Exploring a sustainable model of workplace partnership

Drawing on two in-depth case studies, a new book examines whether practices relating to workplace partnership between employers, employees and trade unions can generate mutual gains for the various workplace stakeholders. It concludes that mutual gains partnerships at workplaces are possible, but they are only found where special circumstances exist. The book argues that such coalitions are vital if Ireland is to develop its productivity potential.

A book published in Ireland in December 2008, which draws on two in-depth case studies at the alumina refinery Aughinish Alumina and the glass manufacturer Waterford Crystal, examines whether practices relating to workplace partnership between employers, employees and trade union representatives can generate mutual gains for the various workplace stakeholders. Such practices include representative forums, information and consultation rights, new forms of work organisation and training. Written by Tony Dobbins, a research fellow at the Centre for Innovation and Structural Change (CISC) at the National University of Ireland Galway (NUI Galway), the book – Workplace partnership in practice – concludes that mutual gains partnerships are possible, but they are only found where special circumstances exist.

Industrial democracy and corporate governance

More generally, under the prevailing permissive voluntarist institutional context, Dobbins argues that few workplace partnerships will take root and even fewer endure. He believes that more ‘checks and balances’ are required at the workplace in terms of new forms of industrial democracy and corporate governance if workplace pacts between employers, employees and employee representatives are to be adopted and sustained in greater quantities in Ireland than at present.

The book examines which parties gain out of organisational change initiatives associated with workplace partnership between employers, employees and trade unions. It looks at the contextual conditions that produce mutual gains cooperation and how it is developed in practice. The study explores whether and why mutual gains partnership is ‘institutionalised’, and is then sustained or breaks down.

These are important issues for policymakers, employers, trade unions and employees, as well as students and academics, at a time when Irish industrial relations and employee relations are in a state of flux after over 20 years of national social partnership. The once dominant model of voluntarist workplace collective bargaining is being re-cast in a period of major economic turbulence.

Beneficiaries of workplace pacts

In terms of who gained from partnership initiatives in his two case studies, Dobbins believes that partnership delivered mutual gains for all stakeholders at Aughinish Alumina. While partnership delivered most gains for management at Waterford Crystal, and some benefits for the trade union, worker gains were less – largely due to the intensity of market pressures facing the company.

The Waterford partnership broke down after 10 years, and the company went on to experience serious competitive difficulties and substantial job losses, culminating in its going into receivership in January 2009. In contrast, the Aughinish partnership continues, although the company has also experienced competitive pressures as the recession took hold. Crucially, Aughinish Alumina enjoys relative insulation from market pressures, which has enabled it to sustain workplace cooperation.

Limitations of voluntarism

The book shows that voluntarist mutual gains partnership is feasible, but success and durability in a voluntarist institutional setting depend on specific clusters of contextual conditions, notably: management support, a quality-focused competitive strategy, some insulation from market pressures, progressive trade union positions, vertically aligned bundles of mutual gains practices, institutional supports, an emphasis on fairness, all party commitment to performance enhancement and capital intensive technology. Conditions supporting workplace partnership were stronger at Aughinish Alumina than Waterford Crystal.

Dobbins maintains that building workplace coalitions is not just a matter of employees having a ‘democratic right’ to a workplace ‘voice’ and information and consultation; it is also vital if Ireland is to develop its productivity potential.

National collaborative effort

The author points to the Nordic countries, which have ‘the most competitive and participative economies in the world’. They engage in what Dobbins describes as nothing less than a ‘national collaborative effort’. He believes that the task of creating high performance workplaces is too big for employers alone: the paradox may be that management can best ‘regain control by sharing it’.

Dobbins explains that the rationale behind the book was the continued polarisation between competing perspectives about the dynamics and nature of workplace partnership, the balance of mutual gains and costs accruing to employers, workers and trade unions, and the conditions sustaining or inhibiting partnership.

Looking at future research issues, Dobbins warns that there is a tendency to use large-scale quantitative surveys, which can result in the loss of some of the complex nuances of workplace relations. His case studies involved a considerable amount of direct fieldwork, talking to, interviewing and observing those directly involved at management, trade union and employee levels.

Brian Sheehan, IRN Publishing