Wild capitalism, privatisation and employment relations in Serbia

Abstract

We examine the phenomenom of wild capitalism under Post Communist transformation. Many commentators on post Communist transformation focus their attention on dysfunctional corporate governance and the deleterious consequences of liberalisation on business ethics. Poor business ethics and bad corporate governance may be a consequence of labour exploitation for comparative advantage, and the abandonment of party authority. This allowed rapacious rent-seeking by a minority well placed to benefit from the newly deregulated regime. A by-product is a burgeoning informal economy encouraged by insider dealing of privatised state assets. State regulation, where it exists, is often ignored. Employment relations are fragmented, with state-owned enterprises retaining some form of collective regulation, while newly privatised enterprises seek to marginalise union activity.

Rewarding employees in turbulent economies for improved organisational performance

“…Our findings may help organisations cope with the financial pressures of the economic crisis, however, there are wider implications of this that we must consider. The weak and dysfunctional labour market institutions in the SEE context (Hancké et al, 2007;Kornelakis and Voskeritsan, 2014;Myant, 2007;Upchurch and Marinkovic, 2011;Wood et al, 2014) are unable to protect workers from employers who may potentially use the austerity climate to financially exploit Prouska, R., Psychogios, A., Rexhepi, Y. (forthcoming): 'Rewarding employees in turbulent economies for improved organisational performance: Exploring SMEs in the South-Eastern European region', Personnel Review.…”

“…In a similar research on HR and working practices in Greece and Serbia, it is argued that although there are differences in the origins and development of crisis in these two countries, the crisis can be considered institutionalised in both contexts having similar impact on SMEs and the way they respond to it (Psychogios et al, 2015). There is also other research exploring HRM in Serbia (Bogićević Milikić, 2009;Bogićević Milikić et al, 2012;Upchurch and Marinkovic, 2011), but Kosovo has not been yet explored as a distinct business setting partly due to the unresolved political dispute. There is equally little research on HRM practices in Romania which explores the informality of HRM in Romanian businesses (Constantin et al, 2006;Dalton and Druker, 2012) and the changes to the labour market caused by the Romanian economic transition.…”

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

“…This concept has been employed for studying the less successful transition processes in CEE countries (see Bruner, 2002, for the case of Russia; Harper, 2006, for the case of Hungary; Upchurch and Marinković, 2011, for the case of Serbia). Wild capitalism is defined as a process of degradation of values and institutions of social solidarity, reduction of labour rights, deregulation of economic activity, corruption, weak civil society, and a weak state unresponsive to labour union claims (cf.…”

“…Wild capitalism is defined as a process of degradation of values and institutions of social solidarity, reduction of labour rights, deregulation of economic activity, corruption, weak civil society, and a weak state unresponsive to labour union claims (cf. Upchurch and Marinković, 2011).…”

“…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.…”