labour issues in ihrm

8/4/2019 Labour Issues in Ihrm

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LABOUR ISSUES IN IHRM


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Poole has identified several factors that may underlie

these historical differences: The mode of technology and industrial organization atcritical stages of union development; Methods of union regulation by government; Ideological divisions within the trade union movement; The influence of religious organizations on trade uniondevelopment and Managerial strategies for labor relations in largecorporation


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Key Issues In International LaborRelations

Nationality of Ownership of the Subsidiary

International Human Resource Management Approach

MNE Prior Experience in Labor Relations

Subsidiary Characteristics

Management Attitudes Towards Unions


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Labor Unions And International LaborRelations

Labor unions may limit the strategic choices of multinationalsin three ways: by influencing wage levels to the extent thatcost structures may become competitive, by constraining the

ability of multinationals to vary employment levels at will, andbyhindering or preventing global in-tegration of the operationsof multinationals.


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Influencing Wage Levels

The influence of unions on wage levels is, therefore,important. Multinationals that fail to successfully managetheir wage levels will suffer labor cost disadvantages thatmay narrow their strategic options. Many countries nowhave legislation that limits considerably the ability of firmsto carry out plant closure, redundancy, or layoff programsunless it can be shown that structural conditions makethese employment losses unavoidable. Frequently, the

process of showing the need for these programs is longand drawn-out.


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There are several ways in which multinationals have an

impact on trade union and employee interests:1. Formidable financial resources :2. Alternative source of supply3. The ability to move production facilities to-otherCountries

4. A remote locus of authority5. Production facilities in many industries6. Superior knowledge and expertise in labor relations7. The capacity to stage an investment strike :


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The response of labor unions to multinationals hasbeen threefold: to form international tradesecretariats (ITSs), to lobby for restrictive nationallegislation, and finally, to try and achieve regulationof multinationals by international organizations


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International Trade Secretariats(ITSs).

There are 15 ITSs, which function as loose confederations toprovide worldwide links for the national unions in a particulartrade or industry (e.g., metals, transport, and chemicals). The

secretariats have mainly operated to facilitate the ex-changeof information. One of the fastest growing of the ITSs is theInternational Federation of Commercial, Clerical, Professional,and Technical Employees (generally known by its Frenchinitials,FIET), which is focused on the service sector.


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Lobbying for Restrictive NationalLegislation

The motivation for labor unions to pursue restrictive national legislations is

based on a desire to prevent the export of jobs via multinational investmentpolicies. A major difficulty for unions when pursuing this strategy is the reality ofconflicting national economic interests.


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Regulation of Multinationals byInternational Organizations

At-tempts by labor unions to exert influence over multinationals via inter-national organizations have met with some success. Through trade unionfederations such as the European Trade Union Confederation (ETUC)and the International Confederation of Free Trade Unions (ICFTU), the

labor movement has been able to lobby the International Labor Organi-zation (ILO), the United Nations Conference on Trade and Development(UNCTAD) the Organization for Economic Cooperation and Development(OECD), and the European Union (EU)


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The ILO has identified a number of workplace-relatedprinciples that should be respected by all nations: freedomof association, the right to organize and collectivelybargain, abolition of forced labor, and nondiscrimination inemployment. the umbrella or chapeau clause This clausestates that multinationals should adhere to the guidelines

within the framework of law, regulations and prevailinglabor relations and employment practices, in each ofthe countries in which they operate.

labour issues in ihrm

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