The financial crisis and employee relations

Abstract

Purpose The purpose of this paper is to examine the response of industrial relations systems to the current financial crisis. Design/methodology/approach This editorial outlines the effect of the financial crisis on industrial output, unemployment and redundancies. It then examines the impact in the banking and manufacturing sectors of the single European market before looking more closely at the impact on individual European countries. There is also a look at public policy, labour market mechanisms design to protect employment levels and workers incomes. Findings The financial crisis has led to large rises in unemployment and redundancies and to large falls in industrial output. Collective bargaining has played an important problem‐solving role in achieving a peaceful adjustment at the workplace to falls in product demand. Collective agreements have been concluded designed to preserve jobs by providing for shorter working time with the state providing compensation for the corresponding fall in income. Originality/value The paper offers insights into the financial crisis and employee relations.

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