Lean Production and Changing Employment Relations in the International Auto Industry

Abstract

The auto industry provides a useful focus for examining the changing nature of employment relations around the world as new production systems are introduced. This article summarizes the results of an international project which analyzed the diffusion of lean production and associated employment patterns in different national contexts. It was found that despite the widespread application of lean production principles, significant variation existed in the way that management and unions adapted to change. There is a need to comprehend both the role of national institutions and local practices in the choices which parties make at the workplace level. These factors are significant in shaping employment relations in the auto industry despite the pervasive influence of new production systems.