Answered: Questions: a. Is a unionized system of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

1. Spanish two-tier flexibility There is strong evidence to suggest that flexible work practices are on the increase, although less agreement concerning whether this is part of a strategically planned reaction to changing environmental circumstances, including employee needs/wants, a result of short-term economic expedience or the outcome of a shifting balance between capital (employers) and labour (employees). Recent studies into flexible working in Europe suggest that, although there is an overall trend towards greater use of flexible working patterns, there is considerable variation in practice between countries, sectors and sizes of organizations. In very broad terms there are two tiers of employees or workers in Spain. About two-thirds of workers have very secure permanent contracts while the rest simply do not. Unemployment in Spain is among the highest in Europe (around 20 percent in 2010) and increased significantly throughout the recession in 2008 onwards. The vast bulk of those losing their job were employees on short-term, non-permanent employment arrangements. Employers have been wary of employing new staff on permanent contracts or of training or developing these people. They provide flexibility in the system - a source of labour that can be turned on or off at short notice. Meanwhile those on secure contracts continue to be shielded from the harsh economic environment. They are usually highly unionized and continue to enjoy pay rises despite the recession. But, for how long? Questions: a. Is a unionized system of working sustainable in rapid changing global circumstances where competitive forces for change are significant? b. What benefits could flexible working bring to employers and employees?

Expert Solution