automotive in that The t Onand thewhile other analyzing structural of trends hand, market features asserts competitive dynamicscar (2000) p its that Hancké sector, (Anner 2003). are EU unions old member strong states, c automotive transnational enough make to greenfieldcharacter. leas not early andLast, but of both a 1990s, brownfield has that also a absorbed theeconomies sector particularly of leve CEE high competetransnationalizedfew industry, which onspatially in major MNCs l sector lookingunions, Itparticularly i at might the automotive be instructive. While assessing forWhile cooperation between W cross-border the potential hmevs n n naoal psto i te et on o mdl planning’ otherwis model of might round they next since the in suit, (Hancké 45). 2000: position the unfavorable follow an in to themselves but alternative no These had standard. minimum a as company the in plant other every to next the in then, was management) (for setting favorable> CEU eTD Collection between Western and CEE car rivalryabetween degree high and betwe and of plants CEE Western representative new from states. EU and old member the leasttransnationalism, emergence of to conducive betw cooperative links From perspective, a theconstitutes critical car this case for sector the af ‘old’ to extended high factories. Europe’s implies This potential favorable’ cost-cutting can fir locations, at which be the measures in launched CEE time bebe this that chosen will will production sites theby managem t same Westernrestructuring Europe in mechanism the as 1990s; in processes drives following‘eastern the European wil enlargement’ car industry the of aexert Europeanandwages downward non-wage onWest provisions. pressure be also will costs at but theiradvantage new lower locations, labor of only not the will invested CEE that in MNCs could automotive that expect exploit belocations amongFollowing shared. Hancké’ the ‘investment pie’ to which is has CEE launchremained only the in group of of the car enlarged production unresolved, Given1990s. growingrelated the that structural sector’s problems to ove has many created European in that the resembles West a ways setup automot comparisons performance(Fetzer of 2008b). and costs But the car industry’ cutting accompanied the sector in by programs the were first time for EuropeanWest the the i.e. 1990s, and in in periodrestructuring unions cost automotive when benchmarkingHancké at work the competitive mechanism exploringby t shows member states. In 2008, over 6 million newIn leftmembercaroverplant the vehicles country’s states. 6million 2008, Germany theGerman biggest is among producer automotive unionists. automotive To check the validity of the above argument, I focus on relationsITo checkbetweenargument, above of focus Polis the the validity 30 East-West European labor East-West explicit transnational explicit inclined to use inclined to to them or distributive conflicts or distributive en their workforces.en rcapacities had ent as ‘most l be based onthel s expansion to CEE CEE to expansion s ive landscape the of een labor he only difference st placest and later The costs-cutting s, whiles, over 700 s reasoning, one reasoning, s he activities of he activities comparative old EU old h and - CEU eTD Collection below). In Poland, car manufacturing represents over 10% of the industrial pr In industrial represents 10%below). of over the car manufacturing Poland, viewedproduction,national the economy’ sector as ofpillar ‘a the (ACEA is FDIcomTogether countries, of the absorbed bulk other Poland German with Visergád countri ofFurthermore, interdependence abetween the level is two high there Source: Germany 2008 2.Automotive in Poland in Table and production manufacturingthe total (ACEA 2006). production production for also accounts carcomponents ar ofGroup, car and which in the share states andSlovakia belonging Republic – other Czech thepostcommunist so to componentIn firms, employed sim is respect, Poland this 200,000 people. nearly vehicles and, togethe car million the country in located 1 plants produced nearly jobs2006 and directly 1.4million manufacturing indirectly related t in or output 19% share suppliers cateredautomotive the final needs With to assemblers. i of vehicles motor total in production production Share cars of passengers’ Total production of vehicles motor Direct employment PAIiIZ (2009) for Poland and(2009) Poland VDA for for PAIiIZ (2009) Germany Dimension Dimension 31 6 ,045,730 Germany Germany 5,532,030 756,500 992,000 188,000 864,200 Poland 2006; see 2006; Table 2 oduction. In oduction. 2008, es’ car industries. -calledVisegrád n Germany’s r with o vehicle ilar Hungary, to ound 10% of ound 10% of ing the to CEU eTD Collection postcommunist regionpostcommunist of inves (Nunnenkamp 2004). German companies Nearlyone-third plants in the two countries are presented in Table 3 below. are the twocountries in plants Table presentedin bargaining based on the mechanism presented earlier in this section. this in mechanism presentedbargaining earlier based on the The labor Polish-Germby cost differentials. and wage considerable member 2008). states (Samar asgroup the Westernprime neighbor importer product of serves these Germany to group the among largestconstitute exports (PAIiIZ Polish amongFDIdestination ca (AHKAs a from originating result, Germany 2004). chose thePoland made most car and these which building machine sectors, industries those manufactured European The at GM West of characteristics VW, locations. subsidiariesresult, their Polish qualitya produce vehicle production. As by awhich s orientation was and industry export characterized CEE, inflow to Germany late heavily of wave during 1990s, the t second also the invested in but Poland in I at three In relations union automotive examine context, the Polish-German three and engine All VW’s MAN unit. significant bus capa firms GM have division, to cost comparisons and andto highly sites CEE concessi thus between West to conducive Inmerely setting (Blöcker chosen Poland at effect, wa €4.80 in 2008). and the Jürgens theIn car the industry costs in sector. 2004,hourly Germany, labor €34 in exceeded manufacturing to observed whole relation was in as (cf. only a a not 1), but Table In the period of the analysis, the countries’In interdependenceanalysis, was structural of the the period 32 an cost gapcouldan be cost s amongs EU the old 2006), while Poland’s 2006), s and parts similar to parts to similar and s hift towardshift high- r and car partsr and and MAN’s lso very clear in verylso accompanied cities in cities in companies: but stood stood but favored s exposed exposed s on ting in he carhe CEU eTD Collection Source: unitsMAN bus GM/ Opel plants VW engine VW, German of 3.Polish GM and MAN Table subsidiaries and Company Company 2011 forecasts based on ERM (2010).2011 forecastsERM based on Corporate press sources and the author’s interviews with local union repres sources author’s local press Corporate with union and interviews the Starachowice (PL) Starachowice (PL) (PL) Poznań Salzgitter (GER) Gliwice (PL) Eisenach (GER) (GER)Rüsselsheim Bochum (GER) Polkowice (PL) (GER)Chemnitz Salzgitter (GER) Subsidiaries in Poland in Subsidiaries and Germany and 900 (1999)(2007) => 2,400 850 1,400 (2006)(2007) => 0 * forecast (2011*) => => 2,000(2009) 2,800 2,000 (2003)(2007) => 2,800 1,800 = > 1,500(2011*) 7,000 (2008)=>(2011*) 6,100 3,800 (2011*) 9,200 (2004) => 5,000(2008)=> 1,150 1,000 6,300 Employment change levels/ 33 Unionization 40 % 30% >90% 30% 80% > 90% > 90% 80% 83% > 90% entatives. rate CEU eTD Collection by supranational union organizations, such as ETUC or European Industry Federati or European such as ETUC by organizations, union supranational 4 in cooperation union for potential isa thatthere target coordination wage European of thebackground striking. isparticularly actions and declarations 5 interchangeably. Cross-border– union conceptuali 1.4.2. cooperation cooperation (cf. Bieler 2008a, Bieler 2008b). ItBieler(cf.2008b).also for characteristic Bieler sta 2008a, is interest cross-borde instance in writings, neo-Marxist in union which take resistanceauthors believe it to labor that often and is 1980s portrayedas codetermination an attack mechanism rights onlabor the As the European in economy neoliberal scholarship. transnationalism turn coordination. as exerciseslabor cross-bord and in declarations organizations non-binding however,(Fetzer time, At the same interpret they 2008b). often superfi aperiod transnationalthat longfor exchanges remainedphe an union had understudied on the document topic of activities, perhap the union broadest range possible the instances rela the exchanges of industrial in union cross-border depicted I upthethan concept constructing arbitrary built definitions, have by The ‘cross-border i above the that suggests term cooperation’ discussion union its used the abused, need and even sometimes clarify which to highlights only taking EU level. root at the concerted that which convince opinion public resistance to aim agains the EU-level coordination of wage bargaining belongs t belongs bargaining wage of coordination EU-level c ‘transnational/ terms uses the dissertation This Despite a growing scholarly interest in labor transnationalism, cros laborgrowingDespite in transnationalism, a interest scholarly 4 has not yet has not relations the R industrial in literature. conceptualized been 5 A similar problem arises in relation to the normative aspect of the the Aproblem normative to arises similar of aspect relation in Erne’s (2008) analysis of national wage bargaining bargaining wage national analysisof (2008) Erne’s this sphere. sphere. this should ross-border cooperation’ and ‘labor transnationalis ‘labor and cooperation’ ross-border o the areas in which the discrepancy between union union between thediscrepancy which in areas the o s clearly illustrates this gap but the author never author the but gap this illustrates sclearly 34 take place. This normative tone appears for place. take normative This zation tements and press releasesand issued tements systematically reviewing systematically reviewing cial contacts cial between t neoliberal is policies t r liaisoning as givenliaisoning asr s-border labor er union tions literature. On tions s in view in s of the fact since the mid- meaning. Rather labor results against against results ecent studies ons (EIFs),ons m’ theless claims claims theless s, manys, s widelys nomenon CEU eTD Collection Relations officers. I also analyzed pan-European la pan-European analyzed also I officers. Relations conducted and OPZZ, and Solidarity confederations, 6 and of strategy. pursuit a the adopts actual Ha joint dissertation This the third group are regarded as instances of transnational union cooperation union the group as third transnational areregarded instances of onlyeven dissertation documents three exchanges, all union this though types of direct for allocat investment plant-level implications and/or bargaining falling theinitiatives cluster third commitments within concrete involve the first two typesof principle venturesWhile in coordinate result in might the ofbasis secondary evidence and sources primary and June 2007, I studied archival materials documen materials archival studied I 2007, June and metalsec and construction in the unions German and I myIn thesis, MA 2010. September and 1998 January commitments: the actions growing and of amount transnational resources c increasing to devoted three into activities categories denotestages that varying develop of I reviewed all issues of issues all reviewed I binding declarations of solidarity; binding declarations of solidarity; protest actions capacityarea and bargaiallocation, collective sharing product of 2 - 1 - 3 - organization of industrial relations systems in unions’ home countries etc., as well home of countries relations as organization industrial systems etc., unions’ in education and training projects, education andtraining transnational contactstransnational transnational cooperationtransnational To go further, a distinction should be should madeTo goa between distinction thewillingness mere further, t vis-à-vis European Journal of Industrial Relations Industrial of Journal European the employers, as well as the pursuit of a common strategy the ofthe in pursuit a thewell common employers, as as , including information exchange, includingaffairs, the onsector company information or , encompassing ad-hoc actions support, joint such as strike involving joint programsinvolving andjoint seminars; bor mobilization against the draft services Directi services thedraft mobilizationagainst bor ting transnational links established by thetwo big by linksestablished transnational ting tors, relying to a significant extent on primary so primary on extent significant a to relying tors, a number of semi-structured interviews withI their interviews semi-structured of number a conducted a comparative analysis of relations betw relations of analysis comparative a conducted 35 6 , I, cross-border clustered have labor and and Transfer Transfer published in the period between between theperiod in published ment of transnational links, transnational links, of ment ncké’s (2008) outcome- ncké’s ning. ning. ion patterns.ion As a result, on labor’s side and have d action, the . . activities from activities ross-border ross-border o cooperate ve. ve. urces. In MayIn urces. gest Polish Polish gest as non- nternational nternational een Polish Polish een CEU eTD Collection particularly heated due to the significant labor cost differentials theparticularly significant labor cost due heated to particularly strategies bepressure s will unions’ on plant-level between 1998 and mid 2008. The choice of the starting date is not incidental;between as 2008. Theand not indicat is mid choice the date starting 1998 of Timeframe analysisof the 1.4.3. would theirbethe latter activities case, wrong was label to the it or the actors’ to r thewhether external factors to failure due the was It hindrance howe encountered determine, not difficult to is theby was unions. involved of the referring joi constructs results the likely a to counterfactual coo to Byinferences. equality putting an between ‘attempts sign ofcooperation‘cooperation’ failed might cooperation as or instances classify be observed. onthe otheractions; actors’ hand, Second, cannot intentions, inquiry onlyFirst,of examine a can arguments. observable positivist i related of transnational cooperation, which conceptualization union be can when CEE labor markets tightened when 2007). labor CEE Meardi (cf. markets member overand states began that decadepersisted the examined narro to that in the similarity,period in that by output characterized East-West the and subsidia CEE West firms, parallel at launched its examined production many orientation andexport efficiency-seeking. enterpris As a result, strategies the investment lateintroduction, t CEE witnessed 1990s in a MNCs’ turn in This dissertation examinesThis undertaken cross-border initiatives union the in 36 alient. The rivalry bealient. The should between new and EU old between new perate’ and ‘cooperation’,perate’and one cooperation. nt union actions union if ant certain the impact of competitive the impact eluctance to coordinate. If coordinate. to eluctance lead to false lead causal to es, the three including mplications of actors’ mplications w only after 2006, ries. One expect can justified by two sets justified ing attempts ofattempts ing period owards ed the in ver, ver, CEU eTD Collection project coordinators and laborproject at the activists level. sectoral and coordinators Additional sourcesMethodology data 1.4.4. and focus of laysproject. my the analytical beyond the 2008-2009areto declineexample Chapter presented in briefly 5at the even andconstructed’ unions’ reacti 9).(Gourevitch CEE 1986: West For though reason, this crumble ‘when the time ones and is and relationships new it old goals; their very the temporalconsiderablyreshapingactors’ behavior, both change createearly to circumsta exceptional 2008-2009. or 1990s Crises tend of that late producers,individual the c experience major not downturns did resembling carmakers Despite related temporal and the problems structur stagnating demand to stabilitywascara marked relative of particular in industry by locations serve as distinct units of analysis. units locations serve as distinct each details). case,(see Within plant-level 1.4.1. for at Pol unions subsection and oforganization the their national workforces composition forchosen been t have companiesautomotive regard in displaying similarities important the to 2009 with unionists at the if relGerman unionists and, 2009 with companies’ and subsidiaries, Polish gatheredwasconduct thefifty of course in semi-structured interviews over Furthermore, throughout the examined period the manufacturing sector in genmanufacturing periodthe examined Furthermore, the in sector throughout This dissertation employs a multiple embedded a dissertation employs This multiple case 1992). study (Yin method The ona are empiric variety case studies The sources. of of bulk data based 37 growth strategies. and profit perspective of their actions of their actions perspective interviews place took cross-border production al difficulties faced by al of GM, this period of GM, this ed betweenand ed 2007 ish andish German have be to evant, with nces that al evidence he inquiry eral anderal the risis of therisis Three ons ons CEU eTD Collection 7 German uni and and construction and plant-level representatives Polish labor Belgian car meetings theoutside Polish-German and setting with involved I that the course in for attended have Western and of research. unionists CEE my workforce meetings ( participant duringdata observation factory was vis my obtained through f I onthe literature European two rich use secondary of made the GM unionists, and early expansion trajectory cooper international instancesVW’s of of Hancké reconstructindocuments, order 2000; in While robustness ensure (Gillham to 2009). other sources, releases,data as c press was with such triangulated See Appendix for the interview list. list. theinterview for Appendix See Betriebsversammlungen ), international conferences and training), and international seminars conferences 38 ompany publications and union publications ompany its as well asits plant ation between ation West automotive sectoralautomotive onists. irms. Additional Additional irms. 7 Interview g the CEU eTD Collection Volkswagen’s2. Chapter plants: engine transnationa strong home county unionists, such asstrong county home unionists, German union representatives. Finally, it shows that cross-border Finally,German coordinat shows that representatives. it union comparisons. the reciprocal illustrates Second,exchange it character of cross-borderto become sites costtransnational’ and vulnerable when their Introduction 2.1. allies involved in corporate in allies involved decision-making. be councilors, turn, in works the threat underbidding; Salzgitter of inter-plant ByP Chemnitz. factoryfrom in engine coordinating the the company’s with Inter-unioncounterparts selection site during talks. exchanges investment the aboveto offor their and exchange assistance organizational in the support German at the West location. T negativelywould capacity utilization affect take would not Poles over tr accept strikebreakingwork temporary or production colleagues Specifically,agreements. areas covered in not such by they via allia pacts the company with built they management, simultaneously from the Salzgitter factoryunionists secure to level employment strove andIt German at Volkswagen’sPolish while unionists plants. G engine shows that The case study offers three sets of conclusions. First, it shows even that it exce First, The sets of three case study conclusions. offers This chapter examines the impact of production internationalization on the internationalization chapter impact ofThis production the examines cooperation and local bargaining bargaining local and cooperation IG Metall 39 officials at VW, employand at VW, strategies ‘goofficials new were reassured the that s and future and s investments s between Polish and betweens Polish nces with their Polish nces their with Polish also benefitedalso workers performance he Poles committed he committed Poles ion effortsion ran at VW oles, they minimized oles, they minimized came powerful their Western ansfers that strategies of erman l l ptionally CEU eTD Collection parallel to union-management negotiationscompanyparallel level. at suggest the union-management This to product range by purchasing Audi, which assumed the position of an the upper-cla position assumed product Audi,which range by purchasing InLatin it Africa.and America, South in production 1961, sites America North 8 (see 2.3). section owners.governments shar retained a The its became part VW’s latter of theS Lower federal andandresult, asthey the German a to state in it handed manufacture army to aboutused the firm’s it surviva Skeptical vehicles. light broke After out. WW2 the war, wasby site damaged administered the heavily the companyIts name starte first Wolfsburg factory suggests. just in had for – ‘people’s car’create every or citizen a affordable car brand expansion. only domestic Not production baseexpansion. enterprise strengthen its the did Company profile 2.2. prospects employmentinvestment at foreign and levels locations. refrain to however, localthe unionists deals from might negati that oblige it unlikely is transnationalism bargaining; of override local the to practice Palmela, Portugal. in unit Iron1991 established an of the additional the After 1989 fall C It purchase to Seat, 1990. Pamplona just production in in plant its it 1987and over in took in wasIncompany’s VW 1980s, gradually engageme its portfolio. increasing the This section is based on Knorr (1998) and informat and (1998) Knorr on issectionbased This The postwar decades were marked by VW’s fastandVW’s marked recoveryThe spectac postwar were by decades 1937 byVolkswagen in founded Germangovernment, intended the was to fascist which 8 ion on VW’s corporate website (www.volkswagen.com). corporate VW’s on ion 40 ‘the the nation’, car for as the d regular production when on the other hand, on es until the presentuntil day es velyaffect axony’s l prospects,l 1948 in ular international ular s that labor that s , but it also opened it , but nt in the Spanish the Spanish in nt ss brandss the in broadened its British, who urtain, CEU eTD Collection proceedings against Porsche in the US and merger-related tax disputes in Ge in disputes proceedingsagainst Porsche theand US in merger-related tax production base thanks to acquisitions and greenfield investments in Poland in and investments and (Poznań acquisitions greenfield production base thanks to ( acquire latter’sPorsche to attempt failed 2011,afterby the contro VW’s In me middle- andplans to low-price models. 2009,theAugust company announced its a to range portfolio full Bentley,from of extending classes, sports thus its Lamborghini,BuIn Group VW purchased2009. luxury brands: three late 1990s, the Company2007 andAutomotive India opened a since factor a 1984, while in sales in it point has been it China, producing through and vehicles subsidiary Shanghai selling V its VW the direction main (Kaluga).Asia of Russia has become however, Recently, BosniaHerzegovina Audi’sPolkowice),with engagement), (Győr, and Hungary CEE In the and its 1990s Republic and the 2000s, company Slovakia. further extended boughtVW the number Czec locations in the Škodaand Czech of owns currently a production including VW Sachsen with facilities Mosel, Zwickau including in Sachsen and VW with Chemnitz. employGroup of about a 90,000 workers. also subsidiaries The opened acros number whichlocated j Braunschweig, Wolfsburg, Hanover in and Emden, Kassel, Salzgitter, GermanWest and six headquartered comprises car and component of Wolfsburg in vehiclesyear a 6.3 million Volkswage TheGroup, (VolkswagenAG core of 2008). the to to 95%It of workers whom 1969andSalzgitter. in was has 6,300 onthe established payroll, component producer for the East German Trabant and ha site component Wartburg brands, producer East German for Trabant the the BBC IG Metall 2009). In however, the 2009). merger late be emerged 2010, due that delayed legal it might to The Volkswagen Group employs nearly 370,000 peopleandemploysThe worldwide over produces Group Volkswagen 370,000 nearly VW’s biggest and oldest engine plant is located in the Lower the biggestengineVW’s located is plant and Saxony’s in t oldest . The Saxony.a company smaller engine also Original owns Chemnitz, in plant 41 lling stake majority cars to and limousines rmany ( own of own (Sarajevo) and (Sarajevo) ’s expansion. In ’s expansion. d been factories olkswagen olkswagen FT gatti and s Germany, s ointly 2010). 2010). rge with n AG, is belong ly a y in h CEU eTD Collection process. 2008) lower level VMC1 is at Salzgit the than (83%; The in plant unionization plant union representations at a particular locatio particular a at representations union plant Metalowcy 9 relatively autonomous. Therefore, when Therefore, autonomous. relatively its culture and transfo Volkswagen’s corporate 2.3. remained restructuring 4,500workers,end of1992. Out of the initial the 1,000 theby only manufacturingwas t 1998)(Behrens by engines bought and VW-licensed since 1984 workforce to belonging 80% of the oftown With Polkowice, employed where 2008 (VMM1workers it in 2008). 1,150 south-wes established an VW Outside Germany, the engine-producing in site 1998 in called Act Volkswagen ( the presentremained day and,each.Lower until i a shareholder Saxony has the privatizing VW, While Lower federalgovernments and ret Saxony’s years only times,not the the also first to fascist to postwar but (Bruml special between theits ownership company links Close structure. and the st Mladá engines out Republic, Boleslav, forput Czech Audi and r the Škodavehicles, standards. The Polish to Group’scomponent locatedHunga plants twoother Győr, in of securinggovernment the supervisory in regional two places for board the wi takeoversand, hostile ‘golden combined the firm from rule sheltered share’ the latter stocks (Jürgens possessed company’s Thi number a et of al. higher 2002). Polish plant-level labor unions studied in this di in this studied unions labor plant-level Polish One of the biggest and most recognizable German enterprises, recognizableOne has German of bee VW the and biggest most . Due to the weakness of sectoral union structures structures union sectoral of weakness the Dueto . Solidarność VW-Gesetz Solidarność ) of 1960, cannot be any outvoted by other) if of investor even 1960,cannot 9 , Polkowice unionization level extremely is , Polkowice unionization according high n. ssertation belong to one of the two federations, federations, two the of one to belong ssertation or Metalowcy 42 in Poland, individual plant level representations a representations level plant individual inPoland, are named are rmation in the case studies, I am referring to to amreferring I studies, case inthe op and Jürgens 1986).op and ained 20% of shares ate can traced back be n line with the so- with n line ficials, the enabled th the regulationth Solidarność Solidarność n known for s so-calleds espectively. he latter in ry, and ry, t Polish Polish t ter. or re re CEU eTD Collection provisions of theprovisions 1952 German ( law codetermination between management and employees’ standpoints (Jürgens Ger employees’ et al.and between 2002). standpoints management selection of the company’s Managing Director, while Managingselection Director, while of the company’s through a in have unilateralet al.(Jürgens manner 2002). their decisions also Unions has for been it comp impossible employee virtually representatives, In supervisory of ofsupport the members. presence two-thirds of board the concerning ofestablishment a the new closurean fa the existing or plant of relations.industrial Participatory employee of rights its represe the1986). metalworking industry and(Brumlop Jürgens agree regional in whose those out laid are provisions advantageous than more usually negotiates for six collective aagreement its separate bargaining of the supervisorychair position chai assumes usually the deputy board’s its harmonious industrial harmonious industrial its corporatrelations system, stakeholder-oriented company’sassumingand (Greer Hauptmei their ‘co-managers’ the role of participate AG from VW factories st employee in representatives sharesdiscouraging ( investors from VW’s potential acquiring share’freeruleclaiming of impeded capit the the that ‘golden movement Justice overturnedonly Act, Volkswagen the of European Court October 2007when in the (BrumlopJ solutions andrepresentatives for and employee-friendly pushed social democratic woul rule, statestrong officials when of at the the times influencecorporate astate exert Thepolicies. to considerable on latte All in all, industrial relations by are industrial all, at VW in All a characterized degree high o In addition to its special its ownershipIn has to aaddition developed VW structure, specific 43 Betriebsverfassungsgesetz IG Metall Euractiv ntatives gofar ntatives beyond the AG factories ( leader and general leader and council works rategic decision-making, any management to push any push to management r’s impact was r’s especially 2007). 2007). e as well culture, a al within the EUal within by rman. Finally, VW Finally, VW rman. d ally union with er 2008b: 76). 2008b: Dueer to government and cility gain the must ürgensIt 1986). was man union andman union Haustarifvertrag ). Any decision ). Any decision f congruence system of say the in ments forments ), CEU eTD Collection before the supervisory board. before supervisory board. the regions,performance compare also to but individual and of the locations, brands dat relationsunion at the company. of production andwhich, division manageme impacted taken have on the together, spatial practices;abrupt a involved past departure rather, series it from of governancebegunchange. have synonym system has been transformation not The to employment growth domestic subsidiaries. continuous its and of system,g enterprise the German which rooted economic deeply in political It 1998). (Jürgens re flagshipalso gained corporatism the of German instance stable ownershipfor secured structure bee the long by had Act, Volkswagen VW 2000 planning round, it outlined a set2000 ofplanning targets, financial involving outlined round, it growinga2000 the enterprise financial to attaching importance been has European(2002) carmakers,comparativefour et al. however, of Jürgens study 599) refershybridresulting as va to (2006: a shareholder what ‘enlightened in Clark of long-term the stakeholwith main interests were balanced objectives ‘hard evidence’ in hand, management also found it easiermanagement inves‘hard new hand, justify in also found to evidence’ it their acompany forbasis as used capacity cost dis and indicators productivity sectionalFinancial management scale.equally a important became higher at company all efficiency VW enabled The scheme sites. new introducedIn it a newcapitalgeared controlling and towar addition, onsales. system For decades, VW resisted the of adoption shareholder resisted For Shar valueVW decades,principles. years,however, production andVW’s organization In corporate twenty the last 44 incremental modifications modifications incremental s quality management, asmanagement, the qualitys inter alia alia inter not onlynot evaluate the to ders, i.e. workers,ders, tribution. With this With tribution. indicators. During the uaranteed stable uaranteed putation of an of putation higherreturns on argue since that n considered a tment policytment eholders’ a on a cross- a on lue’. In theirlue’. ous with an with ous ds achievingds nt- CEU eTD Collection production and international division of place,in laborretained division wasproduction and which international however a integr 1970onwards, From pursuing a more industrialization. import-substituting production models, Pries (2002) argues that until 1970 the firm consisted of a 1970theproduction (2002) Pries firm scattere models, consisted of until that argues Pries (2003: 1), signal VW’s transformation acarmaker’ ‘transnational ( into (2003:Pries 1), VW’s signal sales a at volumes the the foreign and, upgrading clearly demonstrate trend, units emp production, performance. Growing advantages enhance overall and to thus its enabledadvances the the company max at peripheral make to facilities became Deepthe types two locations and less pronounced. restructuring of It of roles division betand when the 1990s early production in technologies. only the was hierarchy terms peripheral of in sites profitbetween stra core and partners import of assembly German facilities, and l plants production impact on relations between core and peripheral locations. Inimpact onrelations locations. historica between core and his peripheral Furthermore, the company reconstructed its internal aFurthermore, value which its p had reconstructed chains, the company 45 tegies, product sophistication sophistication tegies, product ocated in countries in ocated imum use of localimum l overview l VW’s of technological see Figure 1 below). Figuresee 1 below). ccording to ated of model loyment and clear-cut d network rofound ween ween CEU eTD Collection Source Figure 1 soon began soon plants. those for resemble characteristic VW to other part processes 11) ofatinvisible 2003: and the the new car’ production (Pries reverse trend, and not the did since 1990s, such Škodain as ‘the the Seat 1908s in the unification locations. were Even theat acquisiti quality different used control mechanisms theled homogenization and to effect of in production the processes, same technologie theaffecting p regionscertain brands of the (Pries introduction 2003). or Second, case in sites made easier of it unsa switch andbetween to models production elementsmaking across ofsimilar vehicles’ increasingly its inner First, adoptedorganization. VW the the sphere so-calledproduction of platf : Pries (2003) (2003) Pries : The upgrading locations was by of facilitated peripheral two interrel . foreign subsidiaries, 1948-1998 subsidiaries, foreign Percentage share of production, employment, turnover and sales at Volkswagen’ employment, sales production, turnoverPercentage and of share 46 a few general a few types, which ated innovations in in ated innovations orm strategy by tisfactory demand comers’facilities on of new brands, latform system s ands s s CEU eTD Collection benchmarking sourcing,global costs and productivity and on paramete based preceded by a ‘beauty contest’ between European (sall plants precededcontest’ ‘beauty aby easily and sites borders. across between transferable 117), of at and models alaunching identical ma number the engine production of sites production’ model-mix schemeopted for the (Blöcker ‘flexible so-called high- in models In low-costsimilar component i countries. manufacturing, and for high-value specialize in superiorand added the f technologies products, which allowed and brandstrict the core vertical organization, division production summarized the investment distribution process distribution the as investment summarized follows: Pol were logistics158). manager The at VW the scholarlyby confirmed insights core of (Kädtle the the Group’ strategy world-wide Volkswagen elements of shared by the literature seems to be that ‘[c]ontinuous internal competit shared be to ‘[c]ontinuous that theby seems literature strategy at VW has not yetstrategy as has at at taken GM, not VW whereform acute investme such an Althoughother, affectingandconcessions the inducing whips working conditions. wages representa plant individual the extreme case, could play off the management could servethus and accompanyinga investment capacit tool benchmarking as At the costs and same however, producti inter-plant time, they facilitated givenreg the event aa in of job-protecting demand unsatisfactory in device how efficient location A, B and C are’ (VMM2 2008). B(VMM2how 2008). efficient location and are’ A, C che enterpriseand they of there goes all department the financial And this the to we and cooperate we union, business a in are subsidiaries] [VW The above changes were followed by new rules governing alloc followedThe newby changeswere above investment rules These flexibility significantlyand innovations thus production increased ‘It’s quite simple – each location makes a bid [ bid a makes location each – simple quite ‘It’s 47 bewirbt sichbewirbt ee section 3.3), a view common ee 3.3), section ] for new models. We models. new for ] ion, internalion, irm began manufacture to irm vity and comparisons and Jürgens 2008: and make our bids. our make ion (see section (see ion 2.4). tions against eachtions r and 2002: Sperling rs are becoming yIn distribution. nt allocationnt was kowice, who could be used ascould sites to utilize utilize to sites nstance, VW VW nstance, ation. Besidesation. king it ck ck awing CEU eTD Collection production shifts to foreign locations at times of economic downturns or protest ac of downturns at or economic times foreign to protest production shifts locations line in plants demandindividual with fluctuations: growing and offinancialization their transnationalization company. tackle to the national cha bargainingcross-border and instruments contacts and show they that ma engine the VW sections strategies unionists examine of respond Howrepresentatives thesites. German emerginemployee to did only levels,peril also the in not very but would put current employment the could be lead,Having losing the Germans the investment their technological lost significantl would be with sites subject performance to comparisons facilities of would be individual company-wiby utilization preceded Indownward countrylongcapa workers’ pressure onhome working run, the conditions. could of beGerman such threat used transfers very theby manag Even sites. the temIn performancefinancial could run, lead focus the company’s to the on short He also acknowledged that the company regularly adjustedHe production the company level also acknowledged regularly that For German VW factories, the above trends had both short-implica and the aboveFor long-term both factories, trends German VW had Every trends. the are they and 2008). months make this examine corrections’(VVM2 what what, produce can Who monitored. are levels where is it managed, centrally is it allocation… ‘Capacity 48 y foreign cheaper plants. de tenders, in whichde in the tenders, core rdcin n sales and production g threats? The next The next g threats? llenges related to the related to llenges existence of their de use of both ement to put aement put to porary bids, whichbids, tions at tions s ats three three city tions. tions. CEU eTD Collection production of which of a a took balance form competitive ‘race’ shafts, direct Instead,border the Salzgitter and Polkowice exchanges. factories parti prospects for cross-border industrial relations’prospects industrial cross-border transfer for at large ass Bluhm’s with Itbargaining (2001) (VMP 2007). positive line also shows in that, side,partner the able c employee in workers’ articulate to demands onthe creation of an employee representation atcreation their facility.an representation A employee plant- of the that session latterworkers attendeda 19 Salzgitter training in in during evenPoles Polkowice. They in before ofapproached the regular launch production P and social engagement of the candidate. As argued byand the candidate.As social argued the engagement Polkowice of wasactivism allegedly sign asset as considered talks, as during it job an of the oppose contrary, to a not thedid formation union; site’s creation. The prior firm driveeventually spring shortly ofas in an a founded internal aft result 1999, organizing congratulate the current union chair, The atunion time. that ballot newcongratulate whocurrent won the the followingchange Salzgitter leadership. Polkowice w works a union councilors of improve, relations level Engine (VW union labor 2000did Only in representations 2003). firms, certain elements of VW’s corporate culture did find corporate their VW’s did wayfirms, certainelementsculture the of to bui union-friendlyby motivated willingness was attitude to the management’s No noproduction strikebreakingtakeover 2.4. work, encouragement from his own confederation (VMP 2007).ownencouragement confederation from (VMP his gesturebyandwas acknowleded thepositively that Germans’ surprised In contrast with the Germans, the Poles initially the Poles Incontrast enga to the remained reluctant Germans, with Salzgitter showed works councilors interest developing li in cross-border 49 s , socially-embedded German , socially-embedded level Solidarność Solidarność cipated in a in for tendercipated the he had received he nosuch aled interpersonal aled skills ourse of collective Polish subsidiary.Polish 98 and called the for ly plant- involving ld upald credible Solidarność nks with the with nks unit was unit ere the first to chair, this ge cross- in essment of olish olish union union er the leader CEU eTD Collection plant, when the local union leaders did not allow a leaders whenplant, Salzgitter employee the allow local not did delegat union representatives. representatives. l was the Polish with for laid improve, also foundation exchanges but cross-border Gerchanged only betweenclimate: not at the the relations two did the unionists 2002,however, of Thefactory in works a election (VMS new council 2007). total premises works council chair, the conflict’s placeworks strike took at t culmination council 1995during the a chair, in general of an VW officialwithout council According (GWC). works permission t want b engage not offer, to did counterparts’ they that in cooperation stating in 1992Chemnitz this in motivation mind, worksWith their councilors Salzgit rejected chair, leadership the union the and management as a competitive position Inits eyes curre and