Mark W. Gilman

The Impact of the National Minimum Wage in Small Firms

The introduction of the National Minimum Wage (NMW) had potentially significant implications for small firms. Orthodox economic theory predicts adverse consequences, though institutional analysis points to potential efficiency as well as fairness effects. Using longitudinal data on 55 firms, this paper examines the impact of the NMW in small firms in clothing manufacture and hotel and catering. Different patterns of adjustment were observed, explained by both size and sector characteristics. Overall, the impact of the NMW was mediated by the informality of employment relations in the small firm.

Once More into the Sunset? Asian Clothing Firms after the National Minimum Wage

Intense global competition and the advent of a raft of employment regulations (notably, the national minimum wage, or NMW) have placed the UK garment industry under severe pressure. The prospects for a significant segment of this sector—ethnic-minority-owned businesses—appear to be extremely gloomy, although earlier predictions of its demise proved to be unduly pessimistic. Drawing on case studies of eighteen firms, we present an examination of longitudinal change in the Asian-dominated West Midlands clothing industry. In particular, the aim is to examine the responses of manufacturers to market and regulatory change (in particular, the NMW). The findings clearly illustrate that the sector is in decline, with firms finding it increasingly difficult to cope with cheap imports, labour shortages, and employment regulations. A range of responses was evident and included firms that resorted to operating in ‘grey’ markets; manufacturers that ‘retrenched’ their operations; ‘work intensification’; and businesses that attempted to move ‘up-market’. Finally, potential policy responses are considered. In particular, the case of the Coventry Clothing Centre is examined. The Centre worked with the grain of employment legislation, and appeared to have experienced some success in encouraging local firms to accommodate the NMW and improve working practices.

Public Policy, the Performance of Firms, and the 'Missing Middle': the case of the Employment Regulations, and a Role for Local Business Networks

The social and economic institutions of a country provide a framework shaping the performance of individual firms. The introduction of the National Minimum Wage (NMW) in the UK provides a key illustration of the weakness of institutions and the ways in which they might be strengthened. Evidence from 81 small firms in three sectors reveals limited responses to the NMW. It points to the potential role of local business networks in filling the gap between individual firms and the governments business support services. Existing evidence on the difficulties which firms have using these services is reviewed, and the example of local support for the Coventry clothing industry is discussed to illustrate the potential role of local networks. The constraints are, however, formidable and if the benefits are to be realized the government needs to pursue a much more active industrial policy.

Performance-related pay in health care

OBJECTIVE Performance-related pay (PRP) has been widely extended within the British public sector in the last 15-20 years, mostly because of pressure from central government. Its penetration in the National Health Service (NHS) has not so far been very deep but it has been sufficient to permit preliminary judgements on its likely impact. METHODS Review of published accounts of the extent of use of PRP in the NHS and its impact, plus two case studies. RESULTS There have been few rigorous studies reported. PRP has been introduced for a variety of reasons: an incentive to motivate staff; to enhance staff recruitment and retention; to signal a change in organizational culture; to control staff costs; to reduce the power of trades unions; to reinforce staff development policies. Very few NHS provider organizations have implemented PRP. Despite this, senior managers see real merit in it in improving staff performance and delivering a clear message about the importance of organizational performance. Employees are much more skeptical, seeing PRP as having no effect or being detrimental. CONCLUSIONS PRP has had, at most, only a very modest beneficial impact in the British NHS. In the absence of better evidence, it would be sensible for government to continue to encourage local initiatives rather than propose a mandatory national scheme. It would also be prudent to subject local schemes to rigorous evaluation.

University–industry linkages in the UK: emerging themes and ‘unanswered’ questions

With university–industry engagement forming an integral part of the policy agenda, this paper underlines current issues and emerging themes in the dedicated literature. It utilises a comprehensive literature review, based on evidence from peer-reviewed journals/public reports published after 2005 in the UK. The paper integrates a wide range of disparate studies on university–industry knowledge transfer patterns, determinants and impacts, and offers a panorama that could be useful to inform on the variety of issues underlying knowledge transfer. Given the importance/complexity of university–industry interactions, a comprehensive study fills an existing gap. Second, due to its focus on current issues, the study opens the way to reflections and debates on critically ‘unanswered’ questions: how to deal with diversity/heterogeneity? How to increase quality in supply/quantity in demand for knowledge? How to increase impact on academics, universities, firms, economy and society?

Modernising the Workplace? Labour's Employee Relations Agenda

Discusses the employee relations agenda of the Labour Party in Great Britain. Impact of National Minimum Wage and the Working Time Regulations