Page 193 - DMGT548_GLOBAL_HRM

Global HRM

Notes One of the fastest growing of the ITSs is the International Federation of Commercial,
Clerical, Professional, and Technical Employees (generally known by its French initials,
FIET), which is focused on the service sector. The long-term goal of each ITS’ is to achieve
transnational bargaining with each of the multinationals in its industry. Each ITS’ has
followed a similar programme to achieve the goal of transnational bargaining. The elements
of this program are:
(a) Research and information

(b) Calling company conferences
(c) Establishing company councils
(d) Companywide union-management discussions
(e) Coordinated bargaining

Overall, the ITS have met with limited success the reasons for which attribute to:
(a) The generally good wages and working conditions offered by multinationals.
(b) Strong resistance from multinational firm management.
(c) Conflicts within the labour movement.

(d) Differing laws and customs in the industrial relations area.
2. Lobbying for Restrictive National Legislation: On a political level, trade unions have for
many years lobbied for restrictive national legislation in United States and Europe. The
motivation for trade unions to pursue restrictive national legislation is based on a desire
to prevent the export of jobs via multinational investment policies.

Example: In the United States, the AFL-CIO has lobbied strongly in this area. A major
difficulty for unions when pursuing this strategy is the reality of conflicting national economic
interests. In times of economic downturn, this factor may become an insurmountable barrier for
trade union officials.
3. Regulation of MNCs by International Organisation: Trade unions exert influence over
multinationals via international organisations and they have met with some success.
Through trade union federations such as the European Trade Union Confederation (ETUC)
and the International Confederation of Free Trade Unions (ICFTU), the labour movement
has been able to lobby the International Labour Organisation (ILO), the United Nations
Conference on Trade and Development (UNCTAD), the Organisation for Economic
Cooperation and Development (OECD), and the European Union (EU). The ILO has
identified a number of workplace-related principles that should be respected by all nations:

(a) Freedom of association,
(b) The right to organise and collectively bargain,
(c) Abolition of forced labour, and
(d) Non-discrimination in employment.

In 1977, the ILO adopted a code of conduct for multinationals which influential in the
drafting of OECD guidelines for multinationals. These voluntary guidelines cover
disclosure of information, competition, financing, taxation, employment and industrial
relations, and science and technology.

188 LOVELY PROFESSIONAL UNIVERSITY