Varieties of Work in Car Factories in the. BRIC Countries ULRICH JÜRGENS AND MARTIN KRZYWDZINSKI. Translated by Pete Burgess

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1 New Worlds of Work Varieties of Work in Car Factories in the BRIC Countries ULRICH JÜRGENS AND MARTIN KRZYWDZINSKI Translated by Pete Burgess OXFORD UNIVERSITY PRESS

2 Contents List offigures List of Tables List of Abbreviations xi xiii xv 1 Introduction Research Questions and Problematic The BRICs: Brazil, Russia, India, China The Case-study Companies The Plants Methodology and Data Overview 25 2 Theories and the Research Literature Introduction Convergence of HR Practices Varieties ofemployment Systems Varieties of Cultures HRM Systems in the BRICs in the Research Literature High Road or Low Road? Conclusions 47 3 People, Places, and Plants Locations and Actors Car Workers' Lives Säo Bernardo do Campo, Brazil Kaluga, Russia Pune, India Anting and Changchun, China Nominal Wages and Living Standards Plants and Production Systems Brazil Russia India China Summary 71 4 Recruitment and Vocational Training Brazil: Breaking with 'Hire and Fire' A Favourable Recruitment Situation A Shop Floor Workforce with Upper Secondary Education Martial Arts Training for Production Workers? Skilied Worker Training of VW and Toyota in their Home Countries Skilied Worker Training in Brazil: The Role of the SENAI Summary 87

3 viii Contents 4.2 Russia: Initial Stumbles on a Challenging Terrain 'Our Labour Market is Currently Very Difficult' Problems with Open Recruitment from the Labour Market Training Needs for Production Workers Underestimated The Dual System as an Innovation in the Russian Context Summary India: 'We Wanted to Make This a Completely DifFerent Plant' Complexities of Recruiting in a Caste Society Help Wanted Rural, Young, and Poor The 'Guru SchooF for Production Workers Differing Approaches to Skilled Worker Training Summary China: 'You Can Train Very Effectively Here' An Enormous Demand for Labour Recruitment Direct from Vocational Schools Agency Employment and Internships: Scope for Precarious Employment Onboarding and Initial Training on a Massive Scale A Complex Arrangement for Training Skilied Workers Summary Conclusions Employee Development Critical Junctures in HR Flow Employee Development at VW and Toyota: The Home Countries Brazil: Land of Lifelong Learning VW do Brasil:'We Are Trying to Change the Culture' Employee Development at Toyota Indaiatuba: Blocked on the Shop Floor Combining Work and Study Summary Russia: Difficult Beginnings on an Unknown Terrain Volkswagen Rus: Danger of a Vicious Circle Career Development at Toyota: 'We Tried to Take into Account the Russian Mentality' Employee Development at GAZ: Combining Tradition with Modernization Low Level of Interest in Further Training Summary India: 'Manual Work is Worthless' Volkswagen Pune: What Do Indian Workers Expect? Toyota Bangalore: Work Life Plans for Indian Employees Mahindra & Mahindra: 'Everyone Is Looking for a Career' Summary China: Land of Unlimited Opportunities Career Paths at the VW Joint Ventures: Home-grown Creations Career Paths at FAW-Toyota: A Japanese System in a Chinese Context Careers at Geely: Traditional for Workers, Western for Managers 178

4 Contents ix Combining Work and Study Summary Conclusions Pay Systems Differences in Remuneration Philosophies Brazil: Seniority or Performance? The Tradition of Seniority-based Pay Basic Pay Seniority Prevails Variable Pay No Thanks! Summary Russia: Scope for Opportunism The Soviet Legacy The Legacy of Job-based Pay Variable Remuneration: 'Is It Always Objective?' Summary India: A Gulf between Operatives and White-collar Workers Striking a Balance between Different Demands Basic Pay: Seniority or Merit? Variable Pay Attention, Trade Union! Summary China: Pressure for Performance Pay Reform from Above Person-based Pay Prevails Enormous Range of Individualized Pay Summary Conclusions Shop Floor Worlds Genchi Genbutsu Brazil: Modernizing Production With or Without Trade Unions Volkswagen do Brasil: A Major Cultural Shift Toyota Indaiatuba: TPS from the Start Summary Russia: 'The Russian Mentality is Different' Volkswagen Rus: A Strained Shop Floor Environment Toyota Team Russia: With a Smile GAZ: The Main Aim Is Changing the Culture Summary India: The Aim Is a New Work Culture Volkswagen: 'We Are Not Going to Do Spoon Feeding' Toyota Bangalore: 'Toyota Way Does Not Mean That One Has to Do Exactly the Same as in Japan' Mahindra & Mahindra:'We Are Trying to Evolve a New Culture' Summary China: A Paradise for Shop Floor Management Volkswagens Joint Ventures: 'The Advantage Here is the Hard Work' Toyota Tianjin: Tensions on the Shop Floor Geely. Unleashing the 'Basic Power' Summary Conclusions 266

5 X Contents 8 Industrial Relations and Employee Voice Standards on a Contested Terrain Transferring Home-Country Standards to the BRICs: VW and Toyota Brazil: Spearhead of Democratization Development of Industrial Relations in Brazil Cooperative Conflict Resolution Summary Russia: How to Build Trust? Continuity and Change in Transition Volkswagen: Striving for a Works Council Model GAZ: Traditional Social Partnership Summary India: 'Pro-active IR is Necessary' Labour Law and Role of Trade Unions Volkswagen: Searching for a 'Responsible Union' Mahindra & Mahindra: Why Do You Need a Union? Summary China: Trade Unions' Dual Role as Principal and Agent Cautious Departure from the Communis! Model Volkswagen: Moving Towards a Works Council System? Geely: The Traditional Model Summary Conclusions Overall Conclusions Global Convergences? DifFerent Employment System Logics Local Cultures, Global Standards High Road or Low Road? Prospects 318 References 319 Index 337

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