Public Sector Employment Relations Research Articles

Public sector employment relations: Germany in comparative perspective

The paper asks for the contribution of growth models for the explanation of public sector employment relations in Germany. The paper is subdivided into three parts. The first elaborates on long-term developments as well as forms of employment. The second part analyzes wage setting systems, that is, bilateral collective bargaining for employees and unilateral decision-making for civil servants. The third part compares the empirical outcomes of both sub-systems with the assumptions of growth models and distinguished explicitly various concepts of the state as corporate actor.

Introduction to the Themed collection: Public sector employment relations in turbulent times

AbstractWe introduce a themed collection of articles examining how the public sector has responded to, and been impacted by, the COVID-19 crisis. Although the pandemic has affected the roles, functions, economies, governance and structures of public sectors, this themed collection focuses on public sector employment relations. Authors examine significant areas which have been subject to accelerated change stemming from the pandemic. Building on decades of public sector reform, these changes impact public sector enterprise bargaining, terms and conditions of employment, working arrangements and practices, and the relationship between public servants and their employer. The articles in this collection provide important insights into the longer-term influences of the COVID-19 pandemic for public sector workforces. The collection also raises questions around whether the positive lessons from this crisis can be sustained to help manage serious crises in the future, or whether the public sector will slip back into a state of unpreparedness.

Pandemic effects on public service employment in Australia

AbstractThe COVID-19 pandemic is sending shockwaves through communities and economies, and public servants have risen to the novel policy challenges in uncharted waters. This crisis comes on top of considerable turmoil for public services in recent decades, with public management reforms followed by the global financial crisis (GFC) leading to considerable change to public sector employment relations and a deprivileging of public servants. The research adopts the lens of the ‘public service bargain’ to examine the effects of the pandemic across Australian public services. How did Australian public service jurisdictions approach public employment in 2020, across senior and other cohorts of employees? How did this pandemic response compare to each jurisdictions’ response to the GFC a decade earlier? The research also reflects more broadly of the impact on public sector employment relations and to what extent pandemic responses have altered concepts of the diminished public service bargain or the notion of governments as model employers?

Understanding wage restraint in the German public sector: does the pattern bargaining hypothesis really hold water?

AbstractGerman public sector wage restraint has been explained through the presence of a specific type of inter‐sectoral wage coordination in the industrial relations system—that is, export sector‐led pattern bargaining. First, as a literature‐assessing exercise, this paper reviews the literature in industrial relations and comparative political economy (CPE) and finds that (i) the origins and mechanics of inter‐sectoral wage coordination through pattern bargaining have never been laid out clearly; (ii) that the mechanisms of the pattern bargaining thesis have never been tested empirically; and (iii) that the CPE literature reveals an export‐sector bias. Second, as a theory‐testing exercise, hoop tests are performed to verify the pattern bargaining hypothesis. The key finding is that Germany cannot be considered a case of export sector‐driven pattern bargaining, opening a new research agenda for the study of public sector wage setting centred on public sector employment relations, public finance, public administrations and the politics of fiscal policy.

Public sector employment relations after the crisis: A comparative case study analysis of UK local authorities

Through a comparative case study analysis of the restructuring practices of six large UK local authorities, this article finds that although macro-level fiscal pressures are a trigger for cutbacks clear differences can be found between local level restructuring ‘bundles’. These differences are explained by the local power dynamics between politicians, trade unions and management. A radical marketisation approach of outsourcing and hostility towards the trade unions at one Conservative-controlled council is contrasted to a political partnership approach at two Labour councils which delivered a living wage and minimised job losses and outsourcing. Two ‘hybrid’ models of incremental marketisation and pragmatic partnership saw the remaining councils trying to balance cost minimisation and stable employment relations by making more incremental changes. However, the cumulative effect of repeated cutbacks could yet prove to be transformative for the public sector.

Deprivileging the public sector workforce: Austerity, fragmentation and service withdrawal in Britain

AbstractThe impact of the financial crisis has reignited debate about the scope and scale of public sector restructuring and its consequences for the workforce in Britain. The economic crisis precipitated austerity measures concentrated on expenditure reductions with the intention of reducing the public deficit. Because the public sector pay bill comprises over half of current public spending, achieving deficit reduction has major consequences for the total pay bill and the workforce. This article assesses the restructuring of the public sector and public sector employment relations in Britain and identifies underlying continuities in public sector restructuring over recent decades. Drawing on and repositioning New Labour’s legacy, the Coalition government used the economic crisis to establish a pro-austerity frame that has legitimated deep cuts in public sector employment and involved measures to refashion public sector employment relations. The article considers the consequences of this agenda and responses by trade unions and indicates some of the limits and uncertain prospects for public sector restructuring under conditions of austerity.

Reshaping the public service bargain in Queensland 2009–2014: Responding to austerity?

