Accounting for Strikes: Evidence from UK Manufacturing in the 1980s

The decrease in the number of strikes in the UK during the 1980s has revived the discussion on the explanatory factors of strike frequency. This paper investigates explanations for the time variation of strike frequency in different industries of British manufacturing. The framework used is that of the joint cost model of strikes; strike frequency is inversely related to strike costs. The results from a panel of 90 manufacturing industries for the period 1983–88 show some support for the hypothesis that strikes decreased because they became more expensive. In the main, we find that factors that affect both employers and employees (such as revenue, inventories) are significant in explaining variations in strike frequency. Factors that affect only employees, however, such as the unemployment rate, are not.     

Nurses' strikes: a profession maturing

Very few metropolitan areas have experienced nurses' strikes. Even fewer have contended with a second potential strike and aveted it. The Twin Cities experienced a nurses' strike in 1984. In May 1989, a similar strike was threatened. An agreement was reached less than 48 hours before the strike vote. This article analyzes the changes that occurred between the two strikes.     

Have Industrial Relations in the UK Really Improved?

Abstract. The number of strikes reported in British industry has been on a downward trend over the past two decades, falling in 1998 to its lowest level since records began. This may indicate that relations within British industry have improved; however, the same period has also witnessed a sharp increase in the number of individual ACAS and employment tribunal cases. We discuss possible reasons for the changes in the patterns of industrial unrest over time and use individual micro‐data to examine whether the observed decline in strike activity has actually been associated with an improvement in perceptions of workplace industrial relations.     

An Econometric Analysis of Strike Activity in the Brazilian Industrial Sector

A data set on strike activity for Brazil during the period between 1983 and 1993 is used to produce results based on statistical methods of frequency and duration analysis. The obtained results of frequency and duration of strikes, including their relationships with some macroeconomic variables, are compared with ones from similar studies using data from the USA and Canada. The comparison shows that there seems to be a common pattern of results in these countries. An explanation for the observed features of these patterns is then sought in the context of game‐theoretic models of bargaining, and suggestions for future research in the area are given.     

Do Teacher Strikes Harm Educational Attainment of Students?

This paper investigates the effects of a teacher strike on student achievement. From May 1990 until November 1990 teachers in the French community of Belgium stroked to obtain a salary increase. We exploit the political division of Belgium in a French community and a Flemish community, with similar educational institutions, for estimating the long‐term effects of the strikes. Based on a difference‐in‐differences approach, using data from two different surveys, we find some evidence that the strikes reduced educational attainment and increased class repetition. We also find that the strikes led to a significant reallocation of students to a lower level of higher education. Overall, the results suggest that teacher strikes can lead to substantial costs for those not involved in the conflict.     

Strike Outcomes and Wage Settlements in Spain

Abstract. This paper analyses collective bargaining using Spanish firm‐level data. Central to the analysis are the joint determination of wage and strike outcomes in a dynamic framework and the possibility of separate wage equation for strike and non‐strike outcomes. Conditional to strikes taking place, we confirm a negative relationship between strike duration and wage changes in a dynamic context. In this sense, the joint effect of the strike variables is positive for short strikes and negative for long ones (above 20 days). Furthermore, we find selection in wage equations induced by the strike outcome. In this sense, the possibility of wage determination processes being different in strike and non‐strike samples is not rejected by the data. In particular, wage dynamics are of opposite sign in both strike and non‐strike equations. Finally, we find evidence of a 0.33 percentage points wage change strike premium.     