efficient site. of the the was thelocations, claimingbest strategy their fact for isolation that whichcouncil labor the from with shunned plant’s representatives works contacts In underwentinter-plant early liaisoning. restruct extensive Chemnitz the 1990s, aatti East negative Germandifficultiesfactory facedand theby ‘German-German’ impasse unionists. in The initial relations Chemnitz job>’ (VMC1 2008). job>’ (VMC1 2008). Two years relationsin Two betwbreakthrough a place took later similar employee representatives from other VW plants], so that we c we that so plants], VW other from representatives employee absolutel were there if best be would It Volkswagen. of part a itse indepe about act to has it future, a needs it think character, own its develop to has plant of ment but but ment CEU eTD Collection promised not to take to productionpromised not from during over strikes at factory, another s each other prior to any shifts of production volumes between the three facilities. I between volumes the threeprior any of to shifts production facilities. GermanWest facility ( C 2006,the Salzgitter a June councilin production rejected transfer works from was applied the soon practice. East in in German During protest actions met work,The agreedrefusal of rule also strikebreaking within concerning the give to annot dealing upperprotest in actions: with the hand management production and regarding capacityregularlyc information planned exchange furtherneverthelessaeffectively exc forbasis as served their offer.According the Polkowice to anotherimpact negatively levels onemployment the at site, receiving loc the mere rejection of strikebreaking work, as the unionists also pledgedc theunionists mere as of to the rejection strikebreaking work, their fulfill promises: to plant from which the production will be transferred] suffices t suffices transferred] be will production the which from plant we to’ (VMP 2007). stick close this watch we and other, each against off us play employer protes their [in them support we contrary, the to capacities, over take to reject we moments such in unions… German or council works under actions any or demonstrations, or protests of event the in ‘(…) the production. pr any make not do we fine, is everything that is answer the if levels at other that won’t impact pl onthehave employment this a negative repre employee an [to call phone one just Then facility]. another of part a relocate to decides suddenly management the ‘Sometimes Labournet 2006). went But beyond cooperation agreement the trilateral Solidarność chair, the three union leaders have the union chair, three managed far so 52 hanges. The unionists vowed to Thehanges. unionists t], so that not to let the let to not that so t], f the shift was shift expected f to the o find out whether out find o oblems and accept and oblems ation would dismiss the dismiss would ation sentative at the at sentative ly, this is what is this ly, the company’s EWC, onsult eachonsult other production [to production alworking industry hanges and and hanges taken by the the by taken hemnitz thehemnitz to ant and their o that o that CEU eTD Collection production and employment situation, Salzgitterproduction and and situation, Polkowice employment employee repre production regardin from twoengineexchanged the other factories. information Having W md a areet wt te noit fo te te egn p engine other the from unionists the [with agreement an made ‘We theresulting troubled to East German plant: capacities transf and work to decided asked at overtime their decline locations the to management could be cuts.threatened The job avoided,faciwith dismissals however, if the c 2005. As a engines,capacity result of Chemnitz’s diesel bad for planning work (VMP 2008). Itwork the Polkowice (VMP 2008). remarkable is that Polkowice. For of such plant, numbers loss few were the Polish equivalent a to months’ equally 20,000engine divided to units, Theamounted production between Salzgit transfer instance of transnational labor solidarity. instance of transnational Germanas regarded genuine of welf personal sacrifice be facility should German andassistance West their Polish workersby to colleagues f offered constituencyunion’s decline incomehis extra to viewpoi opportunity. this this From production go there’ (VMP 2008). production go(VMP there’ Interviewer: a problem?is there And if vrie or i wrpae [n hmiz cud e ae b let by saved be dur could ourselves Chemnitz] remuneration levels and working conditions. This is how council the is Salzgitter This working works remunerationconditions. levels and newobtain evensecureconces investments, andemployment at the of price othera component-producing VW’s for priority empl was it the local sites, exchangefor job in AG:concessions Volkswagen 2.5. feeling production s stability control to and over partial the transnational ageing workforce and higher labor costs put the West German the West costs put ageing at laborplant aand workforce di higher led plant- and enterprise-levelunionists the company with negotiations mana All in all, the unionists from the three the all, unionists in All managed plants strong cross develop to Parallel to exchanges with their counterparts from Polkowice their and Sal counterparts Chemnitz, fromParallel exchanges to with t getting other,each (VMC1contacts’ cooperation, 2008). upholding visiting each our other, exchange, information with this it to creating a respond something we in do And to interest employees, the an task, our is has it And always (…). competition company The (…). on so tha so other, each with competition in time the all are they that ve other, each against locations individual the off plays firm ‘The ntne ngthf bnss ae en eue t te iavnae f t of disadvantage the to reduced been have bonuses exte nightshift time working instance, cut, been have wages cuts; many accept to had we 2006, and 2004 2001, 1999, 1995, in rounds bargaining collective ‘During member, summarized his union’s strategy in this regard: union’s strategy his regard: member, this in summarized 54 security t they cut costs and costs cut they t pace, to an extent that it it that anpace, to extent ry intensely. So So intensely. ry ed by the company: ed bycompany: the sadvantage oyee representation to to representation oyee sions affectingsions gement. Since the nded… for for nded… lmt of climate an unionists a an unionists gainst it. it. gainst o know know o -border chair, an chair, vis-à-vis -border he zgitter CEU eTD Collection plants by 30% until 2010 so that to make to that so €2 billion savings, by thatplants became 2010 clear it 30% until Braunschweiger Zeitung, Salzgitter Zeitung Zeitung Salzgitter Zeitung, Braunschweiger 10 future’ ‘agreementIn theeventually deal 2004,knownwith as f struck. the from November line their facilityafloat. outcomesabove indicate,Their however, assurances. workers that had sacrifi to providingcrucialThe in 2004and rounds Salzgitter were 2006 employeesbargaining increase for all employees but in view in of but lowe plans theincrease to employees all company’s for hours were added to individual working time accounts (Volkswagen workinghours were added accounts AG time individual 2004). to long partially compensated a freeze wage period, one-off of bonus €1,000. by accepted production locations. Onindividual the the flipside, a unionists twenty-ei considerable were that thanks the to elaboration follow of to investments savings Salzgitter region called it a ‘fair compromise’ (Räschke in aSalzgitter in region ‘fair it compromise’ called (Räschke Saxony warning strike attended by 3,500 Salzgitter workers (warning 3,500 Salzgitterby strike workers attended payhave its through. pushing a time hike hard claims After protracted nego climate was ofthese given it emplthat able current jobs secure to the Newsclick (Zukunftstarifvertrag) At the outset of the 2004 bargaining round at VW AG, bargaining the At of round outset the at 2004 VW Employee representatives were generally satisfied with the deal with Employee weregenerallyrepresentatives satisfied IG MetallIG te cletv areet () n w raie ta w cud not could we that realized forthis 2007). employment guarantees’investment and (VMS that say can we one And rules. these and all kept we if (…) competitive agreements collective t other than advantageous more been always had agreements collective VW p The employment. secure to away all it gave We (…). workforce is an internet data base offering a selection of a of selection offeringa base data internet isan ’s chair admitted that ‘the union must accept ‘thefac that admitted must proud union and of the be reality’s chair , all jobs at VW AG factories were secured until the end AG at of VW factories 2007 all jobs secured until , were and and Wolfsburger Nachrichten Wolfsburger 55 rticles from the local Lower Saxony press – – press Saxony Lower thelocal from rticles Newsclick Newsclick . . 10 IG Metall IG Metall 2004a), was a compromise 2004b), whereas Lower whereas 2004b), oyers moving central andoyers to r labor costs at the six AG costs at ther six labor . A union officer from the. Aofficer union we exchanged all all exchanged we demanded ademanded 4% wage tiations and atiations short rovisions of rovisions In extra addition, ce a lot to keep to ace lot the union would the union plans for oe in hose ght month- with the with be or the or the t t CEU eTD Collection press speculated over a possible closure or sale of one of VW’s component p one closure of component VW’s press ora sale speculated over possible of AG factory was granted aAGgranted comprehensive factory plan. was The investment Salzgitte In concessfor for exchange the the 2006). metalworking (Volkswagen AG industry Lower2008 they adopt wagecoll in to rates were Saxony’s increase outlined also agreed aThe to instead €1,000 bonus unionists of 2007,while a in in regular increase wage for work aaIn 5% higher week fortyaskedaddition, of hours the could workforce be to account and to remunerationproducts rates changes for fluctuations that so demand in thirty-three varyto actual hoursfrom a working would twenty-five we time had accept at to managed AG it the that hour-long but sites, working defend a week to 28.8 to hundreds of millions of euros (IG Metall 2006). To make things worse, German of To make hundreds eurosto things Metall 2006). of (IG economic millions worse, German continuedconclusion, bring sites the to all six considerable that losses employees leaving the firm ona voluntary Afteremployeesfirm of leaving negotiati twomonths thebasis. generousthirty-five sche wage without and compensation offered increase hours of guaranteeemployment the place. extension in proposed it Accordingly, further that cuts at AGclosure factories argued cost necess scenario, it in ‘unacceptable’ (Blechner chairemployeessc The ofcouncil rejected out firmly local work. the works t assignedcorporatelow capacities plan exceptionally investment it foracuteorThe downsizing the was Salz threat particularly of liquidation by (EIRR 2004). financial the firm problems faced woul bringrequired savings and thethat agreement of hence a would the only half easternfurther afield’ analysts 2004:19). External EIRR or in Europe (Meine The experts’ concerns soon proved well-grounded. A year A proved afterThe experts’ well-grounded. concerns soon the Motor 2005: 4). 2005: Even though eventually the company denounced the 56 hat wouldleave 30% ary to keepary the 2004 to r plant, for instance,r plant, was gitter site, asgitter site, the new working to time Zukunftstarifvertrag ek at unchanged heme, calling it lants ( lants claimed, however, ective agreement egedly amounted ons, ons, mes for d not eradicated not Motor ions, each ions, IG Metall ’ life cycle. wage. wage. 2006). ’s CEU eTD Collection pressure unit pump system (pressure system pump unit product guarantees. The Salzgitter works council chairSalzgitter worksproduct council was guarantees. satisf very The Mladá Boleslav facilities. facilities. Boleslav Mladá thus remainedthus scope Poles’ influence, beyond of the the the local was concerningbe to taken distribution loc products’ by central, not new the projectincluded the new modernization in the and decision engine assigned As models. unionists unsure left the whether Polish factor technology. their declaration This 11 at Volkswagen’(Blechner in be not pushed asi ensure‘will employmentand Salzgitter that numbers future; retai and wage to onthewere other working necessary concessions, time hand, Inguarantee stable 2007). technologies’production view, share his the Engine (VW and new new in outcome, production halls highlighting importance ‘investment of the the central with new Polkowice during in their managem investments negotiations channelsuse urged cross-border German counterparts advocat and his communication to union site. Since its establishment Sincesite. its 1998,Polkowice had in engines been manufacturing Solidarność with Solidarity 2.6. environmental regulations, and announced a gradual shift towards the so-called towards shift gradual andenvironmental the so-called announced a regulations, the engineassigned aproduction European stable 30% the firm’s in share The share was calculated on the basis of VW Group’ VW of basis the on was calculated share The Pumpe-Düse- In the second half of the 2000s, the Poles too became too of concernedIn the2000s, future Poles their of about the the half the second based production, whichobsolete and proved meet wouldnot production, new based EU Pumpe-Düse Metallnachrichten ). In decided however,mid-2000s, ). phase to the VW out s engine production, including Audi’s Győr and Škod and Győr Audi’s including production, sengine 57 2006: 3). 2006: Solidarność 11 ied with the bargainingwith ied de from the developmentsde , alongside new with al and management leader decided to leader to decided Common Rail y would be with a with low- ent. As a result ent. As d the plant’s n the a’s a’s e CEU eTD Collection between the engine unionists (VMC1 2008). betweenengine unionists the improving working conditions (improving working conditions workforce andenthusiasm work the Polkowice wa to increasing by satisfaction’ yearsdemands. The argued after that of union restraint, wage was it necessar employees, the introduction of a seniority bonus, an increase of Sunda nightshift aemployees, in an and seniority bonus, the introduction new product onthe based unionists that the asPolkowice technologicalChemnitz and would undergo be upgrading and from intervention,of obtained the the his company’s Poles reassurance EWC knowledgecompany 2008), which affairs ofas served (VMC2 ‘strate a for basis councilasreferred chair aworks cooperation ‘forerunne Salzgitter to future was rounds. opinion A expressed similar product Chemnitz by distribution be not left the the cour empty-handed forum, in ‘their they with that, would man’ within supervisorygave aworks the secur Poles sense VW council in board chair of indicatesuncertainty the that pres notwithstanding, material the interview T German was portfolio modernize Polkowice influenced the by product unionists. determine to engine what which to factories Europe, exte makes difficult in it As it turned switch from later,As it out the crucialGerman importance: was advocacy of Once the new investment plans wereannounced,Once investment the new wereinvestments] got fulfilled – we product!’ (VMP 2007). the new a modernization [regarding promises these indeed, And (…) distribution. a directly management the with talked system, codetermination who, colleagues German our as possibilities such have didn’t ‘We Common Rail Biuletyn Pumpe-Düse technology. the According to 2007: 1). 2007: Itpay all a demanded for thus 10% hike 58 to to Common Rail Solidarność took place at all VW’s place VW’s all took at came up with pay camerise up with r’ due to his superior his to r’ due Solidarność ence of Salzgitter bout production production bout thanks to the to thanks y back ‘bring the to ity and aity feeling and nt the decision nt to ges and gic accords’ unionists, who Salzgitter and chair, the nd new nd his his y work se of se of signed a CEU eTD Collection both parties,both May front in in decided the union stage actions to 2007 a of series protest payments and other bonus payments. The unionists justified their demands justified paymentspayments. ‘ and with other unionists bonus The Rail production would start in January 2009. In the last months preceding the modernization, productionprecedingIn January would start in months last 2009. the modernization, the zero-sum game and to show understanding to the employer’s understandingzero-sum game the arguments. to and show to treat to bargainin who collective him taught insight the thanks German to unionists, organization (organization thep finalbeen compromisethe management had the ‘a success’ of and joint guarantees the of form in condition the company of old and production factory. The demonstrations made the majorityfactory. the firm agree demonstrations of to The acce broughtmediation norSince the neither subsequent a the negotiations solution Common Rail annual payments and shift (bonus in an increase generousincludingapay 5% (over two rounds July of2008), January in in 2007 and hikes 4% could not becould not resolved,simply solidarity express the to plant or wit visit to negotiationsasreadiness mediators and if the union- serve in participate to and SalzgitterChemnitz colleagues. supported latter th officially The regularly theirPoles information bargaining and exchanged consulted strateg rounds served as a benchmark for minimum union demands union Polkowice. in rounds foras served a minimum benchmark In wageaddition, rates Germanyearlier in increase c negotiated during them with the new production scheme and announced that the new engine model’s regul the scheme engine new with announcedthem the that new production and technology. Polkowice workers for training sessions company the The organized In action,aftermath the of Polkowice the protest the In the fall of 2008, the Polish factory began preparations for the switch to the factory forIn the the switch to fallbegan of 2008,the Polish preparations the engines’, but the management engines’, the and claims ‘impossible’ labeled but ‘unsound’. Polkowice24 2007; VMP 2007). He also acknowledged that he had gainedhe had also acknowledged 2007). VMP He 2007; that this 59 Polkowice24 Solidarność 2007). 2007). Solidarność e action ande expressed action their ollective bargaining ollective Pumpe-Düse leader pointed out that that out leader pointed During the protests, the During the protests, h management dispute Solidarność y theirwith lant-level labor ’s demands, good financial ptable by g as a non- and new Common to acquaint acquaint to of the ’s claims. ar CEU eTD Collection benefited from other forms of support offered by German of support offered t benefited by sectoral-level other forms from jobs in Polkowice, Polish and German unions jointly asked the management to tempora to Polkowice, Polish in and management jointly askedjobs Germanunions the bargaining techniques, as well as the division of well as labor the thebargaining European division in as automoti techniques, related tanks and and Between 2005, think organizations. 2003 courses by organized In Polkowiceaccession employee (DGB addition, regula 2003). representatives the implementation in them assist of unionists onoccupational and and managers HR saferegulations Polish health EU with Berlin-Pichelsee, exploring such topics as the German industrial rel industrial Berlin-Pichelsee,as the German exploring such topics department ( e coordinated confederation’s union training SIGEPO, theby German project had already switched to have plant not did forAt the core enough same the work Chemnitz its time, workforce. the ‘old’t dramaticallyhowever, enginesdemand emerged fell and for it the the unstable period (VMP 2008).the unstable period (VMP andmanagement secured ‘decisive’ for Polkowic was success the transfer’s According the to 100 Polesdelegatedapprox. the East to for months German the remaining three site The companytransferaccept Chemnitz. a Polkowice to workforce part of Brenner Foundation (OBS) and, most importantly, and,BrennerFoundation ( most the Friedrich Foundation (OBS) Ebert FoundationO union-led Böckler - or (HBS) and the social Hans the democratic foundations by profitedsection and Ge 1.2). from conferences The also workshops organized Poles Alongside with bilateral exchanges with Salzgitter and Chemnitz, Polkowicexchanges Salzgitter and with Alongside Chemnitz, bilateral with DGB BildungswerkDGB Solidarność IG MetallIG Common Rail chair, at the central German colleagues’ his intervention ’s Berlin-Brandenburg-Saxony training at its district center in ) and Salzgitter plant’s works council. It aimed) acquaint works to and council. Salzgitter plant’s acquis communautaire , could barely keep up with overtime work. In, could work. barely overtime save upwith to order keep 60 in this field prior EU Poland’s this to in Solidarność ations system,ations rade unions andrade unions union- ed the proposal anded participated a in e workplaces during hat the Polish plant plant hat the Polish ducation rly attended rly ve industry (cf. IG MetallIG e unionists e unionists FES). of 2008. rman rman , which ty and ty to rily tto tto ’s CEU eTD Collection building cooperative union-management relations (VMP 2007). relations building cooperative union-management practices at its Germanpractices andat those at its subsidiar developed CEE locations was invaluable and contributed to the strengthening to was union contributed invaluable plant-level and of the Polish the fact to German counterpartsrespect, object his had a that not did better he (VM richer,us manner’ approach professional us a in certain issues made more meet, exchange to local experi chance had management: to a we time ‘[e]very CEE unionists within the so-called InterSoli project (VWP 2007; VWW 2007). within the VWW projectInterSoli so-called 2007; unionists CEE (VWP 2000s, the unionists focused the2000s, unionists was recently taken by over Wolfsburg-based 2004) 2002,2003and bargaining(EuroProfis, flexibility proceduresand collective 12 representatives, prepared FESbyafter shortlysite’s e representatives, theprepared different plants and discussed the building blocks of corporate VW’s the differentbuilding c and blocks discussed plants ofcompany interactive the form meetings took organi EuroProfis. The seminars representativescompany’s froma subsidiaries, CEE run the since 1998 by According the to local chair company’s officially union not a of was EWC the member andcommunication channels provided training by company. opportunities their Moreover, safetyor occupational at and intervening theby central directly health theygrasp rel affairs; issues of wouldalso solve company problematic the PolesEWC, hadthe forum’spresence 2001.Thanks a his to theb meetings since in In Volkswagen’s EWC, Poland is represented by a un a by isrepresented Poland EWC, Volkswagen’s In The claimed German chair colleagues Polkowice union his shared by the that knowledge Last, least, not Polkowice but Solidarność Solidarność members a in participated workshops series targeting of employ inter aliainter chair, a joint seminara department chair,HR for joint and the union Solidarność on employment regulations, on employment strategies, HR working time IG MetallIG ionist from VW Poznań utility vehicle plant. plant. vehicle utility Poznań fromVW ionist 61 unionists made a unionists cross-border wide use of activists, who continue activists, exchanges with stablishment, was a stepping wasstablishment, stone in 12 management (ibid.). management ated to workto organization ated ulture by comparing by theulture ies. Throughouties. the , he hadattending been, he Czech consultingCzech ccess to the to ccess ences, made all it P 2007). In 2007). P this zed annuallyzed at Although the . The initiative . The initiative vis-à-vis etter etter ee ee the CEU eTD Collection defend to unionists the interests of subsidiaries: foreign rather ascompany codetermination a perceived mechanism but management, gains for long-term investment securitygradualgainsand long-term the enhancement investment for of work they inflows, rejecting and production temporary strikebreaking tra theirsecuring to Germancounterpart Polkowice largely in investments thanks strategic power union use their of organiz asymmetry, the strengthening The above overview of cooperation initiatives suggests that Polkowice unionists m The suggests above cooperation initiatives Polkowice that unionists overview of 2007).solely of these the interest in other (VMP factories’ some andaccount, into plants other of problems these all takeindeed is there even, German more time… the t all our impression are my Germans] is this the least Unlike [And (…) Council? company. pus the to co-manage Works possibility to or the solutions World nor tools or neither have European would he colleagues, the of chair the f representative] EWC [Polish Przybyszewski Mr. say, let’s hav They framework. f pressed we if help codeterminationit would What posses. not do we that device the within act can councils works c our only crucial but clarifications, for ask a initiatives, certain with is m latter codetermination The rights. such enjoys Council The Works World nor European (…) justified. extent certain pre is representatives] employee German [of dominance ‘This I eet t l te ie te hae e er o oe f Volksw of [ one boom term on short heard a we on concentrate phrase cannot the CEU eTD Collection product and market policies pursued by earlierproduct in brands periods and policies individual market America,North Europe, America,and South Austra Africa East, Asia/Middle plant in the Belgian in R plant factory purchased after, the it Opel Soon Antwerp. in thelaunched GM fall Eisenach moved in of eastwards communism and car (E production Austria, in Ger(Portugal),component-producing facilities as well as Zaragoz (Germany), assembly (UK), Bochum Port Ellesmere in plants Luton, in plant Vauxhall expandedUK. by the company After further est WW2, Company profile 3.2. other gain s anEuropeans to offeringconcessions advantage over continued plants across-borderinterests and result wouldsuffer of as that their coordination, of transnationalism East-West the limits by areas excluded i it showing employing around 205,000 workers (GM 2010). The firm is divided into six business units: business employing six The workers into divided around firm is 2010). 205,000 (GM facilities thirty-one in c It companiesautomotive the world. in runs production moved to Rüsselsheim, Germany Rüsselsheim, moved to ( crisis GME that headqua economic It(Haipeter during the only recent 2006). was supervising Europeancompany’s the semi-ind curtailed the operations of locations. The an integrated unit country foundation no production with managerial 1986and in headquartered Switzerla in European was (GME) GM Europe created division The US-based General Motors (GM) is a real ‘global player’ (GM)andMotors The a oneGeneral ‘global is US-based real of GM has been present in Europe since the interwar period, when it opened a EuropeGM has period, been since when opened in the interwar present it Spiegel 2009a; cf. section 2009a; 5.7). 67 many and France.Following many ependent characterependent of a (Spain) anda Azambuja (Spain) n which Polish workers’ Polish n which , in particular in Opel , üsselsheim andüsselsheim the unionists at West at West unionists lia/Oceania. Itslia/Oceania. ountries, the biggest biggest the ablishing car ablishing rters were rters ites. ites. n assembly ast nd, a CEU eTD Collection plant in Trollhättan, just to in Trollhättan, in plant just it a sell January Dutch luxury car producer 2010to Opel Antwerp in site ( the relations unprecedented feature other mutua did hand, an from their shift mutual history’union actively by (Schäfer-Klug borders cooperating across which closely cooperates with which with closely cooperates smaller organizations: ( InKaliningrad (Russia). and 1991,GM Togliatti as acquired and the SAAB Swedish its Germany), SzentgotthárdGliwice (Hungary; later (Poland), on transformed betweenThe evolutionEuro of West cooperation 3.3. the managementboycotted thus tworemaining and unions. the by 30% of the workforce. Alongside with the dominant 30% of the the Alongside dominant with workforce. In and attra the 80% the West in East. in German Gliwice, 90% unions exceed plants level had workers. temporary site Unionization 30% about of 2,800 employees, whomwere openedZafiramodel1998 it and which a Astra produces car Gliwice, factory in Ukrainian venture its with joint Chevrolet partnerAvtoZAZ. Aveo cooperation in againbeen 2006t the it early since Żerań using Warsaw’s and 1990s in has district Inand Kaiserslautern.in aown the a component company Poland, factoryplant used to employed Rüsselshe productionat facilities: in car four plants German Reuters In 2008, GME had around 54,500InGME had around 2008, It is perhaps an exaggeration to claim that European GM unionists ‘have claim European that to GM unionists wri Itexaggeration an perhaps is 2010). A few days before the deal, the firm also announced its decision to close to also announced the decision firm deal, its few before the 2010). the A days BBC Związek Zawodowy Pracowników Opla (Opel Workers’ (Opel Opla Pracowników Zawodowy Union) Trade Związek 2010). Solidarność workers werepayroll, nearly of onthe whom half , and 68 Sierpień ’80 (AugustSierpień ’80 ’80) Solidarność pean pean GM unionists , there exist twoconsiderably, there exist and Herber 50). 2002: and On im, Bochumim, and Eisenach , accused with siding of into an engineinto plant), s. In s. 2008,the Spyker In in addition, o assemble l l tten tradetten cted nearly in in sembly sembly s ats , CEU eTD Collection benchmarking became a standardbenchmarkinga dist accompanying policy investment became was it (als only ofperiod GM’s (Fetzer EWC after 2008b) the creation but push other offer further-reachingpush order to even in sites concessions attract to factories’ and cost structures productivity emp performance. Despite of individual introduced end, and it field this regular of to comparisons work organization launched aimed project. dissemina scheme to the Template so-called The European at its processesTo thecut rationalize pla costs production and market and (Hancké overcapacities increasing loss share Schäfer-Klu 2000; GM1990s, wasWeakenedcar struggli crisis of the early the by industry’s the firm’swith coincided graveEurope-widerepresentation employee The EEF)European regular 1996that exchanges in Forum, started. Employee their cooperative behavior. Ialso possib discuss Drawingcompany’s literature, EWC. onthe secondary shortly‘ undertaken beforeand after European the unionists Poles’ West by In i thecodes I 2000s. in joint bids during investment of section, conduct this present negotiations the andjoint underbidding management with to of the elaboration s the 1990s in enabled the management to exert cost-cutting exert to enabled pressures ona the management particula fell to the Belgian and German levels (Hancké 2000). InLuton fell the danger, Belgian viewand to of 2000). German levels the (Hancké w allegedlythan those at theLuton higher company’ costs, 30% its unless plant factories. the threat Germanfew management later, Belgian GM A days and guarantees investment concessions weretime exchange and employment in for The 1998,when agreements in wasbenchmarking envisaging plant-level wage used The first contacts between West European GM unionists took place took the European earThe in between West first contacts GM unionists 69 loyee objections, inter-plantloyee r location, which would r location, economic difficulties. economic ribution at GME. It at GME.ribution nts, in 1996the firm in nts, te best practices the in ngconsiderable a with o known as the gHerber 2002). and accession’ the to le motives behind le motives the new production. ened the liquidate to s continental sites, s formation of a formation of firstat concluded and working and ly nitiatives nitiatives orkers orkers postwar postwar trict CEU eTD Collection plants. plants. plant signed a similar deal, trading signedplant for working flexibility apl deal, time similar 13 GM of standards sheddingreemployedat the firm thejob event in and the by would the car GM/Fiat that powertrain workers which industry, stipulated the after in Ford, conclusion Framework of (EFA), a the European second, Agreement guaranteesconditions’ the Thepressur powertrain workforce. for unionists’ wageconsulted plans, EEF employee onits additional representatives demanded As the firm agreement’s broke EWC Western EuropeBrazil. provisions and at the company’s nearly Fiat,with powertr which 15,000employees affected Hancké Bob communication with 2008). allegedlyat their angry so Germancounterparts they that them to speak not did EEFIn concession the British delegate among aftermath of deal, the 1998 GME unionists. round.It distribution investment saying goes without negativel the that rivalry ‘race that preceded thewere to bottom’ competitive each re a in trapped andcost other temporary advantagesshort-lived guarantees over job plants wouldgive betweencompetition 2000). locations Since (Hancké the concessions individual and he management to rounds restructuring disseminate information to about planned Instea exchanges.union EEFas for a failed constructive platform serve to f proposedgrudgingly Unionists cost-cutting program. the accepted individual localities. individual The review of EEF’s activities draws on Fetzer (20 Fetzer on draws activities review EEF’s of The The proliferation of plant-level agreements in the late 1990s indicates 1990s The that agreements the of late in proliferation plant-level Itbeyond interes EEF particularistic move to managed only the was 2000when in 13 The first concerted action took place in reaction to GM’s joint venture The joint place first took concerted GM’s reaction to action in 08a), Da andCosta 08a), 70 Rehfeldt (2007) and Banyuls et al. (2008). (2008). al. et Banyuls and (2007) Rehfeldt ant survival guarantees. ant survival rom the Spanish Zaragozarom the Spanish structuring and structuring d, it was it used by d, the be with line paid in , West European West sites , e the led to by having not ain facilities in joint venturejoint yaffected relations (personal and working and working in that that period in at up history of ts of ts s weres only only CEU eTD Collection programs financed by the firm as well as generous severancegenerousprograms firm as well financed as the by payme shedding EEF-led wit placejob to coupled Germany. Thanks was in negotiations, round for la future motto Duringbecame restructuring another unionists’ action. the personnel adjustments across West European GM plants. InE European personnelplants. West across adjustments GM the GM’s third protests and rallies to show their British solidarity colleag protests and rallies their show with to European Day of Action, during which 40,000 GM employeesEuropean participa during Europe across 40,000GM of Action, Day which theLuton so- negotiations to organized the factory. EEF management, Parallel with 2004, 12,000 workplaces were to be liquidated, and the bulk of dismissals (9,500)2004, 12,000workplaces of the were take bulk dismissals were to and be to liquidated, management policies that aimed at playing off individual sites against sites aimedmanagement at off playing that policies individual at the oftenLabor re firm is to presented as transnationalism a reaction The literaturetowards offerscooperation? cross-border interpr numerous schemes, voluntarilyencouraged workers to which their leave many jobs. closures, througheffect, noforced ‘no EEF dismissals’ plant its push to managed related a implementedway’ in ‘socially cuts responsible would be job weremanagement necessary agreed increases that productivity and EEF processes that both interpretation out Eur West all pointing by affected 2006, Banyuls FetzerRehfeldt the above 291) 2007,Haipeter et al. extends 2008). (2008a: a units launchedcapacity 350,000 whichby the Olympia program, reduction envisaged yetwasturned accelerat theat that to restructuring GME out process Vectra ofdespite its victory thewas the liquidation unionists’ However, plant. location, Luton savedEFA forced out as and 2001ruled a singed in production dismissals Another cross-border initiative was undertaken in response to GM’s plans to shut t shut response wasAnother GM’s to undertaken initiative plans to cross-border in What spurred relationsWhat from European of the open evolution West rivalry unionists’ 71 ues. The company’sues. The second nts and early and retirement nts e. In the same year,In samee. the firm the eachotherand (Da Costa (EEF and GM 2001). In(EEF and GM 2001). structuring and aggressivestructuring and opean sites to an to equal sites opean , but stated the that , but etations of the GM case.etations FA, the short-lived as it demand, which h retraining called unched in ted in ted in nd he CEU eTD Collection political entrepreneurs capable of mobilizing local union constituencies union entrepreneurs local political of mobilizing capable proved bar through unableplant’s long-term secure survival to their concession plants. While EFAsgoverning While would layplants. pr restructuring the rules down broad collective action. Kennes, Rudi Belgia his and chair, theKlaus GermanEEF charismatic Franz, Greeraddition, andthe role Hauptmeier (2008b) of leaders highlight GM and union cons creating thus extent, a of ‘shared Euro vulnerability’ sense between West argues manage between not did cross-border EEF that prevent to i competition and TrollhättRüsselsheim round and selection site between Opel bid Vectra In of critical heralso raised. the conclusion 2004company voices study are onthe Polish and West European GM unionists? Didthe European and West WesternersPolish GM unionists? Gliwic for account interpretation doeswhat this low-wage capturecountries. extent the inte To pre-emptcana Westerners’ part costbe as of to seen the strategy the by outside ‘old’304), expand exemplified EU critique (s of its GME plans to approachentr against new world.located EEF’s‘hostile of other the in parts weremajority undertaken defense European in sit initiatives of of West joint 2008a: finds that 305). national interests’ Hethe coincidence and (Fetzer also of local concludes attransnationalism thus GM was labor that ‘fragile, issue-spec simultaneously keeping l EEF in showed their own activities strong interests In activesetup. GMEa vein, (2008a) unionists Fetzer similar that observes offeredreflected specificgiven and countr concessions local a to interests aseliminated the closures, threat an umbrella p they of served for plant Alongside with the positive assessments of GM unionists’ transnationalAlongside coop assessments the of with positive GM unionists’ 72 comparisons with facilities with in comparisons lant-level dealslant-level that for cross-border for pean unionists who unionists pean ific and on dependent ific y’s relations industrial lyparticipating in ractions between an, Pulignano (2006) ants’ (Fetzer 2008a: ocations afloat. He es against those n deputy, as n deputy, ndividual GME ndividual ocess and ocess gaining. Ingaining. ee 3.7), section e’s interests, restructuring restructuring eration, the ider ider CEU eTD Collection promotion decided to set up a decided plant-levelpromotion set to grbelater, a awrong necessary. when January proved few in just He 1999, months production halls, innovative forms of work organization such as and team regularproduction work innovative fes forms halls, of work organization by GM employee representatives, from the time of the Poles’ ‘access from of theby time employee representatives, GM 3.4. 