Social dialogue and recession in the automotive sector

An estimated 14 million workers across Europe rely on the automotive sector for work. When the current economic downturn began to affect vehicle production, profound changes were already underway in the sector, triggered by the emergence of new markets and the search for lower production and labour costs. This report seeks to illuminate the effects of recession and restructuring on social dialogue within the automotive sector in eight EU countries. The information collected during this study seems to suggest that – so far – employment levels have been cushioned against the effects of the economic downturn by a combination of public schemes to cope with short-time decreases in demand. Good industrial relations have provided important input to adjustment strategies, complementing and enhancing the protection offered by legal frameworks.