AbstractThis is a study of the renegotiation of pay, employment security, and of the relationship between government and public sector unions, in an Australian state public service during and after the global financial crisis. It examines the extent to which this renegotiation of the ‘public service bargain’ was necessitated by austerity requirements, and the extent to which the crisis provided an opportunity for the deprivileging of public employment that has been an enduring feature of the neoliberal state. A case study of the different approaches of two Queensland governments to their relationships with public sector workers between 2009 and 2014, it tracks two key measures of wages and staff numbers, as well as the consequences of breaches of the trust relationships of the traditional public sector bargain. Given the moderate nature of Australia’s economic downturn, the implementation of public service austerity measures was less an economic necessity than an opportunity for a conservative government to alter employment policies and sever union relationships. This continuation of public sector employment relations favoured by previous conservative governments had electoral consequences.

Reframing public service employment relations: The impact of economic crisis and the new EU economic governance

This article introduces six national studies covering 11 countries of the EU-15, analysing the impact of government austerity measures on the working conditions of public employees and on public sector employment relations. It stresses how international financial markets and supranational actors have altered the dynamics of employment relations in a sector traditionally considered sheltered from external forces. Nevertheless, public sector employment relations remain distinctive compared to the private sector. There has been increased government unilateralism in the determination of pay and conditions, and public sector trade unions face obvious difficulties.

Germany: The public sector in the financial and debt crisis

In this article I analyse the changing contours of public sector employment relations in Germany during and after the financial and debt crisis. In order to understand what is distinctive in German experience and what is similar with that elsewhere, I provide a comparative perspective of selected EU member states, especially Austria. First, I describe in some detail the impact of various austerity measures on public sector employees. Second, I analyse collective consequences and challenges for corporate actors and labour market institutions, especially unions and collective bargaining. Third, I offer a brief prognosis for future developments.

Greek public service employment relations: A Gordian knot in the era of sovereign default

Public sector employment relations are at the centre of the Troika’s programmes for Greece. These require a reduction of primary public expenditure by 10 percent of GDP, a total redesign of public services and massive privatizations. Public wages have been subject to incremental cuts, together with moves towards weakening the special status of public sector employment. It remains an open question whether the urgent pressure to reduce public expenditure through successive quantitative adjustments may result in successful structural reforms towards a leaner and more efficient public sector.

Economic crisis and the politics of public service employment relations in Italy and France

This article analyses the impact of government austerity measures on the working conditions of public employees and public sector employment relations in Italy and France. The timing and severity of these measures have differed, given the different conditions of public finances in the two countries. The impact on employment levels, wages, working conditions and pensions has generally been more pronounced in Italy than in France. The reform of public sector employment relations institutions predated the economic crisis; in Italy the aim was to limit union prerogatives and the scope of collective bargaining, in France to strengthen social dialogue institutions. But in both cases the ultimate government power to determine terms and conditions of employment unilaterally has been clearly reaffirmed.

Public service restructuring in the UK: the case of the English National Health Service

AbstractThis article overviews welfare state retrenchment in the UK under the Conservative‐led coalition government that formed in May 2010 and has centred its response to economic crisis on rapid public deficit reduction through public expenditure austerity targeted increasingly on the welfare benefits budget. It locates the coalition's reforms of public services and public sector employment relations in the long trajectory of public sector restructuring in the UK: the policies of New Right governments in the 1980s and New Labour from 1997 to 2010 that installed marketisation and privatisation in a permutation of forms, intensifying challenges for trade union organising. Focusing on the English NHS, the article identifies the respects in which the coalition's reforms continue and depart from New Labour's.

Applying labour process concepts to public sector executive reforms

PurposeThis paper aims to extend the literature by applying labour process concepts to public service executive employment.Design/methodology/approachThe article draws on the secondary literature to link labour process theory to public administration reform. First, it draws on the labour process literature to provide a summary of some key labour process concepts that will be used throughout the article. This includes Littler's framework for analysing work organisation, being structure of control, employment relationship and job design. Second, it draws on the public administration literature to outline the traditional mode of public sector employment relations, using labour process concepts to illustrate the traditional organisation of work. Third, it draws on the public management reform literature, to outline the key reforms that affected work organisation. In the final section, the article draws these literatures together and uses labour process concepts to analyse the positional power of department heads in the reformed environment. For simplicity and consistency, the examples focus largely on the Australian public sector – each Westminster system has adopted slightly different reforms at slightly different times, but there are enough similarities to allow generaliseability across systems.FindingsThe article argues that executives had a strategic position in the public service labour process, and public sector reforms were designed to reduce their positional power and knowledge. Politicians wrested control away from chief executives through strategies such as the division of labour, separation of conception and execution, deskilling, and changes to employment relations that destabilised traditional career paths and tenure. This is in contrast to the new public management rhetoric that the reforms would let managers manage – in reality they were provided more control over operational aspects of work, but lesser control over the intellectual and conceptual aspects of work which were now done elsewhere.Originality/valueThis paper is original in its extension of labour process concepts to a different and elite work group, being public sector chief executives.