2008. and attract further investments in the car in and further sector. attract component investments adjacentin Nowak hoped GM that as would create was towns 2005), workpl of it 1999; new high Gl in (14% unemployment coalthe resulting Silesian mining and industry the In giant. automotive attractpai view to new ofand the the road a line railway 2016; until moreover, frompledgedand exempted taxation b thus to the authorities city region wasindustrialized Upper located The of a Silesia. investment in speci workers dissatisfied with relatively low remuneration levels rul and relativelyworkers unjust lowremuneration with dissatisfied due to the excellent working conditions at the plant, the of establishment adue the at labor working excellent the to conditions plant, Gliwice’sInemployment. released o reports after shortly press a with andassociated new, theirorganized families forwere employees sections shed light of onthese account next a strat by questions detailed providing viewinglocation, or labor East-West ‘insider’ did as relations an at it G Solidarność In 1998, GM built an Opel assembly plant in the Polish townof anIn Gliwice, OpelGM the thebuilt hea assembly in Polish in 1998, plant Initially, the new facility made a positive impression on its newly onits made hire Initially, a impression facility positive the new in period EEF:(1999-2004) early the Solidarność 73 unit. In unit. of unemployment the high view pening, its managerargued that pening, its ion’ to EEF in 1999 until EEF 1999until in ion’ to M remain hostile? The hostile? remain M ‘better’ type of industrial es of team leaders’ al economic zone zone al economic nful restructuring of d workforce. Cleanworkforce. d union would not wouldnot union egies pursued iwice and 25% oup of uild a uild vily vily tivities tivities aces CEU eTD Collection Guided by the above motivation, Guided by above motivation, the company management: the coursein conflict expected of them wouldsupport the that their Westerners Solidarność were andattended a representative department HR a by after union Pola but yet legislation was EWC not the2004, i.e. in period the mee Polish EEF place, when in observer the Eastto grantingby froman representatives Pola to status year,In the outside plant. central management’ same EEF the the obtained the unionists factory to 1999, he was and access had Polish consult thus to denied premises Gli Müller, in the chairEEFRudi at the of and German Opel. GWC During visit his delegate. Accordingemployee the Gliwice to representatives. and abstained thus ordemotion from dismissal joining the organization at the factory,rates overresulting competition and jobs man the intense 30% 2008. in however, hesitation, levelreac wasgrowinginitial and continuously the unionization Soon after EuropeaSoon initiated the Poles contacts the foundation, union’s the West with Council’ (PO1Council’ 2007). Euro the contact power must chance we thought we So […] such context. any Polish the in and have didn’t [GM] we i giant was which outset, very the from thought union powerful a a created we unless We such ourselves. against by step solely to management tha aware able been be we’ve creation, not union’s would the of moment very the ‘Since member won an official ballot and an member participated official meetings won as EEF Gli ballot in Solidarność activists used activists their private and approached links 74 Solidarność chair, he and his colleagues his chair,and he nd and Hungary. nd and Until y risk preferred to not (PO1 2007). Despite this s consent ‘enlarge’ to s nd’s EU accession, and’s EU accession, pean Works Works pean s with the with s mpossible wice’s solewice’s wice in hed nearly we t ful ful tings tings s s n CEU eTD Collection workers, who had been perceived mainly as competitors. As expressed by asworkers, mainly competitors. perceived been who had w their liaisoning union members.employees find Gliwice to were surprised the investment, in May in the investment, 2004 Gliwi in ZafiraKleinberg was much needed however, very time, 2008). At the same profit and (Sta thecontributed ‘deserved’ new the thus firm’s to capacities Given Zafira’s sales workers results,positive also Bochum believed tha produceto therefore extra the and model had take experience to the necessary on German host suitableWest to be the most the The facility new had production. hadplant goodreasonsOpelat the Zafira Bochum capacities. Employees Westerners focused on negotiating restructuring terms rather thanWesterners onEast terms restructuring onnegotiating focused European West to restructuring emanated GM jobs GME’s programs from m Inaatheearly Westerners much competitor. perceive as not the 2000s, did it yearsfirst capacities its establishment, Gliwice’s following of of featuredestablishment such ‘old’ links onthe Europe’s list priority low – hitherto plant the Polish a onthe spot’ contact ‘blind map of the European GM unions’ Solidarność The situation changed only in 2004, when the management announced plans to increase to changedThe announced situation plans 2004,when in only the management Althoughcoordinate leaders European of union theaware necessity West to were purposeful. There was a strike in Germany [in 2001], dismissals a dismissals 2001], [in Germany in strike a was There purposeful. []e okoc ws o cnicd ht hs line wt EEF] [with alliance this that convinced not was workforce ‘[t]he ee international labor solidarity, I agree to a dismissal of the 50% the of dismissal a to agree Isolidarity, labor international t for say age CEU eTD Collection bids. As subsequent sections show, maintainingdelicate As subsequentbids. a sections balance betwe with an action plan before individual facilities an madewith individual action their plan Alrea own before bids. In avoid closuresthreeinter-plant site EEF competition, and locations. to order Europeantwo West and their plants distribute production among Delta volumes the Initially,(Sweden), Gliwice the (Poland). (Belgium) and Antwerp manage platform:the Bochum so-called production (Germany), Delta Ellesmer successor’sofcapacities its and wasfor five involved planned 2005-2007 European fa Delta Group Solidarity Pledge and European 3.5. the Gliwice.to aand major was pay task for hike demands futurelower an advantage and investme wages during might working conditions constitute was it athe Poles, lesson of GME’s a competitive but benchmarking policy, future in the from that inclusion so latter cooperative refrain initiatives, EuropeanWest Europe’s For signaled leaders, necessit it union locations. the It distribution. placeinvestment took a to major 2004, parallel in restructuring dr In the late 2000s, Astra III’s life cycle was expected to comeIII’s to an to dis end.Inexpected The life was cycle Astra 2000s, the late The Zafira wasThebid of the c first East-West instance selection site was Zafira,do. And with it that like what we showed we can’ (PO1 2007). T it? isn’t sportsmen, what [...], anything proven yet with not have they if benefits gigantic like is It […] right? bit, a off One sense. make didn’t deal] concession [the that say wouldn’t ‘I Solidarność 77 in the period following Zafira’s arrival the in period following hey cannot demand demand cannot hey e Port (UK),e Trollhättan Port further concessions. For further concessions. they are able to to able are they onflict related to onflict related to en investment attraction investment en dy in February 2005, 2005, February dyin ment plannedment shut to has to show to has lso also proof their that yfor the Poles’ had to come up had come to ive at ‘old’ ive remaining ctories of ctories of tribution tribution nt nt CEU eTD Collection and demanded that the Pledge take account of the post-Zafiraand ofaccount the demanded the Pledge take that European of that their with West status unionists: as a important, particularly point consensualconsidered this Theybasis. sol asked wouldmakean stipulating the that provision Group extra for decisions the Westerners engage to Zafira theIncoordinate across experience, i of actions borders. union view designe asGroup,GM Working Delta the Delta GroupJoint also known plants, on Metalworkers’ (EEFunions’ (E Federation the European with Together 2005a). amongcompetition GMa dangerous the downward European spiraling of process str ‘ The signedonly versiEuropean Poles Solidarity when Pledge initial the its Solidarność in cross-border exchanges and hence they cross-border in and hence hold exchanges to decided 78 Solidarność status quostatus objected to this arrangement objected this to ategy’, arguing that it ‘lead[s] to to ‘lead[s] arguingategy’, it that d to inform other Group inform d to s it formallyequalized it s . Moreover, the Poles Poles . Moreover, the t wast also crucial for que document in nt. The unionists also Thent. unionists Astra IV Astra capacity nd set in line with with line nd set in ks, unionists from unionists ks, mportant for other MF), set upthe it ely ona plants and plants on was ples guidingples d to d to ant CEU eTD Collection Metall aThe ‘horror catalogue’, as demands, EEF by involved baptized EEF the position of a sole negotiating body. negotiatingEEF of a the sole body. position eliminated the threat thus off of underbidding, and against instead mutual each other unifiedThis labor play plans to front p challenged the management’s individual deadlines for boycottingrejected the of subm a list, subsequent number the In loca thedistribution. Delta ofan coordination, cross-border unprecedented act concessions,IV servethen onAstra to negotiations a which for basis were as the assignedWithin each deadline, expected file to an was plant outl ‘offer’ level down laid payments bonus minimum in a in givencountry’s the law to (EEF labor offifteen-shift extra theweek, elimination working payments for Satur whereas union the German metalworking assignedEMF thework EEF’s conclusion supervised of and subsequent by monitored role the between five facilitatingrapport in from Delta sit the unionists Delta EU GMEECO’s additional Group resources, to exchanges. and union EEF Thanks EuropeGMEECO (General des Employee project, Motors Cooperation) team organized numerous meetings for Delta Group during representatives, meetings for team organized numerous Delta point that […] if only one representation says r participation. participation. r 008 EFA (GOB1 2008; GOB2 2007). GOB2 2008; EFA (GOB1 008 rity with the Belgian site that had lost the bid an bid the lost had sitethat Belgian withthe rity d the deal, arguing that outsourcing was animporta was outsourcing arguing that deal, the d d that the conclusion of the local agreement could could agreement local the of conclusion thatthe d the future 2010’ ( 2010’ thefuture dental; according to Banyuls et al. 2008, however, however, 2008, al. et Banyuls to according dental; epared in collaboration with the local withlocal the in collaboration epared rks councilors, on the other hand, claimed thatthe claimed hand, theother on councilors, rks 14 ns of the Bochum deal regarding the status of worke of status the regarding deal Bochum the of ns 008). It is difficult to assess which side was righ side which assess to isdifficult It 008). an outsourcing deal signed by Bochum employee employee Bochum by signed deal anoutsourcing or 3 May – Poland’s national holiday. It isdifficu It holiday. national Poland’s – May 3 or Four locations –Bochum, Four Port, Ellesmere cil chair and EEF chair, simultaneously the chair o thechair simultaneously chair, EEF and chair cil 80 15 . Further and between EEF negotiations the Zukunftsvertrag 2010 Zukunftsvertrag Solidarność ult, the Belgianult, plant ime with each with ime ere getting to to getting ere IG Metall IG ) negotiated before the before negotiated ) pean again plants traveling he most most he d. When the d. When chair, was gether, ions facilitatedions d thus it wasthus d it unit, and thus thus and unit, give the plant plant the give t, not least due due least not t, nt topic that nttopic the Poles thePoles ings with outsourcing outsourcing lt to to lt rs from the fromthe rs d the d the f Opel’s fOpel’s lant. lant. CEU eTD Collection investment security,investment might for account turn, in the side of workers at each plant’ (PO2 2007). From this perspective, this theplant’ side (PO2 of 2007). workers at From each ‘wouldtheir they activities, haveargued, the selection ma been process (PO3 2007).plants Delta Hadrace’ sites’ representa the between individual During maintained they that selectionw process? the Poles the interviews, rounds in the light of its significant cost advantage therounds light in significantcost advantage of its during theirbe that term, not would plant they omitted could be investme certain Europe-like onlyexpected face to the Western long-term in difficulties Union (PO3 2007). TheSoviet economy’ statements the suggest that above Pol the former in uphea political allegedeast’ culture, of ‘different strategy view in regarding expressedscore doubts rankings investment also (PO1 in GM’s 2007). They threateastern relocation characterthey of the the immediate dismissed countriescreation capacitiespost-Soviet and in East Asi production of new restructuringreferring distrib Europe-wide investment to drives or IV.closure,Astra of downsizing or the Gliwice’s the Pol likelihood discussing When was betweenclosures five ‘equally fact and distributed’ the disinvestment (Fetzer the danger 291). unlikely Butpl GM is hand, unionists onthe it that 2008a: other of the a Groupby of ‘shared seems vulnerability’ sense be wit to motivated end of 2010( Belgian at GM,and however, turmoil the the the company financial si shut to decided In early ofseverance the and plant schemes. view retirement payments were ‘sociallyInitially,implemented in acceptable dismissals What madeWhat Flanders Today Flanders Today Solidarność 2010). 2010). adopt a cooperative stance in the course site in adopt the a Delta cooperative of stance Solidarność 81 vis-à-vis ’s participation the Delta in Group ‘old’ Europe’s locations. The ‘old’ locations. Europe’s ’ manner and involved generous’ and manner involved vals [and] destabilized destabilized vals [and] ution bids,ution rather but the to Solidarność , pointing to highPoland’s to , pointing ’s low capacity utilization capacity’s low utilization perspective; in the short- in perspective; rked by sacrifices big rked on h the West European West h the ories shortlisted for shortlisted ories anted to avoid a to ‘rat anted a. At the same time, tives not coordinated not tives nt distribution distribution nt ’s presence in es were not te the by ‘going ant es CEU eTD Collection payments, could not be implemented as they went against the Polish laborpayments, couldbe not law against implemented as the ( Polish they went further concessions. This rationale is best expressed by rationaleGerman further best expressed is a This concessions. whothe anyway, the would obtain Poles, investment members was from prevent to couldIn be it European argued fact, taskDel of of West this light the that main Gliwicetherefore, forrepr waseasy employee the it relatively EMF for coordinator GM: introduction ofintroduction a forty-eight-months’ working corridor long time the eliminationfrom ofSat list, payments the extra demands’ for management of themajority ‘horror in f requirements set catalogue’: out of the out three only amongplant five locations. Fromthe cheapest Delta and the the very leanest assertion, Gliwic this confirmed capacity. directly source no other Although IVannounced a wouldobtain and Astra site investment in share work the that at Polish it far that prior theThe selection to as intervieweeproce as claim to went expressed the following judgment: expressed the following judgment: Astra. negotiations on the new lead to not itself why relatively commit foundandto it easy explain sep the union discussing because the Polish plant was already lean, had adopted the proce the adopted had lean, already was plant Polish the because 2007). (GOB1 Western were plants confronted with’ being int atcpt i i; hy ee and the related cuts in bonus bonus related cuts in and the IG Metall lks and negotiations and lks ss, GME management ss, tarted there and and there tarted iated together, together, iated ss ht the that sses activist and activist a former e was indisputably outset it met the met it outset urdaywork, the ta Group EEF 2006a);EEF ourteen points eagues eagues arate offering le s full full s CEU eTD Collection bonus of approx. €140 to be paid from May 2007 on and a regular pay rise of be to of ason and€140 €125 bonus paid approx. ofrise from a Janua May regular pay 2007 improvements. Since GM’s counterproposal proved much counterproposal more proved improvements. Since modest, GM’s of regarding twenty-one issued a the union conditions addition, list claims working 2008, which bring altogether 30% increase would an remuneration levels. in unprecedented GWC, to serve to theGWC, as row in a ( mediator collective the and the Klaus management with chair dispute Franz, EEF asked of and t expected results, Franz advised that that expected advised results, Franz claims reached of the top years. exp a wonder small theconsecutiveIt deal about when to that was thus is an extra five-minute break. Talks onfurtheranincreaseswage five-minute extra were schedule break. twomonthly paid bonus 2007), in installment agree which a made to €700 the management Western assistance:fromolder broth‘learning 3.6. of Gliwice workforce. Parallel to transnational commitments, transnationalof to Gliwice commitments, Parallel workforce. conditions. conditions. European West struggle fromsupport forwa its its in higher counterparts production will be relocated there, it will be relocated anywa relocated be will it there, relocated be will production cheapest. […] The main problem in relation to Eastern Europe Europe Eastern to relation in problem main The […] cheapest. because anyway production the get will they […], contrary the To furt make to expected never were Poles the case, Delta the ‘In The Poles’ participation in the Delta Group did not involve unilateral involve the Delta restraThe Group Poles’ participation not in did h qeto wehr hs CE lcto wl nt diinly stim additionally not will European] (IGMO of view’ point 2008). location our from unnecessary [CEE] totally is which concessions, through this competition whether question the In line with the 2004 Zafira agreement, wages in GliwiceforIn wereZafira thr frozen agreement, in wages the 2004 with line Solidarność Solidarność ’s agenda. In March’s agenda. a demanded 2007, the union monthly Eironline 83 organizewarning a two-hour strike (GOR long 2007). When the mediation did not bring not 2007). the did mediation When ers’ (PO3 2007) ers’ Solidarność y […]. It is rather is It […]. y her concessions. her Solidarność ges and better working is not that the the that not is obtained considerable d for part the second d they are the are they ire, payrise [West int on the side int ’ ulate ee entered a he Opel’s he s ands In ry CEU eTD Collection which showed of for support a level high 90% thethe morning of participatedafternoon the shifts from workforce and in Theywereintervention also effects’ brought ‘concreteposit (PO1 2007). year.of the chair’s The engagement, st were EEF with very Poles satisfied compromisegood ‘a ( agreement’ The two installments. paid €350 bonus in additional January calledwell union an t 2008,as accept A mediation. Franz’s deal2007 envisaged incrwage from a November €140 the managem time eachexceptionally of this worker, forbut €280 pay high hike again Septemberof in for negotiations asked 2007,theDuringround unionists an second the not been concluded. beennot concluded. negotiate the end a agreement Until plant. of full-fledged collective for the advising the According to on outsourcing the practices. Poles cockpit production came too late takentoo and anby cockpit the over external tasks were production came against thoughextremely a the outsourcing Even of EEF’s intervention valuable. doors much higherworkers’ Gliw factories, thanage in average manual was where In a at respect, thewas job plant. secure this crucial to them the expe yearstheabout hea their healthreached continued due complain age to to forty of As more G getworkers in and to them more tasks. physically-demanding in involved couldoldereliminated easierbe workers whoseperformed that by jobs realize union the that Westerners’ his gradual did tas takeover intervention of claimed that due to their longerclaimed dealing theexperience in GM due with that management their to the theirnevertheless benefits ‘older from of learning brot underscored West European other to extended West assistance fields and unionists’ involved Eironline Solidarność 2007), but at thebut same expressed time a 2007), to wish 84 ’s demands workforce. among Gliwice Solidarność rience of West European of West rience hers’ (PO3 2007). They hers’ condition did not allow not did condition ively surprised that over surprisedively that chair, only after only chair, the ressing that his ressing his that 2010,however, has it ice, proved ks byks external firms firm, protest action, , the Westerners ent refused to vy workload, it it vy workload, inter aliainter easeas of the Poles the Poles liwice who liwice nd nd he CEU eTD Collection pressure law relation breaches. labor in management to onthe local joint complaint to the Polish Labor theInspectorate, Polish to complaint i condemning thejoint practice would be the future in confronted with (PO3 2007). were ‘alwaysproble step ahead’, better of .i.e. one had understanding Continuing disagreements 3.7. take not eventually did place. it the local change employees to towards management attitude Polish their wasa serve Gliwice. to i in shaming aconstituted The major problem event workplace discuss from to mobbing European all GM unionists t order in GM sites planned organize 2006).group to a The(EEFand also conference Poles Solidarność maintained the that The policy unionists respect former the e not dignity did of the were expire temporary tr to were contracts about forced workers to whose expand its CEE capacities. CEE its expand GM’ and of over Meriva a the otherthecontest’ context ‘beauty Opel by spurred recent and sectiontheThis Poles presents the West two between disputes EuropeanWest divergedan policy r plant official fromby line pursued increase production volumes at the Polish factory. In choose factory. where was at the to Polish increase GM 2005/2006, production volumes Last, but not least, the Poles used their links with West European exe to West used with Last, their unionists links least, not the Poles but Despite Polish unionists’Despite engagement Polish exchanges, cross-border in their posi Shortly before the launch ofanother the appearedShortly Delta there before Group, opportuni the launch 85 Solidarność ms that the Polish plant plant the that Polish ms epresentatives and EEF.epresentatives and (PO1 2007), but erners, one in emerging ain their successors.ain n line with which with n line nstrument andnstrument force and filed EEF a s plans to planss to mployee mployee tion often tion hat allegedly gathering ty to rt to to CEU eTD Collection ‘The question is: how to do it [i.e how to sign the Solidarity Pled Solidarity the sign to how [i.e it do to how is: question ‘The capacitiesadditional for create to the new Gliwice unemployed: in jobs regiondifficult the economic Upper and in stressing the ne situation Silesian Moreover, reputation at its stake: put competitive race would as it for step down to the f union the new wasworkers’ it model, impossible related to hopes vi EEF.argued in subject prior within to discussion More they that importantly, European unionists, alia Meriva, guide principles set out should Meriva that p it selection site the EEF the so-called in thesupported shortlist. firmly bid; the Spanish Europ Sp placedlocate of andand the Meriva, new the Gliwice the production Opel location and for this reason, the actrejectedlocation and by was for reason, this the Spanis to andthe Pledge, wouldstep hand down Poles from over the bid the the investment newat areare thecreated expense of jobs sit another ‘onlyif they not a ‘guarantee of fair and equitable capacity utilization at GME a all pl ‘guaranteefair equitable capacity of utilization and but also sharing the good things.’ (Solidarność Opel 2005b). also sharingbut 2005b). good things.’Opel (Solidarność the difficul in other each supporting only involve not does Solidarity plant. iwo h 0 nmlyetrt i h ein?()W r a are We (…) region]? the [in rate unemployment 20% the of view o wn Mrv i or atr! () f e dp sc psto, nob position, such adopt we If cease (Solidarność will meeting, unions Opelcome exist’ 2005b). the next to to (…) factory!> our in Meriva want not p the union’s used what could be called ‘developmental referringcalled what could a be to rhetoric’, used representatives criticized the factrepresentatives the that criticized Pledge had been not 86 Solidarność . During meetings with West . During West meetings with psychological situation: situation: psychological e’By (EEF 2005c). signing ants’ and the demand that rocess, including ean Solidarity Pledge in our name, do name, our in ge Meriva] in Meriva] ge ant? (…) This This (…) ant? cessity to attractcessity to anish Zaragoza on developing developing t situation, situation, t ew of Gliwice roduction roduction ody will will ody rom the inter inter h CEU eTD Collection programs, countr and CEE capacities in post-Soviet GM upnew was building production in Westernproduction Europe’ in ( particularly high in the light of Gliwice full capacity utilization; be particularly the light in capacity utilization; full high of Gliwice the time when West European plants remained underutilized and when European underwentthe painf time West remained underutilized plants company’s ‘towards (EEF 2006b), expansion and pointing the the East’ far close to special Thewer Westerners economic Petersburg, near Saint zone Russia. a of ca the Portugueseliquidation given factory, GM opened the to parallel that as a ‘preludecosts, which byOpel’s of was the GWC end to interpreted German Portuguese due Azambuja the in site’s to its statement, shut GM decided plant to Short closure with Opel were the (EEF 2006b). plants near in future threatened announcedIn fiveEuropeanGME West President of twoout that May 2006, facilities. and CEE Asian its operationsrelatedboost while reducing GM’s to plans to process (PO2 2007).the as Still upcoming more far selection important Astra EEF the delegate, According the Polish investment. pressure to th obtain to offer concessions not On did the the Meriva attract other to hand, additional the Poles capacities in the future (GME 2006). thecapacities future in 2006). (GME and plant f useproductionstated expand at its the the that to company Polish intended Gliwicecosts in would beZaragoza, twice Pre GME as as Vice but high in ini GME assigned arguing plant, theproduction the Spanish Meriva to the that back theInnot management. leaving to Februarbid, downfinal from decision the the Another major disagreement between unionists from newAnother between and from state EU major old member disagreement unionists Einblick 2006). Its assessmentIts partially seems 2006). at least justified 87 sides, the considered union e very of thee critical sident Ericsident Stevens e new not was model production at West at West production , ies. tial investment investment tial Solidarność Solidarność ly after this r plant in a in r plant automotive automotive high logistics ul restructuringul fact that at that fact y 2006, ull ull European s wass did did CEU eTD Collection plans to acquireplans to factory.Żerań of a become GM, part the eventually not did Europe and in first site manufactur was units to production the capacity 300,000 of Warsaw-produced were primarilyexported Europea Chevrolets West to as initia takenGM’s joint-venture over Ukrainian Just partner AvtoZaz. by and thereforwhich down could slow revert the orprocess, restructuring at least European would rather amongcapacities distributed unionists Chevrolet see ‘t manufactured markets,Soviet Chevrolets were be primaril to Warsaw sold in contrast Petersburg in the Saint to InChevroletaddition, vehicles. whic site, the coffin to 2006, seemed offactory ‘old’ nail another locations. Europe’s The poss profit to plants the from Polish the company’s towards drive the East: capacities, and argued t expanding eastern condemningGM’s its of policy Theymanagement’s rejectedanother a Poland. joint purchase in plans to site with that accompanying the Zafira and Meriva bids. It accompanying that with Zafira shows that and bids. Meriva the ‘ competitive The rhetoric used by Gliwice unionists in the relation to the Warsaw to the factory relation in The unionists rhetoric Gliwice by used hs s why is many for This expansion this Europe in part Eastern take towards actively must expanding we is contrary, GM that fact to the reject at and offended Solidarność WNP 2010a). 2010a). ut withdrew a year after, and the Korean Daewoo bec Daewoo theKorean and yearafter, withdrew a ut s but does not manufacture models under a single a br under models manufacture not does sbut icated that due to lack of new orders, the plant mi the plant neworders, oflack to that due icated did not express its solidarity factories its express not did post- with in onsiderable difficulties finding an investor in the investor an finding difficulties onsiderable y, the plant underwent large-scale downsizing and e and downsizing large-scale underwent y, plant the orry of the plant’s union representation is that th isthat representation union plant’s the of orry 89 16 Still, it is difficult is it assess Still, to whether nts to the possibilities and possibilities the to nts ings towards the Warsaw the Warsaw towards ings all locations all prompted the h West European h West living bor costs. bor to benchmarking to ng national within eded in in eded oining the ‘GM ned case, built onthe built ght be closed if closed ght be aftermath of of aftermath rategy mix and (PW (PW and ame the ventually ventually e site e der der CEU eTD Collection parallel to its cooperative engagement,parallel cooperative its to much risk by not Pledge.did Fin the European Solidarity production signing and they thus Fetzer 2006).and Pulignano 2008a was plants whichindividual indicatesrivalry cross-border that between transnational selections.site Still, ran activism pla to parallel princ coordinating joint acrossformulated strategies and borders their five factories, could they the be shortlisted would Poles be sure assign that favorable Second,plant’s view most co in capacity offull their utilization. place took First, Zafira investment was it after the due factors. three to towardsthe their arrival shift The to a cooplant. a new subsequent more of model unilateralwere initiallyfromfar restrictions accepting and Westerners make to sought sure coordination with comply the that princip Poles In could selectionas serve site attenuate an to order bids. advantage during signi European as threatposedplants, site its a West to considerable strategies and anti-outsourcing policies. strategies and anti-outsourcing policies. European locations by joining the Delta Group, the WesternersEuropean byGroup, the supporte Delta the locations joining the vowed underbid union of that to to engine the not While West VW’s similar Polish units. make exchanges,cooperation interest-drivenreciprocal which at involved GM took the shadow of rivalry. On one hand, the Poles’ involvement in cooperative in one venturesthe hand, shadow the On reste of involvement Poles’ rivalry. at the companyc IV transnationalism selection site however, bid, labor course the local with Despite disputes management. front’s of the its join succe As for East-West union relations, the chapterAs for argued the that of establishment relations, union East-West All in all, the all, evidence in All chapter this presented in East-Wes that suggests Solidarność 90 profited from EEF’s advice regarding EEF’sadvice strikeprofited from concluded dealconcession secure to a nt-level concession bargaining,nt-level concession ficantly lower costs ficantly labor iples guidingiples investment that ensured that Gliwice’s ontinued to take to ontinued in place not fully not (cf. eradicated d Solidarność sts structurests of out the ed Astra IVed Astra the eastern the threat, t European union European union t ss during Astra during Astra ss les. But the latter perative stance stance perative s thes case the Polish the Polish in the in d onthe ally, CEU eTD Collection premise of investment security. Ifpremise they might was of security. the investment missing, latter (see turn,transnational might in This, turn their solutions from away attention windows of forthat opportunity’ had a time remained closed long ‘old' uni Europe’s to corporate in actors affairs,couldengagement of t lead state increased to facedabsence W by Grave channels. difficulties national bargaining of order over in e the the regain control their international counterparts to Eastern responsibility cooperation, rhetoric actions theby ‘developmental justifying their vis-à-vis their rank and file. On the other hand, the Westerners cooperatedandother their rank file. with hand, On the the Westerners 91 ’ and evoking their’ well abstain from abstain well est European localities hus openinghus ‘national section 5.7). section 5.7). nvironment in the nvironment in onists. onists. CEU eTD Collection potential benefitspotential the of and Germans cross-border for both liaisoning we brought fromgains derived process,byrelocation national solutions about the production and of and assembly Poland Salzgitter bus from Tur to the German plant of compa view in cooperation failed MAN: 4. Chapter due to the relative attractiveness of alternative, national options. Under options. due theattractiveness the z of relative to national alternative, the sense in a an MAN’s is failed instance unit bus labor of transnationalism, term section in 1.4.2.The the compcross-borderthis absence cooperation at of union advantage. a samerelocation theyfreeze wageadopted t time, Atthe process. forcontaexchanges by fear German initiated counterparts such that their theirproduction and shunnedhowever, inflows to sites thus welcomed cross-border new from bus-producing unionists with abr locatedattempted liaison to factories secure for to alternative workersgoal from jobs unattainable, proved and lobbyingworkplace political the relocatprevent mobilization to strategies used a suchemployee national as variety representatives of location. Theresulted sheddingat evidence large-scale the former in job This chapter This between and German relations at examines MAN Polish unionists gradually Throughout theCommercial company Vehiclescom the 2000s, Group. moved Introduction 4.1. restructuring restructuring 92 o retain their plants’o retain cost their ion process and, when the and, process ion when liquidated units. Theyalso units. liquidated plant-level bargaining, plant-level the Poles. Cross-border the Poles. shows that German that shows cts would hamper thects oad. Polish unionists, unionists, oad. Polish ero-sum conditions re than higher ny key, which key, which ssigned to any was ponent CEU eTD Collection Europe, invested the company Europeanimportant Denmark, factoriesUK are located and Be MAN Turkey. the in approximately followedof ibid.), 2009; workers each.byand with Poland, 4,000 Austria also a 47,743staffis significant employer:aits works more half Ger in than of (MANIndex thirty the German Stock turnover, DAX, firms composing MAN one is of renamed Augsburg-Nürnbergbilli around(MAN). Maschinenbau AG €12 With The 1898,when history holding the to Germany-based industrial back t MAN of dates I Augsburgand largefactories Nuremberg merged. in machine-building 4.2.Company profile with cooperativeestablish links from the company’sunionists who, taught division experienc theby unit’s truck bus Thechapter the company’swithin the GWC. also stra briefly documents wasactivism impeded additionally conflictsby between German emplo The first area is managed (byThe Group Vehicles first area MAN managed Commercial is are MANareas: four holding’s the manufacturing of into divided key operations of indus and enginescommercial the andprovision diesel turbo-machines vehicles, India, trucks whichIndian Asian for markets. assembles and the East and the theeconomic initiative deepening crisis. Theirsite’s establishment. viewin failed, efforts of the inadequa however, independent business unit created in June 2003 and headquartered in Munich. Itsindependent created headquartered unit business 2003and Munich. product in June in inter aliainter Solidarność Solidarność in South venture South in aAfrica andjoint and in runs Mexico at the Polish truck factoryat the Polish after immediately the 93 MAN Nutzfahrzeuge yeerepresentatives n 1908, the company wasn 1908, tegy of German of tegy te resources devotedte to many (26,768 as many (26,768 on annual trial services. e, tried to yond ), an 2010). It 2010). Other wo CEU eTD Collection Metalowcy producing site in Pilsting, Bavaria, andproducing by Pilsting, downsized eventually in over site was taken encompassesportfolio well buses, as coaches,component engines trucks, as and bodies. Despite the plant’s difficulties, levelsbodies. Despite unionization remainedre the plant’s semi-finishedplant’s section the bus b early in 2007, putting 400remained in out 2003,only of 1,800workers employedbyprocessa accompanied out cuts: was massive job workers. It specializes in the manufacturing of bus chassesassworkers. theIt manufacturing in and bus bus specializes of wasfactories. unit 1998and establishedgreenfield in as site employ Poznań a The of the workforce research, of around the unit to bus 90% belonged Middl assemblycomponentcompany’s production and CEE and in the plants the to the factory Lowerbus gra witnessed the Saxony’s in townof Salzgitter 2009,whileGmbH the in majority Plauen, moved Saxony. to operations of its Atthe same was Inconsidera bringingearly division Vehicles the the 2000s, Commercial ofdue subsequent As the a poor to restruct unit. result performancebus of its (MAN employedIn 36,000workersapprox. vehicles. 2009). worldwide 2008,the Group Salzgitter. The local (2,400 2007),construction directly in which f of the relocation related to bodies’ was bus markedStarachowice onthe set out path increasing by of stable development acquired 1999,employment 2003did in werein Only initially negative. MAN trendsby 2006,the level unionization At thein brownfield has risen factor 30%. to Starachowice active of fraction workforce. Finally, in October 2007, MAN opened a nea truck Niepołomice Finally,workforce. in 2007,MANplant opened October in In Poland, the only postcommunist countryIn three the company hosting owns postcommunist the MAN only Poland, plants, union initially had limited appeal among the workforce but since a leaders among since appeal the but initially workforce had union limited Alternative MetallerAlternative Solidarność and Metalowcy was present in the factory’s in works was council. present 94 unions jointlyunions nearly represent 40% of the IG Metall latively high. At the time Atthe time high. latively embly. The local dual relocation of bus dual and a but small uring,coach- the employment levels levels employment s fors commercial t the Salzgittert Visteon Bus s nearlys 900 e East. The r Cracow, ble losses hip change hip y, rom time, time, us us CEU eTD Collection plants. The Germans managed to prevent the move thanks to wage concessions and The the plants. moveconcessions prevent wage the thanks to to Germans managed €84 million in the consecutiveyear in the million managem€84 As a 2003a). April result, 2003 (MAN in metalworking( sector of set social aboveelimination provisions the those regional in agre collective 100 Salzgitter workplaces by100 Salzgitter labor-intensive workplaces the most relocating pro yearsIn afterthe considered the management Poland, launch in of 2001,two cuttproduction According an to Salzgitter decision MAN launch When to announced component bus the Poland, production in its not did perceiveSalzgitter as unionists a new threat their investment to the The relocation first 4.3. level reached unionization 50% (MSN 2008). year a heavywhoseassemble Just after range 400employees vehicles. division, this was this due a to strategy misleadingdivision, mana adopted information theby impacted financial onthebrought division’s bus it performance: mill €100 production facilities and deliver their products worldwide.’ (IGMM1 2007) 2007) deliverproduction (IGMM1 worldwide.’ facilities and their products build something small, a small plant. And this small plant wi plant small this And plant. a small small, something build n nw i fc, oh oain [n oad n Tre] r [full-fledged] are Turkey] and Poland [in locations both fact, fa in Turkish now, the about And same the said Rus they Belarus, Before or that. market, like Polish something the to Europe, Eastern to solely I i cmopae ht hy te aaeet le Te say They lie. management] [the they that commonplace is ‘It In the early 2000s, however, the number of bus orders fell significantly, which dir In fell orders which earlybus the significantly, number of however, the 2000s, übertarifliche Leistungenübertarifliche IG Metall IG Metall officer monitoring developments at the company’sofficer at bus the developments monitoring ). 95 cesses to the new Polish the newto cesses Polish ll deliver its products its deliver ll the site’s creation, its site’s creation, its the they are going to to going are they own facility. ion losses in 2001 and in losses ion i, Ukraine… sia, ement for theement for ctory […]. […]. ctory gement: ectly ent ing ing CEU eTD Collection bodies’ production from Salzgitter to Poland and Turkey, which would result in the lay in and Poland Salzgitterbodies’ Turkey, to result production from which would announcedarestructuring tough plan involving ordinary procedure. layoff Inofright refusal, MANthey had the company. ini case the to the sourcing would join the regionin decigivenemployees to a (MAN deadline two-month The were 2003a). compa or metalworking training,additional beautomotive employed at could other subsidiary VW with a cooperating local employee company sourcing (eventuallyworkplaceswere working adjustments) w saved 400,as to time 100 due would leave schemes. retirement remai early under the voluntarily The plant theby deal,with f over would MANbe 150employees taken truck Salzgitter’s workersdepthe compromise the regarding closed of was the future from struck theyIn their of decision. reverse 2003,after negoti not would months September several lower andhours, the made management longer materialbut division, it working costs required i could beefficient obtained through more savings organization work advantages and improve (…) [MAN’s] competitiveness’ (MAN 2003b). competitiveness’(…) 2003b). advantages (MAN and [MAN’s] improve will use their and w Poland atthe Turkey, the in widening plants [it] production (…) of ofout decision 1,800Germanemployees. by its The justified company arguing tha merely as a ‘procrastinated layoff’ or ‘sidelining’ (merely layoff’‘procrastinated ‘sidelining’ as a or theinterests emp to of workers, viewing the future company transfer sourcing adequately not did and stancesoft argued the compromise secur during the talks that Salzgitter employees very t of They proved the critical deal. accused To the surprise of local Salzgitter IG Metall unionists initially restructuring rejected the that the plan, maintaining unionists IG MetallIG officers councilors, and of the works majority 96 inter aliainter Newsclick the relocation bus of semi-finished 2003a). Moreover, they criticized they2003a). criticized Moreover, he negotiators of taking ahe negotiators of taking AutoVision and, after AutoVision ning 500employees loyment agency n the logistics actory, whileactory, 50 artments. Inartments. line t ‘[t]hanks to to ‘[t]hanks t nies operating ould move to move to ould e the e the de whether clear that tiate an off of 700 off of age cost age ations, ations, CEU eTD Collection booed’ ( Metall plants’ affairs. In fell substanti plants’ affairs. numbers employee Starachowice, and Behmer in hardship wasavoid aalso argued ‘thecompromise more way only serious to the that workforce shelterrestr to was older from it impossible employees the average The leadersdismal. refuted union claim,a a arguing view high in that of the we whose activists, chanceselderly ofand ajob finding employees union new groupthe criteriaw for the that claiming agency workers’ selection, company. Some of them established a self-assistance group wentestablished co to acompany. and self-assistance of Some them off themoved sourcing to directly 280workers agency, were while laid the remaining be basedextent criteria.employeesIn oneconomic end, vol however, 162 only the considerably deteriorated in the the aftermath in deputy When chair deal. considerably of the deteriorated relations employeeOverall, between seemsthe local rep the that it MAN were highly desired; using the metaphor of the local usingMAN were the metaphor highly desired; of In 2003. the in plant rate of region, the the 35% Starachowice in view jo unemployment 900workersof the the initial half local only factory, truck-producing with of STAR Even then, however, the unionists refrainedEvenunionists then, voicing however,rise the from demands: pay fromresult Ge of productiona 2003,whenrose inflows in the as numbers employment 2007).doors and get ‘It in’storming to order (MSS windows moved’ all in the only company’s ’s unit tried defend the’s to restructuring heduring unit wa meeting, plan employee Throughout the examined period, Polish unionists were Throughout concernedperiod,examined Polish primarilywi the Newsclick Newsclick 2003c). 