In South Africa, the elimination of 4partheid has given rise to a
rapidly growing labor movement. The African National Congress is pro-union, and local unions receive assistance from the AFL-CIO
branch in Johannesburg.
Although no clear direction is evident at this point, political changes, external competitive forces, increased open trade, and frequent moves of MNCs around the world are forces working toward convergence in labor system Convergence occurs as the migration of management and workplace practices around the world results in the reduction of workplace disparities from one country to another. This occurs primarily as MNCs seek consistency and coordination among their foreign subsidiaries, and as they act as catalysts for change by “exporting” new forms of work organization and industrial relations practices.TM It also occurs as harmonization is sought, such as for the EC countries, and as competitive pressures in free-trade zones, such as the NAFTA countries, eventually bring about demands for some equalization of benefits for workers.65 It would appear that economic globalization is leading to labor transnational's and will bring about changes in labor rights and democracy around the worldP6 In East European societies in transition to market economies, for example, newly structured industrial relations systems are being created. Trends in industrial relations, such as the flattening of organizations and decline in the role of trade unions are viewed by many as global developments pointing to convergence in labor systems .
Other pressures toward convergence of labor relations practices around the world come from the activities and monitoring of labor conditions worldwide by various organizations. One of these is the International Labor Organization (ILO) - comprising union, employer, and government representation - whose mission is to ensure that humane conditions of labor are maintained. Other associations of unions in different countries include various international trade secretariats representing workers in specific industries. These include the International Confederation of Free Trade Unions (ICFTU) and the World Confederation of Labor (WCL). The activities and communication channels of these associations 4- provide unions and firms with information about differences in labor conditions
around the world. One result of their efforts to provide awareness and changes in labor conditions was the pressure they brought to bear on MNCs operating in South Africa in the late 1980s. The result was the exodus of foreign companies and the eventual repeal of apartheid laws. Now there is a rapidly growing labor union movement there, thanks to the prounion African National Congress- In fact, the AFL-CIO opened an office in Johannesburg and assists the South African unions.
Political and cultural shifts are also behind the new labor law in South Korea, as the country moves from a system founded on paternalism and authoritarianism to one based on more liberal values.
Although there are forces for convergence in labor relations systems around the world, as discussed above, for the most part, lvJNCs still adapt their practices to a great extent to the traditions of national industrial relations systems, and there is considerable pressure to do so. Those companies, in fact, act more like local employers, subject to local and country regulations and practices. While the reasons for continued divergence in systems seem fewer, they are very strong; not the least of these are political ideology and the overall social structure and history of industrial practices. It is highly unlikely that China, for example, would accept Western practices which threaten their political ideology. And in the EU, where states are required to maintain parity in wage rates and benefits under the Social Charter of the Maastricht Treaty, there is still a powerful defense of cultural identity and social systems and considerable resistance by unions to comply with those requirements. Managers in those MNCs also recognize that a considerable gap often exists between the labor laws and the enforcement of those laws - in particular in less developed- countries. Exhibit 8-13 shows the major forces for and against convergence in labor relations systems.
Convergence Versus Divergence in Labor Systems : Organizing Structure article from Formulating Implement Catagory Convergence Versus Divergence in Labor Systems
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