Competence development on the shop floor and industrial upgrading: case studies of auto makers in China

Abstract

Industrial upgrading in China is rapidly increasing the competence requirements for employees on the shop floor. The institutional environment in China, however, does not seem very supportive: the quality of vocational education is often low and Chinese labor law provides strong incentives for companies to use temporary labor. This paper examines the competence development practices for blue-collar workers in automobile companies in China. Against expectations, automobile companies in China do not pursue ‘low road’ strategies but have designed intensive internal training programs and long-term career paths for blue-collar workers. Different theoretical explanations for the competence development approaches are discussed: human capital theory, high-commitment work systems theory, production systems theories, industrial relations and institutionalist theories. The paper is based on qualitative case studies of German, Japanese and domestic automobile manufacturers in China.

Keywords::

• automotive industry
• China
• competence development
• human capital
• industrial relations
• production systems