Skip to main content

The Domestic Regulation of Transnational Labour Markets: EU Enlargement and the Politics of Labour Migration in Switzerland and Ireland

  • Chapter
  • First Online:

The entry of 10 new eastern countries in the European Union on 1 May 2004 raised several debates in Europe regarding the maintenance of national wage and labour standards in the EU 15. The significant wage differentials between ‘old’ and ‘new’ member states were believed to potentially give rise to important migration flows that individual member states would not be able to control if the rules of the Single Market, and especially freedom of movement, were directly extended to the EU 10. Among ‘old’ member states, many governments were especially afraid that Eastern European workers, once they would have gained access to the Single European Market and its four freedoms, would move massively to more affluent countries and exert great pressure on wages, labour standards and welfare states (Boeri and Brücker 2000; Kvist 2004). This was believed to be possible either through independent migration or through the use of posted workers from low-wage countries (Menz 2005). The fear of the ‘Polish plumber’ raised during the ratification of the European Constitution in France in 2005 mainly revolved around this latter issue.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Notes

  1. 1.

     Ireland, along with the UK and the USA, is traditionally classified among liberal market economies. However, its patterns of economic governance diverge significantly from these countries in the sense that coordinated economic governance (centralized wage bargaining, institutionalized involvement of social partners in policymaking), such as that encountered in other small European states, prevails (Hardiman 2002, 2006).

  2. 2.

     A high-profile example of this issue was the case of Laval, a Latvian company contracted to renovate a school in Sweden. Laval posted its Latvian workers to Sweden and reportedly paid them 40% less than the terms set by the collective agreement for the construction sector in Sweden. Concerned with issues of social dumping, Swedish trade unions prompted Laval to comply with the local terms and conditions of employment laid down in the collective agreement, which was refused by Laval. Following industrial action led by trade unions, the case ended up in the European court of Justice which ruled that Swedish unions had conducted illegal action that distorted competition in the EU, thereby causing concerns with regard to social dumping (EIRO 2008).

  3. 3.

     Whereas GDP pps accounted for 139% and 130% of the EU 25 average in Ireland and Switzerland, respectively, it accounted for 47% and 43% in Poland and Latvia (Eurostat 2005).

  4. 4.

     Besides free movement of workers, the other bilaterals agreements concerned road transport, technical barriers to trade, public procurement markets, agriculture, civil aviation and research. See Dupont and Sciarini (2006).

  5. 5.

     These included the taxation of savings, cooperation on fight against fraud, adhesion to Schengen/Dublin, processed agricultural products, media, education, pensions, environment and statistics. See Afonso and Maggetti (2006).

  6. 6.

     It is also particularly interesting to note that the number of extended collective labour agreement has increased as a result of labour market opening: even in economic sectors in which no extended collective labour agreement existed and in which companies were weakly organized in employer associations, companies have organized in order to make local rules enforceable vis-à-vis foreign companies and protect local standards (Oesch 2007).

References

  • Afonso, A. (2007). “Policy Change and the Politics of Expertise: Economic Ideas and Immigration Control Reforms in Switzerland”. Swiss Political Science Review 13 (1): 1–38.

    Article  Google Scholar 

  • Afonso, A. and M. Maggetti (2006). “Bilaterals 2: Reaching the Limits of the Swiss Third Way?” In Church, C., ed., Switzerland and the European Union. London: Routledge: 215–233.

    Google Scholar 

  • Baccaro, L. and M. Simoni (2004). The Irish Social Partnership and the “Celtic Tiger” Phenomenon. Geneva: International Institute for Labour Studies, DP/154.

    Google Scholar 

  • Boeri, T. and H. Brücker, eds (2000). The Impact of Eastern Enlargement on Employment and Labour Markets in the EU Member States. Berlin and Milano: European integration consortium DIW, CEPR, FIEF, IAS, IGIER.

    Google Scholar 

  • Bonoli, G. and A. Mach (2000). “Switzerland: Adjustment Politics Within Institutional Constraints”. In Scharpf, F. W. and V. Schmidt, eds., Welfare and Work in the Open Economy. Oxford: Oxford University Press: 131–173.

    Google Scholar 

  • Cornelius, W. A. and M. Rosenblum (2005). “Immigration and Politics”. Annual Review of Political Science 8: 99–119.

    Article  Google Scholar 

  • Crouch, C. (1993). Industrial Relations and European State Traditions. Oxford: Clarendon Press.

