Digitalization, automation, and greening inthe Danish metal industry. : Local implementation and industrial relations consequences

Abstract: This study is about one of the most revolutionary developments in Denmark's metal industry in recent times. Ongoing digitalization and automation, paralleled with the transition to CO2-neutral production is not only changing work procedures but also disrupting industrial relations. As industrial relations are defined by the underlying power dynamics between labor market parties, these relations might also have changed. Since the 80s, unions have been forced to retreat. The discourse is that digitalized automation and decarbonization will lead to increased employment and that the labor-value of production, over time, will remain the same. Contradicting this is the fact (Barradas 2019) that the labor-value of production is decreasing while the employer's share of profit increasing. Despite digitalized automation and the transition to environmentally sustainable production allegedly leading to increased employment, industrial relations are being affected due to the labor-value of production is decreasing. This study is conducted in conjunction with “BARMETAL” (2022), a project financed by the European Union (EU) regarding the digitalization and automation as well as decarbonization of the European automotive industry. As the automotive industry is non-existent in Denmark, this study focuses on manufacturers in the metal industry. The extent of our engagement with the automotive industry is that one company analyzed is a supplier of catalysts to the automotive industry.  This research is conducted as a qualitative study including interviews and literature analysis. The participating companies  revealed minimal engagement in the transition to environmental sustainability, with the primary emphasis placed on the adoption of digital automation. This study is about one of the most revolutionary developments in Denmark's metal industry in recent times. Ongoing digitalization and automation, paralleled with the transition to CO2-neutral production is not only changing work procedures but also disrupting industrial relations. As industrial relations are defined by the underlying power dynamics between labor market parties, these relations might also have changed. Since the 80s, unions have been forced to retreat. The discourse is that digitalized automation and decarbonization will lead to increased employment and that the labor-value of production, over time, will remain the same. Contradicting this is the fact (Barradas 2019) that the labor-value of production is decreasing while the employer's share of profit increasing. Despite digitalized automation and the transition to environmentally sustainable production allegedly leading to increased employment, industrial relations are being affected due to the labor-value of production is decreasing. This study is conducted in conjunction with “BARMETAL” (2022), a project financed by the European Union (EU) regarding the digitalization and automation as well as decarbonization of the European automotive industry. As the automotive industry is non-existent in Denmark, this study focuses on manufacturers in the metal industry. The extent of our engagement with the automotive industry is that one company analyzed is a supplier of catalysts to the automotive industry.  This research is conducted as a qualitative study including interviews and literature analysis. The participating companies revealed minimal engagement in the transition to environmental sustainability, with the primary emphasis placed on the adoption of digital automation.