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Labour turnover and management retention strategies in new manufacturing plants.

Labour turnover and management retention strategies in new manufacturing plants.
Labour turnover and management retention strategies in new manufacturing plants.
This paper draws from on-going research on labour-management relations in transnational companies within a new town in the English Midlands, Telford (Elger and Smith, 1998a, 1998b; Smith and Elger, 1998). The paper examines the issue of labour turnover and the management of labour retention using two contrasting case examples from Japanese TNCs. The paper seeks to contextualize management decision-making with regard to labour turnover through a political economy and firm-level analysis. At the macro-level we highlight a shift from using wages (Fordism) and strong internal labour markets (bureaucracy) as labour retention mechanisms, towards an inter-firm collusion on wages, non-poaching and union-avoidance. At the micro-level these strategies are matched with firm-level HRM policies of careful labour selection, company paternalism, segmentation of the labour force into temporary and permanent group and accommodation to higher levels of labour turnover to balance product demand and labour supply. TNCs in our research site, Telford, dominate manufacturing employment, representing 60 per cent of all manufacturing jobs. This is similar to other sites of new jobs growth in the UK, for example Swindon where 66 per cent of manufacturing jobs are with TNCs and other new sites of TNC manufacturing investment. The findings are therefore applicable to other areas in which TNC employment has been dominant in manufacturing.
Turnover
0958-5192
371-399
Daskalaki, Maria
6c5ac39d-95f5-4dc1-98cc-ad2f80b3f0fa
Smith, Chris
23f497d7-3b7b-49f3-a964-664909a315db
Elger, Tony
7c4e21e9-2d85-4d58-8936-4abe77cf49e0
Brown, Donna
2290bd9d-56b6-4b72-82db-c12a97991eac
Daskalaki, Maria
6c5ac39d-95f5-4dc1-98cc-ad2f80b3f0fa
Smith, Chris
23f497d7-3b7b-49f3-a964-664909a315db
Elger, Tony
7c4e21e9-2d85-4d58-8936-4abe77cf49e0
Brown, Donna
2290bd9d-56b6-4b72-82db-c12a97991eac

Daskalaki, Maria, Smith, Chris, Elger, Tony and Brown, Donna (2004) Labour turnover and management retention strategies in new manufacturing plants. The International Journal of Human Resource Management, 15 (2), 371-399. (doi:10.1080/0958519032000158563).

Record type: Article

Abstract

This paper draws from on-going research on labour-management relations in transnational companies within a new town in the English Midlands, Telford (Elger and Smith, 1998a, 1998b; Smith and Elger, 1998). The paper examines the issue of labour turnover and the management of labour retention using two contrasting case examples from Japanese TNCs. The paper seeks to contextualize management decision-making with regard to labour turnover through a political economy and firm-level analysis. At the macro-level we highlight a shift from using wages (Fordism) and strong internal labour markets (bureaucracy) as labour retention mechanisms, towards an inter-firm collusion on wages, non-poaching and union-avoidance. At the micro-level these strategies are matched with firm-level HRM policies of careful labour selection, company paternalism, segmentation of the labour force into temporary and permanent group and accommodation to higher levels of labour turnover to balance product demand and labour supply. TNCs in our research site, Telford, dominate manufacturing employment, representing 60 per cent of all manufacturing jobs. This is similar to other sites of new jobs growth in the UK, for example Swindon where 66 per cent of manufacturing jobs are with TNCs and other new sites of TNC manufacturing investment. The findings are therefore applicable to other areas in which TNC employment has been dominant in manufacturing.

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More information

Published date: 2004
Keywords: Turnover

Identifiers

Local EPrints ID: 443139
URI: http://eprints.soton.ac.uk/id/eprint/443139
ISSN: 0958-5192
PURE UUID: 8782e6be-f6c8-45bf-b591-a546a287697c
ORCID for Maria Daskalaki: ORCID iD orcid.org/0000-0001-7860-1955

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Date deposited: 12 Aug 2020 16:30
Last modified: 13 Aug 2020 01:54

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Contributors

Author: Maria Daskalaki ORCID iD
Author: Chris Smith
Author: Tony Elger
Author: Donna Brown

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