Pay and Working Conditions in Finance and Utility Call Centres in Denmark and Germany

Abstract

This study analyses how national institutions, sectoral bargaining structures and union strategies affect working conditions and pay by comparing call centres in two liberalized service sectors: financial services and utilities. We find more segmentation and expansion of low wage work in Germany and more cooperation on high-involvement practices at workplace level in Denmark. However, outcomes are not uniform; we find differences between sectors in the use of subcontracting and union power at the workplace-level. Poor economic performance, segmentation-oriented employer strategies, declining bargaining coverage and weakened unions in Germany have undermined formal constraints on employers, whereas better outcomes in Denmark are due to a pronounced stability of the regulative and normative institutional framework. However, the Danish model is also being weakened from the margins.