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mythification of the new concepts, such as the rhetoric associated with
flexibility, conceals strategies intent on intensifying work, weakening
terms and conditions of workers, introducing strategies to divide the
workforce or, purely and simply, anti-trade union policies.
However, despite the exclusive nature of the new forms of labour
management, perhaps the transformations occurring in the organisation
of work still provide an opportunity to humanise work and make it more
creative, discretional and autonomous. Perhaps homo faber may yet
triumph over homo economicus.
Translated from the Spanish
References
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Book Review: The Integration of European Labour Markets.
Antonio Martin Artiles
(Transfer: European Review of Labour and Research November 2010 16: 577-
581, doi:10.1177/10242589100160040705. The full version of this article can be found at:
http://trs.sagepub.com/content/16/4/577.citation)
Economic and social effects of immigration
Technology and economic integration initiatives have been the
driving factors facilitating workforce mobility and immigration between
EU Member States. The right of EU citizens to live and work in another
EU Member State without being subject to discrimination, together with
the elimination of barriers impeding the free movement of EU workers,
has been encouraging mobility and immigration from third countries
103
throughout the EU. In this regard the movement of workers from eastern
Europe has acquired special relevance, albeit with some analysts and
some politicians and policy-makers preferring to speak of 'mobility'
rather than 'immigration'.
With the accession of central and eastern European (CEE)
countries, EU enlargement has seen two different policies with regard to
mobility emerge. On the one hand, the United Kingdom and Sweden
have followed an open policy regarding the CEE countries. In contrast,
other countries introduced a temporary moratorium on the movement of
workers from CEE countries for the period 2004-2007. From 2010 there
is free movement of workers.
As says Herbert Brücker: 'The EU agreed transitional arrangements
governing the free movement of workers from the new Central and
Eastern European Member States in the accession negotiations. The socalled "2+3+2" formula allows EU Member States to postpone the free
movement of workers for up to seven years, although the prolongation
in the final two-year extension requires that severe disturbances in the
labour market exist or a threat of severe imbalances is expected in the
destination country'.
As noted by the last author in his chapter on 'Labour mobility in
the enlarged EU: causes, constraints and potential', the transition period
for the free movement of workers has served to regulate the flow of
migrants to certain EU countries. The flow has however been difficult to
control because immigration has flowed into the host countries through
atypical employment models such as self-employment. Indeed, the selfemployed have probably greatly contributed to segmenting labour
markets in the host countries.
According to Brücker, available data show that nearly a million
people moved from the so-called NMS-8 (New Member States from
central and eastern Europe) to the EU-15 between 2004 and 2007,
together with a further 900 000 from Romania and Bulgaria (NMS-2) in
the same period. This increase in numbers has been accompanied by a
change in migration patterns. Traditional destinations - neighbouring
countries such as Austria and Germany - have been replaced by such
host countries as Ireland, United Kingdom, Spain and Italy. But not all
countries having opened their borders have experienced higher
movement of workers. The Nordic countries for example have been only
104
slightly affected, with even a country like Sweden receiving very few
immigrants. The explanation is that the national language acts as a
barrier to geographic mobility. This issue is also explored by Radek
Maly and Christoph Maier in their chapter 'Emigration, labour shortages
and brain drain in the new EU member states: some descriptive
evidence' and by Vesselin Mintchev in his chapter 'International
Migration and Remittances in the Balkans: the case of Bulgaria’.
Brücker's hypothesis argues that immigration flows impact the
supply side of the labour market, leading to changes in employment and
wages. Immigration brings flexibility to labour markets, as well as
changing the composition of the professional qualifications of EU labour
markets. Even international trade has increased, together with the
outsourcing of businesses and economic activities within the EU. The
social effects of immigration and trade vary in the host countries. For
example, Romanian immigration to the United Kingdom is more
qualified than to Spain. This illustrates the fact that a country's economic
structure and the structure of its labour market are key determinants of
the type of immigration. High numbers of immigrants and the level of
qualification involved bring about changes in the structure of the labour
force, influencing wage structures and questioning labour regulation
mechanisms.
Workforce mobility
There are several chapters covering labour mobility, one of the
European Union's key policy objectives (as seen by the European
Commission declaring 2006 to be the European Year of Workers'
Mobility). However, empirical evidence points to the fact that domestic
workforces are unwilling to make use of their mobility rights. The issue
of occupational mobility is taken up in several chapters (e.g.
Zimmermann, Chapter 1; Brücker, Chapter 5; Budnik, Chapter 6).
