Flexibility and Labour Market Structures: The Role of Employers

Abstract

The aim of this paper is to explore the possibility of explaining labour market restructuring in terms of employers' labour utilisation strategies. The main arena of activity in the labour market is within employing organisations. Therefore, whilst national and industry level labour market studies may shed some light on labour market trends, this paper suggests that analysis should also assess the impact of activity within firms. A case study is used to examine the link between the employment polices and practices of a firm in the metals manufacturing industry and the labour market position of its employees taking into account the firm's institutional context (award restructuring, enterprise bargaining, and an active union presence). The study finds that the firm's pursuit of flexibility in order to improve its cost and quality competitiveness is exacerbating and reproducing divisions within the workforce based on workers' attributes (sex, English proficiency and formal qualifications). Labour market explanation should include, if not begin with, the role of employers.