International Framework Agreements and Industrial Relations Governance - Literature review Example

Labor standards basically concerns labor force in diverse economic activities. The discussion of labor in association with MNC is analysed often as if the concerned working people are MNCs employees. Examples of multinational companies would be such as coca cola, Vodacom and Foxconn. Foxconn is a company mainly dealing with electronics. It is a multinational in contracting in Taiwan. It is the largest electronic manufacturer in the world and has it headquarters in Tucheng and also third by revenue among other companies in information technology. Using it as an example it aid in analyzing and understanding the difficulties faced by employees and how they can be curbed or improved. For example in the year 2012 around 150 employees wanted to commit suicide due to working conditions. . (Chan, 2013, p. 94) As a result, it is imperative for Foxconn and other companies, to do some review concerning the working conditions and overall labor standards in order to ensure the employees are comfortable with the firm. In this regard, transnational corporations have made numerous efforts in regulating human rights impacts by many corporations since they have been disregarded even by Foxconn despite its large revenue generation. The great global evolution in social expectations where various companies should show the reference to standards of human rights internationally in combination with states occasional foray adopt a wider approach for human rights protection. Ways in Which the Labour Standards are regulated in MNC Introduction With the increased globalization across the world, regulation of labor standards has faced numerous challenges. Nevertheless globalization has not outdated regulations since there are various approaches that impacted in this. (Martinez Lucio, 2012, p. 123) Regulation of labor standards is a method in which the work force in a firm is managed, controlled and either maximized or minimized. In a long-term base, it is quite inclusive and strong foundations ought to be laid. Taking Foxconn as an example of a multinational company, the paper analyses various approaches in regulating labor standards on a long-term basis. Also how effective the approaches are and how sustainable they are in a long-term period of five years is discussed. The paper also continues to explore and link other foundations, examples and theories such as Dunlop in his system theory; where processes, inputs, and outputs are discussed. In continuation, there is discussion of economically weak regulations, the traditional system as well as an international economy where in the latter the UK context is compared to the Chinese context. When analysing various approaches, social justice is particularly focused at. Foxconn becomes the best example when discussing the regulation of labor standards since it is one of the firms though with large market has had numerous protests. (Chan, et al., 2013, p. 105)Regulation of labor standards in Foxconn, a multinational company, can be analyzed by detecting approaches that raise average laborers productivity which in the long-run form the basis for bargaining power. The following approaches would bring out a positive index. Social responsibility is also an important approach. Multinational companies should not only aim at making profits and enlarging but also but also take part in social responsibilities. Milton Friedmans statement, that is quoted often, argues that this is a rarely found thing in most companies as they aim at maximizing profits. Responsibility for advancing respect and protection of human rights over the long period of time has been taken as state duty while the laws originates from world-wide treaties and are transformed to national laws. They include anti-discrimination laws and labor. Recently the responsibilities of human rights have been shifted from states to corporations points and standards that should be met being set and formulated. Majorly social responsibility calls for the company to take part in other affairs in the society that don not directly benefit the company. This will enhance labor regulation due to the good regards that the company obtains from the surrounding environment. Taking part in projects such cleanliness and other communal projects boosts the companys status. (Martinez Lucio, 2012, p. 123) Social responsibility is a detailed word that incorporates also the respect of human rights in the firm. United Nations took part in this and set the difference between the business and state roles in regard to human rights respect. Concerning the corporations, it is their duty to uphold, respect and avoid interference of human rights set by the state. It lays foundation for support from even external factors thus making it so effective as well as sustainable in the long run; this approach is also an important factor that enhance social justice thus bringing equilibrium between the labor force and the employer Education system improvement approach; the labor force adopted in every country and china as a country of reference, is based on the educational grounds in that a particular time. In recent past education, systems have failed to match the labor requirements. Employees may fail to deliver in particular fields that they have been taken to, and the route course is mainly in knowledge impacted to them. (Thomas, 2013, p. 270) The review and improvements of education systems, call for proper application in class work of what the students are expected to do in the job market. The learning done ought to be relevant to that particular specialization. The learning should also open and sharpen ones critical thinking when faced in a certain situation as well as bring a sense of innovation and creativity in a firm. With this particular approach, multinational companies be able to regulate the labor standards since it will be optimistic of the team it has and will promptly reward them well. Also, this becomes a target for the firm to give the employees the best so as to retain them as well as boost their image in the market. The other reaffirmation is that when employees know that they are competent enough and have the prerequisite to delivering will, not allow the disregard of their standards. It will be a base for their bargaining power. The approach is effective on a long-term period as well as sustainable since it forms a good ground for performance efficiency as well as productivity (Thomas, 2013, p. 270) Another important