Economic Concentration and the Externalization of Labour

Beatrice Appay
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Beatrice Appay: GEDISST-IRESCO, Centre National de la Recherche Scientifique, Paris

Economic and Industrial Democracy, 1998, vol. 19, issue 1, 161-184

Abstract: Current debate focuses on the consequences of massive layoffs and the search for ever-increased productivity. In this perspective, the future of work points towards even greater unemployment. This article proposes a different interpretation: the major trend is not so much towards the 'end of work' but to strategic expansion, through economic concentration and the externalization of labour. Evidence is given to demonstrate this thesis, with empirical examples in different industries at national and international level. The externalization process which characterizes current economic restructuring is directly related to the search for greater flexibility. As a result of fierce competition, different forms of labour organization are appearing as well as new costs for society. This article concludes that today's 'cascading subcontracting' is not only related to the externalization of labour costs, but also to the externalization of risks and responsibilities and, as such, contradicts more and more the basic principles of democracy.

Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ecoind:v:19:y:1998:i:1:p:161-184

DOI: 10.1177/0143831X98191008

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