The Global Financial Crisis, Work and Employment: Ten Years On

Abstract

The global financial crisis (GFC) of 2007-2009 resulted in the most severe recession the world has encountered since the Great Depression of the 1930s. Although the GFC had very uneven effects around the world, including those on work and employment, it also highlighted the interconnectedness of different national orders, and the continued importance of national institutions in shaping policy choices and responses at the country level. At the organisational or firm level, the GFC also highlighted the tensions between external forces and a challenging macroeconomic environment on the one hand, versus actor agency and strategic choice on the other. At the individual level we can also consider the implications of the GFC for organisational actors including trade unions, workers and managers. Finally, there are important questions regarding the legacy of crisis in the medium and long term. This introductory article offers a review of these themes, before introducing the articles in this special issue on the impact and legacy of the global financial crisis on work and employment ten years on.

Inequalities in the disruption of paid work during the Covid‐19 pandemic: A world systems analysis of core, semi‐periphery, and periphery states

“…In a global health crisis that wreaks havoc on labor markets, two institutional pillars of labor markets stand out: the strength of collective bargaining and active labor market policies. The influence of trade unions beyond workplace boundaries is well‐documented in the employment relations literature (Budd et al, 2018 ; Lamare, 2010 ), particularly at a time of economic crisis (Hickland & Dundon, 2016 ; Johnstone et al, 2019 ; Roche & Teague, 2012 ). It is underscored by the predisposition of collective bargaining to deliberative decision‐making, democratic, cooperative behaviors in the workplace underpinned by trust between employers, employees, and their representatives (Schulz et al, 2021 ; Wilkinson et al, 2014 ; Wilkinson & Wood, 2012 ).…”

Doing the right thing? An institutional perspective on responsible restructuring in UK local government

“…Downsizing and restructuring have come to be accepted as legitimate business strategies to reduce costs and improve corporate performance, despite weak evidence that either outcome is likely (Cook et al., 2016; ILO, 2020; Johnstone et al., 2019; McLachlan et al., 2020; Vaughan‐Whitehead, 2013). Negative results from restructuring can be explained by the loss of human capital arising from heavy workforce reductions, and deteriorating morale and commitment described as ‘survivor syndrome’ (Cascio, 2002; Tsai & Shih, 2013).…”

“…Other studies note the remarkable stability of employment levels in many countries, and limited conflict with workers even as managers pursue cost savings through a range of mechanisms (e.g., Conway et al., 2014; Johnstone et al., 2019; Van Wanrooy et al., 2013). This continuity may be interpreted as indicating organisations having implemented socially responsible restructuring, where they successfully balance the need for cost savings against the need to maintain worker morale and cooperation (e.g., Ahlstrand, 2010; Cascio, 2002; Forde et al., 2009; Tsai & Shih, 2013).…”

Employee participation and representation in Central and Eastern Europe

“…The recent financial crisis has intensified the deterioration of collective bargaining in the context of significant labour market change. (Johnstone et al, 2019) Some suggest that indirect EIP in decision-making is less effective than it was, with employers reducing consultation with their staff within the climate of the crisis (Marchington and Kynighou, 2012).…”

“…It is particularly intriguing to investigate indirect forms of EIP in decision-making given the decline of collective representational forms in the Anglo-American world (Freeman et al, 2007) and across the developed economies of Western Europe (Kessler et al, 2004). The recent financial crisis has intensified the deterioration of collective bargaining in the context of significant labour market change (Johnstone et al, 2019). Some suggest that indirect EIP in decision-making is less effective than it was, with employers reducing consultation with their staff within the climate of the crisis (Marchington and Kynighou, 2012).…”