This summary covers all articles of HRM & International Labour Law (2016/2017). This summary covers the following articles:
- Why do multinational companies sign transnational company agreements (Hadwiger, 2014)
- Shrinking collective bargaining coverage, increasing income inequality (Bosch, 2014)
...
Why do Multinational Companies Sign Transnational Company Agreements?
Hadwiger, F. (2014). The economics of the Internationalization of the Law
Transnational company agreements (TCAs) are negotiated between the management of a company
and employees’ representatives. TCAs specify the responsibility of multinational companies to follow
particular standards in more than one country or even worldwide with regard to:
- Fundamental social rights
- Working conditions
- Restructuring practices
- Health & Safety conditions
- Training
- Environmental protection provisions
Increasingly interrelated world individual states only have a limited capacity to regulate cross
border activities there is a permissive environment for wrongful acts without adequate
sanctioning race to the bottom the body of international law is growing rapidly in recent years.
In contrast to the traditional regime of labor regulations it is soft law providing incentives and
information and it addresses new responsibilities primarily to firms and not to governments. The
emergence of the private ordering (there is already a myriad of international labor standards)
illustrates that some multinational companies perceive it to be in their interest to have certain labor
and environmental standards. TCAs are an example of an emerging new global labor governance
regime that involves private bargaining partners and global rule-making through private agreements.
Self-regulation is characterized as “relying substantially on the goodwill and co-operation of
individual firms for their compliance”. Compared to traditional regulation by state authorities, self-
regulation is:
- More speedy
- More cost-effective
- More sensitive to market circumstances
- Producing higher levels of voluntary compliance
- Unable to significantly realign companies’ incentives & interests credibility gap
- Only successful when parties decide that it is in their best interest to work along the
standards
Authors argue that TCAs are able to alleviate the criticized shortcomings of codes of conduct. TCAs
can be divided into:
1. International Framework Agreements (IFAs)
IFAs are TCAs that are global in their scope, involve global union federations (GUFs), and
contain the ILO core labor standards at a minimum. These agreements focus on respecting
labor standards, mostly outside Europe.
2. European Framework Agreements (EFA)
European Works Councils (EWCs) (alone or in cooperation with national, European, or global
Unions) have signed a considerable number of EFAs. Research showed that most EFAs focus
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller elineklaver. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.95. You're not tied to anything after your purchase.
