Human resource and industrial relations practices of UK and US multinationals in Germany

Most of the research about HRM and IR practices of MNCs in their host country has been conducted in deregulated countries such as the UK and the US. Host countries with relatively weak institutional arrangements facilitate the transfer of home-country practices. In contrast, those with institutionally strong systems, such as Germany, impose stronger pressures for adaptation. This paper reports research about nine US and four UK subsidiaries operating in Germany. It examines how their HRM and IR practices are shaped by German labour and IR institutions, how they differ from a control group of indigenous firms and what room for manoeuvre is left for the introduction of home-country practices. The main conclusions are that small and medium-sized subsidiaries in particular can to some extent avoid the pressures exerted by German labour and IR institutions. This facilitates the transfer of home-country practices. However, even larger affiliates that comply with the German institutions can transfer practices from their parent company. The highly regulated German system leaves some room for flexibility. Nevertheless, the institutional environment prevents large companies from following a unitarist HRM and IR approach.     

Conceptualising the dynamics of employee information and consultation: evidence from the Republic of Ireland

The debate concerning the emerging regulatory environment for employee voice continues apace, in particular the requirements to inform and consult employees as a result of the European Employee Information and Consultation Directive. This article examines the processes used to inform and consult employees across 15 case studies in the Republic of Ireland. It evaluates different voice arrangements using a conceptual framework that seeks to capture the dynamics of different employee voice schemes across union and non‐union companies. The findings suggest that participation is more robust when the channels for information and consultation accommodate both conflictual and cooperative processes. It is shown that robust forms of participation are more likely through processes that facilitate independent representation. The evidence also shows that some employers may devise their own counterbalancing forms of (pseudo) consultation, in an attempt to minimise the impact of regulatory rights for employee voice.     

US Multinationals: changing the framework of Irish industrial relations?

Traditionally it has been argued that the practices of multinationals conform to the industrial relations practices of the host country. Recent arguments claim that a new orthodoxy prevails which originates in the multi-national's country of origin. The authors find little evidence for a new orthodoxy in Irish industrial relations     

Between Boston and Berlin: American MNCs and the shifting contours of industrial relations in Ireland

Drawing on detailed qualitative case studies and utilizing a national business system lens, we explore a largely underrepresented debate in the literature, namely the nature of change in a specific but critical element of business systems, that is the industrial relations (IR) institutions of the State and the impact of MNCs thereon. Given the critical mass of US investment in Ireland, we examine how US MNCs manage IR in their Irish subsidiaries, how the policies and practices they pursue have impacted on the Irish IR system, and more broadly their role in shaping the host institutional environment. Overall, we conclude that there is some evidence of change in the IR system, change that we trace indirectly to the US MNC sector. Further, the US MNC sector displays evidence of elements of the management of IR that is clearly at odds with Irish traditions. Thus, in these firms we point to the emergence of a hybrid system of the management of IR and the establishment of new traditions more reflective of US business system.     

Phases and dynamics in the development of EU industrial relations regulation

In this article the authors discuss whether it is possible to identify the existence of a European IR-system. They try to identify important phases and dynamics in the emergence of what is termed the European IR-model. It is argued that traditional IR-theory should be combined with theories which allow more extensive consideration of politological and institutional phenomena when analysing IR developments at pan-European level.     

Shop steward leadership and the dynamics of workplace industrial relations

Here the author reviews a new wave of research in how shop stewards actually operate in the workplace. He presents a selection of findings from a study conducted in several manufacturing companies which suggests that the shop steward operates in an essentially dynamic environment.     

Wage inequality and the role of multinationals: evidence from UK panel data

Despite the increased attention on the impacts of globalisation, there has been little empirical investigation into the impact of multinational firms on the domestic labour market and in particular wage inequality, this is in spite of a rapid increase in foreign direct investment (FDI) at around the same time of rising inequality. Using UK panel data, this paper tests whether inward flows of FDI have contributed to increasing wage inequality. Even after controlling for the two most common explanations of wage inequality, technology and trade, we find that FDI has a significant effect upon wage inequality, with the overall impact of FDI explaining on average 11% of wage inequality.     

Economic reforms,industrial relations and human resources in the People's Republic of China: an overview

In this article, the impact of the post-1978 economic reforms on the Chinese labour-management system on the main sectors of employment (state, collective, private and joint ventures) is systematically discussed. The author concludes that as greater enterprise autonomy becomes more common, the labour-management system will evolve into a more ‘marketised’ hybrid form albeit ‘with Chinese characteristics’.     

Antecedents of concession bargaining in the Great Recession: evidence from Ireland

Concession or ‘give back’ bargaining involves firms seeking changes in pay and conditions of employment from trade unions in return for pledges of enhanced job security and sometimes other forms of reciprocation. Several distinct modes of concession bargaining are distinguishable in the literature, and three modes of concession bargaining have been identified in Ireland during the Great Recession: integrative, distributive and minimal engagement. Deploying qualitatively informed quantitative data on the conduct of collective bargaining during the Great Recession, this article examines a series of antecedent influences on the choices firms make in conducting concession bargaining with unions.     

Evaluating change in European industrial relations: research evidence on trends at organizational level

This paper uses evidence from organizations with more than 200 employees in several countries across Europe to explore the proposition that industrial relations in Europe is becoming more convergent around a non-union HRM model. The evidence indicates that, although there are some similar moves taking place, national patterns remain distinctive, the IR/HRM distinction may not be sustainable in Europe and there are significant elements of continuity in industrial relations in Europe alongside the changes that are taking place.     

