| Abstract | This chapter explores the case of employment rights within a new industrial policy framework. The chapter provides a critical assessment of recent policies based on the (unfounded) notion that (further) deregulation is likely to raise business competitiveness by reducing employment costs. The chapter argues that while such policies are typically predicated on a ‘race to the bottom’, the weakening of employment rights can actually be counterproductive, since it may lead to ‘lower employee commitment, more perfunctory performance and high rates of employee turnover’, thus adversely impacting company performance. The chapter argues there is a need to recognize the long-term mutual interests between employers and employees, and resolve conflicts possibly through greater internal mediation and workplace institutions. The chapter concludes that ‘high road’ industrial strategy might therefore be enhanced by promoting a greater balance in the respective interests of employers and employees. |
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