Multinationals in the New EU Member States and the Revitalisation of Trade Unions

Abstract

Fears of social dumping in the enlarged EU have raised the question of who can defend employees in the new member states. This article addresses the issue through case study research on US and German-based multinationals operating in the automotive sector in Poland, Hungary and Slovenia. The evidence shows how trade unions and industrial relations institutions affect investors in different ways country-by-country, with some unexpected effects on the implementation of flexible employment practices by the investors. Foreign-owned enterprises witness cases of union revitalisation, breaking the “path-dependency” of post-communist unions, in spite of frequent employer hostility. Bottom-up factors such as production changes and local labour market trends are frequently found behind revitalisation, although foreign factors such as home-country models or international union solidarity occasionally also play a role. Such revitalisation, however, being company-based, raises issues on the capacity of trade unions to combine core worker representation with the defence of workers in the society as a whole.