Role of trade union in multinational companies

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journal article

Multinational Corporations and Multinational Unions: Myths, Reality and the Law

The International Lawyer

Vol. 10, No. 4 (Fall 1976)

, pp. 655-667 (13 pages)

Published By: American Bar Association

https://www.jstor.org/stable/40705061

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Journal Information

The International Lawyer publishes substantive articles on current issues and developments in international law and practice, as well as noteworthy papers from Section programs and the Section’s reports and recommendations to the ABA House of Delegates. 

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With nearly 400,000 members, the ABA provides law school accreditation, continuing legal education, information about the law, programs to assist lawyers and judges in their work, and initiatives to improve the legal system for the public.

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Abstract

Of crucial importance to any corporation is the relationship between management and its employees and their trade union representatives, and thus it is not surprising that the internationalization of management through the multinational corporation has had important consequences for industrial relations in general and trade union strategies in particular. This article identifies several dimensions of the internationalization of employment and then examines the concerns of host country and parent country union leaders with respect to multinational enterprises. A number of advantages accruing to the firms as a result of their multinational nature are discussed in the light of the single-state orientation of national unions. To counteract the strength of these enterprises, national, regional, and international union organizations have developed a number of new institutional structures and strategic thrusts. Union strengthening, legal regulation, and cross-national cooperative activities are explored as they occur at each level of the union movement, and it is suggested that international and regional industrial union organizations are stimulating international union collaboration with respect to specific multinational enterprises. However, the central role of the national unions combined with their single-nation orientation will in some cases retard the development of an international union bargaining capability.

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Each issue of the Annals of the American Academy of Political and Social Science, guest edited by scholars and experts in the field, presents more than 200 pages of timely, in-depth research on a significant topic of interest to its readership which includes academics, researchers, policymakers, and professionals.

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Sara Miller McCune founded SAGE Publishing in 1965 to support the dissemination of usable knowledge and educate a global community. SAGE is a leading international provider of innovative, high-quality content publishing more than 900 journals and over 800 new books each year, spanning a wide range of subject areas. A growing selection of library products includes archives, data, case studies and video. SAGE remains majority owned by our founder and after her lifetime will become owned by a charitable trust that secures the company’s continued independence. Principal offices are located in Los Angeles, London, New Delhi, Singapore, Washington DC and Melbourne. www.sagepublishing.com

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The Annals of the American Academy of Political and Social Science © 1972 American Academy of Political and Social Science
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What is the role of MNC in international trade?

The multinational firms dominate international trade because, first of all, they are large exporters/importers before they become multinationals. Further, multinational firms with large FDI expand exports after they become multinationals.

What is the role of trade unions?

A trade union is an organisation made up of members (a membership-based organisation) and its membership must be made up mainly of workers. One of a trade union's main aims is to protect and advance the interests of its members in the workplace. Most trade unions are independent of any employer.

In what way can trade unions constrain the strategic choice of multinational?

The influence of unions on wage levels is , therefore important . Multinationals that fail to successfully manage their wage level will suffer labor cost disadvantages that may narrow their strategic options .

What are the 4 functions of trade union?

A trade union has four major functions related to members' welfare, strengthening the union, conducting union activities, and contributing to society. Trade unions are of three types, namely craft unions, industrial unions, and general unions.