Abstract
Two case studies, which are reported in this paper, are part of a wider study comparing matched Swedish and Australian plants in the automotive components industry. The study examined productivity levels in each of the cases and sought to determine which variables were significant in explaining differences between the performance of the two plants. The Swedish plant achieved higher levels of both productivity and quality than its Australian counterpart. This appeared to be related not only to higher levels of investment in technology, but also to a greater emphasis on skills development and work organization which emphasized teamwork and consultation. Not surprisingly, there was a high level of cooperation between the workforce, unions and management in the Swedish case. By contrast, the Australian plant was caught in a vicious cycle of low productivity and quality, poor industrial relations and a declining market share. As a consequence, it will be hard pressed to survive the current recession without radical changes in its operations.
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