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Business Management - Global Expansion

You have just left a meeting with your CEO in which he said that the firm would be branching out to a number of different countries around the world. You felt obligated to discuss this important decision with Jane, your HR director, as she will now be overseeing HR activities for the firm around the globe instead of just at your current domestic location. You have identified the following points for your discussion with Jane:
What important U.S. labor laws are applicable overseas?
How, if at all, might HR issues influence where the CEO should place overseas locations? What other considerations are there, other than HR issues?
How might Jane address the issue of "equity" (i.e., trying to have or not have similar pay and benefits for the equivalent jobs across the globe)?
Because Japan and Germany are strong candidate countries for a new location, what is the role that unions play in Japan and Germany compared to in the United States.

Solution Preview

The most important labor laws applicable overseas are the Americans with Disabilities Act ("ADA"), Age Discrimination in Employment Act ("ADEA"), Title VII, Equal Pay Act ("EPA"), Fair Labor Standards Act ("FLSA"), and Family and Medical Leave Act ("FMLA"). The FMLA only applies to employees within the territory of US. If an employee is located in Japan or Germany, the FMLA does not apply. ADEA applies to all US citizens employed abroad, but the ADA applies only to US citizens employed in US companies in foreign companies. Title VII also applies only to US citizens working in US companies. FSLA does not apply to citizens who are working in foreign territory. Similarly, EPA does not apply to employees who are working in foreign lands.

HR issues will influence where the CEO should place overseas locations. The HR issues include the wages and salaries that have to be paid for overseas function. If the wages and salaries are high, then the fixed costs increase. The other HR issues are the labor laws of the country, the union environment, and the quality of labor force ...

Solution Summary

The answer to this problem explains HR issues in the context of global expansion of business. The references related to the answer are also included.