Occupational mobility in Europe is generally low, with only 32% of
workers stating have moved within the same city, 24% within the same
region, 18% between regions and only 4% between EU Member States
(EU-25), according to the European Commission study Euro-barometer
105
survey on geographic and labour mobility. Europeans and mobility: first
results of an EU-wide survey (2005).27
The chapter by Klaus F Zimmermann on 'Labour mobility and the
integration of European labour markets' is very suggestive due to its
theoretical summarization of immigration mobility. The author
addresses the differences in mobility among European people and
immigrants. The reasons why the European population as a whole shows
a low interest in mobility involve, among others, the increase in home
ownership, the restricted transfer of social security rights between
national systems, the low recognition of qualifications, a lack of
transparency between employment systems in EU Member States, the
loss of family and social ties, cultural differences, ignorance of the
language and housing conditions. Many analysts have pointed out that
the inflexibility of European labour markets is due to the low mobility of
the population, which hinders the ability to move between economic
sectors and between local labour markets. The author concludes that
mobility is crucial: 'mobility contributes to an optimal allocation of
economic resources ... and ensures a quick adjustment of labour
markets, especially on the regional level. However, the rapid increase in
the demand for skilled labour cannot be satisfied by EU natives alone,
even if mobility barriers could be overcome'. To achieve future
economic growth, Europe needs to open up its labour markets.
Table 1.
EU-15 NMS-12 EU-27
Reason for past
move
Job-related 40.5 58.6 42.3
Education-related 14.7 12.2 14.5
Family-related 32.2 16.6 30.6
Others 12.6 12.6 12.6
Factors encouraging
future move
Work and income 47.9 84.7 58.7
Social network 52.8 37.3 48.3
27
Published also by European Foundation for Improvement of Living and Working Conditions.
Mobility in Europe. Analysis of the 2005 Eurobarometer survey on geographical and labour market
mobility. Luxemburg: Office for Official Publications of the European Communities (2006).
106
Housing and local
71.2 57.0 67.1
environment
Public facilities 17.2 18.2 17.5
Source: Bonin et al. (2008), cited in Zimmerman, p. 18.
The keys to achieving sustainable prosperity involve a selective
immigration policy facilitating the mobility of a qualified professional
workforce; a point system such as the 'blue card' scheme: the absence of
restrictions on mobility at a regional level, also for non-EU citizens; and
intensified cultural integration while at the same time safeguarding
immigrants' ethnic diversity and ethnic capital.
For those relying on the human capital theory, the factors behind a
decision to emigrate are primarily economic, as also noted by Katarzyna
B Budnik in the case of Poland ('Polish emigration to the UK after EU
Enlargement in 2004: a natural experiment for testing the rationality of
migration choice'). Zimmermann however goes further, adding other
factors such as the existence of social networks, public facilities,
housing and the local environment. The following indicators help
explain immigration mobility (Table ).
Mobility and the human capital theory
Most chapters use the human capital theory to explain the mobility
of the immigrant workforce. However, certain authors highlight the
empirical difficulties facing the search for evidence backing the human
capital theory. One of the main problems is that qualifications and
academic degrees are not easily transferable from one country to
another. One feature of the mobility of workers from the CEE countries
in the EU is the high level of professional and academic qualifications,
especially with regard to those from the NMS-8. Many analysts even
speak of a related 'brain drain' in the source countries and of 'brain
waste' in the destination countries. The latter term refers to the waste of
academic and professional skills, with many destination countries not
recognizing professional and/or educational qualifications of the source
countries. Skill levels of CEE workers are similar or even higher than
those of workers in destination countries. A major proportion of the
CEE workforce in western European labour markets is underemployed,
with employees working below their levels of qualification. However,
this underemployment problem may be mitigated due to the fact that
107
many domestic workers in CEE countries are also underemployed.
Underemployment is also a result of the destination country's economic
structure and its labour market, as is seen for example in Italy and Spain.
Immigrants are usually found in niche segments and low-wage
employment, temporary employment or under kinds of irregular work,
as seen in the figures for the self-employed (or the bogus self-employed)
in the United Kingdom, Italy and Spain.
The accession of the CEE countries was marked by major
differences in wage levels between source and destination countries.
This problem has been studied in the literature and is known in the
labour market as the hypothesis of 'occupational assimilation over time'
(see Stephen Nickell and Jumana Saleheen's chapter on 'Immigration,
occupation and wages'). From this analytical perspective linked to the
human capital theory, the use of wages as an indicator of 'convergence'
is favoured, with average domestic workforce wages being compared
with those of the immigrant workforce. But many analysts also use the
segmentation theory to explain the insertion of immigrants into specific
niches in the labour market, looking into the impact immigration has on
wages. The answer is that "occupations turn out to be a relatively
important dimension. Once the occupational breakdown is incorporated
into a regional analysis of immigration, the immigrant-native ratio has a
significant small impact on the average occupational wages of that
region'.
