role of unions in multinationals

7/27/2019 Role of Unions in Multinationals

1/25

ROLE OF UNIONS IN

MULTINATIONALS


2/25

Fatima Tuz Zahra BB-09-58

Khawaja Haris Hassan BB-09-98

Sohaib Iftikhar BB-09-124


3/25

INTRODUCTION TO TRADE UNIONS

WHAT IS A UNION?

ORIGIN OF TRADE UNIONS.

CHALLENGES FOR THE TRADE UNIONS. ROLE OF TRADE UNION IN INTERNATIONAL

DEVELOPMENT.


4/25

COLLECTIVE BARGAINING ANDTRANSNATIONAL CORPORATIONS

IN THE GLOBAL ECONOMY

Colin Crouch


5/25

The labor around the globe has chosen to berepresented by trade unions within relations ofcollective bargaining with employers. Why?

Does understanding the place of thetransnational corporation (TNC) helps inunderstanding both the challenges andpossibilities facing transnational collective

bargaining? Are there any possible effects of strong

bargaining institutions on the TNCs?


6/25

What does the ambiguity of the political role ofthe firm in a capitalist economy and democraticpolity, mean? Are the spheres of Economy and

Politics, separate? Does the Pluralistic and Neo-Corporatist

approaches present any solutions to the rise oflarge TNCs?

The political role of the firm:oThe firm in economic theory.

oThe firm in pluralist theory.


7/25

Khawaja Haris Hassan

BB-09-98


8/25


9/25

This paper examines the emergence and themain features of International Framework.Agreements (IFAs)

IFAs originated in the 1980s and proliferatedafter 2000.

They aim to secure core labor rights across

multinational corporations.Due to Globalisation there is increase in the

Challenges of International Labour Practices.


10/25

Agreements on labour rights with MNCs arebased on different sectors

Industrial relations structures and anytical

distinction is drawn between bargainingagreements and rights agreements.

In one case Brazilian supplier lost its contract as aresult of non-compliance with the terms of the

IFA.


11/25

The most important obstacles involve the

failure of government. For various reasons,

including international competition, many

governments are not enforcing existing laws

such as those that protect workers seeking to

join or form trade unions and to bargain

collectively and some governments leave

organisations that avoid their legal obligations

as employers.


12/25

Six key provisions of an IFA

It must be a global agreement.

Conventions must be referenced to theInternational Labour Organisation.

It has to require the MNC (Parent Company) toinfluence suppliers.

A Global Union Federation should be signatory.

There has to be trade union involvement in theimplementation.

There has to be a right to bring complaints.


13/25

ILO Conventions in International

Framework Agreements

Forty-Hour Week Convention

Protection of Wages Convention.

Right to Organise and Collective Bargaining

Minimum Wage Fixing Convention

Occupational Safety and Health Convention

Minimum Age Convention

Workers with Family Responsibilities

Workers' Representatives Recommendation


14/25


15/25


16/25

Sohaib Iftikhar

BB-09-124


17/25

Trade union responses to

Globalization


18/25

Globalization cause some different effects on

workers.

Workers make union to negotiate with

companies at global level and fight for their

rights.


19/25

Trade unions playing key role in influencing,

implementing and enforcing rules to achieve a fairglobalization and promote development.

Labor movement is a major challenge for trade

unions in globalization.

Trade unions response to globalization center on the

need to the importance of network building between

local trade unions and global unions in achieving a

fair globalization


20/25

Trade unions are engaging with internationalorganizations to influence their policies

Trade unions involved in international social

dialogues through international framework

agreements IFAs.


21/25

Governance and Accountability

Integration between economies and new world

production systems demanding coordination

between national and international trade unions.

National trade unions faced challenge when theybuild networks with global unions.

Trade unions are campaigning for the

implementation of effective national and

international framework of rules and standards to

ensure good corporate governanace.


22/25

Social Dialogues through IFAs

International framework agreements IFAs arekey tools for trade unions to make rules forMNEs

These rules are negotiated between nationaltrade unions, global union and companies andthen implemented.

Trade unions use IFAs for making policiesabout internal code of conduct andenvironment protection.


23/25

Enlarging trade union Agenda

Trade unions are engaging with largeinternational organizations i.e world bank,IMF, united nations, and WTO.

To influence their rules and regulations topromote fair globalization.

Trade unions continuously campaigning their

rules and policies framework internationally toenlarge their agenda, which is fairglobalization.


24/25

Conclusion

Trade Union is an important factor of the currentsociety, as it safeguards the basic interest and needsof both the employees as well as employers, bygiving better terms and conditions of employment,

secured jobs, better wages, favorable workingenvironment which in turn leads to desiredprofitability.


25/25

THANK YOU

role of unions in multinationals

Documents