A new emerging trend? Cross border trade union mergers

Pages5-8
DOIhttps://doi.org/10.1108/01425450910916788
Date21 November 2008
Published date21 November 2008
AuthorJohn Gennard
Subject MatterHR & organizational behaviour
EDITORIAL
A new emerging trend? Cross
border trade union mergers
John Gennard
Department of HRM, University of Strathclyde, Glasgow, UK
Abstract
Purpose – The purpose of this editorial is to examine moves towards cross border trade union
mergers.
Design/methodology/approach – This editorial outlines the reasons why trade unions see the
need to act outside their nation state boundaries.
Findings – In the globalised economy if trade unions are to defend and advance the living standards
of their members they cannot confine their activities to their national labour markets. Currently, trade
unions attempt to do this via multi-lateral link ups via Global Trade Union Federations and by
developing links with their sister unions in other countries. A new mechanism is now being developed
by trade unions to counter balance the economic strength of multi-nationals, namely cross border trade
union mergers.
Originality/value – The editorial offers insights into the reasons for, and gives examples, for the
emerging trend of the movement towards cross border trade union mergers.
Keywords Multi-nationalcompanies, Trade Unions, Globalization, Amalgamations
Paper type Viewpoint
Introduction
One of the consequences of globalisation is that if trade unions are to protect and
advance their members’ interests effectively they cannot restrict their activ ities to their
nation state boundaries. There are a number of reasons for this including corporate
mergers and takeovers, the growth of multi national companies and the diverse
employment practices of multinational companies. World wide corporate structure is
polarising between a small number of large multinationals and a large number of small
companies, supplying customised products to local “niche” markets. In France, for
example, 71 per cent of printing companies employ under ten employees. On the other
hand in most industrialised countries a small but growing number of multinational
companies account for a disproportionate high share of employment and sales. In the
USA, for example, the ten largest graphical companies employ some 30 per cent of the
industry’s total employment.
Multinational companies have emerged, and continue to expand within or between
countries by mergers and acquisitions of, in particular, medium sized organisations.
North American and British companies have been particularly prominent in this trend.
The growth of multinational companies means workers in different parts of the world
are increasingly becoming employed by the same companies. The employers with
whom German trade unions negotiate are increasingly the same as three with whom,
for example, Indian, US and Australian trade unions, negotiate in their countries.
Multinational companies do not deploy homogeneous employee relations policies
regardless of the country in which their operators are located. Some pursue policies of
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0142-5455.htm
A new emerging
trend?
5
Employee Relations
Vol. 31 No. 1, 2009
pp. 5-8
qEmerald Group Publishing Limited
0142-5455
DOI 10.1108/01425450910916788

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