manufacturing, the knowledge economy and unions
TRANSCRIPT
8/9/2019 Manufacturing, the knowledge economy and unions
http://slidepdf.com/reader/full/manufacturing-the-knowledge-economy-and-unions 1/16
Manufacturing, the knowledge economy andunions
8/9/2019 Manufacturing, the knowledge economy and unions
http://slidepdf.com/reader/full/manufacturing-the-knowledge-economy-and-unions 2/16
© The W ork Foundation.
Work Foundation Knowledge Economy Programme
The Work Foundation is a UK-based not-for profit organisationdedicated to find the best ways of improving both economic
performance and quality of working life through promoting ³good work´;
Three year knowledge economy by the Work Foundation to run from
April 2006 to April 2009; with a budget of around 2 million euros;
Sponsored by major multinational companies, UK GovernmentDepartments, and UK public agencies;
Key programme objective is to investigate in depth the economic,
industrial and social significance of the knowledge economy and draw
out the policy and practical implications for government, the workplace,
individuals and society; Major current priorities are knowledge work and workers, globalisation
and the knowledge economy, and ³intangible´ investment.
8/9/2019 Manufacturing, the knowledge economy and unions
http://slidepdf.com/reader/full/manufacturing-the-knowledge-economy-and-unions 3/16
© The W ork Foundation.
Defining the knowledge economy
³one in which the generation and exploitation of knowledge has come to play the
predominant part in the creation of wealth. It is not simply about pushing back the frontiers of knowledge; it is also about the most effective use and
exploitation of all types of knowledge in all manner of economic activity´ (DTI
Competitiveness White Paper 1998).
³The weakness or even complete absence, of definition, is actually pervasive in
the literature« this is one of the many imprecisions that make the notion of ³knowledge economy´ so rhetorical rather than analytically useful´ (Keith Smith,
What is the Knowledge Economy? 2002).
³ economic success is increasingly based on upon the effective utilisation of
intangible assets such as knowledge, skills and innovative potential as the key
resource for competitive advantage. The term ³knowledge economy´ is used to
describe this emerging economic structure´ (ESRC, 2005).
8/9/2019 Manufacturing, the knowledge economy and unions
http://slidepdf.com/reader/full/manufacturing-the-knowledge-economy-and-unions 4/16
© The W ork Foundation.
Knowledge based industries (OECD/Eurostat definitions)
High tech manufacturing (pharmaceuticals, aerospace, electronics andcomputers)
Medium tech manufacturing (cars, chemicals, engineering)
Financial services
Telecommunications and some international travel services
Business and high tech services (computer services, R&D, design,accountancy, legal, advertising, consultancy and training services)
Health and education services;
Creative, recreational and cultural services (media, arts, video games)
«.BUT the knowledge economy operates across all sectors, with firms in
so-called ³low tech´ manufacturing industries also trying to move up the
value chain
8/9/2019 Manufacturing, the knowledge economy and unions
http://slidepdf.com/reader/full/manufacturing-the-knowledge-economy-and-unions 5/16
© The W ork Foundation.
UK economy restructures towards knowledge based economic activitySource: Sainsbury Review 2007
8.0%
12.3%
28.4%
39.6%
36.4%
6.2%
9.0%
34.3%
39.9% 40.5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
K
¡
¢ £ ¤ f
¢
¥
t¤
r ¦
£
§
Ot
©
r ¡
¢ £ ¤ f
¢
¥
t¤
r ¦
£
§
K
©
rv¦
¥ ©
Ot
©
r
©
rv¦
¥ ©
A
K
¦
£ ¤ tr
¦
©
1993 2002
8/9/2019 Manufacturing, the knowledge economy and unions
http://slidepdf.com/reader/full/manufacturing-the-knowledge-economy-and-unions 6/16
© The W ork Foundation.
High to medium tech manufacturing across the OECDvalue added as share of GDP. Source: Sainsbury Review 2007
11.9%
8.5%
6.9%
8.0%7.2%
12.1%
9.5%
7.4%
6.2%5.9%
0%
2%
4%
6%
8%
10%
12%
14%
Ger
S
eden Fr
nce UK US
1993 2002
8/9/2019 Manufacturing, the knowledge economy and unions
http://slidepdf.com/reader/full/manufacturing-the-knowledge-economy-and-unions 7/16
© The W ork Foundation.
BUSINESS INVESTMENT IN INTANGIBLE ASSETSratio of investment in tangible assets (machines, buildings) to intangible assets (R&D, software, design and development, human and organisational
capital): Source: HMT Economic Working Paper No.1, October 2007.
8/9/2019 Manufacturing, the knowledge economy and unions
http://slidepdf.com/reader/full/manufacturing-the-knowledge-economy-and-unions 8/16
© The W ork Foundation.
Business in estment in intangibles in 2004 % of GDPNotes:
ther R&D includes copyright and licence fees; mineral exploitation;new products in financial industry, new designs in architecture and engineering; R&D in social
sciences; Brand equity is long term ad
ertising, market research; human capital is firm pro
ided training; organisational capital measured by spending on managementconsultancy and executi
e time spent on organisational tasks. ource: Marrano and Haskell, QMC WP No
ember 2006.
1.7%
1.1%
2.2%
1.6%
2.5%
1.9%
1.7%
2.0%
2.6%2.5%
1.3%
3.1%
0%
1%
1%
2%
2%
3%
3%
4%
oftware cientific R&D ther R&D Brand equity Human capital rganisational
U
U
8/9/2019 Manufacturing, the knowledge economy and unions
http://slidepdf.com/reader/full/manufacturing-the-knowledge-economy-and-unions 9/16
© The W ork Foundation.
