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IHRM - Trade Unions

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There are 3 ways trade unions can constrain the strategic choices of multinationals:

- Unions can influence wages, which will have implications for labour costs.
- Unions can be involved in strike actions, and impact productivity .
- Labour unions may affect changes in government policy via lobbying.

Can you explain them briefly?

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Solution Summary

This solution explains three ways trade unions can constrain the strategic choices of multinationals.

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Unions are a constraint from the perspective of wages because unions can force multinationals to secure a certain level of wages for the employees, which means that some of the benefits associated with low cost manufacturing in nations with comparative advantage in terms of labor cost will be offset, thus reducing the attractiveness of ...

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Sheetal Jain, PGDM
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  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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