Internal Labor Markets and Semi-skilled Workers in the Manufacturing Industry

This study examines the employment system and firm-internal labor markets(FILM) and investigates the three main aspects of the FILM, namely making the wage system more flexible, workplace innovation, and vocational training and skill formation for craft-workers. In this regard, the study seeks to identify the direction in which firms and the government should go when it comes to personnel management and manpower policies. At the labor market level, in addition to making the internal labor market more flexible and more efficient, there is a need to ensure that the skill development system is based on the notion of flexicurity such that functional flexibility at the firm level is combined with the social security scheme at the national level. Increased flexibility can be brought to the wage system by linking it to ability and tasks rather than seniority. This modification at the firm level should be supported at both the policy and research levels. Business relationships between SMEs and big firms should be altered in favor of a co-existence system. To this end, the government should implement a more progressive program to eradicate large firms unfair treatment of their subcontractors. Firms that have established the FILM should focus on fostering core craft workers responsible for innovation at the workplace. The curriculums of vocational schools should also be adopted to reflect technical changes in the workplace. The government should support workplace innovation in SMEs that revolves around craft workers...