Page 185 - DMGT548_GLOBAL_HRM

Global HRM

Notes 10.1 Trade Unions and International Industrial Relations

Before moving to trade unions and International industrial relations, let us first the basics of
industrial relations. ILO defines industrial relations, “Industrial relations deal with either the
relationship between the state and employers’ and workers’ organisations or the relation between
the occupational organisations themselves”. International industrial relations deals with the
complex relationships among employers employing foreign national, employees of different
nationalities, home and host country governments and trade unions of the organisations
operating in various countries and their national and international federations.

10.1.1 Factors that Influence Industrial Relations

Factors influencing the industrial relations are as follows:
(i) Institutional factors: Home and host country government policy, labour legislation,
voluntary courts, collective agreement, employee courts, employers’ federations, social
institutions like community, caste, creed, system of power status etc. in various countries
form Institutional factors.
(ii) Economic factors: Include economic organisation, like capitalist, communist, mixed etc. ,
the structure of labour force, demand for and supply of labour force etc.
(iii) Technological factors: Include mechanisation, automation, rationalisation,
computerisation, information technology etc.

(iv) Social and Cultural factors: Include population, religion, customs and traditions of people,
ethnic groups, cultures of various groups of culture etc.
(v) Political factors: Include political system in the country, political parties and their
ideologies, their growth, involvement in trade unions etc.
(vi) Governmental factors: Include host and home country governmental policies like
globalisation policies, industrial policy, economic policy, labour policy, export policy,
migration and immigration policies etc.

Example: Globalisation policies in countries like Bulgaria brought dramatic changes in
MNCs in that country.

Early involvement of Trade Unions is advised when MNCs plan to take over earlier Public
enterprises where there is a tradition of trade unions.

10.1.2 Actors of Industrial Relations

Industrial societies necessarily create industrial relations defined as the complex of interrelations
among workers, management and the government. Three major participants or factors of
industrial relations, thus, are workers and their organisations, management and the government.

1. Workers and their organisations: The total worker plays an important role in industrial
relations. The total worker includes working age, educational and family background,
psychological factors, social background, culture, skills, attitude towards others’ work etc.
Workers’ organisations, prominently known as trade unions, play major role in industrial
relations. The main purpose of trade unions is to protect the workers’ economic interests
through collective bargaining and by bringing pressure on the management through
economic and political tactics. Trade union factors include leadership, finances, activities
etc.

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