Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 1 of 20 Chapter 9 INTERNATIONAL INDUSTRIAL RELATIONS & THE GLOBAL INSTITUTIONAL CONTEXT START Click on an item to go to its section. Chapter 9 INTERNATIONAL INDUSTRIAL RELATIONS & THE GLOBAL INSTITUTIONAL CONTEXT Click on the book cover below to return to this table of contents. 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’ For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 2 of 20 Chapter 9 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’ For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 3 of 20 Chapter 9 Objectives For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 4 of 20 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 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 5 of 20 Chapter 9 Introduction 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 Managerial strategies for labor relations in large corporations For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 6 of 20 Chapter 9 Influence of religious organizations on trade union development For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 7 of 20 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 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 8 of 20 Chapter 9 8. Management attitudes towards unions For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 9 of 20 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 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 10 of 20 Chapter 9 3. Hinder or prevent global integration of operations of multinationals For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 11 of 20 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’ For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 12 of 20 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 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 13 of 20 Chapter 9 3. Regulation of MNEs by international organizations: ETUC, ILO, UNCTAD, OECD, EU For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 14 of 20 Chapter 9 Region integration: the EU EU regional integration 1. Disclosure of information & European Works Councils 2. The issue of social ‘dumping’: For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 15 of 20 Chapter 9 that firms would locate in those member states that have lower labor costs, (relatively low social security) to gain a competitive advantage For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 16 of 20 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 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 17 of 20 Chapter 9 Checking that performance & rewards include compliance to codes of conduct For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 18 of 20 Chapter 9 Managing HR in ‘offshoring countries’ Offshoring countries HRM Offshoring & HRM in India » Turnover issues Offshoring & HRM in China For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 19 of 20 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 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 20 of 20 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
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