The Impact of Labor Flexibility on the Argentine Telecommunications Sector

A case study of the privatization of Argentina's Empresa Nacional de Telecomunicaciones (ENTel) is used to show how economic restructuring affects labor in the high-tech sector. Although President Carlos Menem's neoliberal economic model ended hyperinflation & generated some economic g...

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Published in:Latin American perspectives Vol. 31; no. 4; pp. 32 - 44
Main Authors: Juan Sebastián Montes Cató, Stoller, Richard
Format: Journal Article
Language:English
Published: Thousand Oaks, CA Sage Publications 01-07-2004
SAGE Publications
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Abstract A case study of the privatization of Argentina's Empresa Nacional de Telecomunicaciones (ENTel) is used to show how economic restructuring affects labor in the high-tech sector. Although President Carlos Menem's neoliberal economic model ended hyperinflation & generated some economic growth, it also dramatically increased unemployment & poverty. Exploration of the nature of the privatization process that began in early 1990 points out the emphasis on productivity & competitiveness, as well as the restructuring of production through labor flexibility. Four types of labor flexibility are discussed: numerical flexibility; salary flexibility; technical/organizational flexibility; & labor-time flexibility. Trade union attempts to resist the impact of economic restructuring are examined. The history of collective bargaining in Argentina is reviewed & the negotiations that occurred in the radically transformed setting of the 1990s are analyzed to illustrate how unions were trapped into signing prejudicial agreements. It is concluded that telecommunications unions need to create a new culture of representation with a higher level of legitimacy. 9 References. J. Lindroth
AbstractList A case study of the privatization of Argentina's Empresa Nacional de Telecomunicaciones (ENTel) is used to show how economic restructuring affects labor in the high-tech sector. Although President Carlos Menem's neoliberal economic model ended hyperinflation & generated some economic growth, it also dramatically increased unemployment & poverty. Exploration of the nature of the privatization process that began in early 1990 points out the emphasis on productivity & competitiveness, as well as the restructuring of production through labor flexibility. Four types of labor flexibility are discussed: numerical flexibility; salary flexibility; technical/organizational flexibility; & labor-time flexibility. Trade union attempts to resist the impact of economic restructuring are examined. The history of collective bargaining in Argentina is reviewed & the negotiations that occurred in the radically transformed setting of the 1990s are analyzed to illustrate how unions were trapped into signing prejudicial agreements. It is concluded that telecommunications unions need to create a new culture of representation with a higher level of legitimacy. 9 References. J. Lindroth
Empresa Nacional de Telecommunicaciones was the first important privatization undertaken in Argentina. All those that followed in the early 1990s drew lessons from the telecommunications experience. The government learned how to confront sectors that opposed privatization and, more important, how to relate to union actors after it took place. Its message was, in fact, a double one, repositioning it on the social scene as an actor with the power to realize objectives on behalf of all Argentines but also spelling out the consequences for unions that openly opposed privatization and its accompanying new conditions. In the telecommunications as in the other public services, labor flexibilization was the link between the simultaneous but distinct process of privatization and enterprise transformation. It involved the shaping of working conditions not to the needs of workers and their organizations but to those of the companies, and this made those working conditions, labor relations, and the power of unions more precarious. This article has taken up a paradigmatic case in that the experience of the telecommunications sector was assimilated to other sectors.
Author Stoller, Richard
Juan Sebastián Montes Cató
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SubjectTerms Argentina
Bargaining
Case studies
Collective Bargaining
Economic Change
Economic reform
Employment
High Technology Industries
Labor
Labor law
Labor management relations
Labor market
Labor Relations
Labor unions
Labour relations
Latin America
Neoliberalism
Poverty
Privatization
Productivity
Recent economic history
Regional studies
Salary
Telecommunications
Telecommunications industry
Unemployment
Union contracts
Unions
Working conditions
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