The Contracting-Out of Local Government Services: Its Impact on Jobs, Conditions of Service and Labour Markets

Abstract

This chapter discusses employment and labour market change as cause and as consequence of the introduction of market forces into local government services. In doing so it seeks to shed a particular light on the evolution of local governance processes, and also considers the adaptability of employment patterns and labour market systems in response to the commercialisation of municipal services. In examining the labour market impacts of the restructuring of municipal services the research has attempted to ascertain the extent of changes in employment patterns and in the bargaining position of the workforce. More specifically, the investigation has sought to examine ‘dualism’ within the workforce in the creation of core groups and peripheral groups of employees. The literature on the subject to date has described a growing polarisation within the local authority workforce and the related loss of trade union bargaining strength. In the first instance, the position of trade unions is said to have been severely weakened, either in terms of their bargaining capacity or their membership base (Walker, 1987; Walsh and Davis, 1993; Deakin and Walsh, 1994; Foster, 1993; and Walsh, 1995). This is explained as an outcome of the pursuit of flexible labour markets and the polarisation of the workforce that allegedly ensues.