1. International Human Resource Managment
HRMT 20025
International Human Resource Managment

2. INTERNATIONAL INDUSTRIAL RELATIONS & THE GLOBAL INSTITUTIONAL CONTEXT
Chapter 9
INTERNATIONAL INDUSTRIAL RELATIONS & THE GLOBAL INSTITUTIONAL CONTEXT

3. INTERNATIONAL INDUSTRIAL RELATIONS & THE GLOBAL INSTITUTIONAL CONTEXT
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’

4. 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’

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

6. Introduction

7. 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

8. Key Issues in international industrial relations

9. Key issues Industrial relations policies & practices of MNEs
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

10. Trade unions & international industrial relations

11. Trade unions limit MNE strategies
Influence wage levels
Constrain the ability of MNEs to vary employment levels at will
Hinder or prevent global integration of operations of multinationals

12. The response of trade unions to MNEs

13. Trade union concerns about 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’

14. Three trade union responses
International trade secretariats (ITSs) want to achieve transformational bargaining by
research & information
Calling company conferences
Establishing company councils
Companywide union-management discussions
Coordinated bargaining
Lobbying for restrictive national legislation
Regulation of MNEs by international organizations: ETUC, ILO, UNCTAD, OECD, EU

15. Region integration: the EU

16. EU regional integration
Disclosure of information & 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

17. Codes of conduct – monitoring HRM around the world

18. 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 & rewards include compliance to codes of conduct

19. Managing HR in ‘offshoring countries’

20. 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

21. Summarizing emerging issues
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