Steering Labour Dynamics: Trends in Labour Utilisation Strategies within Central and Eastern European Automotive Sector

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Abstract:

This paper examines multinational corporations’ (MNCs) labour use strategies and
surrounding employment and labour market policies in the automotive industry in Czechia,
Hungary, and Slovakia amidst technological shifts, electrification, and labour shortages.
Drawing from the authors’ research on the automotive sector conducted over the past few years,
it analyses trends in labour utilisation strategies and emphasises the increasing autonomy of
MNCs stemming from deregulation and lack of coordinated policy action. The study highlights
developments in employment, skill formation and utilisation, and labour market policies during
and after the COVID-19 crisis, revealing a shift towards white-collar, high-skilled labour and
increasing reliance on temporary and agency contracts and migrant workers. Structured around
production changes and labour policies, the chapter provides comparisons and insights into
long-term employment challenges and disparities within the region's automotive sector.