influence of labour unions on TNCs

Cards (3)

  • NEGOTIATIONS WITH TNCs 
    • Labour unions can negotiate with TNCs on better wages, benefits and job security through collective bargaining agreements 
    • Unions are more powerful in certain industries such as manufacturing and construction 
    • TNCs can either be forced to comply to the demands or be turned away
    • Eg. in the US, educators, public service and steel workers are highly unionised and are represented by influential unions with strong bargaining power
  • CAMPAIGNS BY LABOUR UNIONS
    • Labour unions often engage in campaigns to promote corporate social responsibility (CSR) and ethical business practices 
    • TNCs may face pressure from unions or other stakeholders to address issues such as safe working conditions or environmental sustainability 
    • Hence, TNCs may be influenced to adopt these standards to maintain a positive public image, comply with regulations and mitigate risks associated with labour disputes or negative publicity
  • IMPROVE INTERESTS AND RESOLVE DISPUTES
    • Union and TNCs work together to improve interests and resolve labour disputes 
    • Unions can also indirectly impact TNCs by influencing states to enact stronger policies and laws to improve worker’s rights, such as settling minimum wage laws and workplace health and safety regulations
    • Eg. the United Auto Workers (UAW) union in the US has collaborated with major automobile manufacturers such as General Motors and Ford to negotiate collective bargaining agreements and resolve labour disputes