How Significant a Role Do Multinational Corporations (Mncs) Play in Today's Uk Economy in Terms of Their Impact on Employment Relations (Er) and Labour Conditions?

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How significant a role do multinational corporations (MNCs) play in today’s UK economy in terms of their impact on employment relations (ER) and labour conditions? This is the question the paper attempts to evaluate through drawing on academic literature and empirical evidence from the 2004 Wers survey. The first section profiles MNCs in the UK, currently dominated by US and German firms. Following this, there is a brief analysis of employment relations in the UK. The third section reviews literature from leading commentators on the subject, highlighting contrasting views and evidence of foreign IR and ER practices. The fourth section looks at key factors that influence the way labour is managed within MNCs subsidiaries. The country of…show more content…
This stipulates that unions must be recognised in a workplace if there is a majority consensus of employees. The UK is now under EU directives, most recently the information and consultative directive (ICE) which came into force in 2005. This stipulates that companies with more than 1000 employees must establish a works council. This gives the workers rights to information and consultation on company decisions. Employees are also protected by many employment legislations in areas such as discrimination, unfair dismissal, minimum wage and working time regulations, directives from both the EU and the UK. With the general trend away from union involvement and collective agreements there has been a rise in union substitution strategies in the form of HRM policies in domestic firms. ER in Foreign Subsidiaries The following section reviews business systems of different countries that have foreign subsidiaries in the UK and their stance towards trade unions and practices and policies on employment relations. The US is similar to the UK with respect to the national business system. The framework for union representation in the US is weak and the support for collective bargaining is declining. Throughout the 1990’s unionization rates have declined rapidly from 30 to14 percent (Policies) in US firms leading to widespread non-unionism and anti-unionism. Do US firms then transfer this stance to their

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