The converging divergence of labor relations in automobile industry: the case of China

Purpose – The purpose of this paper is to investigate recent labor unrest in China's automobile industry and the implications for the debate on the future of the country's labor relations and cost competitiveness. Design/methodology/approach – Using data between 1999 and 2007, the authors examine how differences in work organizations in China, Germany, Japan and the USA affect wages in the automobile industry. Findings – It is found that market forces play a more prominent role in Germany and the USA than in China and Japan and the difference is attributed to cultural, economic, political, and regulatory factors in each country. Originality/value – This paper is one of the first that uses systematic data to conduct comparative analysis of labor relations in the automobile industry.