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Pay progression in routinised service sector work: navigating the internal labour market in a fast food multinational company

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  • Peter Butler
  • Anita Hammer

Abstract

The United Kingdom's widespread use of low‐skill, low‐paid employment has been well documented. It has been argued internal labour markets (ILMs) benefit such workers, affording them with opportunities for progression. Relatively little is known, however, about the impact of ILMs on entry level workers undertaking routinised service sector work. Drawing on qualitative data, this article explores the prospects on offer in a market leading, fast food multinational company. Potential enabling features include on‐the‐job training, a transparent and integrated pay structure and a professed culture of progression. Occupational movements to positions above the low‐pay threshold are, however, relatively rare. We conjecture this contradiction is the result of the business context in which the firm operates. The findings suggest that in sectors where price leadership strategies dominate, escape from low pay is likely to be exceptional, even within large organisations featuring some of the classic characteristics of ‘pure’ or strong ILMs.

Suggested Citation

  • Peter Butler & Anita Hammer, 2020. "Pay progression in routinised service sector work: navigating the internal labour market in a fast food multinational company," Industrial Relations Journal, Wiley Blackwell, vol. 51(4), pages 351-371, July.
    • Handle: RePEc:bla:indrel:v:51:y:2020:i:4:p:351-371
    DOI: 10.1111/irj.12302
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    References listed on IDEAS

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    Cited by:

    1. Damian Grimshaw & Marcela Miozzo, 2021. "Human Capital and productivity: a call for new interdisciplinary research," Working Papers 006, The Productivity Institute.

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