The IFIs and Labour Reform in Post Communist Economies

From Workers’ Self-management in Socialism to Trade Unions Marginalization in “Wild Capitalism”: A Case Study of ArcelorMittal in Bosnia and Herzegovina

“…There is a growing consensus that the complex processes of transition and their consequences cannot be separated from the broader forces of globalisation (Upchurch, 2009;Upchurch and Marinković, 2011). It is clear that the role of International Financial Institutions, the IFIs (the World Bank and IMF), EU and other relevant international actors promoting the neoliberal recipe of transition and industrial restructuring was at least as important as the legacy of the past.…”

“…It is clear that the role of International Financial Institutions, the IFIs (the World Bank and IMF), EU and other relevant international actors promoting the neoliberal recipe of transition and industrial restructuring was at least as important as the legacy of the past. Governments have continuously been encouraged to further privatisation of publicly-owned companies and ser-vices and deregulation of labour markets, resulting in additional marginalisation of trade unions and increased polarisation between the highest and lowest incomes (Upchurch, 2009). Previously strategic industrial sectors such as the steel industry have become an easy target for acquisitions by multinational companies (MNCs) from emerging economies, such Indian Mittal Steel, and an important instrument in their global expansion strategies, resulting in global industrial restructuring and related transformation of industrial relations further exacerbating the position of labour.…”

Persistent Economic Divergence and Institutional Dysfunction in Post-Communist Economies: An Alternative Synthesis

“…Pre-transition Gini co-efficients were around The downgrading of the protective labour codes has also enabled the process of informalisation whereby regulations on dismissals and redundancies as well as pension provision have been loosened in an effort to clear labour market 'rigidities'. Indeed, such downgrading of labour protection has been a major focus of IFI conditionality in the granting of loans and grants (Forteza and Rama, 2001;Upchurch, 2009 There is also a preponderance of weak and under-developed agencies within 'civil society' (Howard 2003), which might otherwise have been able to keep corporate and individual interests in check. This 'weak' civil society in most cases sits side-by-side with a strong state, the hands of the ruling coalitions at the local levels'.…”

Wild capitalism, privatisation and employment relations in Serbia

“…In addition, within the CEE at least, the prospects and realities of conditions attached to EU Accession were hoped to serve as potential restraints on the worst excesses of a decade of neo-liberal damage to societal solidarity and market efficiency. However, the case for IFI change in the transformation states remains unproven (ICFTU, 2003;Upchurch, 2009), with many examples of continuation of old practice. The onset of world-wide system failure following the world financial crisis of 2008, associated as it was by western-based financial mismanagement and boardroom greed, also exacerbated the problem.…”

“…‗Protection' in this context entailed regulations on dismissals and redundancies as well as pension provision. Such downgrading is a focus of IFI conditionality (Forteza and Rama, 2001;Upchurch, 2009). Third, is a disregard for, or absence of, rules and regulations which govern the behaviour of corporations and corporate elites within wider society and the market (c/f Aglietta and Rebérioux, 2005).…”