2003c). 2003b) and warned that forced dismissals would even to a greaterevenforced a to and would warned that dismissals 97 Solidarność Solidarność ally, takeover MAN’s following resentation andresentation the workforce ould consist of many too consist ould ucturing measures. They ucturing measures. They chair, ‘people were ‘people chair, urt ( of Salzgitter re allegedlyre Newsclick untarily s ‘ruthlesslys remaining at remaining ge of the ’ (Schreger by the by rmany. rmany. th theirth bs atbs 2004c). 2004c). IG CEU eTD Collection plants rose by between €50- €60 and were supplemented with generous bonus p generous rose €60and with plants were by between supplemented €50- bonus wages As abolder and result of pay St at the Poznań rise negotiations, demands. In collaboration with the Polish office anFoundationPolish In of Ebert and collaboration the Friedrich the with councilorsfill decided anshedding end, Salzgitter to works to came process Oncethey units. find acreated partner the at reliable the newly Polish would evencounterparts from knowabroad. The whet bus-producing located not did Germans units rivals’ raising exchange or Information costs 4.4. 2007). labor market, the number the Polish tightening with allowed of coupled of orders, the changed the growiproductionadvantage. stability 2007, when and in only strategy Their a retainhaveemployed conscious to of tactic Poles an been element the by the firm’swith decision relocate to production from Germany labor-intensive Given time. t that waslatter more at that was plant favorable located, Wielkopolska, in even wher unit, situation counterparts ateconomic though the Poznań the str Aemployment similar afteryearseconomic levels of turmoil. the hoped stabili to By Starachowice accepting unionists the freeze, wage Prior to the 2003-2004 relocation, no links existed between German unionists and existed their the between 2003-2004 to Prior nolinks relocation, German unionists o ifainr a rss 2-0 lt €-, e ya] w ti 2007).(MMS we year], per [€5-7,5 zloty 20-30 rises, pay agreed inflationary we for So ok. ok, – hirings new reconstruction, Modernization, plant. the in invest being was money of lot whole a that knew we 2006, and 2000 ‘Between 98 strategy? ategywas adopted their by he freeze wage coincided ze productionze and ghtened our belt.’ our ghtened their plants’ cost this knowledgethis gap. 2003-2004 job to Poland, it might it Poland, to ayments (MMP ayments (MMP IG Metall arachowice m to make to m ed ng ng -linked e the her her CEU eTD Collection border coordination and information exchange. In their opinion, as a result ofIn as theirpr a exchange. opinion, border result and information coordination bringing ofproducing representatives truck facilitie together and bus MAN’s and Germany, Poland in Turkey. manufacturing sites bus Leben, training cooperationArbeit they a und for launched center project Turkish colleagues to MAN’s EWC andTurkish the colleagues Euroforum so-called working EWC group –EWC’s MAN’s to incl to vowed intensifycooperation. to In the firm unionists addition, pressure onthe representatives theunion three were from develop to countries proposals r and the EWC Directive.Consultation workshop,main teams consis small During the particular onEmployeeworkers’ the Directive with in participation, employee acquaint to series wi representatives the designed of seminars each the aim, 2004).project To‘workBus this against e (MAN not other’ together, experience, theycrucial that aware was information and it of were c their re and newInrecent strategies. HR changing ofconditions the economic view (MGE wereGermans would be 2007). thealso convinced Poles interested The cr in that the to prob attention who paidtruck little factories’ representatives, 2007). (MWC discussions Moreover, bodies were both servefruitful forums for as thethe meetings were shor German works too and council Euroforum at EWC chair unit, bus delegate 2004EU accession. Neverthe electeda after Poland’s EWC/Euroforum MAN’s si EWC. was joint Thenot more situation Polish favorable regard the in to Since thereprTurkish unionists. Turkish factory was the outside EU, located its andclaiming between foremost aimed links at first it establishing that t Thegrowing MAN that exte project’s workers were a to stated outline Interviewed Salzgitter unionists presentedgoals m Interviewed the in project’s Salzgitter unionists 99 lems of the bus division oflems the division bus Information and s. s. hem and the Polish and and the Polish hem th EUth regulations on onsultation rights and onsultation unionists representing unionists ore modest terms, ore modest egarding futureegarding nt confrontednt with location oduction oduction esentatives did did esentatives less, as noted by dominated by tes, which nvisaged a nvisaged ude their ting of oss- t to to t CEU eTD Collection plants’ representatives each month andon the company’s month briefplants’ representatives relocat them each purposefulness of joint activities. The Ankara factpurposefulness not activities. ‘was the that of joint memorandum Starachowice justifie i.e. regular that consumed’ take not 2007), did was place, (MMS networking councilors. only a to extent the full Gerplans, whichinformation oncompany was by enjoyed ea they reason, sectionallegedly 4.4).former this For needed Union (cf. Soviet Turkey MANcomponents production and and faced within transfers the thus to a of threat transfers, factories producers expensive had the l become most the Polish of level that enables coordination of joint actions and Bus of support’ mutual (MAN joint levelcoordination 2005). enables that ‘to ensure if unclearlygoalwas employment stated, consultations, of these at threaten otheroutsourcing would employment that activities and measures developmentsexchange at their Designated were sites. information on unionists 2005and memorandum, signeda vowing June joint in gatheredagain regularly to Ankara in initiative were Theinitiative Poznań mixed. formally agreed to share plant-related theyformallyagreed share to information, remained highly In Even 2007).proved Starachowice t (MMP reserved. though contrast, much unionists more Pol conflict presented methods at resolution couldGermans the be used the by of hoped relations the that Germanhe industrial system. had also knowledge lacked He After a preparatory meeting in Poznań, unionists from GermanyAfter Poland, Turke unionists and a Poznań, meeting in preparatory On the Polish side, the reactionsOn seminar the exchange Polish the German-led to and information Solidarność chair in a following manner: chairfollowing a in manner: Metalowcy chair assessed the project positively, claiming that assessed claimingchair positively, the that project 100 skeptical about the skeptical at locations at all the ion plans, ion abor-intensive other factories. The ish MAN ish plants rly and precise to contact other contact to fully man works man works d by the certain y hey CEU eTD Collection primarily as another means undertaken by German unionists to keep to undertaken their primarily unionists pla as another German by means was Starachowice best expressed the by information that could benefit the latter. What is more, the theinformation is latter. could that coo they benefit perceived What atThe their aware jobs facilGermans’ Poles, retain to of the struggle for coordinate to borders across theimpossible unions reloc view actions in of the in theeliminate countries two thein need further and relocation: for the conditions encourage which, bolder turn, would equalize raise in to demands, wage the Poles The suggests above of the statement the eyes in that production to us (…). So there is a conflict of interest and ther and interest of conflict a is there So (…). us to production motivate us so that we are, so to say, Euroforum Euroforum p prevent p prevent al pay ndon their s GWC GWC s ve e] has e] CEU eTD Collection production was particularly labor-intensive, he argued, as it took 1,500labor took as hoursproduction ass it was to he labor-intensive, particularly argued, two Polish locations in view locations in advantagestwo Polish Poland’ ( in of ‘cost Salzg announced theSamuelsson entire from assembly city bus would be that moved early in MAN’s unit, rescuebus Managing loss-incurring 2007 Direc July the 4.6). vehicles fordue (cf. the CEE transport increasing to in large section demand ofgrowingcontrasted whose the truckwas turnover the division, success with from The relocationsecond 4.5. and from Polish units. unionists German bus-producing intervention GWC’s atmotivation, hindered cross-border liais the attempts interest bus represent create to even a separate if the intend latter not did betweencommunication channels‘bus as their people’ a to dominanc threat the be the that excluded truckVehicles sites’ representati Group, cannot it MAN’s thefurther of stronger within the Com truck Given position division exchanges. losses in the second quarter of the year the second in losses ( quarter of the bringing againnegativerecovery unit mill bus €17 2007, results in 2006,MAN’s in showed would save €45,000 per unit ( savewould unit €45,000 per easy is calculate wage Salzgitter,opposed it in €35 to as of Poland to in €5 the moreover,it; requiredhigh technical With a it and manual skills. precision consideration in mind, Samuelsson plannedconsideration the Samuelsson first complete ha to mind, until the in relocation Despite the painful restructuring measures implemented in the early in Despite the painful measures restructuring implemented ceteris paribus Süddeutsche ZeitungSüddeutsche ) by transferring the production to CEE. With this With CEE. ) to by the production transferring 104 Süddeutsche Zeitung 2007). Its 2007).performance dismal ves perceived newves ation. Whatever the ation. that thethat company oning between 2000s and a short 2000s tor Håkan verage hourly e in Euroforum, e Euroforum, in 2007). Bus In to order year to yearyear to itter to the itter to lf of 2008. lf of 2008. mercial emble ion ion CEU eTD Collection jobs at their bus and trucks producing facility would be cut. Local be at producing cut. their andjobs re bus facility trucks would and Metall Metall the Salzgitter of to The workforce, 1,400out that 2,600 a news shock meant as as came it Wolfsburg without VW Golf’, complained Hartmut Meine, the chair of Lower Meine, the chair Golf’, Sax Wolfsburg VW complained without of Hartmut officialswould fight the stated transfer:prevent they ‘Salzgi to that retirement schemes. Finally, the unionists promised the that remainingretirement the unionists Finally, schemes. offlaid acceptable ofbasis ‘in a voluntary manner’, dismi socially i.e. onthe area. this in The existed that the truckwith remaining 500employees division 400to chasses retainbus negotiation thanks in to managed nearly production team 500 jobs prospectivethe department, opening of logistic a the 200. staff with new of peopl gavethecrankshaft local 250 truck which to production employment at unit, und someworkers the sources thanks increase to axis the unit liquidated 970) in even from awaysecure course, the relocation alternative from they to managed jobs turn the to for theAlthough unionists agreement proved was it impossible reached. the talks and their reluctance to offer constructive solutions (IGsolutions 2007). the and talks offer Metall their to constructive reluctance management’s foragainstcalled the a procra workers 1,400 bus protest reached the works Septemberemployer. in a the negotiations stalemate 2007, When the relocationSalzgitter region, issue and who participate publicized andLower origEnvironmentMinister Minister the federal Saxony’s Prime considerable mobilize ac support ofemployee political side to managed district ( district officials and bus unit works the councilors manageme with officials negotiations initiated and unit bus This display of employee anger sped up the negotiation processa anger da few displayThis and negotiation of sped employee the up Die WeltDie 2007). Shortly after Samuelsson’s statement, a team consisting statement,2007). a Shortly of team after Samuelsson’s 105 tter without buses is like like buses is tter without d in discussions with the with discussions d in workers would stinating during stance tors, in particular in oftors, gional gional for 900(according for to inating frominating the Importantly, the ssals andssals early IG Metall e, as well ase, as well ony’s company council ys an later to synergies to were be to nt. Thent. IG IG IG CEU eTD Collection been worse’, the chair of the Lowerbeenthe worse’, the of chair Saxony’s production to the Polish sites theproduction would bring Polish to moreThegood. the harm wa reason latter than workforce voted in favor of the deal, the works council fractionofworkforce the deal, council of favor the voted works in 2012.Although until 86,6%continuity and of at employment the of Salzgitter production guaranteedthe September and t January ofin deal therestated provisions 2008,which (see 4.6). Workplace an was restored thanks to section security temporarily ti Salzgitter workersexpected wouldfollow, this further that relocations aggressive’( The retain the workers atmosphere to ‘f managed their workplaces, ranged but Salzgittercompromise workforce was ‘uncomfortable ( for and painful’ a number of times during the interview, they seemed to suggest that the suggest that inflow of to thea additiona interview, number they during of seemed times participatingunionists the final in deserve attenti negotiations special protection claiming periodit, dismissal was the that (Net short agreed too –was resultnegotiationforced achieved ‘ –the dismissals avoidance and of the team round (MAN 2008). b duringcollective throughconcessions ‘contribute cost savings’ to the upcoming would soon face similar cost-cutting pressures as the Germanfactory facewould soon cost-cuttingas pressures similar M producers bus expensive within were on, thefrom Poles most point that the With regard of GermanWith worksfinal phase, council relocation the the opinions to The reactions to the compromise were again mixed. Although the main goal Although of were theagainThe the the compromise to main reactions mixed. not there to be cursed at any more. Salzgitter is out’ (IGMM1 2007). there (IGMM1anynot 2007). be to out’ at cursed Salzgitter is more. Salzgitter on put be to used it now, until because plants, Polish wi pressure whole the up, cleaned been has Salzgitter ‘Since Newsclick 2007). In disappearand not over did job particular, the fear one’s 2007). IG MetallIG 106 district nevertheless argued district the that Alternative MetallerAlternative : : on. It is remarkableIt for that, on. is ll be exerted on the on exerted be ll . (…) Now we are are we Now (…) . Meine in in Meine me the truckin division zwerkIT 2008a). 2008a). zwerkIT agreement concluded AN and thus rom defeated to Die Zeit argaining could have could have he contested contested ors and s that that s 2007). l l CEU eTD Collection paint this gloomy picture and point to the gloomy allegedly to and this paint point character temporary picture the had management thus noillusions and who had gone unionists throughas a tough experienced voice tworounds with of negotiations of frontthe in ofproductioninterviewee. loss themselvesAlternatively, and the i decision, the diminish theGermans, relocation with to sig seemingly disappointed grapes’ ofmight b ‘sourexpression grounds. be an invoked rhetoric, hand, it On one statements TheGerman unionists’ threat’ recurrence the ‘eastern the in of location decisions: could and be Asia. countries transferred further east, The post-Soviet to should plants feeltha Furthermore, not the that Polish given safe they warned company. of MAN The statements existence will largely depend on their (low-) cost performance. largely ontheirexistence will cost (low-) depend 2006), suggest locations second seem justify and to interpretation the that the Polish should ‘cater to customers needs’ ‘cater onthe cars (Dürr workers’should terms’ and ‘sell not i customers to soon’ (IGMM1 2007). lose can he/she but tomorrow, job a has one case… this in And good. forst win whose somebody is winner A winner. a oneself consider cannot t i.e. round, relocation this [of winner the So… buses. city deliver also Europe West the to coaches delivers already Turkey intensify. Pola on pressure the then and cheaper, become to have will Turkey Soon Chine the since location Turkish the on pressure already is ‘There of out Poland pull expected 2007) will –massively!’by board, (MWC they the the if profit: be because must there then And there. so lower are costs was it p Poland, Polish the to it to move They profits. certain relocatedexpected company was production whole the ‘When Nutzfahrzeuge about the of shareholder-oriented their strategy 107 ’s ManagingDirector, the that convinced firm’s profit is not as high as as high as not is profit an markets; it can it markets; an lant because labor labor because lant of the management’s of following twostatements can be ontwo justified se are cheaper. cheaper. are se t the production t bus t can consideredt be he Poles] Poles] he ays there there ays it again it n nificance of nificance of nd will will nd Newsclick ’ future y the the CEU eTD Collection powerlessness and the lack of influence on company investment decisions: ‘[i]t powerlessnessand of the influence oncompany lack decisions: investment response. without proposal,allegedly however, was left Metalowcy and not us who decides what is being produced at our the site’ Poz and who (ibid.),what us claimed being decides not at is produced solidarity thehe Germanwith could members union’s express inform his about and w hadlosing German 2007). counterp suggested (MMP his their He he to jobs claimed that taking Germany,German employeeseven for from so the away and work the more thewas restructuring perspect ‘unpleasant’ from the process reduced: only as andnot had alsoplants, a forbe thus company but to for whole the and, Polish the In lose’ 2007). respect, (ibid. will the German this constitute costs at high unit ‘ifgoes theexclusively companyand willingness (…) survive’ to the by market,rationale. bus they On competitive a highly argued, cost-cutting dec decision might havetheGerman management’srelocation plight, workers’ maintained the i that the Poles firm’s German headquarters. time, Atthe same were plants localfullyasserting management, the that Polish dependent e … a mco [r u- cmay wti te enterprise, the within company> sub-] [or CEU eTD Collection production inflows in defense of the German site. In defenseproduction in inflows eyes of Starachowi the German site. of the the to boost employment: boost to would betray unions chair,goal very the so a Polish doing by labor the of organiza This last remark last This the Starachowice signals even if union goals are similar acrossgoals theeven struggleattai for countries, are if similar union their investing 2007). of (MMP money sums large East’ the ‘Wild in and Ukraine economicto likely instability was preve or to political Russia, be gradua labor-intensive processes could high most Even production standards. if the countrie post-Soviet in qualitytheyasserted ethos nor the work neither that at 2007). the(MMP than On German the the ones othe ‘madeproduced site Poland’ vehicles in ‘quality foreign a at their arguing plants, customers and that productivity’ theirfacilities. to counterparts at On Opel one Gliwice, hand, similar they Last, but not least, Polish unionists openly Last, unionists theexcluded possibilityre least, not Polish but of us and the Germans is a bit, so to say, r, CEU eTD Collection profits. One of the key factors behind this development wasprofits. One development the spectacular factors behind of this the key postcommunist markets. Already ofpostcommunist the selec investment’s site at the outset region once int postcommunist more ‘confirm[ed] the rationality (…) [MAN’s] of newA planttoprelude relocation Poland: in a 4.6. bode not well did forabroadcooperation. cross-border problems and their lack this of identificatisolely say, to Needless national boundaries. within 2006). In2006). of the MAN eyes theye number comparisonwith going in orders the of with previous truck up 190% by countries the in post-Soviet r Inmarkets.firm’s instance, turnover 2006,for the the truck marked Poland, to sal relocation unit eventually in major its led increases to a potential location; instead, the firm would ‘construct only where the cost ara instead, location; wherepotential the firm only the would‘construct cost European b stated noWest Samuelsson that Managing would site Director Håkan proved As the it existing with satisfy difficult to growing demand CEE the a delivercompany products new build solely to decided its factory would that t to growth’2007a). weabove-average (Wrebo MAN in want And a rates. this in share Independent of will States andmarkets Eastern the Commonwealth in Europe t stated: ‘We Manager areassuming the company’s Production chief boldly growth(…) strategy’ ‘emerging [focused of on] tomorrow’ markets (Erich 2004). It Stara a including and 2004). number Wrocław of localities, CEE shortlisted thus At the time when MAN’s bus division wasserious facing when liquidity division At the bus time MAN’s problem Nutzfahrzeuge ’s chief Marketing Manager, good sales’sMarketing chief the results in Manager, 110 in the truck the in area? on with workers with on reineke, while ibid.), growth of CEE tion, MAN’stion, hat above the all e ( fine’ be growingat ose 165%,by e consideredas he capacities, the ernational chowice s that that s Merkur es and ar (MANar CEU eTD Collection production capacities could be addi easilyproduction with capacities shifts, could three to increased produced in a one-shift system and with 400 workers on the payroll, but MAN but planned 400workers onthewith t payroll, produced and system a in one-shift stating20 ha of 2008,only bybeing out company in 80ha that (MM purchased were the used constructed ManagerHR confirmedNiepołomice’s latt onsurrounding areas. the (NetzwerkITPolish According workers who had the 2008b). visited Salzgitter to forumemployees,was ofas German the MAN depicted new ‘possibly site The factory’s the downsizing with of opening coincided Salzgitter unit bus facraised future overGerman workforce truck fears of the among the their or trainingat Salzgitter MAN’sworkers attendedplant Munich additional hi ofthe elements assembly its supplied Most line. delivered directly onthe andthe(Sielemann principles MAN closely in of followed 2007b) lean product It introducedof-the-artefficient logistics ‘highly machinery. also and as equippe factorythe was second 650workers 2010. The by and shift at employ least year Thewere OctoberInitially, per in new opened 15,000units was plant 2007. location. 2006) helped state the (European scale Commission the Polish of favor tilt in to the s standardsLast, suppor (MSN 2008). least,Polish not the considerable but investment offeredIn eve thewages Małopolska(MMN region relatively 2008). low addition, close(especially German to markets, Russian) A also but and and Ukrainian only not Eastern The proximity(Sielemann in MAN town was of in E 2007b). located MAN officials, offered balance right Niepołomice between ‘a logi onlyCracow, site chosen investment the the was list final in to as added phase, the Ni(Poland), Košice the and Polish (Hungary), Miskolc (Slovakia) eventually but 111 stics and personnel and costs’stics tional facilitiestional sembly processes’sembly s. s. a threat’ very serious ilities. On an Internet On an ilities. ghly qualified ustrian suppliers ion, with 80% with ofion, er assertion, epołomice near plant, its its plant, . According to n according to n and thus d with state-d with outh Polish Polish outh t offeredt by uropean to be to o create N CEU eTD Collection positively, on grounds that ‘no German production will be (I relocated will ‘no Poland]’ German production positively,grounds [to that on according to commonly defined according rules: commonly to before the Poles with wererelocation taken, able decisions hoping the be to and productionsophistication they profile.aimed at For developing reason, this against might eachsites be‘compara asplayed theywere off other, of and athe the same downturn, Polish they the acknowledged time, German the event in that Munich and in Salzgitter f units andworking at the their truck-producing were location decision that seemingly remained beyond the spherelocation decision seeminglyremained that influe of their beyond of German Against the backgroundof unionists fears, the above the activities representinginteresting. are R particularly truck-producing units of MAN’s Germany’concerns in ‘made about the future production. ( 2008). location-securing The Munich agre and that both fact Salzgitter plants’ Standortsicherungsverträge generalrules’ 2007) (IGMM2 alr will we But site. their for fight would Munich in people then product relocate might company theyears five in – security no supervisory the in it discussed also we Cracow, in discussed we ev down put have We (…) ready. game the of rules the have we appea conflict whengood the that, so times, develop already the to in contacts pha critical be might there relocation], [the it avoid cannot One fo possibility> additional CEU eTD Collection by exchange at ‘to aim employment ensure loc that all envisaging information particular this in case?transnational materialize not Wh tradeMANfailed seems cooperation. be union to East-West an of instance company’sunifiedat truck appears labor the the equally unit in front unlikely abstained fromunionists across coordinating f actions Since borders. the their a dauntingrenderedrestructuring, task. During labor the Poli transnationalism Conclusions:the MAN 4.7. case reactions leaders. by union ofaccusations opportunism and Polish spurred2006), Germanfirst they and were crafted and foremost the needs, thus for ofparticipat which to relocation, severely the Poles’ readiness limited had sites alre flaws.whencame First, the late, Polish they relatively the eventlocations in cross-border of s But restructuring. their initiatives ‘rules thegame’,that the contacts of establishment to ofjoint would lead the ob They a theprocessdemands, that relocation postponed. the hoped Germans could be r information urging exchangecounterparts. By and twoto staging the latter cooperativecorporate build they decisions to theirattempt did with Pol links cas e they political accessworkforcealso channels utilized mobilization; goal, strategies,achieveemployed a of incl national variety they this considerable media visibility.first relocation Only when the showedconsiderable media the For German unionists, it was a priority to keep the bus production at home. In production bus at home. was For orde it a keep to priority German unionists, the production from Poland decision relocate Germanyto to At MAN, the management’s 114 and managed to grant and to managed their ady enjoyed the first benefits ady first benefits enjoyed the uding local and negotiations uding e in the scheme. e the Second, in uffered two major from aise bolder pay ish andish Turkish ir limited impact on ir limited foreseeable future, ormation of a ations’ (MAN Busations’ (MAN sh andsh German bus y labor did served by all all served by negative negative lso expectedlso r to CEU eTD Collection became aware of the importance of such links. Last, but not least, it seem least, not it Last, but becameaware importance such links. of of the production inflows and shunning cross-border cooperation that could prevent them. them. production could cooperation that and inflows prevent cross-border shunning latter’s transnational commitments, not least view not in latter’scommitments, transnational of their own relativel counterparts exchange could offer for Polish unionists nothing t in German that their MAN In and and German the GM VW with c Polish representatives. contrast employee of companyconditions exchang restructuring reciprocal nospace for offered Salzgitter bus unionists from exchanges staging exactly Salzgitter unionists bus cross-border vis for fear that such contacts could hamper the relocation process. couldprocess. for hampercontacts fear the such that relocation by initiated same they time, activities cross-border engage in not the did the localwith which management, aimedcomparat at retaining their sites’ ‘l theystatements,anforged one informal goas could even as far claim that to theiraccept to locations. Draw a attract freeze wage to long production new andMAN’s Thedominated were Starachowice the agenda Poznań Poles of unionists. wil dominance loss within thedominance and company’s within loss EWC was representatives.German the rivalry The units’ between and bus truck cross-border The anddiverted s attention liaisoning. resources the Germans’ from eventuallya mobilization for the relocation, ineffective stopping proved in national solutions. to EvenGerman though bargaini attachment local employees’ It failure due at f the three MAN, cases? two to was cooperation seems that whycross-border of labor were cost the comparisons, transna trajectories the management. As a result, the Poles applied athe management.a short-term result, applied the Poles perspective As Ifaand large-scale restructuring GM and wide both made MAN implemented Until the late and theUntil 2000s, raising goals employme of production increasing 115 Nutzfahrzeuge ’s Euroforum made’s Euroforum them prevent at the time when time the latterat the ir German ir counterparts tionalism so different so in tionalism s that the that s very ‘truck people’s fear people’s of ‘truck ive advantage. Atthe yweak position long they had time , welcoming new ing ontheir interview actors.was One es between the es between the ow-cost coalition’ ow-cost coalition’ ng and political ases, there was ases, was there econd reason nt levelsnt use of ling to vis-à- he CEU eTD Collection paying special attention to structural and socialization explanations. As f explanations. structuralpaying and socialization to attention special profitedcounterparts than the of from more assistance their l Western from Introduction 5.1. unionists did not have not did at national their negotiation disposal unionists channels cooperationargue and was emerged union cross-border that interest-driven cooperatedI under each and with conditions unionists German which Polish other. automotive Magna-Sberbank. Magna-Sberbank. c ofover Opeleventually a sale concluded, to the not Canadian-Russian planned, but Europeant within transnationalism byfront GM divisions workers’ tracing A separatecommitments. section the vulnerability illustrates East of laborand the exchanges, fragilit pointing the issue-specificity to weaknessFinally, explanatorycanI its restrict potential. discus and/or the West in Europeanunionism CEE West divergent of setting, traditions but beindustry’s found other in and manufacturing sectors countrie evidence might identif Igeneralizability,claim the that cooperation mechanism the for transnationalism discuss relevance of accounts alternative labor of East-West and Europ integration Economic 5. Chapter InIcombine the chapter, insights case from st this the company three labor transnationalism labortransnationalism 116 s the likely limits of transnational limits thes likely ied onthe ofbasis the car y of union cross-border -West European labor European labor -West and or the findings’ Polish unionists unionists Polish the examined context, context, examined the when German ocal solutions. I solutions. ocal then hat emerged 2009 in udies to identify to udies s in the East- in s labor onsortium onsortium ean CEU eTD Collection between production locations in newmember in and the states, EUbetween timing but and old locations i production betweenthe at the they from nationalexcluded level, negotiable issues which fac and MAN: and GM discussion VW, 5.2. comparative differently Germanorganizations. the labor case in of and Polish relationship, however, and This unions theirto willingness ‘go to transnational’. play of national acthe extent chapters an relationship between inverse suggests The analysiscooperate of evidence the each prese empirical other? with the unions’ did automotive conditions and action and Polish interest what transnational in under cross-border the ca across three significantly varied labor liaisoning words, transnationalrepresentatives and cross- action initiate the arena enter capacity coveredallocation not –topics company-levelby collective regard colleagues in management,consulted p their Polish inter-plant to they they the c preferred with coordination. via While employment pacts secure to andagenda, cros thereforeand to control those remaining of subject out their national engine At VW’s plant. differentiatPolish hand, onthe German unionists other division, their and coordinate with counterpa were to Switzerland therefore determined Europeanheadquarte the company’s with ties leaders,union management no who had national through position channels reaction cross-bordercounterparts in to sec not benchmarking whenever could they German automotive unionists sought to develop cooperative links with their developPoli their to sought with cooperative links German unionists automotive At all examined companies, use examined At all of the made comparisons’ management ‘coercive In Germany, the declining union influence on corporate investment policies ma policies In investment Germany, influence oncorporate declining union the . This incentive guided the strategies of West European guidedWest incentive . This GM of the strategies 117 tors of tors cooperationunion ses. What spurred What German ses. border liaisoning. In liaisoning. other border agreements. Finally,agreements. MAN nted in the in previous nted cess channelscess available roduction shifts androduction shifts ompany transnational rts at the cheaper ure their ntensity of ntensity of ed out out ed s-border red in de labor ed sh sh y CEU eTD Collection potential benefits potential ofcoordination. cross-border enable decision. management’s relocation reverse to them the hope in t and mobilization, level political bargaining protests with tackled the unionists national relocationbus strategies,with mainly com threat commitments. In commitments. effect, andengagement made cooperative accept them cross-border transna ventures in servedGerman it an represented ‘pull’ fac option, attractive as a unionists cross-border initiate support ofnot strongerexchanges;more rather, the and if gains strategies.Europeanagainst from derived As national partners transnational cooperation local strategi moretransnational was them beneficial national/ for than than unilateral strategies and concessions. Inthan unilateral and strategies a concessions. vein, similar enginePolish cross-border unionist were by viewed experience-sharing whereat VW, Germans’mechanism advocacy was the supervisor the in at work Where both Polish and over German favored Where Polish national both unionists activism transnational astrategies, specific they engaged in as the gains related to the relocation-induced production transfers relocation-inducedfromas Germ production the the gains related to the with instead ancounterparts in informal and l coalition ‘low-cost’ engaged at MAN division bus abstained unionists Incontrast, from Polish cooperating wi firm’s rejectingwerewith associated risk demfavorable the and the thus however,adoptedcooperative when a only stance more Gliwice’s the Poles the local with exchange disputes managem backing for its in the Westerners’ courseIVAstraunderbid sit European counterparts the their of in West the Polish labor organizations,Polish assessed too, benefits potential of the allianc Polish unionistsPolish reciprocal relationshipreciprocal cooperated when German their counterparts with 118 Solidarność : while the: Poles to not committed hat these measures would a rule, however, did rule, a they s ass more advantageous at GM agreed to not ands was relativelyands low. tor that stimulated their tor stimulated that e selection in process investment prospectsinvestment ent. Notably, any the outweighed experienced ocal management, bining company- e with their West their West e with tional tional y and board th theirth German es . This . This CEU eTD Collection primarily andas had for ‘retaliation self-interest by deterrence beneficial than cross-border exchanges (see Figure 2 below). Figure 2 below). beneficial exchangescross-border (see than cooperation materialize asunion to of the pursuit national strategie fail O European and at GM. West characterized between Polish unionists relations forreciprocity engineasat labor a VW basis liaisoning served divisi feelings towardfavor, the reciprocity, by positive motivated or liking guidedauthor, obligation wi reciprocity, such aby as and moral balance the In 18). remained2008: it from i other distinct regard, types of this reciprocity exchange a involved reciprocity,as of sequential it (2008)Kolm’s bene continuation Their alliancethe cross-border company be can headquarters. considered union Germans assistance organizational enhance at with them times, would and,provide underbid distributio investment their Western colleagues during subsequent 119 its negative counterpart’ negative (Kolm its on; after 2004, it also after 2004,it on; other actor. Continuation other s was perceived as more was s n rounds, the llingness return to a dentified by the nly did at MAN an of instance d access to fits drivenfits CEU eTD Collection German at VW unionists Polish and Figure between Relations 2. available solutionsnational German union: MAN’s bus division MAN’s division bus No Yes Yes No cooperation Ys No Yes exchange exchange Cooperation support)organizational shifts, production (product allocation, VW GM - 2008) (2004 level negotiable at the national guaranteesemployment Germans as uninterested, (employment issues) VW ’s engine plants ’s plants engine ’s plants engine Polish union: Western union assistance Western Polish union union: more beneficial than national solutionsmore than beneficial : reciprocal: : the : 120 No cooperation No cooperation (2008-2009) negotiations Sberbank GM Magna- during MAN’s division bus GM (until 2004) GM 2004) (until cooperation than from transnational local higher concessions uninterestedgains - from responses relocation spurs national ’s engine plants, GM ’s plants, engine and : the Poles the Poles : : CEU eTD Collection behavior. It argues that the recent wave of car industry’s expansion to CEE to expansion ha It recentbehavior. of wave car industry’s the that argues h employment automotive The workers share production Germany’s in total of asproportional growth employment productionhas in been and not by matched growingFigure andof have the early-1990s (see crisis continuously 3 been Europeanpacerecoveredothercount at those a of West any much faster than pr Germany though Even German vehicle –the European carbiggest producer. These and employment tr workers’ negative working prospects. conditions the led cost-cutting was gradual to competition of which a worsening strong drive, carmakers European onthecut-throat West among operating ma rivalry plummeting with dem the defensive.Growing combination in overcapacities theon German defensiv industry:car 5.3.1. workers organizations. interestsguided of constituencies union strategies and and German la of the Polish These t new structure-driven states. EU member turn, differences, shaped in for opportunities consequences development the in plants and terms of in investment for the motives their c cooperated scrutinizes unions each other.with section This Why go unions do transnational? 