Shifting Employer Strategies in Light of Institutional Change

Abstract

This chapter investigates business strategies used by Norwegian shipyards after the European Union (EU)-enlargements and how trade unions and the government have responded. ‘The Norwegian shipbuilding case’ can serve as a good example of the tensions and inconsistencies between different national labour regulations and EU regulations. This case shows how the strategic choices of employers have consequences for changing legal statuses, wages, and working conditions for employees engaged in cross-border work. A key-element in the model is the cooperation between employers and workers’ representatives at the company and industry level. The EU eastward enlargement, followed by the strategic actions of employers and trade unions responses, have led to institutional change in an industry that is one of the core industries of the Norwegian industrial relation system. In an international product market, employers can rely on different strategies to lower their labour costs. The EU enlargements have led to the highest immigration wave to Norway in modern history.

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