A Heuristic Risk Assessment Technique for Birdstrike Management at Airports

Collisions between birds and aircraft (birdstrikes) have caused the loss of at least 88 aircraft and 243 lives in world civil aviation. Conservative estimates suggest that more routine damage and delays following birdstrikes cost the industry and its insurers US$1.2-1.5 billion per year. The majority of strikes happen close to airports and most countries have regulations that require airport managers to control the birdstrike risk on their property. Birdstrike prevention has, however, lagged behind other aspects of flight safety in the development and implementation of risk assessment protocols, possibly because of the inherent difficulty in quantifying the variability in the populations and behavior of the various bird species involved. This article presents a technique that uses both national and airport-specific data to evaluate risk by creating a simple probability-times-severity matrix. It uses the frequency of strikes reported for different bird species at a given airport over the preceding five years as a measure of strike probability, and the proportion of strikes with each species that result in damage to aircraft, in the national birdstrike database, as a measure of likely severity. Action thresholds for risk levels for particular bird species are then defined, above which the airport should take action to reduce the risk further. The assessment is designed for airports where the reporting and collation of birdstrike events is reasonably consistent over time and where a bird hazard management program of some sort is already in place. This risk assessment is designed to measure risk to the airport as a business rather than risk to the traveling passenger individually. It therefore takes no account of aircraft movement rate in the calculations and is aimed at minimizing the number of damaging incidents rather than concentrating on catastrophic events. Once set up at an airport, the technique is simple to implement for nonexperts, and it allows managers to focus bird control resources on the species causing the greatest risk, hence maximizing the return on investment. This protocol is now being successfully used at major airports in the United Kingdom and elsewhere in the world.     

The Determinants of Contract Strikes: A Microeconometric Analysis

ABSTRACT: This paper explores the determinants of contract strikes using micro-data referred to a regional economic system (the Veneto region). An effort is made to build up suitable variables to test the hypothesis that strikes are the outcome of an exchange with asymmetric information. The results obtained with a logit model validate the implications of this theory: strikes turn out more likely when a firm is in low state, the industry labour market is tight, and the union is unable to get information from management. Other significant findings are the dependence of strike action on the workforce composition, the industry and location in which the firm operates, its kind of property and productive processes, and the season in which the bargaining takes place.     

Women on corporate boards around the world: Triggers and barriers

One of the institutions in which the gender gap remains a contestable issue is the board of directors, where the proportion of female directors is still low. While some countries have achieved higher proportions of female directors on their corporate boards, others have not registered even a single one. Drawing on social role theory, that places emphasis on traditional gender activities, this study starts by arguing that board directorship is an agentic role and more suitable for men. The study shows that key social institutions have the potential to alleviate such stereotypical attitudes or to maintain the status quo. Employing a robust statistical technique in two-stage least squares (2SLS), this study finds that the representation of women in other key national institutions, such as in politics, positively affects the appointment of female directors on boards. On the other hand, religiosity has a negative causal effect on female board appointments.     

Globalisation and trends in international R&D alliances

The growth of collaborative activity is greatly influenced by the process of globalisation. This paper focuses on the narrow area of collaborative R&D activity, and takes a ‘macro,’ as well as a firm perspective of the effects of these developments. Globalisation has affected the need of firms to collaborate, in that firms now seek opportunities to cooperate, rather than identify situations where they can achieve majority control. The use of collaboration is particularly acute in capital- and knowledge-intensive sectors. These are also the sectors where firms have expanded internationally fastest, as they need to compete in various markets simultaneously, but also to exploit and acquire assets and technology that may be specific to particular locations. The increasing similarity of technologies across countries and cross-fertilisation of technology between sectors, coupled with the increasing costs and risks associated with innovation has led firms to consider R&D alliances as a first-best option in many instances.     

Conflict,collaboration and commitment in British industrial relations

In this article, the author takes to task those who use the indicator of “strike activity” to measure the state of industrial relations. The case study is specifically that of the United Kingdom, but it has applications elsewhere as well.When this is done, and when it is pointed out that such a measure ignores complexities like the distribution curve of strikes and the qualitative gains from negotiations, it becomes clear that strike-prone British industry is a chimera.Nonetheless, Marchington warns against complacency. Even techniques of increased employee involvement and workplace flexibility, like briefing committees and quality circles, may not bring equal benefits to employers and employees.     