5.3. The previous section identified conditions underThe identified and conditions Germanprevious automotive which section Polish Throughout the late 1990s and the on Throughout ‘old’ 2000s, been has car Europe’s sector largely 1990s the late 121 e e rket. The of the upshot rket. ends did not spareends not did below), the increase he economic and resulted a in ry the aftermath in d different as been steadily oduction figuresoduction sembly areas.sembly ooperative automotive automotive bor old andold CEU eTD Collection assembly selected and in countrie WestFigureCar European production 3. Figure 4 below). seedeclining: wentand (Nunnenkamp 2004; down 2004,it 6 bypercentage points between 1990 Source: th workers total in production employment in FigurePercentage of share 4. Source: industry, 1992-2003 industry, Nunnenkamp (2004) (2004) Nunnenkamp (2010) OICA 122 s, 1997-2008s, e German car CEU eTD Collection jobs, but there but growingjobs, might is evidence also it affect other emplo that of car-manufacturing CE prospects to the relocation with activities deterproduction But German automation. alsocarworkers’ associates the author pacts would secure employment and provide investment guaranteesforpacts would secure upcomi investment and employment provide concessions. even agreemjobs, wage The atworking the first cost conditions of and economies, suchfor as creat the of job declining importance manufacturing generalwas employment trendsautomotive characte partially due to Germof theproduction decreasing workers in According share Nunnenkamp, to from engineering and other human-capital-intensive divisions. divisions. from human-capital-intensive engineeringand other theBluhmeastward Germanin (2007), relocations involve recent have car sector the lateproduct offshoring mainly Until 2000s, (Bohleactivities threatened 2008). suggests the industry automotive to 2007), which a(BMWT concentration sectoral of high forrelocation-induced are losses Economy ofjob and shows a that Technology half A studysector’s ‘job exporter’. as commissi a reputation significant Ger region.confirm andfrom Other component the postcommunist sourcing sources except BMW and nearly 100 suppliers (Jürgens and Krzywdzinski 2008). In most caseIn BMW andexcept most 100 suppliers (Jürgens nearly 2008). Krzywdzinski and Gecollectiveand sector 2007 wereby major all by concluded bargaining the in ( a location- a orweek. job-securing production decade, so-called these Within andif the cut employeespartbenefits working time of relinquished social from dateswhenkind agreed shedding refrain back 20and VW to 30,000 jobs 1993, to between used unions firm- automotive andbargai relocation plant-level German threats, Standortssicherungsverträge, Beschäftigungssicherungsverträge)Standortssicherungsverträge, In view of strong cost-cutting pressures backed up byIn pressures backed up credible disinve of cost-cutting strong view 123 became part and parcel of became E and the subsequent vehicle oned theby German Ministry rizing developed rizing market yeegroups. by As shown to 28,8-hours to per ion andion growing ccords stment and stment ning protect to ng planning rman carmakers any’s total iorating job iorating job d job outflow d job ion-related attributable ent of this ent of this many carmany s, thes, such CEU eTD Collection bargaining’s shortcomings became more evident. Duebargaining’s the changing to evident. became shortcomings powe more periods. On the flipside, they involved concessions on the workers’ side, such as onthe workers’ concessions benefitperiods. side, such On the they flipside, involved the risewith of car industry. CEE employmentGermancar workers enjoyedbecame the by protection growing cross-border to show why comparison exposure the performance subs Incollective next and remaining (VMS 2007). thus deals their the control of out reporteda at VW, such growing issue as number workers’ of representatives traditionally Even with unions employee strong influence o representatives. remained thus Zürich, theat inf GM’sand European beyond managerial center in decisionscase were investment orOpel, Bochum Rüss and in planning not of made headquarters obtainingassura hard viable had and employment time investment access limited with Moreover, corpora unions conditions. view to economic of changing and longer guaranteeshad could job an periods covered immediate character, concessions 13).went2006: While offered each furtherwith workers bargaining by andbetweengrowing bargai profit‘inequality distribution’ of risk the In dictatewidening of of ex the employers’ management. particular, the capital win-wingradua and agreements once character was labor, of such the advantage during successive investment site selection bids (cf. bids advantage selection section site investment 1.4.1 during successive spurring amongan the seeki to bottom’ intra-West European ‘race locations other ag in Following similar car-manufacturing concluded countries Germany, unions workingwage flexibility time (Zagelmeyer freezes and increased By the early 2000s, however, job-securing pacts lost most of their most flairBy a however, the 2000s, pacts early job-securing lost 124 2000; Jürgens et al. 2006). Jürgens 2000; particularly problematic ning partiesning et al. (Jürgens it options resulted a options in it s and the ‘patchy’ s n investment policies, n investment and 3.3). and 3.3). ng to gainng an to r balance between s not covered not s by lly theby replaced be renegotiated in s concession concession s ances. Inances. the luence local of elsheim, but elsheim, but round and ection, Iection, reements, reements, cuts, te te CEU eTD Collection Source: V4, assembly 1997-2008 motor in Figure and of Production vehicles 5. production clusters theone world. in vibrant of automotive the most the states, as these 2000s commonly to the (V4),Four Visegrád four referred CEE hav andSlovakia also recordedgrowth HungaryFigure rates impressive (see 5 passenger15% in car and segmentsboth (SamarT vehicle commercial 2008). Between hasPoland increase been 2001and reportingproduction 2008, annual a o steady only momentum ofstarted gainedat the but the the deca early in end considerable 1990s, Automotive CEE in 5.3.2. production capitalize on the region’s cost advantages and task CEE sites with lowvalue- with sites CEE cost advantagescapitalize onthe region’s and task over authors upgrading Europeandoubts expected Most potential. its West that The integration of CEE countries into theThe European production automotive into networks integration of countries CEE Despite the growingDespite figures, the onthe car studies sector early production OICA (2010) (2010) OICA 125 below). Inbelow). in effect, added, labor- in CEE raised CEE in he Republic, Czech producers would e created de. f 10- CEU eTD Collection producers, such as Spain and France (Šćepanović 2009; see2009; and Figure 6).producers, France(Šćepanović OnlyGerma as Spain such pr a towards also in shift continuous but higher and value-added better-quality (Ellingstad 1997). e –or European aWest set export-oriented of low value-added, production carmakers these countriesargued CEE that a findings, ran ‘ was serious risk of it becoming newdisparities in states regional EUalready (Pexisting member fromspillovers other economies,CEE dee the to car sector branches which of could In early andresearchinvestment reported l technology addition, (Pavlínek 2006). hierarchygiven car was reproduce to likely itself industry’s depende CEE capital-intensive OncehighEast-West production. created, value-added, human of (Western) ‘Europe’s hear industrial help consolidate the specialization turn, van would in 1998; Tulder This, intensive (Kurz activities and and Wittke 1998). Ruigrok (Jürgens and Krzywdzinski 2008). This move resulted not only not (Jürgens capacity 2008). move an resulted This in enormous and Krzywdzinski boost, and reorientedCEE targeted towards production Europe export themselves West region,demand the recession in postcommunist that carmakers and stagnating 7). By view in of mid-1990s, from 1997: a (Ellingstad the ‘maquiladora prolonge syndrome’ across car all segments (Šćepanović 2009). prod valueunit of volume premium producers German rather automotive higher than to was likelyremained most this num but expensive, a more due of the to presence and of that exports the EU as a reached level whole) characterizing major the the relative car valuesratio from betw as unit of V4 a (calculated exports Contrary however, sector automotive predictions, re quickly the the initial to CEE 126 avlínek 2004). In theavlínek light 2004). of een unit value unit ofeen V4 tland’ (Lung 6) 2003: in nce onWestern nce West European West had invested in oduction. Byoduction. 2006, production ber of low- maquiladoras’ of an markets an markets imited imited n exports n exports pen the nclaves uction uction covered d CEU eTD Collection Note: vehicle exportsFigure Rev1 of Relative (SITC values 7321) unit 6. components in its export export et al. 2009).componentsprofile its in also (see Pavlínek theirwith Western neighbor and high an obtain vehic of equally value-added large high years countries CEE while took the only differed two 1996,it in significantly ten t Theand component profile comparisontotal Germany’s exports. export of CEE added share twofold, (HVA)40% making components’ of more the region increased than up fell from exports nearlyCEE a half. time, less than Atthe same to twothirds of (LVA) lowvalue-added1996 andFigure 2006the car components share between i 7 below, Source DE- Germany, SE- Southern Europe (Spain and Southern EuropeFrance Portugal), DE- FR- (Spain Germany, SE- : CEE’s intermediate upgrading production witnessed input a A similar trend. Šćepanović (2009)Šćepanović 127 the high value- s suggests that that suggests s o ‘catch up’ s showns by le le ’s n CEU eTD Collection Note: between the two regions (PWC 2007).(PWC betweenregions the two segment components perFigure value-added vehicle of 7.Exports Source Western counterparts, even after accounting for the differences in annual differences in Westernfor counterparts, after rea accounting even the years automotive CEE until workers’ t takewage reach around levels seventy region over thees postcommunist in It the decade last Table (see is 4 below). gapWest moreremained despite a dynamic has increas much significant carCEE muchhourly Europeanbelow stood the industry the costs in West labor ra Abbreviations stand for Abbreviationsand high (MVA) stand low value-added (HVA), medium value-added value-added (LVA) components. : While the output at ‘new’ the output While locations becameautomotive andvery ‘old’ Europe’s Šćepanović (2009) (2009) Šćepanović 128 e in labor recorded costs e in l wage growth wagel rates timated that it will will it that timated hose of their tes. The East- similar, similar, CEU eTD Collection Source: costs countries 4.Labor ( in selected European Table the car in industry threatening oftime workers at the ‘old’ interests car-manufac Europe’s agavetwo characteristics clearthe of advantage combination C these to In competition-ritheir Westernmuch colleagues. more the than cheaply workers CEE that thehourly comparisontime, costs reveals perfo of labor andquality car Europeancomponents at at that a West level to similar locat factories2000s, Europeacquiredcompetences had ‘new’ enabling in the Romania Slovakia Poland Rep. Czech Hungary Slovenia Spain Italy UK France Sweden Belgium Germany wage labor costs), 2006 labor wage 1997and To sum up,dataTo sum industry’s structure onthe automotive CEE the that by suggests mi Country Blöcker and JürgensBlöcker (2008) and 1.55(2000) 2.15 3.15 3.49 3.53 6.81 17.18 19.89 19.95 23.61 24.79 26.49 34.08 1997 4.55 6.31 9.24 10.24 10.36 19.98 50.41 58.36 58.54 69.28 72.74 77.73 100 % 129 3.23 4.80 6.00 8.10 7.76 14.01 21.99 24.68 30.71 35.52 34.51 36.61 42.29 2006 7.63 11.38 14.18 19.15 18.34 33.12 51.99 58.35 72.61 83.91 81.60 86.56 100 % turing locations. turing locations. dden automotive sector, automotive dden EE facilities, at the sameEE m to manufacture to m cars rmed tasks similar ions. Atthe sameions. in €; incl. non- €; incl. in +108.38(2000) +108.38(2000) +123.35 +90.47 +132.09 +119.83 +105.72 +27.99 +24.08 +53.93 +50.40 + 25.38 + 38.20 + 24.09 1997 to 2006 d- CEU eTD Collection benchmarking rounds. As shown by Mueller and Purcell (1992), Hancké (2000) and shownPurcell by Pulignano(2000) (1992),benchmarking and As Hancké Mueller rounds. whichAs in German thebe bottom’ to able participate. to workers wouldnot a competit or wouldspur the Czechs ontheattempt underbid German to the Poles side In at technological much but lower sophistication, the costs. East- view of atdelivering comparable European levels the West to markets products had of compete future to CE their with spatial distribution investments, plants particul making,whencorporate were German losing unions decision in influence on was widespreadthe fearamong car worker the of country’s competition Eastern non-cooperation growing unions:costs German 5.3.3. counterparts. with their coordinating in had aninterest eastern German unionists high, automotive particul by underbidding was the of the threat locations unavailable cheaper andthus CEE solut when national comparisons, performanceareascross-border exposed to employment and future investments at theiremployment sites. future and investments of partially to them production over division the control transnational regain conflicts along dimensi distributional help the theavoid Germans East-West representations had recourse to local concessions to order to gain orderrepresentations local to had to concessions recourse advantages to European West In individual enlargement.long the 1990s, eastern before the EU (2006),been the the underbidding danger European in of hadcar i present inter-plant exchanges theirearlier higher with eastern counterparts than was during the Interestingly, it seems that the pressure on the German unionists to engage in c engageInterestingly, in to the that pressure onthe German unionists seems it German automotive companies were among the most activeGerman and CEE investors in thus were among companies the automotive most Such cross-border coordination of strategies for capacity-allocation roundscapacity-allocation coordination Suchcross-border for of strategies 130 of qualityof and West income gap,West any ‘West-West’ ‘West-West’ , thus securing, thus on. Iton. allowed thus over other locations a result, E sites, capableE sites, of ions wereions s. Atas. time union union ndustry ndustry ar onthe ooperative in the in ive ‘race could arly CEU eTD Collection potentially ‘acceptable’ by all engaged labor organizations, wherpotentially ‘acceptable’ organizations, engaged all by labor assis unions: Polish fromWestern benefiting 5.3.4. ‘new’ Europe. before was unionists bysuchVW the deals production had Western concluded been counterparts underbid attractwould not to them their Polish capaciti additional made the German elaboration2008). sur rules, unionists Similarly, through of VW joint concessincluding the the that Delta so latter any into the ‘do Group Poles make not tactic. wasat l GM, The present where motivation above European union West spiral EuropeanEast-West by preventingconcession the Easterne ItEuropean imperative for an contests’. ‘beauty became therefore failuresex workers for than became during earlier, much higher the Western the wagepotenti East-West the with costs associated differentials, introduced the sites European to CEE intra-company competiti dimension a new however, plants, group ofrelatively relat high-cost Western homogenous were (see 1.4.1 and 3.3).and attract Concessions offered section to the investments within new majority of greenfield investments in the carmajority sectorgreenfield CEE in the investments the late of in and 1990s region FDIthat preceded was the a inflow by to postcommunist econom deep It be note 2005) (ACEA as of and ‘the the 2006). East’ were Detroit referred must to (Dudenhöffe vehicle the in fourmid-2000s, Spain production countries Visegrád outpaced The growth of CEE automotive industryThe late growth has 1990s since of been automotive CEE the unprecedented. 131 tance eas the emergence of parallel rs from the underbidding using al cross-border coordination German unionists to avoid to German unionists clusively West ic downturn. The ively ‘modest’, es. Notably, no eaders on insisted on. Inon. view of early 2000s ions’ (IGMO (IGMO ions’ launched in d, however, e that r In CEU eTD Collection their German counterparts in return in Germantheir counterparts shows that fromcooperation. the case studies three evidence The their stronger and more experienced Western colleagues. their stronger experienced Western and colleagues. more making factor unionists, usearena,for them thea s the ‘pull’ Polish as served it availability t while ‘pushed’ the limited national solutions the into Germans of the management’s negotiations local from with than mere or demands compliance assistance, organizational one would expect the ability to determine these matters to lie on the side of the one onthe lie side the expect would of to ability these determine to matters from European of counterparts. line their This reasoning West at firs seems ofweakness assist overgainextent leverage mode and and a manner in strategic selection bids. intra-compan good ofa winning wages chance they had conditions, and working inferior duecomparisons’ their to compara theirby feared Western counterparts; workers automotive wasPolish cross-border wouldshun it unlikelytime, ‘coer that accepttheir by set unions out cost-cutting and flexibility t requirements localthe and goal wor would make ofemployment increasing widening production wereItinvestments thus hunger. could considerable by also marked investment byenterprises. regions thea densi characterized highest result, the As painfulinvolved of the loss-incur restructuringfollowing acquisition old, measures recession and Similarly,severely unemployment. br transitional by hit areas industrial concentrated Kessel 2004), Pavlínek traditional (Dörr 1999; and in whic Moreover, it appears that CEE automotive unionistsMoreover, automotive were CEE use appears to their that it relati able But it would be wrong to conclude crosBut would be from wrong it completely the that abstained Poles to when they more cooperation expected cross-border from benefit to for supportfor 132 in the form guarantees investment of or new Polish unions cooperated unions Polish with ty of automotive automotive ofty ownfield investments often investments ownfield he company. Atthehe same tive advantage of lower tive t counterintuitive, ast he transnational stronger German be expected that upport offered by ance obtained . In . effect, ring kforces and kforces cive cive ve h were s-border y site CEU eTD Collection intervention of VW’s own couldassistance resources’ controldenied if its it it would that be(Schel labor,theCEE underbidding turn, became in cooperation ‘gatekeeper threat. ‘hostages’counterparts, Eastern agreeing support them weaker to of their EuropeanIn then, West wasthe management’s credible. unionist a way, demands of earlier the the threat unions’ weakness concessions, CEE and of such instances wagesflexibility requirements, which Ger or adversely would affect the alternativecontext, Germanwould be to the Easterners’ support unions’ InEasof the other thehim/her also and theparty. indirectly choices binds thus weakness certain instancesas in mechan a act commitment powerful might workSchelling Butact on bargaining,unions. as (1999) seminal argued theby his in 5.4. East-West European union cooperationunion European e the East-West and 5.4. vis-à-vis counterpartscomprehensive enjoyed hadassistance their a Polish stronger would have likelyItis unwi canbeen the Germans logic. be that strength’ advocacy atunionists’ the Polkowice investments above-p illustrates new for German counterparts during investment distribution rounds exchange organizati in for German distribution during investment counterparts committing was unions underbidautomotive Polish unionists interest-driven, to with not the transnationalism The previous sections argued that transnational cooperation between Polish a The argued transnational previous cooperation between Polish sections that the company. the company. Solidarność at the Salzgitter works council at German the and Salzgitter subsequent 133 xisting accounts oflabor xisting man car workers. Incar workers. viewman of in order in attenuate to lling provide to such bargaining position bargaining position ism that constrains that ism acceptance of lower s’, able to ‘enjoys’, the able to resented‘weakness ling 23). 1999: The t-West Europeant-West m yielding m to s turned s into nd German or’s onal ir CEU eTD Collection dependedcooperation.In primarcooperative cases, examined outcome the was sufficient towardsattention not it for a but condition CEE; necessary, cross it be stressedmust dire affinity2010). the that merely structural Still, otherin had words, Paul (personal structural communication ‘interests with roots’ E spheresand their coordinatewith international vulnerable to benchmarking European effort West countriesCEE unions’ guided that Western and (low-wage) European industry, activitie automotive of i.e.production the parallel launch of organization Itfactors exchanges. the cross-border specific was for 17 the in Europeancontext aboverelevance light of the find East-West the for assistance. of labor section theories This the reviews transnat existing and hostility between the workforces.and hostility between the the feelinrelocation side, invoking induce expensive to at the concessions more threat In enables it themay m a competition. vein, similar upinter-plant heat levels widensformarked the scope cost cost and com divergent by efficiency of similar necessary competencenot cooperation. The acquisition labor induce Zafira,similarityand inte and structural the over dispute however, output Opel sense betweenat different of locations. As interdependence il workers states andof old newparallel in section 1.3). EU The production member launch cooperationcannotstructuralalone for account sett the examined theories in union the wage gap and unions’ readiness to engage in cro in engage to readiness unions’ and gap wagethe But see also my argument in this section’s last pa last section’s this in my argument also see But That would be being incorrect it completely to reject the importa said, To begin with, the evidence from the three case studies confirmscaseTo theearli begin evidencewith, my from the studies three 17 ragraph regarding the reverse relationship between relationship thereverse regarding ragraph ss-border benchmarking. benchmarking. ss-border 134 cted the Westerners’ ionalism and assessesionalism their production in the in production lustrated by case the MAN anagement to useanagement to a ily on the extent to to extent on the ily ings. ings. s in (high-wage) in s astern counterparts; parisons and thus nce of structural of nce s by locations locations by s rconnectedness do -border er assertioner that did createdid a Marginson s to secure to s the ing (cf. the extent of of extent the g of rivalry CEU eTD Collection participants (VMS 2007). participants (VMS 2007). bycase, take exchanges East-West engine place the might VW intense platform for cross-border exchanges show strong transnatplatform only in for interest cross-border if unions advantagescross-bordercould bring exchanges that the Easterners. to European a West which unionists, national access were channels to available substantial effortssubstantial learningab strengthening more in their by bonds engine unioni At VW’s the Germanandcross-border Polish plants, commitments. hadelement notools given the that cementing labor unionists relations, transnational also be should qualified. Trustfrequency wasan undoubtedly of interactions impor union fully express their concerns due to the limited duration of due the the and limited sessions to thefully high their express numb concerns react m whereas emerging EWC to problems, promptly cross-border contactsbecause is This communication channels. between uni bilateral that the presence of an EWC is not even not is a necessary for thethat condition presencean labor EWC liaisoni of and bus truckfrom divi also representatives betweenGermanemployee conflicts onlyfeatured and not their multiple foreignbetween German unionists Inthe management’s was MAN’s l contrast, EWC benchmarking practice. developedagreement, links GM strong cross-border workers particularly granted rightsliaisoning. information and Despite consultation limited the in (see Rather, as serve involving a section concrete they 1.4.2). might us commitments does entail understood the not emergence as sustained coordina transnationalism, of labor picture. structures, the As case in e themixed very of production parallel Furthermore, arguments linking socialization transna the of success labor The analysis of EWCs’ role in stimulating transnational union contacts union offers stimulating transnational an in The e role analysis of EWCs’ 135 out each other and getting other and to each out eetings do not allow them to eetings allow to them donot outside institutionalized institutionalized outside sions. In fact,sions. seems it onists enableonists to them xistence of these forums of these xistence and managed and counter to argely as it ineffective company’s EWC company’s EWC nd onthe potential ng. As illustrated colleagues, but tionalism to the to tionalism sts put put sts ional ional eful eful to enforce to er of er qually qually tant tant tion tion CEU eTD Collection plants, on the other hand, point to the importance to onthe point otherplants, of for hand, interest-based motives Eas particular of referringby cooperative direction tr initiatives to between CEE and West European locations served as a background condition spurringEuropeanbetween as served a background condition t and locations CEE West Solidarność rapport, Europeanarguablyable infl to was contributed East-West union not to European Even by the initiated activities EEF charismatic unionists. West their to set clear bywas Poles limits goals place,pursued in the frameworkinstitutional transnational cooperation backed for signi union by elsewhere. interests develop AtGM are not whenwill realized union better ca cooperation. As‘primary the in MAN their spurred that interest mover’ reinforced willingness have cooperate, to unionists’ to does seem however,be not it Muchactivism. ascross-border relatedknowexpectations the other side’s to European labor transnationalism. European transnationalism. labor transnationaldrivers. coordina areas issue subject Carefully to delineated alternatives to cross-border activism (see Figure 8 below). below). alternatives Figure (see 8 activism cross-border to and theofgains transnational availability nat cooperation from unions by derived and de of constituencies,was union of primarily the a economic function interests of processes. cross-borderThecontent socialization actual l and scope t interests cross-border in unionists’ furtherexchanges, which thanks developed Building on the above discussion, it is clear is it Building the that above structural interconnectednes discussion, on the ’s position in seems regard. least,’s impossible it Last, acc this position to not but 136 ust and socialization as their solely and ust socialization engagement cross-border in abor exchanges, however, abor tion at VW engine at VW tion chair, whochair, had se shows, socialization shows, socialization se , wherea stable ficant EU funding the mutual trust trust the mutual uence o intra-firm ional ional pended on pended ount for the for ount t-West t-West en the s s he CEU eTD Collection behavior of unions representing the company’s country of origin. Parallel to the behaviorcompany’s Parallel representing of country to the unions of origin. similarity) (output =>structural preconditions othermainFigure factors the explanatoryRelation and variable between faci 8. right in claiming that the creation exacerb sites right the that car claiming ofproduction in new In cooperation conditions. partic their scope further by specifying a solidarity’ ‘paternalistic turns 80)Hauptmeier, 2008b: into and (Greer otherwise ontheir dependent from weaker unions abr home-county strong counterparts thevulnerable latter comparisons. s control The transnational to to willingness areasexist which thethey in management,enjoy t close access there to yet engine guidinVW’s suggests another, motivation self-interested plants But section (see 1.3).counterparts from Rover the subsidiary loss-incurring (2000) a of account relationsWhittall’s between German BMW works councilors a fromover companystems whole, their of concern as the the profitability In support theyconcerns instances, forei overseas other the units. their lend to of use t theircases, privileged access central management unions to home-country bodies dominated bycross-borderrepresentation labor the union. home-country TheMNC’s country literature contradictory assessment of origin. offers Finally, interest-based of the accounts existing research qualifies my incentives newMoreover, of representin light unions sheds oncooperation study my East-West European labor transnationalismEast-West labor European economic interest economic in cooperationin 137 => => socialization ular, while Hancké (2000) while is ular, ates problems relatedates problems to hey arehey increasingly reciprocal exchange. of the effectiveness of effectiveness of the cooperative outcome g cooperative as illustrated in as in illustrated the evidence from cross-border cross-border phere makes the o express theo express spheres which in In practice’ ‘best gn colleagues nd their British litating litating oad and oad g CEU eTD Collection between old and new locations. Instead, between shows thesis the evidence locations. and this presented old in in new necessarily not will capacity,excess induce difficulties ‘ra these of findings Generalizability the 5.5. claim needs this EU furtherold empirical member testing states, but cross-borderfeature more than labor at the attempts homogenous liaisoning Europeancan a morebe East-West context thus expected heterogeneous that competitive presattenuatingsearch transnational for of innovative ways tryruinous ‘beautydifferentials, will avoid contests’ to the Westerners the Bythe lightactor. in ‘more of implication, the Eur East-West expensive’ gap, too comparable; rendersacoordination cost hand, wide too onthe of other the lack a underbidding l onlymutual viableactors strategy cost for constitutes whose ‘cooperative at activities launch ‘ol turn’, of i.e.production the parallel because is generalized structuralThis car sector. prec beyond the againstgrounds making inferences, m are that expect there deterministic to foradviseascrucial case across-the-b a caution using in basis studies Although dissertation might bethis other, contexts. King also in valid less hostile environmentemerged the suggests cooperation mechani a difficult such that in featurethe cooperation. T European East-West least union likely to setting As stated in section 1.4.1., the competition-ridden automotive industry can bea viewed industryAsautomotive stated section in 1.4.1.,the competition-ridden can 138 ce-to-the-bottom’ rivalryce-to-the-bottom’ onditions for German unions’ onditions . . oard explanations and warn explanations oard d’ and ‘new’d’ and Europe’s with CEE workers CEE with and sure (cf. section 5.3.3). It (cf. 5.3.3).sure section he fact the that latter y could findings be group high-wage of opean wage will paradoxically evels are sm identified in identified in sm et al.(1994) et that that pricyfor s s CEU eTD Collection production architecture as ‘complementary specialization with an with open end’ ‘complementaryproductionas architecture specialization manufacturing complex, high goods’ (Bluhm industrial manufacturingcomplex, quality 282). 2007: author a exerts CEE argues, ‘strong competitive pressure onWestern Eur attractto managementconscious high of efforts and product CEE unions quality only not als decisions,stimulated investment but company headquarters’ the by of ‘upward direct German mobility’ turn into The them rivals facilities. focuses upgrEastern goods, onthe manufacturing of sites’ continuous up-market technologically in mature,though specialize standardized tends to CEE products Bluhm (2007: 128) products referstechnologically segments. and t to complex product Easterncorporatechains, gradually localities value with onresponsi taking upgradingchange the following in reconfigurat profound This decade. the involved theat early locations in CEE end wasproduction activities a only t prelude 1990s (2007)metal, electronic, andchemical the finds that developme Bluhm food sectors, Insimilarity study firms’ su CEE of qualitative German thesis. her significant drop and high technology, high-capital intensive sectors technology,significant rapidland high high-capital drop groupsdramatically, re industryand low-technology high with labor-intensive of German2005 the 2004EU changed composition accession from countries the imports ItGerman 2007). of Economy shows that betweenand Ministry and (BMWT Technology 1992 between EUandc manufacturing member new states Germany products EuropeanWest setting. alocations, are in widec range and manufacturing now industries present of CEE’s industrial upgradingCEE’s industrial ana further theby confirmed longitudinal is A growingsupport of ofbody the output research East-West provides evidence in 139 bsidiaries in the automotive, in bsidiaries of the former of the is ommissioned by ommissioned the ope, as it is capable is as it ope, of yincreasing their share bility for , indicating even that ountries in theountries East- in cording a cording lysis of trade in lysis o by the ion. In ion. effect, the , while Germany ading might o their rapid ion ofion nt ofnt low- his newhis CEU eTD Collection Note in industryCEE Germany’s groups of importsFigure from Composition 10. Germany’s in industry groups (2004 of Figure Composition to CEE-8 exports 9. Figure 10 below). German had CEE for to remainedrelatively (c a over decade exports stable fromvastly asindustries, thewhere imports the region quality increased re statesa CEE in with negativeGermany balance trade recorded even In from the imports the region. group total within and the becoming the dominant Source : Industry : groups:B – c – labor-intensive, C and – labor- skill-intensive, A postcommunist countries accessed2004. that postcommunist the EU in technology-intensive, D – capital-, and CEE-8and ar technology- skill-intensive. : BMWT (2007). BMWT (2007). : enlargement 1992-2005 group), 140 lation to the latter to lation set of as the structureas of ompare Figureandompare 9 apital- and -8, 1992-2005 -8, 1992-2005 early 2000s, e the eight eight e the CEU eTD Collection between German and Swedish GM unionists, Pulignanowhile the former(2006) GM unionists, finds that betweenand Swedish German Lefilleur 2008). yield project those of to (see‘old’ the similar BMWT Europe e results analyzinggiven studies that Europeancountries, the structure trade CEE of Similar motivation other coulddistribution. have W for characteristic in been unions thecompetitive pressuresmeans in proccross-border of attenuating raisedliaisoning interests cross-border their in with e German unionists’ Germany. in their plants twin level as of sophistication structura This were industries ableleading capital-int export produce high-quality to CEE mid-2000s, in that i the can is BMWT sites study,What from be then, inferred buildi 342) andfurniture(NACE other 467), electrical machine (NACE machinery Germany to of followed aexports woode(up 1992-1994), mere theby in production from 4% together share upa took (NACE 25% theaccessories re in 353), which for vehicles motor manufacturingvehicles 351) and (NACE and the of manufacturing of engines motor p responses to inter-plant benchmarking practices. In herresponses analysis inter-plant of to the benchmarking practices. Europeansignificantcompetiti West in of unions’ perceptions variation In relati industrial orientations of particular, recent labor movements. certain settingsmay in cross-border be materialize cooperation not Swedish collective bargaining culture approves of job shedding job leadsapproves collectiveSwedish if it culture bargaining of forconditions guarantees. employment accounts by author variation for ar The the security stronglya theemployment wide t latter objected use pacts, of In the highest with industries from Germany’s in share CEE-8 imports 2005,the we But despite the presence of structures industrial But labor to conducive despite transna the presence 141 cause the different strategic of ess of product andess of capacity product ons studies point to to point studies ons l similarity could have similarityl ensive goods at goods a similar ensive 2004 investment dispute dispute investment 2004 o trade wages and wageso trade working .g. Graziani 2002; 2002; Graziani .g. ve pressureand their in astern counterparts as a counterpartsastern as to the improvement of to with the rest with of the tionalism, tionalism, guing the that ng subsectors. n the region’s est arts and arts gion’s made made re the re n CEU eTD Collection plant conflicts, Nordic unions will focus will primarily conflicts,on negotiationsplant Nordic the with unions of whichNortherna between and bonds Scandinavian result their as m Europe, unionists relations the German in landscape;bargaining, widespread so industrial inst stra Scandinavian gradually unions employ their transform practices and novel Thereevidence transnationalreorient solutions. mounting is themselves tha towards oncethat influencechannels Nordic the organi existing labor lose significance, I enduring its adherenceunions’ bargaining due effectiveness. is to national to unfamiliar resolution. a of method dispute at foreign unions with transnational r hand, coordination onthe will other subsidiaries, event otherare likely of countries. is the in it that Consequently, than much in stronger formanagement voluntary, labor-capital ac and basis the non-legislative particular relations in industrial traditions, b cooperative to relations difference 3).2005: The the this specificity to author of explains by pointing consider ‘as it strategies,potentially harmf Nordic organizations as their useful to domestic viewcontinental addition unions transnational activism union According (2005),their towards Knudsen attitude cooperation. whil to union cross-border European their West the differ Scandinavians to seem from significantly be directedwill efficiency the labor a retaining market of towards the have view pressure, not in that of will growing recourse unions competitive Nordic t market difference This adjustments. imp orientation is unions’ strategic in st aspolicies Scandinavians an rely instrument tend labor to on active market Rather ‘a than jobs saving the existing the firm’s competitive position. Against the above rendering, it could be argued in line with KnudsenAgainst the with line above Scandinavian that could be rendering, it argued in 142 ul to their to activities' (Knudsenul etween trade andetween unions s a whole. In aas vein, whole. similar t all costs’, all t the cords in most of most in cords counterparts terms of in ortant, suggests as it ir managers; managers; ir ead, their response Scandinavian imulating labor t can be expected be can t tegies reaction in zations will will zations t t o concession o emain too intra- anagers e CEU eTD Collection (Woolfson and Sommers 2006: 50). and 2006: (Woolfson Sommers gust a in of cold, the 2009; B1 2007; SI3 strategic as firstB1 steps towards reorientat 2007) be can 2007; viewed 2009; 143 agreements’ (Alsos and agreements’ ield facilities and tend not facilities ield ese conditions, conditions, ese ant in the Polish Tychy, the Polish in ant ctices and (Jürgens ovenia (Crowley nce programs rship at the Polish rship at the Polish applied only in e obstacle joint to n poses an equally erga omnes s and/ors union n vehicle andn vehicle an countries an orts with with orts ind’ ’ ion ion t t CEU eTD Collection preconditions for unions’ interestpreconditions cross-border in particular for in contacts, unions’ output makecommitments. transnational laborserious divided obstacle represe cooperation, as cross-border the to for lack actions union and of mechanisms. the enforcement inability the persiste competition, cross-border eradicate fully to section EuropeanEast-West foc this Accordingly, transnationalism. labor andliaisoning three ‘new’ between c unions, Europe’s ‘old’ major problems transnationLimits ofEast-West labor European 5.6. weaknessand/or conflicts. enduring inter-union always not –it able makelevel commitments to labor transnational organization cross-border onthe side – the CEE condition pr Similarly, the contacts. basic pressurecountries the management’s to other concede than Germany would neither uni CEE, be view with in that competition excluded of cannot direct and it Thus, traditions. strategies across union Intwo reasons. can different industr vary the West, ‘travel’ to andBut sectors countries across the potential argument’s mi the Polish-Germa are sites, ‘old’ and outside ‘new’ also present Europe’s dissertation this in settings. because outlined can is applied other This to be To sum up, it is likely that the logic behind East-West union labor union likely transnationa is the up,it logicTo East-West sum that behind Even though two out of three companies examined in this dissertation featured this in Even intense though examined of companies two out three 144 alism nce of national referencence frames national of ght be limited forbeght at limited least ntation is unable is to ntation n automotive context. context. automotive n uses on unions’ onunions’ uses ial relations systems ial the structural ontinue to beset to ontinue esence of a plant- similarity between met due met labor to s nor initiate nors initiate lism lism ons in in ons CEU eTD Collection but the Polish and West and West regarding theEuropean Polish but positions the company’s unionists’ border ‘beaut the seek course a in unified build and benchmarking front to of individual benefits, challenge framework not they did but the that competitive the broad managedunionists while their engaging local rec in interests reconcile to In fully rivalry. to manage not s did activities eradicate the most inter-plant competitive pressure. –the elimina solution of offeringaImportantly, fell systemic short they actions union was l considerably the effectiveness unresolved, contentious issues of le alreadyBy continued diverge. to and expansion responding threats to present I oncoordinatingEEF’s during the stances Astra concentrated efforts labor only areas materialized Fetz transnationalism (cf. issue specific in Second,game’ reactive duecharacter, its East to set theby management. werecontests’,according playing their facilities but still the to response in to mobilize ins firmlyconsequence, would As place. a in unionists performancemechanisms forinterest, compa staged inter-plant when the and-file consent. Since transnational commitments had concreteand-file commitments for Since consequences transnational consent. twospheres. remained in their transnationalvisible First, activities high as a reference w This significant,contexts or even points. important, the most respec and continued view old labor new to in their organizations states EU member merely a r operatingwas failure This in. due First, two related reasons. to cross-bo To begin with, the evidence from the three case studies suggests that unions’ coo suggestscaseTo the begin evidencewith, from unions’ that the studies three Furthermore, even in most successful instances of East-West labor East-West successfulFurthermore, transna most in even instances of eaction to specific production specific threatened that architecture to their ves members’ 145 competition-geared ‘rules of the ‘rules competition-geared er AtGM, for 2008a). instance, ly conditional onrank- conditional ly rder cooperationrder was tion of cross-border -West labor -West risons had already beenrisons iprocal exchange of uccessful instances, V selection site bid, ir facilities wereir facilities as particularly tances of cross- aving many eastward tionalism, tionalism, their plants’ their imited. imited. tive nationaltive ted ted y perative perative CEU eTD Collection possible range of union strategies to tackle competitive pressure. rangepossible competitive tackle to of strategies union At GM, for instance, (cf. their ‘tied’ transnationalthat and ‘hands’ S limited involvement the unionists’ elections. union Foras serve lowmembership reason, the next support wouldoften this union-government alliances pose a serious threat to laborunion-government to transnationalism threat pose alliances a serious sectiongrant demons The industries. country’s assistance next troubled their to ‘national beThis turn’ facilitatecost might offacilities. foreign mightoffer have local deals to concession recourse that immediate benefit fightlocations. Under but investment, cithe very for these survival of their merelynot conflictsfair become the winapronounced and do in share to unions more seek ofnegativelyw economic affect downturns, their sustainability the in periods Europeanalliances thi Last, in labor depicted least, not East-West but agreementsgentlemen’s and enforcement lacked the form thus of mechanisms national action arena, cross-border labor cooperation merely complementenational action cooperation arena, labor cross-border suggests This regard with Poles that capacity inter-plant to distribution. seeking at theircoordinateinvestments while atplants, the same time to where continue concludeat to VW, securing local German unions deals a employment ‘dual strategy’national collective other in This spheres. was bargaining Second, certainare cooperation materialized even in transnational when issue stepped competiti it down their wouldhave that fromcriticism union the received had relatedcontests’expectations members’ referring by t to their to engagement needed t and legitimize for to thus capacity workers’ unionists fate, utilization, vis-à-vis their constituencies; otherwise, they could not count on their votes during constituencies; they count could otherwise, on not their Solidarność justified its participation in the Zafira and Meriva participation the Zafira in its and ‘beauty justified 146 d by state authorities’ readinessauthorities’ to d stateby he investments and massive he investments rather than replacing the particularly pronounced their activities with the with activities their s to their at theto sites, s . . d it, extending the it, d rcumstances, unions rcumstances, unions s dissertation took dissertation took s hen distributional hen distributional as, it ran parallel to to parallel ran as, it . This could . This heir cross-border trates such that chelling 1999). ve race. nd a factor new CEU eTD Collection planned sale of Opel to a Canadian-Russian consortium Magna-Sberbank.Canadian-RussianplannedOpel a consortium sale disput to of The borrowing and the uncertainty over the length and depth of the downturn led to aborrowingdepth to of sharp and the the and downturn length over the decr led uncertainty GuttenbergFinanc Opel’s whereas (CSU) ‘orderly’ favored insolvency, thetemporary Economy outset, wasMinister from ruled nationalization almost out towardspolicies Germangovernment the company the shape over future of their carin and Europe sales America. in both functioningcar-manufacturingAt the same companies. the constrai of time, also causedproblems, disrupt but and development liquidity activities, the industry automotive breakdown After latew in 2008, sector’s the financial availabilitythe first trouble. ones run The to into restricted credit only not did inte latter cateringconstituencies’ in prove effective their to more s once make national cross-border to are likely use for pressed of coordination ofI at that case short cris times Nevertheless, as show study to include this dissertation (see beyond 2009and 1.4.3). lies in framethis the thus time section set in emerged that section between This presents divisions the GM unionists in Transnationaltime the unionof at solidarity 5.7. 