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68 recompensa voluntaria a los que se esmeraban en merecer sus favores, en vez de imponerse

In document John Stuart Mill PRÓLOGO (página 64-66)

CAPÍTULO XX

68 recompensa voluntaria a los que se esmeraban en merecer sus favores, en vez de imponerse

have low de facto and de jure tenure. In the U.K. some firms offer contracts of 15 hours per week to casual staff with a stipulation that they must be available for up to 19 hours extra. In other cases 'zero hour' contracts specify no minimum hours but demand their 'employees' be on call at short notice on pain of dismissal (Totterdill,

1989: 5).

In sales terms, firms with multiple small outlets been even more successful than the department store in the twentieth century. This has been made possible by an increase in the income of the mass of the population. Multiples are characterised by cheap goods, standardised presentation and buying procedure, a greater variety of goods, greater self service and lack of pressure to buy. Unskilled and low paid labour is employed in greater quantities than in the independent retailers.

In contrast to the growth of multiple chains comprising small stores another trend is towards increasingly large discount stores. The discounter is typified by the supermarket and more recently by 'showrooms' selling bulky goods from low rental premises. The discounter is a large retailer which competes by offering a low level of service or customer comfort in return for lower prices. The large scale operations mean that a much greater division of labour is possible which reduces the cost of wages. The first step in this trend is the generation of economies through self-service and by increasing the scale of operations. The 1980s has seen developments in the large discount sector with the emergence of the hypermarket (known in the UK as the superstore). Hypermarkets emerged first in France and have since spread in both OECD and non-OECD economies. Hypermarkets are built on large areas of land and sell a variety of goods (Dawson, Findlay and Sparks, 1988). In the U.K. a study was conducted in 1980 into the employment consequences of hypennarkets (Sparks, 1983). In this study Sparks found that the typical hypermarket in Britain consisted of about 3000 square metres of selling space and employed between 201 and 207 workers. Of these between 140 and 145 would be women and between 107 and 111 of all workers would be full-time (Sparks, 1983: 44).

Within the hypermarkets studied. Sparks found that the proportion of the workforce which was female rose with the size of the store, as did the proportion of part-time workers. Part-time sales workers outnumbered full-time sales workers in all hypermarkets, ranging from 53.5% to 58.3% of the sales force. The proportion of women and part-time workers varied in different firms: between 70 and 79.5% of the salesforce were women, and between 36.2 and 52.8% of the sales jobs were part-time (1982a, 1982b). A more recent paper suggests that the hypermarket chain with the highest proportion of full-time male employees in 1980 has since restructured its

workforce to include more part-time workers (Dawson et. al. 1988). An earlier study of employment in supermarkets in the U.S. in the 1950s also showed that the proportion of pan-time employees increased as outlets became larger (Zimmerman, 1955: 177).

A shortage of in-town sites at reasonable prices means that hypermarkets tend to be located on out-of-town sites. This changes the pool of labour which is available. Dawson, Findlay and Sparks (1988) suggest that out-of-town hypermarkets tend to employ people for shorter shifts on average. There are more employees working for between eight and thirty hours, than there are in the in-town stores. This is probably due to employee ease of access. Further, such out of town stores tend to employ more married women and fewer school-leavers (Dawson, Findlay and Sparks, 1988). Another study in the UK suggests that hypermarkets employ more workers in non-sales capacities, such as in food processing, thus altering the occupational structure of employment in retailing (Cole, 1983).

Despite the growth of large scale retailing, the small scale retailing sector has persisted in most countries. In some industries the impetus to increased size comes from the ability to achieve mass producdon when the unit of production increases. In the retail industry this is not so. While large retailers can reap benefits by gaining favourable terms when buying, the actual unit through which distribution takes place can remain small. This is due to the nature of the industry, which is to distribute goods to convenient places for customers to buy them. Thus it is possible for concentration in the retail industry to result in no change to the number or size of outlets at all. This means that small retailers can successfully compete with large retailers by fomiing voluntary chains and combined buying groups. In practice the size of the retail unit has increased. Yet even with the emergence of large scale retailing and a shake-out of small firms in the 198()s, small

shops survive and many of these remain 'independently' owned.

The important aspect of small scale retailing in relation to tenure is that small scale retailing is not characterised by de jure tenure and internal labour markets. Rather it is characterised by proprietors and their assistants. In the past such assistants tended to be kin to the proprietor or to be employed as apprentices thereby experiencing a high level of de facto tenure. It is not clear to what extent this type of employment relationship is typical of the small business sector now.

The 1973 OECD report argued that small retail shops had been able to keep going largely as a result of voluntary buying organisations, which had offset some of the comparative advantages of large fimis (OECD, 1973a: 27). Despite this the share of the sector is

falling. In 1950 in the U.K. there were 450,000 independent retail shops, by 1980 there were less than half of this number ; 220,000. (Ward, 1987a: 275).

