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IHRM Chapter 10. International Human Resource Management. International industrial relations. Managing people in a multinational context. Chapter Objectives. In this chapter we:. Discuss the key issues in international industrial relations and the policies and practices of multinationals

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IHRM Chapter 10

International Human Resource Management

International industrial relations

Managing people in a multinational context

slide2

Chapter Objectives

In this chapter we:

  • Discuss the key issues in international industrial relations and the policies and practices of multinationals
  • Examine the potential constraints that trade unions may have on multinationals
  • Outline key concerns for trade unions
  • Discuss recent trends and issues in the global workforce context
  • Discuss the formation of regional economic zones such as the European Union and the impact of opponents to globalization

IHRM Chapter 10

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Terms

industrial relations

trade unions

regional economic zones

collective bargaining

enterprise unions

strike-proneness

umbrella or chateau clause

‘golden handshake’

‘investment strike’

‘social policy’

Social ‘dumping’

‘converging divergences’

European Union (EU)

National Contact Points (NCP)

Single European Market (SEM)

International Trade Secretariats (ITSs)

ETUC

IFCTU

ILO

UNCTAD

OECD

FIET

CIIME

EWC

AFL-CIO

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IHRM Chapter 10

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Possible factors underlying historical differences in structure of trade unions

The mode of technology and industrial organization at critical stages of union development

Methods of union regulation by government

Ideological divisions within the trade union movement

The influence of religious organizations on trade union development

Managerial strategies for labor relations in large corporations

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IHRM Chapter 10

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Table10-1

Trade union structure in leading Western industrial societies

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IHRM Chapter 10

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Key issues in international industrial relations

Industrial relations policies and practices of multinational firms

The 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

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IHRM Chapter 10

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Table10-2

Union membership for selected countries

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IHRM Chapter 10

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Trade union limits on MNE strategic choices

Influence wage levels

Constrain the ability of MNEs to vary employment levels at will

Hinder or prevent global integration of operations of multinationals

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IHRM Chapter 10

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Trade union concerns about MNEs

MNEs have formidable financial resources

MNEs have alternative sources of supply

MNEs can move production facilities to other countries

MNEs have a remote locus of authority

MNEs have production facilities in many industries

MNEs have superior knowledge and expertise in industrial relations

MNEs have the capacity to stage an ‘investment strike’

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IHRM Chapter 10

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Trade union responses to MNEs

International trade secretariats (ITSs)

Lobbying for restrictive national legislation

Regulation of multinationals by international organizations

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IHRM Chapter 10

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Regional integration: the European Union (EU)

Disclosure of information and 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.

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IHRM Chapter 10

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Discussion Questions

Why is it important to understand the historical origins of national industrial relations systems?

In what ways can trade unions constrain the strategic choices of multinationals?

Identify four characteristics of MNEs that give trade unions cause for concern.

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IHRM Chapter 10