Explaining varieties of social solidarity in supply chains: Actors, institutions and market risks distribution in outsourced public services

Abstract

AbstractOn the basis of a comparative analysis of market risks (re)distribution between labour and management in public‐service outsourcing in Italy and Denmark, this article examines different cross‐national patterns of social solidarity in similar encompassing and co‐operative employment relations regimes. It seeks to explain why similar inclusive and collaborative systems of public‐sector employment relations are not functionally equivalent in preventing labour inequalities under market‐making pressure, as predicted by the extant literature. The analysis demonstrates that variation between the countries considered was due to three interrelated factors which mutually reinforced each other in either virtuous (Denmark) or (semi)vicious (Italy) circles: (i) the availability of legislative loopholes; (ii) the cross‐sectoral (public/private) organizational structure and strategy of trade unions and (iii) employers’ outward/inward orientation. The findings confirm the capacity of cross‐sectoral public/private dynamics to either build or erode solidarity in inclusive systems, and they highlight the importance of incorporating the strategic agency exerted by unions and public employers as a crucial determinant of the granular differences emerging between similar models.