    Google Scholar 

  • Department of the Taoiseach (2006). Towards 2016: Ten-Year Framework Social Partnership Agreement 2006–2016. Dublin: Stationery Office.

    Google Scholar 

  • Djelic, M.-L. and K. Sahlin-Andersson (2006). Transnational Governance: Institutional Dynamics of Regulation. Cambridge, UK; New York: Cambridge University Press.

    Book  Google Scholar 

  • Doyle, N., G. Hughes, and E. Wadensjö (2006). Freedom of Movement for Workers from Central and Eastern Europe: Experiences in Ireland and Sweden. Stockholm: Swedish Institute for European Policy Studies.

    Google Scholar 

  • Dupont, C. and P. Sciarini (2006). “Back to the future: Bilaterals 1”. In Church, C., ed., Switzerland and the European Union. London: Routledge: 2002–214.

    Google Scholar 

  • EIRO (2005) “Union Density Declines to Around a Third”. European Industrial Relations Observatory Online (10) available at http://www/eurofound.europa.eu/eiro/(accessed 07 July 2008).

  • EIRO (2008). “Unions Fear ECJ Ruling in Laval Case Could Lead to Social Dumping”. European Industrial Relations Observatory Online (1) available at http://www/eurofound.europa.eu/eiro/(accessed 07 July 2008).

  • European Science Foundation (2006) “Globalisation, Transnationalisation and Increasing Uncertainty in European Countries”, available at http://www.transeurope-project.org/page.php?id=300(accessed 02 June 2008).

  • Eurostat (2005). GDP per capita Varied by One to Five Across the EU 25 Member States (press release). Luxembourg: Eurostat.

    Google Scholar 

  • Fischer, A., S. Nicolet, and P. Sciarini (2002). “Europeanisation of Non-EU Countries: The Case of Swiss Immigration Policy Towards the EU”. West European Politics 25 (4): 143–170.

    Article  Google Scholar 

  • Fluder, R. and B. Hotz-Hart (1998). “Switzerland: Still as Smooth as Clockwork?” Ferner and Hyman (eds) Changing Industrial Relations in Europe 262–282.

    Google Scholar 

  • Gajewska, K. (2006). “Restrictions in Labor Free Movement after the EU-Enlargement 2004: Explaining Variation Among Countries in the Context of Elites’ Strategies Towards the Radical Right”. Comparative European Politics 4 (4): 379–398.

    Article  Google Scholar 

  • George, A. L. and A. Bennett (2005). Case Studies and Theory Development in the Social Sciences. Cambridge, MA: MIT Press.

    Google Scholar 

  • Hall, P. A. and R. C. Taylor (1996). “ Political Science and the Three New Institutionalisms”. Political Studies 44 (5): 936–957.

    Article  Google Scholar 

  • Hardiman, N. (2002). “From Conflict to Co-ordination: Economic Governance and Political Innovation in Ireland”. West European Politics 25 (4): 1–24.

    Article  Google Scholar 

  • Hardiman, N. (2006). “Politics and Social Partnership: Flexible Network Governance”. The Economic and Social Review 37 (3): 343–374.

    Google Scholar 

  • Immergut, E. (1997). “The Normative Roots of the New Institutionalism: Historical Institutionalism and Comparative Policy Studies”. In Benz, A. and W. Seibel, eds, Theorieentwicklung in der Politikwissenschaft: Eine Zwischenbilanz. Baden-Baden: Nomos.

    Google Scholar 

  • Katzenstein, P. (1985). Small States in World Markets: Industrial Policy in Europe. Ithaca: Cornell University Press.

    Google Scholar 

  • Kvist, J. (2004). “Does EU Enlargement Start a Race to the Bottom? Strategic Interaction among EU Member States in Social Policy”. Journal of European Social Policy 14 (3): 301.

    Article  Google Scholar 

  • Mach, A., S. Haeusermann, and I. Papadopoulos (2004). “Social Policy Making under Strain in Switzerland”. Swiss Political Science Review 10 (2): 33–59.

    Google Scholar 

  • Menz, G. (2002). “Patterns in EU Labour Immigration Policy: National Initiatives and European Responses”. Journal of Ethnic and Migration Studies 28 (4): 723–742.

    Article  Google Scholar 

  • Menz, G. (2005). Varieties of Capitalism and Europeanization: National Response Strategies to the Single European Market: Oxford: Oxford University Press.

    Google Scholar 

  • Milner, H. V. and R. O. Keohane (1996). “Internationalization and Domestic Politics: An Introduction”. In Milner, H. V. and R. O. Keohane, eds, Internationalization and Domestic Politics. Cambridge: Cambridge University Press: 3–24.