Company and union commitment: evidence from an adversarial industrial relations climate at a Korean auto plant

This study examines the feasibility and antecedents of worker commitment to company and union at an automobile plant in Korea. It utilized a sample of 331 workers at the plant who were implementing new management techniques, e.g. human resources management, total quality management and lean production. The plant had a long history of adversarial industrial relations, and its workforce was organized by the Korean Confederation of Trade Unions, a union organization known for its militancy. The study found little evidence of workers' dual commitment to the company and the trade union, but instead discovered a competing commitment between company and trade union. Furthermore, company and union commitment were predicated on different factors, with workers' positive perceptions of the industrial relations climate positively affecting commitment to their company and negatively affecting commitment to their union. The findings were more consistent with those at other workplaces with an adversarial industrial relations climate rather than those with a co-operative one.     

Different roads: changes in industrial and employee relations in the Czech Republic and East Germany* since 1989

This article examines the differential impact of post Communist restructuring on industrial and employee relations in the Czech Republic and East Germany. It reviews the pre and post Communist systems of industrial relations and personnel management in the two countries and draws on original survey data to examine how this influences employee relations at organisation level.     

Industrial relations in Northern Ireland: a survey

This survey finds that the legal and institutional framework and industrial relations practice in Northern Ireland have only been marginally affected by civil strife and continue to evolve in line with developments in Britain.     

Line managers and the management of workplace conflict: evidence from Ireland

In an effort to improve understanding of the role played by line managers in firms, this article examines the role of line managers and supervisors in the management of workplace conflict in firms in the Republic of Ireland. The article finds that while line managers are commonly seen as playing a significant role, they are also seen to do so often without organisational supports in areas such as training and performance monitoring and are seen often to lack the confidence to act independently. Line and supervisory ‘engagement’ in conflict management is found to be positively associated with a series of organisational outcomes, including relative labour productivity, relative absence rates and the capacity to handle change compared with other firms in the same industry. Line and supervisory management engagement in conflict management is found in turn to be associated with the use of commitment‐oriented HR practices and with the adoption by firms of a proactive approach to conflict resolution.     

Workplace democracy in Bulgaria: from subordination to partnership in industrial relations

Bulgaria has for many years been an innovator in industrial relations. Its new labour code, as a model of industrial democracy, has few parallels in market or even other central planned economies. Here the authors trace the ideological, social and political background to the new code which has been seen as an instrument of radical social change.     

Monitoring multinationals in Scotland: Some preliminary evidence on appraising corporate behaviour

This paper considers the important question of the screening and monitoring of multinational companies in host countries. Using data relating to US multinational affiliates in Scotland, the article applies the techniques of cluster analysis and discriminant analysis to see whether any overall patterns emerge which might allow predictions on the future role and prospects of the affiliates. The results provide some interesting pointers, with the distinction between cost centre and profit centre control systems being perhaps potentially most useful as a means of identifying groups of multinational affiliates which are worthy of more detailed investigation.     

Gender: the missing link in industrial relations research

This article extends the critique of how industrial relations research continues to be gender‐blind and argues that it is in part a result of early definitions which relegated ‘personal’ relations as outside the boundaries of the field and in part a result of a simultaneous strategy of acknowledgement and abdication, acknowledging that gender is important while at the same time arguing that gender does not need to be addressed. In order to demonstrate how gender is central to industrial relations, the article uses Antonio Gramsci’s concepts of ‘hegemony’, ‘ideology’, ‘good sense’ and ‘common sense’ to illustrate how patriarchal common sense is drawn on by both managers and trade unionists in negotiations over hours of work in a manufacturing firm in the North ‐west of England. It is argued that in order to include gender as a central feature of industrial relations research, it is necessary to analyse how the interests of capital, labour and patriarchy are embedded in negotiations on the shopfloor.     

Trends and developments in industrial relations and industrial relations law: Trade union discipline and non-strikers

Perhaps the most controversial change introduced in the 1988 Employment Act was the statutory right given to union members not to be disciplined by their unions for continuing to work during lawful industrial action approved by a majority in a secret ballot. Here the authors examine the legal contexts, implications for trade unions and the wider industrial relations and political significance of this important new right.     

Non-audit services and auditor independence: some evidence from Ireland

This study reports the results of an investigation into the effects of the provision of non-audit services (NAS) on perceptions of auditor independence held within the Irish commercial environment, an environment not previously subject to a study of this nature. The methodology used in the study combined the use of a mail questionnaire and semi-structured interviews to allow both breadth of coverage and the opportunity to probe deeper into the nature of the perceptions held. The principal findings of the study were that perceptions of auditor independence were significantly diminished when NAS were provided to clients by personnel involved in the audit rather than by either a separate department within the audit firm or to non-audit clients only. The study highlighted that users of financial statements were willing to accept some reduction in auditor independence consequent upon the provision of NAS if this resulted in firms obtaining better or more cost-effective advice or if it resulted in a higher standard of audit. Analysis of the interviews provided further insights into the manner in which users of financial statements formed these perceptions and also suggested that, in the opinion of the interviewees, the small size and closeness of the Irish audit market acted to enhance rather than diminish audit independence.     

Participatory management and industrial relations climate: a study of Chinese,Japanese and US firms in Taiwan

This study examines the relationship between industrial relations climate and the employee attitudes towards participatory management in Chinese-, Japanese- and US-invested electronics firms in Taiwan. Among the findings, Chinese firms tended to have a higher level of participatory management and more effective participatory management than US-invested firms in Taiwan. It was also confirmed that the harmony and openness aspects of industrial relations climate had a positive and significant correlation with the effectiveness of participatory management, including the personnel, operational and social matters. It was concluded that multinational corporations (MNCs) which need centralized control of their overseas operations will be less willing to encourage participatory management in their local operations. Finally, it was revealed that the effectiveness rather than the level of participatory management could better predict industrial relations climate.