international industrial relations & the …€¦ · ppt file · web view · 2015-01-26the...

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For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.

ISBN-10: 1408032090© Cengage Learning

INTERNATIONAL INDUSTRIAL RELATIONS & THE GLOBAL INSTITUTIONAL CONTEXT

Chapter 9

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Click on an item to go to its section.

Click on the book cover below to return to this table of contents.

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Chapter 9

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’

INTERNATIONALINDUSTRIAL RELATIONS &THE GLOBAL INSTITUTIONAL CONTEXT

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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’

Vocabulary

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In this chapter, we …1. Discuss key issues in international industrial relations &

the policies & practices of MNEs2. Examine the potential constraints that trade unions may

have on MNEs3. Outline key trade union concerns regarding MNEs4. Discuss recent trends & issues in the global workforce

context5. Discuss the formation of regional economic zones such as

the EU & the impact of opponents to globalization6. Present issues of codes of conduct & NGOs

as MNEs7. Discuss HR implications of offshoring

Objectives

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Introduction

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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

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Key Issues in international industrial relations

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Key issues1. Industrial relations policies & practices of MNEs2. Degree of inter-subsidiary production integration3. Nationality of ownership of the subsidiary4. International HRM approach5. MNE prior experience in industrial relations6. Subsidiary characteristics7. Characteristics of the home product market8. Management attitudes towards unions

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Trade unions & international industrial relations

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Trade unions limit MNE strategies

1. Influence wage levels

2. Constrain the ability of MNEs to vary employment levels at will

3. Hinder or prevent global integration of operations of multinationals

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The responseof trade unions to MNEs

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Trade union concerns about MNEsMNEs … 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’

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Three trade union responses1. International trade secretariats (ITSs)

want to achieve transformational bargaining by1) research & information2) Calling company conferences3) Establishing company councils4) Companywide union-management discussions5) Coordinated bargaining

2. Lobbying for restrictive national legislation3. Regulation of MNEs by international organizations:

ETUC, ILO, UNCTAD, OECD, EU

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Region integration: the EU

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EU regional integration1. Disclosure of information

& European Works Councils

2. 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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Codes of conduct –monitoring HRM around the world

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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 & rewardsinclude compliance to codes of conduct

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Managing HRin ‘offshoring countries’

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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

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Summarizing emerging issuesPossible 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

international industrial relations & the …€¦ · ppt file · web view · 2015-01-26the...

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