New working arrangements: changing the nature of the employment relationship?

Abstract

Recently there has been a revival of interest in the nature of the employment relationship. The employment relationship in a market economy has been traditionally understood as a dynamic equilibrium between the contending forces of conflict and cooperation. However, some contemporary accounts purport to detect a fundamental change in the nature of the employment relationship. These arguments are flawed because they appear to mistake changes in employment arrangements for changes in the core features of the employment relationship. As the contemporary employment relationship remains rooted in market economies, where labour is bought and sold, its core characteristics persist. In testing this claim, we examine whether new working arrangements are associated with changes in attitudes and behaviour. This is based on a survey of white-collar union members in Ireland. We find little support for the assumption that new working arrangements such as increased job autonomy and involvement in decision-making are eradicating the old conflictual attitudes associated with the traditional employment relationship and psychological contract.

Keywords:

• Employment relationship
• market context
• psychological contract

Notes

1 In unregulated or ‘structure-less labour market’ unions are weak or non-existent, there is no security of employment, an absence of seniority or other rules and transitory, impersonal employer / employee relations predominate (Carpenter and Jefferys, 2000; Fisher, 1951; see also Fox, 1974;).

2 Freeman and Medoff (1979, 1984) have argued that unions can ensure that worker's preferences concerning pay and working conditions are voiced leading to lower labour turnover, lower training costs, lower accidents and better worker morale. Williamson (1975) argues that trade unions can reduce opportunistic bargaining on the part of individual employees and encourage ‘consummate rather than perfunctory cooperation’.