    Chapter  Google Scholar 

  • National Economic and Social Council (2006). Migration Policy. Dublin: National Economic and Social Council.

    Google Scholar 

  • Oesch, D. (2007). “Weniger Koordination, mehr Markt? Kollektive Arbeitsbeziehungen und Neokorporatismus in der Schweiz seit 1990“. Swiss Political Science Review 13 (3): 337–368.

    Article  Google Scholar 

  • Orenstein, M. and H.-P. Schmitz (2006). “The New Transnationalism and Comparative Politics”. Comparative Politics 38 (4).

    Google Scholar 

  • Papadopoulos, I. (2001). “How Does Direct Democracy Matter? The Impact of Referendum Votes on Politics and Policy-Making”. In Lane, J.-E., ed., The Swiss Labyrinth: Institutions, Outcomes and Redesign. London: Frank Cass: 35–58.

    Google Scholar 

  • Polanyi, K. (1957). The Great Transformation. Boston: Beacon Press.

    Google Scholar 

  • Scharpf, F. W. (1999). Governing in Europe: Effective and Democratic? Oxford: Oxford University Press.

    Book  Google Scholar 

  • Smith, N. J.-A. (2005). Showcasing Globalisation?: The Political Economy of the Irish Republic. Manchester: Manchester University Press.

    Google Scholar 

  • Wallace, J., P. Gunnigle, and G. McMahon (2004). Industrial Relation in Ireland –Third Edition. Dublin: Gill & McMillan.

    Google Scholar 

Download references

Acknowledgments

The author would like to thank the editors and contributors of this volume, as well as André Mach and Yannis Papadopoulos for their helpful comments on earlier drafts of this chapter. Funding by the Swiss National for Scientific Research is gratefully acknowledged.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Alexandre Afonso .

Editor information

Editors and Affiliations

Appendices

List of Interviews

Switzerland

  1. 1.

    Member of Direction Council, Swiss Employers Union, Bern, 11.05.2007;

  2. 2.

    Central Secretary, Swiss Federation of Trade Unions, Bern, 03.04.07;

  3. 3.

    Former Federal Councillor and Head of Federal Department for Economy, Fribourg, 02.04.07;

  4. 4.

    Vice Director of the Swiss Union of Crafts and SMES, Bern, 26.03.07;

  5. 5.

    President of Special Commission “Flanking Measures” of National Council, Social Democratic Party, Bern, 20.03.07;

  6. 6.

    President, Swiss Trade Union Federation, Bern, 20.03.07;

  7. 7.

    Former Head of Sector Labour Relations, State Secretariat for Economics, Neuchatel, 09.03.07;

  8. 8.

    MP Council of States, Member of special commission “flanking measures”, Social Democratic Party, Geneva, 01.03.07;

Ireland

  1. 9.

    Social Policy Analyst, National Economic and Social Council, Dublin, 17.01.08;

  2. 10.

    Secretary General, Department of Enterprise, Trade and Employment, Dublin, 29.01.08;

  3. 11.

    Social Affairs Officer, Irish Congress of Trade Unions, Dublin, 25.01.08;

  4. 12.

    Director of Industrial Relations and Research Officer (joint interview), Construction Industry Federation, Dublin, 08.02.2008;

  5. 13.

    Senior Social Policy Executive, Irish Business and Employers Confederation, Dublin, 28.01.2008;

  6. 14.

    Legislation Policy Officer, Irish Congress of Trade Unions, Dublin, 21.01.2008;

  7. 15.

    Regional Secretary – Dublin Region, Services, Industrial, Professional & Technical Union (SIPTU), Dublin, 07.02.2008;

  8. 16.

    Director of Industrial Relations, Irish Business and Employers Confederation, Dublin, 05.02.2008;

  9. 17.

    Director, National Economic and Social Council, Dublin, 18.01.2008.

Rights and permissions

Reprints and permissions

Copyright information

© 2009 Springer Science+Business Media, LLC

About this chapter

Cite this chapter

Afonso, A. (2009). The Domestic Regulation of Transnational Labour Markets: EU Enlargement and the Politics of Labour Migration in Switzerland and Ireland. In: Bruszt, L., Holzhacker, R. (eds) The Transnationalization of Economies, States, and Civil Societies. Springer, New York, NY. https://doi.org/10.1007/978-0-387-89339-6_4

Download citation

Publish with us

Policies and ethics