International Industrial Relations & The Global Institutional Context

Chapter 9
For use with International Human Resource Management 6e

By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.
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Chapter 9
INTERNATIONAL
INDUSTRIAL RELATIONS &
THE GLOBAL
INSTITUTIONAL CONTEXT
START
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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

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Chapter 9
TAB L E
O F
C O N T E N T S
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cover below to
return to this table
of contents.
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
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converging
By Peter J. divergences
Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
Chapter 9
Objectives

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Chapter 9
In this chapter, we
1. Discuss key issues in international industrial relations &
the policies & practices of MNEs
2. Examine the potential constraints that trade unions may
have on MNEs
3. Outline key trade union concerns regarding MNEs
4. Discuss recent trends & issues in the global workforce
context
5. Discuss the formation of regional economic zones such as
the EU & the impact of opponents to globalization
6. Present issues of codes of conduct & NGOs
as MNEs
7. Discuss HR implications of offshoring

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Chapter 9
Introduction
Factors underlying historical

differences in trade unions
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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Chapter 9
Mode of technology & industrial organization

at critical stages of union development
Methods of government union regulation

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Chapter 9
Key Issues in international

industrial relations
Key issues
1. Industrial relations policies & practices of MNEs
2. Degree of inter-subsidiary production integration
3. Nationality of ownership of the subsidiary
4. International HRM approach
5. MNE prior experience in industrial relations
6. Subsidiary characteristics
7. Characteristics of the home product market

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Chapter 9
8. Management attitudes towards unions

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Chapter 9
Trade unions & international

industrial relations
Trade unions limit MNE strategies

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

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Chapter 9
3. Hinder or prevent global integration of

operations of multinationals

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Chapter 9
The response
of trade unions to MNEs
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
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Chapter 9
Trade union concerns about MNEs
Three trade union responses

1. International trade secretariats (ITSs)
want to achieve transformational bargaining by
1)
2)
3)
4)
5)
research & information

Calling company conferences
Establishing company councils
Companywide union-management discussions
Coordinated bargaining
2. Lobbying for restrictive national legislation

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Chapter 9
3. Regulation of MNEs by international organizations:

ETUC, ILO, UNCTAD, OECD, EU

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Chapter 9
Region integration: the EU
EU regional integration
1. Disclosure of information
& European Works Councils
2. The issue of social dumping:

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Chapter 9
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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Chapter 9
Codes of conduct
monitoring HRM around the world
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

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Chapter 9
Checking that performance & rewards

include compliance to codes of conduct

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Chapter 9
Managing HR
in offshoring countries
Offshoring countries HRM

Offshoring & HRM in India
Turnover issues
Offshoring & HRM in China

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Chapter 9
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
Summarizing emerging issues

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Chapter 9
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

International Industrial Relations & The Global Institutional Context

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Chapter 9

For use with International Human Resource Management 6e

For use with International Human Resource Management 6e

Click on the book

For use with International Human Resource Management 6e

For use with International Human Resource Management 6e

Factors underlying historical

Ideological divisions within

Mode of technology & industrial organization

For use with International Human Resource Management 6e

Key Issues in international

For use with International Human Resource Management 6e

8. Management attitudes towards unions

For use with International Human Resource Management 6e

Trade unions & international

Trade unions limit MNE strategies

For use with International Human Resource Management 6e

3. Hinder or prevent global integration of

For use with International Human Resource Management 6e

Trade union concerns about MNEs

Three trade union responses

research & information

2. Lobbying for restrictive national legislation

For use with International Human Resource Management 6e

3. Regulation of MNEs by international organizations:

For use with International Human Resource Management 6e

Region integration: the EU

For use with International Human Resource Management 6e

that firms would locate in those member states

For use with International Human Resource Management 6e

HRM related to global code of

For use with International Human Resource Management 6e

Checking that performance & rewards

For use with International Human Resource Management 6e

Offshoring countries HRM

Offshoring & HRM in China

For use with International Human Resource Management 6e

No systematic link between HRM & business strategy

Summarizing emerging issues

For use with International Human Resource Management 6e

Possible HRM roles:

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