2009 ( would needinsol it declare to input thearguing financial the without brand’s that Opelhalf short-twas workforce of a employed, 54,500 Europe’s for €1.5 billion Inhigh November GM country asked fuel 2007-2008. where in nea prices Germany, the 2008, yetwhichfirms, GM, i and Ford had recovered Chrysler, fully from not the losses Deutsche WelleDeutsche The the ‘Big to was plummeting demand particularly Three’ No harmful 2009). The loan was approved, but not without tensions the without The not within approved, but loan was 2009). 147 crisis? The Opel/Magna crisis? case rests (cf. Figure 2 on p.120). rests Figure (cf. p.120). 2 on ing the day-to-daying the e Minister Steinbrück e Minister es, even that es, unions nts onconsumernts hinder research hinder olutions if the olutions erm loan, . Although . rth Americanrth vency early in reaction to the reaction to ncurred by zu zu e place took as among ease rly CEU eTD Collection bidder, Belgian investment company RHJ, requested €3.8 billion in loan guarantee in company requested €3.8 billion bidder, Belgian investment RHJ, promised to invest €700 million into into the brand, million €700 invest partnershippromised in to Russ Sberbank, with partnership’ ( were Germanyand four all in place thus German take plans were rema to to Europe,Thea nearly only group quarter but of planned across the shed dis 11,000 jobs to year vehicles Ni at its perlatterassembly of would launch 180,000Opel the requested a considerably higher amount of public support than RHJ, the fa support than RHJ, higher ofamount requesteda public considerably Even Canadian-Russian thoughclear consortium. the Magna-Sb they that preferred thebeforeset firm to government,byGermUS already date, but the this influence Germany As a regard onGM t exert in bridge to to loan sought provider, 2009,i.e. beforechoice the decision dea 1June restructuring was The due of the investor. the brand make into to investments additional (from refused as the bid it F contester, Eastand Germanfactory. The idle production at third the Eisenach It at million. €175 plannedinvest Opel, 10,000 jobs cut close approx. to the also Antwerp savings a The wasconsortium develop Magna-Sberbank also to bank. planning Germangovernmentother hostingIn European excha and countries Opel factories. loan guarantees in Canadian€4.5 billion from component the producer demanded Magna, assistance ( stake Opelcarmaker in i a sell to majority expressed willingness be not aid. European granted A turned the that firm’s out could state US operations employment at onlending support, declaring‘high(SPD) insisted financial mai in it interest When in February 2009 GM presented its restructuring plan to the US governmentGM February presented in When the plan restructuring US to 2009 its Age Bloomberg 2009). all fourall [i.e German; emphasis added] Opel sites’ [i.e (emphasis German; added] In offers. response, submitted inve first potential companies three The 2009a) a a car GAZ,producer with result Russian OAO of as which the 148 n exchange for n exchange European states’ Bloomberg an state officials it an made Reuters ct the that planned job in open.in The second zhny site. Novgorod ntaining 2009a). 2009a). n ‘industrial iat, stepped down steppediat, down 2009a). 2009a). s, offering to offering to s, ia’s largest nge, it nge, it s a result, the as result, erbank missals missals plant plant dline dline , it , it he stor, stor, CEU eTD Collection political ties of According ties the Germanpolitical Opel unionists. to provide the €1.5 billion bridge loan and promising further bridgeprovide assist and financial the €1.5 billion promising loan ‘might be killed due to the intervention of politicians and their p promises to ‘might intervention of politicians be due the killed to IV ofcourse solidarity the Astra si among developed the GM laborers in (cf. IGM NRW 2009, IGM(cf.NRW theKlaus chair asked Franz, Opel’sassist government’s for GWC, of the regional FromOpel’sorganization. representat union the crisis, of beginning employee side (IG Metall 2009; 2009; employee Metall side (IG Magna with conditions conces objected as soon it possible’, although further ‘as to res negotiateconcept’ readiness to the the and its Magna declared of takeover (Woodley in more incl puts be pressureeverywhere savedwill else, and […], on that just arguing result plants, ofLutonas the a Magna and deal, Port that Ellesmere expressing in confederationunion over Uniteexplicit was concerns jo his more a lead shedding.The Britjob to mightand of Secretary ‘involve change’ General the deal in involvement were of the Outside Germany, German assessments the negative.Business capacity excess that feared UK Secretary Mandelson which foras served 2009). onthe further a takeover (GME basis talks ( latein May theannounced Magna-Sber their for 2009 publicly preference national elections, the German government the saving Ger imperative followed of same wasbid the reason, supported Magna by reductions t in the scales were take Germany tilted to outside mainly place Reuters 2009b). Consequently, GME signed a ‘memorandum of understanding’ with Magna, a Magna, of with ‘memorandum understanding’ 2009b). GME Consequently, signed Mercopress Mercopress Spiegel 2009). In a similar vein, the Polish OpelIn unionists the criticized allegedthe2009). Polish a vein, similar 2009b). Further backeda union 2009b). ‘general on,the strategic up Bloomberg 2009a; IGM2009a; In of 2009). the upcoming view Opel IG MetallIG 149 , Germany’s largest metalworkers’, Germany’s largest Solidarność ’s deputy union chair, at Opel’s European sites te selection process process te selection ance saving the in brand ance to the group theance to bank offer, agreeing to heirFor favor. the ‘the German plants uding the UK’ reserve (PO3 jobs’ ives, as well as tructuring bs at Vauxhall’s atbs Vauxhall’s ish and Irish andish man jobs andman jobs sions onthe sions clearly CEU eTD Collection bluntness of the comment and the accusations over political dealings andWes political the of over accusations bluntness the comment the in billion and rather agreeing (billion million €175 million €300 than invest the to initial run of talks that started in late July 2009 ( July2009 in late started that runtalks of In the summer of 2009, GM In Magna continued with negotiations ofand 2009, RHJ. the summer experience not did sites considerable layoffs. 18 ready to provide the company with €4.5 billion support. €4.5 billion readywith company provide to the expressing ‘understanding’ for the plans to produce Opel models in Russia ( Opel Russia in for models expressing the produce plans ‘understanding’ to Putin, rep PM the Russian with went Moscow the to prospective and discussed deal long (car future over negotiations of the of European the biggest brands one endedof Novemberwhich theendagreed six Canadians 2009, the saleby the Opel’s to to of director GM’sFinally, chief announced GM that board negotiator on10September, thelike May uphe Just declaration GM’s caused September memorandum, much InotherOpel EUBusiness states locations. hosting 2009, UK late September 19 late of in out 2008and over early 2,800workers 2009 whichplant, GM was Euro facilitydue in the the fact to cheapest the Polish getonly the and worse plants, more profitable rid of the exp best, [i.e. most bankruptcy, firmthey ‘wouldcontrolled called then as hav Opel’s the for ratherfor too: 2009). were than But from far solidaristic, the statements Poles’ in preparation for Astra IV’s arrival (PO3 2009). (PO3 IV’s arrival Astra for inpreparation ‘personally intervene in support of( Magna’s‘personally support intervene in bid’ ChancellorCanadian-Russianwent Merkel as consortium. as far declare to that government,But suppor to backed the German country’s continued unions, trade up the by by bid its thetalks, latter the improved ceiling of lowering s public A Chinese car producer BAIC wasconsidered shortly BAIC producer car A Chinese mainlytempor were employees dismissedGliwice The Automotive News Automotive as a potential Opel buyer but it was not included included not was it but buyer Opel potential a as 150 ary workers and workers employed shortly before the shortly before workersemployed workersand ary 2009). 2009). Reuters 18 , i.e. at the time when West European West , i.e. at when the time IG Metall 2009b) and confirmed that she that confirmed was 2009b) and ’s Secretary General’s Huber Secretary upport from €3.8 to €3.2 to €3.8 upport from e the righte maintain the to ensive] ones’.ensive] The pe, lost nearlype, lost 800 Pressebox Canada Secretary, backed the Magna deal, the Magna Reuters she would t aret probably 19 During the ortedly 2009). 2009). 2009). s had had s 2009a). 2009a). in the final inthe aval in -month -month t the t crisis crisis CEU eTD Collection to theeto possibly plants, including and Antwerp ( Eisenach planned a same cut 10,000 it jobs 30% costs, liquidate to time, operational of Opel’s Opel own onthe of resourcesbasis €3 its government’s totaling‘fix’ loan and It plan. recuperation the ofblueprint company its a intende published and the instead restructuring wouldimplement own. Adays few onits afte scheme European any to its sell decision neither to i intend nor and not brand Magna, did other to inquiry,dramat TheCommission’s about delay a however, caused theby brought previous had theNovember, its Opel’sannouncedin reconsidered it that On story. 4 GM disappointed in his life’ his disappointed in ( stated he that the had factory Kaiserslautern ‘ was been component located, the President Kurt of Beck, Rheinland politicians. workers German infuriated planned ofby sheddingenvisaged Even job extent close though that GM to was the guarantees well forMagna, as the lack change as the of Americans’ mind of sudden decision as( ‘entirely unacceptable’ question decisions hadquestion that ( already been taken’ stated there that 2009a), was government Wilhelm ‘no while spokesman the nee German ( the choice to assistance financial Magna its of and this tying implicitly if EU Germanyasking state broken not aid regulations investigate to had her Commissup by Belgium EU Competition sent a and Hungary letter Spain, to the leader of CDU/CSU MEPs accused her of not being objective (Langen in accusedin beingthe MEPs leader (Langen CDU/CSU of objective not her of overcastingBerlin’sconditionality doubts r economic and the policy deal’s In questioned termsOctober,Kroes of logic’.in the Magna industrial late ta European Voice 2009), which 2009), Spiegel The Economist 2009c), EconomyBrüderle while the the viewed Minister Bloomberg described (2009) as ‘the worst of several options ofas described several ‘the (2009) options worst 151 2009b). EU BusinessEU Even greaterEvenangerwas expressed the by Spiegel 2009). 2009). 2009b). 2009b). d to return the German return d to particular investor rarely and angry so ationale. Inationale. response, keover, criticizing by openly favoring ionerKroes, Neelie -Palatinate, where Gazeta WyborczaGazeta billion. Atthe billion. r the decision, r the the German the nd close up d to d to ic turn nvestor, by by CEU eTD Collection pleasant surprise’ for Vauxhall workers (pleasant for surprise’ Vauxhall ( protest against in the out dismissals employees went Bochum in and 3,000 workers5 November,European On Rüsselsheim 5,000 sites. in nearly Opel of a andbonuses, holiday andside, strike for such Christmas called as the reduction labeled ruledblack furtherHe out 4 November ‘the Opel’. day also for conces general and GM’sFranz, council German of the Klaus works head Opel’s unionists. urging [ lost’ ‘get GM to circumstances left the Spaniards uncertain over theircircumstancesand uncertainplant’s over future left thu the Spaniards shift at the Antwerp factory, which faced a serious closure at theshift a ( Antwerpwhich serious threat faced factory, General described the news as ‘fantastic’, while Business Secretary GeneralBusiness as described ‘fantastic’, the news while In Secrgovernment.Magna-Sberbank Unite’s seconded the by German the UK, deal be more distributed a equall reassurance would the that burden restructuring sharp contrast German the react to in stakeholders’Belgians anger stood and was other i governments GM’s in Opel sell countries. refusal to and There, workers unionists also gaveunionists of‘sigh relief’ ( a workplaces, planned from 1,400 ( the down at the of a dismissals deal andextent site Zaragoza expe signed reducing Magnawith finished had negotiations unions just Spanish GM decided Opel, sell to not takeover( Opel‘significantly in involved opened f for prospects better’ the Polish decision-making. economy dec As noted byGM’s Polish Pawlak,Minister the w play’Gliwice into politics factoryback not ‘economics, ‘was as Bloomberg 2009b). Only in Spain the reactions were slightly more balanced. were When slightly Only more the 2009b). reactions Spain in GM, hauab! Gazeta WyborczaGazeta ] Strikes were Strikes night] also organized and during the morning Bloomberg Spanish NewsSpanish 152 2009b). At the Polish site, workers site, 2009b). Atthe Polish and 2009b): according to 2009). change The abrupt of W SWS Spiegel ould matter’ould the company’s in Mandelson called ‘a Mandelson it actory Magna than the 2009), waving banners 2009), cted cuts to 900 cuts to cted 2009d). 2009d). s theys treated the y the than under Solidarność sions onworkers’sions ision to stay to ision nterpreted as at all EEF, ions of ions etary etary over the , the CEU eTD Collection to secure the Flemish government’s secure (to Antwerp Flemish for support the BelgiancounteButfriendly’ and also their made solutions use opportunity. of this It were2009f). lobbygovernment true to is they f that their best position in defend ofeconomic interests the takeover. were shaped regardingOpel’s preferences pr Their future 3.5) ondiametrically onthe took stances selectionopposing (see bid section December pan-European during 2005and the Astra to bottom’ precluded ‘race the conflicts. The who signeddistributional same European Solidarity unionists the that Germanthat were accused unionists of ones the be only ‘economic nationalism’ not to has At the same workers to economic at it other time, locations. and logic harmed company plants (ABVV 2008; Fetzercompany2008; also (ABVV plants see 2008a; but ‘competitive’ wasBelgian statinga rhetoric, cheaper the that site Kennes, the and betterbacked the Magna for offered expensive as prospects it deal, about the preservation of firm’s decision government, more ‘with extreme caution’. Spanish turn, was in The Finally, the Magna case shows the subordinate position of transnational Finally, c case the subordinate Magna position shows the cheapest)follow survive’ ‘the (i.e. will fittest (PO3 logic the 2009). unionists would stress restPolish and their argued the that site’s cost advantage à-vis activism at the national level still brings at theactivism nationalwhen leveleffects, still desired nat or membership’sengage exchanges interest cater their to to transnational in national union activism. In will access unions channels, activism. national national the union absence of The Magna story illustrates the fragility of labor transnationalism at t theThe fragility of Magna labor transnationalism illustrates story ABVV union leader EEF abstainat not from Opel did and using Antwerp vice-chair, union status quostatus their ( Spiegel sites and constituencies, even and a sites constituencies, course if such defied 2009e). 2009e). 153 Finanznachrichten Finanznachrichten Reuters nd more than other productive 2009c; imarily by to the desire imarily ional ‘windows of ‘windows ional their factory. their Rudi s. But where their s. Flanders Today or ‘German-workers-or Magna-Sberbank imes ofimes severe 2009). Similarly, ructuring should Pledge in Pledge in ooperation ooperation be out pointed rparts soughtrparts IV site positive positive ingly ( Spiegel 2009) vis- CEU eTD Collection plan later. a month between GM laborers, it might take a long time to rebuild trust within EEF rebuild within trust mightbetween take it to a time GM long laborers, plants excluded from the job-cutting scheme are the are scheme thejob-cutting from excluded plants 20 continued adherence national bargaining to arenas. a self-interested havetransnationalism, symbol into motivat of turned unions’ announcement anda continued an close Europe-wide with to r the of Antwerpjob plant additionallyrestructuring which started impeded hardships, GM’s by with give tend to the In responses.commitments and/or of way national local light to a resulta opportunity’ ofas circumstances exceptional such re-emerge Wyborcza significantly renew its product portfolio ( portfolio product its renew significantly million.exch In €265 to amounting concessions wage The plan involves 20% capacity cut across Europe a Europe across cut capacity involves20% plan The 2010a). Between 2010 and 2014, employees will have will employees 2014, and Between2010 2010a). 20 It GME, that labor once the European flagship case for seems WNP 2010b). 2010b). Polish Gliwice and the British Ellesmere Port ( Port Ellesmere theBritish and Gliwice Polish ange, GM is ready to invest €11 billion into Opel a Opel into billion invest€11 to isready GM ange, nd the dismissal of 8,300 workers. The only car-pro workers. The 8,300 of dismissal thend 154 to ‘contribute’ to the restructuring by offering offering by therestructuring to ‘contribute’ to s crises, transnational crises, s January 2010decision . The process will be. The will process ion andion their deep divisions deep divisions Gazeta Gazeta nd eduction ducing ducing CEU eTD Collection protectionist policies provedprotectionist and migration ineffective u preventing in propensity to migrate classified Germany as one of their most favore Germanypropensity theiras most classified one of migrate to the that latte Germany agreements posted to of basis bilateral onthe Introduction 6.1. Boeri and Brücker 2000). Boeriand Brücker 2000). group the largestdifferentials. constituted In the Poles addition, national am geographicalGermanyareselected and and proximity due Poland their to service cross strong pressures related to to exposed sectors, competitive one transna is thelabor most building Construction representatives industry. the in I end,interactions and betwe service this sectors analyze in to relations In I whether chapter,German a this test logi similar unionists. automotive whe channels access the German to labor Only nationals’ block CEE to market. workers’on East-West German building union the shows that mobility regard.available uni this in and them subsequent to Polish analysis The of German It related dilemmas migration union then outlines labor to and strate presents in strategies union and migration Labor 6. Chapter countries 2003), (Menz the early in while assessi pre-enlargement studies 1990s In Chapter 5 I scrutinized the mechanism behind cross-border cooperation of P I theIn mechanismcooperation behind cross-border 5 scrutinized Chapter The chapter starts with a brief comparison between manufacturingand s Thebrief between chapter a starts comparison with construction industry industry construction 155 r concluded with CEE r CEE with concluded d destinations (see e.g.d destinations pholding wage standards standards wage pholding en Polish and German Polish en IG BAUIG -border labor mobility. -border persisting wage wage persisting c governs union c ong contract workers gic options n the used national ervice industries. ng workers’ CEE the the tionalized tionalized ons’ positions ons’ positions olish and olish CEU eTD Collection bargaining position. bargaining position. manufacturing, to previous relation also chapters present in is the servic in border links with the two Polish construction unions.border cooperation the twoPolish with But shunned links the Poles since Marketliberalization competitive and pressure 6.2. liaisoning. gains andcros limited from national could the that by solutions derived to Poles cooperated unions Specifically, intensely the construction Germ to less due the identified that in building for sectorgoverning relations union resembles mec no advantage the all, constituency. chapter the that in concludes All their to the domestic labor m non-membersassistance exited have that – migrants to migrantsenhances workforce onlocal dependence decreases employers’ and thus (Eichhorst 2003). Moreover, Menz 1998; wages presence contributions of the and social outsourcing manufacturing, significantly in firmsenable to used as they too employmentcontracting re to and workers of are equivalent foreign cheaper the cross-border free As movement a of competitive result, labor. pressure, ow otheremployed countries than services their in may offer their individuals theirEU contractedanother workers member activiti state perform to to Internalgrantedoneeconomicfundamental the of four within freedoms fir Market, migrant workers’ extend the to activities a organization did recruitment its EU service markets are transnationalizing. In the freedomwith EU service pr line to are transnationalizing. markets 156 in manufacturing and servicesmanufacturing and in es, whereas self-es, nd established cross- nd e sectors. The discussed the in an attachment union’s locations and cut costs spent on cut the car industry. arket – would be of n, benefiting from s-border ovide services, ovide hanism hanism their ms canms post CEU eTD Collection business entities, building entities, business and self-employed T specialists individuals. bi production Having organization. projects, forwon tenders construction large private relatively construction in wages remain across service high sectors, large production facilities (cf. large facilities Shafer1994). production groupworkforces manufacturing,who in action form than homogenous their counterparts and less likel workersare unionized fragmentedconstruction less structure, Finally, gives social it dumping offers.invites cheaper to as priority due countries extended their labor regulations and/or generally and/or colle countries applicable regulations their extended labor re-regulatorycalleda w Workers subsequent Directive Posted and drive, during Theyand of 1986,following Portugal’s the EUin accession. Spain the led implementation to subcontractors,firms delegate to turn sign in contrac which tasks specific advantagechar participants. the market Furthermore, sector other over is the regulations order in companies circumvent t to and self-employed individuals generosity mightschemes. create ofand wage an This social provisions ince construction include tend to special concerning provisions EuropeanWest employment ag By collective token, (Cremers 2006). the same andc the forwhich seasonalas serves fluctuations a cyclical ‘compensation’ extremely is workers, of their working the conditions supervision difficul a similarlyZühlke-Robinet 2000:14). of With characteriz mobility level high referredbuildingas ‘trav industry – building can mobile sites is to be manufacturing, wagecompetitive pressures Unlikeand ‘producti dumping. In Western Europe, concerns over migration-induced wage dumping were voicedInconcerns alEurope,were over dumping wage migration-induced Western Construction bearsConstruction particularly of a it features number make vulnera that 157 holiday payments and retirement holiday payments eling factories’ (Bosch andfactories’eling his complicatedhis structure to the sector’s to acterized byacterized a unique t. Incontrast other to t. ts with evenwith smaller ts ctive agreements to ctive all skill groups, skill all on’ the location in y stage to collective ntive onthentive side of haracter of ing the sector’s reements in in reements g construction hich most EU hich most ble to ble to o gaino an ed at ready so- CEU eTD Collection both CEE and West European ‘exiting’ and CEE in high-wage, West hig both an interest firms had postcommunist accessionpostcommunist countries’ merelyEU 46% average GDP reaching of the protectmarkets assessme Critical high-wage labor (Verscheuren 2008). 21 the European of Court Justice of recent referred thedisputes context in (Gajewska a 2009), also for pre but stanceclearenlarged ofcourse onthe debates was E Their the liberal in EU. workers the provide free to application movement servicesand of of the freedom capitalizing and pushed advantages service sectors in thus for onsimilar the their countries’FDIregulations into attract to manufacturing industries game.states saw competitive and onlowwages their la stake Relying the in of EUby or old member contracting-in statesproduction relocating l CEE cross-bordera the other flows. national seeking As control over preserve to of EU s one constellations, product pushing and the further liberalization for standards, however, fullyrules not and the onminimum did newimplementation the focus In view Cremers of 2005; their Menz sl 1998; etcover al. 2007).(Eichhorst posted workers operating costs (Menz 2003). operating 2003). (Menz costs cheaper whereespecially expenditures wage labor, construction, CEE in European(Dølvik, and Eldring firms At the were same intereste West time, 2006). migrtheto levelan of incentive Scandinavian 10-25% had the Easterners of rates, factors flows the were East-Wes facilitating migration in present 2004and in of 2007.As argued eastern ‘push’EUboth enlargements and (2003), Menz pull’ by Court of Justice. However, I still use the old name old use the still I However, Justice. of Court In the Lisbon Treaty that entered into force on 1 1 on force into thatentered LisbonTreaty theIn Furthermore, both manufacturing and service sectors featured distinct actor featuredFurthermore, distinct manufacturing and both service sectors 21 , such as Laval,, such Viking asfreedom which and in provide Rüffert, to as it was valid at the time of theofabove-discussed thetime at valid was itas December 2009, the European Court of Justice was re was Justice of Court theEuropean 2009, December 158 t context. With the eight With context. t , theywere on keen nts intensified in theintensified eve in nts reach up to 50% up to of the reach abor. Butabor. also CEE lready mentioned, unabridged x employmentx U Services Directive liminary rulingliminary to ervice and markets h-standard settings h-standard settings ’ rule the in ’ ate to the West ate the West to and at wages d in sourcingd in rulings. rulings. named the named ow CEU eTD Collection public interest and subjecting them to a tough proportionality test. In interestpublic and a test. doi to proportionality subjecting so them tough 22 and Hortondecidedly 2009). (Countouris more liberal Services and however, w Directive the (2006) Directive (2008), Temporary Work Agency Itsstancefreedoms, recent especially provision. onother of onthat service a took more a it uphold state strict but movement aid of regime, policy and goods In policy. woul theplace2009). took past, it shift A similar the Commission’s in andeconomic van Visser the EU 2008; in Höpner liberalism Peijp (Blanke 2009; Dølvik 2008; ‘pro-social’ becamedeparted previous and from of the its m one position In ruledcases, act three favorall union in the former, stating the Court of that services enforcepartners’ to right social national collided s wage with (Fellmer and Kolb 2009). 2009). Kolb and (Fellmer support to postcommunist countries’ to support EU accession. their Berlin, services in public Brussels, at low prices Paris or of EU easternimplications by enlargement. the specter Threatened of popular in feawasaccessrooted for at least nationalspartly CEE l restrict to Theas sectors sensitive decision in construction 2005). (Dietz such In Germany companies’ to CEE years, 2011. freedom addition, i.e. until limited years a theor maximum to them extended fiveGermanyand later, Austria temporarythat the Easterners’ states lif blocked most inflows. Although workers May CEE opened to transition opted for markets their on1 others labor 2004; IrelamemberEast. Only European states, EU of out West fifteen three thecompetiti EU-lednational laborfrom and standards deregulatory drive A nation-wide poll in Germany showed that 46% of t of 46% that showed in Germany poll nation-wide A On the other side of the ‘barricade’, ‘old’ Europe’s governmentsprotec sought‘old’On the Europe’s other‘barricade’, to side of the he respondents were against the EU eastern enlargem eastern theEU wereagainst herespondents 159 22 Similarly, andFrench Dutch the 2005 opinion in the West lent little the in little lent opinion West rs economic over the ‘Polish plumbers’ offering ‘Polish tandards (Lindstrom 2008). (Lindstrom tandards nd, UK and Sweden,nd, ted the restrictions two ost vocal promoters ofost ve pressures from the llowed period of seven proposals for the ng, the Court ions should serve should ions abor markets provide services d promote free balanced periods t t ere ent ent e CEU eTD Collection applicability liberal provisions. most of its visibility andthe European successfully protest actions lobbied Parl of ofIn the service draftliberalization context Di Services the sectors. would occasionallysociety prot in at mobilize the EU organizations level a Finally, for(see case). the European and French unions 2010 Howarth West Clift social dumpingwhichof favor the allegedly the in enlarged in scale EU,tilted Treaty disput heated by referenda were EU preceded Constitutional onthe Tradeunions andstrategic migration: 6.3. dilemmas regard. this in options operating transnationalized labor andunions within the markets presentati the remainder in a chapter,question with of briefdi this overview of starting I takeand relation service CEE these in contested to highly issues? unions sector objected EU’sCommission to freedoms. any economic restrictions What governments, and ECJ concerned the the firms West East, in social CEE dumping, over the and public actors. governments, society organized civil While Weste in the led formation to liberalization of of opposing constellations dom interest of ser extent overstrong debate pressures. The subsequent the competitive distinct set of legal rules and industrial relations. At the same set ofand time, relations. legal industrial distinct rules To sum up,serviceTo sum particular in general in and sectors construction have When arrivingWhen enterat marked a country, host environment migrant a workers b new 160 and policy and options receiving faceunions country iament to limit the limit to iament rective, they staged high- rective, est againstest the further position did did Western position on of their strategic es over of the extent vice market rn Europern were estic and EU-level lemmas faced by the ‘No!’ vote been exposed to to exposed been tackle this this tackle nd civil nd civil and the y a CEU eTD Collection protectionist stance, they will seek stance,will preventprotectionist ofworkers to foreign they the inflow regard for in policies protectionist approac an or inclusionary migration opt to strategicreceiving and this Castles union. Kosack country dilemma summarize labor be market, organize difficult will which to them, might it pose a serio proveIfunions unable the migrants’ latter prevent inflow. to nevertheless acan But stance protectionist such number’ 127). 1973: Kosack (Castles and might leadunionists the campaigns migrant workers out or reduce keep even to the exi createdas the the workers they who org indigenous to ‘owe first loyalty their countries host place in areunions thecater interestfirst to likely the to in orstrikes workforcealternative andas serve disputes wage a of during pool a working exert thecondit downward country and ondomestic wages and may thus pressure and the diverge.of newcomers lab theworkers will indigenous increase The latter the that intere thereand and Castles (2000)(1973), Roosblad Kosack a likelihood is and high companies. If it proves impossible to uphold the uphold If to companies. impossible entry proves try it they will ban, a concerning dilemma the choice relevant policies of Castles andCastles might Kosack’s studyunions eit receiving country that suggests i split deepening prevent the and to unions the enough of working Kosackclass (Castles and 1973:128).’ strong weakening the Not is result worlds. worker The new the both alienate only so do of to attempts their worst immigration, the that have find might unions they happe this […] Where join. to unwilling are initially and them trust not do immigration migrants oppose unions the If re the of interests the in also but interests, own organiz their in to only essential is it country, the in workers immigrant are but immigration, oppose to unions] the [for logical seem may ‘It 161 vis-à-vis immigrants. As argued by Penninx As argued immigrants. Penninx by st of the workers. workers. the of st to make sure the that to e them – not not – them e s of the local workforce; of s manage the enter to once there there once us challengeus the for and posting . Consequently, s to them. them. to s anizations, tradeanizations, backfire if the h. By taking the h. By the taking as follows: ns, the ns, the n the or supply in in or supply her pursue sting ions ions sts sts CEU eTD Collection borderstrengtheningcountry aimed at unions’ organizati projects sending migrants. l assistanceprovide can information Second, and prospective to they primarily as a concern of labor organizations in the labor receiving in ( organizations primarilyas a states concern of because workers’ outflow directly impacts on their institutional posit institutional directlybecause impacts on their workers’ outflow migrant workforce. of social st raisingmembership the awareness base, indirectly thus labor cooperative fromwith in organizations migrants’ home countri ventures ‘their’targeting whoforeign haveentered labor T market. workers already cantwo types the unions campaignsorganizactions. First, stage and of information case, which thethis for servic in opt they transnational will strategies, membersa declining might and membership lead This rate. pose can a to s of thisp outcomes in regard.possible decreasesOn pool one hand, the migration rarelyunions migrants’ indifferent towardscountry remain the labo home market mi also leave but As acountry structures, ranks. result, union their home domes ‘exit’ country another only in upemployment donot Individuals take to wishing given of a(Kahmann 2006).operating country onthe territory workers all to wagecollective are applied and provisions and bu bargaining Lastly,and contractual provisions. ens may to cooperate unions employers with bodies responsible statewith authorities for and They t also liaison might government usegoals,pr national accesswill for and channels the lobby they and/ornewcomers localwith wagecomply labor regulations market standar At first sight, unions in sending countries might appear unaffected by labor m At firstappear sending sight,countries in labor by unaffected unions might Alternatively, receiving country unions can take a liberal stanceAlternatively,a m take receiving country on labor can unions 162 andards amongandards potential Bengtsson 2008).Bengtsson But ion, ion, twoconflictingwith e sector context cane context refer sector to he enforcement he of legal r mobility r is issue. This onal position and onal position erious problem in erious hey might also engage hey might siness entities entities siness ds. Tods. achieve these otective measures. es and jointly aunch cross- ure that minimal ure minimal that gration viewed is otential otential igration. Inigration. ing activities igration. tic labortic CEU eTD Collection prices. To this end, they might stage information campaignsmight w prices. stage end, targeting information they To this those et al. 2008).Woolfson and orderin fromjobs migrating leaving dissuade the to their West to workers be to Similarly, more employers unions. CEE willing are reported to CEE logiclabor this trends increased migration and confirm mobilizati document the of bargaining the Recent domestic workforce. position examining studies country’smobility. labor theresult sending of market immigration, As a from might increasOn indirectly the profit other sending country hand, unions however, ma in on average densityservices union than much are lower where rates the sectors, country narrows. and receiving states gap abroadcould enjoy alongside their with counterparts the wage once them mem standards their might term the own the long in benefit receiving countries in In can that tools the be preservation addition, of used drives. during national organizing r countries. such membership in with ventures them The provide participation can helpingcampaignsmigrant and defense organize rights in to them of workers’ informa receivingcountry doing,joint so staging with unions, they may coordinate country strat can object to dumping wage choose pursue and unions transnational instead liberalinternational and regulations flow services. of Alt of the workers access andemigrate, channels lobbygover also use but institutional their their competitive advantagemigrants offer to utilize to and their services receivinge migrant markets.can entry labor They countries’ to workers’ Moreover, sending country unions can take different stances regarding the conditions of stances regardingMoreover, the conditions takecountry can unions different sending 163 ernatively, sending ernatively, tightens, which boosts tightens, boosts which ncourage prospective abroad at dumping nments to push for push to more nments offer wage increases offer increases wage on the side of post-enlargement ho are willing to between their in destination destination in (Meardi 2007; bers, who ecruitment tion tion nufacturing. social ed labor egies. Inegies. CEU eTD Collection features of the building twocountries’ sectors. I the constructionin Before however, industry. briefly empirics, to turning pr wereI whichadoptedIn strategies ofwhat Pol these by follows, explore unions country Sending unions country Receiving country 5.Receiving unions’ m Table and regardlabor sending strategies in to country unions. Table 5 thebelow above-presented summarizes strategic of re options prospective migrants to use of their low-wage low-wage their use of migrants to prospective flows service international of regulations liberal more for push to governments -lobbying markets labor states’ receiving on advantage comparative encouraging by dumping wage -supporting agreements viacollective enforcement law – with employers -cooperation workforce domestic the of standards Transnational wage of in defense bodies enforcing law- and authorities state with -liaisoning measures protective other and/or entry ban - National lobbying governments in favor of migrantof favor in governments lobbying 164 Strategies unions with country sending cooperation in projects migrant-assistance -joint organizing migrant - workers migrant for campaigns -information in cooperation with receiving country unions unions country with receiving incooperation undertaken projects migrant-assistance -joint countries receiving in workingconditions and rights workers’ on campaigns -information unions country sending for support -organizational ish and ish Germanunions esent the major ceiving and sending ceiving and sending igration igration CEU eTD Collection pessimists estimated that pessimists theevery industry workplace would be second in Zeitung posted workers who accounted for 16,5% of the total blue-collar employment in the for in blue-collarposted workers total 16,5%accounted of the employment who 7,041 in 1996 (Hunger 2001). In the same period, unemployment increased twofold, whileIn the unemployment 1996(Hunger7,041 in the increased same 2001). period, experiencedgrowwave theof rate with insolvenciesbankruptcies, a of In viewlarge hadcompleted. of been projects the declining infrastructure generousstopped its subsidy Germany’s forreconstruct schemes East 1993). 