After the end of stability: recent trends in the public sector of Germany

This article examines changes in public sector employment relations in Germany, traditionally regarded as a very stable case and a country that has not been conducive to the new public management (NPM) agenda. In recent years, very significant changes in pay determination and interest representation have occurred. Public employers have changed their practice without, however, explicit reference to any NPM agenda. They have transformed civil servants' employment conditions by making use of their legally guaranteed, unilateral regulatory power of decision making, setting in train a process of fundamental transformation.

Moral Hazard, Transaction Costs and the Reform of Public Service Employment Relations

This article analyses the reform of public service employment relations inspired by the New Public Management (NPM) approach, which has challenged both the traditional `sovereign employer' and `model employer' approaches to public service employment regulation. It envisages a double process of convergence: between public and private sector employment relations within each country, and in public service employment relations between different countries. However, the outcomes are mixed, and unexpected or perverse effects have often followed the reform attempts. These stem from a neglect of the distinctiveness of the public sector employer as a political institution and an excessive attention to moral hazard and agency costs. What is needed is a richer variety of mechanisms, more sophisticated and less unilateral than those borrowed from agency theory

The New Benchmarking and Advisory State: The Role of the British Advisory, Conciliation and Arbitration Service in Facilitating Labour—Management Consultation in Public Sector Transformation

The aim of this article is to examine the changing role of the state in a more market-driven system of industrial relations, specifically in terms of the new roles that are being developed with regard to mediation, advisory and arbitration services. It focuses empirically on the role played by the British Advisory, Conciliation and Arbitration Service in facilitating the modernization of public sector employment relations. We show how the Advisory, Conciliation and Arbitration Service has played a `benchmarking' role that assists the development of more strategic forms of decision-making and cooperation in employment relations change, and identify the challenges of developing such an approach in the context of the shift towards a more decentralized and market-oriented system of public service delivery. In conclusion we assert that there is a new `advisory and benchmarking' state evolving based on a soft-market view of industrial relations, and that this mitigates (but is also in tension with) the harder market view within the state concerned with transforming the public sector.

The revolution in the public services sector in Portugal: with or without the unions

Since the onset of the public deficit crisis in 2001–2002, three successive Portuguese governments have promoted a transformation of public sector employment relations with the aim of bringing them into line with the private sector. Given the importance both of employment in the public sector and of public sector unions to the overall labour movement, the outcome of these reforms will have a decisive impact upon industrial relations in Portugal. The Portuguese public sector unions have consistently claimed that the government has presented them with preconceived reform packages, has not bargained and has in fact imposed its concept of the reforms. This article analyses the relationship between the government and the unions in negotiating the reforms, focusing on the degree of conflict involved and the extent to which the reforms have proceeded within the framework of social dialogue.

Public management reforms and public sector employment relations in The Netherlands

Purpose – The purpose of this article is to study the overall development of public sector industrial relations in The Netherlands.Design/methodology/approach – The paper reviews the main literature on the topic and relevant policy texts. There are interviews with key individuals referenced and utilised.Findings – Although the direction of change in Dutch public sector employment relations is towards private sector norms, it is unclear whether this will lead to a complete withering away of the traditional characteristics of public sector employment relations.Research limitations/implications – It is a general overview of key developments.Practical implications – It is relevant for a discussion of the general trends and dynamic of public sector industrial relations in The Netherlands.Originality/value – This article manages to take an overview of developments and point to the uncertain nature of a new market approach.

Bringing the community in: possibilities for public sector union success through community unionism

Public sector employment relations are increasingly difficult for public sector unions. This paper uses the concept of community unionism to explore how and when relationships between unions and community organisations may enhance union power and success in bargaining and policy reform. The paper uses a case study of the NSW Teachers Federation (NSWTF) and their four-year campaign for public education between 2001 and 2004. This case study shows the success of long term deep alliances between parents and teachers in achieving policy reform, while highlighting some limitations for community unionism strategy in salary negotiations. The paper concludes that community unionism is a viable strategy for public sector unions, and suggests that organisational relationships, common interest and multi-scalar forms of activity are important elements of coalitions.

Future directions in public sector labor relations: A 2020 Perspective

Any exercise in predicting the future of social and economic phenomena seems rather presumptuous at best. Understandably, we tend to draw upon the certainty of past experience and our current understanding of the world when attempting to project the unknown future. Yet, in any dynamic social and economic context, there is an infinite number of extant variables that currently lie dormant and unrecognized. The unexpected activation of any one or a combination of these hidden and unforeseen factors has the potential to vastly distort our generally linear projections of what will be (e.g., consider the projections about all aspects of American life before and after the September 11 terrorist attacks). Predicting the reality of next year is at best a risky and difficult task, but to forecast the future as it will be fifteen to twenty years hence requires humility, a keen understanding of the subject at hand and, most importantly, good luck. Readily assuming the mantle of humility, presumably having a basic understanding of the topic, and energetically hoping for blind luck, I am pleased to offer some thoughts on aspects of public sector labor and employment relations as they will evolve over the next couple of decades. Such projections, obviously, are done as through a glass, darkly.