Outsourcing of public services in Europe and segmentation effects: The influence of labour market factors

TY - JOUR

T1 - Outsourcing of public services in Europe and segmentation effects

T2 - The influence of labour market factors

AU - Grimshaw, Damian

AU - Rubery, Jill

AU - Anxo, Dominique

AU - Bacache-Beauvallet, Maya

AU - Neumann, László

AU - Weinkopf, Claudia

N1 - Funding Information: The author(s) disclosed receipt of the following financial support for the research, authorship, and/ or publication of this article: For generous funding, we are very grateful to the European Commission’s Directorate-General for Employment, Social Affairs and Inclusion and, in particular, for the support by the then Deputy Head of the Social Dialogue Unit, Andrew Chapman. The project reference is VS/2011/0141, Sub-programme ‘Improving expertise in the field of industrial relations’. Publisher Copyright: © 2015, © The Author(s) 2015.

PY - 2015/12

Y1 - 2015/12

N2 - This article examines the influence of labour market factors on public authorities’ decisions to outsource public services in five countries. The dominant focus in the outsourcing literature is on a narrow range of factors: public–private gaps in pay, union membership and collective bargaining coverage. We find such differences to be variable, and develop a more encompassing perspective. This includes consideration of labour market rules that establish wage floors and employment protection (especially for outsourced workers) and the possible differentiation of legal status between public and private employees. Our case studies from local government in five countries highlight a set of country-specific interconnections between labour market factors and outsourcing. These lead to variations in both managers’ and unions’ approaches towards outsourcing and in outcomes for pay and working conditions. We call for a strengthening of the inclusiveness of industrial relations structures to combat problems of workforce fragmentation caused by outsourcing.

AB - This article examines the influence of labour market factors on public authorities’ decisions to outsource public services in five countries. The dominant focus in the outsourcing literature is on a narrow range of factors: public–private gaps in pay, union membership and collective bargaining coverage. We find such differences to be variable, and develop a more encompassing perspective. This includes consideration of labour market rules that establish wage floors and employment protection (especially for outsourced workers) and the possible differentiation of legal status between public and private employees. Our case studies from local government in five countries highlight a set of country-specific interconnections between labour market factors and outsourcing. These lead to variations in both managers’ and unions’ approaches towards outsourcing and in outcomes for pay and working conditions. We call for a strengthening of the inclusiveness of industrial relations structures to combat problems of workforce fragmentation caused by outsourcing.

KW - France

KW - Germany

KW - Hungary

KW - labour market

KW - local government

KW - municipalities

KW - outsourcing

KW - procurement

KW - public services

KW - Sweden

KW - UK

UR - http://www.scopus.com/inward/record.url?scp=84948702002&partnerID=8YFLogxK

U2 - 10.1177/0959680115580685

DO - 10.1177/0959680115580685

M3 - Article

AN - SCOPUS:84948702002

SN - 0959-6801

VL - 21

SP - 295

EP - 313

JO - EUROPEAN JOURNAL OF INDUSTRIAL RELATIONS

JF - EUROPEAN JOURNAL OF INDUSTRIAL RELATIONS

IS - 4

ER -