As in other times of uncertain demand, the 1980s have favoured larger retailers who can ride out a sharp fall in income in the short temi. Tactics of large retailers in the 1980s to expand market share in a contracting market include large building programs, refurbishment and the introduction of new services such as delivery. The large retailers have also attempted to cut operating costs through the introduction of information technology and through the use of part-time labour (Brodie, 1986: 181-5). In the latter part o f the 1980s takeovers and mergers increased further concentrating the industry (Totterdill, 1989). As well as domestic takeovers, internationalisation of retailing has occurred in the latter half o f this century, expanding large scale retailing still further (Salmon and Tordjman 1989; Burt, 1986; Hollander, 1970).

Small retailers may be able to coordinate their operations to take advantage of the need for flexibility in retailing. One way in which they can do this is through the fomiation of Value A d d i n g Partnerships |VAPsJ (Johnston and Lawrence, 1988: 94-95). VAPs are chains of independent shops which act collectively in matters where larger buying power is in their interests. They can engage in exercises which benefit them but which would be too expensive for any one of the fimis on their own. Developments in information technology have facilitated the growth of network firms in a number of industries including retailing (Antonelli, 1988: 13-26). Information is collected about products sold by members and about competitors or potential competitors. At one level such partnerships enhance the ability of the small retailer to compete with larger firms and so must be seen as the reverse of large-scale retailing. However, the strength of the Value A d d i n g Partnership is that firms cooperate to ensure that each partner operates profitably. Firms do not compete for custom, indeed, the infomiation available to small retailers through Value Adding Partnerships may include informadon on where to site a shop so that competition is not entered into with other members of the Partnership. V A P s are therefore not unambiguously an instance of small scale retailing and can not be seen as 'independent' in a competitive sense.

Another development which is a hybrid of small and large scale retailing is franchising. Franchising is a system of distribution which involves the granting of a right, or series of rights, by one party (the franchisor) to another (the franchisee). This right governs the freedom of the franchisee to sell a product or service, or use a brand name or process developed by the franchisor. Each particular relationship between a franchisor and franchisee is fomialised by a written contract which specifies the rights and duties of each party to the contract. The two aspects of the franchise relationship which

distinguish it from a licence or agency arrangement are the continuing nature o f the relationship and the standardisation of operations and image (Rosenberg and Bedell,

1969: 41; Pels, 1969: 4-5).

Franchising was, until the 1960's, associated with the United States and by 1987 franchised operations accounted for an estimated 33% of all retail sales in the U.S. (McCosker, 1987: 7). In the 1950s franchising spread to a wide range of industries, which had previously not been characterised by franchising. Expansion of franchising has also occurred in Canada (where sales represent 33% of all retail sales) and in E u r o p e ( K a y n a k , 1988: 45-9). Research conducted for the British Franchise Association suggests that by 1985 there were 12,700 franchised businesses in the U K e m p l o y i n g 110,000 workers ( L a b o u r Research A u g . 1986). The growth of the franchise sector is particularly significant in the light of the high numbers o f bankruptcies in the independent retail sector (Kaynak, 1988: 49).

Three main forms of franchising have emerged: the franchising of the entire business operation, with specific decor and trademark and a blueprint of how to conduct the business, often referred to as 'business fomiat franchising'; the franchising of a product, often to already established businesses, where an exclusive right to sell the product in a particular market is sold; and manufacturing franchising, where technical infomiation and or ingredients are sold to manufacturers who are then able to use a trade name on their product (Mendelsohn, 1985: 1-11). An example of manufacturing franchising is Pepsi Cola. (McCosker, 1989: 4). Business fomiat franchising is the form most suited to retailing, and is the type expanding most rapidly in that industry. O n e of the characteristics o f this form is that each of the outlets carries the same identity, and operational control is exerted to ensure that the the identity is not threatened. Each particular relationship between a franchisor and franchisee is formalised by a contract. New information technologies allows for the emergence of networks and franchise chains in most types of retail operations. Franchising is most suited to operations where face-to-face contact with customers is important, where the product sold is service intensive (such as fast food and hairdressing) or where relationships with suppliers require involved personnel on site. Under these conditions internationalisation in retailing is likely to take the fomi of franchising or other agency relationships.

O n e manifestation of the increase in franchising is that 'shops-within-shops' have re- emerged in recent years. Shops-within-shops are areas of department and variety stores which have been leased to franchise chains (Burt, 1989: 40). The lessee operates independently of the host shop in matters such as hiring of staff and stocking of goods.

O f t e n the lessee is a m a n u f a c t u r e r which seeks to establish a chain of outlets for its products without taking the risk of establishing their own chain of shops.

b. N o n - s h o p retailing

Recent technological changes may lead to an increase in non-personal non-shop retailing in O E C D countries, with the associated result of decreasing sales staff and increasing clerical and delivery staff. D o w n s w i n g s in the e c o n o m y , or high rates of immigration, which cause an increase in levels of unemployment also periodically increase hawking because of its low barriers to entry (Alexander, 1970; Mai and Buchholt, 1987: 108; M c G e e , 1 9 7 3 : 175; G r e e n s b e r g et. al. 1980). Non-shop retailing is labour intensive, i n v o l v e s i r r e g u l a r h o u r s of w o r k , d o e s not g e n e r a t e r e g u l a r w a g e s , i n v o l v e s considerable skills in negotiating prices with both suppliers and customers, involves credit management using personal networks and requires negligible capital or advertising ( M c G e e , 1973: 7; P P A J , undated: 1152-3). By definition peddling and hawking are casual and intennittent activities.