Britain world leader in trade in knowledge based ser iceshare of GDP, 2004. knowledge based ser ices defined as all ser ices minus transport and tra el and includes trade in intellectual
property (R&D ser ices, fees, royalties), computer and information ser ices, financial ser ices, business ser ices, creati e and cultural
ser ices (WF estimates from OECD in Figures, 200 and 2006-200 editions: all figures $US at current exchange rates).
0.! "
0.0"
0.0"
#
.! "
-0.$
"
-0.%
"
-2"
- &
"
- &
"
0"
&
"
&
"
2"
2"
# "
# "
! "
! "
UK US' er ( an
)
0 rance Ita l)
Ja 1 an
8/9/2019 Manufacturing, the knowledge economy and unions
http://slidepdf.com/reader/full/manufacturing-the-knowledge-economy-and-unions 10/16
© The W ork Foundation.
Knowledge economy and manufacturing
Manufactur ing if ts to igh tech expor ts
26 2
30 2
15 2
36 2
35 2 34 2
29 2
19 2
0 2
5 2
102
15 2
20 2
252
30 2
35 2
40 2
3
4
3 5 Japan Germany
s h a r e o f t o t a l m a n u f a c u r i n g e
x p o r t s
1992 2003
Manufactur ing expor ts nowle ge services
6
7
our ce:
8
ijzen, Pisu,9
pw ard June 2006)
24@
37@
41@
45@
0@
5@
10@
15@
20@
25@
30@
35@
40@
45@
50@
Busines s
se rvices
Royalties ,
licences
Technical
se rvices
Trade r elated
s h a r e o
f s o m e
A n o w l e d g e s e r v i c e e x p o r t s 1 9 9 7
B
2 0 0 3
8/9/2019 Manufacturing, the knowledge economy and unions
http://slidepdf.com/reader/full/manufacturing-the-knowledge-economy-and-unions 11/16
© The W ork Foundation.
Globalisation, manufacturing and the knowledge economy
Overall, employment in OECD manufacturing still driven more by changes intechnology and domestic markets than increased trade with low wage
manufacturing;
Manufacturing production chains are increasingly fragmented and complex, with
goods and services moving back and forward between higher value added
facilities in OECD economies and lower wage assembly plants in Asia;
Some higher value added functions ± such as R&D ± increasinglyinternationalised (esp EU-US trade) with new spending drawn to non-OECD
locations;
Home market pull still powerful ± 80 per cent of R&D still undertaken in same
market as corporate HQs ± but national bias weakening;
UK R&D may be more vulnerable because much higher share of R&D foreign
funded;
Human capital and scientific excellence seems to be single most important
factor in sustaining UK attractiveness for manufacturing and related R&D
8/9/2019 Manufacturing, the knowledge economy and unions
http://slidepdf.com/reader/full/manufacturing-the-knowledge-economy-and-unions 12/16
© The W ork Foundation.
Growth of knowledge based work 1984-2004knowledge workers defined as managers, professionals and associate professionals; other white collar is personal services, sales and admin andclerical. Source; Working Futures SSDA.
31%
25%
28%
16%
41%
28%
19%
11%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
KnC
D
ledgeD
C r
E er s Ot
F
er D
hite cC
llar SE
illed and semi-skilled manual Unskilled
1984 2004
8/9/2019 Manufacturing, the knowledge economy and unions
http://slidepdf.com/reader/full/manufacturing-the-knowledge-economy-and-unions 13/16
© The W ork Foundation.
More knowledge workers in technology based manufacturingShare of total employment. Knowledge workers defined as managers, professionals, and associate professionals; other white collar are admin, salesand personal services; production workers are skilled and semi-skilled manual; unskilled manual and non-manual in elementary occupations.
26%
2%
0%
%
4%
%
4 %
%
0%
0%
20%
0%
40%
0%
60%
Knowledge workers Other white collar roduction Unskilled
84
2004
8/9/2019 Manufacturing, the knowledge economy and unions
http://slidepdf.com/reader/full/manufacturing-the-knowledge-economy-and-unions 14/16
© The W ork Foundation.
Union density, collective bargaining coverage, and union presence 2005density is hare of employees who say they are a union member; coverage is share of employees who say their pay is affected by collective bargaining; presence is share of non union
employees who say there some union members at their workplace.
2G %
28%
4G %
H I %
2H %
P G
%
0%
G %
H 0%
H G %
20%
2G %
P
0%
P G %
40%
4G %
G
0%
DeQ
sR S T
CU
V eW
aX
eY
W
esceQ
ce
Q
U
Q
a
Q
R U
Q
emb
c U yee s
U
Q
c y
d
s
e
a
f e
g
h
e m
i
p
g
y e e s
a ac
a e sec
8/9/2019 Manufacturing, the knowledge economy and unions
http://slidepdf.com/reader/full/manufacturing-the-knowledge-economy-and-unions 15/16
© The W ork Foundation.
Unionisation within manufacturing 1995-2005
32.7%
36.7%
22.8%
24.8%
27.7%
16.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
All emq
lr
yees Mens
r
me n
1995 2005
8/9/2019 Manufacturing, the knowledge economy and unions
http://slidepdf.com/reader/full/manufacturing-the-knowledge-economy-and-unions 16/16
© The W ork Foundation.
Manufacturing unionisation and the knowledge economy
Unions in modern manufacturing may therefore face severalsimultaneous challenges
o Rebuilding membership among male manual workers
o Appealing to women workers
o Breaking out of existing strongholds into non-organised manufacturing
o Anticipating and responding to the transformation of modernmanufacturing in a knowledge based global economy