approach is the work shift. Some employees would desire to work in various shifts such morning, afternoon or even night shifts. This is a key factor in regulating labor standards since it is convenient for both the firm and employee since the organization remain running through out and also the employees are strictly aware of their schedules. (Thomas, 2013, p. 270) In the end, the approach is very vital fir it makes proper allowance for employees to have adequate time to rest which in the real sense rejuvenates their energy. Also it is an important motivation to the employee body as they attend their duties when the time is convenient for them. If there is an emergency that would demand their absence they may always make up for it in a different shift altogether. With the work shift approach, it also allows for overtime program with an extra allowance that acts as an encouragement for employees not to leave their duties hanging which ends up boosting the overall productivity of the organization. (collins, 2005, p. 198) It also improves the employees appetite for their job and also optimism for them since they feel their desires are given primary support. In the latter, this approach helps the human resource to run for several years. Accommodation approach is an important key factor. It acts like a big encouragement to the labor force in that they consider being a priority to the company. Foxconn Company being an electronic company should see this as an important approach since their dealings require people around. Provision of accommodation has several benefits both to the employees and organization at large. It also ensures that employees do not face travelling challenges such as mechanical breakdown of vehicles when commuting to work destinations as well as delays that would result to millions of losses. (C & Kelly, 2013, p. 154). Further, it ensures employees do not make long distance travelling that would bring them fatigue thus lowering their efficiency. Benefits that this approach accord the organizations include the fact that in case of an emergent requirement employees are not far from the working area hence can easily are called to offer assistance. Also, it reduces the chances of poaching especially if the employees are comfortable with the accommodation thus they would not desire to move. Also, when employees are not far from the job premises can easily be called for overtime performance. It is also evident that this approach provides a strong watch and a security since the organization is surrounded by a great crowd. Trade unions, work unions as well as work organizations, is an important approach to regulating labor standards as they keep the organizations on toes. (Rees & Edwards, 2010, p. 77). They advocate proper wages and remuneration services and good working conditions for the employees on their behalf. Though many private organizations do not allow their employees to be part of these unions, it very vital key to regulating labor standards. They ensure that the firm act in accordance with the national laws as well as preventing violation of workers rights by the firm. They act as advocates for employees and prevent employment of children in the firms to do manual work as it is the case with most developing countries. Employees understanding that they have a bargainer for their rights, they normally develop an active confidence in their job and work with vigor and a lot of enthusiasms. Also, when a firm acknowledges the presence of trade unions they tend to value employees more and give them their required treatment. (Niforou,2012, p.364). More so everything is done in the correct standards and proper measures. All these doings in the long-run are to the benefit of the organization and in fact are a long-term approach as the trends remains for a long period and is basically very effective. The trade unions have at a great extent contributed to an employee wellness. Talent segmentation approach; Segmentation of talents is mainly pooling together of different skills and abilities to form the basis of employee development. It majors in specialization and division of labor. . (G, 2011, p. 404) In the real world when one specializes in a certain area he or she will do the best in that are therefore talent segmentations narrow down the larger group to a narrower ones of small teams with similar skills so as they can do the best in their given areas. Therefore, the employees do what they are best in thus giving the best results. The approach is important and a great motivation to employees, since they are doing what they are talented in, making it a factor that regulates labor standards since employees major in a particular area and therefore they require minimum supervision which would otherwise cause the pressure. Also, it is very possible for it to be implemented without any difficult as both sides have benefits. Foxconn can adopt this approach as a long-term base since it is of great profit to the organization entirely since the output is more maximized than before. It is also saving the time consumed in movements of employees from one area to another and to different job description is saved and maximized (Riisgaard, 2005, p. 710). Dunlop system theory Dunlop developed system approach where he stipulated that the behavior, role and action of individuals in particular setup depend on the cultures their societies. A system approach has three elements which include the inputs and processes they undergo to become the output. The society outlines the signals on how individuals are supposed to act when in a particular situation. The institutions, other characteristics, as well as value system in a society, play a great impact on the process as well as determining the response or outcome of the individuals. The theory is on the basis of the mere fact that cohesiveness of the group is delivered by the commonality in ideology together with societal factors According to him, there are certain actors, an ideology, and certain contexts that comprised system of industrial relations which puts them together and forms rules that governs both the work community and the actors in the place of work. The actors comprise of workers as well as their representatives, managers, and government agencies. The rule (outputs) has two major categories which are procedural rules and substantive rules. (C & Kelly, 2013, p. 154). The substantive ones usually tell the under what conditions people got their employment and these rules are derived from employment