Layouts for ocean wave energy farms: Models,properties, and optimization

Renewable energy, such as wave energy, plays a significant role in sustainable energy development. Wave energy represents a large untapped source of energy worldwide and potentially offers a vast source of sustainable energy. We present models and a heuristic algorithm for choosing optimal locations of wave energy conversion (WEC) devices within an array, or wave farm. The location problem can have a significant impact on the total power of the farm due to the interactions among the incident ocean waves and the scattered and radiated waves produced by the WECs. Depending on the nature of the interference (constructive or destructive) among these waves, the wave energy entering multiple devices, and thus the power output of the farm, may be significantly larger or smaller than the energy that would be seen if the devices were operating in isolation. Our algorithm chooses WEC locations to maximize the performance of a wave farm as measured by a well known performance measure called the q-factor, which is the ratio of the power from an array of N WECs to the power from N WECs operating independently, under the point absorber approximation. We prove an analytical optimal solution for the 2-WEC problem and, based on the properties of the 2-WEC solution, we propose an iterative heuristic optimization algorithm for the general problem.     

Union Power in a Welfare State

Abstract. Most West European countries have suffered from stagflation for many years. Mainstream economics has debated the question in particular in terms of the demand and supply of goods, labour and capital. But in recent contributions a new element has been introduced: the institutional structure of the economy as a source of imbalances. In this article we focus on the institutions of the labour market. For more than a century West European unions have been struggling to transform market economies into a more efficient and just order. Moral persuasion, strikes, and revolutionary threats were their main weapons. After the Second World War governments yielded to the pressure by building up, together with the unions, a welfare state. During the sixties however, the struggle was renewed, although the governments continued to improve the social security system and maintained their responsibility for full employment. A short sketch will be given of the ideological struggle during the first half of the twentieth century, leading to a significant institutional change: the transformation of a system of private wage bargaining into a collective wage bargaining system. Then the neoclassical, the Marxist and the Keynesian view on the effects of union power on the economic performance of a market economy and of a welfare state will be presented. The conclusion is drawn that the methods required to transform a market economy into a welfare state are anomalies as soon as a welfare state is more or less realized. This is particularly so, because the transformation of a welfare state into a centrally planned economy cannot be considered desirable. In present circumstances, it would be appropriate to pay more attention to the design of an extensive system of mediation and arbitrage to reduce the use of the strike weapon.     

The micro-foundations of industrial diversification through foreign acquisitions: The multifaceted role of CEO experience

This paper examines the micro-foundations of cross-border industrial diversification strategies. We study the impact of observable CEO experience attributes on the propensity to acquire foreign target firms in unrelated (versus related) industries. Our findings, based on a sample of UK-based firms that engaged in cross-border acquisitions between 2010 and 2016, support an inverted U-shaped relationship between life experience of the CEO and the likelihood of engaging in unrelated foreign acquisitions. Further, we find that CEOs' broad-based work experience, across countries or industries, is associated with a higher propensity to engage in unrelated foreign acquisitions. Finally, CEOs’ education experience in MBA-type qualifications is associated with a preference for related foreign acquisitions. We discuss the theoretical implications of these findings and outline directions for future research in the context of micro-foundations in international business, strategic leadership, and upper echelons theory.     

International offshoring of services: A parity study

Conventional wisdom suggests that firms engage in international offshoring of services primarily to reduce wage costs associated with a given service activity. Drawing on international business research on the costs of doing business abroad (CODBA), liability of foreignness (LOF), and institutional theory, we investigate the factors that contribute to the location choices for services offshoring activity, including wage differentials between the home and host countries. We find that consistent with a parity perspective but contrary to conventional expectations, a country is more likely to be a destination of services offshoring as the average wage of a country increases. We also find that education level and cultural similarity are significant drivers of offshoring location choices, again consistent with a parity perspective. This study contributes to debates about the economic impact of services offshoring by showing that firms locate offshoring facilities in destinations that are closer in wages to the home country and those with higher education levels and cultural similarity.     

