(Week 5) International Labour Standards and Employment Relations

International labour relations examine how institutional stakeholders (international organisations, supranational bodies, trade unions, the state, society and industry) shape the conditions, standards and relations of labour.

The emergence of global firms as dominant stakeholders may have the effect of lowering international standards of labour. As a result trade unions have been formed to counterbalance this change. Collaboration between trade unions can often be complex due to differences in structure, function and substance in worker collectives across countries. Nation states have formed alliances with similar nations that share common values to influence ILR.

The advantages of having ILS are: Recognition that labour is not a commodity and aims to improves the lives of human beings Higher wage and working time standards and respect for equality can translate into better and more satisfied workers and lower turnover of staff A strategy for reducing poverty

The disadvantages of having ILS are: Undermines international competitiveness: Countries to specialize in those activities in which they have acomparative advantageand to reap mutual gains through exchange Erodes domestic policy: Any attempt to harmonise set benchmarks for acceptable working conditions disregards the current state of an individual countrys unique economic and social climatesHR managers in MNCs need to recognise international regulation, national discussions and local practices in terms of labour relations. Differences in economic, political and legal systems across countries require local interpretation and implementation of international labour standards MNCs cannot offer a single, unified strategy in this area, nor can they delegate these matters to national branches, as localised labour standards may generate negative stakeholder reactions when they jar with international standards.