conditions, legislations, practices, agreements and also managerial directives and policies. On the other hand, procedural rules regulate the making and understanding of substantive rules. In the final course, new regulations and rules are introduced, existing rules revised to enhance industrial relations forms the major output (Rees & Edwards, 2010, p. 77). Dunlop developed various industrial relations approaches; such as psychological, socio-economic, and political. In psychological approach, he outlines that IR originates from how unions, management, and workers are perceived. A conflict that occurs between management and labor is attributable to the negative perception of others by each individual group in that even any honest intention is given a lot of suspicions. Further, the problem is enhanced by factors such as communication, education level beliefs, values, customs, income, personal goals status, prestige, security and recognition which majorly influence perception. Proper perception and attitudes result to industrial peace. In sociological approach, industry is seen as a social world. The workers, management of goals, perceptions and attitudes are determined by wider factors such as the structural changes, customs, status-symbols, institutional culture, rationality, tolerance, change resistance or acceptance (R Lucas, 2007, p. 123). Therefore the industry cannot be separated from the society where it is located. In human relation, human beings make up the human resource. They advocate freedom of expression, speech and also movement. In case the employers give them an inanimate treatment, throat-cuts them or despise their expectations then there would be a lot of tensions and conflicts. The major problems in regard to industrial relations can be traced back workers reactions and employers pressure, resistance and protests towards the pressures by use of protective mechanisms such as trade unions (Almond & Ferner, 2006, p. 65) World Bank and IMF have programs that focus on structural adjustment which have continuously led to standards of living reduction, labor being a good example has been going low daily ending up benefiting multinational companies whereas workers do not benefit. As some industries and corporations become globalized most people become affected, for example in Massachusetts they tried to enforce that would prevent corporations from using regimes that were against human rights, when doing their business. (G, 2011, p. 404). Brands such as Nike, which is a coca cola company and many more do this. While USA applies tighter regulations and enforcement, south East Asia tries to avoid these regulations. They go to an extent being victims of child labor while coca cola intimidates its workers. McLibel was against McDonalds due to its abuses of power and the step to take a legal action. Various individuals try to bring into light aspects on how McDonalds conducted business but this could not go through due to media as they also avoided publishing that would cause legal actions as truly these corporations abused its powers especially on human rights particularly on employees. This abuse by Nike and McDonalds can easily be eliminated and are not difficult to be curbed (Niforou, 2012, p. 354) There is a long history behind the globalization of the economy. Globalization began from the traditional system where things were done in the context of culture occurrences. During the traditional system the religions were upheld and there was no direct military and political control as culture was the class that ruled. Lucas, 2007, p. 123). Cultures that ruled passed through particularises, fragmented mosaic, and local cultures as there was little to be seen between the village and the court. With the emergent of national cultures and nation-states that cultural identity form coalesced in the middle of the two extremes. The weak regulation was then birthed after the traditional system where the military and culture fought to have a control. The nation-states started controlling linguistic policies, educational practices telephone and also postal services (C & Kelly, 2013, p. 154). In the 18th century, European empires began to get involved which brought technological innovations and there was an emergent of new cultural forms thus doing away with the traditional system and weak system. Since then globalization has been in the process which has brought forth the international economy which is symbolized by many international private institutions such as new agencies and publishing houses. Expansion of science, socialism and liberalism; have had a great impact on the international economy. Various thoughts in these aspects transformed the mindsets of every community (Dibben, 2011, p. 123). The United Kingdom would transfer and replicate the human resource management to China. International economy began from UK and spread to china where it was received with a lot of appreciation and led the mass technological and diverse development that in return outdated the former. Conclusion In summary the approaches discussed are very important in managing and regulations of labor standards. Labor standards are mainly emphasized in order to improve treatment of workers status by improving the working conditions and their remuneration services which significantly gives employees contentment at the place of work. Foxconn being a company of reference in this case is a high-income earning organization and word biggest nevertheless there numerous complaints from its employees. Therefore is an out light fact that companies fail to give employees their worth even after the employees have maximize and achieved the goals of the firm, thus calling for intervention from external factors such as United Nations and other standards for labor programs. The approaches discussed above will even boost the companys status if they are put in practice. It would at a great extent reduce the numerous protests by the employees that would also boost the overall performance. Firms fail to adopt labor regulation in fear of incurring costs without their knowledge that unsatisfied employees do not perform to their level best whereas satisfaction bring the maximum productivity. Therefore issues that the discussed approaches aims at discussing are basically the working conditions and also motivation towards the employees which involve the reward systems, working hours, performance appraisals and fair remuneration which all aim at making employees comfortable and productive. 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