Chapter 9 Chapter 9 Vocabulary Objectives Introduction Key issues in international i ndustrial relations Trade unions amp international industrial relations The response of trade unions to MNEs ID: 697008
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Slide1
INTERNATIONAL INDUSTRIAL RELATIONS & THE GLOBAL INSTITUTIONAL CONTEXT
Chapter
9Slide2
Chapter 9
Vocabulary
Objectives
IntroductionKey issues in international industrial relationsTrade unions & international industrial relationsThe response of trade unions to MNEsRegion integration: the EUCodes of conduct –monitoring HRM around the worldManaging HR in ‘offshoring countries’
INTERNATIONALINDUSTRIAL RELATIONS &THE GLOBAL INSTITUTIONAL CONTEXTSlide3
industrial relations, trade unions
r
egional economic zones
collective bargainingenterprise unionsplant closure, redundancy, layoff programslobbyingsub-optimizinginvestment strikeoffshoring, turnover rates, BPO = business process outsourcing, EHCNsguanxi, iron rice bowlITSs = international trade secretariats, SEM, NCP, EUETUC, ILO, UNCTAD, OECD, IFCTU, CIIME, EWC, FIET, AFL-CIO
social dimensions, social ‘dumping’umbrella or chateau clause‘golden handshake’strike-proneness‘converging divergences’
VocabularySlide4
In this chapter, we …
Discuss
key
issues in international industrial relations & the policies & practices of MNEsExamine the potential constraints that trade unions may have on MNEsOutline key trade union concerns regarding MNEsDiscuss recent trends & issues in the global workforce contextDiscuss the formation of regional
economic zones such as the EU & the impact of opponents to globalizationPresent issues of codes of conduct & NGOs
as MNEsDiscuss HR implications of offshoringObjectivesSlide5
IntroductionSlide6
Factors underlying historical differences in trade unions
Mode of technology & industrial organization
at critical stages of union development
Methods of government union regulationIdeological divisions withinthe trade union movementInfluence of religious organizationson trade union developmentManagerial strategies for laborrelations in large corporationsSlide7
Key Issues
in international industrial relationsSlide8
Key issues
Industrial relations policies
& practices of MNEs
Degree of inter-subsidiary production integrationNationality of ownership of the subsidiaryInternational HRM approachMNE prior experience in industrial relationsSubsidiary characteristicsCharacteristics of the home product marketManagement attitudes towards unionsSlide9
Trade unions & international industrial relationsSlide10
Trade unions limit MNE strategies
Influence wage levels
Constrain the ability of MNEs to vary employment levels at will
Hinder or prevent global integration of operations of multinationalsSlide11
The
response
of
trade unions to MNEsSlide12
Trade union concerns about MNEs
MNEs
…
have formidable financial resourceshave alternative sources of supplycan move production facilities to other countrieshave a remote locus of authorityhave production facilities in many industrieshave superior knowledge & expertisein industrial relationshave the capacity to stagean ‘investment strike’Slide13
Three trade union responses
International trade secretariats (ITSs)
want to achieve transformational bargaining by
research & informationCalling company conferencesEstablishing company councilsCompanywide union-management discussionsCoordinated bargainingLobbying for restrictive national legislationRegulation of MNEs by international organizations:
ETUC, ILO, UNCTAD, OECD, EUSlide14
Region integration: the EUSlide15
EU regional integration
Disclosure of
information
& European Works CouncilsThe issue of social ‘dumping’:that firms would locate in those member states that have lower labor costs, (relatively low social security) to gain a competitive advantageSlide16
Codes of conduct –
monitoring HRM around the worldSlide17
HRM related to global code of conduct may include
Drawing up & reviewing codes of conduct
Conducting cost-benefit analysis to oversee employee & relevant alliance partners’ compliance
Championing the need to train employees & alliance partners in the code of conductChecking that performance & rewardsinclude compliance to codes of conductSlide18
Managing
HR
in
‘offshoring countries’Slide19
Offshoring countries HRM
Offshoring & HRM in India
Turnover
issuesOffshoring & HRM in ChinaNo systematic link between HRM & business strategy Despite labor surplus, recruiting & retention problemsNo systematic link between performance management, reward & long-term motivationLack of coherence & continuity in enterprise trainingSlide20
Summarizing emerging issues
Possible HRM roles:
Consult with
unions/employee representativesManpower planning, considering the scope for employee redeploymentContribute to internal communication strategyIdentify training needsDesign new jobs generated by offshoring operationsHighlight potential risks, such as the implications of employment regulation both in HC &
in foreign locations