"Globalisation is going white-collar"
BY ANNE-MARIE MUREAU
A major change in the occupational profile of employment over the past years has been the shift from blue-collar to white-collar jobs. Technological innovation has transformed the nature of the workplace and the nature of the work and skills expected from people. As manufacturing becomes more and more technology-intensive and the demand for new high value-added products increases, one can expect this trend to accelerate.
Later in this report, we will come back to the challenges this development poses for metalworking trade unions. But first, a few examples to illustrate the trend.
In the USA, the share of non-production workers is registering a slow but steady increase in relation to total employment (see graph on next page). In the sectors “aircrafts & parts” and “computers & electronic products”, this share now amounts to 53% and 45%, respectively.
In Germany, as the graph shows, over half of employment is now to be found in non-manual grades. For the metal industry in particular, the figure is reaching 40%, compared to 34% at the beginning of the ’90s. In France, the share of engineers and professionals in the metal industry doubled in the last 15 years, whereas that of production workers dropped by 5%. Japan is experiencing a similar development, with non-manual workers accounting for around 45% of overall employment in the metal industry. In two sectors (see graph), non-manual employment is well above 50%.
The general trend for non-manual occupations is upward. The changes noted earlier in skill requirements resulting from the introduction of new technology, modifications in trade patterns (including growing competition from low-wage countries and increased market pressures) and in work organisation will become more pronounced.
An issue for all IMF affiliates
The issue of non-manual workers is not just an issue for unions in developed countries alone. “Globalisation is going white-collar,” as the magazine Business Week recently put it. All kinds of knowledge and skilled work can now be done almost anywhere. After the outsourcing of assembly work, corporations are shifting upscale jobs — for example basic research, chip design, engineering — to lower wage countries, in particular to those with a large pool of well-educated and skilled people.
For example:
In the same vein, South Korea and Taiwan are positioning themselves as important R&D and services hubs.
A low unionisation rate
While the proportion of non-manual workers in employment is rising, union representation among this category remains weak. In most countries they are usually less well unionised. In the IT sector in particular, union membership is very low. Their share in the total membership of many industrial unions affiliated to the IMF hovers at about 10%-15%.
This is partly due to different attitudes on the part of non-manual workers, who generally tend to be more individualist and, quite often, see little value in organising and collective support. It is also due to the fact that, traditionally, most unions have emphasized organising and furthering the interests of production workers, who account for the bulk of their membership, and not given proper attention to workers outside their traditional stronghold. Moreover, employers often turn out to be more hostile to the unionisation of non-manual workers than of manual workers. They prefer the former to be non-unionised and/or on individual rather than collective agreements. There are also legal restrictions to organising these workers in certain countries.
Nevertheless, non-manual workers, even those in the higher positions, are increasingly aware that they are now no less vulnerable to management decisions than production workers. Just like them, they are drawn into the race to the bottom and downsizing, and see their jobs being shifted abroad. They are starting to learn and experience that the logic of cost-cutting no longer distinguishes between blue-collar and white-collar. Not only is production work outsourced but also highly skilled occupations, and even when blue-collar work is outsourced many non-manual jobs in activities related to production are lost as well.
Attitudes are changing
With mergers and takeovers constantly reshaping the industrial landscape and globalisation hitting people at the high end of the skills scale, attitudes are changing as well. White-collar workers start to think differently and distance themselves from their company; they look for help and the defence of their rights in the face of neo-liberal market radicalism. In a way, the recent debacle in the IT sector did some good, as it got people who had been employed in this branch to wake up and join the union, as in Sweden for example.
Organising the unorganised remains a fundamental task of all IMF affiliates and the majority have adopted policies which establish recruitment as a priority in their activities. It is how trade unions came into existence and it is what they still exist for. Thus, trying to organise non-manual workers is increasingly important for IMF affiliates.
