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VW’s modular system and workers’ organization in Resende, Brazil

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  • José Ricardo Ramalho
  • Marco Aurélio Santana

Abstract

This article discusses the changes taking place in the Brazilian vehicle assembly industry of the 1990s with particular reference to the state of Rio de Janeiro, Brazil. It focuses upon a case study of Volkswagen’s bus and truck assembly plant, opened in 1996, and its workers at Resende. The experience of the `modular system’ of production has been presented as a major development in vehicle assembly. The article analyses the originality of VW’s new form of organization of production and the strategy of the firm to look for localities with weak labour unionism. It also argues that despite the difficulties the local union faced in its attempts to intervene in the process of wage bargaining and to influence the management of aspects of production, there has been a rapid process of mobilizing the new workers for effective labour union action. L’article traite des transformations intervenues dans l’industrie automobile brésilienne dans les années quatre–vingt dix, avec une attention particulière pour l’Etat de Rio de Janeiro. Il s’attache à l’usine d’assemblage que Volkswagen ouverte en 1996 à Resende pour y assembler des véhicules industriels. Cette expérience de production modulaire a été présentée comme une innovation organisationnelle majeure dans l’industrie automobile mondiale. Le texte met en évidence les spécificités de la nouvelle organisation de la production et la stratégie de localisation de la firme fondée sur la recherche d’espaces d’implantation à faible activisme syndical. Il montre que malgré sa faiblesse initiale et une intervention réduite dans la négociation salariale et l’organisation du travail, une mobilisation rapide des nouveaux travailleurs a permis la reconstitution d’un mouvement syndical actif.

Suggested Citation

  • José Ricardo Ramalho & Marco Aurélio Santana, 2002. "VW’s modular system and workers’ organization in Resende, Brazil," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 26(4), pages 756-766, December.
  • Handle: RePEc:bla:ijurrs:v:26:y:2002:i:4:p:756-766
    DOI: 10.1111/1468-2427.00416
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    References listed on IDEAS

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    1. Vincent Frigant & Yannick Lung, 2002. "Geographical proximity and supplying relationships in modular production," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 26(4), pages 742-755, December.
    2. Michel Freyssenet & Yannick Lung, 2000. "Between Globalisation and Regionalisation: What is the Future of the Motor Industry?," Palgrave Macmillan Books, in: John Humphrey & Yveline Lecler & Mario Sergio Salerno (ed.), Global Strategies and Local Realities, chapter 4, pages 72-94, Palgrave Macmillan.
    3. Silvio R.I. Pires, 2002. "New productive systems in the automotive industry: the current situation of three innovative plants in Brazil," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 2(1), pages 46-62.
    4. Shapiro,Helen, 1994. "Engines of Growth," Cambridge Books, Cambridge University Press, number 9780521416405, September.
    5. André Rodríguez‐Pose & Glauco Arbix, 2001. "Strategies of Waste: Bidding Wars in the Brazilian Automobile Sector," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 25(1), pages 134-154, March.
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