Outsourcing of public services in Europe and segmentation effects: The influence of labour market factors

This article examines the influence of labour market factors on public authorities’ decisions to outsource public services in five countries. The dominant focus in the outsourcing literature is on a narrow range of factors: public–private gaps in pay, union membership and collective bargaining cover...

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Bibliographic Details
Published inEuropean journal of industrial relations Vol. 21; no. 4; pp. 295 - 313
Main Authors Grimshaw, Damian, Rubery, Jill, Anxo, Dominique, Bacache-Beauvallet, Maya, Neumann, László, Weinkopf, Claudia
Format Journal Article
LanguageEnglish
Published London, England SAGE Publications 01.12.2015
Sage Publications Ltd
Subjects
Collective bargaining
Decisions
Economics
Employment
Europe
France
Germany
Hungary
Labor market
Labor relations
Labor unions
Labour market
Labour relations
Local government
Membership
municipalities
Nationalekonomi
Outsourcing
procurement
Protection
Public services
Subcontracting
Sweden
Trade unions
Unions
Work environment
Workers
Europe
Sweden
Hungary
outsourcing
labour market
procurement
UK
local government
public services
France
Germany
municipalities
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Summary:This article examines the influence of labour market factors on public authorities’ decisions to outsource public services in five countries. The dominant focus in the outsourcing literature is on a narrow range of factors: public–private gaps in pay, union membership and collective bargaining coverage. We find such differences to be variable, and develop a more encompassing perspective. This includes consideration of labour market rules that establish wage floors and employment protection (especially for outsourced workers) and the possible differentiation of legal status between public and private employees. Our case studies from local government in five countries highlight a set of country-specific interconnections between labour market factors and outsourcing. These lead to variations in both managers’ and unions’ approaches towards outsourcing and in outcomes for pay and working conditions. We call for a strengthening of the inclusiveness of industrial relations structures to combat problems of workforce fragmentation caused by outsourcing.
Bibliography:ObjectType-Article-1
SourceType-Scholarly Journals-1
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ISSN:0959-6801
1461-7129
1461-7129
DOI:10.1177/0959680115580685