The Road to Functional Flexibility: White Collar Work and Employment Relations in a Privatised Public Utility

Abstract

This paper is concerned with the changing nature of office work in one region of a privatised public utility, which will be referred to as National Utility (NU). It describes how clerical work at NU, traditionally characterised by a detailed division of labour and functional specialism, is being transformed by the introduction of on-line processing and multi-functional team-working. At the same time, NU management is seeking to change the nature and pattern of clerical employment. The intention is to increase the ratio of part time to full time staff, to increase the ‘personal accountability’ of staff, and to move towards a performance-based, rather than a seniority-based, pay and promotion structure. These changes are of some broader theoretical significance. As Batstone et al. (1987) note, much industrial sociology literature has focused on job content as the primary determinant of a number of features of work and employment, including worker autonomy, supervisory styles, and management control strategies. Indeed, much recent industrial sociology, management and institutional economics literature has tended to link employment patterns and conditions, as a whole, with job content, in a direct and unproblematic fashion. In particular, it is often assumed that in order to secure multiple skills, high quality work and the innovative capacities of labour, employers will have to offer not only better pay, but also a better package of conditions, job security, fringe benefits and training and promotion opportunities. Developments at National Utility suggest that the link between job content and employment relations may be weaker than has sometimes been implied, and cast doubt on the theoretical basis for ‘post-Fordist’ confidence in the emergence of a new deal for labour as a result of flexible methods of work organisation.