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INTERNATIONAL INDUSTRIAL RELATIONS & THE GLOBAL INSTITUTIONAL CONTEXT

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Presentation on theme: "INTERNATIONAL INDUSTRIAL RELATIONS & THE GLOBAL INSTITUTIONAL CONTEXT"— Presentation transcript:

1 INTERNATIONAL INDUSTRIAL RELATIONS & THE GLOBAL INSTITUTIONAL CONTEXT
Chapter 9 INTERNATIONAL INDUSTRIAL RELATIONS & THE GLOBAL INSTITUTIONAL CONTEXT

2 INTERNATIONAL INDUSTRIAL RELATIONS & THE GLOBAL INSTITUTIONAL CONTEXT
Chapter 9 INTERNATIONAL INDUSTRIAL RELATIONS & THE GLOBAL INSTITUTIONAL CONTEXT Vocabulary Objectives Introduction Key issues in international industrial relations Trade unions & international industrial relations The response of trade unions to MNEs Region integration: the EU Codes of conduct – monitoring HRM around the world Managing HR in ‘offshoring countries’

3 Vocabulary industrial relations, trade unions regional economic zones
collective bargaining enterprise unions plant closure, redundancy, layoff programs lobbying sub-optimizing investment strike offshoring, turnover rates, BPO = business process outsourcing, EHCNs guanxi, iron rice bowl ITSs = international trade secretariats, SEM, NCP, EU ETUC, ILO, UNCTAD, OECD, IFCTU, CIIME, EWC, FIET, AFL-CIO social dimensions, social ‘dumping’ umbrella or chateau clause ‘golden handshake’ strike-proneness ‘converging divergences’

4 Objectives In this chapter, we …
Discuss key issues in international industrial relations & the policies & practices of MNEs Examine the potential constraints that trade unions may have on MNEs Outline key trade union concerns regarding MNEs Discuss recent trends & issues in the global workforce context Discuss the formation of regional economic zones such as the EU & the impact of opponents to globalization Present issues of codes of conduct & NGOs as MNEs Discuss HR implications of offshoring

5 Introduction

6 Factors underlying historical differences in trade unions
Mode of technology & industrial organization at critical stages of union development Methods of government union regulation Ideological divisions within the trade union movement Influence of religious organizations on trade union development Managerial strategies for labor relations in large corporations

7 Key Issues in international industrial relations

8 Key issues Industrial relations policies & practices of MNEs
Degree of inter-subsidiary production integration Nationality of ownership of the subsidiary International HRM approach MNE prior experience in industrial relations Subsidiary characteristics Characteristics of the home product market Management attitudes towards unions

9 Trade unions & international industrial relations

10 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 multinationals

11 The response of trade unions to MNEs

12 Trade union concerns about MNEs
have formidable financial resources have alternative sources of supply can move production facilities to other countries have a remote locus of authority have production facilities in many industries have superior knowledge & expertise in industrial relations have the capacity to stage an ‘investment strike’

13 Three trade union responses
International trade secretariats (ITSs) want to achieve transformational bargaining by research & information Calling company conferences Establishing company councils Companywide union-management discussions Coordinated bargaining Lobbying for restrictive national legislation Regulation of MNEs by international organizations: ETUC, ILO, UNCTAD, OECD, EU

14 Region integration: the EU

15 EU regional integration
Disclosure of information & European Works Councils The 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 advantage

16 Codes of conduct – monitoring HRM around the world

17 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 conduct Checking that performance & rewards include compliance to codes of conduct

18 Managing HR in ‘offshoring countries’

19 Offshoring countries HRM
Offshoring & HRM in India Turnover issues Offshoring & HRM in China No systematic link between HRM & business strategy Despite labor surplus, recruiting & retention problems No systematic link between performance management, reward & long-term motivation Lack of coherence & continuity in enterprise training

20 Summarizing emerging issues
Possible HRM roles: Consult with unions/employee representatives Manpower planning, considering the scope for employee redeployment Contribute to internal communication strategy Identify training needs Design new jobs generated by offshoring operations Highlight potential risks, such as the implications of employment regulation both in HC & in foreign locations


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