1993 article, of estimated empl illegal theperiodical a number popular alsoindustry attractedeasy The illegal of prospect angain (Kahmann 2006). stood merely at 54% of the 1995 levels, while investments dropped merelystood one-halfby (Höh 1995 levels,at 54% while investments 2003). of the Singleemployee intra-EUalso intensified, Market, and 1996Germ posting in their national quotas. workers Following pre-assigned with line Germanyin to states, t allowingagreements the neighboring with postcommunist firms CEE 2004).Clobes To meet the the increasing government demand, bilat concluded labor (A Eastconstruction, Germany engineeringand in civil building maintenance supportedunprecedentedgenerous subsidies non-rbenefits as and boom, tax sector German6.4.1. The building GermanyConstruction andin Polandindustry 6.4. By the mid-1990s, however, the boom in the German constructionBy was as however, the the the over, German mid-1990s, in state the boom After the reunification of 1990, the German building market experienced an After of 1990,the German experienced an market the reunification building 1995, as cited by Hunger 2001). Indeed, 1995, as cited firms Hungerby 2002the employment small in 2001). level in 165 ion and the majority and ion of oyees at 500,000(oyees ing from 1,875 in 1993 to 1993 to 1,875in from ing demand, the sector the sector demand, eliminated (eliminated practices; in its its practices; in esidential o temporary post ndresson and any 188,000 hosted the creation of the the creation of the building eral Berliner Focus CEU eTD Collection number of ( contracts Onlyof registerfirst an the signs sector by 2006did marked upswing, in the for and infrastructure modernization ( works of as the cuts, wage asintroduced 60% allowances well upto covering special the corresponding governmeshorterand the working wages, German decrease in hours housing To the compensate biggest3% construction. decline slowdown f in with orders, in the UK,to or experience the Spain estate Bulgaria, real not did bubble. Stil hadr gone the through Europe-wide major already restructuring before because other than in EuropeanGermany countries. extent th was This a to much lower 2005). Theemployed crisis recent affectedbui economic (Dietz individuals the growing ofsubcontractors the 2004,aand, EU eastern since enlargement number dome delegateLarge to German to remained continued tasks place. companies in sector Polish building 6.4.2. The Betweentheaverage industry’s growth8%, 1990and rate while 1999, annual the at stood 95% 2000and1990 to in accountedfor the (Bolkowskaemployment sector’s 2000). 90% of structure,majorof change private as the enterprise share ownership in a decade, andgrowth. conditions cyclical Within rapidlychanging business Despitedownturn, the cons long-lasting the production hierarchical structure in During the transition and in its aftermath, constructionwas its industry in m theDuring Polish and transition the Manager-Magazin Manager-Magazin 2006). 2006). Euroline 166 2009). 2009). s increased from 30% increased s in ecession and, contrast in ecession l, reportsl, indicate a it experienced it a the increasing stimulus packagesstimulus lding industry in stic andstic foreign of self- truction nt nt e former arked by or or CEU eTD Collection buildings and transport infrastructure. At the same time, however, it proved incr buildings however, and time, transport Atthe same proved infrastructure. it stimuli or income schemes support stimuli ( During decline place crisis, a took orders in slight the quarter last the of in sector experience a not dema major did government downturn and from refrained the neighboring post-Soviet countriesneighboring( and East Asia post-Soviet companies (1-9 workers), the sector is highly fragmented. Due to their small s the sectorfragmented.companies Dueworkers), highly their is (1-9 to small and 52% regulatory of theemployed workforce micr in remained. With shortcomings average ( economythe remaining%), above Polish €100 approx. reaching (17 the and€900 country’ thus theIn highestemployees. 2008, gross exhibited in effect, construction in wages keep offer thewagewas workers, rem rushed to of short 120-150,000 to increases firms estimated the that 2007experts 1999-2004 industry in emigrate had When chosen the West. to to for employeeas workforce, companies manyconstruction find qualified to of of construction EU pu and residential a funds in thewith for inflow boom modernization half of(Eldring cameand thefortune 2000s The Trevena the second in change of only 2007). merely workersregistered a numberconstruction employees, stood of and 2005the in afloat ( and had Budimex Mitex find strategic to Exbud, domestic giantsas investors such firms hasmarket, a hardcompanies Polish steering time entering thro the of the decreasingwith for demand growing construction competition services and the from 930,000,which 1,318,000 to shows a major increase. productivity Intheconstruction number workers doubled. volume of construction same de period, the MuratorPlus But the economy-wide recession of the late 1990s did not spare not did sector. ofBut the the latebuilding the Face economy-wide 1990s recession Gazeta PrawnaGazeta 2003). As a result of of the As a restructuring, its one-third result nearly 2003). lost the sector 2008). In 2008). firms started addition, labor importing from construction Eironline 2009). Nevertheless, serious structural Nevertheless, problems serious 2009). 167 Rynek Budowlany 2008; 2008; ughcrisis. Even the Gazeta Prawna s made in redundant s ize, Polish firms ize, growth rate in easingly difficult 2008, but the 2008, but to remain to nd-boosting foreign o-sized o-sized t 623,000 t aining clined 2010). blic blic , s s d CEU eTD Collection procurement construction whichforeign rules giants, andpractices of dumping positions of Polish and German of Polish laborpositions on East-West unions a mobility construction low levels (theirartificially prices at about ared Finally, long compl firms complainmarket tape, 1998). (Zawadzki European companies tendperform to thus oper for subcontracting West tasks loan obtain difficult to find for it bids in lar guarantees and participate Poland, there are two unions operating there the Poland, in building sector. are two unions regional ( districts It construction, three agriculture andin forestry. is different industries: reactionsunion labor and East-West 6.5. mobility territorial units and only 15,000 are members of its Sectoralterritorialfor and15,000 are Branch only units Construc of its members 80,000construction70,000 to workers, the within of the majority arebut them organized construction from unions. Germanand Polish relations officonductedofficialsand high-rank 2008with and between international 2005 andmaterials, secondary as press sources, well as publications twelve their targeting unilateral initiatives and bilateral migrant workforc The German Informed by the above-presented industry characteristics, this sectInformed this above-presented the by characteristics, industry Construction workers are represented by a single union in Germany workers in Pol represented in Construction and aby are union two single IG BAU Bezirksverbände has around ( 325,000members has ) and coordinated byIn Frankfurtcentral office in and coordinated a am Main. ) eGospodarka 168 2010). Frankfurter Rundschau Solidarność Solidarność e. It onunion e. based is semi-structured interviews semi-structured interviews ge and contracts, building divided into sixteen into divided ion exploresion the represents between 2010) and operates ating on the Polish ontheating Polish icated public allegedly keep tion and Wood and Wood tion nd documents cers cers and. CEU eTD Collection bilateral agreements with the neighboring postcommunist states tha the neighboringbilateral agreements with postcommunist pointed to considerable l to pointed employers CEE onthe savings subcontracting side of 23 treaties CEEBilateral countrieslabor 6.5.1. with around(B1 47,000members 2005). 2005).Industry (SC with the threat of labor market segmentation and wage the threatwith and dumping, of labor segmentation market localexpected labor join and to the organizations remained outside social securi migrationwould considerably fromas waves, workers CEE the post-WW2 differ Germantheir quota-based em employeesaccess CEE the to market. limited, ( the so-calcompensation as for a contributions, social substitute security workforce firms employing 65%to of pa the CEE German and wage, that demanded thus of migrant workers’ Theon lobbying status. equalization and orga for domestic the were subsequently union’s activities (Kahmann concluded 2006). The nevertheless the the post-unificationgovernment view agreem boom in abandon of plans, but to their quotas. also The work were Easternersexceeded longerestablished would and the it merge with the agriculture and forestry union GG union forestry and agriculture mergewiththe it create IG BAU (BAU IG create labor mobility, I refer to to mobility,refer I labor ‘Anti-dumping – Abgabe’ Until 1996, the German construction operated as IG as operated theGermanconstruction Until 1996, Following Kohl unveiledBerlinHelmut fall Chancellor plans t of the Wall, the Soon after the agreements’ conclusion, it turned out that the number of CEE workers the after that numberSoon of turned CEE conclusion, the it out agreements’ Industriegewerkschaft Bauen-Argar-Unwelt Industriegewerkschaft Budowlani IG BAU IG ) (IG BAU 1992), which however was not imposed. however)BAUwas 1992), (IG imposed. which not for the sake of clarity even when I discuss whendiscuss I even clarity of thesake for belongs the left-wing to confederation union trade FL( BSE ( BSE Gewerkschaft Gartenbau, Land- und Forstwirtschaft und Land- Gartenbau, Gewerkschaft 169 ). Given the continuity of unions’ position on CEE CEE on position unions’ of continuity Given the ). Industriegewerkschaft Bau-Steine-Erden Industriegewerkschaft and and employee intra-EU posting IG BSE IG IG BAU t would t giveand firms CEE ’s activities (cf. Kahmann 2006). 2006). Kahmann (cf. ’sactivities led anti-dumping tax anti-dumping tax led 23 pressurized the ployee posting abor reaching up ty system. Faced Faced system. ty were not paid less than less paid OPZZ concentrated concentrated nization nization ).Only then did did ).Only then o conclude ents and has y ) to to ) CEU eTD Collection workers’ disillusionment with theworkers’ new with reality, also economic the but bankrupt disillusionment fall membership in numbers, The faced ref unions socioeconomic a drastic conditions. and crisis internal forced transitional redefine to them problems. The their remuneration, InEuropeangapcountries. narrow the to order foreign between domestic and w of employee S segmentation emerged the from and context in dumping wage posting was set at much lower rate than the one initially proposed bywas than set at rate the much one lower initially proposed wageaAfter given an sector. fo hourly minimum protracted negotiations, wage,application of aagreed only latter but minimum wasjointly b if the and The Germany’s organizations. employers’ compromise biggest provide party coalition government ofhowever 544), the 2005: (Menz due liberal the opposition to wage. issue advocatedproved of introduction minimum ‘particularlyemb the The adopted 1996. in markets Workers the Act so-called and in ( were included Posted (atthe of establishment least minima wage formally) eme prevented the workers’ quotas and intensified legal controls. workers’ legal controls. and intensified quotas of theIn Germanyunlawful appeal, decreas BAU subcontractors 1993). (IG view onthe formerby employers union’s position construction was issue supported foreigners’more restrict generally, to employability economical in Consequently, their moreover, Germancolleagues; becam employment their illegal In the early 1990s, the Polish construction dealt domestic af unions primarily with Inearly the the 1990s, Polish Following threats 1992,similar creation Market’s in of the labor Single market IG BAU IG BAUIG and other unions from the German other from unions the and Trade UnionConfederation lobbied the government to put a ban on hiring the CEE workforceCEE a put ban and, the onhiring government to the lobbied 170 IG BAU Arbeitnehmer-Entsendegesetz ly depressed regions. The depressed ly e (GA rampant 2005). . Despite the shortcomings, . Despite rgence of multi-tier labor of multi-tier rgence r the building industryr y partners in the social role under the new d for the generald for the cies of large, , threatened by orkers’ ed CEE attled’, outh outh lecting lecting DGB fairs fairs FDP ) CEU eTD Collection BAU practices.on socialgoals, s exchange these information agreed the To meet unions to also planned to set up a joint information bureau in Warsaw, information bureau designedalso ‘repres planned to set in up a to joint me stage to and andannual relations Poland industrial Germany in and leadership of EU meanders the enlargementtransnati 6.5.2. and Industry and(SI2Construction Wood 2007). created was Germans invited was structural when only and reforms that period in it underwent construction 6.4). organizations firms (B1 Some unionized section important cf. 2005; Frankfurt and Cologne. employees of Polish tr wages constructingworking conditions an and express monitor the of activities operatingmonitor theircompanies countries’ abroad and and organizational alsomarkets with legal and assistance. provide to them They ofvowed construction defend the workers to interests from country theoperatin other year in Despitefirst initiative, common the the same of failure the the t IGBAU and w an Budowlani cooperation agreement in official (Solidarność, 1999), 2005). unionists (SC even Polish with their prove discuss not workinghesitant to did workers as successful, most proved companiesfellow however, (GA Overall, workers Polish and 2005). identify unlawful the made an attempt to establish cooperative links with the two Polish buil the twoPolish with cooperative establish to attempt made an links After several yearsAfter the inflow of migrant CEE several against of lobbying wo Budowlani IG BAUIG and officials hoped that it would be easier for the Poles to reach would to be hoped Poles easier it officials that for the their Solidarność ’s Construction Branch to the joint monitoring of Branch’s Construction the to joint 171 Solidarność onal onal cooperation ’s Sectoral Branch’s Sectoral the for jointly fight illegal jointly ding The unions. rkers, in 1999 in rkers, ain line between hree unions signedunions hree ent the common common ent the promised to promised to etings. They conditions conditions hich they tandards g ontheir project IG CEU eTD Collection Budowlani planned information exchange took place only in the initial phasethe following initial coo only place planned took the information exchange in As for a 2005). side (GAthe Polish the genuine lack to Germans, pointed engagement on of hand, onthe other expressed his concerns in this regard: concernsexpressed this his in fragility.organizational In a special preceding closur report the unit’s InBAU(IG unions’ inaction Germans’ was view, 2003). partially the due Polish t assistance theirtook share they that the nor expenses in provided organizational fullyas the used, functioning. From the very outset, the Poles approached the initiative with skepti functioning.From the with very the approached initiative the outset, Poles year closed 2003,after informationagenda. bureau in joint two was Similarly, the were useful issues find when it not asagreement’s did the no burning Poles onthe conclusion, operating pledgedIGunions costs (Solidarność, BAU and Budowlani its share to Inup employmentfrom Octfounding agreement Germany. in the bureau’s serve wor to forthe broader spot as Polish also public’, an but information workersinterests and init common of the communicate construction twocountries from IG BAU dialo social bad-quality B and policy’ seriously (IG bargaining European collective threaten our powerlessness weakness, their to due unders unions] Polish [the them make to difficult is it ‘Unfortunately, It soon appeared, however, that the above projects were impleme to It the that above however, difficult appeared, projects soon Solidarność representative ‘ went it as as far call to ’s contributions proved theas bureau’s neit’s sole the financing contributions Poles source, IG BAU representative, communication opportunities created opportunities we communication representative, the by bureau activist in charge spent most of his time in Germany in charge time of in his activist most 2005). spent The (SC 172 IG BAU ’s reconnaissance center’ (B22005).’s reconnaissance e, the bureau’schaire, the kers wishing take to ober 2000,the three AU 2003). AU 2003). u, they gue, tand that that tand had promised had cism; acism; 2000). 2000). s ofs o their peration peration nt. Thent. iatives to iatives to her re not not re CEU eTD Collection coincided the announcement with of earlier and essentia the union associations employers’ Septemberin 2000, construction latter theGerman crisis-ridden to be market restricte labor would period, during inflows, thepushed union the for acces long which a ten-year transition To protect German workers from consequences increased the negative CE of Germanarguing market, that labor Insocial protection systems. respect, this claiming‘old’ EU Europe’s accession their could that threaten premature and thethe the criticized in postcommunis EU loopholes accession criteria ZeitungSozialistische employment, the in post-enlargement period (Schmidt-Hullmann would continue countr constructionmigrants as market, low-wage excessive inflow of such from expectedenlargement nega that mobility. Germans workers’ CEE The account and in December 2000 proposed a flexible scheme of 3+2+2 years’ 2000 proposedaccount scheme along flexible and December of in t 3+2+2 Schörder favor arrangements,in social took partner Chancellor of transitional IG (ZDB,establishment BAUand the Since meantime in DBI 2000). IG BAU On the otherfailure i the that hand, fact to be the partlybureau’s due might states’BAU (IG 2000). East neighboring the from predominantly coming workers migrant il a on often – overtaken were they – jobs their lost already industr construction the in as well as agriculture, in and gardening, management and forestry in working people of thousands of ‘[t]ens ’s points, additionally restriction’s the similar spherepoints, in demandingf a of 2001). They asserted that CEE candidate countries had not yet 2001). fully candidate not countries They had met asserted CEE that IG BAUIG IG BAUIG ’s 173 protectionist position regarding position the post- protectionist was worried about the conditions of the was about worried the conditions d. In declaration issued a joint d. legal basis – by – basis legal DGB tive trends onthe German trends tive industrial relations industrial and t t states’ legal systems, ’s stance’s also shifted European in waste waste in E workforce s’ position into into s’ position y have have y lly repeated ies and illegal in in ransition ransition ts foundation ts reedom ofreedom s ofs the CEU eTD Collection periods, leaving the decision concerning their imposition to individual to EUperiods, member concerning leaving the decision their imposition backwards’ in union relations (Solidarność 2001) and ‘a (SolidarnośćBerl an backwards’build to 2001) new attempt relations union in IG BAU’s addressed to construction unionists from Poland’s westernaddressed was The unionists initiative regions. construction to and the Se Construction Agriculture in Industrial Relations and of the Development affiliatedorganization to Institute (PECO-InstIn cooperative2003, the so-called PECO initiative. market restrictions (DGBmarket and restrictions Solidarity 1999). According to declaration of trade at the andboth confederal unions, Polish levels, sectoral were disappoint German Thetaken stance protectionist unions’ theposition. by latter depa years 2005). Dietz 2003; afterfiveHusz (Bohle and or three therestrictions construction-related in onservices provision c which industries, periodtransition forlongest, workers the free seven-year long movement of was level May officially in the 2001,Germany at solution theaccepted European their country’s EU accession. theiraccession. country’s EU government fully to the Polish implement EU member statespressurize to (OPZZ 2001)from ETUC and and encouraged national even standards’ old Solidarność 2004; di workers confederationsunion strongly onconditions ‘employing [migrant] objected light anti-dumping in ofaccessionPoles negotiati their During own stance. EU 2005).the accep was Oder’ to Moreover, the(SC Germans’ in hard shift position the intention to ‘build partners ‘build side’ to (GAintention onthegoal Polish 2005). constructing The j of Once the transition period-relatedOnce eased, the transition tension concern over a lowqualityfollowed dialogueconcerna of the union’s over social and Poland, thus in Solidarność Solidarność IG BAU and DGB , launched the project ‘Cross-Border Collective Regulations ‘Cross-Border Regulations Collective the, launched project leaders, in which both officials against both labor set themselves which in leaders, 174 IG BAUIG Solidarność came up with yet another upwith came itut e.V.),itut an , it constituted a constituted ‘step , it rted from therted 1999 the social and additional ons, both Polish both ons, ould beould lifted opted for the opted states. When states. When ctors’, oint oint aquis t by the by t in Wall on Wall in guided by ed the with fferent before CEU eTD Collection BAU Germany in workingconditions acquainted with and became In and German Polish eighteen unionists. the of course seminars, lear the Poles the scheme such activities exc as ontrust-building focused panel and discussions collective bargaining suggested structures the titl by project’s workers manager, the an According the to project union. to and methods tools of membershipstrategies. recruitment Topics also involved Polish unions. From unions. Polish contribute theduring strengtheningknowledge to of would the disseminated the seminars andHe the led ofcontacts establishment to als 2005).personal between (G2 them Germa enhanced and understanding mutual wasrewarding, between Polish very as it union activists with valuable 2005), with while activists (SC union organizing skills nut to crack hard Migrant – a workers 6.5.3. and broadenedtheir (B2 skills their horizons’ 2005). unionists participatingrelations’argued 200Polish the officer trai in that contracted on the basis of bilateral agreements (GA 2005; G2 2005; 2005). Consequently, bilateralcontracted agreements of basis i (GA on the were laboreitherentering market as the German self-employed indivi constructionemploymentremained unresolved. sector Germany’s Moreover, in CEE FinanceGermany’s associations t Ministry employers’ in biggest and intensified its fight against and fightemployment illegal wage intensified its For dumping. Despite the restrictions on post-enlargement labor mobility, on Despitepost-enlargement the the restrictions p labor Solidarność ’s point of view, PECO was a major success, as it provided was as it PECO a of major’s view, success, point 175 IG BAU e soon proved too ambitious and ambitious too e proved soon IG BAU Budowlani activist, the PECO initiative initiative the PECO activist, he Action so-called ’s collective bargaining’s collective duals or as workers duals roblem of illegal of roblem ning ‘improved sessions ’s international one, it joined the one,joined it attracting young attracting nt about and wage nt hanges between o hoped that n 2004 nationals n unionists n unionists two IG IG CEU eTD Collection project was suspended. However, the fact that its timingproject its that CE fact with was However, coincided suspended. the accession attracted criticism from the Polish construction As for unions. from the a Polish accession attractedcriticism neither the denouncing campaign launched before the EU enlargement, nor the the introducti EU enlargement,neither nor campaign the denouncing before launched alternative, they suggested that that alternative, they suggested contribute among the attitudes spread to emp xenophobic German construction of t workers,et at. 2004). (Maurerfears They that companies not also expressed Committee, Executive union’s they the idea arguing as described ‘flawed’, t In pap was activists. aanonymous rejected position local by denunciation roots ofroots trade unionism. of solidarity, ruleimportant and remained […] thus struggle’, a faithful joint ‘ firms rather employed (‘ than illegally individuals BAU 2004),requires underscoring it measures’ (IG extraordinary taking that ( – Rules campaignGerman For a launched ‘Without market. it the construction other, der in BauwirtschaftSchwarzarbeit IndustryIllegal the( Construction in Alliance Employment against Germany. fines impose unlawful and and conductauthorized to workers expel employers controls, and customs wayinformation labor obtained to this was inspe further directed used report to of and employment the illegal instances collective agreement an file.engagement which anonymous The hotline, could established and be union rank of its Illegalenbeschäftigung Ohne geht es Regeln nicht! Inmembership the criticism, successand of the limited view of the venture IG BAU IG justified its campaignextraordinary its of ‘the that scale claiming by justified ’ - G1 2008; E1 2008). The intention notwithstanding,- intention G1 E1 2008). 2008; The ’ of the idea ), which aimed at combating illegal employment throughwhich aimed at combating active employment illegal IG BAU ), designed to monitor the extent of), unlawful the designed extent monitor practices to onthe lend active support to migrants, adopting ‘the most ‘theadopting migrants, support to lend most active 176 illegale Beschäftigung’illegale Aktionsbündnis gegen Aktionsbündnis and not not and er addresseder the to Budowlani Budowlani E countries’ EU hat it harmedhat it breaches. The targeted unlawful to the international to he campaign might ctorate offices, loyees. As an controversial illegality illegality No Way!’ official, from on of CEU eTD Collection possibly due to a negative image that the latter had createdpossibly engagem through a its image to negative the that latter due had migrant ( communities workers’ serviceand industry and extend to branches numerous thegroup. most constituted It employ however, attract to planned, was the Pol workersemployed agriculture, theamong German in whom and construction posted and se cover (E2 reach to 2006). foreign start-up The intended activities its union (EVW 2005). The crucial difference 2005).(EVW The crucial between thethewell employer, with case as dispute administra with a as legal of socialsought standing improve to lega migrants’ with them (§2.1.a) by providing independent status, constituency (B1 2005). constituency(B1 2005). at defendinga thus fightingworkplaces union ‘German’ and the for interes the aimed he merely claimed, construction initiatives, industry. at boosting Such could the heal crisis-ridde in citizens the periods situation transition for CEE (Schmidt-Hullmann and(Schmidt-Hullmann rather Buntenbach outside assistance 2006), would seek but be interestedshowed s joining would migrants addressed that in a their if it union awareness theirillustrated limited of regulati German collective aconstructionspring survey workers,among posted commissioned 2004,the union which aand ‘against’project not onthe German c ‘for’, operating migrants CEE Workers’ Union separateorganization from create to leadership (cf.activities Consequently,union 2006). decided Kahmann the On the wave the critique, of (EuropäischerWanderarbeiter, Verband der EVW EVW shared with Office the Executive IG BAU Eironline and in September 2004, it founded the European founded Migrant 2004,it and the September in IG BAU 2004; E3 2006). In line with the union’s statute, it Inunion’s statute, it E3 2006). 2004; the with line adopted a more cooperative approach and launchedapproach adopted cooperative a more EVW EVW 177 ’s activities to other to activities hosting EU countries large ’s and national labor organizations was the that and national labor organizations IG BAU ons (Laux 2005). (Laux Theons also poll and used its resources its and used to ). Despite its formally its Despite ). tive andtive linguistic help onstruction market. In market. onstruction n German IG BAUIG ts of its core ofts its ent in entpolicing in ees fromees other l assistancel in pecific needs an es IG BAU ’s image as ’s image asonal asonal , CEU eTD Collection protection of the former extended overextended protection when his/her returned of the the period a former worker to Budowlani Budowlani shift Post-enlargementa frombilate period: 6.5.4. act included the so-called countryactof included origin the so-called wasamong spurredEU Services European unions the trade by Directive. The workforcesubc construction market the inflow job of and illegal from dishonest unions asba unions a theirstandardscollective to countries’ serious threat and wage principle ofobliged state. the was The host rules viewed abide to the by laws of and and his/herestablishment, the country country w regulations of of or origin would be s servicesEU another allowed member provide to of onthe territory Overall, might activities unions’ be obstructed havingby fromcountry (B2 joining the They their nationa home further claimed 2005). unions that of termination membership contract, returning the lasted foreign after the employers (E2 2006). andcompanies, running a cooperating office databa closely the customs with indirectlyagasystem incentives, the of fought union membership selective another T wascountry, temporarilyor state. EU when member posted to he/she In the period following the EU’s eastern enlargement, arguably EU’sIn eastern enlargement, the the bigg following the period The construction As for unions. new was the by Polish initiative badly received EVW officers, was perceived as yetwas designed as tool perceived another by EVW could pose competition to CEE labor CEE could Given to pose organizations. that competition principle, 178 EVW stipulating or an that a individual company operating on ‘their’ territory (B12007). territory on‘their’ operating raltoEU-level relations? IG BAU to protect Germany’s protect to by West European West by workers could abstain workers could abstain inst unlawful inst se of insincere rgaining draft of the version tate onthe of basis hrough this hrough this est controversyest ontracting firms. ontracting firms. home as not l l EVW CEU eTD Collection participatedconfeder the their anti-Directive in though protests, even statements, however, neither SI2 (B1Be would beand impossible 2007). virtually 2006; health and inspections safety state accordance w orders, could twenty-sevenbe different to legal provided in countryafter services of ontheadoption rule: territory origin the when o the of they the joined EU.inferior that chaos’ conditions Finally, ‘legal feared working countries even with as le wage enlargement a lower rounds, when result of EU future posealso stressed a principle threat the that country would cu to of origin (B1 Poland in thesolutions’ 2006) of adoption eliminate the prospectsbetter ‘for Scandinavia Directive and wereenacted Germany, it inevitable in if the thea eyes of from solidarityseemModel, exclusively however, towar stem to feelings not did over Europea the 2006).Budowlani persistence(Solidarność Their of the and concern ‘undermineachievement ofsocial several decades dialogue the [Wester in of social prompt dumpingcountry introduce and workers would that to competition unfair In declaration, stated they that joint construction w the not a unions. organizations did ETUC demonstrations in Brussels and Strasbourg. BrusselsETUC demonstrations in and Strasbourg. Union. The idea of organizing migrant workers into a ambi migrantUnion. The separate too proved idea union workers of into organizing IGBAUopponents ofBAU the 2006). act 2005; (IG companies from and CEE, self-employed individuals social view gap. of Fearingarrangements, the East-West the least in not in The also witnessed post-enlargement the period of failure the European Mig The version the Directive’s objections were to liberal the shared by twoPoli Budowlani Budowlani high-rank official, the dissolution of collectivehigh-rank the bargaining dissolution official, in systems Solidarność ’s Construction Branch’s Construction nor 179 IG BAU was among the most vocalthe most among was Budowlani ations sent delegations for ations s initial version, would initial s rrent Polish standards Polish rrent flow of unlawful n] Europe’n] age monitoring f a member single actively would emerge would ds the West. In theds West. . The unions rant Workers rant sh sh vels and tious in in tious ant their n Social n Social yond the CEU eTD Collection project, preferred to organize migrant their(G1project, workers in own ranks 2008). preferred organize to base flux, as withe union assistance workers was who received constant in wouldleave chronic under-financing, in 2008 its operational activities were operational 2008its in activities overtakenchronic b under-financing, 10,000, by 2006 as as Ascontributions soon aresolved. the problem consequence, of was instead they but payingwould stop m whenexperienced exploitation, they their had workers aaddition, claimant specific the among attitude wouldmake migrant extract membership from fees changed once them res country they of their was it impos out, turned light Ascharacteristics. it of their ‘mobile’ West European contributeandWest to which logi financially unions, had expected been initiating the self-organizing that process were plans to transform it into a NGO migrant-targeting into BAU 2008). (IG were it transform plans to manner: manner: ar internationalofexpressed relations this Germany.The officer union’s periods was the willingnesssecond redirect to for CEE rationale transition and enteraggravated to workers were allowed (G firms if the CEE German market German such and sector could as only high stagnating demand construction unemployment 2011. The proble pre-enlargement maintained union its that and rhetoric claimed yea allowed workers periodperiodstransition for of the seven maximum to CEE potential destinations. In the meantime, they have discovered that w that discovered have they meantime, the In destinations. potential Parallel the change to of nagmn, 0 o CnrlEsen uoen wo xrse t expressed Austria and who Germany only Europeans imagine could Central-Eastern migrate to willingness of EU Before 80% goal. wider another, enlargement, also had periods] transition ‘[The EVW attracted only 1,000 members. To make things worse, its membership attracted its To makeworse, 1,000members. things only EVW ’s status, IG BAU 180 IG BAU had hoped for (E1 2008). Last,had (E1 hoped 2008). for least, not but actively supported the extension of activelyextension supported the sible tosible contact maintain and gument in a in gument following migration flows out idence (G1 2008). In 2008). (G1 idence y embership IG BAUIG In view of ages and ages m seekm assistance s their as eastern the planned rs, i.e. until rs, i.e. until ms of thems heir stically to the to stically 1 2008). The 1 2008). The , and there thout thout EVW be ’s CEU eTD Collection service provision and labor mobility. According to Klaus mobility. Wiesehügel, service According to and provision labor The of positively organization the temporary effect assessed restrict elsewhere (‘ their ope also ‘CEEonly dumpingbut moved have individuals, companies’ migrating Unionindustry: construction the strategies in 6.6. neighbors CEE andincome (G1 its gap 2008). between Germany the redirecting other to inflows also states, due EU but member to of migration would be migrationEast-West low,mainly the afor potential because of service sectors. cooperation, the i in previous the outlined chapter manufacturing context, for whetherreciprocity-based mechanism strategies and the examines of transnationalizing the context in unions analyse markets. EU section labor This hn hs i Gray n hv cagd hi mgain prefere migration their changed 2008)’. have and Germany in signif those are Ireland than and UK say, let’s in, prospects employment The by andpreceding section taken Germ presented stances policy Polish haben sich umorientiert haben ’; IG that post-2011 ’; The expected union BAU 2007). 