The publication of The Second Industrial Divide helped to initiate a sustai
ned inquiry into the transformation of work under industrial capitalism in
the late twentieth century. The argument that the breakdown of Fordist mass
production ushered in a new production paradigm in the shape of flexible s
ystems of work organization is reexamined. The dominant role of high-volume
mass production and its craft-based counterpart can continue to coexist we
ll into the future. Nevertheless, current income and employment trends appe
ar to disadvantage the traditional blue-collar Fordist worker and industria
l unions. The cause of these trends may not, however, be directly linked to
skills associated with computer technology. Finally, the type of flexibili
ty most closely associated with the work of Piore and Sabel-flexible specia
lization-is discussed. It is argued that flexible specialization within ind
ustrial districts that (a) foster the development of socially informed econ
omic action and (b) constrain competitive behavior may form the basis for t
he creation of different employment opportunities that challenge the domina
nt logic of capitalist development through which flexible employment strate
gies are used in tandem with corporate downsizing and increased managerial
control.