ROLE OF UNIONS IN MULTINATIONALS

Fatima Tuz Zahra Khawaja Haris Hassan Sohaib Iftikhar

BB-09-58 BB-09-98 BB-09-124

INTRODUCTION TO TRADE UNIONS

WHAT IS A UNION? ORIGIN OF TRADE UNIONS. CHALLENGES FOR THE TRADE UNIONS. ROLE OF TRADE UNION IN INTERNATIONAL DEVELOPMENT.

COLLECTIVE BARGAINING AND TRANSNATIONAL CORPORATIONS IN THE GLOBAL ECONOMY

Colin Crouch

 The labor around the globe has chosen to be represented by trade unions within relations of collective bargaining with employers. Why? Does understanding the place of the transnational corporation (TNC) helps in understanding both the challenges and possibilities facing transnational collective bargaining? Are there any possible effects of strong bargaining institutions on the TNCs?

 What does the ambiguity of the political role of the firm in a capitalist economy and democratic polity, mean? Are the spheres of Economy and Politics, separate? Does the Pluralistic and Neo-Corporatist approaches present any solutions to the rise of large TNCs? The political role of the firm: o The firm in economic theory. o The firm in pluralist theory.

Khawaja Haris Hassan BB-09-98

International Framework Agreements: Global industrial relations between rights and bargaining

Nikolaus Hammer

This paper examines the emergence and the main features of International Framework. Agreements (IFAs) IFAs originated in the 1980s and proliferated after 2000. They aim to secure core labor rights across multinational corporations. Due to Globalisation there is increase in the Challenges of International Labour Practices.

 Agreements on labour rights with MNCs are based on different sectors Industrial relations structures and anytical distinction is drawn between bargaining agreements and rights agreements. In one case Brazilian supplier lost its contract as a result of non-compliance with the terms of the IFA.

 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.

Six key provisions of an IFA

It must be a global agreement. Conventions must be referenced to the International Labour Organisation. It has to require the MNC (Parent Company) to influence suppliers. A Global Union Federation should be signatory. There has to be trade union involvement in the implementation. There has to be a right to bring complaints.

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

Who Helps to set these Regulations

IFA set Minimum level by seeking Government & ILO Help. Labour is one of the main actors in the implementation as well as a regular monitoring process.

Conclusion
Agreements are designed to open up negotiations over minimum standards and spaces for bargaining and organising, the exact position on the basis of bargaining. In IFA the actual agreement is concluded with an MNC, often with the involvement of a national union. It extend labour rights from an MNC to the whole supply chain of the organisation. It also boosts the employees morale and increase their productivity.

Sohaib Iftikhar BB-09-124

Trade union responses to Globalization

 Globalization cause some different effects on workers. Workers make union to negotiate with companies at global level and fight for their rights.

 Trade unions playing key role in influencing, implementing and enforcing rules to achieve a fair globalization 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

 Trade unions are engaging with international organizations to influence their policies Trade unions involved in international social dialogues through international framework agreements IFAs.

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 they build 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.

Social Dialogues through IFAs

International framework agreements IFAs are key tools for trade unions to make rules for MNEs These rules are negotiated between national trade unions, global union and companies and then implemented. Trade unions use IFAs for making policies about internal code of conduct and environment protection.

Enlarging trade union Agenda

Trade unions are engaging with large international organizations i.e world bank, IMF, united nations, and WTO. To influence their rules and regulations to promote fair globalization. Trade unions continuously campaigning their rules and policies framework internationally to enlarge their agenda, which is fair globalization.

Conclusion
Trade Union is an important factor of the current society, as it safeguards the basic interest and needs of both the employees as well as employers, by giving better terms and conditions of employment, secured jobs, better wages, favorable working environment which in turn leads to desired profitability.

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