Motor manufacturer calls for new organisation of working time

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In December 2001, VW Autoeuropa, a subsidiary of Volkswagen, argued that a reorganisation of working time has become essential for the development of the automobile industry in Portugal. The company's call for greater flexibility has been supported by other motor manufacturers and reflects a wider debate on working time organisation and on investment by foreign-based multinationals.

In December 2001, VW Autoeuropa, the Portuguese subsidiary of the German-based motor manufacturer, Volkswagen, published an appraisal of its 10 years of operations in Portugal, including information relating to its human resources management. According to the company, VW Autoeuropa has:

• low productivity, which is seen as representing a competitive disadvantage in relation to the other Volkswagen group companies, particularly those in Eastern European countries; and

• the lowest work attendance rate of all the VW group's European plants.

According to VW Autoeuropa human resources management, a number of measures will be introduced shortly with a view to addressing these problems:

• a worker motivation programme to deal with possible communication problems between workers and management, involving the human resources department;

• closer contact with employees' family doctors, visits to workers on sick leave and measures for the reintegration of workers on long-term sick leave; and

• improvements in working conditions and training in poorly adapted workplaces, with the aim of improving accident prevention.

More broadly, the company believes that other perceived improvements need to be introduced in the regulation of human resources issues, particularly relating to work organisation:

• greater flexibility in terms of employment contracts, because the automobile industry is very susceptible to market fluctuations; and

• greater flexibility in terms of working time organisation, allowing for adjustment to changes in production needs, given that the automobile industry is heavily dependent on the global economy.

In the opinion of Autoeuropa - backed up by other motor manufacturers - the 'rigidity' of the labour market in Portugal – and in particular the difficulty in replacing workers and organising working hours more efficiently by means of new work organisation structures – is a hindrance to the development of productivity and to the possibility of responding to production peaks. The fact that overtime hours cost more than in many other countries also pushes up the cost of producing in Portugal, meaning that Autoeuropa has production costs that are higher than those in other European countries.

Union response

One of the trade unions representing metalworking industry workers outlined what it sees as the reasons behind the current situation in Portuguese automobile industry, these being:

• that low wages and low productivity naturally go hand-in-hand with one another;

• the working time rhythms and schedules that the workers are subject to; and

• the fact that working time in Portugal is interpreted differently by trade unions and management. For the unions, the eight-hour working day should include a half-hour break, as otherwise the workers work eight hours 30 minutes.

Commentary

Having been discussed for some years now in Portugal, there are indications that working time organisation will be one of the next topics to be dealt with in detail in central social dialogue and concertation. During 2001, three national intersectoral agreements were signed - on employment and training (PT0102134F), health and safety (PT0102135F) and social security (PT0112112N) - which corresponded to three of the four working groups set up in 2000 as part of a new strategy for the social dialogue (PT0001179F). There thus remains the question of the adaptation of working time to the production cycle, and the accompanying measures for workers. According to the press, the Ministry of Labour and Solidarity considers that working time will be one of the themes that will have to be discussed in Portuguese society in the near future. However, this is not the case for the question of employment contracts (the other issue raised by the VW Autoeuropa case), as legislation in this area – notably on fixed-term contracts (PT0108160F) – has recently been passed.

In the specific case of VW Autoeuropa, management is concerned about the coming four years, the period during which the VW group will decide where to produce its new car model. In this selection process, Autoeuropa will be competing with the Eastern European countries. More widely, there is concern in several sectors over the future of foreign investment in Portugal, particularly in industrial sectors dominated by multinational companies, as is the case with the automobile industry (PT0104144F). (Maria Luisa Cristovam, UAL)