Industrial Relations & Innovative Employees: From empirics to a roadmap for social dialogue

1. Industrial Relations & Innovative Employees: From empirics to a roadmap for social dialogue Guy Van Gyes Stan De Spiegelaere HIVA-KU Leuven

2. THE EMPIRICAL WORK: VIGOR - Project • Intra- & inter-universitycooperation • KULeuven: • CESO Geert Van Hootegem • HIVA Guy Van Gyes • UGent • Psychology Frederik Anseel • Sociologie Ronan Van Rossem • 5 doctoralstudents + 3 affiliatedresearchers • IWT • 2009 -2013 • www.vigorinnovation.com

3. VIGOR – Project • Feedback & InnovativeWorkBehaviourUgent – Psychologie • Ambidexterity: realigningexploration en exploitationUgent – Psychologie • Innovatie and networks in research teams Ugent – Sociologie • Innovation in SME’sUgent – Sociologie • Architecture of the work environment & creativeness KULeuven - Sociologie • LabourRegulation, worksystems & innovativeworkbehaviourKULeuven – HIVA Labourregulation, worksystems & innovativeworkbehaviour How are labourconditionsrelated to employee innovativeness? ~ Outcomes of industrial relations

4. Policy Context Europa 2020: Competitivity Literature research Employee-level survey (+/- 1000) in 5 industries Innovation LabourMarketFlexibility: Contractual, financial & temporal Vigor HIVA Workingsmarter & better Workingcheaper

5. STI-innovation Science, technology, innovation Science and technology push (fundamental research) Explicit, codified knowledge What and why Experiment Separated process (R&D) DUI-innovation Doing understanding, interacting Demand-pull, practical need Implicit, informal knowledge How and who Experience Integrated business process Two ideal types of innovation Source: Jensen et al.

6. Job Insecurity & InnovativeWorkBehaviour InnovativeWorkBehaviour– Job insecurity • Reduces the work engagement • Reduces the innovativeworkbehaviour • Negativecorrelationwithautonomy Autonomy InnovativeWorkBehaviour Engagement Job Insecurity

7. Financial Rewards & IWB Individual Performance RelatedPay (PRP) • PRP => extrinsicmotivation • Job => intrinsicmotivation • IWB: intrinsic > extrinsic

8. Financial Rewards & IWB CollectiveRewards & IWB • Free-rider • Actualinfluence

9. Conclusion • Labourconditions, industrial relations are important forenabling employees to innovate. • Yet, labourorganisation (job design, group design) is more important • Plus, theyshouldn’tbeanalysed in isolation!

10. … to ideasonstrategicrenewal of workplacesocialdialogue

11. Linkingempirics to state-of-the art • Synthesis • Innovationstudy DG Enterprise of EC: www.cordis.lu • Literaturereviewfor the Flemish Minister of Work • No empirical research, borrowingfromothers • De Spiegelaere, S., Van Gyes, G.(2012). Employee DrivenInnovation and Industrial Relations. In: Høyrup S., Bonnafous-Boucher M., Hasse C., Lotz M., Møller K. (Eds.), Employee-DrivenInnovation: A New Approach, Chapt. 12. Hampshire (UK):PalgraveMacmillan,230-245

12. Roadmap of strategicrenewal • Institutions matter • Role of workplace employee representation • Conceptualdifference • Institutionalchange • Actortransformation

13. 1. Institutions matters ? Double speak from EU/OECD Of course, you’ll have the usual credo To innovate: We need money (= low taxes and costs) and flexibility (=less rules) But there is another story (told by economists, picked up by OECD, EC DG Enterprise) To innovate: We need a system of supporting institutions and rules, because of MARKET FAILURES

14. 2. Key role of direct participation • PEOPLE THINK HARDER: Employee participation creates greater commitment to the business goals. • MORE PEOPLE THINK: greater resources are directed towards the improvement of products and processes. • MORE THINK BETTER extended flow of information creates a greater potential for creativity. • THE ‘TOP’ CHANGES BETTER: provides top management with more information, thereby decreasing the amount of sub-optimal decision making. • THE ‘BOTTOM’ FOLLOWS EASIER: creates a culture where workers are more likely to support decisions.

15. 3. Complementarities direct/indirect Research shows • Direct participation: you’llfindit more in unionised settings • Direct participation: itworksbetter in unionised settings • Direct participation: in non-unionised settings with direct participation, workersseeit as a valuablealternativeforunionrepresentation A strong track needs strong sleepers

16. Employee representation • Roles to play: ‘Voice’ of involved workers • Conflict arbitrator • Bargaining expert • Neutral change agent • Feedback mechanism for management • Conditions • No ‘hold up’ on gains from both sides • Employment security, no downsizing fear • Open, trustworthy management attitude • Necessary competences & information on ‘business’ • High interactivity with rank and file (otherwise alienation)

17. 4. Conceptualdifference: focus on ‘workingsmarter’ not ‘harder’ LESS MORE Workorganisation Labourconditions Trade Union Trade Union Employer Employer Bargaining Dialogue Change management in a business strategygeared to innovation

18. Conceptualdifference

19. 5. On the move to newproductivitycoalitions? • Fordistcompromise: more withless • National sector bargaining as core instrument to distributeproductivitygains => maintainingaggregatenationaldemand • Workplaceinformation and consultationrights: role in labour controle; safe and withinstandards; knowledge to use in higher-levelbargaining => workrules; wagescales; job classifications; health/safetymonitoring

20. 5. On the move to newproductivitycoalitions • Post-fordistcompromise: betternotcheaper • Productivitygainsbasedon ‘added-value’ • Transnationalbargaining to set ‘incomefloor’ to maintainaggregatedemand • Lower-levelbargaining/ variablepay/rewards • Workplacerepresentation: • Knowledge activism (Hall et al., 2006): autonomous collection and strategic application of legal, technical, and medical knowledge as political tools • Job classifying => Job design • Work according to rules => Learning organisation • Safety – Accidents – Environment => Psychosocial – Stress -

21. In the end • Stillaboutgovernance of employmentrelationship ECONOMIC EXCHANGE POWER RELATIONSHIP