Productivity Competitiveness among Non Cooperating Integrated Economies: A Negative-Sum Game

ABSTRACT: The strategies adopted by European countries during the 1970‘s and 1980‘s have been unsuccessful in their attempt to produce more employment. These strategies have been centred on attempts to improve the international position of a country at the expense of the others through increasing productivity and competitiveness. The negative effects on employment due to higher productivity should have been offset, in the longer run, by an increasing share of exports. But the eventual result has been that relative positions of countries have remained fundamentally unchanged. This is due to the fact that all countries adopted the same strategy. Aggressive strategies do not pay in terms of employment. More effective policies, in a situation characterized by accelerated technical progress, can be more easily implemented in a more co-operative international context. Even if there is no moral solidarity between the nearly related races of Europe, there is an economic solidarity which we cannot disregard. Even now the world markets are one. This is to put the issue on its lowest grounds. There are other arguments, which the most obtuse cannot ignore, against a policy of spreading and encouraging further the economic ruin of great countries (J.M. Keynes) ¹⁸     

Automation in coal mining

A study of the 21st Century energy situation shows that coal must be the principal fuel, gradually followed by the renewable fuels which require fossil fuel to make and build the equipment. For a stable world the developed countries must help the less developed by providing all the tools necessary for self production of a decent standard of living, and to avoid world war all countries nust necessarily converge on a per capita energy usage about equal to the present world average per capita figure of 1·5-2 tons of coal equivalent. As oil runs out a substitute liquid fuel will have to be made from coal and from biomass because oil is uniquely suitable for road, sea and air transport and for agriculture. Coal can be mined without men going underground by directed drilling and by Telechirics—hands at a distance. In Telechiric mining, the coal would be won by conventional mining machinery but the human miners would erect, operate, maintain and repair this machinery by sitting in a control room on the surface and controlling telechirs which could move about the mine and would have mechanical hands which would respond exactly to every movement of the human master's hands. He would have touch and force feedback and three dimensional vision so good that he could use his trained craft skill of hands and eyes as though he were down the mine.     

Career patterns of top managers in Europe: Signs of further globalisation?

Investigating career patterns of top managers has been a prominent topic in European Management Journal (EMJ) since the 1990s. Our article contributes to ongoing debates about national differences in top managers' career patterns between European countries. An open question is whether globalisation processes may have challenged the existence of specific career patterns and whether they may have transformed the profiles of business elites in Europe. Our article uses recent data from four European countries (France, Germany, Switzerland and the UK), collected in a way similar to an EMJ article published in 2013, with the objective to assess potential developments that have taken place over the last decade. Some of the major changes relate to the growing relevance of business school degrees or certificates (such as MBA degrees), a higher proportion of non-nationals and women on boards, more managers with international experience and an increasing number of top managers with a prior career with auditing or consulting firms. The article provides not only new empirical insights, but also a review of the key characteristics of top managers’ careers, some methodological reflections on cross-national comparison and new research avenues at the cross-roads of career literature and upper echelons literature. By shedding light on the career patterns of key decision-makers in large European firms, the article offers new insights for researchers, educators and managers alike.     

On ‘optimal’ technology and scale in industrialization: Steel-making

Questions of the appropriateness of technology transfers from industrialized countries, and of the concomitant implications for the optimal scale of operations, have formed a persistent topic in discussions of development schmes. Some of the theoretical assumptions underlying these discussions are examined on the basis of empirical observations on the establishment of steel-making facilities in developing economies. Steel mills have become regarded as part of the necessary infrastructure in many countries; thus, a sufficiently large number of installations have occurred to permit some generalizations. It is found that the achievement of optimal plant sizes, in the sense of static economic theory, proves elusive at best in the dynamic setting of ambitious growth objectives. Completely aside from political considerations, various economic factors not only militate against the projection of an optimal scale of operations, but also make a commitment to such a scale inadvisable. Besides, little evidence is found to suggest that advanced techniques are not sufficiently flexible in terms of input and size requirements to permit their transfer to developing countries. One may hazard the conclusion $\text{that market, rather than technological}$, rigidities could prevent the realization of a new industry's full potential.