Megatrends Briefing Summary

Case Study & Megatrends Briefing Summary
Student's Name
Institution
Case Study
1 Compare union relations in two different countries? How are the unions (and employers) organized? What is the nature and role of bargaining? What role does the government play? Are there additional forms of employee representation?
Union relations differ from country to country. In Germany, for instance, the unions have a small membership, but they have a strong presence, whereas, in a country such as Mexico, unions are not as strong, but the membership is quite high (Briscoe, Schuler, & Tarique, 2011). Unions may represent all workers regardless of membership status in some countries, whereas in some, it only represents the members. Governments of the day provide a conducive environment for the unions to thrive by making policies that govern employee relations with the employers. As in the case of Ford Motor Company in Germany, negotiations for all auto companies and auto unions are done at the same time through the national employers' association and the national metalworkers' union that represent workers at all automotive companies (Briscoe, Schuler, & Tarique, 2011).
Bargaining is a process where representatives of a workers union meet with representatives of the business organization and negotiate a contract stipulating employee-employer relationships such as terms of employment and working conditions. Bargaining seeks to arrive at a collective agreement that governs the conditions and and terms of employment (ILO, n.d.). Governements play an importan role in upholding international labor guidelines as well as formulating laws that dictate the operations of organizations in relations to employment (Briscoe, Schuler, & Tarique, 2011).
There are different approaches to employee representation that are non-union related, with three being the common ones. The first one is worker's councils that are practiced in many countries in Europe. Another one is co-determination, majorly practiced in Germany. It entails the representation of employees on supervisory boards. It has three corresponding systems, namely the dual system, single-tier system, and mixed systems. Lastly, there are the worker cooperatives of which the best set is found in the Basque country of northern Spain (Briscoe, Schuler, & Tarique, 2011). This is an economic system that is open to everyone, is democratic in its operations, and the solidarity and equality of the worker and owner is a key principle.
2 What problems do you see for MNEs that must bargain with unions in multiple countries? How would you advise those problems be resolved?
That they must refer to different laws governing employee relations in different countries is the biggest problem faced by MNEs that must bargain with unions in multiple countries. This means that the MNEs cannot employ a blanket rule with regards to dealing with employee representation, and the fact that they have to understand the laws from every country can be exhausting and time-consuming. Apart from this, but in relation to, other problems faced by these MNE in multinational bargaining include differing national priorities, cultural and economic differences among different countries, widely varying industrial relation laws and practices, and a lack of any central or global law. Major differences in the labor relations in different countries are always attributed to issues such as the level at which bargaining takes place, that are, is national, regional, or industry level (Briscoe, Schuler, & Tarique, 2011). The differences also arise from the type of workers involved and the skillset they posses, for example, governmental, service, professional or craft. The degree of centralization of union-management is also a major issue contributing to difference in labor relations. There is also the issue of the degree of involvement by the government of the land. Finally, another issue is the scope of bargaining which includes topics of negotiation and those to be included in contracts. Therefore, MNEs that have to bargain in multiple countries face numerous challenges.
To resolve this, there is a need to develop a global law on labor relations and thereafter form a central, international authority for labor relations that will implement the global labor law. The International Labor Organization can seek to develop universal laws that govern the operations of MNEs. Such laws that are agreed upon by different countries would be integral in helping MNEs navigate the challenge of bargaining with unions from multiple countries.
3 What do you predict for the future of unions and union relations in the global economy? Why?
The role of unions and union relations is constantly changing in most countries. This can be attributed to the globalization phenomenon, advancement in technologies, and changes in job descriptions and world demographics. In my view, in as much as membership to unions is declining and the public sector, where unions thrived, is weakening, unions will still be there for a long time. This is partly due to the fact that unions are now partnering with other players such as the NGOs and continue to champion social courses. Also, the public sector will never collapse entirely, and this means that unions will still be there, albeit with minimal reach.
Issues about the future of work, the fourth industrial revolution and digital economy provide fresh grounds for unions to thrive. The influence of these issues at hand will be greatly propelled by pro-active trade unions. The proactive trade unions must have the ability to deploy the most advanced data collection, analysis and ...