181 the Polish-Germanperspectivethe of cross-border labor ions in the sphere in ions of IG BAU ementioned ementioned icantly better better icantly cs (G1 nces s also valid in also in valid s ’s chair, not narrowing an construction an s theirs ration CEU eTD Collection but persistedbut also duringthe downturn. The of proliferation practi illegal building sector. The second challenge was related to the regulatoryto building challenge sector. second regi related The was bankruptcies durin the industry andplagued rates unemployment increasing structural features of the construction industry and the wideconstruction of spread and industry illeg structural features of the anti-dumpingthe together police joint drives to employers’ with organized respectthis measuresrangingprotectionist abounded, for from lobbying a laborand union’s the using existing uphold law The regulations national strategies. controllable regulatory environment onthecontrollable other, environment regulatory 2003).employmentworkers, ‘grey’ third, of sphere (Menz emerged there the regulmarket, constructionsegmentation labor as of alongside the German with in was 2005). The of that which employment, illegal problem third intensified wagecons farminimum average Germany’sin remained below the pay andside of Eastdumping Europe South fullyfrom threat the the wage eradicate Directive Workers of Posted Workers the Posted andwages. the adoption Even the paylaw and firms Germany sending could workers to thus ‘country- much them lower workers’ governing Rules employee intra-EUwere i posting inflows. of the becameThe middle the as 1990s, towards situation difficult particularly cyclical and activities business the character related employm of 6.6.1. Zühlke-Robinet (2000:23) call ‘the deepest economic, structuralZühlke-Robinet (2000:23) cris call and ‘the social economic, deepest IGBAU Throughout the 1990s, Confronted with the growing competitive pressure on one hand and a less andand pressure less Confronted onone a the hand growing with less competitive : simultaneity of national and transnational strate simultaneitytransnational and : ofnational IG BAUIG faced a threefold challenge. One stemmed from challenge. the faced a stemmed threefold One 182 IG BAU tried to limit CEE workforce CEE inflows tried limit to ent instability in construction.ent instability in nitially not codified in EU nitially codifiednot EU in me governing foreignme truction sector (Menz truction ces led to a led to ces considerable nd cooperation nd with gies al practicesal the in associations. But the g Boschand what the boom theperiod boom wave of ar andar posted is’ in the Germanis’ in ans, as the ans, as the Act did not Act not did activities in in activities of-origin’ of-origin’ CEU eTD Collection pursed their joint goals. In contrast,pursed goals. their joint policies inconsistent and might have undermined trust of potential cooperation p of and cooperation inconsistent potential policies might have trust undermined supplementing its policing approach with organizing efforts. supplementing organizing policingwith its efforts. approach the Furthermore, easterncompetition. ran activities cross-border pa strategies ineffective access shiel proved when channels in only national at the three companies.unionists automotive transnati examined Thefor reached union members. In effect, the union wasInworst caught of worlds’members. ‘theboth the in dilemm union effect, launched cross-border cooperative ventures in certain areaslaunched from ea very certain cooperative in cross-border ventures national spheres andclearly transnational were of activity union separat was the two cases, An difference important enginebetween however, unionists. approachlevelfollowed resembling engagement, thus the by ‘dual-track’ simultaneously pushing for protectionist measures in the measures same in protectionist simultaneously issue areafor pushing unattractive. Last, but not least, Last,unattractive. not but make would voice unions expected immig bolder stronger that and pay thus demands CEE the Poles alsowould assist andby organizing collective sharing bargai would beorganizations the better illegal predisposed practi fight to construction hoping unions, cooperation the the that Polish sending with countr projects ‘desperation’, Lille of the national actions, or, of the out as limits claimed (2008: and 577), by Greer workers’ the intensified in post-accession period despite the inflows offi I and policingsector, unsuccessful. strategies protectionist rendered To an extent, the logicTo an extent, behind IG BAU attempted to tackle the problems with transnationalIt tackle with to strategies. the attempted problems l IG BAU IG BAU IG BAU directly approached CEE migrants byapproached directly founding migrants CEE engaged cooperation, transnational in ’s activities was similar to that of the German of was that to the similar ’s activities 183 ces of ‘their’ companies. It of companies. ‘their’ ces rallel to rallel to n the same vein, CEE n the same ning tips with them, as it as them, with it tips ning ed: the unionists the unionists ed: cial ban. Recognizingcial ding members its from rly onand persistentlyrly s, which rendered s, its the German VW GermanVW the IG BAU a identified by that at VW, at that VW, artners and ’s national- onal y aunched EVW ration EVW , CEU eTD Collection positively assessed the PECO initiative, as the knowledge initiative, positively recassessed of membership the PECO both negotiations and their day-to-day activities. negotiations day-to-day activities. and their be sharedcollective use could bargaining German union theby stronger techniques interestedtheir organizati projects cross-border in aiming boost to byinitiated manufacturingacrossand cooperated building the Poles sector, borders ventures followed identified counterparts the industr for automotive in the one their labor Forthey market. place the Polish a union) and the first in belonged leave to migrant support wishing their memb union constituency quit to rather workers than to t ofamount resources preferred organizations remaining at their the disposal, In levels and revenues.corresponding the limi low unionization view of drop union the in towards resultedattitudes decrease a rate trade in sharp unions, of density union growingenterprises combined negatiand with the construction, in unemployment set of challenges. Structural thecomplex changes related to privatiz unions: Polish limitedfrommigrants’gains 6.6.2. ranks. its organize in them see could 128; neither it sectionmigra and 6.3),preventCastles (1973: Kosack as Solidarność The logic guiding Polish construction unionists’ engagementThe constructionguiding unionists’ logic coop cross-border Polish in For the Polish construction unions, postcommunist transformation brought an postcommunist transformation unions, even For brought construction more the Polish IG BAU and . The case study evidence shows, however, that the same unions were case unions however, the . The same evidence more study shows, that Budowlani Budowlani were engage unwilling schemes the migrant-targeting in to 184 assistance onal capacities. They ation ofation large state-owned only when resourceswhen only o assist their owno assist ruitment andruitment s ands the this reason, this nts’ inflows nor nts’ nor inflows ve societal d in national d in y. Iny. car both ership (if erative ted CEU eTD Collection between Polish-German labor transnationalism in manufacturingandbetween servic labor in transnationalism Polish-German participatingformer. the in coincided with factorof this the that be PECO fact not As overstated. the should evidence shows, the above-mentioned‘double-faced’ t the although by German union, pursued policy derived reasonpossible Another from forprojects. migrant-targeting t perhaps vie in maketheir colleagues to automotive commitments, cross-border remained unionists more however,constituency. time, construction re At the same and/orexchangesacquiredfor knowledge through could transnational be the used benef competition; as aplayedcompetition; result, transnational a subordinate cooperation proved cr constituenciesunion ineffective from solutions sheltering in national sectors both mobility in cross-border e Similarly, issue. initiatives counterparts betweenconstruction comparisons’, were their dom discussions were unionists automotive relocationswith primarily concerned and inter-pla of the production liberalization to the factors’ transnationalizflows and cross-border liaisoningcontexts, wasp response in launched union competitive to transnationalism automotiveLabor the in 6.6.3. and interest-driven. Through their transnational engagement, unions catered unions their prim transnationalinterest-driven. engagement, Through the Finally, twotypes in organizations’ national activities activism. union se of common traits differencestraits and common Buildinganalysis draw of to unions’ stances, possible is of onthe a par it number IG BAU ’s lobbying in favor for transition periodprevent not lobbying did for favor from the in Poles ’s transition 185 construction sectors: construction sectors: merged when only national heir inaction could beheir the ation ofation markets. While role role eIn sectors. both vis-à-vis inated by the labor arily of the needs to nt ‘coercivent oss-border w of limited gainsw of limited ctors were he significance ressure related luctant than luctant the project it of theirit allels CEU eTD Collection primarily at the company level,primarilyat by can the which explained company again be the sect pressures on cross-border EU regulations and service since provision worke derived actions. from national theirgains own constituency, cross-border assessing from potential venture Conclusions:the industry case construction 6.7. t in was less intense than cooperationresult, cross-border construction in union as hence membersabstained potential migra in and from participating count the onm not projects,laborwould have they market: could co-finance while to they fromresults. e Second, benefit assistance would not the Poles much laborers to only measurestowardswhen bring not transnational did protectionist solutions t made national actions move modest and conducive the Germans prioritized dumping, wage to gains. viewreciprocal in of features the First, structural sector’s tha offered would bring sides, construction a advantages both narrower to multiple and wherecontactscross-border G cases oras between GM, Polish VW such contrast representation in union ‘successfulFurthermore, (Anner with et al. 2006). and TNCs characteristics: the of the presence ‘big players’– large In the in activities union weak organizations. labor sectoral-level contrast, were initiatives thehighly majority undert fragmented and of transnational thus There are important differences between the two sectors, though. Constructi Thereare though. the two sectors, differences important between This chapter growingThis service to exposed been have argued that sectors 186 strength of company-level strength t made it particularly made t it nt-targeting schemes. As a schemes. nt-targeting or’s structuralor’s car place took industry s againsts those rs’ shifted mobility erman unionists competitive competitive scope for scope xiting the Polish the Polish xiting he car sector. aken by relativelyaken by he expected ’ cooperation ’ on was igrants s s CEU eTD Collection Europe’s unions. innovative strategies recruitment newcomers, or by by it utilizing be anfor inclusionary for workers’ try a opt approach entry ban and or onmigrant theycoul standards.core end, of was To this national wage the concern preservation workforce theIn liberalin view direction. of Wes inflows, the CEE cheaper workforce. Inworkforce. dumping of threat, the view ofconstruction the domestic a could andwages have negative working conditions impact on andposted w 2005). Vincentz of Nevertheless, migrant and the strong concentration remained the while 1990s, in post-enlargement predi below the immigration countries’ ofaccessionIn (Marquez infl case of EU 2010). Germany, the bulk the long period of time not only due to legal limitations, but also in view alsolong in only ofbut not limitations, the time growing period due legal to of strategies Attheof same protectionist migrant workers’ time, inflow. and (2000), does Roosblad not it Kosack and Asand argued Penninx (1973) Castles by seek comeprotect to as standards wage unions core that a surprise of their exchangesthough less intense. their were transnational the identified that car in to German relations unions’ was i construction similar Ing themselves from respect, could thebenefit schemes. this the mechanism were whenfinanced the Westerners with by cross-border only projects interest migrants’ in assistance limited however,unions, initiatives showed tw labor The organizations. migrantcooperative CEE with ties and organizing proved stra ineffective supplementOnly its the union did the national solutions when workers’alliancesaccess t domestic employers with CEE prevent to CEE workersCEE European labor onWest had markets present before been long IG BAU 187 engaged in government engaged lobbying and in built o the German labor market. cooperating ‘new’ with cannot be sustained cannot over a the latter and when the they constituency view in . Theycooperated t Europeant unions’ cted levels (Knogler overning Polish and Polish overning o Polish building o Polish ndustry, even ndustry, even to organize the organize to ows took placeows took their orkers in d either push tegy with CEU eTD Collection positive one on remuneration levels the forces latter) in to of one factor price onremuneration positive due groupon wages have of low-income the a former impact countries in negative will of EU Thetransnationalization membereconomies. economic states’ integra state nation boundaries. implemented within regardLille this in mainly be 2008), initiatives will pursued receivin by (s workers ofcalls unions’ strategies for coordination onmigrant transnational posted workforce.levelsand for the domestic unions mightintegrate try theirStill, for rankspush into migrants equa and to nor activities union bycan (S be instruments by regulatory stopped neither EVW 188 ’s experience shows, however, that despite experience shows, however, despite that ’s g country and unions inn andinn Ochel 2003). tion of high- andtion equalization, which equalization, l remuneration l eeGreer and e.g. states (and a states (and CEU eTD Collection but its timing its but engine and AtVW’s intensityf remained case-specific. solutions proved moresolutions German attractive and for unionists. both Polish featured atunit cross-borderattempts fai which labor however liaisoning, associatedrisks became contesting management’s demands with negligi They Westernersforcooperated exchange strike in the support and with str their cooperation, to a deal a concession attract concluding much to needed investment strategymodernization AtGM, initia plant. the benefit Poles the Polish would colleaguesPolish madeco sure and assistance organizational with the that In strategiescapacity regard cross-border in t to addition, distribution. of the unionists time, coordinated advancedwas over most and a their sustained period long GM and cross-border MANfirst showed cooperation emerged union at the that comparisons.importancefocusing The inquiry onVW’ empirical of inter-plant labor structuralto due transnationalism wasthat its chara to least conducive the automotive in and German relationsindustry examined between Polish unionists whyfind out andwhat Western and cooperatedI under conditions union CEE each with other, also at haveand sectoral onlyunions company taken at levels but confederal, root not of the pre-enlargement cross-border literature, between ‘ol liaisoning was driven primarily by cost-benefit considerations. German wascost-benefit driven unionis primarily considerations. by processes, Europ East-West andstructural socialization preconditions Conclusions Drawing on the analysis of the empirical material, I Drawinganalysisargued des of the empirical onthe that material, This research was driven by an empirical puzzle. Contrary researchbyThis empirical an waspuzzle. the to pes driven 189 ts soughtts coordinate their to d’ and ‘new’and Europe’s d’ actories, wherecooperation actories, ean transnationalism labor he Germans provided their ble. Finally, ble. bus MAN’s led as national led mpany’s pite the importance of thepite ategic when advice, cteristics and the simistic predictions simistic llyfrom abstained twoenterprises, s engines plants, – the sector –the sector . In. to order facility. CEU eTD Collection production to their sites, whereas the latter helped their partners theirproduction CEE whereas to sites, the latter s helped the lack with associated costs potential were ofPole coordination The high. too quo attracGerman to the management’sto the former vowed concede unions: to not demands The reciprocal resultingcommitments. exchanges cooperation involved be renounce to unionists underbidding‘pulled’and accept the weaker transnational Polish transnationalmake arena cross-border initiate them West and liaisoning, the p cooperation suchfrom as bargaining local concession solutions than or the from could profit morehand, they were ‘go whenever ready to transnational’ workerscheapervulnerable the side of Polish underbidding a significantly to from access was This secure channels. because through national standing their strategies the areas in the Poles subject with cross-border to benchmar organizations and/or provided them with enhanced access corporate to enhanced with decision-maker them and/ororganizations provided was the identified that car in similar theycooperated but sector, less i unions’ the logicEuropean constructionanalysis showed The that behind markets. which strong was pressures due to the inflow exposed to of cheap competitive CEE I relations theunion con in the chapter last the Polish-German reconstructed whether To my explanatory test potential. wasmay its argument v limit I and thehowever, labor West in the traditions weakness claimed E in union divergent that country other configurations alsoand in Europe’s sectors were sites, present for importantly similarity cross-border most betoutput liaisoning, union generalizedgiven setting automotive beyond the Polish-German the that s . In ‘pushed’. unavailabilityeffect, solutions the Germa while the of national Iguiding furtherasserted the above cooperative union mechanism that be 190 ntensely due to the to ntensely due king, when they could not king, trengthen their trengthen alid in service in alid in sectors, ween ‘old’ and ‘new’ ween these spheres were spheres these tructural prerequisites prerequisites tructural tween Polish andtween Polish erners’ support struction industry,struction . At the same time, reservation of cross-border s, onthes, other ns onto the onto ns havior could behavior nd therefore nd therefore interactions labor to West laborWest to s. s. t t ast status status CEU eTD Collection particular, of presented develops studies it ideas the theoretical in participatingworkers’ schemes. migrants in support and limited gainsnational Pol solutions Germans’attachment the by derived to variables. variables. the ma to reassesses them and their links role exchanges stimulating union in Third, rather for refutingcontext. explanations cross-borde alternative than such ‘alternatives’concrete the as Eas in ‘incentives’ and meaning terms to cooperative a mechanism(1980)causal behind unions’ outliningby a behavior Second,providestime. further it interest-based of to support accounts labor unions’ behavior in shifts are that at captured conducted analyses by always not sectors.important study character ma The of additionally the longitudinal Europeanuses re original empirical union evidence reconstruct to East-West forums initiated forumsbyfirm, or initiated such the as seminars East-West the the EWC ( their with foreign also would socialize equipment, but tra counterparts within enjoy of support their of company office significant the space and form in sta were comfortable unionists regard, theVW most in this situation. seems that it othersthan employer’s or in due at positive least to t permissive attitude was and establish Meardi to cross- easier maintain for 2010), unionists i.e. it that was some ‘socialization cases in cheap’ that expect (personal communica of liaisoning. union theItlabor extent deficie and transnationalism a is serious does First, it the relation scrutinize limitations. not between the manage My dissertation offers a threefold contribution to the industrial relationsMy thea industrial to li contribution threefold dissertation offers Despite gatherpresent to efforts my suf quality high study the data, 191 Ulman (1975) and Logue and Ulman (1975) ment’s attitude towards attitude ment’s owards such activities. In suchowards activities. tion with Guglielmo with tion kes it possible to spot spot to possible it kes see section 2.7). On section 2.7).see fers from two two from fers r labor cooperation, it t-West European t-West transnationalism; in in transnationalism; lations in two in lations in explanatoryin te-of-the-art ITte-of-the-art nsnational union nsnational union ncy, could as one nd assigning nd assigning es from Not onlyNot they did a single of point border contacts contacts border terature. First, it CEU eTD Collection 24 Europeanother suchand as countries West theNorway UK migrant-receiving German onthe given the that literature heightened relations union activism documents European casestudy Similarly, b the setting. construction might well industrya the East-W whole, or, the as Polish-German in even widely, context, in more certaintyfull for section identified in 6.2holds the that t cooperation mechanism (cf. broaderarguments favor in their are secti plausible validity of fromthe The stems rel the choice secondand the case limitation of method study I cases.generalizedifficultyexamined as beyond findings Much the to betweencorporatefew andpolicies reconstruct labor to the link transna spokes andthree one management a with with company interviews representatives Icompaniesaccess repeatedly company and to denied was officials mana variablegivenfactor’more Unfort this that consideration. be should suggests of the each concerningnational the workforces role ambiguity other. The against pol and the reluctanceexactly unions with its its negotiate to because of cooperation.act cross-borde firm for featured as The intense union a stimulus mi attitude management’sthe otherthe GM that case hand, negative however, suggests Tapia 2009. Tapia of casesacrossensurecomparability different selected nati the very is causal it thoroughly them examine me to Second, inferences. enough ha derive to ofnumberthe a inclusion of higher interacti company-level East-West union r findings’ my comparing ofboost significantly would not cases a number small applydifficult to comparativecompany-lev the the analysis to method of See e.g. Eldring et al. 2009; Fitzgerald and Hardy and Fitzgerald 2009; al. et Eldring e.g. See Although political scientists tend to value more tend to than comparisons case studies, Although scientists political 2009; Fitzgerald and Hardy 2010; Heyes 2008; Kring 2008; Heyes Hardy2010; and Fitzgerald 2009; 192 onal contexts and union traditions. and traditions. union onal contexts on 5.5), it cannoton 5.5), it be stated with e portraying Polish- only believe that my my that believe tionalism. tionalism. icy of playing off el union relations.el union First, ged conduct to only ons would not allow wouldnot ons unately,at three all r labor liaisoning . 24 obustness, whileobustness, he automotive ‘management man –far too side of it is very is it ght also est s 2009 and and s2009 ated rd to CEU eTD Collection but also in other parts of the world. It for other alsothe in examined, world.but parts instance, could of be whet pressure the of specific but Nor present, orientation was strategic unions and their Scandinavian counterparts. In country andpairs,unions com counterparts. their cross-border Scandinavian both fromorganizations countriesand for other Poland, betwe than instance Germany those many analyze to re setting, would be subsidiaries’ also it interesting Beyond type bonds. in ‘one union factors comp of the and behind intensity the variation formssocioeconomic if what give so, of coordination distinct union to and contexts rise liaisoningunion only such at not subsidiaries or MNCs as are located GM, VW whose applying Still, unions. CEE be a of for kind suggestion design valid could r future this bring to not phenomena. analytically together distinct compare to not or with be ‘apples should extremelydefinition), however, cautious one Lockecomparisonsso-called constructingWhen (see contextualized these cooperation (cf. Gajewska union single et Anner al. phenomenon 2006; 2009). – transnational undertaken as expr variousinitiatives levels viewing of them organization, at union goas as far the compare To evidence to be di authors they sure, provide. some generali to again impossible would Ifbegrounds, it they differed many on too effect but instead to explore the motivations behind cooperativeeffect the instead explore motivations to but o behavior I the ‘host my interesting,method examine not to 2007). was intention While it find this (cf.variables of countryand host onthe hence factors Kahanc role could focus constant keep to possible comparison manyit company- would makecountry and unions home andhome country theirgiven counterparts unionists at foreign a firm’s subsidia might have catered to a different outcome in regard to cooperation/ to mightcatered lack regard have in a to thereof. different outcome A possible solution to the to atwould be rel solution A look comparability to possible problem 193 dic unions (see 5.5) section dic unions lations between labor lations and Thelen 1995for f her different both ze on the of basis ze fferent types of ations betweenations ries. Such Ina similar Western and essions ofessions a petitive petitive esearch on -related anges’, i.e. in Europe, Europe, in en Baltic Baltic en ova ova are the any, -country’ CEU eTD Collection and Kay 2005 Kay2005 and 20 Jacoby and Burgoon 2004; al. et Delp 2001; Compa the launch of parallel activities at Westernthe and launch subsidiaries. CEE of activities parallel Theircomplementary turn, creates in focus different structura on production, for low-end, goodsfactories and indust US semi-finished Canadian manufacture tend to A nature.economic counterparts might of Second, be a than South more political or US Canadian theirrather assistance to s unions rule, by offered and than the thus Latin might in beinitiatives a unionism Am task. daunting First, free trade Here ensuring theAmerican comparabil however, organizations. again, labor 25 common departedfrom accor century internationalism, the of nineteenth labor vision countries, joint initiativescountries, of need workforces all joint the serve interests to ques in coordinatecounterpa their leadersin country.union Even their with to if manage at other most, company themselvesat colleagues at their with own or, plant intensification cross-border competitive pressure, mem rank-and-file growing transnabusiness been).Despitedebatable ever if they had reference‘European’ important wor most frames for ceased be to the the statenation dominance,It century’sera of the because so the twentieth in was guided interests of and aby their not primarily constituencies the unifiby their ‘democracyand at (Turner at social their work’ standards 1993) companies, forces join and did unions German Polish Introduction).(see automotive defe While in the secondary literature could bevein,American it fruitful compare‘labor to and transnat European See e.g. Armbruster 1998; Boswell and Stevis 1997; Stevis and Boswell 1998; Armbruster e.g. See In seems European East-West that it of findings, my cooper light labor interests of the working crossrealized ofconcerted only the could be interests people via 25 suggests that US and Canadian unions actively liaison with Latin suggests with actively and unions US that liaison Canadian Carr 1999; Dombois and Hornberger 1999; 1999 Johns 1999; Hornberger Domboisand 1999; Carr 04; Hathaway 2000; Frundt 2005; Roman and Arregui 2 Arregui Roman and 2005; Frundt Hathaway2000; 04; 194 tionalization and tionalization bers continue to identify to continue bers king people (in fact, it is is it (in fact, people king ed workingclassed ethos. erica is anerica is exception ding which to ionalisms’, givenionalisms’, that subsidiaries located l preconditions than preconditions l ity cross-border of tion tion ‘global or the ation significantly ation rts from other rts from other actions were merican and -border action -border outhern be more nse of ries. ; 005 005 CEU eTD Collection by directly intervening in corporateby decision-making. During in negotiations directly intervening production of its Clio IV Bursa, in model Clio production of its ( Turkey production of the new Panda in Italy rather than in the Polish Tychy,Italy the the l Polish production of the despite in newrather than in Panda Pomigliano of its utilization increase D’Arcoplan to capacity the site, pressurized production Fiat at home As the increase a plants. company’s to additional concessions to save their members’ jobs. Fiat concessionsadditional save Panda’s to relocation their jobs. members’ were gained countries’ kind readinterventions of the of which approval this the unions, labor transnationalism at GM (see Similarly, 5.7forlabor the at transnationalism details). section the granted German thethe support of scales vocaland favor –once it unions its advoc in keep mainlyto openplants Ope and four at all other shed German jobs European It thanthough other M required level a investors. of was it higher support public Germangovernment the announced Magna- their for publicly preference adopting andcar demand-boosting income-supporting by measures only not industries byrestructuring Europeangovernments faced West threats carmakers, which wasIn thebankru sector. automotive pronounced in particularly of the view retaining jobs at their French factories and attempted to dissuaderetainingat to factories their the and l French attempted jobs andSarkozy Citroen support for Renault government’s conditiona made Peugeot the counterparts. national ‘windowsstanding, of of thei secure to at opportunity’ their the even cost make and fromhowever, the latter their engagement withdraw to are likely unions national alternatives When attractive a transnational national that to solutions. significantcost advantages ( The became c clear fragility of during commitments the cross-border 2008-2009 Eironline 2010; 2010; Gazeta Wyborcza Gazeta 195 Reuters 2010b). Importantly, 2010b). state 2010b). InFrance, 2010b). President atter from launching from atter the firm launched the rushed to rescue to ‘their’ rushed Italian government Sberbank bid, even even bid, Sberbank over Opel’s the sale, deal, for instance, part of a million €700 ctivism appear,ctivism agna’s promise l sites that tilted tilted that sites l atter’s r foreign use of ptcy and l on l , but also , but y offer to risis, risis, ates of ates of CEU eTD Collection produced in Polkowice (see section 2.6), met with mixed reactionsproduced among mixed German with Polkowice section (see in 2.6), empl met late whichplant, place 2008due took inadequate demand to old-technology-based for in for the Poles’ presence at the ( site for at the Poles’ presence only councilorsconcerns localagainwere when once works assuaged explai the l ofwho the the Polish feared cheaper plant’s with workforce the substitution CEE counterparts, the Westerners sought to secure their jobs by capi counterparts, theirbyCEE jobs secure to sought the Westerners Rather nationalstratand boundaries. werewithin than coordinating formulated European downturn mainlyWest the took late for to responses 2008-2009 union a defensive voiced the all, evidence2009). in All the cautious optimism despite that suggests Staythrope in sites across atIsle Alstom and the protests region and onthe s workersfromfollowed other action was states.by EU The posted member give should the taxes Britishterritory citizens’ jobs from and financed Lindsey proje at investments the Refinery, Oil major that maintaining In Unite confederationsamong workforce. and 2009,GMB participate the domestic growing view in of thehad une apolicies their hard inclusionary sustaining time workers’ forerunners onceduring British migrant unions, Even org the of the downturn. were European under put schemes consi labor West by launched organizations D’Arcoflexibilityincreasing(at Pomigliano working time Italy’s andwasconfederations accompanie signed by labor main three division, press reports wordivision, transfer indicate Polish the that temporary of In asallies, competitors. but foreign potential c as colleagues not the their interestcrisis-related cross-border in froze worries liai Even when the governments abstainedEven Europeangovernments from intervention, when West direct the work Freie Presse 196 2008). In assistance a vein, migrants’ similar 2008). Gazeta WyborczaGazeta soning and made them them perceiveandsoning made their ase of VW’s engineVW’s ase of talizing ontheirtalizing ct onthe launched UK local labor rather to than d by an agreement d by kers to the Chemnitz the Chemnitz to kers of Grain (Barnard ympathy strikes 2010b). aborers. The derable strain egies their with ned the reasons mployment mployment by Erne (2010), Erneby d in protests d in anizing, oyees, oyees, engines m m ers’ CEU eTD Collection prove temporary in view ofprove theircost advantage ‘old’ persisting view in over temporary Euro sooner or later economics would prevail over politics, i.e. that job shedding i.e.sooner that job would prevail economics or over later at the politics, Wyborcza and East Asia, Polish factoriesand might expensive’ and East prove soon Asia, the Polish local m ‘too unions post-S locations in the rise with automotive oftheyare Second, new to. subject decreasesgapthe West between narrowing the East social and the the of theyassistance seek Western colleagues, turn who will might in the of their In wagesvoice higher t and (Meardi and working for 2007). push conditions better shortagescontinue skill tighten are to emigration, unions CEE likely due and more to t areforgottencooperation oncegrudges run, the crisis-related long in wave their 2008-2009 solidarity the dismissals East. in during the ‘share theirto Wester restructuring of with post-crisis the pain’ hardship.interested the The in period Easterner policies ofpursued economic trust unionists’ given CEE mightwas beWe undermined difficult that theby phase,fair At least the howe initial in and investment capacity distribution. their easternandcross-border again with counterp liaison try cooperation to may Europeanthe unionists loweringreorient West support, levels of state are dimension conflicts likely along the more East-West even become to p the economy, in restructuringinvolvement leaving itself the the task industry to governments from theycould their only like hope, receive not did Sincepolicies. unionists CEE governments’ c protectionist When the crisis ends and West Europeangovernments West the withdraw crisisWhen ends and their extraordinar On the other hand, CEE unionists might beOn moreunionists thecross-border other engage inclined to hand, CEE in 2009b). 2009b). 197 Solidarność ’s viceat chair Opel Gliwice, that n colleagues, who did not show who not did n colleagues, . First, as labor CEE . markets competitive pressurecompetitive omparable assistance omparable assistance pe’s plants ( plants pe’s ronounced.In of view themselves towards ver, such coordination arts order in secure to be eager help as to sterners’ self- s might be reluctant mights be oviet countriesoviet , distributional , distributional ir sites would ir sites heir struggle, Gazeta o use their o use ight be y CEU eTD Collection putting workers from the old and new EU member states into the same boat the same states and into old putting boat new workers from EU the member mightbecomes it facilitatingEas as imminent, a act factor powerful If furthereas orderforced in concessions east. avoid the relocations to offer to whether materialize. a change will radical technological such Itincentives their counterparts. coordinatewith CEE to remains still which cease turn might in will reduce plants’automotive output be to identical, greening Europe’s to fuel remain diversification cor and limited industrial IfEuropean dependence and the 2010). (Bernaciak Šćepanović bene R&D onthe West the stand cha up to not for might sites CEE well energy alternative sources, and reduction therevolution induced r emissions’ regulatoryby for CO2 pressures carcheaper Alternatively, if the a undergoes eastern competitors. industry 198 t–West Europeanexchanges, t–West to be however, to seen, technological e, Western and CEE e, llenge due their to vis-à-vis tern threat the Westerners’ elated searchelated even even fits offits CEU eTD Collection EVW EVW IG BAU Budowlani Budowlani IG Metall 15/6/2007. Branch unionism coordinator and EWC expert at expert andBranch coordinator EWC unionism Solidarność Gdańsk,1990s. 12/6/2007. International officer at relations 5/6/2007. Anonymous high-rank and Katowice,6/5/2006 4/7/2007. Chair of International Relations OfficeInternationalChair of Relations at Berlin, unions. 2/5/2005. Polish Solidarność from 12/6/2007. unions German-speakingwith Gdańsk, countries. Secretary of 3/5/2005. International officer at relations 3/1/2007. Internationaleconomist at officer and relations Scandinavianwith Gdańsk, unions. and 2and 14/6/2007. 3/1/2007 and 27/4/2005. Secretary of list interview Appendix: officer based in Warsaw. Telephone interview, 20/4/2006. Warsaw. in 20/4/2006. based Telephone interview, officer officer based in Frankfurt am Main. Telephone interview, 21/04/2006. am Main. Telephone interview, Frankfurt in based 21/04/2006. officer officer in the Berlin-Brandenburg-Saxony in charge of the PECO projeBerlin-Brandenburg-Saxony the PECO charge officerin the of in ’s Berlin-Brandenburg-Saxony for’s responsible cross-bor officer Secretary. Warsaw, 27/6/2007. 4/4/2006; Budapest, Warsaw, 28/4/2005; international relations officer. 28/4/2005. Warsaw, officer at the union’s Membership union’s Department. officerGdańsk, Development at 13/6/2007. the ’s longtime activist responsible the e union’s international in ’s for contacts longtime the activist Solidarność Solidarność IG BAUIG ’s Sectoral Branch for the Metalworking Industry. SectoralTelephoneMetalworkingfor Branch ’s the interview, ’s Sectoral Branch for the Construction and Wood Industry. and SectoralConstruction Wood for Branch’s 26 Cracow, the officer. Telephone interview, 12/5/2005. interview, officer. 12/5/2005. Telephone Solidarność Solidarność Solidarność ’s National Commission responsible for contacts Commission ’s National ’s National Commission responsible for contacts Commission ’s National 199 Solidarność Solidarność ’s National Commission. Gdańsk, ’s National Commission. National Commission. Gdańsk, National Commission. ’s National Commission; Gdańsk. ’s National Commission; der contactsder the with ct. Berlin, ct. Berlin, arly CEU eTD Collection Metalowcy Metalowcy IG Metall IG Metall IG Metall Solidarność 6/11/2007. Solidarność Solidarność Solidarność Chair of Solidarność Solidarność Solidarność Solidarność Secretary of the Warsaw. in OfficerFriedrich Warsaw, Foundation Ebert 26/6/2007. at the Director Warsaw.Ebert in Friedrich Warsaw, Foundation of 26/6/2007. the 29/11/2007. Rüsselsheim, generalEEFcouncil chair. and chair works Opel’s 27/11/2007. board. amMANMain, Frankfurt AG’s supervisory Officer at Bochum, Bochum’sScientific advisorcouncil. Opel 26/11/2007. to works council chairWorks Bochum, Bochum. at Opel 26/11/2007. 30/11/2007. Solidarność’s Solidarność’s international relations officer responsible for the textile industry. Fra industry. for officer international responsible the relations textile international relations officer. Frankfurt am Main, 30/11/2007. officer. am international Main, 30/11/2007. Frankfurt relations supervisor of MAN and AG Commercial a Group and Vehicles member supervisor MAN of of IG MetallIG chair at MAN Poznań. Poznań, 8/11/2007. Poznań. at chair MAN chair at MAN Starachowice. Starachowice, 15/11/2007. Starachowice. 15/11/2007. at Starachowice, chair MAN member EEF interview,Opel Gliwice. for and representative Telephone officer at VW Poznań. Poznań, 9/11/ Poznań. 2007. Poznań, officerat VW 2007. chair Poznań, 9/11/ Poznań. at VW chair Starachowice. 15/11/2007. at Starachowice, MAN chair Gliwice. at Gliwice, Opel 6/11/2007 officer and State Labor officerandInspectorate State at Opel representative Gliw deputy at telephone Opel Gliwice. 6/11/2007; interview, Gliwice, chair 20/8/2009. chair telephone Polkowice. Polkowice, at 13/11/2007; VW interview, 16/10/2008. Metalowcy Metalowcy ’s EWC Team. Main, 27/11/2007. Frankfurt am ’s EWC Automotive Industry Warsaw, 16/11/2007 Automotive Section. federation. Warsaw, 28/6/2007. Warsaw, 28/6/2007. federation. 200 . ice. Gliwice, nkfurt am Main, nkfurt 21/11/2007. 21/11/2007. CEU eTD Collection IG Metall IG Metall IG Metall Solidarność Formerchair of Evangelical Duisburg, Church. 8/8/2008. Institut Gesellschaftre fürResearcherand at Kirche activist und forIG the Frankfurt GMEECO project. Metall officer am Ma responsible Main, 24/6/2008. theFrankfurt GMEECO to project.Assistant am Solidarność 25/5/ Chemnitz, 2008. Chemnitz. Deputy at chair VW works council Chemnitz, Chemnitz. council chairWorks 25/5/2008. at VW Deputy at chair Opelworks 20/5/2008. Eisenach, Eisenach. council council chairWorks Eisenach. at Opel 20/5/2008. Eisenach, Management at Opel 19/5/2008. Eisenach, Eisenach. spokesman council Opel 9/5/2008. memberBochum, Works Bochum. at 4/ Poznań, MAN factories. and delegaterepresentingMAN’s Euroforum Polish EWC Chair of Salzgitter. council Salzgitter, chair 8/12/2007. Works at VW Salzgitter, 6/12/2007. de Salzgitter and in Deputy at a chair MANworks division Euroforum bus council Salzgitter, 6/12/2007. Salzgitter. Salzgitter, in council 6/12/2007. chairWorks division bus at MAN 2007. Wolfs council’sgeneral oncross-borderVolkswagen expert contacts. union works Metalowcy member and former EMF coordinator for GM. Frankfurt am Main, 24/6/2008. am Main, GM. 24/6/2008. Frankfurtandfor coordinator member former EMF officer in the Chemnitz district. 2008. 26/5/ Chemnitz, Chemnitz officer the in deputy chair in Salzgitter district and Salzgitter deputy district in local chair chair Żerańcar Warsaw, plant. at Warsaw/ 25/9/2008. chair at Johnson Controls Siemianowice. Controls chair 8/6/2008 Berlin, at Johnson Solidarność’s Solidarność’s ’s federation in the Wielkopolska region. Poznań, 4/1/2008. 4/1/2008. region.’s federation the Poznań, Wielkopolska in Automotive Industry Zielona11/9/2008. Góra, Automotive Section, 201 IG Metall supervisor of MAN supervisor Salzgitter. lated to the Westphalian Westphalian lated the to in, 23/7/2008. 23/7/2008. in, burg, 4/12/ legate. 1/2008. 1/2008. CEU eTD Collection ACV-SCC ABVV/ FGTB ABVV/ FGTB IG BAU IG BAU Solidarność 2/12/ for bargaining. union-government FGTB Brussels, officer union responsible relationsDGB office international district’s Nordrhein-Westfallen interview, 20/11/2008. Chair T ofat Warsaw/Żerań the Unionof and Engineers car plant. Technicians 1/10/2008. ManagerHR at Niepołomice, MAN Niepołomice. Solidarność Polkowice. Polkowice, 29/9/2008. Logistics manager at VW manager Polkowice.HR at VW Polkowice, 29/9/2008. committee for the automotive industry. Brussels, 5/12/2008. 5/12/2008. industry.committee for Brussels, the automotive committee for the automotive industry. Brussels, 5/12/2008. 5/12/2008. industry.committee for Brussels, the automotive international relations officer. Frankfurt/ Main, 1/12/2008. Main, officer. 1/12/2008. Frankfurt/ relations international officer and former EVW chair. Frankfurt am Main, 1/12/2008. am Main, 1/12/2008. Frankfurtand chair. former EVW officer union officer union and sector the for EMF’s member responsible the car of sector chair Tychy. in at Fiat 20/8/2009. Telephone interview, chair at MAN Niepołomice. Niepołomice, 1/10/2008. chair 1/10/2008. Niepołomice. at Niepołomice, MAN chair at Opel Antwerp and EEF deputy chair. Antwerp, 3/12/2008. chair Antwerp 3/12/2008. Antwerp, chair. EEF at Opel and deputy union officer responsible for the car sectorfor officer EMF’sunion responsible the and car of sectora the member 202 r. Düsseldorf, 25/11/2008. r. 25/11/2008. Düsseldorf, elephone 2008. al l l CEU eTD Collection Age ____ (2010) ‘GM confirms Opel Antwerp’, factory (2010)____ closure ‘GM in confirms BBC Automotive News Bengtsson, E. 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