Hybridisation of employment relations in the era of globalisation? A comparative case study of the automotive and banking industries in South Korea

Abstract

Employment relations in the Korean auto and banking industries have undergone significant transformation since the 1997 economic crisis. Both sectors experienced massive downsizing and intense labour–management confrontations during the crisis, as well as the major expansion of non-regular labour and the adoption of technology-driven workplace innovations. Both industries also experienced the organisational transformation from enterprise-based unions into industrial unionism in an effort to build a centralised bargaining structure. However, there are some important differences between the two sectors with respect to changing employment relations, including the reorganisation of work, the extent of changes in compensation and skills development and inter-firm variations in industrial relations. This comparative industry-level case study addresses some implications for the globalisation literature and the Varieties of Capitalism debate. Globalisation is not only a mega-trend which fosters market integration and the mobility of both capital and labour, it also involves an intense contest between management and labour unions. Within the context of globalisation, employment relations have become hierarchically segmented, both at the industry and firm levels. Employment relations in Korea appear to have been reshaped into a hybrid pattern. This paper argues that the dual typology of liberal and coordinated market economies is too simplistic and suggests that a ‘variegated’ form of capitalism more accurately describes the situation in Korea.