Conditions of the labor market that encourage foreign investments in Central and Eastern Europe

Marie B.

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Conditions of the labor market that encourage foreign investments in Central and Eastern Europe

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Lecture
Résumé
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Today, a well known economic phenomenon is that the foreign investments in the Central and Eastern Europe have been flooded, since 1989. Amongst many other economic data, we could include that in 2003, 29 billions dollars were invested by foreign companies. This figure is not easy to achieve, however, we could add that from 2002 to 2003, the investments grew by 20%. Moreover, it grew when the general investments all over the world were decreasing. Since the beginning of the process of economic and political liberalization of these countries in the year 1989, these investments have helped Central and Eastern European countries to thrive. The investors mainly come from Western Europe. This phenomenon is thus at the core of the European economy.

Sommaire

Introduction
The specific workforce
The decreasing role of trade unions in the construction of a legal framework
1. The presence of strong trade unions
2. Decrease in the unionization rate
3. The weak position in the process of decision-making
4. The absence of big and strong trade unions in Central and Eastern Europe
5. The structural difficulties of trade unions
6. The position of the EU regarding the issue
The flexibility of work organization
1. The problem of the dismissing role of trade unions
2. The issue of the organization of work
3. The method of Taylorism
4. Quicker and efficient methods
Dichotomy between the EU 15 and most of the Eastern new members
Conclusion
Sitiography

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Extraits

[...] These conditions are really attractive for the foreign investors mainly because they are specific to the Eastern European countries compared to the Western ones. Indeed, it seems that new methods of work's organisation, closed to taylorism, have been adopted since 1989, whereas these methods are deemed old-fashioned and outrageous in Western countries. After having given the context which enabled new methods to rise, we will now focus on the precise conditions of work eastwards. Here, so as to give a complete answer, we will use both our own questionnaires and a survey called Conditions of work in member and applicants countries made by “European Foundation for improving conditions of living and working”. [...]

[...] No, no, yes, no,no,yes - Do you belong or have you ever belonged to a Trade Union? No - Do you think that the State helps you to get better conditions of work? Or is it the contrary? No, however it's not exactly the contrary either, no, no, no, no, no For those who worked before 1989 : - Do you have the feeling that your conditions of work have changed since 1989? Your job is more repetitive than before 1989. Yes, yes, yes You work more than before 1989. [...]

[...] As a result, we can wonder if adhesion to the EU is not harmful for the investments eastwards, and for these economies in general least, in the short term-. Moreover, thriving economies also mean higher standards of living, and, as a result, higher expected wages by the local workers. East would then loose one of its most interesting specificities cheap but qualified labour force-. In the mid- term, economic development and adhesion to the EU do not look that fruitful for Eastern countries, as far as investments are concerned. [...]

[...] On the other hand, foreigners will find new and different conditions to make them invest, investments that will be more quality and R&D investments than today. To conclude with, we could say that, once again, as far as investments in Eastern Europe are concerned, the roles of rules and laws –either national or European ones- are essential; in comparison with a work force whose specificities are fluctuant. Bibliography -P.LOROT Dictionnaire de la Mondialisation Ellipses 2001 -article : Délocalisations dans les PECO, retour sur les idées reçues dans Courrier des Pays de l'Est n°1048 mars avril 2005 -JP PIRIOU Lexique de Sciences économiques et sociales Editions la découverte 1997 -François BAFOIL, Après le communisme, Paris, Armand Colin Sitiography -http://www.minefi.gouv.fr/Prevision/nci/nci0210/est.pdf http://www.courrierinternational.com/article.asp?obj_id=57811&provenance=acc ueil&bloc=0 -http://www- ilomirror.cornell.edu/public/french/dialogue/sector/techmeet/tmpu99/tmpur3.h tm -http://www.regionetdeveloppement.u-3mrs.fr/pdf/R20_Dupuch.pdf -http://www.un.org/french/pubs/chronique/2003/numero4/0403p18.asp -http://www.ilo.org/public/french/bureau/inf/pkits/wlr97.htm http://www.mouvementeuropeen.org/manifestations/images/pdf/conf_europecentra le.pdf -http://www.univ-evry.fr/labos/gerpisa/actes/29/29-5.pdf http://portal.unesco.org/education/fr/file_download.php/b04194ac3f94378af8c4 dd3e977a060beurope_centrale_orient_FR.pdf -http://europa.eu.int/comm/employment_social/speeches/2001/010615oq.pdf - http://www.unctad.org Appendix Precise Questionnaire It is written in French because the questions and the translation were directly written in French. [...]

[...] Ils ont une réputation d'exploiter les travailleurs en embauchant et en licenciant à leur guise. -Les entreprises d'avant 1989 qui doivent se restructurer adoptent-elles des méthodes d'organisation scientifique du travail ? Comment se fait leur adaptation à la concurrence internationale ? Par quelles méthodes (éventuellement par du post-taylorisme peuvent-elles acquérir une nouvelle compétitivité ? Les grandes entreprises avant 89 ont été détruites après le changement. Plusieurs compagnies, à partir d'une seule grand compagnie, se sont formées sur la base de contrats. [...]

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