There is little published material on either the incidence or labour process of non-shop retailing. While c o m p r e h e n s i v e data are not available, non-shop retailing in O E C D economies appears to be increasing its market share. The growth appears to be greatest in the f o r m of network retailing practiced by such companies as A m w a y , Tupperware and Avon. But mail order sales are also booming (Dalley, 1982: 62-67). Much of the work involved in network retailing is concerned with the maintenance of a large network of social relations, since selling is usually done to f r i e n d s and friends of friends (Roberts, 1978: 128; T a y l o r 1978; Biggart, 1989). Network selling appears to have gained impetus f r o m information technology, which has enabled central management to operate a larger network than was possible previously (Antonelli, 1988: 13-26).

The importance of network retailing is indicated by figures f r o m the U.S. which show that 5% of the American labour force were members of direct selling networks in 1984. More than 25% of households were involved in direct selling during that year (Biggart, 1989: 2-3). M a n y people e m p l o y e d in networks have no de Jure ]oh tenure. An e x a m p l e is provide by the A m w a y corporation. This c o m p a n y began in the United States in 1959. By 1990 it had one million distributors working world-wide selling A m w a y products. T h e s e distributors operate as agents outside of an e m p l o y m e n t relationship. As well as agents A m w a y e m p l o y s 8,000 people directly world-wide. This includes technical managers in each country where the company operates. These m a n a g e r s monitor quality and supervise distribution and administrative staff. A m w a y also e m p l o y s 2 0 0 research and development staff, in the United States, who develop

new A m w a y products. Another network in which de jure job tenure is low is Home Interiors and Gifts, which in 1984 had 30,000 distributors but only 35 managers (Biggart, 1989: 5).

While the rate of turnover of distributors is very high, dismissal is infrequent. In Amway, the qualifications to become an 'independent' distributor (and to remain one) are to buy a kit of literature, forms and information, to purchase products from Amway for re-sale and to abide by the 'Code of Ethics' and the 'Rules of Conduct'. Experienced distributors who have introduced a number of new distributors to the firm, and who continue to sell a minimum quantity of products in a year, are given training and responsibilities for new distributors. These distributors are treated as if an extended relationship with the firm is anticipated. The level of investment by the company in these higher level sales people indicates that the de facto tenure for successful distributors may be quite high (Amway 1990; Green and D'Aiuto, 1977).

In a survey conducted by Johnston in 1987, of Amway distributors in the U.S. it was noted that nearly half had been with the firm for more than five years. Many of the distributors, however, had other full-time jobs and sold Amway products intermittently (Johnston, 1987: 148). Ironically, the looseness of the connection between distributors and the organisation leads some distributors to feel that employment in direct selling offers a great deal of security. Quotes from two direct selling employees illustrates the point:

"I don't ever want to think of something like losing my husband or my house or my finances, but if you were to strip me of everything that I have and put me on the street, I could survive. That is what Mary Kay has done for me, and to me that is priceless." (quoted in Biggart, 1989: 63).

"I have bought a division under Avacare for my daughter and have it on ice because she's only twenty. But 1 figured when she gets older she will have that division. I have sponsored my son into another multi-level marketing company, and I'm helping him develop that business....What I'm doing with my children is much more than earning money [for them]. Its teaching them. They will be totally self sufficient by the time they get married. They will never go on welfare. That would just break my heart." (quoted in Biggart, 1989: 83).

The fact that these two interviewees are women is no accident. It is probably true that: "(t)he greatest threat to direct selling is the improvement of working conditions for women in firms" (direct selling company executive quoted in Biggart, 1989: 11). The lack of security for many women in formal employment in the labour market in conjunction with the feeling that the distributors express that they can control their own

incomes leads to a perception that network selling provides a guarantee of paid work. In the United States, 80% of direct selling distributors are women I

Factors which appear to be contributing to an increase in non-store retailing in O E C D economies include increasing costs of fixed shop retailing (and hence increased barriers to entry), large scale immigration from areas with non-shop trading traditions and rising unemployment (Greenberg et. al. 1980). These factors have led to a growth in the numbers o f people engaging in hawking activities but they are also leading to other forms o f non-shop retailing such as automatic vending machines and mail-order retailing. These types of non-shop retailing are quite different from the highly personal types of non-shop retailing discussed above since they are non-personal. Both vending machines and mail order have increased in O E C D economies in the latter half of this

In document John Stuart Mill PRÓLOGO (página 64-66)