Seeding the clouds for industrial relations climate change in emerging economies

Abstract

IntroductionE merging economies have received growing attention in the international business literature due to the opportunities they offer in the areas of trade, technology transfer, and investment. Relatively less has been written on the risks associated with investment in emerging economies despite the acknowledgment that traditional risks such as labor strife re-main challenges for international business (McTernan, 2005;Moran, 1998;Poole-Robb & Bailey, 2002;Wells, 1998). As production continues to internationalize and manufacturing businesses move labor-intensive production to emerging economies (Athukorala, 2007), it behooves international managers to understand the economic, social, and political factors that shape the industrial relations climate in which management and labor interact. 125As manufacturing businesses increasingly move labor-intensive production to emerging economies, it is important for international managers to understand the sociopolitical factors that shape the climate in which management and labor interact. We present a conceptual "weather map" of industrial relations climates and use indices to plot the climates of 33 emerging, 11 transition, and 21 developed economies. As hypothesized, emerging economies, compared with transition and developed economies, are characterized by a relatively adversarial industrial relations climate and a high incidence of industrial action. Implications for international managers and future research directions are discussed.

Kraft Foods' 2009 Conflict in Argentina: Turning‐Point Analysis of a Labor–Management Negotiation

“…In that same sample, another labor‐related factor was measured: Argentina's performance in labor dispute intensity —measured in number of Days Not Worked per 1,000 (workers)—over a 9‐year period (1996–2004) proved the worst, as it boasted the highest score, 797.10. To calculate an individual country's score, the total annual number of days not worked is divided by the working population and multiplied by 1,000 (Reade & Reade McKenna, ). In a nutshell, a rigid, overregulated labor market coupled with intraunion disputes and widespread poor labor–management relationships lead to abnormally high labor dispute intensity as compared to other countries (Mallea, ).…”

Geopolitics, Social Polarization, and the Bridging Role of Cosmopolitan Leaders

“…Another workplace manifestation of social polarization can be sabotage. While the phenomenon of industrial sabotage is well known in the context of labor-management relations (e.g., Reade & McKenna, 2009), sabotage in the workplace emanating from communal conflict can also occur. A study by Reade and McKenna (2007) highlighted a case where employees sabotaged the work of other employees who belonged to rival communal groups.…”