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Mnc and Bangladesh

In: Business and Management

Submitted By ashskywalker
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Sri Lankan Journal of Human Resource Management

Sri Lankan Journal of Human Resource Management

Vol.2, No.1 2008

Sharing the Pie: Trade Unionism and Industrial Relations in Multinationals in Bangladesh
Monowar Hossain Mahmood
East West University Bangladesh

Abstract
Using the ‘convergence-divergence’ thesis as the baseline for the study of industrial relations and trade union activities in multinational subsidiaries, the present study tried to investigate extent of the trade union activities and IR practices of MNCs in a developing country context, i.e. Bangladesh, as well as influence of the MNCs on trade unions and IR activities within the existing social and economic contexts. The study revealed that comparative power dominance of multinationals over the host country industrial relations actors emerge as the vital factor in employer-union bargaining process, as well as their capacity to manipulate the existing bargaining process also helped them to implement their desired practices in Bangladesh. However, multinationals were not in confronting mode at all the circumstances, but their potential lobbying power created difficulties for the employees and the trade unions to develop countervailing power in the collective bargaining process and IR activities. Keywords: Convergence-Divergence, Bangladesh, Multinationals, Trade Unions

Introduction
Empirical studies of international human resource management (IHRM) often reveal that industrial relations practices of multinational subsidiaries face a ‘challenge from established home country labour and IR institutions’ to comply with the local practices (Clark, and Almond, 2004; Monks, 1996; Muller-Camen, et al., 1998) and they need to adjust their IR practices according to the local circumstances. Sometimes, because of flexible and dynamic institutional arrangement, they also find less pressure to adopt...

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