Examples of critical issues for non-manual workers are:
In many ways, the basic concerns are the same as those confronting other workers, but there are differences in terms of approach and emphasis. This requires getting a grip on increasingly differentiated working conditions, attitudes, and patterns of perception and employment profiles. The issue for trade unions is also how to respond to the increasing demand for a more tailored approach and more individualization in providing services.
A policy paper on "Non-manual workers in the IMF" was adopted at the recent IMF Executive Committee meeting in Geneva, May 12-13. Regarding the development outlined above, the paper poses a number of questions, which are closely linked to the future of trade unionism:
The policy paper says that unions should demonstrate that they are relevant to meeting the needs and expectations of non-manual workers. Because they feel more vulnerable and insecure at work than in the past, non-manual workers are more interested in getting involved in the search for alternatives. In this connection, sustainable development and corporate social responsibility linked to the promotion of core labour standards are issues that can help engage these workers and mobilise them for union work.
Objectives of trade union response should be twofold:
In line with its Action Programme, the IMF has carried out activities for non-manual workers, including workshops and seminars. The IMF policy paper sets out common goals and recommendations for future work, including:
The IMF mission will continue to be managing the balancing act of organising the traditional core occupations and the new target groups, and representing the interests of both.
A major change in the occupational profile of employment over the past years has been the shift from blue-collar to white-collar jobs. Technological innovation has transformed the nature of the workplace and the nature of the work and skills expected from people. As manufacturing becomes more and more technology-intensive and the demand for new high value-added products increases, one can expect this trend to accelerate.
Later in this report, we will come back to the challenges this development poses for metalworking trade unions. But first, a few examples to illustrate the trend.
In the USA, the share of non-production workers is registering a slow but steady increase in relation to total employment (see graph on next page). In the sectors “aircrafts & parts” and “computers & electronic products”, this share now amounts to 53% and 45%, respectively.
In Germany, as the graph shows, over half of employment is now to be found in non-manual grades. For the metal industry in particular, the figure is reaching 40%, compared to 34% at the beginning of the ’90s. In France, the share of engineers and professionals in the metal industry doubled in the last 15 years, whereas that of production workers dropped by 5%. Japan is experiencing a similar development, with non-manual workers accounting for around 45% of overall employment in the metal industry. In two sectors (see graph), non-manual employment is well above 50%.
The general trend for non-manual occupations is upward. The changes noted earlier in skill requirements resulting from the introduction of new technology, modifications in trade patterns (including growing competition from low-wage countries and increased market pressures) and in work organisation will become more pronounced.
An issue for all IMF affiliates
The issue of non-manual workers is not just an issue for unions in developed countries alone. “Globalisation is going white-collar,” as the magazine Business Week recently put it. All kinds of knowledge and skilled work can now be done almost anywhere. After the outsourcing of assembly work, corporations are shifting upscale jobs — for example basic research, chip design, engineering — to lower wage countries, in particular to those with a large pool of well-educated and skilled people.
For example:
- IBM and Motorola are moving software design jobs to India;
- Boeing has transferred qualified jobs to Russia and recruited aerospace engineers there;
- GM is outsourcing white-collar work to India;
- Alcatel is moving R&D work to Tunisia;
- Philips has shifted R&D on most TV, cell phones and audio products to China.
In the same vein, South Korea and Taiwan are positioning themselves as important R&D and services hubs.
A low unionisation rate
While the proportion of non-manual workers in employment is rising, union representation among this category remains weak. In most countries they are usually less well unionised. In the IT sector in particular, union membership is very low. Their share in the total membership of many industrial unions affiliated to the IMF hovers at about 10%-15%.
This is partly due to different attitudes on the part of non-manual workers, who generally tend to be more individualist and, quite often, see little value in organising and collective support. It is also due to the fact that, traditionally, most unions have emphasized organising and furthering the interests of production workers, who account for the bulk of their membership, and not given proper attention to workers outside their traditional stronghold. Moreover, employers often turn out to be more hostile to the unionisation of non-manual workers than of manual workers. They prefer the former to be non-unionised and/or on individual rather than collective agreements. There are also legal restrictions to organising these workers in certain countries.