Book reviews. Social Pacts in Europe. New Dynamics.
Antonio Martín Artiles
(Transfer: European Review of Labour and Research 2001 7: 748, DOI:
10.1177/102425890100700418, The full version of this article can be found at:
http://trs.sagepub.com/content/7/4/748.citation)
Social pacts during the 1990s were a key factor in the convergence
and Europeanisation of labour relations. The European Trade Union
Institute has devoted two publications to this issue: in addition to the
reviewed book, an earlier volume entitled Social Pacts in Europe,
published in 1997.
This second book, which seeks to focus on the 'new dynamics' of
social pacts, is in three parts. The first contains, following an
108
introduction by the editors, a comparative chapter by Janine Goetschy
on employment and social security, and another by Anke Hassel and
Bernhand Ebbinghaus that seeks to explain the links between pay
restraint and social policy reform. The second part has 11 chapters that
deal with the diversity and variety of pacts at national level: Negrelli on
Italy, Arcq and Pochet on Belgium, Lind on Denmark. Kauppinen on
Finland. Bispinck and Schulten on Germany, Ioannou on Greece,
O'Donnell and O'Reardon on Ireland, Hemerijck. Van der Meer and
Visser on the Netherlands, Dolvik and Martin on Sweden and Norway,
Campos Lima and Naumann on Portugal, and Pérez on Spain. The third
part has two more comparative studies: one by Andrew Martin on
unemployment and economic policy subordinated to European
Monetary Union, and one by Franz Traxler on pay regulation over a
long period of analysis from 1970 to 1998. The book is therefore
interesting because of the amount of comparative analysis, and the fact
that the contributions are by prestigious experts associated with various
universities or study centres attached to European trade unions.
Notwithstanding the range of authors and of the national
experiences examined, we can posit the existence of a thesis running
through all of them. This is the idea of a new generation of social pacts
in the 1990s, and a new post-European Monetary Union scenario. This
new scenario suggests external restrictions limiting actors' room for
manoeuvre within systems of industrial relations. Another interesting
feature is the re-emergence of neo-corporatism, albeit with different
characteristics from its configuration in the 1960s and 1970s.
All the chapters of the book share a common element that enables
us to speak of the Europeanisation of labour relations. This common
element consists of the restrictions imposed by the Maastricht
convergence criteria, the process of monetary union, and above all the
system of monetary exchange. Convergence into a single market and the
monetary union referred to above acted as a catalyst that hastened the
conclusion of social pacts in various countries. That is why we are again
talking about the re-emergence of neo-corporatism, in the sense that the
pacts have played an important role in supporting the transition to the
new scenario, and in legitimating the process of European convergence.
From a theoretical point of view, it is important to stress the debate
109
between the re-emergence of neo-corporatism and the Americanisation
of labour relations.
In this respect, it is interesting to read Serafino Negrelli's analysis
on the experience and meaning of pacts in Italy, where their function is
not only economic, but also symbolic in legitimising political measures
aimed at achieving convergence. Negrelli also analyses the points of
interruption and continuity experienced by social concertation during the
1990s compared with previous decades.
It is also important to make clear that pacts have been linked to the
economic cycle so as to confront particular external imperatives such as
economic globalisation, increased international competition, and the
processes of liberalization of certain sectors. However, the self-evident
proliferation of social pacts and the functions of actors in neo-corporatist
political exchange contrasts with the idea of a trend towards the
Americanisation of labour relations: this is examined in other studies
focusing on the micro level.
The main thesis of this book emphasises that these pacts imply a
break with earlier social pacts to a certain extent, and that a new
generation of agreements incorporating profound changes and new
challenges has emerged. The changes to, and limitations of, the scope
for dealing with external shocks puts increased pressure on wage
bargaining institutions to act as shock absorbers and maintain
competitiveness.
This, in turn, exerts a disciplinary impact on labour relations. In
practice, the objectives of these pacts have been controlling inflation,
economic competition in conditions of stability, and a clear emphasis on
controlling the public debt. In this sense, we can talk of two different
scenarios: before European Monetary Union and afterwards (Table 1).
The new directions that social pacts now follow are taking them
down two avenues: a) recommending the decentralisation (including
regionalisation) of collective bargaining, and b) introducing social
security and labour market reforms. Social pacts these days operate in
very different scenarios from agreements reached in the 1960s and
1970s, the so-called golden years of advanced capitalism, the contextual
setting of the pacts having shifted from a framework of regulated
national economies to the globalised, unregulated economies of the
1990s. In the 1960s and 1970s, the monetary system enabled variations
110
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