Nevertheless, non-manual workers, even those in the higher positions, are increasingly aware that they are now no less vulnerable to management decisions than production workers. Just like them, they are drawn into the race to the bottom and downsizing, and see their jobs being shifted abroad. They are starting to learn and experience that the logic of cost-cutting no longer distinguishes between blue-collar and white-collar. Not only is production work outsourced but also highly skilled occupations, and even when blue-collar work is outsourced many non-manual jobs in activities related to production are lost as well.
Attitudes are changing
With mergers and takeovers constantly reshaping the industrial landscape and globalisation hitting people at the high end of the skills scale, attitudes are changing as well. White-collar workers start to think differently and distance themselves from their company; they look for help and the defence of their rights in the face of neo-liberal market radicalism. In a way, the recent debacle in the IT sector did some good, as it got people who had been employed in this branch to wake up and join the union, as in Sweden for example.
Organising the unorganised remains a fundamental task of all IMF affiliates and the majority have adopted policies which establish recruitment as a priority in their activities. It is how trade unions came into existence and it is what they still exist for. Thus, trying to organise non-manual workers is increasingly important for IMF affiliates.
Examples of critical issues for non-manual workers are:
- working time, work/life balance,
- career development and lifelong learning,
- work intensification, stress and burnout,
- mechanisms for solving problems resulting from increased responsibility,
- remuneration systems (including the performance bonus),
- outsourcing,
- mobility,
- pensions,
- equality issues.
In many ways, the basic concerns are the same as those confronting other workers, but there are differences in terms of approach and emphasis. This requires getting a grip on increasingly differentiated working conditions, attitudes, and patterns of perception and employment profiles. The issue for trade unions is also how to respond to the increasing demand for a more tailored approach and more individualization in providing services.
A policy paper on "Non-manual workers in the IMF" was adopted at the recent IMF Executive Committee meeting in Geneva, May 12-13. Regarding the development outlined above, the paper poses a number of questions, which are closely linked to the future of trade unionism:
- How do unions position themselves faced with these developments?
- What are the strategies for reaching out to non-manual workers?
- How do unions integrate them in their organising and bargaining policy, and in their structure? Are these structures relevant and appropriate?
- Are these workers involved in union policymaking and activities?
- How can the IMF support the organising, collective bargaining and servicing objectives of its affiliates?
The policy paper says that unions should demonstrate that they are relevant to meeting the needs and expectations of non-manual workers. Because they feel more vulnerable and insecure at work than in the past, non-manual workers are more interested in getting involved in the search for alternatives. In this connection, sustainable development and corporate social responsibility linked to the promotion of core labour standards are issues that can help engage these workers and mobilise them for union work.
Objectives of trade union response should be twofold:
- to strengthen the presence of the IMF and its affiliates in non-manual occupations. As in other sectors/branches, we are faced with the challenge of organising and union-building.
- to improve IMF services to existing members and better respond to their needs and expectations.
In line with its Action Programme, the IMF has carried out activities for non-manual workers, including workshops and seminars. The IMF policy paper sets out common goals and recommendations for future work, including:
- Increase awareness about the non-manual workers’ issue in all countries and regions.
- Promote the exchange of information and experience on organising tools and strategies.
- Seek to develop new solidarity concepts, allowing the negotiation of collective representation of interests with more individual autonomy and self-determination.
- Use international framework agreements (IFAs) as leverage for organising non-manual workers. These workers are often faced with management resistance to organising and/or restrictive contract language on this point. IFAs open a space for organising and should be utilized to that end.
- Raise the issue of legal restrictions to organising non-manual workers, which may be in violation of ILO conventions.
- Improve communication and networking between affiliates within the IMF.
The IMF mission will continue to be managing the balancing act of organising the traditional core occupations and the new target groups, and representing the interests of both.
